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2022-03-31-accounts

The Neighbourly Foundation Trustees Report and Financial Statements

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Contents

Contents
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About the Neighbourly Foundation 04
Report from the Chair of Trustees 05
Purpose and activities 06
Aims and objectives 08
Vision and strategy 10
2021-2022 highlights 12
Achievements and performance 14
Corporate partners 22
Individual donors 23
Trusts and Foundations 24
Charity partners 26
Our commitment to donors and supporters 27
Financial review 2021-22 28
Principal risks and uncertainties 30
Structure governance and management 31
Our charity details 33
Statements of Trustees responsibilities 34
Independent Auditors report 35
Financial statements 38
Statement of fnancial activities for the year ended 31 March 2022 39
Balance sheet at 31 March 2022 40
Cashfow statement for the year ended 31 March 2022 41
Reconciliation of net income to net cash fow 41
Notes to the Financial Statements 42

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About Us

The Neighbourly Foundation (charity no. 1189514) is an independent foundation which collaborates closely with Neighbourly Limited, the awardwinning giving platform that helps businesses make a positive impact by donating volunteer time, money and surplus products to local communities.

The Foundation was established as a charity to advance general charitable purposes and operates to grant funds to other charitable organisations and projects. It was set up in response to the COVID-19 pandemic in 2020 to provide easier access to funding for our network of over 21,000 good causes, that support people in need and look after the health and wellbeing of communities across the UK & Ireland. The Foundation provides the route for its corporate partners to ensure funds are delivered efficiently and at scale to pre-vetted local causes that deliver against specific social and environmental impact themes.

21,000

Neighbourly connects businesses with over 21,000 vetted local good causes across the UK and Ireland.

Report from the Chair of Trustees

The fund subsequently totalled just under £75,000 and was disbursed as micro-grants to help small charities and good causes have a bigger positive environmental impact for local communities.

We launched the Foundation at the start of the COVID-19 pandemic in 2020, at a time of unprecedented strain for communities across the country. During the first year we were focused on establishing solid foundations for the charity, whilst supporting our clients and our network of local charities and community organisations through a period of great uncertainty and challenge.

At the start of 2022, amid much political and social conversation about the urgent need to build back better and level up, the country entered a new period of challenge with the onset of the cost of living crisis and the outbreak of war in Ukraine. Inflation reached a 40 year high and projections suggested it could hit 15% by the start of 2023, with warnings of ‘pain ahead’.

Our second year has been about building on those foundations and growing the profile of the Neighbourly Foundation. We have continued to respond to the impact of the pandemic and the growing desire of corporate partners that want to deliver targeted, fast-response and scalable donation management programmes into the local communities where they operate.

What this means for the network of local charities and good causes that the Foundation supports is a further rise in demand for support from hard-hit communities that are suffering from a new wave of poverty issues, access to food and mental health challenges. Our community survey in June 2022 highlighted that 82% of local causes had faced a rise in demand for their services in the past 3 months and 95% believe the cost of living crisis is creating demand for their services from households that have not needed to access support before. At the end of April 2021 our network of charitable organisations stood at around 16,000. 12 months later it was nearing 20,000 and will be closer to 25,000 by the end of 2022. Our aim is to continue to grow and support this charity network and respond to its needs, in line with the corporate funding that we are able to bring into the Foundation.

In the financial year 2021-22, we supported many of our founding corporate partners including M&S, the B&Q Foundation, Cadent Gas, Heineken, Southern Co-op, RSA Insurance, Aldi and giffgaff, delivering bespoke and impactful grant programmes. In addition, we are also delighted to have facilitated major new grants programmes on behalf of Virgin Media O2 and Sainsbury’s. In total for this reporting period, the Foundation has made charitable payments of over £3.7 million, which is a 65% increase on the £2.2 million paid out in our first 13 months of operations.

In 2021, the Neighbourly Foundation launched its first environmental programme, ‘Seeds of Change’, to coincide with the COP26 conference in Glasgow. This programme brought together financial support from Southern Co-op and RSA Insurance.

I would like to thank our trustees for their continued guidance and support, and to the Neighbourly team who provide the resources to ensure that targeted impact is delivered by the Foundation to areas of society most in need. Together with our network of donors, good causes and key partners, we are delighted that we have been able to grow our charitable donations so significantly in our second year of operations, providing much needed support for our local communities and the frontline causes that operate within them.

On behalf of the Board of Trustees of the Neighbourly Foundation, I’m pleased to present our annual report for 20212022, which covers the charity’s second year of operations.

