**Charity Registration No. 205798** 

## **SMALLWOOD TRUST** 

**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** 



## **SMALLWOOD TRUST** 

## **LEGAL AND ADMINISTRATIVE INFORMATION** 

|**Patron**|Her Majesty The Queen|
|---|---|
|**Trustee**|Smallwood Trust (Trustee) Limited|
|**Directors of Trustee Company**|D Myers (Chair)|
||M Margrie (Deputy Chair)|
||J R Bailey|
||C Hine|
||M Toman (resigned 31 December 2020)|
||Dr A Shah (appointed 15 December 2020)|
||F Vaid (appointed 15 December 2020)|
|**Chief Executive**|P Carbury|
|**Charity number**|205798|
|**Principal address**|Lancaster House|
||25 Hornyold Road|
||Malvern|
||Worcs|
||WR14 1QQ|
|**Auditor**|Haysmacintyre LLP|
||10 Queen Street Place|
||London|
||EC4R 1AG|
|**Bankers**|Lloyds Bank plc|
||48 Belle Vue Terrace|
||Malvern|
||Worcestershire|
||WR14 4PZ|
||CCLA Investment Management Limited|
||80 Cheapside|
||London|
||EC2V 6DZ|
|**Investment managers**|Investec|
||30 Gresham Street|
||London|
||EC2V 7QN|
||Newton Investment Management Limited|
||BNY Mellon Centre|
||160 Queen Victoria Street|
||London|
||EC4V 4LA|





## **SMALLWOOD TRUST** 

## **CONTENTS** 

||**Page**|
|---|---|
|Trustee’s report|1 - 16|
|Independent auditor's report|17 - 19|
|Statement of financial activities|20|
|Balance sheet|21|
|Statement of cash flows|22|
|Notes to the financial statements|23 – 37|
|Appendix: Full list of grants awarded|38 - 41|





## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

Smallwood Trust (Trustee) Limited (“the trustee”) presents its report and financial statements for the year ended 31 December 2020. 

The financial statements have been prepared in accordance with the accounting policies set out in note 1 of the financial statements and comply with the Trust’s governing documents (The Charity Commission Schemes of 2 November 1917, 9 November 1928,  29th October 2019 and the section 280 resolution of the trustees dated 18 May 2017), the articles of association of Smallwood Trust (Trustee) Limited, the Charities Act 2011 and “the Statement of Recommended Practice for charities (SORP 2019) (Second Edition, effective 1 January 2019). 

## **OBJECTIVES AND ACTIVITIES** 

## **Charitable objects** 

The charitable object as set out in the Schemes is the application of the income of the Trust for the benefit of women in poverty. 

## **Public Benefit** 

The trustee confirms that it has complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the Trust. The trustee confirms that in planning the activities of the Trust, the Trustees have given careful consideration to how the Trust has fulfilled its charitable objectives. 

The Trust’s primary purpose is to provide direct financial assistance by way of grants to women on low incomes and to provide grant funding to charities, social enterprises and other non-profit organisations to help deliver the Trust’s mission of enabling women to be financially resilient. 

Research suggests that 1 in 4 women, that’s 8 million women, in the UK will retire below the poverty line. Low income in retirement is often linked to earlier low pay or time out of employment (source: Joseph Rowntree Foundation). Research from the Women’s Budget Group suggests that women and female dominated employment sectors have been disproportionately affected by the global COVID-19 pandemic – this has resulted in a significant increase in demand for funds. 

The Trust’s funding aims to help women in or at risk of poverty become self-reliant and financially independent both through the provision of direct financial assistance and funding for non-profit organisations that aim to encourage financial stability and help overcome barriers such as low income, debt, economic abuse, poor housing or mental health concerns. 

There is clear evidence for our approach to ensuring public benefit: 

- Women’s access to resources and opportunities is typically narrower and more constrained than that of men 

- Disadvantaged women have poorer labour market attachment, and are more likely to head povertyprone households 

- Young women make up the majority of people not in employment, education and training, many because of caring for others 

- The rate of poverty amongst ethnic minority women in the UK is much higher than other groups 

- • The links between gender and poverty are most visible in single adult households 

- Part-time work and low pay are more prevalent among women as a result of gender discrimination and constraints due to caring 

- Persistent poverty is more likely to involve women and women are also more likely to suffer recurrent spells of poverty 

- 1 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

Therefore, to help meet our charitable objectives, the trustee has agreed the following vision, mission and values statements: 

## **VISION** 

Our vision is a country where no woman lives in poverty. 

## **MISSION** 

Our mission is to enable women to be financially resilient. 

## **VALUES** 

- Fairness and honesty in everything we do 

- Pride in our work and the Trust 

- Good stewardship of our resources 

- A proactive commitment to continuous improvement 

- Innovation as we enable women to meet their potential 

## **AIMS AND STRATEGIES TO ACHIEVE OBJECTIVES** 

The Trust’s strategic framework aims to enable women in or at risk of poverty to build a confident, positive and secure future. The trustee has identified three ways to maximise impact: 

## **1. Direct funding and support for economically disadvantaged women** 

Grants for individuals to help relieve financial needs and hardship, and support to help women on low income through a tough situation. Funding is directed to women on low income who are living on a tight budget and/or in receipt of benefits and facing financial difficulty. Our needs-led funding helps unlock barriers to financial resilience, helping to provide stability, security and safety. 

## **2. Funding for frontline voluntary sector organisations** 

Grants to organisations for projects that are developing sustainable services relevant to women’s needs and which target women with multiple and complex needs. We are also interested in funding innovative ways to help women along the employability pathway, helping women to access flexible and quality job opportunities. 

## **3. Funding for policy and research** 

Grants to voluntary sector organisations who are undertaking practical policy initiatives leading to improved economic and social outcomes for women. Under this theme, we award grants to organisations that strengthen the voice of women on issues relating to financial exclusion and support practical policy initiatives that support the potential for system change and improving the lives of women. 

This approach enables the Trust to continue to develop its knowledge of the main barriers to helping women out of poverty and enable us to learn from practical projects that can inform our future funding strategy. 

- 2 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **ACHIEVEMENTS AND PERFORMANCE** 

The following objectives were agreed for 2020: 

- 1 To approve total grant funding at an increased level. 

- 2 To roll-out the grants to individuals funding model to community grant partners. 

- 3 To undertake research and consultation with stakeholders to inform plans for the 135[th] anniversary of the Trust in 2021 and future strategic direction. 

- 4 To produce an Annual Impact Report which highlights the Trust’s learning, impact, monitoring and evaluation activities. 

- 5 To implement the Stabilisation Fund model to support the increase in the Trust’s grant-making. 

- 6 To undertake a board evaluation and additional board recruitment activities to continue to strengthen the governance of the Trust 

Since the 2020 objectives were agreed, the COVID-19 pandemic sent economic and social shockwaves across the world. Existing inequalities affecting women and the funding of the women’s sector were exacerbated. Like many organisations, Smallwood responded to the increased demand and need for support.  The majority of our effort during 2020 was on providing much needed emergency funding for women and the women’s sector, while reviewing how our grant funding can support the (eventual) recovery phase. 

Therefore, our report on achievements of our 2020 objectives naturally focuses on how we responded during the pandemic as follows: 

## **1.  To approve total grant funding at an increased level.** 

- We awarded £4,515,312 (2019: £1,430,382) in grant funds to individuals and organisations. This funding was more than three times the amount awarded in the previous year as we responded to the unprecedented pandemic. 

- We reached 19,000 women (2019: 2,848) across all our funded programmes and activities, an increase of 560 **%** . 

The funding of £4,515,312 was allocated across our main grant programmes as follows: 

|**Programme**|**Amount**|**% of funding allocated**|
|---|---|---|
|Grants to individual women for relief of poverty and|£722,962||
|progress towards stability||28%|
|Grants to community grant partners to make|£549,195||
|onwards grants to individual women|||
|Grants to frontline and women’s sector|£3,002,072|67%|
|organisations to build capacity and deliver services|||
|Grants to policy and research initiatives to highlight|£241,083|5%|
|the causes, consequences and solutions to|||
|gendered poverty|||
|**Total**|**£4,515,312**||



- 3 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **Grants to individuals** 

In 2020 we continued to make substantial funding available to distribute to individual women from our HQ: 

- £722,962 (2019: £752,934) was awarded from Smallwood Trust HQ to 802 individuals (2019: 676). Of the 802 beneficiaries, 229 received monthly grants and 572 received one-off grants. The grants tend to range from £500 to £1,500. 

- It is important to note that the budget agreed by the Board for this programme at the start of the year was £500,000 as we transitioned some of our funding to individuals through community grant partnerships (see below). 

- However, due to the demand as a result of the pandemic, in the year the Board approved additional funding of £222,962 to support individuals applying direct via our website. 

