Company registration no. 12786875 Charity iegibtrdtiun no. 1195353 FONDATION CHANEL Annual Report and Financial Statements for the shortened period l January 2024 to 9 July 2024
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 LEGALAND ADMINISTRATIVE DETAILS Company registration no. 12786875 Charity registration no. 1195353 REGISTERED OFFICE 5 Barlow Place London WIJ 6DG INDEPENDENT AUDITOR Ernst & Young LLP Citygate, St James, Boulcvard Newcastle upon Tyne NEI 4JD TRUSTEES (DIRECTORS) P. Blondiaux C. Isnard (resigned 5 June 2024) M. Nitsch (resigned 5 June 2024) Y. Peel van Oranje C. Woodcraft, {resign¢d 5 June 2024) K. Wylie R. Bailly (appointed 5 June 2024) L. Mapp (appointed 5 June 2024) N. Nivuneli (appointed 5 June 2024} E. Broderi¢k' (appointed 16 December 2024) LEGAL ADVISORS Bates Wells & Braiihwaile London LLP 10 Queen Street Place London EC4R IBE BANKERS Citibank, N.A. London Canada Square London E14 5LB Independent Trustee OFFICERS Chair.. K. Wylie Secretary.. E. Jones-Ransley (resigned 5 June 2024} Secretary.. F. Smith (appointed 5 June 2024) KEV MANAGEMENT PERSOYNEL President.. K. Wylie Global Head.. K. Meddour
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 STRATEGIC REPORT INTRODUCTION Thc Board of Tru51c¢s (thc "Board" or the "Tru5tccs") of Fondation CHANEL (the "Foundation" or thc Charity ) have prepared this Report with the purpose of providing the Charity's stakeholders with infom]ation about ho, the Cliarity managed its funds and the activities it undertook to achieve its aims and objcctivcs during the period l January to 9 July 2024. a shortcned period of account (sce Our Progress and Financial Review). Comparatives for the period are for the 12 months to 31 December 2023. Thc report includcs thc Strategic Rcport (Preped in accordance with section 414C of thc Companie5 Act 2006), the Trustees, Report, the Independent Auditor's Report and the Charity's Annual Accounts (prepared in accordance with FRS 102 and the Charities Statement of Recommended Practice {SORP}). Fondation CHANEL adopted a shortened financial period fmrn l January to 9 July 2024 to align with governance changes, enhancing transparency and compliance. This dccision was parl of a broader governance review ci)ndii¢ted in early 2024 10 enhance global oversight aiid improve grant-making efficiency. As part of this process, governance across the Foundation's sister entities was consolidated, with the multi-year grant agrcemcnts of Fondation d'Entreprise Chaiiel iiovaled lo Foiidalion CHANEL before ils fi)nnal liquidation. Looking ahead, from 10 July 2024, Fondation C.HANEL and Fondation C.hanel, Inc. (U.S.) will prepare consolidated tinancial statements on a calendar year basis, with the first reporting period running from l O July 2024 10 31 December 2025 to aligii with this Iransilion, simplifying reporting and providing a clearer view of the Group's financial position. OUR AIMS Fondation CHANEL is d UK rcgi51¢rcd ¥rant-mdking chlty working in solidarity with its not-for-profit partners to create conditions for women and adolescent girls, in all their diver.qities, to be free to shape their 0.n destiny. We take a bespoke approach to grant-making. W¢ listen to our grantee partners, needs and tailor resources to support them in making positive impact, while building their organisational capacity and enhancing their wellbcing. We fonn deep, long-tenn partnerships with organisations acting at the heart of their communities, trusting that it 15 ivithin these communities that the best 501utions are found, and resources are best traiisfornied iiito meaningful change. OUR APPROACH For woinen and girls to be free lo qhape their own deqtiny.. conditions of safety, economic and social autonomy and climate resilience are essential. The following three thematic pillars are crucial foundations to our strategic approach. Safetv and wellbeing Women and girls must bc guaranteed fulldamenlal rights and resources to live healthy lives, fr¢c from violence. Tliese include adequate standards of living, access lo safe housing, basic health servi¢es, social
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 and legal proiection, and a 8u8tainable environment. Their safery and wellbeing must be protected by laws, institutions, and social nornis. Within this pillar. wc focus on.. eliininating gender-based violence,. community-based health and wellbeing; and social protection. Economic and social autonomy In a just society, women have an equal and clear voice in the choices and decisions that impact their lives. If these basic needs are met, women have increased opportunities lo develop and hone their expertise and pursue persoiial, intelle¢lual, and economic fuifilment through employment or enlrepreneurship. They can lake on leadership opportunities at work, in their communities, and in social movements. They can become true agents of cl)ange in society and unlock new potential to secure a better future. Within this pillar, we focus on.. skills and leadership development,. access to a well-resourced and supportive care economy; and social and environmental resilience. Women-led climate resilience Efforts towards g¢ndcr cquality and climate rcsilienLe reco¥nisc thc disproportionate impact that climate ¢hange has on women and girls, and the intersection between Climate change and women's rights issues, including safety, violence, health, economic autonomy, the care economy, and more. Efforts also acknowledgc and support the kcy rolc women aiid gi115 play in leading climdtc rcsilicncc within Communities and solidarity movements. Within this pillar, we focus on: grassroots, community and women-and girl-led climate adaptation and resilience building- Icadership, cmpowenmcnt, and rcprcscntation of womcn and girls in decision-making and advocacy on climate- and narrative shifts and insights on the intersection between gender inequality and climate change. OUR PROGRESS The Foundation works to address the underlying causes that prevent gender equality at the level of systems, structures, and social norn]s. Through its interventions, the Charity aims lo reach millions of women. To strengthen our global governance and enhance the efficiency of our grant-making, the Foundation undertook a comprehensive governance review. As part of this process, in the first half of 2024, we refined our structure to continue to ensure the most effective use of funding received from our sole donor, Chanel Litnited. A key aspect of this restructuring was the consolidation of governance across the Foundation's sister entities.. Fondalion C.hanel, Inc. in the U.S. I"U.S. Foundation") and Fondalion d'Entreprise Chanel ("Fren¢h Foundation"}. As previously reported in the prior year financial stateinents as a post-balance sheet event, the multi-year grant agreements of the French Foundation were novated to the Foundation bctwccll March and May 2024 and the FTcneh Foundation fornially liquidated. Foundation staff visited multiple partners in 2024, demonstrating our commitment to maintaining strong relationships and deepening our understanding of local contexts and challenges. Visits provided opportunities for dircct engagcmcnt, including faeililatin¥ peer Icarning, offering tailored te¢hni¢al assistance, and exploring ¢apa¢ity-building opportunities. This strengthened collaborative relationships, enabling deeper discussions on programmatic strategies, shared challenges, and ways to enhallcc influcncc and iinpact. Our teams attcnded scvcral confcrcnccs durin¥ tlie year, such as Commission on the Status of Women 2024, Human Rights Funders Network Annual Conference, Climate Week NYC, African Philanthropy Forum Conference, the AWID International Forum to maintain our engagcmcnt with livc global conversations around gcnder and philanthropy.
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 We continued to advance our internal learning culture to deepen in)pact through dedicated education scssions across our team. Key themes we explored includc disability, the intersection of gender and climate challenges, and more. From 10 July 2024 onwards, the newly formed Group (the "Group" cotnprising the Foundation and the U.S. Foundation} will prepare consolidated financial statements to 31 December each year, with the first financial period covering an extended period from 10 July 2024 to 31 December 2025. This approach simplifies reporting and provides a clearer picture of the Group's tinancial position and activities. These changes also infomied our deeision lo adopt a shortened financial repoiling period for this set of financitll statements, which is explained in further detail under Financial Review. TOTALGRANT-MAKING ACTIVITY The Foundation spent a total of USS19.7 million (Full year 2023.. US$25.9 million) on grant-making in the period, across 61 grantees (Full year 2023.. 49 grantees). As of the Balance Sheet date of 9 July 2024, a further USS70.5 million (estimated) was committed for future periods, siibject to fulfilinent of conditions (Full year 2023: USS78.4 million). OUR IMPACT CONTRIBUTION The Foundation pursues impact at three levels.. individuals and communities, systems and social norms, and grantee partners and peeL3. IAdividudl.s (Ind Communities First, wc havc an indircct impact via our grantcc partncrs working to improvc thc livcd cxpcricnccs of individual womcn and ¥irls and their communilics by pursuing the following outcoincs.. women and girls have control over their body, health, personal safety, and wellbeing; women aiid girls access the resources, opportunities, and skills they need to ensure their social and economic autonoiny,. and woinen and girls increase their awareness, ag¢ncy, and ability to advocate for themselves and others. Systems and social norms Se¢ond, we have an indirect impact via our grantee partners working to address systemic barriers that hinder the safety and autonomy of women and girls by pursuing the following outcoines= improved policies and laws that promote and support gender cquality., iesourcing and strengthening moveinents and grassroots organisations working for gender justice; and improved social nornis and behaviours that promote and support gender equality. P4rtAers artdpeers Third, as a gt-maker, we work towards having a direcl positive impact on our grantee partners by pursuing thc following oulcomcs.. organisations strengthen their organisational capacity, sustainability and wellbeing; organisations enhance their learning and networking opportunities,. and organisations amplify their voice5 in ordcr to enhance their rcach and illfluence.
