## ANNUAL REPORT AND ACCOUNTS
YEAR ENDED 31 DECEMBER 2022
Charity Number 1188764 (England and Wales), SC050060 (Scotland)
CHARTERED INSTITUTE OF FUNDRAISING
## CONTENTS
|Trustees’ report|1|
|---|---|
|Independent auditor’s report|11|
|Statement of financial activities|14|
|Balance sheet|15|
|Statement of cash flows|16|
|Notes to the financial statements|17|
|Reference and administrative details|29|
**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
## **VISION**
Excellent fundraising for a better world.
## **PURPOSE**
To support and champion professional fundraising so our members flourish.
## **CHARITABLE OBJECTS**
The objects for which the Chartered Institute is established are:
- to advance or promote the efficiency of organisations established for charitable purposes throughout the United Kingdom;
- to promote higher standards of administration and fundraising for charitable purposes throughout the United Kingdom; and
- to educate the public in relation to the matters referred to above throughout the United Kingdom.
## **HIGHLIGHTS OF 2022**
Over the year, we were proud to serve the fundraising community and develop our support for members across the UK. Our highlights of the year include:
- Representing a 5,000-strong professional fundraising community by championing them and their work within the charity sector and to external organisations and sectors including regulators and governments, and through press and media work.
- Taking on responsibility for leading the Giving Tuesday campaign in the UK, which raised over £20m for good causes and trended No.1 on Twitter.
- Hosting the first post-pandemic in-person Fundraising Convention by welcoming over 1,600 delegates from across the UK and overseas to the Barbican for three days of learning, development, inspiration and support.
- Seeing Remember A Charity continue to grow legacy income through tangible increases in awareness and behaviour change from the public and another successful Remember A Charity week.
- Continuing to develop fundraising skills and knowledge through high quality learning and qualifications.
- • Introducing a new anonymous reporting system called “Spot” to support whistleblowing, safeguarding and complaints being raised to a central location and managed by the Head of Professional Conduct.
## **ACROSS OUR ORGANISATION**
## **Membership**
2022 was a challenging 12 months for the fundraising community. Charities faced the two-fold challenge of coming out of the pandemic, combined with a cost-of-living crisis that put greater pressure on both services and donors. During such a challenging environment, it was even more critical that we supported our membership community to come together and support each other.
We continued to represent an engaged and supportive professional fundraising community, comprised of individual fundraisers, organisational charity members and corporate partners. We had 4,970 members at the end of the 2022 (2021 – 5,092), despite the cost of living crisis putting pressure on our members finances. Our members remained at the heart of our work and fundamental to our collective success.
Our new series of networking forums for organisational members across all sizes of charity helped to bring charities together, share best practice and help raise more money for good causes. Our new exclusive member webinars, podcast series and partner forums also helped to share best practice and champion our members' views and values to government, media, regulators, and other external audiences.
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**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Policy and public affairs**
Throughout 2022 our work in policy and public affairs was centred on representing and guiding our members through a continuing time of change and challenge. With the end of social distancing, fundraising was able to return in theory to previous ways of working, but the reality of the situation was very different with charities contending with significant changes across society impacting a ‘return to normal’ in fundraising.
During 2022 we became ever more mindful of the impact of the cost of living on fundraising and giving, and curated a ‘Cost of Living Hub’ on our website to help our members access the research, trends, and case studies which helped to inform their strategies and activity. This was supported with a range of accessible online webinars, done in partnership with a range of organisations, to share insight and hear from experts across the sector. With our ‘Yearbook’ collection of expert articles and resources we provided members with a range of insight and thought-leadership to help them plan future strategies.
We also continued to represent our members’ priorities and views through engagement on and responses to legal, regulatory, and sector policy consultations including a Call for Evidence on the Fundraising Regulator’s Code of Fundraising Practice.
A core part of our policy work is the production of best practice guidance to support fundraisers and charities across the UK. This year we updated and refreshed our guidance on Trustees & Fundraising, as well as producing a brand new version for Trustees & Fundraising in Scotland. We also published new spotlight pieces focusing on involving children in fundraising, truth & accuracy, and sharing stories.
2022 saw us take on responsibility in the UK for the global giving campaign, Giving Tuesday. Following a smooth transition of the campaign into the Chartered Institute, we were delighted to run Giving Tuesday in November 2022 and see the day trending #1 on Twitter and that more than £20m was raised. Our Giving Tuesday campaign was also complemented with a range of learning and development resources for charities on digital fundraising skills.
## **Events**
Following stakeholder engagement and successful trials during 2021, measures were taken to further enhance the safety and inclusiveness of Chartered Institute events. This included the roll out of safeguarding training for staff and volunteers and a comprehensive review and refresh of our people policies and guidance.
We were delighted to curate and host the first post-pandemic Fundraising Convention in-person in the year, supported by our volunteer Convention Board. Over 1,600 delegates from across the UK and overseas attended the Barbican Centre for a three-day programme of learning, inspiration and networking.
A range of one-day conferences were hosted in London and Birmingham covering diverse specialisms including Legacy and In-Memory giving, Trusts fundraising, and the Future of Fundraising. These were complemented by our Supporter Experience and Fundraising Festival online events to make relevant content more accessible.
In addition, support was provided for volunteer-led in-person conferences in the Midlands and Scotland alongside a suite of regular UK-wide networking meetings.
## **Remember A Charity**
In 2022, legacies proved once more to be a vital component in driving longer-term income, giving the sector much-needed resilience. Remember A Charity played a key role not only in championing the legacy message to the giving public, government and partners, but in supporting our members with their legacy fundraising. We increased our offering of peer-to-peer learning opportunities in the year, launching a monthly webinar programme, Legacy Bulletin and developing our customisable promotional legacy assets, enabling each member to create their own tailored legacy materials and messaging.