In order to understand more about women’s lives during the pandemic and the impact that the grants have, the Trust undertook an evaluation of the grants to individuals through an online survey and in-depth interviews with a selection of grantees. Some of the main findings included: 

## _**What happened that meant that you needed to apply for a grant?**_ 

|||
|---|---|
|**Reason**|**% of respondents**|
|I have struggled with debts|33%|
|I am unable to work at the moment due to health reasons|28%|
|I lost my job/lost income|26%|
|I am unable to work at the moment due to other reasons|15%|
|I am caring for children|15%|
|I have lost my home/risk losing my home|10%|
|I am caring for adults|6%|
|My family lost income|4%|



_**How much of a difference do you feel this money has made to your overall circumstances?**_ 

|||
|---|---|
|**Answer**|**% of respondents**|
|A great deal|67%|
|Some difference|24%|
|A little difference|9%|
|No difference|0%|



- 4 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

_**Please tell us if you identify with any of the following statements**_ 

|||
|---|---|
|**Answer**|**% of respondents**|
|Have a history of anxiety and/or depression|49%|
|Am a lone parent with dependent children|42%|
|Am living with a long-term health condition|33%|
|Have experienced homelessness|30%|
|Have a disability|16%|
|Not applicable/prefer not to say|8%|
|Have caring responsibilities for other adults|6%|
|Unpaid care responsibilities|6%|
|Are of retirement age or older|4%|
|Experience of criminal justice system|3%|
|Have left the care system|1%|



## _**Has the pandemic impacted your life? If so, how?**_ 

|||
|---|---|
|**Answer**|**% of**<br>**respondents**|
|I have struggled with isolation and loneliness|57%|
|It has been difficult to pay my bills|57%|
|My mental health has deteriorated|49%|
|I have lost income/a job|34%|
|The quality of the food me and my family eat has reduced|33%|
|My physical health has deteriorated|29%|
|I have not been able to access support services I need|22%|
|My caring responsibilities for children have increased|21%|
|A lack of internet/equipment has made is hard for me to access training and job<br>opportunities|13%|
|I have not been able to pay my rent/been forced to move|8%|
|A lack of internet/equipment has made it hard for my children to access school|7%|
|My caring responsibilities for adults have increased|5%|



- 5 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **Onwards grants to individuals via community grant partnerships** 

We rolled out this funding to 14 community grant partners in 2020. The community grant partnerships are a new model of delivering grants to individuals via local women’s organisations and other partners, to complement and enhance local service delivery. This was one of our key objectives for the year and is described in more detail at point 2 below ( **Page 7** ) 

## **Grants to frontline organisations** 

In 2020, we awarded funding of £3,002,072 (2019: £404,509) to frontline organisations to help them respond to the COVID emergency and safeguard vital frontline jobs and services across the women’s sector. The average grant size was c. £20,000 **.** 

The increase in funding was made possible by substantial grants to the Trust from the DCMS Community Match Fund (£2.1 million for the “Women’s Sector Resilience Fund”), The National Lottery Community Fund (£498,625 for the “COVID-19 Frontline Women’s Fund”), existing support from Barclays £165,600 and additional funds from the Trust’s expendable endowment. 

Unsurprisingly given the impact of the pandemic, the majority of our funding to organisations focused on our COVID-19 response funds. Overall data from the distribution of these funds includes: 

- 86% of organisations funded had members on their Boards or senior leadership with lived experience 

- 79% were women-led organisations - confirming the need for specialist women’s organisations 

- 31% were organisations led by and for Black and minoritised women 

- 300 essential roles in the women’s sector were funded and safeguarded by the emergency grants 

Through previous research, Smallwood were already aware of the disproportionate effect that poverty and austerity has had on Black and minoritised communities prior to the outbreak but a survey that we collaborated with, led by Women’s Resource Centre and Rosa UK in March/April 2020, reported that these communities were being adversely affected during the pandemic, too. 

Through the emergency grants we were able to increase the number of funds awarded to organisations led by Black and minoritised women to 31%, compared to 3% for previous programmes. 

An analysis of the applications to the funds produced a number of other important findings, such as 84% of organisations reported they were supporting women with mental health issues and 82% reported they were helping women who had suffered violence and abuse. 

One of the findings from this funding was that many women were facing a complex web of multiple disadvantages, simultaneously, such as mental health, care responsibilities and domestic abuse which was pushing them and their families into further crisis. 

The next major challenge on the horizon is to support the women’s sector in the eventual recovery phase. Towards the end of 2020, we entered a partnership with Rosa UK, to secure an additional £1.9 million from the Tampon Tax Fund. This new funding will be launched in 2021 as part of our ongoing response. 

Please see the appendix to the financial statements for a full list of grants awarded in 2020. 

- 6 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **Grants to policy initiatives** 

In 2020 we awarded £241,083 of which £164,479 was paid out, (2019: £272,939) funding to policy, influencing and research organisations, slightly less than the previous year as we focused our attention on supporting frontline organisations due to the pandemic. 

Under this programme, we continued to support organisations that are taking a strategic approach to tackling gendered poverty. Examples of three initiatives funded through this programme include: 

## **Surviving Economic Abuse (SEA)** 

The Trust is funding SEA’s ‘experts by experience’ initiative which aims to gather insight from women who have experienced economic abuse to influence policy and to develop tools and resources that enable women to thrive. Group members also act as powerful advocates for change by speaking out publicly via the media to ensure that women’s voices are reflected in features about economic abuse. 

## **New Economics Foundation and the Women’s Budget Group** 

This partnership will incubate a women-led policy development and movement-building process which will build a policy agenda starting with the lived experiences of financially vulnerable women and the local organisations who provide vital services to them. The partnership aims to develop the capacity of local women’s sector organisations to have influence on relevant issues, first at a local and then at a national level, through the provision of leadership development and network building. 

## **Fawcett Society** 

The Trust is supporting Fawcett to deliver a project exploring the pay and progression of women of colour. Building on the Government’s Race Disparity Unit’s work and the independent McGregor-Smith Review, the project will explore in-depth ways to unlock the potential of women of colour at work, by understanding the inequalities and intersecting barriers they experience, and the solutions they think would help to overcome them. 

## **2. To roll-out the grants to individuals funding model to community grant partners** 

In the previous year of 2019 the trustee agreed the following model to help expand our grants to individuals’ programme through community grant partnerships: 

|**Criteria for community grant partner**|• Be aligned with the Trust’s mission and values|
|---|---|
|**selection**|• Be working with the Trust’s target beneficiary groups|
||• Have the required capacity / reach|
||• Have a strong track record of delivery|
||• Be financially capable, have good leadership|
||• Have a long-term commitment to their communities|
||• Have monitoring and evaluation capability|
|**Community grant partner role**|• Operate the Trust’s grant-making policy locally|
||• Identify beneficiaries|
||• Assess need for financial assistance|
||• Make grant payments to beneficiaries|
||• Provide impact data to the Trust|
||• Support and connect beneficiaries|
|**Smallwood Trust role**|• Partner and geographic selection|
||• Training and support for partners|
||• Grant / contract management with partners|
||• Quarterly reviews|
||• Consolidate the impact reporting from all partners|
||• Feed insights into policy / practice development|



- 7 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

2020 was the year that the programme was implemented. In total funding of £549,195 (2019: £0) was awarded to community grant partnerships to focus on the following key drivers of stability: 

- Financial security and support through crisis 

- Employment pathways 

- Housing needs 

- Mental health and well-being 

This significantly increased our capacity to make grants to individuals. The Trust believes that locally based or specialist women’s organisations are well-placed to make grants to the individual women they support as the funds can be used to complement and enhance the services that women’s organisations are already providing. 

Though the programme is in its infancy, we undertook a qualitative evaluation of the first year with partners. These were the key learnings: 

- The grants can be transformational. Particularly when packaged with support from frontline workers they can change women’s lives. 

- The community grant partners are mostly very happy with how the grants are managed - they like how flexible they are and they feel trusted to make decisions on behalf of their clients. 

- The main challenges the partners face are around: managing demand for the grants and the monitoring forms which they found “repetitive”. 

- The partners would like further opportunities to share best practice, connect and network with each other. 

- The partners want to develop the streamlining of the eligibility criteria and support to give grants to people without bank accounts. 

- They suggested that an online portal for the monitoring and evaluation would streamline the process and that they would be interested to find out more about Smallwood’s other work. 

This feedback will be taken forward in 2021. 

## **3. To undertake research and consultation with stakeholders to inform plans for the 135[th] anniversary of the Trust in 2021 and future strategic direction.** 

We deferred plans for the 135[th] anniversary to focus on our response to the pandemic. 

We did however undertake significant analysis and stakeholder engagement which will help feed into future strategic direction, this included: 

- Monitoring, Evaluation and Learning (MEL) Report published in July 2020 

- COVID-grants analysis published in January 2021 reflecting on the emergency funding awarded in 2020 

- Surveys with individual beneficiaries and organisations we fund 

- Engagement with networks including ACO, Grant-Makers Alliance, Funders for Race Equality Alliance 

- Stakeholder and beneficiary engagement workshops and training for organisational grantees 

Deeper-dive and co-production conversations will be taken forward in 2021. 

## **4. To produce an Annual Impact Report which highlights the Trust’s learning, impact, monitoring and evaluation activities.** 

The main learnings from our MEL Report and COVID-grants analysis include: 

- Given the disruption to VCS service delivery as a result of the pandemic, grants to individuals have come to the fore, with an increase in demand at HQ and through community grant partnerships. 

