Dor*J5wTh £n￿b)Fe ID.. SD8D61BI.E1584DOA-BFhl￿9*D1èI6P13 *AWZFAII• 21fi)W2024 CCWANIES Fondation CHANEL Annual Report and Financial Statements For the year ended 31 December 2023 Company Limited by Guarantee Registration No.: 12786875 (England and Wales) Chariry Registration No.: 1195353 OovJsYw Envéhjpe ID.. s0￿￿1B1.EIs￿4O￿A04OWlOe6F13 Table of contents Reports Leg& adMM￿Lral￿edda1s..............................__.__._._....._._._._...._.....__............_._._........._._......................... Strattyi rekKXt..............................................._._...._......__..___....................._._..........._..._._....._..................... T￿￿tee5. repyt......................................_._......._.......__...._.._._.._......_......._..__._..._........................._..._._....... IrKIegtsid￿¢ a￿￿Or$ repxt..........................._...._..._-._......_._..___.._....._......................................_._...................22 Ffnanclal statements Statem￿1 of finar￿ ￿............................-.-.....-.._--.___ ._.__. . ..._..................._....................._.26 str￿......................................................................................................_...................Z7 Statem￿1 of cth1￿6............................ .. ......_......................................................._....._....._. Note5￿theffinanoal$WerWts........................ Fondation CHANEL. InnLd Ret01 ststw￿ts 2023 Intemal use En¥¢hipe ID.. 50906181.E1584DDA-BFAtWJW1W13 LEGAL AND ADMINISTRATIVE DETAJLS REGISTERED OFFICE INDEPENDENT AUDITOR S Barlow Plac¢ IA)ndon WIJ 6L Ernst & Young LLP (UK) Ststuiory Auditor Citygate St. James. Boul¢vard Newcasde uN)n Tyne NEI 4JD Compally registration no.: 12786875 Cbarity registration no.: 1195353 TRUSTEES (DIRECTORS) LEGAL ADVISORS P. B. Blondiaux Ba*s Wells & Braithwaite ll￿d0n LLP 10 (￿¢¢￿ Street Pla¢¢ London EC4K IBE C. Isnard 20241 M. Nitsch 5 lune 20241 Y. Peel M. van Oranje I1￿￿knt Tntsteel C. Woodcraft (Ir￿e￿￿knt T resw•Y sJU￿ 2024} Wylie R. Bailly 5 lune 20241 L. Mapp Frett lappohitgd 5 hJrE 2024lllrKWthit Tr￿￿1 N. Nwun¢li (aFPLwr￿ 5 Jwt 20241 Tristeel Citibank. N.A. t￿ndOn Canary Wharf London E14 5LB OFFICERS Chair.. L Wylie S￿￿tary. E. Jones-Ransley {re>J￿d 5 Jwe 2024) F. Smith14yFiloJ S 20241 KEY MANAGEMENT PERSONNEL President: K. Wy]ie Global Head: K. Mthur Managing Director.. V. Meunier Irw 31 20231 Fondation CHANEL. ReF#xI ￿ Frn￿l Slalerno￿ 2023 0￿Styn En%*•• ID." g)WJ6181.EIWDL144FAfkAD9ID1B86F13 STRATEGIC REPORT INTRODUCTION Th¢ tru5t¢¢s of FottdatioD CHANEL (tb¢"FouDd4tion" or the Ybarity'j have prepared tbis report with the pu￿0$¢ of provith'ng tb¢ ChaTity'5 5tsk¢holders with infornJa¢ion about how the Charity managed its fi￿d$ aod the a¢tivities it widertook ￿ achieve its aims and objectives during th¢ year that ended 31 D¢¢eMb￿ 2023. Tbe report includes the strategic report (prepared in WTdan¢e with s¢¢tion 414C of Ib¢ Companies Act 2006). the tDJstees' report. the independent auth'tOT'S r¢port and the ChaTity'S annual accounts (prepared in accoTdaDce with FRS 102 and th¢ Cbarities stA￿Dent of Recornmended Practice (SORP)). OUR AIMS Fondation CHANEL (the"FouDdatioD" or the'£baritn is a UK registered grant-making charity WOTktng in solidarity with its not-for-profit partners to create cortditions forwomen and #dolescent gr15, ID all their diveTSities. to be free to shape tbeir own destiny. We take a bespok¢ appma¢h to granl-makin& W¢ lo our graDtee partners. needs and tailor Tesources to support them in tnaking positiv¢ impa¢L while bw"Idillg their OTganisational capacity and enbancing th¢ir w¢llt*uyg. We fonn deep, long-letm partnerships with organisations tsking action at the heart of their communiti¢s. trusting tbat it is within tbese comrnwiities that the best solutiows are fouft and r￿Q￿r¢¢$ are besi tr¥nsfornied into meaning￿3 clLaDge. We are 'holistic' with our approath and ￿Pport. Womcn #Dd adolesceDt girls do not lead single-issue lives or have one-dim¢nsional id¢Dtiti¢s. Our paTln¢t5 Sha￿ thJ"5 understsndiug of the complex challenges and issues women and girls fac¢ in their everyday lives. This inforn the development and evolution of support provid¢d by the Foundation 3nd our grante partners. OUR APPROACH For wom¢n and girls to be free to shape their own destiny. conditioL8 of safety. economic and social auloDomy and climate resilience are essenlial. Th¢ followiug thT¢e tb¢n)atic pillats ar¢ ¢ru¢ial foundations to our strategic approach. Safety & wellbeing Women and girls must be guaranteed fundamental rights and Tesources to live bealthy lives. fr¢¢ from violence. These include adequate standards of livin& access to safe housin& basi¢ h¢altb s¢rvic¢& social and legal protection. and a sustainable environment. Their safety and wellbeing must be proi¢¢ted by laws. institutions. and social norn￿. Witbin Ibis pillar. we fwis on: eliminatjng gender-based violence". community-based health #nd wellbein& and so¢ial pr01cct￿n Econornic andsocial aylonomy Fondation CHANEL. F4xxt aThJ Statvrrt 2023 In¢ernal use 0￿$19Th En¥Blap• IO.. 509D6101￿l￿4OD￿Nts￿D￿1Be0Fl3 STRATEGIC REPORT In 4 jusi wiety. women have an quai and Clear voi¢¢ in th¢ choices and decisions that impact their lives. If thes¢ basic needs are meL Ivomell bave iDcreAs¢d opportunities to develop and hon¢ th¢ir expertise and pursue per50Dal, int¢ll¢¢nthl, and economic fulfilment through eTnploymeni OT entrepreneurship. They can tsk¢ on l¢#d¢rship oppot1unities at worK in their cornmuDitie$, and in social movements. They (*n become In￿ ageots of change in society and unlo¢k new potential to secure a belter future. Within pillar. we focus on: skills and leadership development.. access to a w¢ll-r¢sourced and supportive care e¢0[￿my.. alld social and eDvironm¢nt41 resi11￿¢¢. Ivomen-ledclimate ruilienee Efforts towards gender equality and climate resili¢n¢e Te¢ognise the disproportionate it[￿a¢t that climate change bas OD women and girls. and the ititersection beNeen climate cbange aDd women's rights issues. including saf¢ty, viol¢n¢¢, h¢alth. economic autonomy* the care economy, and more. Efforts also acknowledge #nd support the key role women and girls play in leading climate resilience within conununiti¢S aDd solidarity movements. In recognition of this, in 2023 FondatioD CHANEL intrtsdu¢ed women-led dimate resiliencc a5 the third pillar of our Work. Within this pillar. we will be rOc￿81n8 on.. grassroots. community and women-01￿ girl-led cliDiate adaptation and Tesilien¢¢- buildin& leadership, empowernienl, and r¢pr¢s¢ntation of women and girls in decision-making and advocacy on clirnate. fia￿tiVe sbifts and insigbts on the int¢rs¢ction between gender inequality and climate As a priority. we will f(￿S ¥)n supporting women* younE women. girls and diverse ¢ommuniti¢s around the world to adapi and build r¢5ili¢n¢¢ to ¢limate change. Furt1￿ detail on this developing Workstream will be provided iti future reporting. OUR PROGRESS Our key achieven￿nts in 2023 centred on building a strategy for our work up to 2030. the expansion, deepening and fo¢us of our regional portfolios, scaling up of our i￿rn. 4Dd preparations for evolving our governance in 2024. Increoved regionalfotus The Foundation began the process of dividing the Foundation's 'intrrnational' portfolio into thr¢¢ distinct regional portfolios (Asi4 Japan and tb¢ Pa¢ifi¢' Africa and the Middle East" Global Parn]erships and Advocacy) with their own I0￿)5¢d stra¢eEies. financial and human resour¢es. and workplans. To support this approach. th¢ Foundation's first Head of Asia start¢d in S¢pt¢mber 2023. We also mapped foundations for further remiitment and gro in the UK and Afri¢a and Middle East regions. The Global PaTtneTships and Advo¢acy team oversees parthersbips at a global or lY0￿-re£lOnal level. Fondation CHANEL. Ann￿1 I*F*Yt aTrS Fnaroal Statertts 2023 Internal STRATEGIC REPORT The Foundation expanded its presence to eight new wtries and regions in 2023 (Afghanistan, Pakistsn, Nepal. Pacific Island8, Nig¢r, Dominicatt R¢publi¢. th¢ D¢mocratie Republic of Con80 and Uganda). Our expansion ID Asia was part of our Asia region strt¢gy. which identified these as key geographies to be present in. Our expansion to DRC. Niger, DotDinican Republic and UgaDda was due to a new partnuship with a pooled fimd that prioritlses these countries ID their re-grantin& Enh¢7nc¢d identity The Foundation worked with an external desi￿ studio to red¢v¢lop th¢ Foundation's visual and verbal idenlity. This involved collaborations between a selection of partners across different regions and women-identifying photo￿apherS and artists. to create a series of visual assets r¢presenting parthers. work. The new Fondation CHANEL w¢bsi*. will f¢atur¢ s¢v¢ral of these visual assets. Evolving our governance SIn¢￿Te In 2023. we worked on developtng a strategy for evolving the Foundation's governance stru¢tur¢ so that we can Tespond to the Deeds of OUT growing organisation across the world and one which ¢OTresponds to the size of the funding committed