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**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
As we work towards our goal of growing the legacy market – a mission that no single charity can achieve alone - our 2022 consumer benchmarking survey charts the long-term rise in legacy giving behaviour, with 20% of charity supporters aged 40+ saying they have left a gift in their Will, up from 14% ten years earlier. Those who are aware of Remember A Charity are almost twice as likely to have left a gift in their Will (32%) than those who aren’t (17%).
Over the years, Remember A Charity Week has become a pivotal moment in the calendar, unifying the sector and our partners around the legacy message. This year, celebrities Jennie Bond, Janet Ellis and Len Goodman all served as legacy advocates on broadcast radio and TV and – in the case of Janet – also fronting a series of 1- minute ‘How To’ videos with her distinctive warmth and engaging style. These videos accrued more than 200,000 views on YouTube alone and, together with our nostalgic Tomorrow’s Science Today campaign and members’ WILL YOU assets, helped attract 113,000 new visitors to the website. While the sad news of the Queen’s death broke during Remember A Charity Week, curtailing some promotional activity, we relaunched our PR and consumer digital campaign later in the month. Our social media advertising continued through to December and reaching 1.8 million people in our target age group (50+).
## **Professional development**
Providing high quality training, learning, and qualifications to fundraisers so they can make the biggest difference for their causes is integral to our role as a Chartered membership organisation. Over 2022, we:
- Provided training for 1,419 fundraisers through 115 Short Courses that were delivered virtually.
- Commenced qualification courses for 11 cohorts of students at different levels: 5 Certificates (Level 4), 5 Diplomas (Level 5) and 1 International Advanced Diploma (Level 7).
- Saw an excellent retention rate at 85% from 2022 Exam Board data.
- Were delighted to celebrate 157 graduates at the virtual graduation in December.
- Delivered the Introduction to Fundraising Online course to 193 individuals.
- Welcomed 33 participants to our Women in Leadership programmes; and 28 fundraisers joined our Future Leaders Programmes.
Apprenticeship End Point Assessment activities were concluded as planned in April following a strategic review. However, our supporting offer to training providers delivering the Level 3 Fundraiser apprenticeship continues. The Chartered Institute provides an opportunity for learners that have passed their course to APELA against the CIOF Level 3 Foundation Certificate. Following piloting this opportunity for over 12 months feedback is positive; the fee is c.£110 per learner and includes 12 months of CIOF Individual Membership and administration of the APELA process. Via this new route 66 Foundation Certificate in Fundraising graduates celebrated success in 2022.
## **RAISE Programme**
We continue to deliver RAISE activities, a programme funded by Arts Council England to promote private investment and philanthropy, to support and develop fundraisers working in arts and culture. A bid to extend delivery of the programme by 6 months was approved and the programme is now due to end in September 2023. The Cultural Sector Network volunteer group is actively supporting delivery activities in partnership with another non-Chartered Institute volunteer-led group Young Arts Fundraisers.
## **Rebuilding Heritage**
Rebuilding Heritage activities continued through 2022, funded by the National Lottery Heritage Fund. 25 organisations had 1-2-1 consultancy sessions involving over 40 staff and trustees and over 120 individuals attended a fundraising focussed webinar. We also delivered 4 fundraising articles to be published as part of the programme and 5 people from 10 organisations participated in a 6-week programme of Action Learning Sets to solve issues around fundraising.
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**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Public Fundraising Services**
In 2022 we restarted the Private Site Mystery Shopping Programme following the pandemic. By the end of the year, we were attempting 100 Private Site Mystery Shops across standard regular giving and lottery to provide members a value for money service and provide external reassurance in the continued high standards of public fundraising.
In addition to continuing to manage the various site management systems to ensure good relationships with councils and local areas that supports a continued sustainable basis for public fundraising we also started a levy review which in ongoing and a benchmarking exercise which we are preparing to release to members in 2023.
## **Equity, Diversity and Inclusion**
Equity, Diversity and Inclusion (EDI) remained a priority for the Chartered Institute and our members throughout 2022. We integrated EDI into the strategic planning for the organisation recognising our role in leading on this agenda as an employer, membership organisation and across the profession in order to support the need for fundraising to be safe, more diverse and bring greater creativity and breadth to both the Chartered Institute and the wider fundraising industry.
We have committed to work with our members to champion, challenge, and improve EDI across the fundraising community and lead sector-wide initiatives which improves the culture of fundraising and promotes fundraising as a career.
Through our newsletters and member forums we continued to promote our recruitment guides, advocating inclusive ways to recruit fundraisers. We also revised our own recruitment practices, targeting our advertising to reach wider and more diverse audiences, offering opportunities to apply by video instead of just one traditional application route and providing candidates with interview questions in advance so that they are able to perform their best at interview.
## **Volunteers**
As a volunteer-involving organisation we partnered with over 500 volunteers in a mix of governance, advisory and community-engagement roles in 2022. We continue to engage them in the design and delivery of our strategy, and through shaping opportunities which support and equip a diverse fundraising population.
During 2022 many volunteer Groups arranged in-person and regular online events, always seeking to champion equity, diversity and inclusion.
We are grateful for the skill, experience and commitment of all of our volunteers which allows us to extend our reach and in turn, enables them to develop as leaders and influencers within the sector.
## **Independent Review**
In early 2022 we commissioned an Independent Review into the organisational response to historic concerns and complaints of sexual harassment. The reviewers started their work in April 2022 and have provided us with regular updates on progress. Following initial interviews and assessment of all the available evidence, the independent reviewers decided that for the review to be robust and make sure everyone could take part, a wider request for participation was made in the autumn of 2022. As a result, the independent reviewers needed more time to consider additionally gained insight which will ensure a thorough investigation and comprehensive conclusion and recommendations is presented to the Independent Working Group and the Board. We are planning to publish the findings in 2023.
As part of our commitment to being a safe and inclusive organisation where the safety and experience of our members is paramount, we continued to focus on ensuring that our events, both online and in-person, were inclusive, from the way we curated our content to ensuring all speakers, sponsors and delegates committed to
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**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
our Code of Behaviour at Events. To further support our staff and volunteers we also developed and delivered specific online and offline training focusing specifically on safeguarding and EDI.