- 8 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

- Our ability to pay grants direct into households will likely become even more important as the economic shocks continue to play out 

- We must accept that the voluntary sector as a whole, and by definition the women’s sector, will face significant financial challenges, and we will need to skillfully respond to this through our grant-making and strategic approach 

- We are developing proposals for the Futurology Working Group which will aim to help us map our way and think creatively how best we can deploy our funds in the future to meet our mission 

- Building resilient networks and communities (resilience is at the heart of our mission) and devolving power (e.g., community grant partnerships) will be become even more important in responding to the crisis and reaching the most marginalised women 

During the year there was an increased focus on equity, diversity and inclusion with a particular focus on racial justice as a core part of our mission in reducing gendered poverty. This is discussed in more detail below. 

## **5.         To implement the Stabilisation Fund model to support the increase in the Trust’s grant-making.** 

The main purpose of the Stabilisation Fund is to create a sustainable framework and control mechanism to increase the grant-making spend, while enabling the trustee to remain in the driving seat in relation to decision making on strategy, spend and risk. This is described in more detail on Page 12. 

This methodology was implemented in 2020. This model enabled Smallwood to contribute more than £2 million from its own funds towards grant-making (2019: £1,250,000) as part of our coronavirus response in addition to external funds raised from DCMS and The National Lottery Community Fund. 

## **6.      To undertake a board evaluation and additional board recruitment activities to continue to strengthen the governance of the Trust.** 

During the year, the Trust announced plans to recruit additional board members help us accelerate our strategy to achieve a gender equal economy and society. We appointed Prospectus as the recruitment agents to run an open process and to help us make appointments that would help us develop greater diversity, perspective and skills. Dr Ambreen Shah and Faeeza Vaid MBE were appointed after a rigorous process and open competition. 

Their biographies can be accessed here. 

The recruitment process was initially delayed due to the pandemic and it was therefore decided to defer the board evaluation to 2021 to enable the new board members to be inducted and the board as a whole to develop working relationships and support the additional members in their newly appointed roles. 

## **EQUITY, DIVERSITY AND INCLUSION (EDI)** 

EDI is a core component of Smallwood’s Governance Action Plan. Our work as an organisation on equity, diversity and inclusion is about ensuring we have a culture (which includes Board members, staff, consultants and any volunteers) that encourages people of all backgrounds and experience to feel a key part of what we do and our mission. 

We believe that by having a diverse organisation we will be able to meet our objective of reducing gendered poverty more effectively. We value the voices of those with lived experience who identify with one or more protected characteristics and these voices will be integral to organisational and programme planning. 

EDI work that was progressed in 2020 includes: 

- An open Board recruitment process that resulted in the appointment of Dr Ambreen Shah and Faeeza Vaid MBE to enhance the perspective, skills and diversity of our Board. 

- 9 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

- In terms of Board profile, 30% (2/6) of board members are from Black and minioritised communities, 80% (5/6) report lived experience of gendered poverty and associated issues and 17% (1/6) report as having a disability / health condition 

- Collection and tracking of equalities data through Impact Reporting to help inform delivery of future grant programmes. 

- Increased funding to organisations led by Black and minoritised women from 3% in 2019 to 21% in 2020. 

- Devolved decision-making power to local community grant partnerships so grants to individuals can be given out locally 

- We participated in the 2027 programme which aims to encourage people from working class backgrounds and those with lived experience to join grant-making organisations. 

- We also offered a secondment opportunity to a member of frontline staff from one of our funded organisations (Lancashire Women). 

- We are members of the Funders for Race Equality Alliance and provided information and grants data that contributed to their reports on responses to the COVID-emergency. 

- The CEO is a member of the Just Foundations Initiative which aims to advance racial justice within the funding sector. 

Strengthening EDI processes in 2021 is a high priority for our Governance Action Plan. The Board has agreed to: 

- Appoint an external EDI consultant to support the Trust to develop an EDI Plan 

- Implement a Board shadowing programme to enable women with lived experience to find out more about the Board role at Smallwood and the wider sector in general and support the shadowees personal and professional development. 

## **GRANT-MAKING POLICY** 

Individuals are eligible if they meet the following criteria: 

||<br>Woman living on low income and/or in receipt of benefits|
|---|---|
||<br>Right of residence in the UK|
||<br>Aged 18 and over|
||<br>Savings of no more than £4,000|
||<br>Debt of no more than £10,000 excluding mortgage and any student debt|
||<br>Evidence / documentation of current financial need|



- 10 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

We have adopted the following framework for awarding grants to frontline organisations and policy initiatives: 

|**Area for analysis**|**Assessment Criteria**|
|---|---|
|Activities| Does the organisation and its activities fall within our<br>mission and the outcomes of the Fund?<br> Are activities focused on women in greatest need?<br> Canthe organisationadapt andinnovate?|
|Results| Evidence of previous positive results and outcomes<br> Quality ofevidence|
|Leadership| Is there a compelling vision and strategy?<br> Can the CEO / management team articulate and deliver<br>this?<br> Is there good governance (including safeguarding) and<br>direction by trustees?<br> Are there clearly defined priorities?<br> Are safeguarding and equalities policiesinplace?|
|People and resources| Does the organisation have the appropriate staffing<br>structure to deliver?<br> Can the organisation identify gaps in capacity and/or<br>service provision that the Fund can support?<br> Are volunteers managed well?<br> Does the charity make best use of its other resources<br>such as IT, IP and any other assets?<br> Is the charity successful in leveraging support and<br>resources from external sources?|
|Finances| Are there good processes for financial management?<br> Are financial resources used efficiently?<br> Is there anunqualified audit opinion?|
|Ambition| Does the charity have the potential to sustain, grow<br>and/or thrive?<br> Does the charity have the potential to improve its<br>impact?<br> Does the charity have the potential to influence<br>stakeholders and have a wider impact in its area of<br>focus?|



## **FINANCIAL REVIEW** 

The financial objectives have been agreed as follows: 

- Increase our impact and number of beneficiaries and build the Trust’s capacity for monitoring and evaluation so that all grant expenditure leads to an increase in team learning on how to support women to become financially resilient 

- Change the investment managers mandate to increase the income from the endowment over the lifetime of the strategic plan 

- Manage the cash flow requirements of multi-year grants 

- • Use expendable endowment resources to support an increase in the grant-making 

The trustee has adopted an interlocking financial framework proposed by Yoke and Co to support the financial objectives of the Trust. The Yoke and Co framework comprises the following: 

- 11 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 


The results for the year are set out in detail on page 22.  The Trust’s income for the year was £3,729,514 (2019: £1,438,932). The income included restricted funds for grants of £2,764,225 from the DCMS, The National Lottery Community Fund and Barclays. 

Expenditure in this year was £5,139,845 (2019: £1,952,216). The increase in expenditure includes substantial external grants and is in line with our strategy of increasing our grant expenditure and strengthening our monitoring and evaluation function. Fund balances at the year-end were £34,483,158 (2019: £36,608,302). 

## **RESERVES POLICY** 

The reserves policy is as follows: 

We wish to hold reserves to ensure the uninterrupted provision of financial assistance to women in poverty and grants to women’s led service delivery and policy organisations, if adverse economic conditions arise or unexpected events materially affect the income from our endowment. 

The Board also wish to support an increase in the grant-making over the short to medium term (five years) to help meet the need and demand and help more women out of poverty. 

Therefore, the Board have agreed to create a ‘Stabilisation Fund’ of initially £5 million from the expendable endowment to allow the Trust to increase its grant expenditure and/or to cover any shortfall in investment income. The status of the Stabilisation Fund will be reported to and reviewed by the Board on a quarterly based on the following red/yellow/green basis: 

|**RED**|Over 50% of the fund is currently employed in<br>supporting grant income in the coming 12<br>months|
|---|---|
|**YELLOW**|Between 25% and 50% of the fund is currently<br>employed in supporting grant income in the<br>coming12 months|
|**GREEN**|Less than 25% of the fund is currently<br>employed in supporting grant income in the<br>coming12 months|



- 12 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

The total funds held were £34,483,158 (2019: £36,608,302) of which £33,624,105 (2019: £35,363,485) were endowed funds being the capital of the Trust and unrestricted funds of £671,087 (2019: £1,226,949) and £187,966 restricted funds (2019: £17,868). £917,965 was transferred from the expendable endowment to unrestricted funds to support the Stabilisation Fund expenditure. The trustee expects to make similar transfers in the future as the Trust continues to increase its grant expenditure over the next three years. 

## **FUNDRAISING** 

The Trust does not currently proactively fundraise from the public as it mainly relies on its investment income to fund its activities. During the year, the Trust secured substantial additional funds from DCMS, The National Lottery Community Fund and Barclays to further its objectives. All of these funds were to make onwards grants to organisations. The Trust has not yet voluntarily subscribed to any fundraising standards or scheme. However, as the trustee considers continuing to raise additional income in the future, we will consider signing up for an appropriate scheme. 

From time to time the Trust is in receipt of legacies and we undertake a modest amount of advertising aimed at increasing the level of legacies. 

There were no complaints during the year. 