Steve Butterworth Chair of Trustees

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Purpose & activities

The purpose of the Neighbourly Foundation is to support charities and good causes that improve the health and wellbeing of communities across the UK and Ireland.

The Foundation operates to provide grants to other charitable organisations, enabling our corporate partners to disburse both their own and their employee donations, and respond efficiently to critical need within local communities. The Foundation provides corporate partners the option to make donations on a donor-advised basis, to be deployed as part of an emergency response or via joint partner campaigns that align with the Foundation’s current social and environmental impact themes.

of all money donated is awarded to charity recipients

100%

The Foundation is registered with the Fundraising Regulator and the ICO. The Trustees award grants to not-for-profit organisations based in the UK & Ireland that are either registered with the relevant charity regulator for their region or carry out community activities that are recognised as charitable. The Foundation may also consider proposals from charities that are established outside the UK and noncharitable organisations that are established either in the UK or elsewhere.

The type of activity undertaken includes funding projects that address key impact areas:

100% of all money donated is awarded to charity recipients and there are no minimum and maximum grant amounts. For donor-advised funds, the grant amounts are determined by the client donor. In the case of grants which are intended to be used for emergency aid or according to one of the Foundation’s impact themes, funds are typically administered as micro-grants in the region of £500-£5,000 per charity applying, which allows the fund to minimise risk and extend impact.

The Neighbourly Foundation disburses funds generated through several different financial donation mechanisms:

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Aims and objectives

This report covers the second year of operations for the Foundation, during which time its aims and objectives were focused on of the building the profile Foundation with corporate partners and disbursing funds according to current clients’ donation management programmes.

There remains an urgent need within communities for help and from businesses wanting a targeted response mechanism for supporting local good causes. The reporting period covers a challenging time, with the ongoing impact of the pandemic, the war in Ukraine and the cost of living crisis creating significant demand on the network of good causes we support.

The criteria and measures used to assess success in this period include:

Successfully demonstrating our ability to respond to urgent needs, act flexibly and responsibly in support of the charity network, and report back on key impact measures in its first year has allowed the Foundation to further its purposes by engaging with additional corporate partners that understand the importance of building strong communities.

Aims for the reporting period:

Longer-term, the Foundation aims to:

⬤ Continue to respond effectively to community needs, in relation to future waves of COVID-19, the cost of living crisis and other societal or environmental pressures, utilising experience and feedback gained in the reporting period ⬤ Use community insights to inform the direction of corporate programmes

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Vision and strategy

The vision of The Neighbourly Foundation is to improve the health and wellbeing of local communities and environments by encouraging and facilitating corporate community investment.

The Foundation is governed by the charity trustees, who have a duty to apply the Foundation’s assets to advance its objectives and have ultimate responsibility for all grantmaking decisions. The Foundation has a Strategic Partnership Agreement with Neighbourly Ltd under which Neighbourly provides resources to the Foundation free of charge to support its charitable activities. The relationship between the two organisations is one of association and collaboration.

Helping people to fulfil their potential and achieve aspirations through educational programmes and support to access jobs that provide financial independence

The Neighbourly Foundation’s key priorities are to support charities and community causes that are:

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2021-2022 highlights

million

total paid out in grants to charitable organisations and projects from April 2021 to March 2022.

% 65 increase in donations compared to the Foundation’s first 13 month reporting period from March 2020 to March 2021.

million

people supported weekly by the charities that have received donations.

£75,000

Launch of environmental grants programme ‘Seeds of Change’ to coincide with COP26, donating just under £75,000 as micro-grants to help small charities and good causes with environmental projects

2,900

1.3 million

charities and community causes supported by donations from the Foundation.

Launch of donor-led grant programmes with new corporate partners Virgin Media O2 and Sainsbury’s, with payments totalling a combined £1.3 million.

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Achievements & performance

Neighbourly campaigns

‘Seeds of Change’ Environmental Programme

The Neighbourly Community Fund

Launched in March 2020 as an emergency response to COVID-19, the community fund distributed £1.23 million as £400 micro-grants in its first year (2020-21).

Launched in October 2021 to coincide with COP26, the Seeds of Change programme was a Neighbourly-led campaign which brought together support in the form of donations and volunteer time from Southern Co-op, RSA, Cadent, Coca-Cola EP, Danone and M&G.

In this reporting period, a further £58.9k was paid out as micro-grants to over 140 charities and community groups, continuing with the original aims of the fund to support communities negatively affected by the pandemic.

Just under £75,000 was donated as micro-grants to help small charities and good causes have a bigger positive environmental impact for local communities. In total 186 £400 grants were paid out for this campaign in 2021-22.

