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2023-12-31-accounts

Transforming Tomorrow Together

Annual Report and Financial Statements For the 12 months to 31[st] December 2023

Company Limited by Guarantee: 13669631 Registered Charity: 1196559

Administrative details

Trustees and Directors

Marc Boughton, Founder and Chair Appointed 8[th] October 2021 Jonathan Sykes Appointed 8[[th]] October 2021 Matthew Woods[[th]] October 2021

Appointed 8[[th]] October 2021 Appointed 8[[th]] October 2021

Registered Office

c/o Kreston Reeves LLP 9 Donnington Park 85 Birdham Road Chichester West Sussex PO20 7AJ

Appointments

Auditor: Kreston Reeves LLP 9 Donnington Park 85 Birdham Road Chichester West Sussex, PO20 7AJ Bankers: Coutts & Co 440 Strand London, WC2R 0QS Investment Manager: J.P. Morgan 60 Victoria Street London, EC4Y 0JP Legal Advisor: Withers LLP 20 Old Bailey London, EC4M 7AN

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Contents

Page 1. Administrative details……………………………………………………………….... 2 2. Contents………………………………………………………………………………. 3 3. Chair’s Report………………………………………………………………………… 4 4. Trustees Report………………………………………………………………………. 5 5. Objects and activities………………………………………………………………… 5 6. Grants approved, paid and committed……………………………………………... 7 7. Review of 2023 grants……………………………………………………………….. 8 8. Financial review……………………………………………………………………… 16 9. Structure, governance and management…………………………………………..18 10. Future Plans…………………….……………………………………………………. 20 11. Principal risks and uncertainties……………………………………………………. 20 12. Statement of Trustees’ responsibilities……………………………………………. 20 13. Trustees’ approval and authorisation……………………………………………… 21 14. Auditors report……………………………………………………………………….. 22 15. Financial statements………………………………………………………………… 26

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Chair’s Report

I am proud and delighted to present East Head Impact’s second Annual Report and audited financial statements.

We remain focused on making a quantifiable impact in the areas of Health, Education and the Planet consistent with United Nations’ Sustainability Development Goals, and have made excellent progress since the award of our first grant in March 2022. By 31[st] March 2024, the Trustees had approved the award of 16 single-year and multi-year grants aggregating £2,642,455 of which £1,044,409 had been paid, with the remaining £1,598,046 scheduled for payment during the course of the next three years. These grants cover all three of our targeted impact areas.

Further, we continue to increase the level of our grant making. In 2023, the award of £1,514,205 single and multi-year grants was approved compared with £583,250 in 2022, and instalments paid or due for payment in 2024 relating to grants already approved aggregate £778,228 (which compares with the aggregate of grants paid in 2023 of £446,159). This increase in activity reflects our strategy to build partnerships with strong leaders and support specific programmes with multi-year funding.

We also continue to monitor the impact of our funding carefully and are pleased to report the outcomes set out in the Trustees Report.

East Head Impact’s endowment is of course key to enabling us to focus on, and carry out our grant making activities for the foreseeable future, and we continue to build the investment portfolio with top tier, high quality assets with the objective of providing a stable and growing income over the long term.

Highlights in 2023 include:

We have established a solid base since inception and have made a strong start to 2024. In the first quarter of 2024, three multi-year grants aggregating £545,000 were approved of which £185,000 was paid, and we have further exciting grant making opportunities which we are in the process of analysing.

I would like to thank my fellow trustees and Head of Philanthropy & Operations for their continued help, advice and hard work in driving East Head Impact forward, and my thanks also to our investment managers, bankers and auditors for their ongoing support.

Marc Boughton Founder and Chair Date

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Trustees Report

For the 12 month period to 31[st] December 2023

The Trustees present East Head Impact’s Annual Report and audited financial statements for the 12 month period to 31[st] December 2023. The Annual Report serves the purposes of both a Trustees Report and a Directors Report under company law. The Trustees confirm that the Annual Report and audited financial statements comply with the current statutory requirements, the requirements of East Head Impact's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1[st] January 2019).

1. Objects and activities

1.1 Foundation of East Head Impact

East Head Impact was founded by Marc Boughton for the purpose of establishing an independent, self-funded charitable foundation. It was incorporated as a company limited by guarantee on 8[th] October 2021, was entered onto the Register of Charities by the Charity Commission for England and Wales on 12[th] November 2021, and received a donation of approximately £22 million in December 2021 which it uses to award charitable grants for the public benefit. It awarded its first grant in March 2022.

Sound health, access to a good education and sustainable employment on a thriving planet are vital to everyone. East Head Impact therefore seeks to deliver a quantifiable impact in these areas consistent with United Nations’ Sustainability Development Goals, namely:

In order to deliver this impact, East Head Impact is driven by the data, supporting strong leaders in proven and impactful interventions that can be scaled, measured and provide superior returns. It seeks to provide the charities it supports with advice in addition to multi-year funding, and build networks and partnerships across the private, governmental and philanthropic sectors.

1.2 Objects

Pursuant to its Articles of Association:

East Head Impact pursues these objects by awarding grants that are in accordance with its grant making policy and strategy, and which are in furtherance of a charitable purpose that offers an identifiable benefit to a significant section of the public.

In pursuing these objects and undertaking its grant making activities, the Trustees give due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

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1.3 Grant making policy and strategy

Policy

East Head Impact’s policy is to award grants which fall into the following three themes:

As part of its grant making decision processes, East Head Impact takes into account, inter alia, the extent to which the impact of its funding can be measured, the impact goals (or key performance indicators), the likelihood that those impact goals will be achieved, and the proposed monitoring and reporting of those impact goals.

Strategy

East Head Impact seeks to award grants in any given year across all its three grant making themes and to work with others to support its chosen charities. Accordingly, individual grants awarded to any one recipient in any one year will likely range between £50,000 to £200,000, with the option to award multi-year grants aggregating a higher figure.

East Head Impact uses its personal contacts and networks to identify grant making opportunities, and will co-fund with well-established charities, foundations and government agencies where appropriate. It is in the process of developing a brand and communications strategy which it anticipates will assist with identifying grant making opportunities.

In accordance with its Articles of Association and internal procedures, East Head Impact undertakes extensive due diligence prior to making a decision on whether to award a grant in order to establish, inter alia, the extent to which its funding will have an impact.

East Head Impact seeks to develop and build relationships with its grant recipients and combine expertise and capital in order to align interests and enhance scale and impact.