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 FINANCIAL REVIEW During Ihc reporting period, thc Trustees decided to prepare financial statemcnts for a shortened financial period from l January 2024 to 9 July 2024. This decision was part of a broader global governance review and organisational planning process, as described in Our Progress. The shortened 2024 reporting period ensures that our financial rcporting remains accurate and compliant with thc applicable accounting regulations and goN'ernance requireinents, while also slreaniliniiig fiiiaiicial repolling and enhaiicing transparency follo.ing the global governance changes. From 10 July 2024 onwards, the Group will prepare consolidated financial statements to 31 December each year, with the first financial period covering an exiended period from l O July 2024 to 31 December 2025. Tliis approacli simplifies rq)orting and provides a clearer picture of the CJroup'q financial position and activities. As previously disclosed in the prior ycar's financial statcinents, thc Foundation reviewed the French Foundation's multi-year grant commitments to ensure alignment with its charitable ainis and objectives. Folloiving this, the Board approved the novation of the French Foundation's grant agreements, transferring the associated liability of S22.2 million to the Foundation. These transfers were executed between 6 March 2024 and 23 May 2024, with the fonnal liquidation of the French Foundation finalised on 12 July 2024 (see note 14 Subsequent Events). The Trustees have assessed tlie financial impact of these changes and arc satisfied that thcy do not matcrially affect the Chaiily's ability lo contiiiue its operations and meet its objectives. Additionally, this Iransitioii reflects the change in the sole member of the U.S. Foundation, as outlined in note 14 Subsequent Events. The Foundation remains comtnitted to transparency and accountability, ensuring all governance changes align with bcst pracliccs and iegulatory guidancc. Resulis undfiiiancialposilion Aftcr ncl105scs on forcign cxchangc, thc rcsult for thc pcriod from l January to 9 July 2024 was a dcficit of USS22.0 million (the Foundation returned a sutylus of USS96.2tnillion for the preceding 12-month period to 31 December 2023). The 2024 net deficit is in line with expectations and wholly due to the titning of the Charity's incomc, which is dcrivcd cntircly from thc support of thc Chancl group. Monctsry donations are forn]ally committed annually by Chanel Limited in December each year and actyordingly, cash donations and pledged donations in the short period from l January 2024 to 9 July 2024 were both Ussnil (Full ycar 2023.. USS85.0 million and USS125.0 million rcspcctivclyl. In-kind contributions constituted total income for the period and comprised donated services and facilities utilised during the year of USS3.07 million (Full year 2023= USS3.02 million). Total cxpcnditurc for thc pcriod was USS24.8 million (Full ycar 2023.. USS31.9 million). including grant- making of USS19.7 Inillion (Full year 2023.. USS25.9 Inillion) and support costs of USS5.1 Inillion (Full year 2023.. USS6.1 million). Grants expenditllre includes grantq payable in respect of 63 grants to 61 grantees (Full year 2023.. 52 grants to 49 grantees). While not formally recogniscd as liabilities at 9 July 2024, the TLVStee5 had d150 dgrccd in principle to futiwc grant commitinents. in sub5cquent Y¢S totalling estimdted US$70.5 million (31 December 2023.. USS78.4 million). At 9 July 2024, the Foundation had funds of USS194.6 million (31 December 2023.. USS216.6 million}, after a nel decrease in funds during the period of USS21.9 million. All funds are unrestricted. Reserves As of the date of these financial statements, the TThstees are in the process of developing a fortllal reserves policy. Following the Chanel group's slrengihened commitment lo the Foundation in 2023, the Charity currently holds ample unrestricted funds to meet all current and anticipated future financial commitments while allowing for additioiial flexibility. As of the balance sheet date, thc Charity held S72.9 niillion in cash, an amount more than sufficient to Cover all existing future Commitments. While av&ilable funding significantly exceeds current and future commitments, the Foundation expects to reduce its rcscrvc Icvcls considcrably as it continucs to approvc ncw multi-ycar grants.
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 The Charity is not reliant on fundraising or public donations and is.qolely funded by the Chanel group. Cash inflows and outflows arc activcly managcd by thc Foundation's financc tcan] throughout thc ycar to support financial stability. As the Foundation continues to expand its activities, the Trustees ivill continually review this approach in light of changcs in risks, financial posilioii, and long-tcnn stratcgic goals. They recognis¢ the importance of maiiitaining reserves to ensure the Charity's resilience h11¢ also acknowledging that holding excessive cash reserves may not be aligned with its impact-driven mission. Future decisions on the development of a reserves policy will be tsken with these considerations in mind. Going eoncern The Trustees are satisfied that the Charity has sufFicient net assets to continue its operations for the foreseeablc future and meet all expcLtcd future financial Lommitments. In making this assessment, the Trustees have reviewed the Charity's Balance Sheet, along with projected cash inflows and outflows: as of the approval date of the financial statements. They believe the Charity is well placed to manage its business risk5 SULCCS5fully and has adcquatc financial rc50urccs to mcct all liabilitics as thcy fall duc for al Icast Ihc next 12 moiiths. This conclusion is based on available cash of US51 07.0 inillion iii March 2025 and expected cash inflows of USS64.6 million by 31 December 2025. Accordingly, the Trustees consider it appropriate to adopt thc going eonccrn basis of accounting in prcparing thcsc financial statcmcnts, with no matcrial un¢ertainlies lo disclose.