£58,900

£75,000

was donated as micro-grants to help small charities and good causes

was paid out as micro-grants to over 140 charities

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"The Seeds of Change grant
helped us educate young people
about the field-to-plate process
whilst also teaching them about
nature's positive impact on
emotional well-being"
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Corporate client programmes

£95,182 was donated to charities and community groups by Cadent’s matched giving initiative through the Neighbourly Foundation.

Up to £400 in matched funds was offered to any charities supported by Cadent employees through fundraising or personal donations, with more than 139,000 people supported in the 2021-22 period.

“We are a small PTA devoted to improving the learning experience of our children. Cadent’s generosity will allow us to purchase new learning resources , which will benefit the children now and for years to come”

Park Hill Junior School

£2,849 was donated by M&G through the Neighbourly Foundation as part of their Breaking Barriers Building Futures campaign.

Financial donations of around £20 per volunteer were offered alongside volunteering activities to help pay for resources and staff time. Good causes were selected based on proximity to M&G office locations.

“About 27 volunteers from M&G and Freshfields joined us to distribute meal packs, clothes, toiletries, bags, blankets and food bank supplies to homeless people, refugees and the elderly in central London. We had an impactful programme that benefitted many disadvantaged members of the community who attended the event.”

Refuge Network UK

£8,660 was donated by Heineken through the Neighbourly Foundation as part of their Brewing Good Cheer 2021 campaign.

£3,606 was donated by giffgaff through the Neighbourly Foundation as part of the ‘giffgaff gives back’ initiative.

The campaign offered grants of £150 to charities and good causes nominated by Heineken pubs.

Giffgaff gave support through grants of £400 to grassroot causes based in local communities nationwide.

“We’ve worked with Neighbourly on our annual Brewing Good Cheer campaign for six years, and over this time, we have hosted hundreds of charities and good causes up and down the country in one of our pubs. During the lockdowns and unable to open to the public, many pubs continued to support their local communities from providing food to hosting online events and fundraising – and through our Brewing Good Cheer campaign we wanted to support these efforts. We worked once again with Neighbourly on a nomination and payment process for our pubs to select local charities to receive a donation from the Neighbourly Foundation to continue their work.”

Sam Tarratt, Senior Sustainability & Community Impact Manager, HEINEKEN UK

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£161,879 was donated by Southern Co-op through the Neighbourly Foundation as part of their local funding scheme that’s focused on safer, greener, healthier and more inclusive projects, Love Your Neighbourhood Local Partnerships campaign and Food Bank campaign.

Good causes across the South of England were able to apply for grants up to £500 as part of the local funding campaign and £500 flat payment for food banks. Varied amounts of up to £3,000 were awarded for the local partnerships.

“The funding enabled us to be able to deliver food parcels to our members during the pandemic. Members answered the door with beaming smiles and some with tears of joy for seeing a friendly face. Thank you for this grant, it has made a wonderful positive impact on our members’ mental wellbeing during a very challenging time.”

£400,000 was donated by Virgin Media O2 through the Neighbourly Foundation as part of the Virgin Media O2 Together Fund.

The fund’s purpose was to supercharge hundreds of local charities across the UK as the nation emerged from the pandemic and to support local charities that champion and celebrate community spirit, belonging and togetherness across the UK. Grants of £1,000 were awarded to environmental and community belonging projects.

“We are now able to deliver

a much better service to some of the most vulnerable. Without your support our reopening would have suffered”

Age Concern Bracknell Forest

£272,654 was donated by Aldi through the Neighbourly Foundation as part of their Children’s Cupboard Initiative.

Funds were raised through Aldi PR and social media campaigns and through in-store promotions which were distributed as £400 micro-grants to charities that were supporting children with access to food.

“Trust House received an Aldi Community Cupboard Grant in March 2021, the £400 awarded has made a massive impact to our programme to beat holiday hunger. Over Easter and the May half term, the funds have been used to feed the 60 plus families we support and we will also be able to utilise the funds during the summer break. Thanks to this funding, our families have been able to stretch their budgets further, ensuring that no child goes hungry during school holidays.”

MHA Communities

Trust House Whitefield, Manchester

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£963,057 was donated by Sainsbury’s through the Neighbourly Foundation as part of their ‘Helping Everyone Eat Better’ community grants programme and their ‘Help Brighten a Million Christmases’ 2021 initiative.

£297,595 was donated by RSA Insurance through the Neighbourly Foundation via the RSA Climate Change and Education Grants.

RSA’s dividend forfeiture programme distributed unclaimed dividends to charities, CICs and community organisations that were all working towards climate and risk education goals. Grants ranged from £400 - £15,000 and over 47,000 individuals were supported.