## **INVESTMENT POWERS AND POLICY** 

The Trust holds assets for the generation of income in accordance with the Schemes. The trustee exercises the general power of investment conferred upon them by the Trustee Act 2000. They have delegated discretionary management of some of its assets to an investment manager in accordance with a Charity Commission Order of 19 December 1995. 

The investment policy is to create sufficient income and capital growth to enable the Trust to carry out its purposes consistently year by year with due and proper consideration for future needs and the maintenance of, and if possible, enhancement of, the invested funds. 

## **INVESTMENTS** 

Sufficient cash is held to cover working requirements and provide a readily accessible reserve. 16.45% of all of the funds invested are with the Newton Multi-Asset Fund as part of our new investment mandate to increase the income from the endowment funds to support the Strategic Plan. 

The remaining investment assets are managed on a discretionary basis in accordance with a Charity Commission Order of 19 December 1995 by Investec Wealth & Investment Limited ("Investec") and are separated into two discrete portfolios representing assets belonging to the Endowment Funds and the Unrestricted Fund respectively. 

Performance of the Newton funds is measured on a total return basis (before management and other expenses) through capital and income return combined. The return on the fund for the full year was a decrease of 0.24%. 

Performance of the Investec Endowment Funds portfolio is measured on a total return basis (before management and other expenses) through capital and income return combined. The return on the portfolio for the year was a decrease of 3.82%. 

The Unrestricted Fund portfolio comprises a mixture of cash and common investment funds and will be drawn down over the next few years as expenditure exceeds income. It is measured on a total return basis through capital and income return combined. The funds were fully expended in the year. 

The Trust has no social investments or programme-related investments. 

- 13 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **RISK MANAGEMENT** 

The trustee has identified the major risks to which the Trust is exposed and has established procedures to mitigate them and these are kept under review. The major risks that the trustee has identified and how they are mitigated are: 

- Loss of future income streams from, and capital values of, investments - regular review meetings are held with the investment managers and adjustments to funds are made accordingly. 

- Impact of general legislation and the external operating environment, GDPR and safeguarding - the Operations Manager is tasked with ensuring all relevant Smallwood policies are up to date. 

- Breach of trust in the use of restricted or endowment funds – these are reviewed on a regular basis. 

- • Loss of key staff or trustees - staff development plans and a board development programme are being implemented. 

- Funding not achieving desired outcomes - ensuring all grants awarded are aligned to our mission and impact strategy. 

The Trust maintains a Strategic and Operational Risk Register, which incorporates procedures for mitigating risks, and this is reviewed formally by the trustee on an annual basis. 

## **PLANS FOR FUTURE PERIODS** 

The objectives for 2021 are as follows: 

- 1 To implement a new follow-on £2.1 million funding programme using the Trust’s match funding as part of our commitment to the DCMS community match challenge. 

- 2 To successfully deliver £1.9 million of new Tampon Tax Fund grants in partnership with Rosa UK. 

- 3 To undertake research and consultation with stakeholders, across all of our programmes, and identify learning to inform future strategic plans. 

- 4 To produce an Annual Impact Report which highlights the Trust’s learning, impact, monitoring and evaluation activities. 

- 5 To implement the Stabilisation Fund model to continue to provide funding from the Trust’s endowment income to help support the Trust’s grant-making. 

- 6 To undertake board evaluation and implement the Governance Action Plan including reporting back on the EDI milestones. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The Smallwood Trust ("the Trust") was founded in 1886 and is registered with the Charity Commission under charity number 205798. While making grants in Scotland and Northern Ireland, it does not carry out any other activities there and it is the trustee’s opinion that the Trust is not currently required to register with the Office of the Scottish Charity Regulator in Scotland or the Charity Commission Northern Ireland. Trustees have resolved to keep this under review should the Trust’s activities dramatically increase in these jurisdictions. The Trust was formerly known as the Society for the Assistance of Ladies in Reduced Circumstances until 18 May 2017. 

In November 2019 Smallwood Trust (Trustee) Limited was appointed as the sole corporate trustee of the Trust, replacing the individual trustees, who were all appointed as the first directors of the limited company. 

The Trust has adopted a portfolio model of leadership, with individual Directors of the limited company retaining strategic oversight of the following functions: 

- Finance 

- Programmes, strategy and innovation 

- 14 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

- Communications, fundraising and partnerships 

- Constitutional and governance 

During the year, a time-limited Futurology Working Group was established to advise the board on future trends and propose ideas for new programmes. 

Roles and responsibilities have been agreed for the Chair, Deputy Chair, Directors, Portfolio leads and the Futurology Group. 

The patron, trustee, directors of the trustee company, principal officers, principal addresses and professional advisors of the Trust are listed on the Legal and Administrative Information page. 

## **Governing documents** 

The Trust is an unincorporated association governed by Charity Commission Schemes of 2 November 1917, 9 November 1928, 29 October 2019 and the section 280 resolutions of the trustees dated 18 May 2017 and 1 November 2019. 

The Smallwood Trust (Trustee) Limited is the sole corporate trustee of the Trust and is a company limited by guarantee. 

## **RECRUITMENT AND APPOINTMENT OF TRUSTEES** 

The first directors of Smallwood Trust (Trustee) Limited were the previous individual trustees of the Trust. 

Subsequently new Directors of the trustee company were appointed in December 2020 by the board of directors and will hold office for up to three years before retiring and being eligible for re-election for a further two terms of up to three years, after which they must retire for at least one year before being eligible again for reappointment. 

Neither Smallwood Trust (Trustee) Limited or the Directors have any beneficial interest in the Trust. 

## **ORGANISATIONAL STRUCTURE** 

The trustee governs the general policy of the Trust.  There were sub-committee meetings to discuss board recruitment, finance and strategy. The day-to-day business of the Trust is managed by the Chief Executive, supported by the team at the HQ in Malvern, Worcestershire and staff working from home in Blackburn, Bristol and Warwickshire. 

## **DIRECTORS’ INDUCTION AND TRAINING** 

New Directors of Smallwood Trust (Trustee) Limited are provided with information about the Trust and its work, the role and responsibilities of trustees, company directors and the composition and workings of the board. They are given copies of the Trust's and the trustee company’s governing documents and minutes of previous meetings, and offered any training that may be considered necessary. All Directors have the opportunity to attend seminars, and conferences and participate in board development activities. 

## **PAY AND REMUNERATIONS OF THE TRUST’S KEY MANAGEMENT PERSONNEL** 

Salaries are reviewed annually at the absolute discretion of the Trustee. In addition, an amount equivalent to 10% of gross salary is paid into a defined contribution Group Personal Pension Plan for each member of staff. 

## **RELATED PARTIES** 

There is no special relationship with any other charity. 

- 15 - 



## **SMALLWOOD TRUST** 

## **TRUSTEE’S REPORT (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **STATEMENT OF TRUSTEE RESPONSIBILITIES** 

The Directors of Smallwood Trust (Trustee) Limited are responsible for preparing the Trustee Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales requires the trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that year. 

In preparing these financial statements, the trustee is required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The trustee is responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The Trustee’s report was approved by the Trustee on 14th October 2021. 


.............................. D Myers (Chair) On behalf of Smallwood Trust (Trustee) Limited 

- 16 - 



## **SMALLWOOD TRUST** 

## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** 

## **TO THE TRUSTEE OF SMALLWOOD TRUST** 

## **Opinion** 

We have audited the financial statements of Smallwood Trust for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, 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: 

- give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of the charity’s net movement in funds for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the Trustee’s 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 charity’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. 

## **Other information** 

The Trustee is responsible for the other information. The other information comprises the information included in the Trustee’s 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 or conclusion thereon. 

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.  We have nothing to report in this regard. 

- 17 - 



## **SMALLWOOD TRUST** 

## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** 

## **TO THE TRUSTEE OF SMALLWOOD TRUST** 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: 

- adequate accounting records have not been kept by the charity; or 

- sufficient accounting records have not been kept; or 

- the charity financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of the Trustee for the financial statements** 

As explained more fully in the Statement of Trustee Responsibilities set out on page 16, the trustee is 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 trustee determines 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 is responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so. 

## **Auditor’s 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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: 

Based on our understanding of charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with trust law requirements over the use of restricted and endowment funds, employment law and health and safety regulations, and 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 the Charities Act 2011 and payroll taxes. 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income. Audit procedures performed by the engagement team included: 

- Inspecting minutes of trustee meetings; 

- Inspecting correspondence with regulators and tax authorities; 

- Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud; 

- Evaluating management’s controls designed to prevent and detect irregularities; 

- Identifying and testing journals during the year and around the year-end; and 

- Challenging assumptions and judgements made by management in their critical accounting estimates. 

- 18 - 



## **SMALLWOOD TRUST** 

## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)** 

## **TO THE TRUSTEE OF SMALLWOOD TRUST** 

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

## **Use of our report** 

This report is made solely to the charity’s trustee, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustee those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustee for our audit work, for this report, or for the opinions we have formed. 


Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London EC4R 1AG Date: 20 October 2021 

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 

- 19 - 



## **SMALLWOOD TRUST** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|**Notes**<br>**Income and endowments from:**<br>Donations and legacies<br>**3**<br>Investments<br>**4**<br>**Total income and endowments**<br>**Expenditure on:**<br>Raising funds<br>**5**<br>Charitable activities<br>**Total expenditure**<br> **6**<br>Net (losses)/gains on investments<br>**10**<br>**Net (expenditure)/income**<br>**Transfer between funds**<br>**Net movement in funds**<br>Fund balances at 1 January 2020<br>**Fund balances at 31 December 2020**|<br>|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>22,489  <br>942,800<br>965,289 <br>-<br>2,439,116<br>2,439,116<br>-<br>(1,473,827)<br>917,965<br>(555,862)<br>1,226,949  <br>671,087|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>2,764,225<br>-<br>2,764,225<br>-<br>2,594,127<br>2,594,127<br>-<br>170,098<br>-|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>2,764,225<br>-<br>2,764,225<br>-<br>2,594,127<br>2,594,127<br>-<br>170,098<br>-||**Endowment**<br>**Unrestricted**<br>**funds**<br>**Total**<br>**funds**<br>**2020**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>**£**<br>-<br>2,786,714<br>38,692<br>-<br>942,800<br>1,249,240<br>-<br>3,729,514<br>1,287,932<br>106,602<br>106,602<br>-<br>-<br>5,033,243<br>1,700,898<br>106,602<br>5,139,845<br>1,700,898<br>(714,813)<br>(714,813)<br>53,107<br>(821,415)<br>(2,125,144)<br>(359,859)<br>(917,965)<br>-<br>-|**Endowment**<br>**Unrestricted**<br>**funds**<br>**Total**<br>**funds**<br>**2020**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>**£**<br>-<br>2,786,714<br>38,692<br>-<br>942,800<br>1,249,240<br>-<br>3,729,514<br>1,287,932<br>106,602<br>106,602<br>-<br>-<br>5,033,243<br>1,700,898<br>106,602<br>5,139,845<br>1,700,898<br>(714,813)<br>(714,813)<br>53,107<br>(821,415)<br>(2,125,144)<br>(359,859)<br>(917,965)<br>-<br>-|**Endowment**<br>**Unrestricted**<br>**funds**<br>**Total**<br>**funds**<br>**2020**<br>**2020**<br>**2019**<br>**£**<br>**£**<br>**£**<br>-<br>2,786,714<br>38,692<br>-<br>942,800<br>1,249,240<br>-<br>3,729,514<br>1,287,932<br>106,602<br>106,602<br>-<br>-<br>5,033,243<br>1,700,898<br>106,602<br>5,139,845<br>1,700,898<br>(714,813)<br>(714,813)<br>53,107<br>(821,415)<br>(2,125,144)<br>(359,859)<br>(917,965)<br>-<br>-|**Restricted Endowment**<br>**funds**<br>**funds**<br>**2019**<br>**2019**<br>**£**<br>**£**<br>151,000<br>-<br> <br>-<br>-<br> <br>151,000<br>-<br>-<br>108,963<br>142,355<br>-<br> <br>142,355<br>108,963<br>-<br>4,255,470<br>8,645<br>4,146,507<br>-<br>-|**Restricted Endowment**<br>**funds**<br>**funds**<br>**2019**<br>**2019**<br>**£**<br>**£**<br>151,000<br>-<br> <br>-<br>-<br> <br>151,000<br>-<br>-<br>108,963<br>142,355<br>-<br> <br>142,355<br>108,963<br>-<br>4,255,470<br>8,645<br>4,146,507<br>-<br>-|**Restricted Endowment**<br>**funds**<br>**funds**<br>**2019**<br>**2019**<br>**£**<br>**£**<br>151,000<br>-<br> <br>-<br>-<br> <br>151,000<br>-<br>-<br>108,963<br>142,355<br>-<br> <br>142,355<br>108,963<br>-<br>4,255,470<br>8,645<br>4,146,507<br>-<br>-|**Total**<br>**2019**<br>**£**<br>189,692<br>1,249,240|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||||||||||||1,438,932|
|||||||||||||108,963<br>1,843,253|
|||||||||||||1,952,216|
|||||||||||||4,308,577|
|||||||||||||3,795,293<br>-|
||||<br>|170,098<br>17,868<br>187,966||(1,739,380)<br>35,363,485<br>33,624,105|(2,125,144)<br>36,608,302<br>34,483,158|(359,859)<br>1,586,808<br>1,226,949||8,645<br>9,223<br>17,868|4,146,507<br>31,216,978<br> <br>35,363,485|3,795,293<br>32,813,009|
|||||||||||||36,608,302|



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

All income and expenditure derive from continuing activities. 

20 - 



## **SMALLWOOD TRUST** 

## **BALANCE SHEET** 

## _**AS AT 31 DECEMBER 2020**_ 

|**2020**<br>**Notes**<br>**£**<br>**£**<br>**Fixed assets**<br>Tangible assets<br>**13**<br>9,276<br>Intangible assets<br>**13**<br>7,650<br>Investments<br>**14**<br>32,303,026<br>Investments - cash<br>**14**<br>2,032,286<br>34,352,238<br>**Current assets**<br>Debtors<br>**15**<br>763,920<br> <br>Investments<br>**16**<br>-<br>Investments - cash<br>**16**<br>-<br>Cash at bank and in hand<br>653,891<br>1,417,811<br>**Creditors: amounts falling due within**<br>**one year**<br>**17**<br>(1,286,891)<br>Net current assets<br>130,920<br>**Net assets**<br>34,483,158<br>**Capital funds**<br>Permanent endowment<br>23,171,757<br> <br>Expendable endowment<br>10,452,348<br> <br>**19**<br>33,624,105<br>**Income funds**<br>Restricted funds<br>**20**<br>187,966<br>Unrestricted funds<br>671,087<br>34,483,158|**2019**<br>**£**<br>**£**<br>8,247<br>6,750<br>35,310,486<br>165,521<br>35,491,004<br>49,856<br>781,438<br>270,410<br>314,332<br>1,416,036<br>(298,738)<br>1,117,298<br>36,608,302<br>23,648,299<br>11,715,186<br>35,363,485<br>17,868<br>1,226,949<br>36,608,302|
|---|---|



The financial statements were approved by the Trustee on 14[th] October 2021. 


D Myers (Chair) On behalf of Smallwood Trust (Trustee) Limited 

- 21 - 



## **SMALLWOOD TRUST** 

## **STATEMENT OF CASH FLOWS** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|||**2020**|||**2019**|
|---|---|---|---|---|---|
||**Notes**|**£**|**£**||**£**<br>**£**|
|**Cash flows from operating activities**||||||
|Cash used in operations|**24**|(2,049,945)|||(1,709,993)|
|**Cash flows from investing activities**||||||
|Purchase of fixed assets||(14,903)|||(17,358)|
|Purchase of investments||(5,270,032)||(2,509,804)||
|Proceeds on disposal of investments||8,347,124|||2,412,898|
|Dividends and Interest received||923,670|||1,249,240|
|**Net cash generated from investing**||||||
|**activities**|||3,985,859||1,094,976|
|**Net  increase/(decrease) in cash and cash**||1,935,914|||(615,017)|
|Cash and Cash Equivalents at beginning of year|||750,263||1,365,280|
|**Cash and Cash Equivalents at end of year**||2,686,177|||750,263|
|**Cash and cash equivalents:**||||||
|Cash at bank and in hand|||653,891||314,332|
|Short term deposits included in fixed and current asset||investments|2,032,286||435,931|
||||2,686,177||750,263|
|**Analysis of Net Debt**||||||
||**At 1 January 2020  Cash Flows**|||**At 31 December 2020**||
|Cash  and Cash Equivalents|750,263||1,935,914||<br>2,686,177|



- 22 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **1 Accounting policies** 

## **Charity information** 

Smallwood Trust is a public benefit entity as defined by FRS102. The Trust operates from its principal address, Lancaster House, 25 Hornyold Road, Malvern, Worcestershire, WR14 1QQ. 

## **1.1 Accounting convention** 

The financial statements have been prepared in accordance with the Trust's governing document,  the Charities Act 2011 and the Statement of Recommended Practice for Charities (SORP 2019) (Second Edition, effective 1 January 2019). 

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn. 

The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £. 

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below. 

## **1.2 Going concern** 

At the time of approving the financial statements, the trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. While the effects of Covid have been significant for our beneficiaries and our level of charitable giving, the pandemic has had no material effect on the Charity’s financial stature. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 

## **1.3 Charitable funds** 

The unrestricted fund comprises voluntary and investment income generated by the assets representing the permanent and expendable endowment funds as well as those representing the unrestricted fund itself. The unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. 

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 

The permanent endowment fund represents the permanent capital of the Trust, and cannot be spent as if it were income. Income arising on this fund can be used in accordance with the objects of the Trust and is included in unrestricted income. Charges incurred in the management of this fund, including investment management fees relating to those investments by which it is represented, are charged to it. 

The Trustees have power of discretion to convert the expendable endowment fund into income. It is however their policy to retain the capital of this fund to generate income. Income arising on this fund can be used in accordance with the objects of the Trust and is included in unrestricted income. 

## **1.4 Income recognition** 

Income is recognised when the Trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. 