The amount of grants awarded by East head Impact each year is subject to a variety of factors including: (i) the impact of financial market movements and changes in asset valuations on its endowment and related income stream; and (ii) its ability to source grant making opportunities which fit with its grant making policy and impact objectives.

As a relatively new charitable foundation, East Head Impact will continue to develop and refine its grant making policy and strategy.

1.4 Impact measurement

Given the different nature and objectives of the activities of the charities and entities which East Head Impact seeks to support within its three grant making themes, the impact measurement undertaken by each such charity and entity may vary considerably and may not be comparable.

Further, East Head Impact’s grant awards may fund specific programmes and projects within such charities or entities thereby broadening impact measurement and diversity.

Accordingly, East Head Impact measures its own impact on the basis of the impact of each individual grant recipient on a separate and not on a collective basis.

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1.5 Funding

East Head Impact uses its endowment and related investment gains and income stream to pursue its objects and fund its grant making activities.

East Head Impact is not required to undertake external fundraising.

2. Grants approved, paid and committed

2.1 Grants approved and paid in 2023

In the 12 month period to 31[st] December 2023, East Head Impact:

The grants approved and paid in 2023 were as follows:

Recipient

Blue Marine Foundation (Solent Sea scape Project)
United World Schools

Dallaglio RugbyWorks

Chichester Harbour Conservancy (Solent Seascape Project)
West Sussex Mind

Premier Rugby Ltd





The grants approved and paid related to:


•
The Planet:

•
Education:

•
Health:

 Approved
£1,000,007
£514,198
-
£1,514,205		 66%
34%
-
100%		 Paid
£198,289
£197,870
£50,000
£446,159		 45%
44%
11%
100%

2.2 Grants approved and paid since inception

In the 1[st] Quarter 2024, three further multi-year grants aggregating £545,000 were approved of which £185,000 was paid.

The aggregate of the grants approved and paid between the first grant award in March 2022 and 31[st] March 2024 are as follows:

16 £2,642,455 £1,044,409

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2.3 Grant commitments

Grant commitments (approved and scheduled for payment) aggregate:

• As at 31[st] December 2023: £1,238,046 • As at 31[st] March 2024: £1,598,046

3. Review of 2023 grants

A review of the grants approved and paid in 2023 is set out below.

3.1 Planet themed grants

(i) Blue Marine Foundation (Solent Seascape Project)

Purpose of grant

The Trustees approved the award of a grant of £856,407 over a five-year period to the Blue Marine Foundation (Blue Marine) for the purpose of co-funding the £4,775,056 Solent Seascape Project (SSP). £169,001 of this grant award was paid to Blue Marine in 2023.

As stated below, the Trustees also approved the award of a grant of £143,600 over a five-year period to Chichester Harbour Conservancy (CHC) for the purpose of co-funding CHC’s participation in the SSP. As a result, East Head Impact’s co-funding of the SSP aggregates £1,000,007.

Overview of Blue Marine Foundation

Blue Marine is dedicated to protecting and restoring life in the ocean, which it considers to be critical if the world is to mitigate and adapt to climate change. It is a registered charity (1137209) founded in 2010 and has grown rapidly, acquiring an international reputation for its ambition, connections and ability to deliver environmental projects at pace.

Blue Marine’s vision is a healthy ocean, abundant with life, that supports people and the climate. Its mission is to ensure the effective protection of at least 30% of the ocean by 2030 and the sustainable management of the whole ocean, and to support the livelihoods of coastal communities through the recovery of marine biodiversity.

Blue Marine acts as a catalyst to protect and restore life in the ocean. It works in partnership with small-scale fishers, local organisations and governments to deliver marine conservation and restoration solutions to the climate and biodiversity crisis.

It uses science, community engagement, media and legal campaigns, investigations, education initiatives and policy work to deliver conservation impact. It intervenes strategically but without geographic restriction, responding to the needs of the marine environment.

Blue Marine seeks to achieve its mission through four strategic pillars:

Blue Marine works in any area of the world where its interventions can deliver tangible and rapid results. It has secured commitments to protect over four million square kilometres of ocean, restored key habitats, established sustainable models of fishing and inspired thousands of children and adults through its films and educational programmes. Blue Marine currently operates in 24 countries around the world and is currently managing over 50 conservation projects located in, among other areas, the UK, the UK Overseas Territories, Namibia, the Maldives and the Mediterranean.

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Blue Marine is innovative in the blue carbon field and is seeking to prove the value of blue carbon habitat restoration in the UK. It has also pioneered native oyster habitat restoration in the Solent, restoring oyster reefs and delivering over 100,000 oysters onto the reefs.

The Solent Seascape Project

The Solent strait covers an area of 522 square kilometres between mainland England and the Isle of Wight, and contains dynamic and estuarine habitats bursting with life.

The SSP is the first of its kind in the UK to initiate seascape recovery at scale. Its vision is to protect and restore at least 30% of the Solent’s seascape, tipping the balance from a degraded state to a naturally expanding, connected and productive ecosystem. By restoring and connecting the Solent’s seascape, the SSP is seeking to provide nature-based solutions to many of the issues affecting the seascape and the people who depend on it, as well as helping to fight the impacts of climate change. The SSP will pioneer and monitor the impact of large-scale blue carbon restoration and act as a test site for implementation and further development of blue carbon methodologies. It will quantify the carbon sequestration, nitrate removal and biodiversity enhancement capacity of seascape habitats and develop a stacked credit scheme for seascape recovery.

The five key aims of the SSP are to:

Blue Marine has nine partners in the SSP - the Royal Society for Protection of Birds, the Hampshire & Isle of Wight Wildlife Trust, CHC in partnership with its Chichester Harbour Protection and Recovery of Nature (CHaPRoN) operating arm, the University of Portsmouth, the Isle of Wight Estuaries Project, Coastal Partners, Project Seagrass, Natural England and the Environment Agency. In accordance with the project agreements, each partner has specific deliverables and responsibilities allocated to it.

Funding of Solent Seascape Project

The budgeted cost of the SSP of £4,775,056 is fully funded with grants of: (i) £3,571,429 from the Endangered Landscapes & Seascapes Programme (ELSP); (ii) £1,000,007 from East Head Impact (which is comprised of the £856,407 grant to Blue Marine and the £143,600 grant to CHC (ChaPRoN)); and £203,621 from two other funders.

In accordance with a project funding agreement, Blue Marine will allocate portions of East Head Impact’s grant of £856,407 to each of the SSP partners to co-fund the budgeted costs of their specific deliverables and responsibilities over the five-year period (except for CHaPRoN’s budgeted costs which are being co-funded by the separate £143,600 grant from East Head Impact). (East Head Impact’s grant to CHaPRoN preceded its grant to Blue Marine.)