For the ‘Helping Everyone Eat Better’ Programme, funds were donated as minimum £500 grants to help charities, CICs and community groups support projects that aim to help people access food, and/or help lift people out of food poverty.

“Huge thanks to RSA Group and Neighbourly for the £10,000 grant the Breck Foundation has received from RSA’s Climate Change and Risk Education programme. This grant will enable us to educate 1000s of children and young people in South-East England about online grooming and exploitation”

For their Christmas initiative, between 1st-24th December 2021, Sainsbury’s and Argos stores across the UK raised money for a range of good causes through fundraising by store staff, as well as from customers who were invited to offer financial and food donations both in-store and online. Sainsbury’s and Argos matched the value of all financial and food donations in this period, up to a maximum of £1.5 million across all locations. Beneficiary causes were nominated by employees at the participating Sainsbury’s and Argos stores.

“This grant was extremely important to our kitchen as we were cooking on sub standard equipment before. It really has helped speed things up and get us to where we need to be.”

The Breck Foundation

Book shop Brixton

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Corporate partners

We’d like to thank the Foundation’s corporate partners for their contributions to the Foundation during this period. Without their support and continued dedication to community investment, we would not have been able to positively impact the many thousands of charities and millions of individuals that have benefited from our programmes.

Neighbourly Community Fund donors:

Neighbourly Foundation clients that have donated to charities in this reporting period:

M&S, Lidl, Aldi, Danone, Coca-Cola European Partners, Heineken, giffgaff, Southern Co-op and Jefferies International.

Neighbourly ‘Seeds of Change’ donors:

Southern Co-op and RSA.

Individual donors

In the 2021-22 period, a number of partner campaigns facilitated donations from customers, through online payments made on the Neighbourly platform.

£1,836

was donated in total by individual donors through partner campaigns, which breaks down as follows:

£1,165 direct to the Neighbourly Foundation online £408 from Aldi campaigns

£253 from Lidl campaigns

£10 from Southern Co-op campaigns

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Trust and foundations

In the 2021-22 period, the B&Q Foundation donated £1,421,168 through the Neighbourly Foundation to charities that meet its mission, to help everyone to have a space where they feel at home.

The grants are focused on improving the places and spaces of charities who support people who are most in need with a safe and welcoming environment, ranging in value from £500 to £5,000. It is estimated that 208,000 people were positively impacted through these grants. Projects funded include improving, maintaining, providing or creating places to make people feel comfortable, safe and welcome.

“Within these spaces, people are encouraged to pause, take a breath, make memories, speak privately, process grief, reflect, find peace, re-fuel and find joy. The accessibility, comfort and visual cohesion that the new furniture has brought make the Quiet Room and Cafe far more appealing and calming environments for our beneficiaries and will continue to for many years.”

Mountbatten Hampshire

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Charity partners

Donations have been made to charities through the following programmes:

Programme Charities supported
B&Q Foundation 321
Candent Gas 237
Heineken 45
M&G 10
RSA 62
Southern Co-op 113
gifgaf 9
Virgin Media 02 402
Aldi 661
Sainsburys 707
Neighbourly Community Fund 147
Neighbourly ‘Seeds of Hope’ 186

2,900 1.1M

charities and community causes supported across all programmes, that helps an average of 375 people every week.

people supported weekly by the charities that have received donations from the Foundation.

Key Sustainable Development Goals supported by The Foundation:

SDG Grand total % by
SDG
Good health and wellbeing £1,424,447 38%
No poverty £622,514 17%
Zero hunger £523,213 14%
Reduced inequalities £391,563 10%
Sustainable cities and communities £229,446 6%
Life on land £144,438 4 %4%
Quality education £125,255 3%
Climate action £122,246 3%
Gender equality £73,724 2%
Other (1% and under) £103,815 3%
Grand total £3,761,413 100%

Our commitment to donors and supporters

We are grateful for the generosity of our donors and supporters and we commit to:

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Financial review 2021-22

During this reporting period, the Neighbourly Foundation received £3.994m of restricted funding and donated £3.76m in grants to charitable organisations.

Where our income

comes from

All of our income has come from charitable donations, either from the Foundation’s corporate partners, trusts and foundations, individual donors or Neighbourly Ltd. All donations are treated as restricted with the exception of Neighbourly Ltd, whose donation is to support running costs of the charity.