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 Ri.sk martagement The TNstces have assessed thc principal risks facing the Charity with a particular focus on those that would impede its potential for impact. They ensure the implementation of mitigating actions in relation to each risk and monitor their status accordingly throughout the year. Risk Mitigation Impaet: iiu impaLt 01 adN'erse impaLt delivered by ihe Charity's grantee partners and the individuals and communiiies they serve Consult witli rcgional and local cxpcrts in dcsigning programmatic stratcgics and ncw grantc¢ partn¢r prospcction Lei'erasFe phIlLtI]rOp1L expertise of independent Trustees Obtsin regular fccdback from existing grantee partners Conduct due diligTence and dei'elop and managse bTrantee partner relationships Obtain and review appropriate grani reporting, hold routine Check-ins with grdntee paffners. and conducr site visits during grani temi if necessary with rnutual agreement Impact and learning framework in development Talent attraction and retention.. failurc to rc¢ruit or rctain kcy staff -ccodcd by thc Chancl group at forefront of our grantee partner relation%liips Fondation CHANEL offeTS coInpetitive pay, career PTogression and attractive benefits Foster a 5trongs ar nd inclusive organi5ational culture, focu55ed on engageinent Enable staff learnin¥ and professional developrnent Financial sustainability: loss of funding andlor in-kind support from the Chall¢l group Th¢ Chan¢1 group is financially sound and fully committcd to maintaining fundin¥ and in-kind support Foundation financial updat¢s and th¢ Chancl group committcd funding ar¢ shared at each Tn]5tee5 Ineetin¥. TTU5tees ensure ample fuiiding 15 available to cover cllrrent and future grant commitments befoTe approving any new grallt commitments Legal and compliance.. failurc to mc¢t accnunting, rcgulatary, and legal compliance requirements Trustee on-boarding includes overview of a Trustee's legal diities Conflicts of interest disclosiires declared at each n]eeting of the Board of Trusiees Annual Conllicts of interest disclosures by staly Robust duc dilig¢nc¢ pro¢css and ongoing grant manag¢mcnt conductcd by staff Grant documentation 155ued and Signed by all sryantee partnets and regular monitoring and ieporting follow, up Experienced legal support from the Chanel group Legal department and external adNisors, as necessary Wlii5tleblowing procedure shared with dll ¥Tdllt partneT All staff and Trustees trained on the Serious Incident procedure Data proteetlon: failure to process and protect da(a of our staff and grantee partners as well as the organisaiion Jnfomiation sccurity ass¢ssmcnts arc ¢arricd out on ¢xt¢rnal third-paty suppli¢rs who pro¢css confidcntial or pcrsonal data on th¢ Charity's bchalf Mdndatory datd PIIVdLy and Lyber-seLurity trainin¥ for all Experienced legal support from the Chanel group Legal depaffmeni and external ad.1$Or$, as ne¢essary Other financial: internal fraud or failure of intemal conirols. foreign exchange rate fluctuations Internal delegations of aiitliority in place Shaied authorisation procedures. including segregation of duties and duall multi-level autl)0risation Ability to Icvcrag¢ thc Chan¢1 group Financc and Trcasury d¢panmcnts for support as ncccssary Reguldr review of (Ippropridteness of LUtrenLy hedging
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 SECTION 172(1) STATEMENT Thc Trustecs of thc Foundation, in linc with their duties under 5CCtion 172 of thc Companies Act 2006. act in a way they consider, in good faith, would be most likely to promote the su¢¢ess of the Foundation to achieve its charitable purposes. Thc Ttee make decision5 With a long-tern] view in mind, in accorddnce with the highcst cthical standards. The Foundation's grant-making activities are focused on long-term engagements with grantee partners, which diIn to provid¢ the certainty of funding ncccssdry for grantec partncrs to tdke decisive actions that can effect real change. Thes¢ engagements b¢gin at the point of originating grant-making opportunities: where eXtenSie due diligence is pertormed on potential grantee partners. The Foundation continues this level of rigour and cngdgcment throUoUt the grant lifc cyclc, including through grdntce partner 5urvcys, day-to-day partner engagement, and the reporting obligations attached to grants. All grants ar¢ made in accordance with the grant-making policy set out on page l O. The Trustees have oversight of all grants aWded by thc Chlty to ils gr1¢¢ partners: cn5uring the Board's visibility over all grant awards on both an individual basis and in the aggregate. This committnent to long-tern) thinking is designed to ensure that the Foundation's funding is effective, sustainable and aligned with its charitable objccts sct out on pagc 10, stratcgy, and impact aims. The Trustees receive comprehensive pre-reading inaterials in adwance of each meeting of the Board of Trustees, which enable informed, consistent and appropriate decision-making by the Foundation. The Board is supported by the Audit. Finance and Risk Committee and the Progiammes Committee made up of Trustees including independent Tn]8tees. The Trustees are regularly updated at each meeting of the Board of Trustees on any compliance matters identified through the ongoing monitoring with grant partncr5. Thc Foundation con5idcr5 thc likcly conscqucnccs on all rclcvant stakcholdcrs of thc decisions and actions it takeq, and decisions are carefully discussed with affected stakeholderq wherever possible. Any material iisks identified through the due diligence process or through the ongoing monitoring with grant partn¢rs are escalated to the Audit, Finance and Risk Committe¢ for review. One of th¢ independent Trustees sits on the Audit, Finance and Risk Committee. Parlners In particular, the Foundation recogniseq the potentially Iranqfonnative effect that an award can have for grantcc partncrs and thc kcy stskcholdcrs thcy scrvc. A commitincnt to working togcthcr is impcrativc to ensure the success of our partnerships, the effectiveness of our charitable outcomes, and the continuing reputation of the Charity. Societyy (4nd commiinities Working closely '1th grantee partners in this way benefits the organisations themselves, but more critically, women and adoleqcent ELrls of all backgrounds. The Foundation's grant-making qupports and, by extension, enriches and improves their lives, and the lives of their wider communities. The support of women and young girls also frequently contributes in parallel, or indirectly, to positive environmental outcomes. Environment Environmcntal rcsilicnce is a key component of the economic and social autonomy thcmatic pillar of the Foundation's slralegy, and the Cliarity supports appropriate opporlunities lo co-address environmental challeiiges through its grantee partner Support.
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 Sol£ member Thc Foundation is a charitablc company limitcd by guarantcc and thcrcforc has no sharcs. Thc Foundation's sole meinber is Chanel Limited a company registered in England and Wales under company registraiion number 00203669 witli its registered office at 5 Barlow Place, London, W l J 6DG and the parent company of the Chanel group, which provides the funding of the Charity. The Foundation provides regular reporting to its sole n)ember, through annual and ad-hoc reporting, to ensure that it has clear visibility of the outcomes of the Foundation's work. The sole mcmber also has visibility of the Charity's work through the presence of a number of Trustees who also hold sei)ior leadership roles at Chanel Limited. People The Foundatic)n has no employees. Instead, grant and charity administration are undertaken by employees of the Chanel group who are seconded to the Charity and donated in-kind to the Charity. These staff are fully supported by the employee intrastructure of their Chanel group employer. The Foundation provides regular learning and development training sessions on critical focus areas for the Foundation to those staft seconded by the Chanel group. The Foundation also holds two in-person team seininar5 caLli year to di5LUSS stratC¥y) opcrations as wcll as iritieal foLu5 arcas such as intersectionality. Thc Trustccs rccognisc thc importancc of compliancc with Icgal and rcgulatory rcquircmcnts. The Trustees believe that this approa¢h qupports the long-tenn su¢cesq of the Foundation to achieve its charitable purposes, by ensuring high standards, compliance, transparency and maintaining the rcputation which thc Foundation holds amollgst ils grantcc partncrs, staff, supplicrs, rcgulators, its sole corporate donor, and other stakeholders.
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 TRUSTEES, REPORT STRUCTURE, GOVERNAIYCE AP4D IVIAIYAGEMENT Structure The Foundation was incorporated on 2 August 2020 as a company limited by guarantee, registered in En¥land dnd Wal¢5 under company r¢gi51rdtion numbcr 12786875, and i¢gi51crcd as d chdllty with thc Charity Commission for England and Wales on 30 July 2021 under charity registration number 1195353. It is governed by its Articles of Association dated 26 January 2021. As set out in the Section 172{1) statement, the sole member of the Charity is Chanel Limited. The Foundation worked in close collaboration with its sister foundations, the U.S. Foundation and the Frcnch Foundation {prior to its liquidation, scc Financial Rcvicw)). All havc similar charitablc purposcs, mission and strategy, but with rheir owii geographi¢al foeus. Further details on this ¢oniieclion are provided in noie 13 to the financial stateinents, Related party transactions, and an update in note 14 Subsequent Events. Objects and purpose As outlined in its Articles of Association, the Foundation's charitable objects are, for the public benefit, (i) the relief of need amongst women and girls caused by discrimination on the basis of sex, financial disadvantage or other fomis of disadvaniage and (li) such other piityoses as are regai'ded as exclusively charitable under the law of England and Wales. To further ils objects, the Foundation is a gmil-making ¢harily aiid supports pury)oses aligned with those listed in the Charities Act of 201 l. In accordance with its grant-making policy set out below, it makes grants to support a wide range of charitable projects, initiatives, and organisations for the benefit ot individuals and communities, its ecosystem of grantee partners and peers, and society as a whole. All grants awarded since the Charity's incorporation have furthered these charitable purposes. The Tn]stees have complied with their duty to have due regard to the Charity Commission's guidance on public benefit in awarding these grants. Grant-making policy Thc Foundation tcam cngagcs in in-dcpth prospcction to idcntify potcntial grantcc partncrs. Programmatic strdff consult with regjonal and local gender and philanthropic experts and other funders, gather data, conduct landscape analyses and research, and perfonn other fieldwork to devise locally relevant strategies that infonn thc Charity's grant-making approach. Thc Charity aims to build long-tcnn, trust-bascd rclationships with ils grantee partners. New grant proposals are developed in collaboration with the potential partner organisations. Before presenting a grant proposal to the Trustees for ¢onsideralion, programmatic staff ¢onducl robust due diligence ivith regard, among other things, to establishing that grant purposes are charitable- ensuring the legality of making grants to the prospective partners; and understanding the governance, operating structure, and intended impact of the organisation an(Vor project. The Charity does not award grants to individuals. The following are important considerations to the staff and Trustees when assessing grant proposals.. the anticipated social and environmental iinpact of the grant; the polenlial for learning afforded by the grant- and the history of the organisation andlor project to be funded. Once a grant is approved, the Charity drafts a grant agreement in discussion with the grantee partner. As most grants are multi-year commitments (average is 3 years), annual reporting milestones are agreed to provide an update on grant progress and ongoing learning and ensure that funds have been used for the agrccd charitablc purp05c. Tlic Foundation rctain5 thc right to pau5c or canccl any partncr5hip, and ccasc payinent of further grants, should the partner nc)t act in accordance with the temis of the graiit agreement including bringing the Foundation into potential disrepute.