In June 2022 we introduced a new anonymous reporting system called Spot. This system allows us to provide access to an anonymous platform that supports whistleblowing, safeguarding and complaints being raised to a central location and managed by the Head of Professional Conduct. The system also supports case management, antiharassment and bystander training.
## **People and culture**
The Board formally delegates day-to-day management to the Chief Executive. The Chief Executive leads an Executive Leadership Team made up of an Executive Director Finance & Resources, Executive Director People & Engagement , Executive Director Membership & Charitable Giving.
We would like to thank all the staff who worked with us over the last year for their hard work and commitment.
## **FUTURE PLANS**
In 2022 the Chartered Institute launched its new three-year strategy for 2023-25.
The passion and commitment of our members to learn, share, and deliver for their causes raises billions of pounds a year through skilled and ethical fundraising. Our ambition is to ensure that our members can navigate the challenges and opportunities that lie ahead with success. We know that when fundraisers achieve, everyone benefits from the supporter who is inspired and fulfilled through the act of giving a donation, through to the person who is able to access the support a charity can offer because of the income a fundraiser has brought in.
The priorities are:
- Champion the fundraising profession – representing the values of our members, amplifying their voices, and highlighting the value of professional fundraising.
- Support fundraisers – with the tools, learning, networking, and events they want so they can improve, achieve and thrive.
- Advocate for and advance Equity, Diversity and Inclusion – across the sector, as a membership organisation and as an employer.
Looking at our plans for 2023:
- Our members are at the heart of our organisation and fundamental to our collective success. We will begin to review and enhance our member proposition – ensuring that we are accessible and inclusive to all fundraisers across the UK – and that our membership proposition and services deliver value for money.
- In addition to our membership, we will also review our other activities, to ensure they meet the needs of our members and the wider fundraising profession post-pandemic. This will include our events, qualifications, and training courses to ensure these activities are fit for the future.
- In July, we will run our flagship annual Fundraising Convention, with delegates having the choice, for the first time, of attending in person or virtually.
- We will continue to facilitate and support our UK-wide network of volunteers that provides support and makes connections with fundraisers in whatever role or sector they are in. We will support our volunteer groups as they return to face-to-face activities after the pandemic.
- Equity, Diversity and Inclusion will be central to all aspects of our work, supporting the fundraising profession in this important area. In particular, we have committed, as part of the sector Civil Society Group, to the dismantling racism project, which is being developed in 2023.
- We will be well run with a sound business plan and good governance that focuses on delivering against audience needs. As part of this we will continue to measure ourselves against the Charity Governance Code.
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**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
## **FINANCIAL REVIEW**
The financial results of the charity’s activities for the year to 31 December 2022 are set out in the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and supporting notes. The income was £4,228k (2021: £3,868k), an increase of £360k. The total expenditure was £4,471k (2021: £4,132k), an increase of £340k. We ended the year with a deficit of £243k compared with a deficit of £264k (as restated) in 2021. A surplus had been budgeted in the year and although there was increased spend due to additional activity, staff costs were tightly controlled in 2022 and marginally lower than in 2021. However, income came in lower than budgeted, with growth post-pandemic not coming through as expected, leading to the deficit.
The charity’s unrestricted free reserves were a deficit of £154k as at 31 December 2022 (2021: deficit of £50k as restated). It should be noted that the cash balance was £1.25m. The reason for reserves being considerably lower than cash is a policy of deferring income. In 2022, £892k income already received was treated as deferred income (2021: £810k) – see note 12. 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 Chartered Institute’s funds is contained in note 14 to the accounts.
## **Going Concern**
The Trustees have assessed the charity’s financial position, its plans for the foreseeable future, the risks to which is it exposed and the future cashflow projections and budgets. Building on the new strategy and taking note of the external environment in which we work, the Trustees are satisfied that it remains appropriate to prepare the financial statements on a going concern basis.
At 31 December 2022, the balance sheet shows a cash balance of £1.25m (2021: £815k). Cash flow forecasts have been prepared which show that this cash balance is sufficient to meet the ongoing requirements of the CIOF including the loan capital repayments, with budgets showing a similar level of cash at the end of 2023. The implementation of the new strategy is expected to strengthen our financial position in the longer term.
## **Reserves Policy**
The nature of the Chartered Institute’s activities means that the majority of income is received in advance, notably from membership, training 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 2022, income received in advance (reported in the creditor balance) totalled £892k (2021: £810k).
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 charity may be exposed to in its plans, the Board of Trustees considered that the Chartered Institute should hold minimum free reserves of £300k. This would allow the Chartered Institute to operate as effectively as possible and to implement its new strategy commencing in 2023. After excluding restricted and designated funds, the free reserves of the charity amounted to a deficit of £154k at the end of December 2022 (2021: a deficit of £50k as restated) which is below the desired minimum level of reserves. This reflects the significant reduction in income in 2020 and 2021 due to COVID-19, the investment in a new CRM system and a new website and the challenging economic environment in 2022 as the world returned to the “new normal”. The Trustees plan to rebuild the free reserves to the required level over the next three years through setting a strategy for income generation and careful monitoring of expenditure.
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**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Investment Powers and Policy**
Under the Royal Charter and Byelaws, 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 short- term 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 Chartered 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 2023:
- The ongoing risk to the fundraising profession of a major scandal or an externally driven campaign, which
- could result in major financial and delivery challenges for the fundraising community, the Chartered Institute’s members, and the Chartered Institute. The Chartered Institute will continue to invest in our compliance, guidance and training services to support members to meet their obligation to adhere to the Code of Fundraising Practice. The Chartered Institute will continue to focus on promoting excellent and innovative fundraising and continue to invest staff time and resources to manage media and external relationships.