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Individual Neighbourly
donations - Ltd -
£1,836 £26,988
(0%) (0.5%)
Trusts and Corporate
Foundations - Donations -
£1,466,343 £2,498,745
(36.8%)
(62.7%)
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Where we spend our income

Our sole activity is granting funds to other charitable organisations and projects, therefore this accounts for 99% of our spend. Any administrative costs, for example audit fees, insurance etc, are covered by donations from Neighbourly Ltd.

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Administrative
costs -£23,600
(1%)
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Grants to
charitable
organisations
and projects -
£3,761,300 (99%)
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Reserves

The majority of cash at bank is restricted with only a small balance being unrestricted. Grants are then made to charitable organisations from balances held on behalf of corporate and other donors. Unrestricted funds are held to cover the running costs of the charity including, for example, audit fees and insurance.

Under the Strategic Partnership Agreement with Neighbourly Ltd, all resources to enable the charity to operate e.g. access to the Neighbourly platform and staff costs, are provided free of charge. The trustees have concluded that it is necessary to maintain only minimal reserves to cover the running costs of The Neighbourly Foundation and at any time sufficient reserves are held to cover three months of committed expenditure.

At the period end the charity had total reserves of £781k with restricted reserves of £771k and unrestricted reserves of £10k. The restricted reserves are not available for general purposes of the charity and are to be donated to other charitable organisations in the next period.

Going concern

The trustees have a reasonable expectation that The Neighbourly Foundation has adequate resources through its partnership with Neighbourly Ltd to continue to operate for the foreseeable future. Hence the annual financial statements have been prepared on the going concern basis. Please refer to the Notes to the Financial Statements for further detail.

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Principal risks and uncertainties

The Neighbourly Foundation has been proactive in providing guidance to its network of causes regarding the management of risks, whilst continuing to survey causes periodically to ensure we remain responsive to changing needs. Neighbourly continues to expand its number of corporate partners donating through the Foundation in order to provide relevant support for local good causes and communities.

The Foundation is operating in a challenging environment due to a number of factors. The ongoing impacts of the pandemic and cost of living crisis are creating a huge strain on the charitable sector, as well as long-term financial and health implications for beneficiaries.

The ongoing pandemic, inflation, cost of living crisis and war in Ukraine are expected to create significant uncertainties and spikes in demand for charities and community organisations, whilst they face reduced funding and resources, increased costs and reduced volunteer capacity.

The UK is also facing ongoing upheaval as a result of Brexit and rising energy costs which are plunging more families into poverty. An additional threat for communities is climate related disasters, including flooding.

Structure governance and management

The Neighbourly Foundation is a company limited by guarantee (12541286) (England and Wales) incorporated 31 March 2020 and is registered with the Charity Commission as a charity (1189514). It is governed by its Memorandum and Articles of Association adopted on the same date.

Resolution of 13 September 2021, to all The Articles contain a conflict of trustees from time to time. The liability interest provision to ensure that of each member under the guarantee Neighbourly Connected Directors is £1. cannot participate in any decision making that the trustees recognised The Foundation has a Strategic as Independent Directors consider Partnership Agreement with relates to the relationship between Neighbourly Ltd under which the Neighbourly Foundation and Neighbourly has agreed to provide Neighbourly. resources to the Foundation free of charge for the Foundation to pursue its Board meetings are held quarterly, charitable purposes. The relationship some of which during the reporting between the two organisations is period have been held virtually. one of association and collaboration and not one involving direction or Related parties control. Neighbourly Ltd recognises Steve Butterworth acts as the Chair and understands that the trustees of the charity and is also the CEO of have responsibility for governing the Neighbourly Ltd. Chris Kelly is nonFoundation and does not interfere executive Director of Neighbourly Ltd. in the day to day running of the Both own shares in that company. Foundation. Neighbourly does not act in any way that prejudices the independent decision-making of the trustees or which inhibits the trustees’ ability to fulfil their charity law duties.

Objects

The Objects of the Foundation as set out in the Memorandum and Articles of Association. The Foundation has been established to advance general charitable purposes for the public benefit and will operate principally by granting funds to charitable organisations and projects which are charitable under the law of England and Wales (provided that the Charity may not further any purposes which are not charitable in accordance with the laws of Scotland and Northern Ireland).

Steve Butterworth acts as the Chair of the charity and is also the CEO of Neighbourly Ltd. Chris Kelly is nonexecutive Director of Neighbourly Ltd. Both own shares in that company.

Organisation

The charity was established on 31 March 2020 as a company limited by guarantee, with Neighbourly Ltd as its sole member. Further to a Special Resolution of 26 February 2021 the membership was transferred from Neighbourly Ltd to Howard Russell, one of its trustees, and further to a

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Our charity details

Charity Name:

The Neighbourly Foundation

Registered Charity Number:

1189514 (England and Wales)

Registered Company number:

12541286 (England and Wales)

Remuneration

None of our trustees receive remuneration or other benefit from their work with the charity.