- 23- 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2019**_ 

## **1 Accounting policies** 

Cash donations are recognised on receipt. Other donations are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 

Legacies are recognised on receipt or otherwise if the Trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Legacies subject to a life interest are not recognised in the financial statements until they become receivable. 

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity's right to receive payment is established. 

## **1.5 Expenditure** 

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is allocated to the particular activity where the cost relates directly to that activity. The fees due in respect of the investment manager's services are charged against income as the cost of raising funds. Salary and other office running costs are apportioned between charitable activity support costs and governance costs based on estimate of staff time to each. The same methods of apportionment have been used in previous years. 

Support costs have been differentiated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs relating to trustee meetings. 

Grants to individuals are charged in the year in which payment is made. It is clear to beneficiaries that grants from the Trust are voluntary payments from a charitable organisation, which the recipient has no rights to enforce. Future grants are neither noted as a commitment nor accrued as expenditure as the trustees are of the opinion that there is no constructive or legal obligation to continue payments. 

Grants to institutions are charged in the year when they are committed and included as creditors until they are paid. 

## **1.6 Fixed assets** 

Tangible and intangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. 

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: 

Freehold land and buildings 0% not depreciated on grounds of immateriality Fixtures and fittings 25% on cost Intangible assets database software amortised over 2 years 

- 24 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **1 Accounting policies** 

Accounting standards require that provision be made for depreciation of fixed assets having a finite useful life. However, the Trustees are of the opinion that the residual value at the end of the estimated useful life of the freehold buildings is not likely to materially differ from its cost. This is because it is the Trust's policy to maintain the freehold buildings in such a condition that their value is not diminished by the passage of time; the relevant expenditure is charged against income in the financial period in which it is incurred. Therefore, any element of depreciation is considered to be immaterial and no provision is made. 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. 

## **1.7 Fixed asset investments** 

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date.  Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred. 

## **1.8 Impairment of fixed assets** 

At each reporting end date, the Trust reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 

## **1.9 Cash and cash equivalents** 

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less. 

## **1.10 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, or in the case of investments at fair value (market value). 

## **1.11 Employee benefits** 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. 

## **1.12 Retirement benefits** 

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 

- 25 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **2 Critical accounting estimates and judgements** 

In the application of the Trust’s accounting policies, the Trustee is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

In the view of the Trustee in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognized in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. 

## **3 Donations and legacies** 

|||**Unrestricted**|**Unrestricted**|**Restricted**||Unrestricted|Restricted||
|---|---|---|---|---|---|---|---|---|
|||**funds**||**funds**|**Total**|funds|funds|Total|
|||**2020**||**2020**|**2020**|2019|2019|2019|
||||**£**|**£**|**£**|£|£|£|
||Donations and gifts||-|165,600|165,600|12,232|151,000|163,232|
||Legacies receivable|22,489||-|22,489|26,460|-|26,460|
||Grant income||-|2,598,625|2,598,625|-|-|-|
|||22,489||2,764,225|2,786,714|38,692|151,000|189,692|
|**4**|**Investments**||||||||
||||||**Unrestricted**|**Endowment**|**Total**|Unrestricted|
||||||**funds**|**funds**||funds|
||||||**2020**|**2020**|**2020**|2019|
||||||**£**|**£**|**£**|£|
||Income from listed investments||||942,755|-|942,755|1,247,919|
||Interest receivable||||45|-|45|1,321|
||||||942,800|-|942,800|1,249,240|
|**5**|**Raising funds**||||||||
|||**Unrestricted**||**Endowment**|**Total**|Unrestricted|Endowment|Total|
|||**funds**||**funds**||funds|funds||
||||**2020**|**2020**|**2020**|2019|2019|2019|
||||**£**|**£**|**£**|£|£|£|
|Investment management|||-|106,602|<br>106,602|-|108,963|108,963|
||||-|106,602|106,602|-|108,963|108,963|



- 26 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **6   Expenditure - 2020** 

|**Direct Costs**<br>**Grant Funding**<br>**£**<br>**£**<br>**Fundraising Costs**<br>Investment Management Costs<br>106,602<br>-<br>------------------<br>------------------<br>Total<br>106,602<br>-<br>------------------<br>------------------<br>**Charitable Activities**<br>Grant Funding (see note 8)<br>-<br>4,515,312<br>Support Costs (see note 7)<br>436,469<br>-<br>Governance Costs (see note 7)<br>-<br>-<br>------------------<br>------------------<br>436,469<br>4,515,312<br>------------------<br>------------------<br>Total expenditure<br>543,071<br>4,515,312<br>**6   Expenditure - 2019**<br>**Direct Costs**<br>**Grant Funding**<br>**£**<br>**£**<br>**Fundraising Costs**<br>Investment Management Costs<br>108,963<br>-<br>------------------<br>------------------<br>Total<br>108,963<br>-<br>------------------<br>------------------<br>**Charitable Activities**<br>Grant Funding (see note 8)<br>-<br>1,430,382<br>Support Costs (see note 7)<br>341,414<br>-<br>Governance Costs (see note 7)<br>-<br>-<br>------------------<br>------------------<br>341,414<br>1,430,382<br>------------------<br>------------------<br>Total expenditure<br>450,377<br>1,430,382|**Other**<br>**Costs**<br>**Total 2020**<br>**£**<br>**£**<br>-<br>106,602<br>------------------<br>------------------<br>-<br>106,602<br>------------------<br>------------------<br>-<br>4,515,312<br>-<br>436,469<br>81,462<br>81,462<br>------------------<br>------------------<br>81,462<br>5,033,243<br>------------------<br>------------------<br>81,462<br>5,139,845<br>**Other**<br>**Costs**<br>**Total 2019**<br>**£**<br>**£**<br>-<br>108,963<br>------------------<br>------------------<br>-<br>108,963<br>------------------<br>------------------<br>-<br>1,430,382<br>-<br>341,414<br>71,457<br>71,457<br>------------------<br>------------------<br>71,457<br>1,843,253<br>------------------<br>------------------<br>71,457<br>1,952,216|
|---|---|



- 27 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|**7 Support Costs - 2020**|||||
|---|---|---|---|---|
||**Basis of**|**Charitable**|**Governance**|**Total**|
||**apportionment**|**Activities**|**Related**|**Allocated**|
|||||**2020**|
|Staff Costs|Staff time|155,918|72,000|227,918|
|Support Cost contract|Contract cost|128,724|-|128,724|
|DCMS &  Lottery Grant|Staff Time|70,771|-|70,771|
|Office running costs|Staff time|44,880|-|44,880|
|Depreciation|Use of Equipment|12,974|-|12,974|
|Legal|Purpose of spend|6,335|-|6,335|
|Publicity and Marketing|Purpose of spend|16,867|-|16,867|
|Governance Costs|details note 9|-|9,462|9,462|
|||------------------|------------------|------------------|
|||436,469|81,462|517,931|
|||==========|==========|===========|
|**7 Support Costs - 2019**|||||
||**Basis of**|**Charitable**|**Governance**|**Total**|
||**apportionment**|**Activities**|**Related**|**Allocated**|
|||||**2020**|
|Staff Costs|Staff time|225,390|10,774|236,164|
|Support Cost contract|Contract cost|39,840|-|39,840|
|Office running costs|Staff time|34,883|5,340|40,223|
|Depreciation|Use of Equipment|4,941|-|4,941|
|Legal|Purpose of spend|13,316|27,650|40,966|
|Publicity and Marketing|Purpose of spend|23,044|-|23,044|
|Governance Costs|details note 9|-|27,693|27,693|
|||------------------|------------------|------------------|
|||341,414|71,457|412,871|
|||==========|==========|===========|



- 28 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **8 Grants payable** 

||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|Grants to organisations (see appendix)|3,792,350|677,448|
|Grants to individuals|722,962|752,934|
||4,515,312|1,430,382|



Assuming all grant milestones are met, then Smallwood Trust is expecting to pay an additional £1,046,895 in future payments to existing frontline organisations under current multi-year contracts. 

- 29 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **9 Governance Costs** 

|**Governance Costs**|||
|---|---|---|
||**2020**|**2019**|
|Staff Costs|72,000|10,774|
|Office running costs|-|5,340|
|Trustee meeting and training costs|-|3,680|
|Trustee expenses|1,182|3,369|
|Legal and Professional Fees|-|27,650|
|Auditors remuneration|8,280|12,000|
|Accountancy Fees|-|8,644|
||----------------|----------------|
||81,462|71,457|
||==========|==========|



Governance costs include payments to the auditors (including VAT) of £8,280  (2019: £12,000) for audit fees. 

- 30 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **10 Net gains/(losses) on investments** 

||**Unrestricted **||**Endowment**|**Total**|Unrestricted|Endowment|Total|
|---|---|---|---|---|---|---|---|
||**funds**||**funds**||funds|funds||
||**2020**||**2020**|**2020**|2019|2019|2019|
||**£**||**£**|**£**|£|£|£|
|Revaluation of||||||||
|investments||-|(714,813)|(714,813)|53,107|4,255,470|4,308,577|



## **11 Trustee** 

None of the Directors (or any persons connected with them) of Smallwood Trust (Trustee) Limited, the sole Trustee, received any remuneration during the year. Travel expenses paid to 5 of the Directors of the Sole Trustees, for travel and subsistence, amounted to £1,182 (2019: £3,369). 