- The potential for changes to laws and regulation and a political environment and policy context
- unsympathetic to fundraising could have a significant impact on services provided by charities and the Chartered Institute. The Chartered Institute will continue to support fundraisers to deliver excellent fundraising, and represent the fundraising community to the government, the regulators and the media.
- The uncertainty around the external economic environment means unforeseen circumstances could
- arise which put pressure on our budgets and finances. This in turn could impact membership, sponsorship and other sources of income. The Chartered Institute carries out scenario planning, horizon scanning and ongoing cash flow monitoring to mitigate the impact of this risk.
## **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. 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 coopted Trustees shall retire after one year, unless reappointed. Each co-opted 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.
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**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Trustee induction and training**
All new Trustees are issued with a full set of documents covering governance, the committee and decisionmaking 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 days focus on the strategic direction of the Chartered 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 has been taking action to address specific identified weaknesses where necessary.
The Board has 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, investments 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.
The Board has set up a series of advisory and functional committees to support the staff in the day-to-day running of the Chartered Institute. These are:
- Finance and Resources Committee
- Fundraising Convention Board
- Learning and Development Committee
- Nominations and Elections Committee
- Equity, Diversity and Inclusion Committee
The Board formally delegates day-to-day management to the Chief Executive, Katie Docherty. The Chief Executive leads a Executive Leadership Team which is made up of the Executive Director Finance & Resources, Executive Director People & Engagement , Executive Director Membership & Charitable Giving.
## **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.
## **Fundraising**
Whilst the Chartered Institute of Fundraising promotes best practice amongst fundraisers, it does not raise funds from the general public itself and as such is not required to be registered with the Fundraising Regulator. From time to time, we will apply for funding from grant-making bodies, trusts and foundations and we may use a professional fundraising agency to support our employees with this.
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**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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 Trustees ensure that its 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 non- members, whilst our policy and campaigning work also benefits those in the wider fundraising community. Chartered Institute of Fundraising membership is open to any organisation, 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 Chartered Institute provides a range of bursaries and scholarships to support access to our services.
All Trustees give their time voluntarily and receive no remuneration nor any other financial 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:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether the policies adopted are in accordance with the Charities Act 2011, and 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), subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the on-going concern basis, unless it is inappropriate to assume that
- the charity will continue in business.
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.
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**CHARTERED INSTITUTE OF FUNDRAISING ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Disclosure of information to auditor**
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that, so far as the Trustee is aware, there is no relevant audit information of which the Charity's auditor is unaware, and the Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the Charity's auditor is aware of that information.
Approved by the Board on 16[th] August 2023
Nadine Campbell, Chair
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**CHARTERED INSTITUTE OF FUNDRAISING INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE CHARTERED INSTITUTE OF FUNDRAISING**
## **Opinion**
We have audited the accounts of the Chartered Institute of Fundraising (the ‘charity’) for the year ended 31 December 2022, 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:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its income and
- expenditure for the year then ended.
- 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, the Charities and
- Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
## **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.
## **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.
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**CHARTERED INSTITUTE OF FUNDRAISING INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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:
- the information given in the trustees’ annual report is inconsistent in any material respect with the
- accounts; or
- sufficient and proper accounting records have not been kept; or
- the accounts are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the 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.
## **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:
- Discussions were held with management to determine whether there were any issues of irregularities,
- fraud or laws and regulation.
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; and
• we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011) and those that relate to data protection (General Data Protection Regulation).
12
**CHARTERED INSTITUTE OF FUNDRAISING INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
- regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships.
- tested journal entries to identify unusual transactions; and
- assessed whether judgements and assumptions made in determining the accounting estimates were
- indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- reading the minutes of meetings of those charged with governance; and
- enquiring of management as to actual and potential litigation and claims.
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: 1 September 2023
Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
13
## **CHARTERED INSTITUTE OF FUNDRAISING STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Notes**
**INCOME FROM:**
**Raising funds**
2
**Charitable activities**
3
- 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**
2
**Charitable activities**
4
-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 INCOME/(EXPENDITURE)**
**TRANSFERS BETWEEN FUNDS**
14
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS**
Total funds brought forward at 1st
January as previously disclosed
**Prior year restatement**
Total funds brought forward at 1st
January as restated
14, 15
**Prior year restatement**
**Total funds carried forward at 31st**
**December 2022**
14, 15|**Year to 31 December 2022**|_As restated_
_Year to 31 December 2021_|
|---|---|---|
||**Unrestricted**
**funds**
**Restricted**
**funds**
**Total funds**
**£**
**£**
**£**|_Unrestricted_
_funds_
_Restricted_
_funds_
_Total_
_funds_
_£_
_£_
_£_|
||147,237
-
147,237
1,062,806
911,111
1,973,917
489,373
22,640
512,013
1,411,301
183,386
1,594,687
51
-
51|_261,316_
_-_
_261,316_
_1,117,335_
_944,545_
_2,061,880_
_269,763_
_22,640_
_292,403_
_1,029,559_
_222,374_
_1,251,933_
_237 _
_-_
_237_|
||**3,110,768**
**1,117,137**
**4,227,905**|_2,678,210_
_1,189,559_
_3,867,769_|
||185,746
-
185,746
785,864
942,756
1,728,620
461,592
21,239
482,831
1,905,929
167,574
2,073,503|_186,625_
_-_
_186,625_
_886,720_
_919,202_
_1,805,922_
_311,159_
_23,227_
_334,386_
_1,585,850_
_218,949_
_1,804,799_|
||**3,339,131**
**1,131,569**
**4,470,700**|_2,970,354_
_1,161,378_
_4,131,732_|
||**(228,363)**
**(14,432)**
**(242,795)**|_(292,144)_
_28,181_
_(263,963)_|
||**-**
**-**
**-**|_(20,000)_
_20,000_
_-_|
||**(228,363)**
**(14,432)**
**(242,795)**
_589,882_
345,480
935,362
_(70,355)_
_-_
_(70,355)_|_(312,144)_
_48,181_
_(263,963)_
_831,671_
_297,299_
_1,128,970_|
||519,527
345,480
865,007|_831,671_
_297,299_
_1,128,970_
_(70,355)_
_-_
_(70,355)_|
||**291,164**
**331,048**
**622,212**|_519,527_
_345,480_
_865,007_|
The statement of financial activities includes all gains and losses recognised in the period.