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 Trustees In Junc 2024, thrcc Trustccs rctircd and two ncw indcpcndcnt Trustccs wcrc appointcd. A furthcr independent Trustee was appointed in Deceinber 2024. These appointments were part of the global governance eOlution and had the aim of consolidating robust oversight of the Foundation's funds and activities. New board subcommittees ivere also cstablished during this exercise, including an Audit, Finance and Risk Cominillee and a Progranimes Committee. The names of the Trustees who served during the reporting period and up to the date of this report are outlined in the legal and adiniiiistralive details on page l of this report. As at the date of this report, the Board of Trllstees is comprised of eighi Trustees. Four of these are senior leadership employees of the sole member, Chanel Limited and include Kate Wylie, President of Fondation CHANEL and the Chair of the Board of Tmstees and four are independent trustees. Recruitment and appointtllent Th¢ appointmcnt of Trust¢¢s is ¥ovcrned by thc Charity's Artilles ofAssoLiation. As at thc date of this report the four independent Trustees were recruited by the existing Trii8tees and appointed based on their extensive, diverse expertise and range ot. skills in the tields ot philanthropy and gender equality, as well as thcir expeiicncc on charity boards a5 chair or tru5tcc. TrustC¢s arc appointed lo office for threc- year tems and may serve a maximum of three ¢onsecutive tem)s. None of the Trustees receive remuneration with respect to their services as a Trustee. In ac¢ordan¢e with the Articles of Assouiation, new Trustees may be appointed by ordinary resolution of the member or by decision of the existing Trnstees. Induction and training All Current and new Trustees undergo a thorough induction process. They receive an induction pack comprised of the Charity's main governing documents, duties of a trustee, an oTrerview of programmatic prioritics and stratC¥LCS, financial position and Icgal consideration5, including copic5 of rclevt Charity Commission guidance. Additionally, any newly appointed Trustees engage in a series of introductory training sessions with existing Trustees and Foundation staff. The Charity Inanages conflicts of interest by requiring all Trustees lo declare their board positions at other orgaiiiqations and interest in any poteiitial recipient of a grant and qtep out of aiiy qubsequeiit discussioiis prior to any decision being made in respect of which they have a conflict. Management The Trustees meet at least three times per year to agree on the strategic direction of the Charity, review grnnt proposals, award grants in line with the Charity's grant-making policy, set out above and assess and monitor the Charity's financial position and key risks and oppot1unities. The Trustees delegate responsibility for day-to-day management of Ihe Charity to the Global Head of Fondation C.HANEL, and othcr higlily qualificd Staff. Thc Prcsidcnt of Fondation CHANEL and Global Head of Fondalion CHANEL share a inanagement upd&te at each meeting of the Board of Trustees. All staff are employees of the Chanel group and are remunerated in accordance with the Chanel Group's compcnsation policics and practiccs. Thcy do not rcccivc dircct compcnsation from thc Charity outsidc of expense reiinburseinents incurred in relation to carrying out activities on behalf of the Charity. St&ff and office facilities costs of the Foundation are borne by the Chanel group and are recorded as donated services and facilitics offsct by an cquivalciit cxpcnsc in thc fanCIal statcincnts as fiM1hcr dcscribcd in notcs 1, 5, and 13.
rondELiion CHANEL Annual Rcport and financi&l StatcincKts 9 July 2024 Related parties Related party relationships are dcscribed earlier in this report and disclosed in notc 13 Related party transacrions. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Tnjstees are responsible for preparing the Trustees, Report {ineluding the Strategic Report) tfftd the financial statements in accordance with United Kingdom Accounting Standards, con)prising FRS102 "The Financial Reporting standard applicable in the United Kingdom and Republic of Ireland" and applicable law (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year ,hICh give a true and fair view ot the state of atlairs of the Charity and of its incotne and expenditure during that period. In preparing the financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently; observe the inethods and principles in the Charities SORP (Statement of Recommended Practice). make judgments and estimates that are reasonable and prudent- statc whcthcr applicablc Unitcd Kingdom Accounting Standards {FRS 102) havc bccn followcd, subj1 to dny matciial dcparturcs di5Llos¥d and Cxplain in th¢ finanLial stat¥menls' and prepare the financial statements on the going concern basis unles8 it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that sufficiently disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statcmcnts comply with thc C.ompanics Act 2006. Thcy arc also rcsponsiblc for safcguarding thc assets of the Charity and lien¢e for taking reasonable steps for tlie prevention and detection of fraud and other irregulariiies. Thc Truslces are responsiblc for the mainlcnance and intcgrity of the Charity's website. Legislation in thc Unil¢d Kingdom goveniing the preparation and dissemination of financial statemeiils may differ from legislation in other jurisdictions. In so far a5 the Trustces are awdrc.. there is no relevant audit infomiation of whi¢h the Charity's auditor is unaware; and the Trustees have taken all steps that they oUt to have Lqken to make themselves aware of any relevant audit inforniation and to establish that the Charity's auditor is aware of that infonnatLOn. AUDITORS Thc auditor, Ernst & Young LLP, is appointcd in accordancc with scction 485 of Companics Act 2006. Thiq Annual Report (including both the Stnqtegic Report and Trusteeq, Report) was approved by the Board of Tn]stees on 7 April 2025 and signed on their behalf by.. Katc Wylic Chair of the Board of Trustees and PresidenL Fondation CHANEL
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FONDATION CHANEL Opinion We have audited the financial statements of Fondalion CHANEL for the period ended 9 July 2024 which comprise Siatement of financial activities, balance she¢t, statement of cash flows and the related notesl to 14, including a summary of signiticant accounting policics. Thc financial rcporting framcwork that has been applied in their preparation is appliLable law and United Kingdom ALLounting Standards {United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting standard applicable in the UK and Republic of Ireland" In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 9 July 2024 and of its incomin¥ resources and applicatloll of rcsourccs, including its income and cxpcnditurc, foT ihc period then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Aci 2006. Basi5 for opinion We condu¢led our audit in ac¢ordance with International Siandardq on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's rcsponsibilitics for thc audit of thc financial slatcmcnts scction of our rcport bclow. Wc arc indcpcndcnt of the charitable coinpany in accordance willi the etliical requiremenrs that are relevant lo our audit of Il)e financial statements in the UK, including the FRC.'s Ethical Standard and we have fulfilled our other ethical responsibilities in accordancc with these requircn]ents. We bclieve that the audit cvidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfonned, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt OL] the charitable company's ability lo Continue as a going coii¢ern for a period of twelve moiiihs froin when the fiiiancial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going coneern are described in the relevant sections of this report. HoThTever, because not all future events or conditions can be predicted, this statement is not a guarantee as to the trustee's ability to continue as a going concern. Other information The other inforniation comprises the infom]ation included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible tor the other intom]ation containcd in the annual Teport. Our opinion on the financial stateinent5 doe5 not Lover the other inforniation and, except lo the extent oihenvise explicitly stated in this report, we do not express any forn) of assurance conclusion thereon. Our responsibility is to read the other infollnation and, in doing so, consider whether the other inforn)ation is materially iiiconsiqtent with the financial statements or our knowledge obtained in tlie audit or othenvise appears 10 be materially misstated. If we identify such material inconsistencies or apparent atcrial misstatements, we arc required to detcrn]ine whethcr this gives risc to a material misstalcmcnt in the finan¢ial statements tlieinselves. If, baqed on the work we have perfornied, we Conclude that there is a material misstatement of the other inforrnation, we are required report that fact. We have nothing to report in this regard.