The SSP is one of 14 large-scale restoration projects funded by the ELSP. The ELSP is building a future in which landscapes and seascapes are enriched with biodiversity, establishing resilient, more self-sustaining ecosystems that benefit both nature and people. It is managed by the Cambridge Conservation Initiative, a collaboration between 10 leading biodiversity conservation organisations and the University of Cambridge, in partnership with Arcadia. Arcadia is a charitable foundation that works to protect nature, preserve cultural heritage and promote open access to

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knowledge – since 2002, Arcadia has awarded more than US$1 billion to organizations around the world.

Impact of Solent Seascape Project

The SSP outcomes over its five-year period include:

The SSP outcome targets for 2040 include:

Activities in the first year of the SSP included: commissioning a ‘Solent State of Nature Report’ and a seascape-wide data mapping portal to inform a ‘Seascape Recovery Plan’; commenced a scientific monitoring programme for the Solent; and restored a 0.25 hectare oyster reef in the River Hamble and a 0.34 hectare saltmarsh in West Itchenor. The SSP was also selected by Plan Vivo as one of seven international trial projects for the purpose of developing a methodology for the design of a novel ‘high-integrity’ biodiversity credit.

(ii) Chichester Harbour Conservancy (Solent Seascape Project)

Purpose of grant

The Trustees approved the award of a grant of £143,600 over a five-year period to CHC for the purpose of funding CHC’s £569,582 participation in the SSP not funded by the Endangered Landscapes & Seascapes Programme. £29,288 of this grant award was paid to CHC in 2023.

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Overview of Chichester Harbour Conservancy

CHC is a Statutory Harbour Authority which was created by the 1971 Chichester Harbour Conservancy Act for the purpose of protecting the interests of navigation and the conservation of nature in Chichester Harbour. Under the Act, CHC has various duties and powers covering the use of Chichester Harbour by pleasure craft and navigation and the conservation of nature, and gives CHC jurisdiction over the land and water within the Chichester Harbour. CHC is unique from the perspective that it is the only Statutory Harbour Authority in the UK with responsibility for a Natural Landscape (previously referred to as an Area of Outstanding Natural Beauty).

Chichester Harbour was designated an AONB in 1964 with the primary purpose of conserving and enhancing the natural beauty of its landscape and protecting its valuable wildlife, habitats, geology, heritage and scenic views. Chichester Harbour’s other designations include a Special Area of Conservation given threats to its internationally important habitats and species, a Special Protection Area under the European Union’s Biodiversity Birds Directive, and a Site of Special Scientific Interest (SSSI) given its fauna, flora and geological features. Chichester Harbour has an abundance of wildlife and plants which include birds, seals, fish, oysters, water voles, hedgehogs, orchids, sea kale and sea lavender.

Chichester Harbour has the seventh largest expanse of saltmarsh in the UK. Saltmarsh provides multiple ecosystem services benefits including carbon sequestration, nutrient removal, improved water quality, nursery habitats for fish, habitats for nesting birds and other biodiversity benefits. A Condition Review of Chichester Harbour by Natural England in 2021 downgraded the Harbour’s SSSI status from ‘Unfavourable Recovering’ to ‘Unfavourable Declining’, in large part due to the continued loss of saltmarsh. Natural England concluded that Chichester Harbour had lost 58% of its saltmarsh between 1946 and 2016, and recommended that at least 552 hectares of saltmarsh be restored for SSSI designation purposes (and ideally up to 717 hectares in order to bring the saltmarsh up to 1946 levels) and potential sources of funding be identified.

CHC conducts its nature recovery activities in partnership with its Chichester Harbour Protection and Recovery of Nature (CHaPRoN) operating arm. CHaPRoN’s key aims are to restore ecosystems to favourable condition, increase biodiversity, achieve greater resilience to climate change, sequester blue carbon and contribute to net zero, improve water quality, maximise nature friendly farming opportunities and connect people with nature. CHaPRoN’s vision for Chichester Harbour in 2050 is to have created a harbour that functions naturally as a healthy and thriving ecosystem, maximising ecosystem services benefits and supporting nature recovery for generations to come. In seeking to achieve its aims, CHaPRoN works in collaboration with organisations such as the Environment Agency, Natural England, the RSPB, Coastal Partners and the Sussex Inshore Fisheries & Conservation Authority.

Impact of CHaPRoN’s participation in Solent Seascape Project

In accordance with the partnership agreements, CHaPRoN’s SSP deliverables and responsibilities within Chichester Harbour include leading the development and delivery of saltmarsh restoration measures, undertaking survey work to identify potential seagrass meadow restoration sites, bird monitoring, supporting oyster restoration and seagrass meadow restoration initiatives, and public education and engagement.

To that end, in 2023 CHaPRoN: (i) undertook a trial to restore an area of saltmarsh in West Itchenor using the ‘Beneficial use of Dredged Sediment (BuDs) restoration method; (ii) appointed a Nature Recovery Officer to support habitat restoration projects and a Communications & Engagement Officer to handle publicity and engagement with stakeholders; (iii) commissioned a report to identify the condition of saltmarsh and opportunities for saltmarsh restoration in Chichester Harbour; and (iv) commissioned two feasibility studies to explore in detail options for saltmarsh restoration at two sites in the Harbour. Surveys to identify suitable sites for the protection and active restoration of seagrass meadows will be undertaken during the course of 2024.

In February 2023, the BuDs restoration saltmarsh trial at West Itchenor involved the placing of 1,300 cubic metres of sediment dredged from a marina in Chichester Harbour onto a 0.34-hectare area of deteriorated saltmarsh using a combination of barges, pontoons, a winch system, an

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innovative ‘drag box’ and a GPS guidance system. The saltmarsh is now being monitored to measure the stability of the recharge sediment and its ecological development, including the extent of colonisation of saltmarsh plant species. The trial demonstrated that the BuDs restoration method and systems used are technically viable, and the results will be used to inform future saltmarsh restoration projects.

In August 2023, the then Secretary of State for Environment, Food and Rural Affairs visited the restored West Itchenor saltmarsh and commented “The Saltmarsh Restoration Trial in Chichester Harbour is an innovative and exciting approach to nature recovery. Saltmarsh is declining at an alarming rate; it has been inspiring to see this ground-breaking initiative to restore a habitat which is so important in storing carbon and mitigating climate change”.