Recruitment of Trustees

The charity ended the year with four trustees supporting the charity. As the charity grows it will aim to recruit additional trustees who have the skills the charity needs to develop. It values the benefits of having members with different backgrounds, expertise and experience.

Trustee induction and training

All new trustees will undertake an induction programme, which includes visiting our partner Neighbourly, understanding the roles and duties of the trustees, company and charity law and governance, and financial and risk management.

Risk management

The trustees are cognisant of the reliance that the Foundation has on its partnership with Neighbourly. The trustees regularly seek assurances that support remains in place and will do so for the foreseeable future.

Public Benefit

The trustees confirm they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives, and in planning future activities. The Neighbourly Foundation’s focus on pandemic recovery, community health and wellbeing, skills development and environmental stewardship, working in partnership with local charities and community groups, will have a direct and positive benefit on individuals that are isolated, marginalised or vulnerable and those living in deprived neighbourhoods.

Fundraising Standards

The trustees are aware of current legislation and updated guidance from the Charity Commission. We are a fully contributing member to the Fundraising Regulator and follow best practice in our fundraising. We are compliant with the regulation where it applies to us. We do not contract with third party fundraising organisations.

By order of the board of trustees Steve Butterworth (Chair)

Trustees and Directors:

Steve Butterworth (Chair of Trustees)

Chris Kelly Howard Russell Nicholas Smailes

Registered office:

Engine Shed, Station Approach, Redcliffe, Bristol BS1 6QH

Bankers:

Lloyds Bank, 3rd Floor, 25 Gresham Street, London, EC2V 7HN

Legal advisers:

Bates Wells, 100 Queen Street Place, London, EC4R 1BE

Auditors:

Bishop Fleming LLP, 10 Temple Back, Bristol, BS1 6FL

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Statements of Trustee responsibilities

The charity trustees (who are also the directors of the Neighbourly Foundation for the purposes of company law) are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply

Independent Auditors report

Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

Opinion

We have audited the financial statements of The Neighbourly Foundation (the ‘charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

The other information comprises the information included in the Annual report other than the financial statements and our Auditors’ report thereon. The trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

Conclusions relating to going concern

In our opinion the financial statements:

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

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

We have nothing to report in this regard.

Basis for opinion

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

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

Steve Butterworth - Chair of Trustees Date: 31 October 2022

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Opinion on other matters prescribed by the companies act 2006

Responsibilities of the trustees

As explained more fully in the Trustees’ Responsibilities statement, the trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Matters on

which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

Auditors’

responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors’ Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

relationships that may indicate risks of material misstatement due to fraud;

⬤ Performing detailed transactional testing in relation to the recognition of revenue with a particular focus around year-end cut off; and

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgments made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.

We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the trustees in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an Auditors’ 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 trustees for our audit work, for this report, or for the opinions we have formed.

David Butler FCA DChA (Senior statutory auditor)

for and on behalf of

Bishop Fleming LLP Chartered Accountants Statutory Auditors

10 Temple Back, Bristol, BS1 6FL

Date: 31 October 2022

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Financial Statements

The trustees present their annual report together with the audited financial statements of the Charity for the year ended 31 March 2022. The Annual Report serves the purposes of both a Trustees’ Report and a Directors’ Report under company law. The trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company’s governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the Charity qualifies as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 has been omitted.

Statement of financial activities for the year ended 31 March 2022

Notes Unrestricted Funds Restricted Funds 2022 Total Funds 2021 Total Funds
£’000 £’000 £’000 £’000
Income from:
Donations and legacies 2 27 3,967
3,994
2,841
Other income 3 - - - 22
Total 27 3,967 3,994 2,863
Expenditure on:
Charitable activities 5 23 3,761 3,784 2,292
Total 23 3,761 3,784 2,292
Net income/(expenditure) 4 206 210 571
Reconciliation of funds:
Total funds brought forward 6 565 571 -
Net movement 4 206 210 571
Total funds carried forward 10 771 781 571

The Statement of Financial Activities includes all gains and losses recognised in the period. The notes on pages 42 to 48 form part of these financial statements.