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FONDATiON CHANEL Iconlinuedl Opinion on other matter prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in ihe course of the audit: the information given in the trustees, report, Ivhich includes the directors, report and the strategic rcport prcpared for thc pury)os¢ of Lonipany law, foi th¢ findnLial pcriod for whiLh the financial statements are prepared is Consistent with the financial statements- and The qtrategjc report aiid the dire¢torq' report included witliin the truqtees, report liave been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In light of the knowledge and understanding ot the charitable company and its enN'ironmenl obtained in the course of the audit, wc havc idcnlificd no material mis5talcmcnts in thc strategic rcport or the tru5tecs' report. We have nothing to report in respect of the following rnatters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or the tinancial statements are not in agreement ivith the accounting records and returns; or certain disclosures of truslees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trllstees, responsibilities statement set out on page 12, the trustees (who are also the directors of the charitable cotllpany tor the purposes of company law) are responsible for the preparation of thc financial stdtcmcnls and for being satisfied that givc a truc and fair view, dnd foi SULh int¢rnal control as th¢ trust¢es detern)ine is n¢¢¢ssary to enabl¢ th¢ pr¢paration of financial stat¢m¢nts that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Ihc trustCC5 drc rc5ponsible for a5SC5sing th¢ charitablc company'5 ability to conliiiue ¢15 a goiii¥ concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the charitable company or to cease operations, or ha5 no realistic alicTnativc but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonablc assurance about whether the financial statements as a whole are free froin material misstatement, w.hether due lo fraud or ertor, and to issue an auditor's report that includes our opinion. Reasonable a.qsurance is a high leTrel of aqsurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a matcrial misstatcmcnt when it exists. Misstaleinenls 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 tinancial statements. Eyplnnation as to what d¥tent the audit was considered capable ofdeieLYing irregulnrities, including fraud Irregularities, including fraud, are instances of non-compliance ivith laivs and regulations. We design proccdurcs in line with our responsibilities, Outliiied above, to detect itregulaiities, including fiaud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting on¢ resulting trom error, as fraud may involve deliberate concealment by, for example, torgery or intentional misrcprcscnlations, or through collusion. The cxtent to which our PlOLedures are Lapable of detccling irregularities, including fraud is d¢tail¢d below. However, the primary r¢sponsibility far the prevention and detection of traud rests with both those charged with governance of the entity and management.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FONDATiON CHANEL Iconlinuedl We obtained an understanding of the legal and regulatory frameworks that are applivable to the charitable company and determined that the most significant are Charities SORP IFRS 102), Accounting and Rcporting by Charitics, Companics Act 2006, Charitics Act 2011 and His Majesty's Revenue and Customs (HMRC). Wc undcr51ood how Fondalion CHANEL is complying with those framework5 bv making enquiries of management and those respon£ible for the legal and compliance procedures. We corroborated our enquiries throu our inspection of the board minutes as well as consideration of the results of our audit procedures across the entity. We dSscsscd the 5U5CCPtibility of the chItable company's financial statements to material misstatement, invluding liow fraud might occur by reviewing the charitable business purpose of grant and operating expenditure, as well as perfornied management inquiries of the procedures to identify risk of material misstatetllent due to fraud and error. Bascd on this understanding we designcd our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved reviewiiig legal and professioiial correspondence and corroborating with management inquiries. A furthcr dcscription of our rcspon5ibilitics for the audit of thc financial staten]cnt5 is located Oll the Financial Reporting Council's website at https:Ilwww.frc.org.uklauditorsresponsibilities. This description fornis part of our auditor's report. Use of our report Thi.q report is made qolely to the charitable company's memberq, as a body, in accordance with Cliapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable Lompany's mcmbcrs Ihosc mattcrs wc arc requircd to statc lo them in an auditor's report and for no other purpose. To the fi]Ilest extent permitted by law, we do not accept or asqume responqibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for thc opinions wc havc fornicd. Caroline Mulley Iseriior 51alutory auditor) For and on behalf of Ernst & Young LLP. Statutory Audltor Newcastie upon Tyne 7 April 2025
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 STATEMENT OF FINANCIAL ACTIVITIES For the period l January to 9 July 2024 l January to 9 Julv 2024 12 month5 t 31 December 2023 Urtre5tritted Unrestricted Notes Income from: Donaiions 3,069,141 3.069.141 128,021,003 12¥,O21.1103 Totlll Expcnditllre oll.. Lharitable activitie Grants ¢xp¢ndi¢ur¢ Support costs Total 19,719,904 5,194.612 24,914.516 25,910,696 6,034.776 31,945,472 Net lexpellditurell Intome Oilier iecognised gains on toreign exchange Otherunrecognised Il¢)sstsll gains on foreign exchange Net movement fund$ 121,845J751 9,632 1180.14Ql 22,O15J183 9A075531 4,505 159.935 96,239,971 Reeothcilisilion of furtd$'. Tulal fiinds brouglil fotward Total funds carried forward 216.634.363 194,61¥,480 120.394.392 21I634J63 All of the Charity's income and expendiiures relaied lo Urtricted tunds durin8 the financial periLNI. All incom¢ and cxpcrtdiluTL from continuing aciivitlLb. Th¢rc wcr¢ no othcr gains or losb oihcr Ihatt thos¢ IisiLxI aix)vc.
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 BALANCE SHEET A5 llt 9 Jul). 2024 Unrestrlcted 9Jul 2024 us$ Unrestricted 31 December 2023 us$ Notes Noll-current a55et5- Debiurb 30,000,0 30,000.0(H) 30,000,000 30,000,000 Total Current a$5ets.' Debiors 95,500,OiYJ 30,06() 72.940,12? 16&471I,18 95,000,0(K) 5,0 92,214,InR 187,239,308 Pr¢paymettis Cash at bank and in hand 'rotlll Current liabilitie5- Creditors.. amounts falling du¢ wiihin on¢ year Iyet turrent a55et5 -3.R51.708 164,61¥,4110 6a4.945 186.634.363 Toil assets less current Ilabllltles. belng net assets 194,618,48 216,&14,363 The futtds of the thrity- R¢stricted fvnds Unresli'icled fund 194,618.480 194,618,480 216,634.363 216,634,363 Total chariti. fund5 The notes on pag 19 10 28 torm part of these Financial Statements. The Financial Stateinenls of Fondation CHANEL Icompany regi£lration no. 127868751 were 3w)roved and aulhDri%ed for issue by the BoaTd 0(Trus on 7 April 2025. Th¢y w¢rc sigrtcd on its iK'haifby'. Philippe Blondiaux Director and Trustee, Fondation CIL4NEL
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 STA TEMENT OF CASH FLOWS For the period l January to 9 July 2024 l January to 9Jul 2024 us$ 12 month$ to 31 Dccembcr 2023 uss Notcs Cash flows from operating a¢tivities: Iyet cu$h Iu5ed illll provided bi. operthting #Ltivities 12 (19,294,186) 56,198J42 Change In ¢¥sh aind ¢gsh equlvailent$ in the reporting l'ear Cash and ¢a5h equivglent5 al the b¢8innin8 of the reportin8 y¢ar C¥sh aind ¢gsh equlvailent$ at the end of the reporting year (19,294.1861 92,234.308 72,940.122 56,198,342 36.035,966 92,234,308 Cash balancc on9 July rcficct5 unrccOgnid loss&&on forcignexchangcduc lo forcign cxcliaDgcrno¥cnien15 on Sicrlingaccount.