14
## **CHARTERED INSTITUTE OF FUNDRAISING**
## **BALANCE SHEET AS AT 31 DECEMBER 2022**
|**Notes**
**Fixed assets**
Intangible fixed assets
9
Tangible fixed assets
10
**Current assets**
Debtors
11
Cash in bank and in hand
Creditors: amounts falling due
within one year
12
**Net current assets**
**Total assets less current**
**liabilities**
Creditors: amounts falling in
more than one year
13
**Total net assets**
**The funds of the charity**
Unrestricted funds
14
- General
- Designated
Total unrestricted funds
Restricted income funds
14
**Total charity funds**|
**31 December 2022**
**£**
**£**
290,853
17,717
308,570
519,072
1,254,573
1,773,645
(1,232,530)
**541,115**
**849,685**
(227,473)
**622,212**
(154,023)
445,187
291,164
331,048
**622,212**|
**31 December 2022**
**£**
**£**
290,853
17,717
308,570
519,072
1,254,573
1,773,645
(1,232,530)
**541,115**
**849,685**
(227,473)
**622,212**
(154,023)
445,187
291,164
331,048
**622,212**|As restated
31 December 2021
£
£
396,846
31,369
428,215
688,753
814,834
1,503,587
(1,066,795)
**436,792**
**865,007**
-
865,007
(50,386)
569,913
519,527
345,480
865,007|As restated
31 December 2021
£
£
396,846
31,369
428,215
688,753
814,834
1,503,587
(1,066,795)
**436,792**
**865,007**
-
865,007
(50,386)
569,913
519,527
345,480
865,007|
|---|---|---|---|---|
||519,072
1,254,573||688,753
814,834||
||1,773,645
(1,232,530)||1,503,587
(1,066,795)||
||(154,023)
445,187||(50,386)
569,913||
|||**849,685**||**865,007**|
|||(227,473)||
-|
|||**622,212**||865,007|
|||291,164
331,048||519,527
345,480|
||||||
|||**622,212**||865,007|
The financial statements were approved by the Trustees on 16[th] August 2023 and signed on their behalf by:
## **Nadine Campbell Chair**
**Rohan Hewavisenti Hon. Treasurer**
15
**CHARTERED INSTITUTE OF FUNDRAISING**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022**
||||As restated|
|---|---|---|---|
|||**2022**|2021|
||**Note**|
**£**|
£|
|**Cash flow from operating activities**||||
|Net cash used in operating activities|A|**182,188**|(101,976)|
|**Cash flows from investing activities**||||
|Investment Income||51||
|Purchase of fixed assets||-|(15,870)|
|**Net cash from investing activities**||**51**|(15,870)|
|**Cash flows from financing activities**||||
|Cash inflow from new borrowing||257,500|-|
|**Net cash from financing activities**||**257,500**|(15,870)|
|**Change in cash and cash equivalents in the year**||**439,739**|(117,846)|
|**Cash and cash equivalents brought forward**||814,834|932,680|
||B|||
|**Cash and cash equivalents carried forward**||**1,254,573**|814,834|
|**Notes to the cash flow statement for the year to 31**|**December 2022**|||
|**A. Reconciliation of net movements in funds to net cash flow from**||**operating activities**||
||||As restated|
|||**2022**|2021|
|||**£**|£|
|**Net expenditure for the reporting period (as per the statement**||||
|**of financial activities)**||(242,795)|(263,963)|
|**Adjustments for:**||||
|Depreciation and amortisation charge||119,645|126,132|
|Investment Income||(51)|-|
|(Increase)/decrease in debtors||169,681|66,176|
|Increase/(decrease) in creditors||135,708|(30,321)|
|**Net cash used in operating activities**||**182,188**|(101,976)|
|**B. Analysis of cash and cash equivalents**||||
|||**2022**|2021|
|||
**£**|
£|
|**Total cash and cash equivalents:**cash at bank and in hand||||
|||**1,254,573**|814,834|
16
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. Accounting policies**
## **a) Statutory information**
The Chartered Institute of Fundraising is incorporated by Royal Charter (RC000910) and is a charity registered in England and Wales (1188764) and Scotland (SC050060).
The registered office address is Canopi, 7-14 Great Dover Street, London, SE1 4YR.
## **b) Basis of preparation**
These accounts have been prepared for the year to 31 December 2022.
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) Public benefit entity**
The charity meets the definition of a public benefit entity under FRS 102.
## **d) Critical accounting estimates and areas of judgement**
Preparation of the accounts requires the trustees and management to make significant judgements and estimates.
The items in the accounts where these judgements and estimates have been made include:
- a. estimating the useful economic life of tangible and intangible fixed assets;
- b. provision of bad debt; and
- c. the allocation of support costs (as discussed below).
## **e) 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 12 months from the date of approval of these accounts.
## **f) 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.
17
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **g) Donated goods and services**
Donated goods and services are included at the value to the Chartered Institute i.e., the value the Chartered 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.
## **h) 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.
- **i) 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.
- **j) 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:
- a. Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose and their associated support cost.
- b. Expenditure on charitable activities includes the costs of delivering services, training, events and other educational activities undertaken to further the purposes of the charity and their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **k) 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.
## **l) Operating leases**
Rental charges are charged on a straight-line basis over the term of the lease.
## **m) Intangible fixed assets**
Intangible fixed assets comprises of computer software enhancements on the Chartered 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 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.
## **n) 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.
18
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
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)
## **o) 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.
## **p) 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.
## **q) 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.
## **r) Pensions**
The Chartered Institute operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Chartered Institute. The Chartered 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.