by our sole member, Chanel Limit¢d. In 2024. w¢ will ¢OOliDU¢ this WO￿ Further detsil 15 Set out in Y)ur Plans- below. Newpillarfocuving on climate resi1¥ep￿t Given th¢ disprow)rtiODat¢ impacl climak chang¢ has OD women and girls around the worl in 2023 the Foundation agr¢ed to develop # new th¢matic pillar focusing OD clirnate resilience, and incre&qed our investm¢ni in this area. A of four n¢w pgrtnerships under this pillar were approved and a longstsndittg partnership was renewed for the Foundation in the UL This increased the Foundation's commitment to gender and climate by $8 million. to a ￿1￿1 of $14.3 millioD. stren￿￿enIn8gTan￿ep￿F1neT capacity building The FoundatioD streDgthened the capacity-building support we provide for our grantee partsiers in 2023 &$ part of our Funder+ offer. Funder+ supports partners to a¢hi¢ve rnaximujn, sustainable impact through a TaDge of Don-finaDcial support to strengthen organisations and amplify voices. This includes briD￿ng n¢twork iogether to learn from each otber. offering lechnirAI assislance and facilitating skills developmenL Emergency responsefvndtng We contitiued to provide fuDding to r¢swnd to em¢rgcncies. including the earthquakes in Afgbanistall and s￿la, fl¢M)ds in Liby4 aDd to provid¢ op¢rational supp)rt grants to UK orgatiisations in response to the ¢ost-of-living crisis. Learning and impacl Colleagues vi$it¢d multiple p8rtn¢TS in 2023. demonstrating OUT commilment to maintaining strong relationsbAps and deepenitig our und¢rstaDdiDg of I￿al contexts and challeng¢s. Our teams attended several confeTences during the year. such as the Annual Asia V¢ntur¢ Pbilanthropy Network (AVPN) and Women Deliver 2023. to maintain our eDgagemenl with live global ¢ODvershtions around gender philaDthropy. Fondation CHAN&. knrnjal R4K¥I Stairnts 2023 Internal L DwJwgn En¥dop• Ict. gJ9061B1.E15WDA.BFALWW1W13 STRATEGIC REPORT We contitiued to strengthett our inten)ai learning culture by hosting team-wide learning sessions. for example on iDt¢rs¢ctionality. NEW GBANTS APPROVED In 2023, the Foundatson approved grants to 40 new ETaDtre partneTS r¢pr¢s¢nting a total of USS50.1 million in fimding. Of this amount. US$12.9 million w4$ payable An 2023, while an estimated US$37.2 million was committed for payment in futur¢ y￿$ subject to the fuifilment of funwe ¢onditions as ouilirted in noi¢ l of the finattcial statements. Most of tbese •pproved ￿lt$ repKsent multi.year fimding comnllth￿llts of three years or longer. 2023 2022 Total new multi-year grant fuDding approved during the y¢aT USS50.1 million USS49.4 million Number of new grdntee partners 27 New grant expenditure wgti]s￿ during the year USS12.9 million US$1 1.1 million New grant funding committ¢d to futur¢ years (esL} USS37.2 million USS38.3 million TOTAL GRANT-MAKtNG A￿1VITy In total. the Foundation sp¢Dt a total of USS25.9 million on ￿ant-makIng activity. T*bi¢h supported 50 organisations: USSI 2.9 million related to new grants approved in 2023 and USSI 3.0 millioD related to ongoing grants approved ID the prior year. As of 31 December 2023. w¢ had an ¢Mim#ted total of USS52.4 million in grant fuDdiDg committed for pajinent in futtre years subject to the fulfilmeni of ￿tllre CODditions as outlined in note 3 of tbe financial statements. OUR IMPACT CONTRIBUTION OUT approach to impact and learning aims to evaluate how we support meaningful transforn)ations in individual lives, communities, and societies. We endeavour to l¢arn and share wbat is needed io make tangible progress for women and girls and what is standing in our way. Achieving real and lasting ¢bang¢ on long-5tJnding complex social i55u¢s is ch¥llenging. It typically cannot be attribui¢d to a single individual or organisatson. It must k sustainable and durable and requires long-ierni comtDilm¢nt. Fondabon c￿lANEL. Ithual Repjrt Skknts 2023 Intem* use D￿h3n En%*W* ID.. 5o9C41è1.E1w￿&P￿￿￿￿lDlBW13 STRATEGIC REPORT As sucty our itnpact is best demonstrated as a contribution to a much wbole sb4p&I by countless others working acro￿ our ecosystrm. Our impact and learnings are best illustrated through the stories, iDsigbts, and experiences of our grantee paTlI)ers and the communities they work in over time, coupled with meaningfvl datapoints. As a gTani-rnaking organisatio￿ accountsbility to our gr¥nt¢¢ partners is of higbest importance. The dats and stori¢s w¢ ¢oll¢¢t help ￿derStAnd how we sbow up ID our grant¢e parth¢r r¢lationships, what w¢ can do b¢tt¢r to wpon them. and whether we are living up to the values we set out for ourselves. OUR IMPACT LEVELS Th¢ Foundation Pursues itwmct at three levels: individuals communitie4 systerns and social oorn]s. and grantee partrlers and pea5. Indiwduals and comniuniti First. we have an indirect in)pact via our graotee partners working to improve tbe lived experiences of individual women and girls and their rL)mmunities by pursuing the following outcomes.. womeD and girls have control over their ix)dy. healt￿ personal sthty. ¥nd w¢llb¢in8' women and girls access the resowces. opporlunitie5. aDd skills they ne¢d lo ¢nsur¢ their social and economic autonomy: and women and girls incTease theiT awareness. agency* and ability to advocate for themselves and others. Sysiems andsoci(Ll norn Second, we have an iDdiTe¢i impaci via our gran￿¢ partnets working to addr￿ systemi¢ barriers thai binder the safety and autonomy of WOTnen girls by PUTsUi￿ th¢ followitig outwmes: improved policies and laws that pTr)mo￿ and support gender equality. r¢sour¢ing and strengthening m0ven￿￿ and gr&$$r￿tr organisatiolls Working for gender justice- and improved social ttorn￿ and behaviours that promo* and wrt gender equality. Partners andpeers Third, a5 a grant-rnak¢r. w¢ work lowards haviDg J dir¢¢t positive impxt on our grantee parthers by pursuing the following outcomes: orgaDiS8tions strengthen their organisational capacity. sustainability and wellbeing* organisations enhance their learning and networking Op1￿unItIes. ar organisations amplify their voices in ord¢r tt> ¢Dhan¢¢ th¢ir r¢a¢h and i]ffluetKe. Below are details of five grants active within our portfolio in 2023 that illustrate the work of our grantee partners and the impact they are pursuing at both the individual- and communities-level and systems- and social norn￿-ICV¢1. We recognise thai the Foundation is part of a larger ecosystem of funders and actors WOTking toward gender equality. Th¢refor¢. we acknowledge that we are contributing to our parttiers, ability to acbieve their desired impact, but do not seek io attribute their results to the FoundatioD. Fondation CHANEL. IkrNyi z023 lfttemal use DoLwSVJft En* ID.. SOgc*181*15&4DDA4FAt￿8￿18fjfjF13 STRATEGIC REPORT The Phoenix Way (UK) 2022-presenl USS3.5 MILLION TOTAL GRANT APPROVED (US$J35.000 dtsbuTsed during 2023) The Phoenix Way is a D¢w and ititiovative pooled fimd that the Foundation is funding in its initial stages of development. It provid¢s fl¢xibl¢ fiJlldiD8 to cFwities led by Black and Tacially-minoTitised people in the UK. With our support. The Phoenix Way will be able to award around 50 grants ovu a three year period aiming to reach 50.IMI people thTough projects aimed at advancing racial cquolity and the rigbts of Black and miDoriti5ed women. girls and their communities. In 2023, The Phoenix Way's provtded funding to Goals 4 Girls, an FASI Imdon grassroots organisation. The grant supported the organisation's all-fernale stsff in providing a programme of football sessions. mentoriD& and therapeutic and w¢lI￿ltiE SUPPOrt to girls ag¢d 11-16. 90/• of participants reported a sigDifi¢aDi improvoD¢ni in ¢onfiden¢e. resilience attd friendship-making abilities. The Phoenix Way's support for Anansi Theatre COm￿Y. by and for girls and young women of diverse ¢thniriti¢5 in D¢thy and the East Midland& bas helped the or£4nisation engage participaDts in creative a¢iivities that also open conversatiODS a￿￿)ut mentsl I￿1th. physical wcllb¢ithg and gender-based violetKe. Jn 2023. its fimding helped Anima Youth d¢liv¢r its youth-led projects for girls aged 13-25 ' LoDdon and Southeast Englan(L io belp tb¢m ttatisitiott to adulthood. Amina Youth'5 SI￿)atUre 'Tig Sis, Lil Sis" meniorship programme. is for girls who are vulnerable or at risk of exploitslion, isolation, and mentsl health challenges and has 70 girls curreDily ¢nroll¢d and 62 mentOT5. Fondation CHANEL. knLMI ReF#Yt 2023 Internal use C¥Jws*Jn EfflhYl7￿1o.. gJ906181&1584DDWAtsAD9*D1bU6F13 STRATEGIC REPORT Thousand Currents (GLOBAL) 2020-presenl USSJ.5 MILLION TOTAL GRANT APPROVED Thousand Cwrents funds grdssroot5. communiry initiatives in 140 ¢ountries across Afri IAtin Americ4 Asi4 the Pacific and the United States (US). The organisation fo¢uses on food, ¢¢ODomic aud climate justice ISSU￿ and through tb¢ir initiatives it has rea¢bed approximately 2(K) million people. The Foundauon's parnership witb tb¢ organisation has provided grants to Indigenous women's groups in Latin America and io Str¢ngtheD movements across TegioDS, reaching over 22,(JKI people in Pern. Guatemal4 