3.2 Education themed grants

(iii) United World Schools

Purpose of grant

The Trustees approved the award of grant of £357,520 over a three-year period to United World Schools for the purpose of supporting UWS with the next stage of its expansion into Madagascar by funding: (i) the operating costs of a training programme for teachers who will work in 25 UWS schools located in the southwest of Madagascar; (ii) the operating costs of four UWS schools located in the same region which were built and opened in 2022/23; and (iii) the capital costs of furniture, handwashing facilities and playgrounds for the four schools. £119,920 of this grant award was paid to UWS in 2023.

This 2023 grant follows-on from East Head Impact’s award of a single year grant of £81,000 to UWS in 2022 for the purpose of funding the construction of two schools in Nepal and their operating costs for a two-year period.

Overview of United World Schools

UWS is a registered charity (1187721) with a vision of Zero Education Poverty – a world where every child can reach their full potential through education. UWS builds and runs primary schools for children, who have been marginalised from quality education, living in remote areas of Nepal, Cambodia, Madagascar and Myanmar. It provides children with quality and inclusive education by working in partnership with local communities and runs training programmes for the teachers who work in its schools. UWS works with communities to build primary schools and train community members as teachers, providing a low cost and sustainable way to improve, through education, life opportunities for children in some of the world’s most remote and marginalised communities.

Since its foundation in 2008, UWS has established 311 schools, 68 of which have transitioned to the state education system, and provided an education to over 63,800 children. Currently, 24,120 primary school children are enrolled in 243 UWS schools who are taught by 1,330 teachers trained by UWS. UWS’ goal is to reach 250,000 primary school children with a life changing education in the next 10 years.

Impact of the 2023 Madagascar grant

UWS successfully expanded into Madagascar in September 2021 and has since built and runs 11 primary schools in the southwest region, with 2,170 children enrolled and 66 new teachers trained. The plan for the next stage of its expansion is to increase the number of schools in the region to 25, and UWS has set a 10-year goal to build and run 200 primary schools, employ and train 500 teachers and enrol 80,000 children in Madagascar. In order to achieve these goals, UWS’s strategy to deal with a severe shortage of teachers in the country is to build and run eight regional Administration, Resource and Training Centres (ATRs) where UWS will train its teachers. The construction of the first of these ATRs in Andavadoaka was recently completed and will be used as a ‘local hub’ to train teachers in UWS’ 25 schools in the southwest region. The first training session in the Andavadoaka ATR took place in August 2023 and involved 140 teachers.

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The teacher training programme funded by East Head Impact over the three-year period will take place in the Andavadoaka ATR and involve four training courses of 1-2 weeks each year for 200 UWS teachers (eight per school) in this 25-school local hub, and four training courses each year for each of the 250 members of the School Support Committees (10 per school). The teacher training programme will be undertaken by a team of 11 UWS staff - an Education Specialist who will oversee the quality of education delivery and teacher training, two Education Managers who will be responsible for delivering the teacher training programme and eight School Mobilisers who will assess UWS’ schools and teacher performance and offer bespoke training in the classroom.

The four schools funded by East Head Impact over the three-year period are:

Impact of the 2022 Nepal grant

East Head Impact’s 2022 grant to UWS funded the construction of the Tembe village school in eastern Nepal and the Pipaldhara village school in central Nepal together with their operating costs for two years.

Construction of the Tembe village school was completed in January 2023. It is comprised of 11 classrooms, a library and washrooms, and 73 primary school children are currently enrolled who are taught by six teachers trained and employed by UWS. Literacy rates among adults in the village is 30% and 70% of the 275 primary school aged children were not in education prior to the opening of the school.

Construction of the Pipaldhara village school was completed in April 2024. It is comprised of five classrooms and washrooms, and 119 primary school children are currently enrolled who are taught by nine teachers trained and employed by UWS. Literacy rates among adults in the village is below 40% and 85% of the 159 primary school aged children in the village were not in education prior to the opening of the school.

(iv) Dallaglio RugbyWorks

Purpose of grant

The Trustees approved the award of a grant of £154,428 over a two-year period to Dallaglio RugbyWorks (DRW) for the purpose of co-funding DRW’s Enhanced Employment Programme (EEP). £75,700 of this grant award was paid to DRW in 2023.

This 2023 grant follows on from East Head Impact’s award of a single year grant of £50,000 to DRW in 2022 for the purpose of co-funding the development of ‘Player Profiles’, DRW’s digital app.

Overview of Dallaglio RugbyWorks

DRW is a registered charity (1130353) which, through its three-year RugbyWorks programme involving inter-actions in the classroom, on the rugby field and through Player Profiles, seeks to get

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disadvantaged young people between the ages of 12-18 who are disengaged from learning into sustained education, employment or training (EET). DRW’s purpose is to help young people change their lives and its mission is to ensure that those who have been excluded from school are not excluded from society, and to help support them in realising their full potential for the future. Its approach to achieve this mission is to use rugby as an engagement tool to develop their life skills, raise their aspirations, improve their physical wellbeing and focus on their mental health wellbeing.

DRW’s delivery involves: in Term Time, working in Alternative Provision, Pupil Referral Units and Exclusion Units to build relationships and trust with young people; in the evening, delivering programmes in local youth clubs, rugby clubs and street facilities to reach young people outside the school programme; during the holiday, delivering a programme to feed young people and keep them active outside of the Term Time which is open to all DRW attendees and all young people in the local area who are on free school meals; career taster days hosted by employers which are designed to give young people the chance to experience and be informed about a variety of employment opportunities; and Player Profiles which helps young people to set their goals, manage their progress, access employment options and stay in touch with DRW.

In 2022/23, 2,127 young people participated in DRW’s programmes, 87% of its young people were in EET aged 18, 83% showed increased mental resilience, 90% felt an improved sense of self-belief and self-management, 83% felt they had improved problem solving skills, 86% felt they had improved communication skills and 93% showed an improvement in teamwork skills.

Impact of the 2023 Enhanced Employment Programme grant

The majority of East Head Impact’s grant is funding additional staff recruited to deliver the EEP.

The objective of the EEP is to develop the employment skills of DRW’s young people and get them work ready. The EEP involves: career taster days; employment skills training with employers; developing skills relating to interviews, CV and application writing, public speaking, digital applications, critical thinking and problem solving; and guidance on workplace behaviour. DRW is also developing a ‘passport system’ which will allow its young people to collect certification stamps that will demonstrate their understanding of workplace-ready skills which DRW’s employer network will recognise as being akin to meeting entry-level requirements. Every DRW young person will participate if four career taster days each year with an employer which will enable them to understand the work environment and help them gain an awareness of accessible employment opportunities. The EEP will also help young people to identify and apply for employment opportunities through DRW’s employer and recruitment relationships. The EEP is delivered as part of DRW’s core RugbyWorks programme which develops teamwork skills, collaboration and leadership.