## **s) Tax policy**
The Chartered Institute is exempt from Corporation Tax as its income is raised charitably and spent on its charitable purposes.
19
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **2. Income and expenditure from raising funds**
||||Unrestricted funds||
|---|---|---|---|---|
||||**2022**|2021|
||||**£**|£|
|**Income from raising funds**|||||
|Corporate support|||73,385|173,758|
|Corporate sponsorship|||73,852|87,558|
||||**147,237**|261,316|
||||Unrestricted funds||
||||**2022**|2021|
||||**£**|£|
|**Costs of raising funds**|||||
|Staff costs|||139,548|97,534|
|Web development|||-|40,590|
|Corporate sponsorship|||-|(20,380)|
|Support costs (note 5)|||46,198|68,881|
||||**185,746**|186,625|
|**3. Income from charitable activities**|||||
||**Create a better**||**Enable**||
|**2022**|**environment**|**Increase**|**Fundraisers to**|**Year to 31**|
||**for fundraisers**|**understanding**|**be the best**|**December**|
||**to raise money**|**of fundraising**|**they can be**|**2022 Total**|
||**£**|**£**|**£**|**£**|
|**Unrestricted funds**|||||
|Membership subscriptions|1,062,806|-|-|1,062,806|
|Compliance Directorate|-|489,373|-|489,373|
|Training and events|-|-|1,328,666|1,328,666|
|Regional and special interest|-|-|72,635|72,635|
|groups|||||
|Other Income|-|-|10,000|10,000|
||**1,062,806**|**489,373**|**1,411,301**|**2,963,480**|
|**Restricted funds**|||||
|Scotland office|16,980|22,640|73,580|113,200|
|Remember A Charity|894,131|-|-|894,131|
|Arts Council England|-|-|109,806|109,806|
||**911,111**|**22,640**|**183,386**|**1,117,137**|
|**Total income from**|||||
|**charitable activities to**|||||
|**December 2022**|**1,973,917**|**512,013**|**1,594,687**|**4,080,617**|
20
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
||Create a better||Enable||
|---|---|---|---|---|
|2021|environment for|Increase|Fundraisers to|Year to 31|
|(as restated)|fundraisers to|understanding|be the best|December|
||raise money|of fundraising|they can be|2021 Total|
||£|£|£|£|
|**Unrestricted funds**|||||
|Membership subscriptions|1,117,335|-|-|1,117,335|
|Compliance Directorate|-|269,763|-|269,763|
|Training and events|-|-|971,565|971,565|
|Regional and special interest|-|-|57,994|57,994|
|groups|||||
||1,117,335|269,763|
1,029,559|2,416,657|
|**Restricted funds**|||||
|Wales office|-|-|38,850|38,850|
|Scotland office|16,980|22,640|73,580|113,200|
|Remember A Charity|927,565|-|-|927,565|
|Arts Council England|-
|-
|109,944|109,944
|
||944,545|22,640|222,374|1,189,559|
|Total income from charitable|||||
|activities to December 2021|2,061,880|292,403|1,251,933|3,606,216|
**4. Expenditure on charitable activities**
|**2022**
**Unrestricted funds**
Membership administration
Other member services
Training and events
Regional and special interest
groups
Support costs (note 5)|**Create a better**
**environment**
**for fundraisers**
**to raise money**
**Increase**
**understanding**
**of fundraising**
**Enable**
**Fundraisers to**
**be the best**
**they can be**
**Year to 31**
**December**
**2022**
**Total**
**£**
**£**
**£**
**£**
446,832
-
-
446,832
87,541
256,300
17,508
361,349
86,704
86,703
1,436,344
1,609,751
20,417
20,417
163,337
204,171
144,370
98,172
288,740
531,282|
|---|---|
||**785,864**
**461,592**
**1,905,929**
**3,153,385**|
21
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Restricted funds**|||||
|---|---|---|---|---|
|Scotland office|13,045|17,393|56,529|86,967|
|Remember A Charity|816,827|-|-|816,827|
|Arts Council England|-|-|65,529|65,529|
|Support costs (note 5)|112,884|3,846|45,516|162,246|
||**942,756**|**21,239**|**167,574**|**1,131,569**|
|**Total expenditure on**|||||
|**charitable activities to**|||||
|**December 2022**|**1,728,620**|**482,831**|**2,073,503**|**4,284,955**|
||Create a better|Increase understanding|Enable|Year to 31 Dec|
|2021|environment for|of fundraising|Fundraisers to be the|2021|
||fundraisers to raise||best they can be||
||money|||Total|
||£|£|£|£|
|Unrestricted funds|||||
|Membership administration|561,896|-|561,896|561,896|
|Other member services|109,569|164,786|21,914|296,269|
|Training and events|-|-|1,090,606|1,090,606|
|Regional and special interest|-|-|42,821|42,821|
|groups|||||
|Support costs (note 5)|215,255|146,373|430,509|792,137|
||886,720|311,159|1,585,850|2,783,729|
|Restricted funds|||||
|Wales office|-|-|43,317|43,317|
|Scotland office|14,536|19,381|62,990|96,907|
|Remember A Charity|791,782|-|-|791,782|
|Arts Council England|-|-|66,176|66,176|
|Support costs (note 5)|112,884|3,846|46,466|163,196|
||919,202|23,227|218,949|1,161,378|
|Total expenditure on charitable|1,805,922|334,386|1,804,799|3,945,107|
|activities to December 2021|||||
22
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **5. Allocation of support and governance costs**
Support costs are made up of depreciation, operating lease rentals, governance costs (note 6), irrecoverable VAT (note 8) and other miscellaneous costs. They are all allocated on the basis of staff time.