El Salvador. and th¢ Amazon region in Brazil to datr. In 2023. Thow5and CurTeDts provided fill￿]ng to the"Kenyan Pe&sants L£ague- trj pur¢bas¢ four knectares of land for womcn affected by laDd-grdbbing and geDder-b&sed violence to orgat)ise, learn. farni. and exp¢riment in how to manage invasive insects through accessible and organic pesticid¢s. ID the Philippines. it has supported the Sarilaya organisation (meaning'gender freedom. in T3galogl, which has engaged 1,600 women, grls in all their div¢siit¢s ￿ develop rurnl a(xess lo renewable energy and set up womeD-owned solar panel cooperatives. CHAITANYA (ASIA) 2023-presenl USS800.000 TOTAL GR￿APPROVED (USS300.OOOk disbursed in 2023) For over 30 years. Chaitanya bas been building livelihood and savings PT0gTaM￿ via women self-help groups An ]ndia. Supported by th¢ Foundation, Chaitsnya is testing and scaling a programme wbich traios women wbo 4Te already active in these groups to become advocate5 and counselloTS for survivors of g¢nd¢r-basa violen¢¢. This progrdmme is called JaDk#r, meaning 'she who is aware'.Jankar women provide support as marriage ¢ouns¢llors and m¢diators of disagreement5 in the community. They also d￿U￿eTht s¢xual barnssm¢nt aDd domesti¢ abuse. Survivors can approach Jankar women for men￿1 h￿1th counselling or assistan¢¢ witb l¢g¥l complaints and divorce procthliD8S. To dale. there are 1,580 selected Jankar women WOTkn"ng acros5 9 districts ID 2 stsles, educating 4,174 adolescents and wpportitig 2,546 wom¢n in 5¢1f-belp groups. Jathr women us¢ their trainiDg and commwiity status to educate other women about rigb and social prote¢iions. They advocate ID communities and througb the justice system by training staff to cbang¢ so¢ial #nd ¢ulrural DQTm5 tbat perpetuate violence against women. As an indication of early succes4 this approach has beeD Jdopt¢d by l(Kal go￿rnments as bridg¢ belw¢en the justice system and at-risk women. IA)¢al gov¢rnm¢nts are prowiding office space for Jankar women within police precincts to facilitate more convenient strvice delivery. By leveTaging the soci81 infr&stru¢tur¢ of womeD 5elf-help group& Cbaitanya is implemet)ting a community-bas¢d soluts.on that is scalable across Djral India. while sUPPOrting domestic violence survivors and advocating for social norm change in communities. F(￿datIOn CHANEL. knnul Rekxjt WKI 2023 io Internal use Owjsw Ert¥¢kn￿ ID.. s09[￿)B1￿15￿D￿F￿D40￿1￿I3 STRATEGIC REPORT LEADING FROM THE SOLryH {GLOBAL) 2022-Pruent USS3 MILLION TOTAL GRANT APPROVED (US$J million disbursed in 2023) Leading from the South is a pbilanthropic fi￿d and alliance of four leading womeD'S funds- Wom¢n's Fund Asia. the International IDdigenou5 Womcn'5 Fotum. Fondo Mujeres del Sur, aDd the African Women's Developmeni Fund. It cbannels resources to support wollKns rights movements acmss Asia. Afn'ca and Latin America to transform societies. Frotn 2021 until the end of 2022. I£ading from the South provided 608 grants to organisatiolls led by women and girls in all theirdiversities, in the Global South to tackle sexual and gend￿- based violence. economic juslic¢. leadersbip and parts¢Ipatio￿ ¢limate justice. ethnic and racial justi¢¢. div¢w gender identities and sexualitie4 migration and displacemeDL peace. technology. and security. During this time. granttts have blocke4 wjopted, or inwroved 191 laws 4nd policies in 82 countries across Asia, Africa and Latin America. Exampl¢s cotDpris¢ the inclusion of recommendation 39 on the rights of indigenous women and in th¢ United Nations Convention on th¢ Elimin4tion of All Forn￿ of Discrimination against Won)en (CEDAW), and the inclusion of t¢¢hnology and land ownership laws and policies as pub]ic or'common. rights. IÈading from the South's work b&s a]so support¢d positiv¢ changes In diversity. family. and labour laws and polici¢s. VOIX ESSENTIELLES (AFRICAIMENA) 2020-PreJent USS5.36MILLION TOTAL GIUNT APPROVED Voix EssentiELLES is a civil society-led fi￿d set up by the Global Fund and Speak Up Africa, and is funded by the Foundation. It is focused on fighting HIVIAIDS, tuberculosis attd malaria, as well &8 strengthening women and girls. eDgagemeDI in nalional health policies auoss francophone West and Central Afiica. Voix EssentiELLES believes iknt grassroots. wom¢n-led organisations should be able to advLKale for tbe health of wornen #nd girls . kn C6t¢ d'lvoir4 fvndiDg and training provided to the NatioDaJ Union of Disabl¢d Women (a wroots orgatiisation) enabled them to cary out policy advocacy work. and ensured disabled women's acce&8 to healih services was being nd¢d for the first tim¢. As part of this. the organisation participated in national dialogues and the ¢r¢4ti0n of national strategic documents on health, with inputs from women living with disabiliiies. In Burkina Faso, support from Voix EssenliELLES led to three women advocales being elected to some key healtb decision-making spaces the Global Fund Country Coordination Mechanism. the National Assembly and tlLe Municipal Council. Fondation OIANEL. Ann￿ ReFrfYt aThJ ￿?1 Siatanents 2023 Initmal use Oo¢y819Tr IO.. 509o6181.E1584￿BFALwWlBO6F1J STRATEGIC REPORT OUR PLANS In 2023. the Foundation's sole rncmbeT. Chanel Llmitrd increased its annual fu￿nCIal ¢Ontribution to th¢ Foundatt"on to Sl 25 million. As the amount of funding bas siwficantly increased by 19Q/o in 2023 compar&1 with the financial year 2022. the Foundation laun¢bed a project to r¢view th¢ long-tem) strategy. orgaDisational planning and gov¢rnanc¢ Stru¢tur¢ of the Foundation and streamline th¢ goverDaDce of Fond4tion Chanel, Inc. in the US ("U.S. Foundation,) and Fotthtion d'Entrepris¢ ch￿¢1 ('french FoundationJ in 2023. The proje was iDAtiated to make sure that the Foundation is able to achieve the mLximum impact and attain its charitable aims and objectives througb the most efficient organisational structure with the funding it rec¢ive5 from its sole member. This work will continue in 2024. In 2024. we will $tr¢ngthen our graDt-makiDg ¢8p4¢ities and Improve the quality of support we offer by.. op¢rationalising our n¢w BTant framework and ¢Dsuring our grant portfolios wo towards our 2030 objectives" enhan¢ing the capaciti¢s of our gran*e parth¢TS tlwougb iDCteased organisalional support and activiiies as part of OUT Funder+ offer. ptunDg impact dala feedback in order to adapt to patth¢r need4 and d¢v¢loping effe￿1ve M￿h¥￿]smS foT ¢ross-TegioDal leamitiE shatiD& We will develop our global adv4xacy. policy and research activitie4 by: ideniifying the stakeholdeT5 and issues we want to eDgage with and impact in each regioft, and ensuring OUT advrtacy work is both al)￿1 and adapted acTOSS ￿gI11n$. building collabotative res¢arcb partnersbips. We are committed to strengthening our organisation, in line with our values. as we continue to seo1¢ ID 2024, by.. continuing w develop and str¢amlin¢ our internal systetns and prrxesses. to support operational, financial. HR. r4￿rtill8 and dath collection functions. supportlng Intentior￿1. systematic learning #CTOSS the Foundatioffj 8nd with our grantee partners and peers" evolving our inclusive people strategy. and nuT￿n￿g 4)pportuniiies for growth and development for our p￿pIc. As part of the overall PToiecL we have revi¢w¢d the governance of the Foundation and, in particular. the evolution of the Board to eDsure that it can provide robust oversighi of the Foundation's funds and activitie5. In 2024. the Found*ion is plaDDing to establish Dew Board commili¢es (including an audiL f￿anCe and ii5k committ¢e) an4 as noted in tbe Trnste¢s' Report below. refresh part of the Tn￿le£S to ¢nsure that th¢ Board has th¢ rigbt balance of skn'll$. knowledge and experieJK¢. Finally. in 2024, we will d¢velop additional communications supw)rt to support the Foundation's Ye￿al and visual identity. launch of a n¢w w¢bsite. aDd to evolve OUT illlerDal alld exiernal ¢ommuni¢ations functlODS to f4kn advattce out mission. 