## **12 Employees** 

## **Number of employees** 

The average monthly number of employees during the year was: 

|**Employment costs**<br>Wages and salaries<br>Social security costs<br>Other pension costs<br>|**2020**<br>**2019**<br>**Number**<br>**Number**<br>7<br>5<br>**2020**<br>**2019**<br>**£**<br>**£**<br>189,281<br>191,470<br>19,276<br>15,173<br>19,361             28,574<br>227,918<br>235,217|**2020**<br>**2019**<br>**Number**<br>**Number**<br>7<br>5<br>**2020**<br>**2019**<br>**£**<br>**£**<br>189,281<br>191,470<br>19,276<br>15,173<br>19,361             28,574<br>227,918<br>235,217|
|---|---|---|
|||235,217|



Amounts paid to key management personnel in the year amounted to £80,795 (2019: £80,295). 

The number of employees whose annual remuneration was £60,000 or more were: 

|were:||||
|---|---|---|---|
|||**2020**|**2019**|
|||**Number**|**Number**|
|£60,000|to £70,000|1|1|



- 31 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|**13**<br>**Fixed assets**<br>**Cost**<br>At 1 January 2020<br>Additions<br>At 31 December 2020<br>**Depreciation**<br>At 1 January 2020<br>Depreciation charged in the year<br>At 31 December 2020<br>**Carrying amount**<br>At 31 December 2020<br>**Carrying amount**<br>At 31 December 2019|**Intangible**<br>**Total**<br>**Freehold**<br>**land and**<br>**buildings**<br>**Fixtures and**<br>**fittings**<br>**£**<br>**£**<br>**£**<br>10,800<br>657<br>36,394<br>10,800<br>-<br>4,103<br>21,600<br>657<br>40,497<br>4,050<br>-<br>28,804<br>9,900<br>-<br>3,074<br>-<br>13,950<br>-<br>31,878<br>7,650<br>657<br>8,619<br>6,750<br>657<br>7,590|**Tangible**<br>**Total**<br>**£**<br>37,051<br>4,103|
|---|---|---|
|||41,154|
|||28,804<br>3,074|
|||31,878|
|||9,276|
|||8,247|



The freehold property is Lancaster House, 25 Hornyold Road, Malvern, which has been estimated by the trustee to have a market value of £ 400,000 (2019 - £400,000). 

## **14 Fixed asset investments** 

= 

|**Fixed asset investments**|||
|---|---|---|
|**Cost or valuation**<br>At 1 January 2020<br>Additions<br>Revaluation<br>Investment managers costs and dividends<br>Net transfer out<br>Disposals<br>At 31 December 2020<br>**Carrying amount**<br>At 31 December 2020<br>At 31 December 2019<br>Investments at fair value comprise:<br>Equities<br>Fixed interest securities<br>Cash held within investment portfolio||**Listed**<br>**investments**<br>**Cash in portfolio**<br>**Total**<br>**£**<br>**£**<br>**£**<br>35,310,486<br>165,521<br>35,476,007<br>5,273,040<br>(5,270,032)<br>3,008<br>(686,530)<br>-<br>(686,530)<br>-<br>(312,301)<br>(312,301)<br>-<br>(144,872)<br>(144,872)<br>(7,593,970)<br>7,593,970<br>-<br>32,303,026<br>2,032,286<br>34,335,312<br>32,303,026<br>2,032,826<br>34,335,312<br>35,310,486<br>165,521<br>35,476,007<br>**2020**<br>**2019**<br>**£**<br>**£**<br>28,916,062<br>33,022,635<br>3,386,964<br>2,287,851<br>2,032,286<br>165,521 <br>34,335,312<br>35,476,007|
||||



- 32 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|**15**<br>**Debtors**<br>**Amounts falling due within one year:**<br>Other debtors<br>Prepayments and accrued income<br>**16**<br>**Current asset investments**<br>Short term deposits<br>Cash in portfolio<br>**17**<br>**Creditors: amounts falling due within one year**<br>Accrual for grants payable<br>Trade creditors<br>Accruals and deferred income|**2020**<br>**£**<br>755,875<br>8,045<br>763,920<br>**2020**<br>**£**<br>-<br>-<br>-<br>**2020**<br>**£**<br>1,187,714<br>86,182<br>12,995<br>1,286,891|**2019**<br>**£**<br>40,250<br>9,606|
|---|---|---|
|||49,856|
|||**2019**<br>**£**<br>781,438<br>270,410|
|||1,051,848|
|||**2019**<br>**£**<br>223,032<br>37,877<br>37,829|
|||298,738|



## **18 Retirement benefit schemes** 

## **Defined contribution schemes** 

The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Trust in an independently administered fund. For some employees the Trust pays the employers contribution directly the employees personal pension scheme. 

The charge to the Statement of Financial Activities in respect of defined contribution schemes was £19,361 (2019: £28,574). 

- 33 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **19** 

## **Endowment funds** 

Endowment funds represent assets which must be held permanently by the Trust. Income arising on the endowment funds can be used in accordance with the objects of the Trust and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund. 

|**Permanent endowments**<br>Permanent endowment fund<br>**Expendable endowments**<br> Expendable endowment fund|**Balance at**<br>**1 January**<br>**2019**<br>**£**<br>20,811,319<br>10,405,659<br>31,216,978|**Income**<br>**Expenditure   Revaluations**<br>**gains and**<br>**losses/Transfers**<br>**Balance at**<br>**1 January**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>-<br>2,836,980 23,648,299<br>-<br>(108,963)<br>1,418,490 11,715,186<br>-<br>(108,963)<br>4,255,470 35,363,485|**Movement in funds**<br>**Income Expenditure**<br>**Revaluations**<br>**gains and**<br>**losses/transfers**<br>**Balance at**<br>**31 December**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>-<br>(476,542) 23,171,757<br>(106,602)<br>(1,156,236) 10,452,348<br>-<br>(106,602)<br>(1,632,778) 33,624,105|
|---|---|---|---|



The permanent endowment fund has arisen from the initial capital on the establishment of the Trust as a registered charity, to which it has been added to further on the capital absorption of other charities. £917,965 was transferred from the expendable endowment to unrestricted funds to support the Stabilisation Fund expenditure. The trustee expects to make similar transfers in the future as the Trust continues to increase its grant expenditure. 

- 34 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **20 Restricted funds** 

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes: 

|||**Movement in funds**|**Movement in funds**||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|
||**Balance at**|**Income**|**Expenditure**|**Balance at**|**Income**|**Expenditure**|**Balance at**|
||**1 January**|||**1 January**|||**31 December**|
||**2019**|||**2020**|||**2020**|
||**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|Tampon||||||||
|Tax fund|9,223|70,000|(79,223)|-|-|-|-|
|Barclays|-|81,000|(63,132)|17,868|165,600|(101,239)|82,229|
|DCMS|-|-|-|-|2,100,000|(2,005,292)|94,708|
|TNLCF|-|-|-|-|498,625|(487,596)|11,029|
||------------------|------------------|------------------------|----------------|------------------------|---------------------|------------------|
||9,223|151,000|<br>(142,355)|17,868|2,764,225<br>|(2,594,127)|187,966|
||========|=========|===========|=======|------=========|==============|=========|



The Tampon Tax Fund was a grant from DCMS to enable the charity to fund women's employability projects. 

The Barclays donation provides support to our community grant partnerships. 

Funding from DCMS and the National Lottery Community Fund (TNLCF) is to provide grants to women’s sector organisations as part of the COVID-19 emergency response. Funds will be expended by March 2021 and May 2021 respectively. 

- 35 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

**21 Analysis of net assets between funds** 

|**Unrestricted**<br>**Funds**<br>**2020**<br>**£**<br>Fund balances are represented by:<br>Tangible and intangible assets<br>16,926<br>Investments<br>711,207<br>Current assets/(liabilities)<br>(57,046)<br>671,087|**Restricted**<br>**Funds**<br>**Endowment**<br>**Funds**<br>**2020**<br>**2020**<br>**£**<br>**£**<br>-<br>-<br>-<br>33,624,105<br>187,966<br>-<br>187,966<br>33,624,105|**Total**<br>Unrestricted<br>Funds<br>**2020**<br>2019<br>**£**<br>£<br>16,926<br>14,997<br>34,335,312<br>112,522<br>130,920 1,099,430<br> <br>34,483,158 1,226,949<br>|Restricted<br>Funds<br>Endowment<br>Funds<br>Total<br>2019<br>2019<br>2019<br>£<br>£<br>£<br>-<br>-<br>14,997<br>35,363,485<br>35,476,007<br>17,868<br>-<br>1,117,298<br>17,868<br>35,363,485<br>36,608,302|
|---|---|---|---|



- 36 - 



## **SMALLWOOD TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

## **22 Related party transactions** 

There were no disclosable related party transactions during the year (2019: none). 