|**2022**
**Create a better**
**environment for**
**fundraisers to raise**
**money**
**Increase understanding**
**of fundraising**
**Enable**
**Fundraisers to be the**
**best they can be**
**Raising Funds**
**Year to 31**
**December 2022**
**Total**
**£**
**£**
**£**
**£**
**£**
**Unrestricted Funds**
**144,370**
**98,172**
**288,740**
**46,198**
**577,480**
**Restricted Funds**
**112,884**
**3,846**
**45,516**
**-**
**162,246**
**Total allocated 2022**
**257,254**
**102,018**
**334,256**
**46,198**
**739,726**
2021
**Create a better**
**environment for**
**fundraisers to raise**
**money**
**Increase understanding**
**of fundraising**
**Enable**
**Fundraisers to be the**
**best they can be**
**Raising Funds**
**Year to 31**
**December 2021**
**Total**
**£**
**£**
**£**
**£**
**£**
Unrestricted Funds
215,255
146,373
430,509
68,881
861,018
Restricted Funds
112,884
3,846
46,466
-
163,196
Total allocated 2021
328,139
150,219
476,975
68,881
1,024,214
**6. Governance Costs**
**2022**
2021
**£**
£
Auditor’s fees
- statutory audit
19,685
15,965
- under provision from previous year
-
6,862
- other services
-
2,705
Trustees’ meeting costs
2,730
-
Office and other costs
6,833
-
**29,248**
25,532
**7. Staff costs**
**2022**
2021
**£**
£
Wages and salaries
1,659,074
1,698,501
Social security costs
168,041
154,596
Pension contributions
101,053
91,887
**1,928,168**
1,944,984|**Create a better**
**environment for**
**fundraisers to raise**
**money**
**Increase understanding**
**of fundraising**
**Enable**
**Fundraisers to be the**
**best they can be**
**Raising Funds**
**Year to 31**
**December 2022**
**Total**
**£**
**£**
**£**
**£**
**£**
**144,370**
**98,172**
**288,740**
**46,198**
**577,480**
**112,884**
**3,846**
**45,516**
**-**
**162,246**|**Create a better**
**environment for**
**fundraisers to raise**
**money**
**Increase understanding**
**of fundraising**
**Enable**
**Fundraisers to be the**
**best they can be**
**Raising Funds**
**Year to 31**
**December 2022**
**Total**
**£**
**£**
**£**
**£**
**£**
**144,370**
**98,172**
**288,740**
**46,198**
**577,480**
**112,884**
**3,846**
**45,516**
**-**
**162,246**|**Create a better**
**environment for**
**fundraisers to raise**
**money**
**Increase understanding**
**of fundraising**
**Enable**
**Fundraisers to be the**
**best they can be**
**Raising Funds**
**Year to 31**
**December 2022**
**Total**
**£**
**£**
**£**
**£**
**£**
**144,370**
**98,172**
**288,740**
**46,198**
**577,480**
**112,884**
**3,846**
**45,516**
**-**
**162,246**|
|---|---|---|---|
||**257,254**
**102,018**
**334,256**
**46,198**
**739,726**|||
||**Create a better**
**environment for**
**fundraisers to raise**
**money**
**Increase understanding**
**of fundraising**
**Enable**
**Fundraisers to be the**
**best they can be**
**Raising Funds**
**Year to 31**
**December 2021**
**Total**
**£**
**£**
**£**
**£**
**£**
215,255
146,373
430,509
68,881
861,018
112,884
3,846
46,466
-
163,196|||
||328,139
150,219||
476,975
68,881
1,024,214|
||||**2022**
2021
**£**
£
19,685
15,965
-
6,862
-
2,705
2,730
-
6,833
-
**29,248**
25,532
**2022**
2021
**£**
£
1,659,074
1,698,501
168,041
154,596
101,053
91,887
**1,928,168**
1,944,984|
|||||
23
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
During the year, employees earning in excess of £60,000 per annum fell into the following:
|||**2022**|2021|
|---|---|---|---|
|||**Number**|Number|
|£80,000|- £89,999|1|-|
|£70,000|- £79,999|2|2|
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 Leadership Team, made up of the Executive Director Finance & Resources, Executive Director People & Engagement , Executive Director Membership & Charitable Giving. Salary, employer's NI and employer's pension contributions of the key management personnel for the period totalled £338,380 (2021: £406,736). Trustees' remuneration for the period was £nil (2021: £nil).
A total of £736 (2021: £nil) was reimbursed to 4 (2021: none) 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|**2022**
2021
**Number**
Number
3
3
14
10
9
11
16
18|
|---|---|
||**42**
42|
## **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 £134,472 (2021: £130,379) and is included within its associated expenditure category. Irrecoverable VAT which cannot be allocated is included within support costs (note 5) which is -£3,055 (2021: £7,878).
## **9. Intangible fixed assets**
|**_All used for direct charitable purposes_**
**Cost**
At 1 January 2022 and 31 December 2022
**Amortisation**
At 1 January 2022
Charge for year
At 31 December 2022
**Net book value**
At 31 December 2022
At 31 December 2021|**Computer**
**software and**
**website**
**£**|**Total**
**£**|
|---|---|---|
||813,479|813,479|
||416,633
105,993|416,633
105,993|
||522,626|522,626|
||
**290,853**|
**290,853**|
||396,846|396,846|
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 2022 was £22,159 (2021: £31,369).
24
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **10. Tangible fixed assets**
|**Cost**
At 1 January 2022
Additions
Disposals
At 31 December 2022
**Depreciation**
At 1 January 2022
Charge for year
On disposals
At 31 December 2022
**Net book value**
At 31 December 2022
At 31 December 2021
**11. Debtors**
Trade Debtors - Unrestricted
Trade Debtors - Restricted
Accrued Income
Other Debtors
Prepayments
**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
Bank Loan (see note 13)|Office
equipment
£
54,122
-
-|**Total**
**£**
54,122
-
-
54,122
22,753
13,652
-
36,405
**17,717**
31,369
As restated
2021
£
409,044
38,871
88,252
32,214
120,372|
|---|---|---|
||54,122||
||22,753
13,652
-||
||36,405||
||**17,717**||
||31,369||
||**2022**
**£**
316,836
43,988
56,948
-
101,300||
||**519,072**|688,753|
||**2022**
**£**
173,937
6,953
57,885
72,002
598,778
292,948
30,027|2021
£
114,869
32,736
40,269
68,882
516,068
293,971
-|
||**1,232,530**|1,066,795|
25
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|Deferred income brought forward
Income released during the period
Income deferred during the period
**Deferred income carried forward**|**2022**
2021
**£**
£
810,039
792,727
(810,039)
(792,727)
891,726
810,039|
|---|---|
||**891,726**
810,039|
Deferred income as at 31 December 2022 relates to membership, events and training income received in the period for the year ending 31 December 2023.