12 temal use En¥4kip ID.. $09D6181￿158￿C￿￿BFAfM0￿I8efjFlJ STRATEGIC REPORT FINANCIAL REVIEW Raulis andfimancialposilion During the year ended 31 December 2023. the Foundation's totsl income amounted to USS128.0 million (2022.. USS106.6 million) with total expenditure of US$32.0 millioD (2022.. USS16.0 millioD). After accounting for the impact of foreign exchaDg¢ ￿1n5 and losses. the net movement iti ftthds duTing tb¢ period reflected a surplus of US$96.2 millio (2022-. USS90.5 million}. Income was derived entirely from the support of the Chanel group of compani¢s ("Cbanel Group,). Thi"s compris¢d of cash donations received totalliDg US585.0 Million (2022: USS20 million), pledged donations of USS125.0 million receivable (2022- USS85 million). and donatrd servic¢s and fxilities utilised during the year of US$3.0 million (2022: USSI.6 million). Expenditure on CP￿ritable activitie5 was compns¢d of 8rdnts expendlture to 50 organisations toialling USS25.9 million (2022= USS13.5 million) and support ￿$ts of USS6.1 million (2022= USS2.5 million). While Dot formally r¢¢obmis¢d &s liabiliiies &$ of year-end 2023. the Trustees also agreed in principl¢ on fukn grattt commitments in subsequent years totalliDg an estimated US$78.4 million {2022: USS40.6 million). The Foundation ended 2023 WAth totsl of US$216.6 million (2022: US$120.4 milllon). All funds are held on an unrestricted basis and can be used in %￿rdance with the Foundation's charitsble objects as set out on page 17 at the discrdion of the Tn￿lees. Ruer¥es As of the date of these financtal statements. the Trustees have not established a forn]al res¢ry¢s poli¢y. Given the Chanel Group's strengthened commitm¢Dt to the Foundation 2023. th¢ Charity CUTrently has ample Unrestricted fwids w m¢d all of ILS Current and anticipated fvture fmancial commitments while allowing for addilional flexibility. Confjrnied available funding as of the datr of approval of th¢s¢ financial staiements is in excess of CUTtent and future comtnilments by USS52.193.381. however. the Foundation expects to reduce this excess amount considerably as it apprn￿ new multi-year gTants throughout 2024 and beyond. The Cbarity is Dol reliaDt on fwidftising or public donaiions and is solely funded by the Chanel Group. Cash inflows and oufflows ar¢ a¢tively managed by the Foundation's fmance team througbout the Y￿1. As the FoundO1ion Continu￿ to expand its activities. this appToach will be continuAIIy r¢vi¢w¢d considering changes in risks. fmancial position, and long-t¢rm str#t¢gi¢ goals. The Tru51¢es uud¢rstand the Critical itnportance of reserves in ensuring the Charity's rtsilien¢e and capacity to manage UnfOr￿een financial challenges. Additionally. the TDJS￿S ore awar¢ of the potential that an ex￿SIVe cash reserve holding may not be aligned witb tbc Charity's impact aims. Any future decision regarding the establishment of a reserves policy will be mwJ¢ with thes¢ ¢onsid¢rations in milld. Going toncern The TNstees are satisfied that the Cbarity has sufficieDi nei assets io continue its operalions for the foreseeable future and meet all expected future financial ¢ommitm¢ihlS. tn theii assessmenL the Trnsttts have reviewed the ChaTity's balanc¢ sh¢¢¢ aDd onti¢ipated e cash inflows and outflows as of the approval date of th¢ finanr.ixl ￿ateMents. Th• 13 ternal use Dows*n ETrwtyJpp 10.. ￿1￿l.El5￿D￿BFALwWl8W13 STRATEGIC REPORT TThstees believe that the Charity is well placed to m4Dage its business risks successfijlly. It will have suffi¢ient fman¢ial resou￿¢6 io D3eei a]1 liabilities as they fall due for at le&8t the n¢xt 12 months from the date of approval of th¢5e f￿ancial statements based on cash on Jwid of US$76.9 million (&$ of 31 May 2024) and ￿ rettivable by yvdr-end 2025 of US$125.0 million. On this b&sis, the Trustees ¢onsid¢r it appropriate lo adopt the going concern basis of accounting in preparing the fllmncial ststements with JK> material unc¢rtain¢i¢s to disclose. Risk nwnagement Th¢ Trnstees have assess¢d th¢ pri￿1paI risks facing the Charity with a particular focus on those that would impede its potential for impa¢1. They ¢nsure th¢ In￿leMentation of mitigating actions in relation to each risk and monitOT their ststus o¢¢ordingly tlwoughout the RJSK AREA CURRENT MITIGATION A￿IoNs Impaet.. no impa¢t or adverse impact delivered by the Chatity's grantee pamers at)d the individuals and communities they serve Consultation with regional and local experts in desigDin8 prOgramn￿tic strat¢giYtwwJ FmarK*l 2023 Inlern•l use 00￿￿9n En¥*y• ID". S09￿187.E15840￿8FAf￿I1￿79a6F1J STBATEGIC REPORT The Tntstees Teceive comprehensive pre-reading materials in advance of each me¢tinE of the Board of Tntsiees, which enable infornie4 coosisteni and 8ppropriAte de¢ision-m¥kiDg by the Foundation. The Foundation consTrders the likely consequences on all relevant stskehold¢rs of the decisions and actions it take5. and decisions are carefijlly disC￿$sed wilh affected stskehold¢rs wherever pos5ibk. Partners In particular, the Foundation recognises the pot¢ntially traD5forniaiivc ¢ff¢d that aD awaTd can have for grantee partll￿S and the key stakeholders they s¢rv¢. A ¢ommiiment to w0￿1n8 iog¢ther is imperative to ensure the success of our pann¢rships. th¢ effectiveness of our Charitsble outcomes. and the continuing Teputation of the Clwity. This spirit of dialogue has been a ¢orn¢rston¢ of the Fowidation's work with granlee partners since its inception. and with the Foundation's recent incTea%e ID fi￿ding, we expect to continue to respond to the needs of our Eranle¢ parti)eTS. by PToviding a wider range of siipport that goes beyond fillancial fimding- foT example, wth¥ncing partner capabilities through organisational support. and taking a more active role in amplifying our grantee partners. voices througb Ats challn¢ls. Society and communltles Working closely with graDtee paTIDers in this way benefits the organisations themselves. b more criii¢ally. worn¢n and adolescent g￿lS of all backgrow)ds. The Foundation's grant- making supports and, by ¢xt¢nsion, eDriches and improves their lives, and the lives of their wider communities. The suppon of women aDd young girls also frequently CODtributes in paTa]lel, or indirectly. to positiv¢ ¢Dv1ri>n￿ts1 outcome& tn 2023. a number of grdDt partners attended Board meetings to provide context settitig of th¢ grani partners work to the Trustees. In addition, the Tesults of an external evaluation of three of our partn¢Tsh]"ps in Asia were presented to the Board by ITAD. the eva]uation consultsn¢y Environment EnVirot￿ne￿￿1 resiliellce is 4 k¢y component of the economic and social autonomy themati pillar of the FoundatioD'S stral¢gy. and the ChaTity supports appropriate opportuniti&s to co- address environm¢rttsl thall¢nge5 through its grantee partsier support. Please stt New Pillor FoLwirtg on Clirnale ReJilience section on page 6 foT additional infOrn￿tIon on the new partnerships f￿ll$ing on climate Tailience. Sole member The Foundation is a ¢haritsbl¢ company limited by guarantee and ibeTefore has no shar￿. The Foundation's sol¢ member is CbaD¢l Limit¢d a company regjstered in England and Wales under con)pany r¢gistra¢ion nurnber 00203669 with its registered office at 5 Barlow Place, t￿ndoll, WIJ 6DG and the pareni compaDy of the Chanel Group, which Provides the funding of the Charity. The Foundalion provides regular reporting to its sole member, throu￿ annual aDd ad-hoc r¢portin& to ensure that it has clear visibility of th¢ oUt￿me$ of th¢ Foundation's work. The sole member also has visibility of the Charity's work through the presence of TTUStees who also hold senior leadership mles at Chanel Limii¢d. Fondation CHANEL. ReFortarhY F￿a￿lI Statom￿ts 2023 16 Internal use Efiwbs•10." 91gD6IB1.E15&4DOA4FAI￿g*D1wlJ STRATEGIC REPORT People The Foundaiion has no wnployees. Instead. granl and clwity admiDiStratiots are undertakeD by ¢mploye¢s of the Chanel Group wbo are seconded to the Charity and doDated iD-kind to th¢ Cb8rity. Th¢5¢ Staff ar¢ fully supwrted by the employee infTastruclu￿ of tbeir Cbanel Group employer. The Foundation provides regular learning and development training sessiotis on ¢Tiucal fo¢us areas for the Foulldation to those staff seconded by the Chaoel Group as set out on page 6 "L¢arning and impact". The Foundation also holds two in.p¢r50n semiDars ¢a¢h y¢ar to discuss strategy. opeTations as well as critical focus areas sucb as int¢ts¢cti07hality. Fofidotim CHANEL. Re4ts1 a￿1 Stawir$ 2023 Ihlemol use DOCLW En¥dope10.. SCIJ06I81￿1$B4oO￿A￿D￿l6Wl3 TRUSTEES. REPORT STRucfuRE, GOVERNANCE AND MANAGEMENT Structhre Th¢ Foundation wa5 incoTporated on 2 August 2020 as a company limited by guarantee. registered in England and Wales und¢r cornpaDy registration numbeT 12786875. and registered as a ¢han"ty with the ChaTity Commi55ion fvr England and Wales on 30 July 2021 und¢r charity Tegistration nwnbeT 1195353. Ji is governed by its Articles of Association dated 26 January 2021. As set out on page 18, the sole member of the Ch8rity is Chanel Limited. The Foundation worked in clos¢ collaboTatlOD with sister foundations. the FT¢Dch FoundatioD (fouttd¢d ID 2011) #nd th¢ U.S. FouDdation (foundcd in 2016). Both hav¢ similar charitsble purposes, mission Strdt¢gy. bul with th¢ir own gwgrdphical f(Kus. Further d¢tsils OD this connection are ouilined in note 13 "R¢lat¢d party transactions" of the finan¢ial statements and an update on the sister foundations is provided below in note 14 '%ubsequent Events-. Objects IMdpurpose As ouilined in ILS Arti¢les of Association. th¢ FouDd#tion's ¢h•ritabl¢ objects aff. for the publi¢ benefit. (i) the relief of need amongsi wom¢JJ and wrls caus¢d by dI￿rimItIation on th¢ basis of se4 financial disadvantage or other forn)s of disadvanTage and (li) such other purposes as are regarded as exCI￿81ve1Y charitable under the law of England and Wales. To fitrther its objects, the Foundation is a grknt-makitig cbarity and sup￿rtS PUTposes aligned with those list¢d ID th¢ Ckniii¢s Art of 2011. In accordance with its gr4Dt-making policy set out below. it makes grants to support a wide range of ¢haritable proje￿. initiatives. and orgaDisatioDS for the