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 NOTES TO THE FINANCIAL STATEME.NTS For the period l to 9 Jul}. 2024 I. PRINCIPAL ACCOLNTING POLICIES Th¢ principal accouniing poli¢i¢s appli¢d in lh¢ prcparaiion o(thcs¢ Financial siaiemcnts arc sci out b¢low. B#$i$ of prep#r*tio The linancial £t31einenls have been prepared under the historical co4t convention and in accorthce 'Ith UK Cienerally Accepted AccounliiiL Practice and oiliei- applicable standards including the Cliarities SORP FRS Ioty (Second edition October 20191, Ilie Financial R¥porling Stdndard appli¥abl¢ Jn Ihe UK and Republi¢ of li¢1 IFRS 1021. Ibv Companies Att 2006, and th¢ Charili¢s Aul 2011. The c.harity constitutes a public b¢n¢fit ¢ntiry as defih¢d by FRS 102. The financial stateinen15 are presented in USD and rounded to the neatest dollar. Any transactions undertaken iii foreign cUencY are tranSlad inlo USD, (he predomi[nI Currency in which Ibe Chatity reueives Income alld expends cash and therefore both ils thneiiotl and pr¢sentation currency. Rep(krtill2 period The£e tinancial statemenL£ hgl'e been prq)ared for tlie period l January 2024 to 9 July 2024. Comparatives for the period are fortlie 12 months to 31 Deceiiibei 2023. JnLtrme recognitits All income 1s re¢ognised in Ihe siaiem¢nt of financial actiV1ti¢s when Ihe Charity Is legally ¢ntiile4110 th¢ itt¢ome. the amouni Lan be quantified reliably, any condition£ far receipt have been Inet, and receipt is prohable. Income 1£ compri.£ed of monetary donations and donated ser¥'ices and facilities. Monelllry donations llre recognised as income upon receipt. In the event of monetary donations pledged bill not yel received, the amount is acctued foi as inLome where entitlement has been establislied and leiPt is considered PTobable. Donated services and facilities Tepreseiit the value of services iNinie by Chanel Limited dui-ing the i-eporting period in providing seconde( staff, vffiLY faLililieb, ancl vffiL¢ equiptnenl tv the Chdrity. They are N'dlugd JI dLlual dnd rewgnis¥d in lh¥ finanLial ldlementS ds incom¢ offsci by an equal ¢orr¢sponding amount as cxpcndiiurc whcn thcy arc r¢¢civabl¢ and quaniifiable. Eipenditure re¢o%nition Lidbililies dTe reLvgnis¢cl db expenditur¢ when th¢ 15 a legal 01 LvnslruLliv¢ obligation Lomiiiilling th¢ Charity 10 the expvnclilure, the amount of th¢ obligaiion can bc quantificd rcliablv, and s¢ttl¢mcnt is probabl¢. All ¢Kpcnditur¢ Is accounted for on an accruals basis in the period in 'hICh it 1% Incui'i'ed. Expenditure iq comprised of charitable grant-making activity well as all support costs related to granl-liL4kiiiLT and the overall adtninislralion of the Charity. Grants are cognIs4 as payable wlien there is a leLTal oiconstructive obligation to pay estsblislied by the TtustEes' approval of the gTant, sigDaiuTe of a graDi agre¢menl, ancl Ibe ie¢ipieni's fulfilm¢ni of any ielated ¢ondilions, as applieable. Any awd$ meeiing Ihe8e r¢¢ognition criteria but not paid at th¢ end of th¢ r¢portin8 period are accrued for. Mast of th¢ C.hariry'% 8rant£ are multi-y¢ar commitment%. R¢l¢&s¢ af fvnding in %ubq¢qu¢nt year% 1% conditional satisfa¢tlJry r¢c¢ipt of annual reporting on grant progress and confinnation that graiit tunds haTre been used only tor the agreed cliaiitable pUryse. tiranls subjecr to future conditions which ale not reKognis&4 ats liabilities at year-end are disclosed as fuluTe grant comn]ith]ents' in note J. Cash llt bank and in hllnd Cash at bank and Cdsh in hand consists. of all uccounts. thdt ate avdildble on deindnd. Debtors nd credltvrs Dcbtors and othcr rLcciiiablLb arc rttognis¥d as an assci whcrt a past ¢v¢nt rcsulis itt a prcscnt obliga110tt Ihai w111 rcsult in thc Chariiy receiving fulld£ from a third party and the receivable amount can i)e qiiantified reliably. Deblorq are recngnified at tlieir anlieipaled seiilemenl amount. C.r¢diiors and oihLr payables arl rccogn1b¢d as a liability wh¢n a pasi ¥vini rcsulib in a pr¢nI obligaiion that will r¥suli in Iransfcr of fuiidq to a third party and the amount payable can be measured or reliably eqtiinated. Ci'editDI's gre recogniqed al their aiitieipated seiilemenl amount.
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 NOTES TO THE FINANCIAL STATEME.NTS For the period l to 9 Jul}. 2024 I. PRINCIPAL ACCOLNTING POLICIES CONTINUED Foreign turreth¢i trnsltio Assets and liabiliti in forcign ¢urr¢ncies arc translatcd inio USD ai ihc closing ¢%chang¢ rdl¢ as of Ihc balancc sh¢ct datc. Forcign currency trgnqaclion£ are Iran£laled Into USD at the closing exchange l'ate as of the transaction date. Foreigyn exchgnL7e &yain£ alld10$4es resulting Ironi the sellleiiienl of such transactions and from the translation of monetary assets and liabilities denominated in ciitrencies vihvr than USD al year-¢nd ¢XLhanbre Trat¢ r¢¢ogrnis¢d viher ¥FaIn and loss¢ and henL¢ are LunsideT¢d in a1%111&T al the n¢1 mov¢m¢nt of funds. Taxatlon Fondation CHANEL I. a registered charity and theretore h9£ no liability to iiicome tsx oi corporation on income d¢rived tn)m its cbaritable activities as it falls wiiliiD Ilie various exetnplioDS available lo registei-ed chatities. IecOVe17ble VAT is retlected in eXpndilE amounts charg¢d to tli¢ statement of tinancial aclivilies. Critical accountillg estimate5 alld judgctnent5 In Ihe application of the Cli#rily's aLcounting wli¢ies described elsewhere note l. the Trustees are required 10 make estimates. judgem¢nts, and assumptions about th¢ carrying amounts of assets and liabilities that are not r¢adily apparent from other sour¢¢s. Th¢ estimates and aswciated gssurnptions are based on historical expei'ience and other factors that ale considered to be relevant. Acmal results may differ from tbe5e e5tiiiiates. Eblimaie¥ and absumptions are reviewed on an on¥oiiig bdsis. Revibions tu coUntIng esliinatets are reLo¥nised in the period in wliich the ¢S11mat¢ 1s rev1sed 1f Ih¢ r¢v1510n affecis only Ihat period. or in Ih¢ pett of the r¢vision and future periods if the r¢vision affecis boih current and future periodq. The Ttee$ do not con%iderthere gre ally critical judgements or qourees of e£timalion uncertainty r4uiring disclosure. und accounting All funds arc licld on an unrLstri¢t¢d basis and Can b¢ uscd in accordan¢¢ with Fondaiion CHANEL'S chaTiiabl¢ objwts set out on pag¢ 26 at the diser¢tion of th¢ Trust¢¢s. Assessmtnt of golng toneern The Trusi¢es are satisfi¢d Ihai Fondation CHANf.L has sufficient net assets to contlttue 1ts Opwations for th¢ for¢s¢¢abl¢ fuiur¢ and meet all exCted tuture financial cominitments. Accordin8ly} the financial 8t&temenl% have been prepared on a going concern basis. Tn th¢ir asseMent. Ihe Trustees have reviewed th¢ Chariiy's balanc¢ she¢1 attd anti¢ipai¢d futur¢ cash Inflows 8nd ouiflow's as of th¢ approi'al date of the financial 4tatemenl£. The Tru£lees believe that the Charity is well placed to manage its bu%ines% successfully appruval ofihebg finanuial Sen15. Basecl on Ihis, Ihe T[US¢s ¢vnsidei li *ppropri#ie adopl Ihe gving ¢vn¢¢in basis ofaucounting in pr¢par1n¥ the f1ngncig1 stat¢m¢nts with no rnat¢rial unc¢rtainti¢s to disclose. 2. DO.NATIONS l Januari. t 9 Juli. 2024 U55 12 to 31 December 2023 u$ Monetary donationg Teueived Monetsry donations receivable Donaied gervibes Donated facilities 125,000.OL 2,241.373 779.630 1281I211)D3 2,561,609 507.532 3.069.141 Ttal Monetary. donations are fortnally coinmitta annually by Chaiiel Lirnited in December each year IlierefoTe casli aiid pledgeA donations i th¢ bhvrt [ld fwm l January 2024 tv 9 July 2024 US$nil duE Iv litning. 2U