## **23 Distribution from Grove Hill Trust** 

In 2017 income of £288,318 was received from the Grove Hill Trust, based in Jersey. This followed negotiations with the Trustee of the Grove Hill Trust and after the Trustees of the Smallwood Trust signed a deed of indemnity as a condition of receiving the distribution. In 2020 the deed of indemnity was novated from the individual Trustees of the Smallwood Trust to the Smallwood Trust (Trustee) Limited. Given the clauses negotiated in the indemnity, the current view of the Trustee is that it is not probable that the funds will have to be returned. The Trustee has resolved to review the situation on a regular basis. 

## **24** 

|**Reconciliation of net movement in funds and net cash flow from**<br>**operating activities**<br>**2020**<br>**£**<br>(Deficit)/surplus for the year<br>(2,125,144)<br>Adjustments for:<br>Investment income recognised in statement of financial activities<br>(942,800)<br>Fair value gains and losses on investments<br>714,813<br>Depreciation of fixed assets<br>12,974<br>Movements in working capital:<br>Decrease in debtors<br>(697,941)<br>increase in creditors<br>988,153<br>**Cash used in operations**<br>(2,049,945)|**2019**<br>**£**<br>3,795,293<br>(1,249,240)<br>(4,308,577)<br>4,941<br>(4,788)<br>52,378|
|---|---|
||(1,709,993)|



. 

- 37 - 



## **SMALLWOOD TRUST** 

## **APPENDIX TO THE FINANCIAL STATEMENTS** 

## **FULL LIST OF GRANTS AWARDED** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|**Grants paid to organisations**|||
|---|---|---|
||**2020**|**2019**|
||**£**|**£**|
|4Wings|38,496|-|
|A Way Out|45,412|10,000|
|Alice Charity|39,592|-|
|Alpha Vesta CIC|11,820|-|
|Anawim|33,787|-|
|Angelou Centre|-|14,955|
|Apna Haq|20,323|-|
|ARCH|52,703|-|
|Aspirations Day Programme|17,770|-|
|Baby Aid Birmingham CIC|25,000|-|
|Beyond the Page Ltd|23,233|-|
|Beyond the Streets|28,292|-|
|Big Help Project|23,629|-|
|Birmingham and Solihull Women's Aid|24,991|-|
|Birth Companions|23,100|-|
|Blackburne - womens tech|25,000|-|
|Bloody Good Period|30,000|-|
|Brighton Women's Centre (BWC)|14,352|-|
|Building Futures East|28,436|-|
|C2C Social Action|24,734|-|
|Campaign for Learning|-|12,820|
|Caritas Diocese of Shrewsbury|19,273|-|
|Cavell Nurse's Trust|25,000|-|
|Changing Life Directions|10,060|-|
|CoLab Exeter|79,302|-|
|Community-Led Action and Savings Support (CLASS)|15,830|-|
|Connected Routes CIC|27,300|-|
|Coventry Haven|8,516|8,516|
|Coventry Law Centre|17,000|26,992|
|Coventry Panahghar Project|30,000|-|
|CRASAC|15,223|11,918|
|Creative Design & Manufacture UK Limited|10,130|-|
|Crossroads Derbyshire|22,417|-|
|Deaf Ethnic Women's Association (DEWA)|9,000|-|
|DINN Enterprise CIC|25,000|-|
|Ella's Home|24,611|-|
|Encompass Southwest|25,207|-|
|EVA Women's Aid|23,000|-|
|Fawcett Society|50,934|28,285|
|Feathers Futures CIO|20,044|-|
|First Step North East|20,235|-|
|Foleshill Women's Training|36,267|35,990|
|Footprints Project|-|15,000|



- 38 - 



## **SMALLWOOD TRUST** 

## **APPENDIX TO THE FINANCIAL STATEMENTS** 

## **FULL LIST OF GRANTS AWARDED** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|**Grants paid to organisations (continued)**|||
|---|---|---|
||**2020**|**2019**|
||**£**|**£**|
|Fourth Action|29,368|-|
|Futures Theatre|19,000|-|
|Getaway Girls|27,972|-|
|Gilgal Birmingham|27,471|-|
|Gingerbread|45,000|-|
|Girl Dreamer|15,000|-|
|Glasspool|-|50,000|
|Granby Somali Women's Group (GSWG)|21,400|-|
|Grimsby Institute of Further and Higher Education|-|(9,950)|
|Growing Club CIC|21,537|-|
|Halo Project|25,000|-|
|HARV|29,827|-|
|Heaton Norris Pavilion Community Centre|10,000|-|
|Her Centre|20,000|-|
|Hull Sisters|15,000|-|
|Imagine Torbay Multicultural Group CIC|11,122|-|
|Insight Society|14,000|-|
|Inspire|70,000|-|
|Inspire Women Oldham|-|15,000|
|Inspire at St Peters|26,681|15,000|
|Inspired Neighbourhoods CIC|20,009|-|
|Irise International|30,000|-|
|Joanna Project|11,951|-|
|Kairos WWT|15,167|11,833|
|Keighley Association for Women and Children's Centre|29,400|-|
|Kilmarnock Road Children, Young People and Family Centre|-|(5,646)|
|Lancashire Women|58,739|-|
|Lesbian Immigration Support Group (LISG)|9,500|-|
|Maternity Action|20,000|-|
|Migdal Emunah Ltd|21,445|-|
|Muslim Womens Council|17,000|14,800|
|My Sisters Place|55,000|-|
|Nanny Solidarity Network|10,012|-|
|New Economics Foundation|101,875|163,842|
|NILS|15,000|-|
|North Tyneside Disability Forum|20,165|-|
|Old Hall People's Partnership|13,437|-|
|OLDALONE UK|26,892|-|
|One Knowsley|20,090|-|
|One Voice 4 Travellers|18,546|-|
|Pathway Project|27,131|-|
|Pathway project Burntwood|25,000|-|
|Platform Thirty1|23,413|-|
|Positively UK|19,769|-|
|Precious Gems|13,885|-|
|Preston Road Women's Centre|-|15,000|
|Rape and Sexual Abuse (RASA) Centre Ltd|9,829|-|



- 39 - 



## **SMALLWOOD TRUST** 

## **APPENDIX TO THE FINANCIAL STATEMENTS** 

## **FULL LIST OF GRANTS AWARDED** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|**Grants paid to organisations (continued)**|||
|---|---|---|
||**2020**|**2019**|
||**£**|**£**|
|Rochdale Connections Trust|25,000|-|
|Roshini Birmingham|19,044|-|
|Safety 4 Sisters|26,502|-|
|Saheli|26,848|-|
|SAMEE|47,817|14,870|
|Sandwell African Women's Association|17,750|-|
|Savera UK|25,000|-|
|Shama Women's Centre|29,857|-|
|Sheffield Women's Aid|13,024|-|
|Sister System|15,306|-|
|Sisters of Frida|13,500|-|
|Smart Works|54,712|-|
|Somali Girls Can|25,000|-|
|Somali Welfare Trust|15,873|-|
|Sophie Hayes Foundation|52,858|-|
|Spark Burntwood CIO|15,134|-|
|Staffordshire Women's Aid|51,590|-|
|Street Talk|13,486|-|
|Success4All CIO|16,737|-|
|Sunderland Women's Centre|9,772|-|
|Support and Action for Women's Network ( SAWN)|29,600|-|
|Surviving Economic Abuse|60,000|30,000|
|Teen Action|10,100|-|
|Tenbury NILS Scheme|24,370|-|
|The Childrens Society|33,333|-|
|The Halo Project|19,445|-|
|The Happy Baby Community|24,700|-|
|The Motherhood Plan Trading As 'Pregnant then Screwed'|25,250|-|
|The My Way Project|9,520|-|
|Time to Change CIC|-|10,000|
|Timewise|30,850|-|
|Together Women|58,750|-|
|TWO|25,000|-|
|Tyneside Women's Health|22,046|-|
|University of Nottingham|-|25,000|
|Venus|50,000|10,000|
|Wai Yin Society|22,174|-|
|Water Lily Project|7,235|-|
|Well Women Centre|21,300|-|
|Winner, The Preston Road Women's Centre Ltd|29,301|-|
|Women at Wish|22,987|-|
|Women Into Construction CIC|19,828|-|
|Women Like Us|-|14,961|
|Women Today CIC|21,866|-|
|women@thewell|26,315|-|
|Women’s Health in South Tyneside (WHiST)|29,308|14,740|
|Womens budget group|89,725|18,093|



- 40 - 



## **SMALLWOOD TRUST** 

## **APPENDIX TO THE FINANCIAL STATEMENTS** 

## **FULL LIST OF GRANTS AWARDED** 

## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ 

|**Grants paid to organisations (continued)**|||
|---|---|---|
||**2020**|**2019**|
||**£**|**£**|
|Women's Health Information and Support Centre|11,808|-|
|Women's Health Matters|29,239|-|
|Women's Resource Centre|66,073|17,919|
|Women's Voices CIC|15,820|-|
|Women's Work Derbyshire|25,621|-|
|Womenzone Community Centre|30,000|14,956|
|Wonderfully Made Woman|21,268|-|
|Working Chance|30,000|30,000|
|Young Women's Housing Project|26,039|-|
|Young Women's Trust|25,000|-|
|YSS|99,397|42,554|
|Zinthiya Ganeshpanchan Trust|77,620|-|
||--------------------------|----------------------|
||3,792,350|677,448|
||============|==========|



- 41 -