benefit of individuals and communiiies. lis ecosystem of grantee partners and peers, and society as a W]￿le. All grants aw4Tdul sin¢¢ th¢ Charity's incorporation bave furth¢r¢d these charitabl¢ purp05¢5. The Tn￿tee$ have complied with tbeir duty to hav¢ thi¢ r¢gaTd to th¢ Cb8Tity Coti)mission's guidan¢e ott publi¢ benefil in awardiDE th¢s¢ ￿ts. Granl-mukngpolicy The Foundation team engages in in-depth prospection to id¢ntify potential 8rant¢e partners. Programmatic staff consult with regional and local getjder and philanthropic experts and other funders. gather dat4 conduct landscape analyses and research, and perforn) other rieldwork to devise locally relevant strategies that inforni the Charity's grdnt-rnakiDg approach. The Charity aims to build long-terni, ttw-blsed r¢lationskn"ps with its granie¢ parlners. N¢w grant proposals ate d¢veloped ID Gollabordtion with the poteDtial partn¢t oiganisations. Before presenting a grant Proposal io the Trusiees for cotLsideration, prO￿ammatiC staff conduct robust due diligence with regard. among other things. to.. establishing that grant purposes are charitable" ensuring the le8alAty of making granls to the prospective partners", and uThdeTstsnding the governance. operating stsvcrure. and intended impact of the organisation andlor project. The Charity does not award grants to individuals. Fondation CHANEL. Annual Rer*M Sktwr*)ts ZOZ3 18 Interna use DNA44n Envotrjw ID." $0906IBl.E15UtWAtsM)9￿lbI6FI3 TRUSTEES, REPORT The following are imFK)rtattt ¢onsid¢rtitions to the staff and Tn￿teeS when assessing gTanl proposals: the aDti¢lPtyted so¢io1 ￿d enviTorllnental inumct of the grant. the potrDtial for learning afforded by th¢ ￿1￿(. and the history of the organlsation andlor projcct to b¢ funded. Once a grant is approved, the Charity drafts a gtant agrttment in discussion with the grantee partner. As most grants ar¢ Tnulii-ye4r ¢ommith)enLS (average is 3 years), atmual reporting milestones arc a￿ed ¢0 provide an update on granl progress and ongoing learniDg and ¢D5ure that fuDds hav¢ b¢¢D us¢d for th¢ agreed ¢haritable purpose. The Foundation retaiu5 th¢ righi to pause or cancel any parth¢rship. and ¢ew pa￿nellI of fither grants, should the partner noi act ia 4c¢ordatt¢e wilh the tern)s of the grant agreement including bringing the FouD(tstion iato potential diwepute. TrI￿letS In June 2024. three trwtees retired and three new tn￿teeS were appointed. The names of the Trnstees who setved during the reporting period and up to the dale of thi5 ￿Port ar¢ outlin iti the legal and athninistrative details on page 3 of thi5 T￿￿tr¢s. r¢tM)rt. As at the date of this report, the Board of T￿￿te¢S is comprised of seven Tn￿le¢s. four of whom are senior leadership employees of the sole member. Cbanel Lirniied - one of wbom is Kale Wylie. Global President of Fondation CHANEL th¢ Chair of the Board of TnLStees, and three of whorn aTe independeni Trustees. Re¢rnitmthÉ appoinrmeni The appoinlJnent of Tn￿tee5 is gov¢rned by th¢ ChaTiry'S Articles of Association. As al the date of thi5 report th¢ thre¢ Inde￿ndent Trnstees were Tecruited by the existing T￿￿te¢S and appointed based on th¢iJ ¢xteL%ive. diverse expertise and range of skills in tbe fi¢lits of philanthropy and gender equaliry. as well as their experience on charity boards 89 Chair or trust¢¢. Trusie&s are appointed to office for three-year tern￿ and may serv¢ a maximum of three consecutive ten￿. None of the Trustees receive Temun¢raiion witb r¢sp¢¢t to their services as a Tn￿tee. In accordance with the Articles of Association. t)ew Trnstees may be appointed by ordinary resolulion of th¢ M￿nber or by decision of the existing Tn￿te¢s. Induclion and irdining All curTeDt and new TTUStees Undergo a thorou￿ induction process. They receive an induct&on pack comprised of the Charity's main goveminE documents. an overview of programmatic prioriti¢s and $trat¢gi¢5, fJnan¢ial position and legal consAderations. including copies of relevant Chatity Commission guidance. Additionally. any newly appointed Trust¢es engage in a serics of introduciory training $¢ssions with existing Trusiees and Foundation staff. The Charity manages conflicts of ititer¢st by requiring ail Trnstees to declare their board positions at other organisatiotts aDd inter¢st in any potential recipient of a grant and slep out of any subs¢quent dis¢ussioos prior to ooy decision belng made io respect of which they have Conflict. Fondation CHAN&. Rwt &ater￿ts 2023 19 Intern￿ use tsJoJsW En%*b2pe ID.. $05081è1.E1SUDDMFfvW%1018tIF13 TRUSTEES. REPORT The Trustees meet at least three times per year to agree on the strategic direction of the Clwity. review grant proposals, award grants iti line with the CTrthrity's grant-rnaking policy. set out above and assess and monitor the Charity's fmaDcia] p)sition and key Tisks and opporrunitie& The Tn￿leeS delegate responsibility for day-to4ay mana£¢ment of the Charity to the Global Head of Fondation CHANEL. and other higbly qualifjed staff. The President of Fondation CHANEL and Global Head of Fondation CHANEL share a management update at each meeting of the Board of Trustees. All staff are employees of the Chattel Group and ￿ runuD¢r4t¢d ill ac¢ordaD¢¢ With the Chanel Group's compensation policies and pra¢ti¢¢s. Th¢y do not r¢¢¢ive diT¢c¢ compensation from the Charity outside of expense reimbursements incurred in relation to C￿lD8 out activities on behalf of the Clwity. Staff and office facilities costs of the Foundation are borne by the Chanel Group and are recorded as donated services and facilitie$ offset by aD equivalenl expense in the financial ststements ￿ further described in notes I, S. and 12. Relaledparties R¢lat¢d pthy r¢lation5hips ar¢ furtheT described on page 17 of this Tn￿le¢s, report and in note 13 "Related patty trallsactions" STATEMEFrf OF TRUSTE&S' RESPONSIBILITIES The Trustees are r&spoLsible for preparing the Tnjstees. Re￿)rt (iticluding the strategic report) and the fmancial ststements An accordance with United Kingdom Accounting Standards, comprising FRS102'The Financial Reporting stsndard applicable iti the United Kingdom and Republic of JTeland-. and applicable law (United Kingdom Generally Accepied A¢¢ouuting Practice). The law applicable to ¢lwities iti Englaod & Wdes rwuir¢s th¢ Tnstees to prepare fuwi¢iJl statements for each financial year which give 8 twe and fair view of the state of affairs of the Charity and of its income and expendikn during thai perlod. In preparing the fthan¢ial stst¢m¢nts. th¢ Trust¢¢5 aT¢ Tequwed to: sel¢¢t suitabl¢ a¢¢ounting poli¢i¢s and then apply them consistelltly. observe the methods and prin¢iple$ iti the Cljarilies SORP (Stst¢m¢ni of Recommended Practice). make judgments and estimates thai art rca50Dablc aDd pnHI¢Dt" stale whether applicable United Kingdom Accounting Stsndards (FRS 102) have been follow¢d. subj¢¢t io any mat¢Ti41 depart￿ disclose4J and explaiDed ID the flnancial statements,. attd prep￿ the f]nan¢ial st4iemeDts on the going CODcern basis UDless it is inappropTiale to presume that th¢ Charlty will ¢oniiDU¢ ID opeTation. The Truslees are responsible for keeping ad¢quaie a￿oUnting wrds that suffi¢i¢ntly disclose with reasonable accuracy al any time the financial position of the Clwity and enable Fond•lion CHAN&- RepJrt aThJ Slakmts 2023 20 IDtemal use DtKusb* EnwW10.. 509C*181.El584D￿￿FAfmD110I￿￿lJ TRUSTEES. REPORT them to ensure that the financial slatements comply with the Companies Act 2006. They are also responsibl¢ for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the mainteDance and integTity of th¢ Charity's website. Legislation in the Uni*d K￿gdoM Eoverning the preparatton and dissemination of fuwicial si•t¢ments may differ from legislation in other Jurisdiciions. tn so far as th¢ Trusi¢es are awaTV. th¢r¢ is no relevant audit infonDtttion of which the Charity's auditor is unaware: and the Tn￿leeS have tsken all steps thai they ought io bave taken to make themselves 4war¢ of any relevant audit information and to establish that th¢ Charity's auditor is aware of that infornmtion. AUDITORS The auditor, Ernst & Young LLP. is deemed to be reappointed in accordance with section 485 of Companies Act 21I)6. This Annual Report (including both the strategic report and Trusiee5' Teport) was approved by the Board of on 19 July 2024 and sigDed on their Ixbalf by. Kate Wyli¢ Chair of the Board of Tn￿teeS and President. Fondation CHANEL F¢)ndation CHANEL. knryAI Repyt aTrJ ￿narA)I %ateovts 2023 21 ifflemal Use DoBW*3n En¥dcw ITr. ￿￿6161￿15840DA.BFALw￿0I88SF13 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FONOAnON CHANEL Oplnlon We have aLKlited Ihfr financHI statements of Fondation Cha￿1 for the year ended 31 December 2023 which compfi58 Statement of financtal actiwties. baLqn¢e sheeL $latemenl of cash flows and the related noles1 to 14. induding a summary of Signif￿nI accounting poIKies. The financial reporting framework that ha5 been applied in their preparation 1$ applicable law and Unrted Kingth)m Accounting Standards (Untted ￿ngdorn Generally