DRW’s research shows that a young person who has four or more meaningful encounters with an employer is 86% less likely to be in NEET (Not in Education, Employment or Training), and can earn up to 22% more in their career – the EEP will result in a substantial increase in such meaningful encounters with employers by DRW’s young people.

In 2022/23 (prior to East Head Impact’s grant to co-fund the EEP), 98% of DRW’s young people who participated in a career taster day felt they understood the work of the employer host, 81% found the day useful and productive, and 95% enjoyed the day, and by the end of 2022/23 over 80% of all participants agreed that their understanding of career options and opportunities available to them had improved as a result of the career taster days.

Impact of the 2022 Player Profiles grant

Player Profiles aims to fill an ‘aspiration gap’ by allowing its young people to assess, understand and address their skillset and skill gaps, and identify their goals and plan their progression against those goals. Player Profiles is intended to enhance DRW’s face-to-face delivery and not replace it, and to extend learning beyond the school day by providing opportunities to achieve valuable life skills and workplace skills through a series of app-based features including videos, games, challenges and support from peers and mentors.

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(v) Premiership Rugby’s HITZ programme

Purpose of grant

The Trustees approved the award of a grant of £2,250 to Premier Rugby Ltd (PRL) for the purpose of funding bursaries provided to learners participating in the HITZ programme who had been nominated by their Premiership Rugby clubs for a 2023 ‘HITZ Achievement Award’.

This 2023 grant follows on from East Head Impact’s award of a single year grant of £52,250 to PRL in 2022 for the purpose of co-funding the HITZ programme.

Overview of HITZ programme

HITZ is Premiership Rugby’s flagship education and employability programme organised by PRL and the Premiership Rugby Clubs and Foundations. HITZ uses rugby’s core values of teamwork, respect, enjoyment, discipline and sportsmanship to get young people not in education, employment or training back into education, training, apprenticeships and/or employment (EET). Over 23,000 14-24 year olds have been enrolled in HITZ since its inception in 2008.

Impact of HITZ programme

In 2021/22, 89% of the 213 learners enrolled on the ‘HITZ Learning Academy’ programme who were predominantly not in EET progressed into EET. In addition, 2,165 learners who were at risk of becoming not in EET were enrolled on the ‘HITZ on Track’ programme.

3.3 Health themed grants

(vi) West Sussex Mind

Purpose of grant

In 2022, the Trustees approved the award of a grant of £100,000 over a two-year period to West Sussex Mind (WSM) for the purpose of funding a new mental health programme designed to train ‘peer volunteers’ to use their own lived experience of mental health to help others. The first instalment of £50,000 of the grant award was paid in 2022 and the second instalment of £50,000 was paid in 2023.

In 2024, the Trustees approved a £50,000 increase in the grant to £150,000 for the purpose of funding a third year of the peer volunteer training programme (which will be paid towards the end of 2024).

Overview of WSM

WSM was founded in 1970 and is a registered charity (1155918) which supports people in West Sussex with their mental health, provides specialist mental health training, and campaigns to improve mental health services and promote an understanding of mental health issues. It is affiliated with Mind, the national mental health charity.

WSM’s objectives are: (i) to promote the preservation of good mental health, in particular around enabling and empowering everyone experiencing mental health problems to live with, manage and recover from their condition; and (ii) to relieve the needs of people with mental health problems by working to increase an understanding of mental health and mental health problems by gathering and disseminating information and working to raise awareness, promote understanding and challenge stigma and discrimination. To achieve these objectives, WSM offers a variety of services including the delivery of individual and group mental health and social support in person, by telephone or video calls to children, young people, families, adults and the elderly. WSM’s mental health services can also be accessed using its website and through courses and videos, and it works proactively and in partnership with many other health, social care and community organisations to deliver its support.

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In 2022/23, 45,139 individuals reached out to WSM, 6,230 individuals were provided directly with mental health support, and 24,959 individual and group mental health support interventions were delivered. WSM also provided mental health training to 12,449 individuals.

Impact of grant

WSM’s peer volunteer training programme involves the training of ‘peer volunteers’ to use their own experience of mental health to help others. The grant is funding the delivery of the training programme which creates opportunities for peer volunteers to help WSM deliver its services and develops a supportive pathway that will help peer volunteers take the next steps into either employment, external volunteering or further education. The programme aims to train over 60 peer volunteers who will support over 700 WSM service users over a three-year period.

In the first year of the training programme, 21 peer volunteers were trained who supported 178 WSM service users.

4. Financial review

4.1 Total return investment approach and objectives

As a result of its endowment, East Head Impact has a portfolio of investments and cash which it uses to fund its charitable activities. The performance of this portfolio over the long term is therefore a key component of the long-term sustainability of East Head Impact and its ability to make a charitable impact through its grant making.

The performance of the portfolio will vary year-on-year and will be affected by numerous factors including changes in global investment market volatility and returns (both yield and capital returns), investment strategy and short-to-long term investment return horizons for individual portfolio assets, foreign exchange movements and liquidity. In light of these factors and given its power to spend both income and capital, East Head Impact takes a total return approach by seeking to generate both income and capital growth and taking into account both realised and unrealised short-to-long term income, and capital and foreign exchange gains and losses when assessing, inter alia, the performance of its portfolio and the appropriate level of grant making.

Given this approach, East Head Impact’s objective is to pursue a long-term strategy of maximising sustainable charitable expenditure while maintaining the real value of its investment portfolio in perpetuity after expenditure. East Head Impact seeks to spend 4% of its investment portfolio in grant making each year over the long term while generating a 4% real return on its investment portfolio over a rolling 10-year period.

4.2 Investment portfolio asset allocation and diversification

In seeking to achieve a real return on its investment portfolio, East Head Impact invests in a range of assets including private assets and top tier alternative investment funds, publicly traded equity and debt securities, and term deposits. The strategy is to invest over 50% of the portfolio in alternative investments providing high growth returns over the longer term, with the remainder invested in a diversified portfolio of publicly traded and liquid, lower return investments and term deposits.

The portfolio is managed to ensure an appropriate level of liquidity and an exposure to foreign currency denominated assets which reflects an appropriate balance between risk and reward.