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Balance sheet at 31 March 2022

Notes 2022 2021
£’000 £’000
Current assets
Debtors 10 165 16
Cash at bank 631 569
Total 796 585
Creditors
Amounts falling due within one year 11 (15) (14)
Net current assets/(liabilities) 781 571
Total assets less current liabilities 781 571
Total net assets
Charity funds
Restricted funds
Unrestricted funds
Total funds		 12
12		 781
771
10
781		 585
565
6
571

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the trustees and signed on their behalf by:

Cashflow statement for the year ended 31 March 2022

2022 2021
£’000 £’000
Cash fows from operating activities:
Net cash provided by / (used in operating activities) 62 569
Change in cash and cash equivalents in the reporting period 62 569
Cash and cash equivalents at the beginning of the period 569 -
Cash and cash equivalents at the end of the period 631 569

Reconciliation of net income to net cash flow

2022 2021
£’000 £’000
Net income for the period: 210 571
Adjustments for:
Decrease/(increase) in debtors (149) (16)
Increase in creditors 1 14
Net cash provided by operating activities 62 569

Steve Butterworth - Chair of Trustees Date: 31 October 2022

The notes on pages 42 to 48 form part of these financial statements.

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Notes to financial statements

General Information

The Neighbourly Foundation is a charitable company limited by guarantee and not having a share capital, registered in England and Wales. The registered office is Engine Shed, Station Approach, Bristol, BS1 6QH. The members of the charity are the Trustees named below:

Steve Butterworth Chris Kelly Howard Russell Nicholas Smailes

1. Accounting Policies

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Neighbourly Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

GOING CONCERN

EXPENDITURE

The accounts have been prepared on a going concern basis which assumes that sufficient working capital will be available for operational requirements.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

To conclude on this basis the trustees reviewed the cash flow forecast to October 2023 (12 months from the date of signing). As ongoing funding from Neighbourly Ltd is also key in our considerations, the budget and cash flow forecasts of the company were also reviewed. No material uncertainties were identified.

INCOME

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity’s objectives, as well as any associated support costs.

Grants payable are charged in occurs before income is received, the the period when the offer is made income is accrued. except in those cases where the offer Other income is recognised in the is conditional, such grants being period in which it is receivable and recognised as expenditure when the to the extent the goods have been conditions attaching are fulfilled. provided or on completion of the Grants offered subject to conditions service. which have not been met at the period end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

DEBTORS

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

CASH AT BANK AND IN HAND

Cash at bank and 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.

LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best

estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

FINANCIAL INSTRUMENTS

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

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2. Income from donations and legacies

2022 2021
£’000 £’000
Restricted - Donations 3,967 2,841
Unrestricted - Donations 27 -
Total 3,994 2,841

3. Other incoming resources

resources
2022 2021
£’000 £’000
27 22

Income from participating interests - Unrestricted

4. Analysis of grants

2022 2021
£’000 £’000
Grants to institutions
3,761		 2,276

The Neighbourly Foundation provides micro-grants to support good causes in line with the charitable objectives. Further analysis can be found under the ‘Charity Partners’ heading earlier in this report

5. Analysis of expenditure on charitable activities

2022 2021
£’000 £’000
Unrestricted funds 23 16
Restricted funds 3,761 2,276
Charitable activities 3,784 2,292

6. Allocation of

support costs

Support costs of £23,000 are allocated to charitable activities. These costs include Marketing costs (£10,000), audit and accountancy fees (£9,000), legal fees (£1,000), bank fees (£1,000) and insurance (£2,000). All other support costs are borne directly by Neighbourly Limited and are not recharged to The Neighbourly Foundation as it is not possible for the allocation to be accurately determined.

7. Auditors

remuneration

The auditors’ remuneration amounts to an auditor fee of £8,500, and preparation of accounts of £2,000.

8. Staff costs

Staff costs are borne wholly by Neighbourly Limited and not recharged to The Neighbourly Foundation.

9. Trustees’

remuneration and

expenses

During the period, no trustees received any remuneration or other benefits. During the period ended 31 March 2022, no trustee expenses have been incurred.

10. Debtors

11. Creditors: Amounts falling

2022 2021 2022 2021
£’000 £’000 £’000 £’000
Due within one year Other creditors - 1
Trade debtors 140 -
Accruals and deferred
Amounts owed by 25 16 income 15 13
participating interests
Total 165 16 Total 15 14