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 NOTES TO THE FINAf4JCIAL STATEMENTS For the period 1 Januar> to 9 Jul} 2024 3A. GRANTS EXPEiSDITURE Jlnuary to 9 July 2024 us$ 12 rnonth5 to 31 December Ttrtal GrAtht Awarded Loe#l Local Curreney 2023 us$ Grant portfolio & retipietht Africa & Tr+qENA 2.144395 50,OIXI 50,OIYJ 350,OIXI 2.197.693 African Women's Development Fund Batik International . Mornx¢o EQ Em¢rg¢ncy Support DoTia Feininist Fund USD 3,050,fXIO 51J.iYJO 771,IKIO 3,lJiYJ.iYJO I2),0 3.879.145 6,1)0 367,048 USD USD 150,000 1.3QO,OQO 520,000 myAgro Pathfindei InleTnaiion#l USD USD Speak Up Afrieg Woinanily froundation, The USD USD 1,694,295 200,000 27,693 USD Asia-Pgeific 3,663,963 10,000 9,469,691 I,000,(J)o 1,700,1)QO 500,(J)O Aga Khan F"oundation (Uniled Kin¥dotn} A£ian VenMre Philanthropy Network IAVPNI- Ciender Pooled Fulld Atsian Venture PhilanthD)py h¥1.U[k IAVPNI Siippvrl A£ian-Pacific ROurce & Reqearch Centre tor Women IARROWI Be¥utn Organibalivn fui Wvmen Breakthrougli Tn]sl Chaiianya CIRCLE Woinen A8soci3tion USD 5.010.(K)O 3.lJiYJ.(KJO 1.010.000 I,oiiJ,000 332.336 USD 10,000 343,333 40,000 569,245 10,(N)o 10,000 10,000 199,452 10,000 10,000 96,iOO 170,000 810,000 307,552 210,0(M) 210,000 iO,O(M) 10.o(H) USD USD 30,(M)O 50,000 300,(M)O 170,10 280,024 USD 3,lJ63.946 810.821 USD USD 515,0( 760,078 800.000 10,o(h) 160.000 370,0(h) 521,000 2,060,0(k) 1,355,996 610,(M)O 460,000 2287,185 421,785 460.(M)O Dasr# UK Forum for Women, Law and Dei'elopment IFWLDI Global Fund (01 Women IUKI Hatwo Palo USD USD USD USD 90,0 HER Fund USD JOICFP USD 211,0 950,(M)O 425,000 Mirai RITA Foundatio NatUTe EiiviroiitDent and Wildlife Society INEWSI Nobel USD USD USD NPO Wotnen's Eye Onc Hcart Worldwide Pacific Feininisl Fund USD 150,000 700,000 170,000 144,(M)O USD USD Root Impact Tewa USD 10,000 50.000 20.000 270,000 10.000 10,000 20,000 USD 50,000 367.332 515,626 294.701 Thc Nudg¢ Lif¢Skills Foundaiion UK for UNHCR 120231 WomLn Aciing for Transformativ¢ c.hang¢ Woiiien's Fund Fiji WomLn's Fund Asia Woinen's Fund Asia Leading from the South Womcn's Rchabilitation C¢nir¢ IWORECI USD USD I80.0 USD 140.1I)O 120,000 .159.667 I,000,0 USD 310,000 4,020.0(k) 3,000,000 826.9 USD USD USD 227,881
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 NOTES TO THE FINAf4JCIAL STATEMENTS For the period 1 Januar> to 9 Jul} 2024 3A. GRAiNTS EXPEiNDITURE CONTINUED l Jgn¥2ry to 9Jul 2024 uss 12 month5 to 31 December 2023 Total Grant Aivarded L1 Currency Granl portfolio & recipient LoL'al us$ GlobAllmulti-regio A50¢1aClOlI Fondo Centroam¢ri¢ano d¢ MuJ¢res Capital forGuod USA IGFFI Climat¢ &. Sustainability Co-ltnpacl Philanthiopic Funds, Inc. FonJ2tion Nation21¢ d¢5 S¢i¢n¢es Politiqu¢s oro liltenCiOllI de Mujeies Indigenas IFIMI) Global Philanthropy Projeet L'Association du botum de Paris SUT la Paix Patis P&ice Trorum120231 nDI 6,152J68 1.26E,526 10,582,307 EUR USD 3,000.000 3.0),110 5511.11(JO 15,UDU,UOO 240.iYJO J,uoD,uoo 51Q.(KJO 5U,190 800.IYJO 50,UOO 1.51YJ.iIOO 5V,(JOO 1.41YJ.1100 i •oo,000 550,OQO USD USD 3,0,0 EUR USD 88,704 ,375,000 25n.000 usr) 10,000 EUR usr) 800.000 54.916 500.000 OECD EUR Panorama Global F.qual m¢Ur¢S 2030- 2022 PanoTaina (ilobal Shake The Table USD USD 50.0 510,000 USD USD 510.OQO 200,000 The Brid¥espan Group Thousand Currwts WomEn Deliver USD USD 1,51YJ.iKJO 300,000 1,797.1100 3.000,(K)o 1,200,iKJO 500,0110 so,000 Wom¢n Enga0¢ for a Common Futs]r¢ IWE.CFI IGlobg11 Women Win IUKI Nebula Fund Women Win IUKI Numun Fund 814,042 USD 1,250,000 700,000 USD Latiu Atllcrica 392,158 392,158 584.100 384,100 200,000 CARE Franbe EUR .052,373 600,000 Pro Mujer, Inc. USD Uttited Kingdo End Viol¢nce Against Wom¢n FILIA IUKI Ging¢rbr¢ad UK tilobal Fund foi Children, The IUK TSt) Kalayaan R05a Pund 2,267,991 2,88&902 168,R73 243,165 -049,475 135,063 GBP 330.120 tiBP 543,935 1.81N).IKJO 3,539,194 283.600 GBP tiBP 1,518.029 152.4(KJ GBP GBP 1.65U,W 981.776 JOLI,944 45.IKJO 989,030 75U,600 38.466 Women s Tludg¢i Group 2022 Wuiiien'b Budget GTOUP Early Education Cliildcare CLYalition Working Chan¢e Wotnen's Resle Cenlte Gtip GBP 369.110 22¥,452 GBP GBP 57.245 440,015 22
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 NOTES TO THE FINANCIAL STATEMENTS For the perlod l Jonuary to 9 July 2024 3A. GRAiNTS EXPEiNDITURE CONTINUED Jnuary to 9 July 2024 12 Tnonth5 to 31 December Ttrtal GrAnt Awarded Local Currenci. 2023 Grgnt portfolio & recipient Local us$ Eurnpe Bod08k1 Foundation Caldla Fundv de MUje5 IUKI. CFF IUKI Dioiinja IUKI. Ecumeiiical Women & Initiative IUKI En Terre Indigène IUKI, European '0tell,5 Lobby IUKI Fundacion S¢£rciariado Giino IUKI. GAMS Belgique IUKI. 1k#Mr¢ IUKI. IRIS- Institut de relatiolls internationales et stratégiqiies IUKI 5,09&929 18&O03 188,003 EUR EUR 170.282 1.030,(K)O 10,000 768,-534 450.000 151,674 430,184 1.057 198,349 161,382 139,740 217,464 271,274 216.748 47,523 29,487 76,001 ,632,879 109,368 136,063 76,720 211,609 525,790 175,257 109,357 322,677 EUR EUR EUR EUR EUR EUR 1.2(N).068 755,000 828.360 27,500 i(M).o(h) 4,5,000 EUR EUR EUR LESSAN IUKI EUR Neli4'01"k of European Foundations IUKI ProlLptsits ILry(I' ReDi Sch(Kil IUKI SEMIA Fondo dcllc Donn¢ Eni¢ Filantropico IUKI. Sport dans la Ville IUKI Ukrainian Wom¢n's Fund IUWFI IUKI. Voisin Malin" EUR EUR EUR 753,285 210.000 EUR EUR 1,239,759 1,21W.O(h) 857,163 li.729 900,0( EUR EUR Iloisin Malin- Phas¢11 Wonien Win IUKI Women Will- Phase Il* EUR EUR Total grant$ expenditure 19,719,904 25,910,696 ote ID FTrndaliollCIIANEL from Ihe Frencli FThuiidatLm in2024 23
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 NOTES TO THE FINANCIAL STATEMENTS For the perlod l Janumry 10 9 July 2024 3B. FUTURE GRANT COMMITMENTS As of 9 July 2024. Fondauon CIIANEL had estiinaied future grant commitments as follows.. l Jgn¥2ry to 9 July 2024 uss 12 ]]]ontbs to 31 Detember 2023 uss Pllyable in the periodl year endiD£'. 10 July 10 31 D¢e¢mb¢r 2024 31 December2025 23,356.209 34,065,014 11,396.(A5 24,577.056 •0,476,012 R,286.iYJ9 1,267,465 54,007,142 31 Dw•nber 2026 31 Decembei2027 Totul 70,455,481 Flllurv granl LumTnittn¢nLs will k- dvvtnvd Pdvabli rlniva as liabiliLi¢s in ivilh th¢ rwTrBniLiyn pvliLy in note l. All future comniitillents will Ee fvnded 'It1] cash In hand or pledged donations from Chanel Limited. 4. SUPPORT COSTS Jauuan. t 9 July 2024 12 months to 31 De¢¢mher 2023 uss Cjrant management and charity adminstralion costs Audil f¢cs Legal fees Tot#1 5,064.846 5.925.693 65.972 55,913 5,194,612 6,034,776 All 5UPPOrt cosrs are in relation to Fondation CHANEI. ¢hantable activities sin¢e no fvndraisins is undertak¢D by th¢ Chanty. S. STAFF COSTS IN-KIND Jalluary I 9 Julv 2024 U55 12 months to 31 Deeemher 21123 us5 Salary wsis Social security co515 Pen%ian co8t8 Othcr bcnefits Total 1.686,450 276,075 63.176 -$06,411 2,532,112 1,609,65.