East Head Impact has invested in a private investment fund which backs climate tech entrepreneurs, and it takes into account Environmental, Social and Governance issues in the management of its investment portfolio.

4.2 Investment portfolio and performance

The value (in sterling terms) of the investment portfolio as at 31[st] December 2023 was £23,101,578

16

which represents a £1,482,940 (7%) increase in the value of the portfolio of £21,618,638 as at 31[st] December 2022 after payment of the 2023 grants and expenses of £531,488.

As at 31[st] December 2023, the portfolio was invested as to £6,552,541 in alternative investments, £9,150,395 in a publicly traded investment fund, £998,440 in corporate bonds and £6,400,202 in short-to-medium term deposits and cash. The alternative investments are primarily private equity and credit related, and the publicly traded investment fund is invested primarily in equity and fixed income securities.

In 2023, the investment portfolio generated interest income of £488,412 (£208,679 in 2021/22), investment income of £857,419 (£40,523 in 2021/22) and investment gains of £871,182 (investment loss of £173,033 in 2021/22). The increase in interest income reflects additional interest generated from the corporate bond portfolio and the increase in investment income reflects a higher level of distributions from alternative investments, and the swing from an investment loss to an investment gain was driven primarily by an increase in the market value of the holding in the publicly traded investment fund.

In 2023, alternative investments, deposits and cash denominated in United States Dollars and Euros generated a foreign exchange loss of £259,743 (foreign exchange gain of £403,445 in 2021/22) due to changes in the value of the Pound relative to the United States Dollar and Euro. (£235,955 of the foreign exchange loss of £259,743 in 2023 related to cash and deposits, and £23,788 to investments.)

Uncalled capital commitments relating to East Head Impact’s alternative investments aggregated £2,448,383 in sterling terms as at 31[st] December 2023 (£2,192,267 as at 31[st] December 2022).

4.4 Financial performance

Net income in 2023 amounted to £1,449,570 compared with a net loss of £259,505 in 2021/22 (excluding the donation of £21,955,025) and breaks down as follows:

Income
Interest income
Investment income


Expenses
Grants paid
Expenses
Foreign exchange bank revaluations
Net gains/(losses)
Net gains/(losses) on investments
Net Income/(Loss) excluding donations
 2023
£488,412
£857,419
£1,345,831

£446,159
£85,329
£235,955
£767,443
£871,182
£1,449,570
 2021/22
£208,679
£40,523
£249,202
£413,250
£125,563
(£203,139)
£335,674
(£173,033)		 2021/22
£208,679
£40,523
£249,202
£413,250
£125,563
£203,139)
(£259,505)

Net income in 2021/22 aggregated £21,695,520 after accounting for the donation of £21,955,025.

Reasons for the changes in income in 2023 are stated above.

Expenses in 2021/22 included non-recurring legal fees of £49,579 incurred in relation to the foundation of East Head Impact.

Of the expenses of £85,329 in 2023, £59,455 (70%) represent investment management fees and expenses (£54,908 in 2021/22).

17

As at 31[st] December 2023, approved but unpaid grant commitments aggregated £1,238,046 (£170,000 as at 31[st] December 2022). The increase in grant commitments reflects, inter alia, the strategy to support partners with multi-year grants.

4.5 Reserves policy

East Head Impact funds its charitable activities using its endowment and the income stream derived from it, it has a low and narrow cost base relative to its endowment, and the level of its grant making is, inter alia, at the discretion of the Trustees on an ongoing basis.

It is the intention of the Trustees to hold cash and liquid investments sufficient to cover uncalled capital commitments on investments, approved but unpaid grants, and budgeted grant making and operating costs on a rolling 12-month basis.

4.6 Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that East Head Impact has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies section of the financial statements.

4.7 Financial risk management

The Trustees have assessed the major risks to which East Head Impact is exposed, in particular those relating to its operations and finances, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

5. Structure, governance and management

5.1 Structure

East Head Impact is a company limited by guarantee (13669631) and a registered charity (1196559), its governing document is its Articles of Association, and its governing body is the Board of Trustees.

5.2 Appointment of Trustees

Three trustees were appointed upon the formation of East Head Impact, namely Marc Boughton (Founder and Chair), Matthew Woods and Jonathan Sykes.

In accordance with the Articles of Association, the Founder of East Head Impact was appointed a Trustee for an indefinite period of time, and Matthew Woods and Jonathan Sykes were appointed for an initial term of four years. Retiring Trustees may be reappointed, and the minimum required number of Trustees is two.

The appointment of any new trustees will take into account their charitable experience and ability to assist East Head Impact achieve its charitable objectives, and will involve in depth discussions with the Founder and the other Trustees on East Head Impact’s objectives and strategy.

5.3 Trustee powers

East Head Impact’s Articles of Association set out the powers and duties of the Trustees pursuant to which they control and manage East Head Impact and its assets. No committees have been established.

5.4 Delegation of Trustee duties and management

The Trustees have delegated certain duties to the Chair and the Head of Philanthropy & Operations

18

in order to carry out the day-to-day management of East Head Impact (who report to the Board of Trustees in the performance of such duties). These delegated duties include:

The duties of the Head of Philanthropy & Operations are carried out pursuant to a management services agreement. The role is performed as a volunteer and is unpaid.

East Head Impact has no employees and no other volunteers.

Pursuant to an investment management mandate, the Trustees have delegated certain duties to J.P Morgan to manage a portion of East Head Impact’s investment portfolio under the direction of the Chair.

East Head Impact has corporate governance procedures in place which have been approved by the Trustees.

5.5 Trustee and management experience

The Trustees have a broad range of experience:

The Head of Philanthropy & Operations qualified as a Chartered Accountant with Ernst & Young prior to spending over 25 years as a mergers & acquisitions advisory banker with Rothschild & Co, a leading global financial services group involved in financial advisory, wealth and asset management and merchant banking.

5.6 Related party transactions

The Trustees receive no remuneration in the performance of their duties.

19

Related party transactions are stated in note 21 to the financial statements.

6. Future Plans

East Head Impact’s future plans include:

East Head Impact assesses the impact achieved by its grant recipients on an ongoing basis and, based on that impact, makes appropriate decisions on future grant awards and changes to its grant making policy, strategy and procedures as the Trustees deem appropriate.