## **13. Creditors - Amounts falling due in more than one year**
|Bank loan|**2022**
2021
**£**
£|
|---|---|
||**227,473**
-|
||**227,473**
-|
In 2022, the Chartered Institute of Fundraising took out a loan with the Social Investment Business for a total amount of £257,500. This was part of the Government’s Loan Recovery Scheme. The loan is for a term of 36 months, with interest payable at 7.9%.
## **14. 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**
Remember A Charity
Scotland office
Arts Council England
**Total restricted funds**
**Total funds 2022**|**As restated**
**at 1**
**January**
**2022**
**£**
**(50,386)**
172,947
396,966|**Income**
**£**
**3,038,133**
72,635
-|**Expenditure**
**£**
**(3,196,220)**
(32,357)
(110,554)|**Transfers**
**gains and**
**(losses)**
**£**
**54,450**
(54,450)
-|**At 31**
**December**
**2022**
**£**
**(154,023)**
**158,775**
**286,412**|
|---|---|---|---|---|---|
||**569,913**|**72,635**|**(142,911)**|**(54,450)**|**445,187**|
||**519,527**||**(3,339,131)**||**291,164**|
|||**3,110,768**||**-**||
||190,514
35,794
119,172|894,131
113,200
109,806|(926,827)
(106,195)
(98,547)|-
-
-|157,818
42,799
130,431|
||**345,480**|**1,117,137**|**(1,131,569)**|**-**|**331,048**|
|||||||
||**865,007**|**4,227,905**|**(4,470,701)**|**-**|**622,212**|
26
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **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 Chartered Institute’s long-term project to increase legacy giving to charity.
## _Scotland Office_
The Chartered 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 Chartered Institute of Fundraising central unrestricted funds to cover the costs of activities in Scotland.
## _Arts Council England_
In April 2018, the Chartered 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 Chartered 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.
## **15. Analysis of net assets between funds**
||**General**|**Designated**|**Restricted**|**Total**|
|---|---|---|---|---|
|**At year end 31 December 2022**|**funds**|**funds**|**funds**|**funds**|
||**£**|**£**|**£**|**£**|
|Fixed assets|**-**|**286,411**|**22,159**|**308,570**|
|Debtors|**475,084**|**-**|**43,988**|**519,072**|
|Cash in bank and at hand|**436,992**|**158,776**|**658,805**|**1,254,573**|
|Creditors: amounts falling due|||||
|within one year|**(838,627)**|**-**|**(393,903)**|**(1,232,530)**|
|Creditors: amounts falling due after|||||
|one year|**(227,473)**|**-**|**-**|**(227,473)**|
|**Total 2022**|**(154,023)**|**445,187**|**331,048**|**622,212**|
||General|Designated|Restricted|Total|
|At year end 31 December 2021 (as restated)|funds|funds|funds|funds|
||£|£|£|£|
|Fixed assets|-|396,966|31,249|428,215|
|Debtors|649,882|-|38,871|688,753|
|Cash in bank and at hand|72,556|172,947|569,331|814,834|
|Creditors: amounts falling due|||||
|within one year|||||
||(772,824)|-|(293,971)|(1,066,795)|
|Total 2021|(50,386)|569,913|345,480|865,007|
27
**CHARTERED INSTITUTE OF FUNDRAISING**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **16. Related Party Transactions**
Other than the transactions disclosed within the notes to the financial statements, there are no further related party transactions to report (2021: 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 Chartered Institute – all such memberships subscriptions are offered at the Chartered Institute’s standard subscription rates.
## **17. Prior period adjustment**
After consideration of the debtors included in the financial statements for the year ended 31 December 2021, it was noted that they were overstated by £70,355 of bad debts that are irrecoverable. Therefore an adjustment to the results for the year ended 31 December 2021 has been made as follows;
|Fund balances at 31 December 2021 as
previously stated
Prior year restatement
Fund balances at 31 December 2021 as
restated|**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**Total**
**funds**
**£**
**£**
**£**
**£**|
|---|---|
||19,969
569,913
345,480
935,362
(70,355)
-
-
(70,355)|
||(50,386)
569,913
345,480
865,007|
|Income at 31 December 2021 as previously
stated
Prior year restatement
Income at 31 December 2021 as restated|**General**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**Total**
**funds**
**£**
**£**
**£**
**£**|
|---|---|
||2,675,930
72,635
1,189,559
3,938,124
(70,355)
-
-
(70,355)|
||2,605,575
72,635
1,189,559
3,867,769|
28
**CHARTERED INSTITUTE OF FUNDRAISING**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Charity name** Chartered Institute of Fundraising **Charity numbers** England and Wales 1188764 Scotland SC050060 **Registered office** Canopi, 7-14 Great Dover Street, London, SE1 4YR **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 **Chief Executive** Katie Docherty, Chief Executive
## **Trustees**
The following have served as Trustees in the year and to the date of this report, unless otherwise stated:
Nadine Campbell Joyce Fraser Rohan Hewavisenti Kelvin Hopkins Gary Kernahan (appointed 29[th] September 2022) Harpreet Kaur Kondell (appointed 12[th] April 2023) Rebecca Mansell Isobel Michael Matt Parkes Sofia Zeenat Sheikh Kerys Sheppard Esther Ngozi Sherato (appointed 12[th] April 2023)
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
29