% 295,170 105.566 230.981 2.241,372 AII FoJhl&iitsrt CHANEL siaffare emploved 2nd remurtetaied by the Lhartel groiip in aL'Ltsrdartee ivilh li% eompen%aiiort ptsliLiL% and pra¢iice5 and seconded to the chily7 eitlier a fiill-tiine oi pan-time basis io siippon grani portfolio n11aSe1lleI. admiiiistrJtion. and Overall martagemeni ofihe Lhatiiy. The majtiriiy tsf%Lqff are full.iime and fur ihu%e hr) are parL-lime. esiirtiaie ufihe appropriaie prowrtion of iheii time dedicated to the Chanty is In¢liided within donated services. The lai*r is true foi tlie Global Presideiit of FortdaiiDn LHANELartd ihe Trusiee% have reviewed artd cortL'luded ihai norte ofih&%e Ll)%LS rela io iheirrole a% a Tru%iee and %ts have noi beeii disc105ed as Trusiee remuneration. Salary costs for 2024 include a tot1£ l of S229.158 latIO io Foundation staff costs incllrred from Octokrio Decern 2023. which ¢r¢ not r¢cogni%ed in the fiiianrial yeaT ¢ndeil 31 DecTrber 2n23 h¢¢du%e they 'e not identili¢d at that td¥e. iln the basis th1¥ Mnlssion represeiits an uiidtt-accrnial of both In-kind income and in-kiiid expenditure, the IS no IlllP£1Ct on tlie net result for eiiher financjal pen1. CTjven the ndtllre ol'tlie Ite]n its. quJntlLxtive as%¢%stn¢nt. it was det¢rmjneJ tlidt a prjor p¢rjod adiu%bn¢nt Ivdg not necessary. Tnstead, the ainount has been recognised in the 2024 financial stAtements, witli this disclosure provided for ttansparency. 24
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 20•4 NOTES TO THE FINANCIAL STATEMENTS For the perlod l Jonuary to 9 July 2024 6. GOVERNANCE COSTS l Jlnuarv to 9 Jul> 2024 uss 12 rnonths to 31 December 2023 uss Audit fees 73,853 55.913 18,762 148,428 65,972 Legg1 tees Travel & meetings Total 330 1119,413 Goicemanee c(tsi% are irtLluded ivithin %upwrt eosi%. NOTrlee receii'ed any remuneraiion Irthl Fortd&iiOrt LHANEL Ora related kHrty dunng the reNing pell1 for their Services as a Trusiee. Included '1th]n traiel and nieetings are a¢comlliodatll expEnse5 liAallirtg U8$30512023.. U%$330} Costred by the Chariiyrelaied io Bi)ard meeiirtBaLiendance by one Tr%let. 7. DEBTORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR 9 Julv 2024 u.ss 31 Deeember 2023 Debtors 30,000.L0 30.000.000 30.000.000 30.(H)O.000 Total 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 9 July 2024 uss 31 Dccembcr 2023 us$ Debtors 95.500,iYJO 30,066 95,530,066 95,000,000 5,000 95,005,000 Pwaytnenls Total 9. CASH AT BANK AND IN HAND 9 Julv 21124 uss 31 Deeember 2023 SteTlin¥ account US Dollar account Total 2,366,852 70,573.270 72,940,122 91,066.144 92,234,.108 25
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 NOTES TO THE FIiNANCIAL STATEMENTS For tbe perlod l to 9 2024 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 9 Julv 2024 31 Dccembcr 2023 Grcints pa}'able Oth¢r cr¢ditors Total 3,208,825 642,883 31141.708 266.716 338,?29 6O4,94.5 11. FUNDS LYOTE Total Urtrestricted Funds us$ 216,634,363 3,009,141 24,914,516) 1170J(k81 General Funds Designated Funds uss 54.717.142 Ralan¢e at l JaVary 2024 Incotne Expendimre Gains TransfeTS Bulance at 9 July 2024 3,U69,141 124,914.5161 1170,5081 115,73¥,3391 124.162,999 15,738,339 711,455.481 IY4.618,4¥11 Desiwiated fund5 are compled of srant cominilmellts payable in fijture years, a5 shown in note 3. 12. RECONCILIATIOiS OF NET INCOME TO NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES l Januari. to 9 Juli. 2024 12 month5 to 31 December 2023 us$ 121,845.3751 us$ 96,075,531 Net lexpenditurew irtcome for the reporting period Adju$tments for: Ilnbrebel in debiots InLiesel IdeLTe*sel in uiediiors Other reco51$ed bains on foreig exchanbTe Other uorecobmised110gsesy galljs on forei) exchange Tot311 1525.0661 3,246.763 9,632 1180.1401 2,551,189 139,997,893) 143,7361 4,505 159,915 139,877,189) et cash (used Inll provlded by operatlng a¢tlvltles 19,294,186 -56,198342 26
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024
OTES TO THE FINANCIAL STATEMENTS
For the perlod l January to 9 July 2024
13. RELATED PARTY TRAY?ACTIONS
Ctsnneeied companles
While FonJat10n CHANF.L d1d not r¢¢eiv¢ any mon¢tarv donations from the Chan¢1 group during the period12023.. US$85.000.OiYJI. gt 9
.Tuly 2024. pl¢dg¢d ¢&sh receibable by 31 D¢cwnber 2024 wgs tJSS95.000,OIKJ, wilh a furlh¢r pledge of USS3n.iYJO.OnO receivable by 31
December 2Q25.
The Chariry op¢rat¢s from Chan¢1 group office premises and donated services and fa¢ilili¢s w¢r¢ also r¢c¢iv¢J as Outlined in not¢ 2. Grant
and cliarity adiiiini%lralion was undenaken by einployees of the Chanel group who are seconded to the Charity. Both statl'and usage of
office tacilities and equipment ulilised duTingT the periud were donated in-kind lo tli# ClrItY and valued al USS3,069,14112023.
USS3,0?1,00?I based on an apportioned esiim#ie of ¢osi incurred ielaied to Ihe Chatity'g operaiions.
As al the dale of this report, fouT of the eiLTht CUTTent directors and n]eTnbeTS Ot the BoaTd of Trustees are en]ployed by the Chanel Lltoup.
Trai?¢] and accommodation exp¢ns¢ totallin8 USS36512023.. USS3301 was cov¢red by th¢ Charity r¢lat¢d to Board m¢¢tin8 attendance by
one TTllslee duriiig Ilie reportiiig period.
Mabel Ordnje, g Tslee of the Chgriry, glso serves as an advisory boaiyi member la non-remuiierated position) of C]Mpact
Philanihiopic Inc., J cuent grantee. (iiant disburseiiienls duTing tbe petiod were UgD$'3,OUO,UW under a 5-year gtanl loralliDg
USDSI.%,(M)O,000. awardcd on l July 2022. The grani ivas award¢d folloiving th¢ ChaTiIN's standard
Fondaiion CHANEL Annual Rcwrt and Financial Statcmcnts 9 July 2024 NOTES TO THE FINANCIAL STATEMENTS For the perlod l JaVary to 9 July 2024 14. suBSEQUET EVENTS As parl ofthe Foundaiion's global govLmancL changes mor¢ fully d¢s¢ribcd in Our PTogrLss and Ihc Financial Revi¢NN, following a re1¢7 of the Fr¢n¢h Foundation's multi-y¢ar a¢t10tt plan for grant cotnmitments to confirm that the grant cotnmitments g1i8n with th¢ aitns and charitable objeclil'es of the Fouiidation. the Foundation Board approved the novation of the ggreeinenls to the Foundation, logieiher with the resulting liability of %22.2 inillion. This was executed beliveen 6 March 2024 and 23 May 2024 and fvniial Iiquidaiion ofthe French Foundaiion look place on 12 July 2024. Al their meeting on 24 April 2024. the TnL£teeq approTred Fondation CHANEL Eecon]ing the sole member of the US Foundation. with Chanel,Inc. sleppinLT dow'n as Ilie sole niembei". Subsequeiitlv, Ilie US Foundation became a subsidiaiy of Fondalion CHANEL on 10 July 2024. Th¢ US Fuunddtiun Lvntinueb lu hav¢ a bvdr(I vf dir¢LIL)rs and Fondalivn CHANEL Truslegb Lalanyd Mdpp, Wylie, and Philippc Blondiaux wcr¢ appointed as dirc¢iors to th¢ US Foundation board on 10 July 2024. From 10 July 2024, ctsnsolidat¢d accounts will be prepartd tor the Charity group, with th¢ tirst s¢t of accounts beiiig prepai¢d tor th¢ loiig period gt accouiit to 31 Deceiiibei 2025. On 30 De¢¢mb¢r 2n24, Ihe Chariry re¢¢iv¢d 2 mon¢tary dongtion of USDS95,000,iYJO from Chatt¢l group company Chanel Limit¢d in respect ot-cllsli previously pledeed. This donation was iiol recognised gs income in the reporting pei-iod as it was received after tlie year end. The TTuslees coiisider this donation to be a significant 1-bala1]ce sheet eveiit. which w'ill maleriallv impact the Charity's future financial position and lillIeS. 28