7. Principal risks and uncertainties

The principal risks and uncertainties faced by East Head Impact are:

8. Statement of Trustees' responsibilities

8.1 Responsibilities

The Trustees of East Head Impact, who are also its directors for the purposes of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial period. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of East Head Impact and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain East Head Impact's transactions and disclose with reasonable accuracy at any time the financial position of East Head Impact and enable them to ensure that the financial statements

20

comply with the Companies Act 2006. They are also responsible for safeguarding the assets of East Head Impact and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

8.2 Disclosure of information to auditors

Each of the persons who were Trustees at the time when this Trustees Report was approved has confirmed that:

8.3 Auditors

The auditors, Kreston Reeves LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

9. Trustees’ approval and authorisation

This report was approved by East Head Impact’s Trustees on 23[rd] July 2024 and the Chair was authorised to sign the report on behalf of the Board of Trustees.

Marc Boughton Founder and Chair

Date

21

East Head Impact

(A company limited by guarantee)

Independent auditors' report to the Members of East Head Impact

Opinion

We have audited the financial statements of East Head Impact (the 'charity') for the year ended 31 December 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

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

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

Page 22

East Head Impact (A company limited by guarantee)

Independent auditors' report to the Members of East Head Impact (continued)

Other information

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 23

East Head Impact

(A company limited by guarantee)

Independent auditors' report to the Members of East Head Impact (continued)

Auditors' responsibilities for the audit of the financial statements

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

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

Capability of the audit in detecting irregularities, including frau d

Based on our understanding of the charity and sector, and through discussion with the trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to anti-bribery and anti -money laundering laws. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), the Companies Act 2006 and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustee’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to posting inappropriate journal entries and management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of investments. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or Page 24

East Head Impact

(A company limited by guarantee)

Independent auditors' report to the Members of East Head Impact (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Kreston Reeves LLP

Chartered Accountants Statutory Auditor

Chichester

Date: 1 August 2024

Page 25

East Head Impact

(A company limited by guarantee)

Statement of financial activities (incorporating income and expenditure account) For the year ended 31 December 2023

Note
Income and endowments from:
Donations and legacies
4
Investments
5
Total income and endowments
Expenditure on:
Charitable activities:
6,7
Grants to institutions
. Other charitable activities
Total expenditure
Net (expenditure)/income before net
gains/(losses) on investments
Net gains/(losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Endowment
funds
2023
£
-
-
-
-
59,455
59,455
(59,455)
871,182
811,727
21,695,520
811,727
22,507,247		 Unrestricted
funds
2023
£
-
1,345,831
1,345,831
446,159
261,829
707,988
637,843
-
637,843
-
637,843
637,843		 Total
funds
2023
£
-
1,345,831
1,345,831
446,159
321,284
767,443
578,388
871,182
1,449,570
21,695,520
1,449,570
23,145,090		 Total
funds
2022
£
21,955,025
249,202
22,204,227
413,250
(77,576)
335,674
21,868,553
(173,033)
21,695,520
-
21,695,520
21,695,520

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 29 to 39 form part of these financial statements.

Page 26

East Head Impact

(A company limited by guarantee) Registered number: 13669631

Balance sheet As at 31 December 2023

Note
Fixed assets
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Endowment funds
14
Unrestricted funds
14
Total funds		 53,277
6,400,202
6,453,479
(9,765)		 2023
£
16,701,376
16,701,376
6,443,714
23,145,090
23,145,090
22,507,247
637,843
23,145,090		 86,182
6,756,209
6,842,391
(9,300)		 2022
£
14,862,429
14,862,429
6,833,091
21,695,520
21,695,520
21,695,520
-
21,695,520

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Marc Boughton Founder and Chair Date:

The notes on pages 29 to 39 form part of these financial statements.

Page 27

East Head Impact (A company limited by guarantee)

Statement of cash flows
For the year ended 31 December 2023
Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends and interest from investments
Proceeds from sale of investments
Purchase of investments
Deductions from capital (investment accounts)
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 29 to 39 form part of these financial statements		 2023
£
(734,073)
1,345,831
850,886
(1,883,645)
64,994
378,066
(356,007)
6,756,209
6,400,202		 2022
£
21,542,469
249,202
211,702
(15,293,270)
46,106
(14,786,260)
6,756,209
-
6,756,209

Page 28

East Head Impact (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

1. General information

The charity is a private limited company limited by guarantee incorporated in England and Wales. The members of the company and the trustees are named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The registered office of the charity is:

9 Donnington Park, 85 Birdham Road, Chichester, West Sussex, England, PO20 7AJ.

The principal place of business is:

10 St Leonards Terrace, London, United Kingdom, SW3 4QB.

2. Accounting policies

2.1 Basis of preparation of financial statements

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

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

2.2 Going concern

The financial statements have been prepared on a going concern basis. The Trustees have assessed the financial position of the charity and based on the net asset position and the discretion the charity has over its level of activity and expenditure they have concluded that the charity can continue to operate for at least 12 months beyond the signing date of these financial statements.

2.3 Income

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

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.4 Expenditure

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

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

Page 29

East Head Impact

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

2. Accounting policies (continued)

2.4 Expenditure (continued)

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

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

2.6 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of financial activities.

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

2.8 Debtors

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

2.9 Cash at bank and in hand

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

2.10 Liabilities and provisions

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

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

Page 30

East Head Impact (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

2. Accounting policies (continued)

2.11 Financial instruments

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

2.12 Fund accounting

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

Endowment funds comprise capital donated to the charity, together with accumulated realised and unrealised investment gains or losses. The Trustees have the power to expend the endowment funds. Investment management charges and other professional fees relating directly to the fund are charged against the fund. Income arising on the endowment funds can be used in accordance with the objects of the charity and is included in unrestricted income.

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

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity holds certain investments for which open market valuations are not available. The valuations for these investments are provided by expert investment managers. See note 11 for the year-end valuation of investments held by the Charity.

4. Income from donations and legacies

Donations
Total 2022		 Endowment
funds
2023
£
-
21,955,025		 Total
funds
2023
£
-
21,955,025		 Total
funds
2022
£
21,955,025

Page 31

East Head Impact

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

5. Investment and interest income

Unrestricted
funds
2023
£
Investment and interest income
1,345,831
Total 2022
249,202		 Total
funds
2023
£
1,345,831
249,202		 Total
funds
2022
£
249,202

6. Analysis of grants

Grants
Total 2022		 Grants to
Institutions
2023
£
446,159
413,250		 Total
funds
2023
£
446,159
413,250		 Total
funds
2022
£
413,250

The Charity awards grants under three key themes; Education, Health and the Planet. Grants in the current year were £50,000 under the Health theme, £197,870 under the Education theme and £198,289 under the Planet theme.