Acceptsd Accounling Practice). including FRS 102 The Financial Reporting staThJard applicable in the UK and ReputAic of Ireland". In our opinion the financial statemarts: give a irue and fair view of the state of the Cl￿ritable company's affai￿ as at 31 December 2023 and of ts in¢omin9 resources aTrJ application of resources. in¢ludiTrJ its income arKI expenditure. year Ihen ended.. have been propwty prepared in ac￿rdance *ith United lfjngdc¥n Ge￿laI￿A¢op1ed Accountsng Practice; and have been prepared in Xc(￿tsnce wilh the requirements of Ihe Cryryanies Ac¢ 2006. Basi5 for opinion We conducled our audit in accordartt wilti Intemational Standards on Auditing (UK) {ISAs IUKI) and applicable law. Our ￿Sponsibl1rtieS under those standards are frjrther described in the Audilorfs responsibilths lor the audit of the financkgl statements sedion of our report below. We are indeper￿ent of the charitable company in accordance with the ethKal requirements that are relevant to our audii of the financial slatements in the UK. induding the FRC'S Ethical Standard and we have fulf￿le0 our other ethKal responsibitsties in ¥c￿rda￿e wth these requirements. We belleve that the au(iit ev¥Jence we have obtalned is Sulf￿nI and appropriate to provKle a basis for our opwiion. Con¢luslon$ relating to going conc•m In auditing the finawal ststements. have conduded Ihat the trustees, use of the g￿r￿j concem basis of accounting in the preparakn.on of the financial slalements is apwopriate. Based on the w)rk have perfixmed. we have not thntfftd any material uncertainties relating to events or coTrJitKJns that. indimdually or co1￿￿ve1y. may cast signrfi(¥nt doubt on the charilable company's abilty to c￿linUe a5 a going corKem for a pe￿d of twelve months from when the financial slalements a￿ authorised for issue.. Ir resp)nsibdikn"&s and the reSp￿sIbl￿1e¥ of Ihe trustees with to goiThJ rJJncem are described in Ihe rdevant sedions of this reFW)rt. However. because not all future evenls or conditions can be predicte(l. this slatement is nol a guarantee as lo twstee's abdity to contsnue as a going conc*m. Oth•r Inforniation The other information comprises the infom)alion induded in the annual report. other than the financial ststements and our audrtor's report ther￿n. The Irustees are responsible for the other irrf¢xmalion contained in the annual report. Fondation CtrLINEL. An￿￿ ReF¥yt Statawts 2023 22 Intern* use INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FONDATION CHANEL IContinu•dl Our opinion on the financial slalements not cover the other informatKJn and. except to Ihe extent otherwise explicty staled in Ihis repori we do noi exFW any fomi of assurance concluwon thereon. Our responsibility is lo read the other inf(Thatw and. in dryThJ so. consider ￿ther Ihe other infomation is matefially inconsi8tenl finanaal statements or our kntswbèdge obtained in Ihe audit or otherwise appear5 to be materially misststed. If we identfy such material inCon￿stenC￿ or apparent material misslalements. we are required to determine whether this gives rise to a material misslatemenl in the financ4al slalemenls themselves. Ir, based on the w(wk we have perft)rn￿. we condude that there 15 a material miss181ement of the other information. we are required to rewt that fact. We have Mthing to report in this regwd. OpiDion on oth•r matter prnscribed by the Compani•$ Act 2006 In our opinion, based on the work LThlertaen in Ihe c(yJrse of the aud￿. the infcffiialiwE given in the trustees. repor( which wKludes the directors, report an¢J the strategic repryl kyepared for the purpose of company law. for the financial year for whith the financial statements are wepared is consistent wth the fIn￿r￿al slatements: and The strategic report and the directors. rewrt included wthin the trustees. report have been wepared in accordance wrth appI￿a￿e legal requirements Matters on which ￿ ar• wuir•d to report by •xception In light of the knovAedge and understsnding of Ihe charitab￿ company and ils envrronment obtained in the course of the audil, we have identsfied malwial misstatements in the strategic report or the tntslees. reFKyL We have nothing lo report in respect of the folloWr￿ matters ¥thhere the Crynies Act 2 requires us to report to you if. in our oF¥nb)n'. adequate 0￿￿untIrfj records have not been kept or retums adequate for aLMltt have not been received from branches not visited by us.. or Ihe financial statements are not wi agreement with the accounMg recwds and retums: or certain disck)sures ol tru5tees' r￿uneratiOn spe*J by law are noi made: or we have not received all the wifomialion and explanalirms we Tequre for our audiL Responsibilitigs gf trusts•s As explained more fvlty in the trustees. resP￿sIlVIrtlfrS statement set out ￿ pages 20 21. the Iruslees (who are afso the directors of the charitable company for Ihe purposes of company law) are responsible for the preparation of the finanrAal statements and for being satisfied Ihal gNe a true and fair view, and for such intemal ￿trol as Ihe trustees determine FondatvJn CHAN&. knnual Rwi arbj 2023 23 kntem•l INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FONDATION CHAPEL {Continu¢d) is necessary lo enable the preparation of finanual stslernents that are free from malwial misslatemefit, whether due to fraud or errrff. In preparing ihe financial statements, twstees we re¥thsible fc* assessing the charitable compan￿$ abilty lo continue as a going concem. disd05ing. as applicable. matters ￿lated to going concem and u51ng the goirrfJ concem basis of acc4)unting unless management erther intends to I￿uldate the charrtable company or to cease operations. or has realistic aknalive to so. Audblor's r•$pon$ibiltti05 lor the audit of the financial statements Our objectives are to obtain ￿a$ortable assurance about whether the finarKaal statements as a W￿le are free from malerisl mi5slalement. whether due to fraud or error. and to issue an auditor's report that includes our opini￿. Reasonable assurance is a high levo101 assurance. but is r￿1 a guarantee Ihat an audit conducted in accordance with ISAS IUKI wll always detect a material misstatement when it exists. Misslalements can arise from fraud error and are considered material rf. individually or in the aggregate. they fx)uld reasonably be expected to influence the economic decKsir￿S of users taken on the basis of these financial staleffwts. Explanatlon as to what extent the •udft w•s c¢Mtslderedc*pable of detectlng lffegularitie$. including fraud Irregularities. including fraud. are Instan￿ of nOn-com￿lanCe wth laws and regulalions. We design procedures in line wth our responsibdit*s. 0uu1￿￿ above. lo detecl irregularities, including fraud. The risk of not detecting a material misslatenwl due lo fraud is hIg￿r than the ri$k of not detecting one resulting WTor. as fraud may invofve deliberate concealment by, for example. forgery or intentional mi5represenlations. or through collusion. The extenl to whith our proc¢(lures are capable of detecling irregularit*s, induding fraud is detaile(I below. However, the primary ￿SPOnsibl11fy for the prevenlion and detection of fraud rests both those tharged with govemance of the enbty and rnanagernent We obtained an uThJerstanding of Ihe legal and regulatory frameworks that are applicable lo the tharitable company and determined that the most sMJnificanl are Charities SORP {FRS 102). Accounling and Reporling by Charilies. C(Mnpanies Act 2006. Charities Acl 2011 and His Majesty's Revenue and Customs {HMRCI. We undersiood Fondation Chanel complwr¥J with those fwneworks by making enquiries of management and those resFonsible for the legal and compliance procedures. We ￿rOborated our ewuiries Ihrough our inspectKin of the board ffmnules as well as u)nsideratI￿ of the results of our avdrt t￿CedureS across ihe entrty. We assessetj the susceptibility of the charrtable company's financial statements to material misstatement. including how fraud rnighl occur by reviewing the charitable business purwse of grant and operating expendiiure. as well as performed management irNuirbes of ts procedures to r*k of material misslatemenl due lo fraud and error. Based on this underslanding we deggned our audrt prc¢edures to idenbfy noncompEian¢e wth suth laws and regulab'rffis. Our Kyocedures iivolved rewewirKJ legal and prOfesS￿n81 corresponderKe ar￿1 o)rrot•)rating with management inquiries. A further de￿ption of our reswnsibilitEs for the audit of the fnan¢ial ststements is k)¢ated on the Financral Reporting Counol's website al httpsJfvthVM.froorg.uklauditoTsresponsitMliti8s. This descfiplton forms part of our audit￿S rep*xt. FoThdatitsn CHAN&. knnu& ReF￿rt a￿1 FtriarDI Stat￿￿J￿ 2023 24 iemal Doco5W £Th￿￿)￿l0.. 