12. Statement of funds

Statement of funds Opening balance Income Expenditure Transfers Balance at 31 March
current period at 1 April 2021 in/out 2022
£’000 £’000 £’000 £’000
Unrestricted funds
Income from participating interests 6 27 (23) - 10
Restricted funds
B&Q - 1,466 (1,421) - 45
Cadent 6 113 (95) - 24
Lidl 5 125 - (5) 125
RSA 29 315 (298) (2) 44
Sainsbury’s - 1,238 (963) - 275
Southern Co-op 100 114 (162) (17) 35
Aldi 301 - (273) - 28
VM02 - 400 (400) -
Good health & well-being 31 20 (12) 8 47
Climate change 11 - - - 11
Reduced inequalities 1 19 (4) - 16
Volunteering support - 75 - - 75
Community fund - SOC - 66 (74) 32 24
Community fund - COVID19 81 16 (59) (16) 22
Total of funds 565
571		 3,967
3,994		 (3,761)
-
(3,784)		 771
781

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Statement of funds Opening balance Income Expenditure Transfers in/out Balance at
prior period at 1 March 2020 31 March 2021
£’000 £’000 £’000 £’000
Unrestricted funds
Income from participating - 22 (16) - 6
interests
Restricted funds
B&Q - 589 (589) - -
RSA - 318 (289) - 29
Southern Co-op - 143 (43) (5) 100
Aldi - 374 (73) (2) 301
Community fund - COVID19 - 1,289 (1,228) - 81
Good health & well-being - 89 (32) - 37
Climate change - 11 - - 11
Reduced inequalities - 23 (22) - 1
Zero hunger - 5 - - 5
- 2,841 (2,276) - 565
Total of funds 2,863 (2,292) - 571

projects that aim to help people to access food, and/ or help lift people out of food poverty.

spirit, belonging and togetherness.

B&Q: These funds are allocated to support projects that are improving, maintaining, providing or creating places to make people feel comfortable, safe and welcome.

Community Fund - COVID-19: These funds were restricted to support local communities suffering as a result of the pandemic.

Southern Co-op: These funds were allocated to good causes local to Southern Co-op stores that support people with food provision or help deliver greener, safer, healthier and more inclusive neighbourhoods.

Cadent: These funds are restricted to fund causes that Cadent employees are passionate about and match their own fundraising efforts.

Community Fund - (SOC) Seeds of Change

Environmental Fund: These funds were donated as micro-grants to help small charities and good causes have a bigger positive environmental impact for local communities.

Aldi: These funds were allocated to food banks and aid organisations supporting children with food provision.

RSA: RSA’s dividend forfeiture programme distributed unclaimed dividends to charities, CICs and community organisations that were all working towards climate and risk education goals.

Virgin Media O2: The fund’s purpose was to supercharge local charities across the UK as the nation emerged from the pandemic and to support groups that champion and celebrate community

We also have a number of smaller funds that support good health & well-being; climate change; reduced inequalities and zero hunger.

Sainsbury’s: These funds were donated to help charities, CICs and community groups support

13. Summary of funds

Statement of funds Opening balance at Income Expenditure Transfers in/ Balance at 31
current period 1st April 2021 out March 2022
£’000 £’000 £’000 £’000
General funds 6 27 (23) - 10
Restricted funds
Total		 565
571		 3,967
3,994		 (3,761)
(3,784)		 -
-		 771
781
Statement of funds Opening balance at Income Expenditure Transfers in/ Balance at 31
prior period 1st March 2020 out March 2021
£’000 £’000 £’000 £’000
General funds - 27 (16) - 6
Restricted funds
Total		 - 2,841
2,863		 (2,276)
(2,292)		 -
-		 565
571

14. Analysis of net assets between funds - current period

Unrestricted funds Restricted funds Total funds Total funds
2022 2022 2022 2021
£’000 £’000 £’000 £’000
Current assets 25 771 796 585
Creditors due within one year (15) - (15) (14)
Total 10 771 781 571

15. Reconciliation of net movement in funds to net cash flow from operating activities

2022 2021
£’000 £’000
Net income for the period (as per SOFA) 210 571
Adjustments for: - -
Decrease/(increase) in debtors (149) (16)
Increase in creditors 1 14
Net cash provided by operating activities 62 569

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16. Analysis of cash and cash equivalents


cash equivalents
2022 2021
£’000 £’000
Cash at bank and in hand 631 569
Total cash and cash equivalents 631 569

17. Analysis of changes in net debt


net debt
Cash fows 2022 2021
£’000 £’000 £’000
Cash at bank and in hand
631		 631 569

18. Member’s liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

19. Related party transactions

The Neighbourly Foundation has not entered into any related party transaction during the period, nor are there any outstanding balances owing between related parties and The Neighbourly Foundation at 31 March 2022.

Trustees remuneration and expenses is detailed in note 9.

20. Controlling

party

There is no registrable person or registrable relevant legal entity at the date of signing.

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The Neighbourly Foundation Trustees Report and Financial Statements