Grants paid to institutions totalled £446,159, and were made up of the following individual grants:

Recipient Grant amount (£)
2023 2022
United World Schools
 119,920 81,000
Premiership Rugby’s HITZ programme 2,250 52,250
Dallaglio RugbyWorks 75,700 50,000
West Sussex Mind 50,000 50,000
Chichester Harbour Conservancy 29,288
Blue Marine Foundation 169,001
Old Coulsdon Centre 30,000
Impetus - The Private Equity Foundation 50,000
Podium Analytics 100,000
Total 446,159 413,250

Page 32

East Head Impact (A company limited by guarantee)

Notes to the financial statements

For the year ended 31 December 2023

7. Analysis of expenditure on charitable activities

Summary by fund type

Grant funding activities
Total 2022		 Endowment
funds
2023
Unrestricted
funds
2023
£
£
59,455
707,988
54,908
280,766		 Total
2023
£
767,443
335,674		 Total
2022
£
335,674

8. Analysis of expenditure by activities

Grant funding activities
Total 2022		 Grant
funding
activities
2023
£
446,159
413,250		 Support
costs
2023
£
321,284
(77,576)		 Total
funds
2023
£
767,443
335,674		 Total
funds
2022
£
335,674

Page 33

East Head Impact (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Advertising and marketing
Audit and accountancy
Bank fees, Investment management fees and expenses
Insurance
Legal and professional
IT software and consumables
Interest paid
Foreign exchange bank revaluations		 Grant
funding
activities
2023
£
-
13,006
63,307
427
-
352
8,237
235,955
321,284		 Total
funds
2023
£
-
13,006
63,307
427
-
352
8,237
235,955
321,284		 Total
funds
2022
£
1,007
11,040
54,953
1,733
49,579
287
6,964
(203,139)
(77,576)

Investment management fees, foreign exchange revaluations and bank interest and charges included in support costs totalled £307,499 (2022: -£141,222).

Support costs excluding investment management fees, foreign exchange revaluations and bank interest and charges totalled £13,785 (2022: £63,646).

9. Auditors' remuneration

The auditors' remuneration amounts to an auditors' fee of £9,765 ( 2022 - £9,300 ) , and other services of £3,241 (2022 - £1,740).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year, no Trustees expenses were incurred (2022 - £NIL).

Page 34

East Head Impact

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

11. Fixed asset investments

Valuation
At 1 January 2023
Additions
Disposals
Revaluations
Capital account deductions
Foreign exchange movement
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Investments
£
14,862,429
1,883,645
(850,886)
894,970
(64,994)
(23,788)
16,701,376
16,701,376
14,862,429

The carrying value of investments includes holdings in alternative investment funds of £6,552,541 (2022: £5,155,003), corporate bonds of £998,440 (2022: £1,482,466) and diversified investment funds of £9,150,395 (2022: £8,224,960).

12. Debtors

Due within one year
Prepayments and accrued income
13.
Creditors: Amounts falling due within one year
Accruals and deferred income		 2023
£
53,277
53,277
2023
£
9,765		 2022
£
86,182
86,182
2022
£
9,300

Page 35

East Head Impact (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

14. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Endowment funds
Endowment Funds
Total of funds		 Balance at 1
January
2023
£
-
21,695,520
21,695,520		 Income
£
1,345,831
-
1,345,831		 Expenditure
£
(707,988)
(59,455)
(767,443)		 Gains/
(Losses)
£
-
871,182
871,182		 Balance at
31
December
2023
£
637,843
22,507,247
23,145,090

The expendable endowment fund was established by a donation in the prior reporting period (see note 21). The trustees have the power to spend the income and capital in accordance with the Trust's charitable objectives.

Page 36

East Head Impact (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

14. Statement of funds (continued)

Statement of funds - prior year

Balance at
31
Transfers Gains/ December
Income Expenditure in/out (Losses) 2022
£ £ £ £ £
Unrestricted funds
General Funds 249,202 (280,766) 31,564 - -
Endowment funds
Endowment Funds 21,955,025 (54,908) (31,564) (173,033) 21,695,520
Total of funds 22,204,227 (335,674) - (173,033) 21,695,520
Analysis of net assets between funds
Analysis of net assets between funds - current year
Endowment Unrestricted Total
funds funds funds
2023 2023 2023
£ £ £
Fixed asset investments 16,063,533 637,843 16,701,376
Current assets 6,453,479 - 6,453,479
Creditors due within one year (9,765) - (9,765)
Total 22,507,247 637,843 23,145,090
Analysis of net assets between funds - prior year
Endowment Total
funds funds
2022 2022
£ £
Fixed asset investments 14,862,429 14,862,429
Current assets 6,842,391 6,842,391
Creditors due within one year (9,300) (9,300)
Total 21,695,520 21,695,520

15. Analysis of net assets between funds Analysis of net assets between funds - current year

Page 37

East Head Impact (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

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

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
(Gains)/losses on investments
Dividends and interests from investments
Decrease/(increase) in debtors
Increase in creditors
Net cash provided by/(used in) operating activities
17.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
18.
Analysis of changes in net debt
At 1
January
2023
Cash flows
£
£
Cash at bank and in hand
6,756,209
(120,052)
6,756,209
(120,052)		 2023
£
1,449,570
(871,182)
(1,345,831)
32,905
465
(734,073)
2023
£
6,400,202
6,400,202
Changes in
market
value and
exchange
rate
movements
£
(235,955)
(235,955)		 2022
£
21,695,520
173,033
(249,202)
(86,182)
9,300
21,542,469
2022
£
6,756,209
6,756,209
At 31
December
2023
£
6,400,202
6,400,202

19. Uncalled capital commitments

The charity has uncalled capital commitments relating to its investment funds totalling £2,448,383 (2022: £2,192,267).

Page 38

East Head Impact (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2023

20. Grant commitments

The charity has £1,238,046 (2022: £170,000) of grant funding commitments to meet, should the grantees meet their respective grant conditions.

21. Related party transactions

Marc Boughton is the Founder and Chair of East Head Impact:

Jonathan Sykes is a Trustee of East Head Impact. East Head Impact awarded a grant of £2,250 (2021/22: £52,250) to Premier Rugby Ltd. A Jonathon Sykes family member is a senior employee of Premiership Rugby.

Matthew Woods is a Trustee of East Head Impact and a partner of Withers LLP, East Head Impact’s legal adviser. In 2021/22:

Page 39