509o61BI415&4C4)A-BFAf￿lW￿1Bvl3 INDEPENDENT AUOITOR'S REPORT TO THE MEMBERS OF FONDATION CHANEL (Continued) Us• of our r•part This report is made solety to the charitable companrfs members. as a bcmfjy, in accordance with Ch8Pter 3 of Part 16 of the Compan￿* Act 2006. Our aLKlit has been undertaken so that we might sL￿e to the chantable company's members those matter5 we are required lo state to them in an auditor's re￿rt and no other purw)se. To the fullest extent permitted by law, we (lo not accept or assume responsibility lo anyone olher than Ihg company and the CoMpan￿S members as a t￿y. for w a￿lt ThThk. for this rewrt or for the opinions we havtr formed. Caroline Mulley {Senior ststutory auditor) for and on behaw of Emsl & Young LLP, St*uWAuditor Newcasde upcffi Tyne 22 July 2024 Fondation CHA￿. An￿￿ Stafrrnts 2023 25 Irrtemal use Dor4J8vJn Efi*knp•10." 9)9O61B1.E158-400A4FAf￿A09Kl1Be6FI3 statement of financial aCt￿￿tieS For the year 31 2023 202J Its22 128mlA)3 ., 12 I￿￿17.741 41 By•r￿nUTe f￿r. 25910fi96 .' 6lJ31.776 31.915.472 13520.1 2.457.130 15977211 4.5.6 IS￿75￿1 4x6 IS9￿ ' 9•239.971 go￿70￿43 14917 137.422 120J94J92 ' 21$ 29046J84 129 394 Atl income and ¢xpenditure ar¢ deriv¢d from ￿ntInuIng (yrations a￿1 relat¢ to UJ]T¢Strid fimds during the reporting peri￿. The $tstemettt of f]narAcial activities includes all gal￿$ and losses recognised during the reporting period. The notes on pages 29 - 38 form part of these fmancial Statern￿ts. FondatK¥n thANEL. ReFQt 2023 26 Internèl use DODJ5N￿ ElwebJ￿ ID.. $0gC*181.E15&4DOA4FAfMowiB86F13 Balance sheet As of 31 December 2023 202) 2Q22 00.￿0 95￿).￿X*) 6.747 361735￿66 121943073 Tithl •rt Ilabllw 10 64Bffj81 12• 394 392 03 120 394 92 216ts34JBJ 210 34J6Y 120J94J92 120JYJ92 The notes on pages 29- 38 fonn part of these f￿ancial statcmcnts. The financial ststernents of Fondaiion CHANEL (registration no. 12786875) on pages 26- 38 were approved and authorised for issue by the Board of Trust¢¢s on 19 July 2024. They were signed on its behalf by. CIF4SC31EOA6427_ P.B. Blondiaux Director & Trnstee Fofidation CHANEL. 2023 27 Inttrnal use oooJ￿gn En¥olw4 ID". g)906181415840DA.8FALWWI8W13 Statement of cash flows 1% of 31 C*dr*er 2023 2123 2122 97 14 47 IIL 56.19•J42 36m5 #2 27M14.147 .121.119 35 Note.. (l) Cash balatt¢e on 31 D¢¢¢mb¢r rtllxts unreciyised loss due to forei8n exchange movements on St¢rliog Fondation CPIANEL. F*￿ar¥j strt￿￿ts 2023 28 Intern* use Envew ID.. 509D6181.E1s&4DD￿ANO￿*D1B￿13 Notes to the Financial Statements i. PRINCIPAL ACCOUNTING POLICIES The principal accounting policies applied ID the Pr￿aratiOn of these finaD¢i41 ststments are set out below. Basif ofpreparation The financial statements have been PTepared under the historical cost convention and in accordance with UK Generally A¢¢eptrd Accouniing Practice and other applicable stsndards including the Charities SORP FRS 102 (second edition- October 2019), the Financial ReportiDg Stsndard applicable ID tb¢ UK and Republic of Ir¢land (FRS 102), the Companies Act 2006. and the Charities A¢t 2011. The CtrLarity constirntes a public benefit entity &8 defmed by FRS 102. The financial staternents are presented in USD and rnunded to the neaTest dollar. Any transactlODS undertaken in foreign cuTr¢Dcy are translated itito USD. the pred0ml￿t ¢urren¢y in which the Cbgriry re￿iVeS income and expend8 cash and therefore both its functional and p￿se￿￿tIon curr¢ncy. Reporlingperiod These financial s¢alemetLts have be￿ prepared for the year endd 31 D¢￿ber 2023. Income recognilion All income is recogDised in the statement uf f￿all¢la1 activilies wb¢D ¢b¢ Clwity is legally eDtitl¢d to th¢ iD¢om¢, the amount can be quatttified r¢liably. any ¢onditiOnS for rettipt have been met, and receipt is probable. Income is comprised of monew donatiODS and donated services and facilities. Monetary donations #re Teco8nis¢d a5 income upon receipL Jn th¢ event of monetary donations pledged but not yet received. the amount is accrued for as income where entitlemeDt ha5 be¢D establish￿ and r¢c¢ipt 15 CQDsidered probable. Donaled servic¢$ and facilities repr¢5cnl the value of suvices borne by Chanel Limited duriDg the re￿nitig period iti providing seconded staff. office facilities. and office equipment to the Clwity. They aT¢ valued at actual cost al￿ r¢cogDised in the fwalicial 51at¢ments as iD¢ome offset by an equ￿ corr¢sponding amount as expendith when they are receivable and quantifiable. Expendilure r¢eognilion Liabilities are recogttised as expenditure wben there is a legal or constructive obligation committing the Charity to the expendiDJre. the amount of the obligation can be quantified reliably, and settl¢ment is probable. All expenditure AS accounted for on an accruals basis in the period in which it Is incurred. Expenditure is ¢omprisd of ¢hArit#ble grArtt-making activity as well as all support ¢osts relat¢d to grant-rnaking and the overall administration of the Charity. Fth1d&th￿ CHANEL. Rqy)rt arxl Statts7￿ts 2023 29 Internal use Oo¢u¥w En¥dy10.. 9YJ06I8141SB4OOA-￿1I￿lD#ADI&llGF13 Notes to the Finanaal Statements GTants are re£o8Dised as payable wh¢n th¢r¢ is # legal or constswctive obligation to pay estsblisbed by the TDJSt¢e5' approval of the grant. signature of a grant agreement. and the recipient's fvlfilmeni of any related conditions. a5 applicable. Any award5 Tn¢ding these recognitiOD Criteria but not paid at th¢ end of th¢ re￿rtIng wiod ar¢ a¢¢m¢d for. Most of the Clwity's grants are multi-y¢or ¢ommitmenlS. Releas¢ of funding in subsequent years is conditional upon satisfactory receipt of annual reporting on grant progress and confirni&tion that ￿ant funds have b¢¢n us¢d only for the ¢haritsbl¢ purpos¢. Grnttts subjecl to futhre conditlODS which are Dot reCo￿lised as liabilitias at year•end are di￿lOSed LS future graDt commitments in note 3. Cash at bank Imdcayh in Imnd Casb at bank and cash in hand consists of all accounts that are available on denmnd. Debtors and creditor$ Debtors and oth¢T re¢¢ivables 4r¢ TecO￿lS¢d as an ass￿ wb¢n a past ev¢DI rc5u]ts in a pr￿¢nt obligation that will Tesult in ihe Charity receiving funds from a third party and th¢ r¢¢eivabl¢ amount c￿ b¢ quantifi¢d reliably. Debtors are T¢CQ8WSed at their aDticipated settlement amount. Creditors and other payables are reCO￿l￿j as a liability wh¢n a post event r¢sulis iti 8 preseDt obligation that will result in transfer of fijnds to a third party and the amouDi payable can be me&gur&l or reliably estimated. Creditor8 ore recogttised 41 their anticipated settlement amount. Foreign currency tra￿lation Assets and liabilities An forei￿ curren¢ies are translat¢d itito USD at the Closing exchange Tate as of the balance sheet date. Foreign currency transactions are translated into USD at the closing excbange rate as of the transa¢tion dat¢. For¢1￿) ¢x¢h4n8¢ gains loss¢$ rtsuliing from the settlemeDt of such transactions and from the traoslation of monetary assets and liabilities denominaied in ¢urr¢ttcR¢s oth¢r than USD at year-end exchange rates are recO￿lSed as other gains and losses and hence are considered in arriving at the net movement of fimds. rtuation Fondation CHANEL is a registered clwity and therefore has Do liability to income tax or ¢orporation tsx on inGome d¢Tiv¢d from its clwitsbl¢ activitie5 as it fa115 within the various exemptions available to registered charities. Any irrecoverable VAT is r¢fl¢¢t¢d in ¢xp¢ndiDW¢ amounts ¢hw8ed to th¢ sts¢em¢ni of financial activities. Crirical accounting Uiifftdtu andjudgernenLf In tbe application of the Charity's accounting polici¢s descriid elsewh¢re in note l. the Trustees are required to make ostiD)at£s. judgements. and &8sumptions about the carrying Fondation CHANEL. Re¥ts1 stat￿￿5 20Z3 Ifftter￿ use D(ts*n Envolw ID." 509D6181￿15B4DD￿I￿ADYI￿I￿E6E)J Notes to the Financial Statements amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions aTe blqed on hiS￿rica] experience and other factors tbat are CA)nsidered to be relevant. Actual Te5uIts may diff¢r from th¢s¢ &Stima￿. Estimates and assumptions are reviewed on an Ongoing basis. Revisions to 8¢counting estimates are recognised in the period in which the ¢Slimat¢ is tevis¢d if the revision affects only that perio￿ or kn the penod of th¢ revision and ￿tUre periods if the Tevision affects both current and future periods. The TTUStees do Dot COD5id¢T tb¢re arc any criri¢al judgeD)ents or sources of eslimatlOD uncertainty requiring disclosure. Fmnd accounting All funds are held on at) ut)restri¢ted basis and can be used in accordance with Fondatio CHANEL'S charitable objects s¢t out on pag¢ 17 at th¢ dis¢retion of the Tn￿lees. Assesment ofgotng concern Th¢ Trust¢es are satisfied thai Fondation CHANEL bas sufficicnl assets lo ¢ontitiue its operntions for the foreseeable futs￿e and rn¢￿ #ll ¢xpect¢d futtwe financial commitments. A¢¢ordingly. the fmancial statements bave been prepaTed on a going conc¢Tn basis. tn their #ss¢ssm¢uL the Trusiees have reviewed the Cbarity's balance sheth and yntiCiP8ted ture cash inflows and outflows as of the approval Ot¢ of the fmancial slatemeDts. The Trust¢¢s b¢li¢v¢ that th¢ Charity is well placed to manage its business risks Succ￿5fi￿IY aod that it will have sufficient financial resources to Jn¢¢t liabilities as they fall due for at least the next 12 months from the datr of 4)proval of these fmancial statements. Based on this. the TrusÈ¢s ¢onsider it appropriate to adopt the going concern basis of ac£ounting in preparitig the f￿anCIal 5tstem¢nts with no mat¢rio1 wi¢ertAinti&s to disclose. 2. DONATIONS 2•23 2022 125mOmO 2241373 779MO 121.•21.003 105.Cts) 1J)41295 101647.741 Fondation CHANEL. aTrJ Stat¥Thwts 2023 31 Intern￿ use D•pJ$w4ft ID S0￿0181.E1S￿DwACW9ADlwlj Notes to the Finanaal Statements 3. GBANTS EXPENDITURE Tot¥1 202) 2022 uss 1,467,033 6(￿J.￿o fyan¢ portFol10 & rgdpl•nt rren 1.997,693 3.CiIOALK) 664.743 450.¢)00 3.000.1)00 12￿.1)(￿1 Intvrots 150.C 1xK$.￿) 29).(XJO pahfiTr FW Intwn*kYd 53.079 210.000 339.355 27.693 1.469.891 1,C¥)O.( 2.717.389 5.(W,( 1.000,0￿) 3.[￿.0￿) 1NCKI,OQO 3.1)03,546 9)5.0 8M.821 333,334 300,000 1,7th).( .000 g).cno 170.fM)O .000 Ctse S4pJt120231 608,403 arde WxM/wAia 250.000 190.030 750.078 150.LK 511.LXXI 2.£￿￿.000 1.345.996 280.024 .(￿0. 211.000 IAra Ata 425.CKIO 240.rjxi 267,332 180.C 19).000 700.¢XK) 170,CTrJ 2277,185 411.785 322,336 450,000 Fknt 144.( 168,OUO 120,OLM) 345,149 PaAc Lirrit¥J 150.iJJO 284.701 4.000.000 162.473 140,C•Mt*2023 31 Ckn*q2V24 31 CWt•2025 31 Z026 31 C*irtff 2027 Tth 24M7 2Q.476M12 14J27202 8WA79 4.179.173 1267.464 4Q,6t4.1Q9 1267.465 54 717 142 Fuhtye grant commitments will be deemed payable 8ttd re¢o8nised as li4biliti¢S in &c￿rdanCe with the rttognition policy set out in note l. All future commitments will be fimded with ash in hand or pledged donations from Ch8n¢l Limited. 4. SUPPORT COSTS zoza SJ25.893 65572 43.111 2J63.714 63th) 29￿57 57.130 All support costs are incurred in relation to Fondation CHANEL'S charitable aclivities since no fundraising is undertaken by the CTrtarity. 10 2023. organisational set up costs were incurred to support the Fondation during this pmod of growth, r¢sulting in higher than usual supN)rt costs. 5. STAFF COSTS 2023 2022 854.783 122.567 25ffj18 30&27 295.170 105566 230981 Tthal All Fondation CHANEL sthff are ¢mploy¢d ond rmutKrnt¢d by th¢ Chan¢1 Group in accordance with its compensation policies and Practices and seconded to the Charity on either a full-time or part-time basis to support ryt portfolio management. Adminislrntion. and overall manag¢ment of tbe Clwity. AD estimaie of the appropriate proportion of th¢ir lime dedicated to the Charity 15 included within donated s¢rvic¢5. Thi5 is true for the Global Fondation CHAN&. RepM aThl Sts[￿ts 2023 34 Internal use DocJJ¥wJn ID.. 509061B1.E1w4DDmFAM)g￿1￿1j Notes to the Financial Statements President of Fondation CHANEL, where costs incurred on person￿1 aDd donated by CHANEL are in¢lud¢d in th¢ table abov¢. Th¢ Tn￿te¢S have reviewed and ¢on¢luded that none of these costs relate to their Tole as a Tn￿lee and so have not been disclosed as Trnstee remunerdtion. 6. GOVERNANCE COSTS 2023 2•22 65.972 43.111 63.860 29.557 1.701 1.479 96,596 Tr￿ & rf*Btir TL*41 10•.413 Governance costs are included within support costs. No Trustee received any remuneration from Fotidatioti CHANEL or a r¢lated party during th¢ r¢wJrting period fot their services as a Tn￿te¢. Included within 'travel & meetings. is travel and accommodation expense totalliDg USS330 (2022.. USS887) ¢ov¢red by the Charity related to Board tDeeting attet)danc¢ by 00¢ TNste¢. 7. DEBTORS: AMOUNfs FALLING DUE IN MORE THAN ONE YEAR 2023 2022 Tdal 30.000.000 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 95.Offj￿ 85.000. 6,747 15.007.101 TIAal 95.005.000 The current debtors balance ptim¥ily ¢oDsists of pledged donations from th¢ Chanel GTOUP anticlpated for receipt in 2024. Fondation CHANEL. knnLd FkrKyi •*J Stsknlts ZOZ3 35 Intern41 use 10". 5o9rj31&1￿1504oDA￿FA[￿￿IB￿I3 Notes to the Financial Statements Prepayments balance primarily relates to philanthropic neThvork annual membership fees that span 2023 and 2024. 9. CASH AT BANK AND IN HAND 2oiJ 2•22 1.16J.164 . 911￿.%44 . •2 34Jo• . 626M6 35,407240 io. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 266,716 338229 1 6Q4,945 533,334 115.347 648,681 Tota GraDts p4yabl¢ ¢r¢ditOTS balance CODsists of grant iDs¢#lll*nts deeffj￿ payable but UDpaid as of 31 December. Other creditors balance collsists of accrued expense for audit fee5 aDd other PTofessioDal servi¢¢s. 11. FUNDS NOTE IX)Jy392 128J)211 131945.4721 164.439 54.717.142 17 120,391J92 121ml￿o3 31J16A72. 54.717.141 717 142 1 Designated funds ar¢ ¢ompris¢d of yant committnettts payabl¢ iti futW¢ y¢ors, #s shown ID noie 3. 36 Iniemal use C¥)wiPdn ETr¥•hiw ID.. s￿D6181&1¥&4DwF￿￿￿1￿1¥ Notes to the Finanaal Statements 12. RECONCILIATION OF NET INCOME TO NET GISH FLOW PROVIDED BY OPERATING ACTIVITIES 2022 4075531 1&70J43 {39997I931,' 1431351 {82I55￿97> 2Z2.435 14.9$7 137.422 62755Jg 1S9.935 JgJJ77.1•9 f4 13. RELATED PARTY TRANSACTIONS Connecied cornpani&t During the year. Fotsdation CHANEL re¢eived monetary donations of US$85,000.000 (2022: USS42,125,000) in cash during the y¢aT with pledged donatiODS Teceivable ID futhr¢ years of US$125,￿0,0OO (2022.. US$62,875,(KK)) remaiw outstattditig. Doll￿ted s¢rvitts and facilities were also received as outlined ID note 2. The Charity operat&s from Chanel Group office premises. Grant and charity administration was whdertaken by employees of the Chanel GTOUP who are se¢onded to the Charity. Both stsff and usage of office facililies 8nd equipmenl utiliS￿ during the period were donated in kiDd to th¢ Charlty and Valu￿ at USS3.02l.￿2 {2022.. USSI.647.741) based on an apportion¢d estimate of cost Illa￿red relat¢d to th¢ Charity's operntions. As at the date of this reporL four of the seven current directors and members of the Board of Tn￿¢$ are employed by the Chanel Grow>. Travel and a¢commodation expense totalling USS330 (2022: US5887) was ¢overed by the Charity related to Board meetiDg &twthDce by one Trustee during the reporting period. Connecledfoundatio￿v As s¢t out on page 12 in "Our Plans" Fondation CHANEL works with sister foundations, the French Foundation and the U.S. Foundation in so far as the sister fouDdations' activities are compatible with the Clwity's objects as set out on page 20. Each of the sister foundations ¢X131s for charitable purp05¢5 ID their own jurisdictions as outlined below. and is regulated as such. Regi¥iered office Puryose FondatioD CHANEL. Inc. The Cory)oration Trust Company CorporatlOD TTUSt Cent¢r The general puvposes for whicb Fondation CHANEL. Jnc. was fomied aTe to CODduct similar chan"tsble activities to th¢ purposes of the Cbarity. For the purp)ses of U.S. Tegulation. these purposes ar¢ qualified as being ex¢lusively those that Fondation CHANEL. Annual W arKI Ststemuts 2023 37 Iffttem￿ use [)￿Agn Én¥eky ID.. 509N1B1￿1SB4D￿8F1￿￿9AOIB￿I3 Notes to the Financial Statements 1209 Orange St. Wilmington. DE 19801 United States 4llow it to qualify as an ¢x¢mpt organization under Section 501(¢X3) of th¢ Int¢TDal Revenu¢ Code of 1986. as am¢ndd, or any su¢cessoT Statute theTeto {the"c￿"). including. for such purpos¢& the makwg of th'stribuiioDS to orgallisations vknich qualify 8$ ￿x￿empt organizations und¢r the Code. Th¢ sp¢cifi¢ aDd PTittwy PUry￿Se for whi¢h Fondation CHANEL. In¢. was forn)ed is io advance women Ls agents of change throughout the world. both by supporting women's empowern]eni througb (i) parti¢ipatiott and leadership. {Ai) health and social protection (iii) economic independence and entrepreneurship and (iv) ethcation and training, as well a5 by supporting womeD in arts and culture. Fondation d'Entreprise Chanel The purpos¢ of Fondation d'Entr¢pris¢ Chanel is also aligned 135 avenue Charles de Gaulle with those of the Charity and in parti¢ular, its purpose is to Neuilly-sur-seine 92200 work iti Fm¢¢ and EuTOP¢ to iujprov¢ the e￿n0￿1¢ and Fran(% social condition of women and adolescent girls regardless of their origin. Wbil¢ th¢ dIffer￿t Fondation CHANEL sister entitie5 shaTe similaT charitsble purposes, mission. $trniegy. and values, they #re legally iDdwdent ID their dccision tak￿g.4nd grant- makitig. E#th entity op¢rat¢5 with its own geo8raplu.cal focu5 T{￿ted ID local conlext. Th¢ Charity's current ￿#ll1-makittg scope iti¢lud¢s th¢ UK Afrio the Middle Easi and north Africa and Asia-Pacifi¢. tAtin An￿rica. and multi-reEiOn initiatiV¢S. The Fr¢n¢h Foundation's scope centres on France and Europe. The U.S. Fouttdation's primary scope is on the United States, Mexico. and the Caribbean. There 1$ ¢UTreTJdy fjo alre￿ Structural legal relationship betw¢eD the entities. During the reporting p¢rio(l on¢ Tru51¢¢ of the Cbarity also served OD the Board of the French Foundation as President. 14. SUBSEQUEKf EVEKrs As part of the Foundation's global governance clwiges more fully described in"OUT Plans" on page 12. a review of the French Foundation's multi-year action plan for grant commitments was completed by the FoundatlOD to confrn that the grant commitments aligD with ih¢ aims and charitable objectives of the Foundation as set out OD page 18. Following this review. the FoundatiOD Board approved the novation of agreements in 2024 to the Foundation, together with the resulting liability of $22.2 million. Fondation C￿EL. AnnL*I StatWWMS Z023