~~ANNUAL REPORT 2022~~ 

~~TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022~~ 



## ~~PRINCIPALS, TRUSTEES AND EXECUTIVE LEADERSHIP TEAM~~ 

## ~~PATRON~~ 

## ~~COUNCIL~~ 

Her Majesty Queen Elizabeth II (until 8 September 2022) 

## **Chair** 

Richard Daniel BSc (Hons) FRAeS[1] 

## **Deputy Chair** 

## ~~PRESIDENT~~ 

The Viscount Trenchard of Wolfeton DL 

HRH The Duke of Kent KG GCMG GCVO ADC(P) 

**Honorary Treasurer** Alastair Irvine BA (Hons) MCSI 

## ~~LIFE VICE-PRESIDENTS~~ 

**Members as at 27 June 2023 (date report approved)** Wing Commander Sarah Davis MBA MSc FCIPD[2] 

Marshal of the Royal Air Force The Lord Craig of Radley GCB OBE MA DSc FRAeS 

Air Chief Marshal Sir Michael Graydon GCB CBE ADC FRAeS 

Lady Elaine Hillier[2] 

Wing Commander Marie-Noelle Orzel OBE QVRM MSc PGDE RGN RSCN[3] 

Air Chief Marshal Sir Stephen Hillier GCB CBE DFC MA 

Alison Benjamin BA (Hons)[4] 

Air Chief Marshal Sir Richard Johns GCB KCVO CBE FRAeS 

Rachel Prendergast BA (Hons) MA[4] 

Air Chief Marshal Sir Roger Palin KCB OBE MA FRAeS FIPD 

Graeme Craig MA[5] 

Air Marshal Richard Maddison OBE MA[6] 

Lady Elaine Hillier 

Air Chief Marshal Sir Richard Knighton KCB FREng[7] 

## ~~VICE-PRESIDENT~~ 

## **Stepped down during reporting period** 

John Isabel 

Lawrie Haynes CBE DEng BA (Hons) FCILTR FRSA (28 Jan 2022) 

Air Marshal Andrew Turner CB CBE MA MSc BA FRAeS CCMI RAF (11 Mar 2022) 

Frances Brindle MSc BSc (Hons) (28 Sept 2022) 

Air Vice-Marshal John Cliffe CB OBE (23 Oct 2022) 

David Cheyne MA (Cantab) (31 Mar 2023) Air Chief Marshal Sir Michael Wigston KCB CBE ADC RAF (2 June 2023) 

## 1  Appointed 1 Feb 2022 

2  Appointed 24 Jan 2022 

3  Served until 30 Nov 2022. Reappointed 12 Dec 2022 

- 4  Appointed 12 Dec 2022 

5  Appointed 1 Apr 2023 6  Appointed 4 May 2023 7  Appointed 2 June 2023 


## ~~BOARD OF TRUSTEES~~ 

## **Chair** 

Richard Daniel BSc (Hons) FRAeS[1] 

**Honorary Treasurer** Alastair Irvine BA (Hons) MCSI 

**Trustees as at 27 June 2023 (date report approved)** Allyson Arnold MSc BScN (Hons) 

Patrick Aylmer FCA 

Alison Benjamin BA (Hons) 

Richard Cryer MA (Cantab) FCA Wing Commander Sarah Davis MBA MSc FCIPD 

Wing Commander Dr Sophie Allen MBChB MRCGP DRCOG DFSRH DOccMed DAvMed PGCME[2 3] 

Squadron Leader Clive Martland MBE[2] Lady Meri Mayhew BA (Hons)[2] Rachel Prendergast BA (Hons) MA[2] Peggy Walters MA[2] Graeme Craig MA[4] 

## **Stepped down during reporting period** 

Lawrie Haynes CBE DEng BA (Hons) FCILTR FRSA (28 Jan 2022) 

Frances Brindle MSc BSc (Hons) (28 Sept 2022) 

Sarah Casemore MBA (25 Feb 2022) Air Vice-Marshal Elaine West CBE (23 Apr 2022) 

Wing Commander Marie-Noelle Orzel OBE QVRM MSc PGDE RGN RSCN[5] (30 Nov 2022) David Cheyne MA (Cantab)[6] (31 Mar 2023) 

1  Appointed 1 Feb 2022 2  Appointed 30 Sept 2022 

3  Safeguarding Lead Trustee from 1 Dec 2022 

4  Senior Independent Trustee from 1 Apr 2023 

5  Safeguarding Lead Trustee until 30 Nov 2022 

6  Senior Independent Trustee until 31 Mar 2023 

## ~~EXECUTIVE LEADERSHIP TEAM~~ 

## **Controller** 

Air Vice-Marshal Chris Elliot  CB CBE DL 

## **Director of Resources** 

Victoria Akinboro BSc (Hons) ACMA CGMA 

## **Director of Fundraising** 

Jason Shauness BEc (Hons) Grad Dip REM[1] 

## **Director of Grants, Services and Programmes** Air Commodore Simon Harper OBE[2] 

**Director of Strategy and Impact** Alison Wyman MSc BSc (Hons) CG (Affiliated) 

1   Resigned 17 Mar 2023. From 27 Mar to 15 June 2023, this role was undertaken by Air Commodore Paul Hughesdon MA. 

2   Appointed 9 Mar 2023. Air Commodore Paul Hughesdon MA undertook this role until he resigned on 8 Mar 2023. 

**Royal Air Force Benevolent Fund Principal and Registered Office** 67 Portland Place, London W1B 1AR 

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TRUSTEES’ REPORT 

## ~~CONTENTS~~ 

## ~~TRUSTEES’ REPORT~~ 

|~~RUSTEES’ REPORT~~||
|---|---|
|Foreword|5|
|About us|6|
|Progress against our strategic aims|8|
|2022: Our key statistics|12|
|Progress against our key welfare goals for the RAF Family|14|
|Support for stations|19|
|Working in partnership|20|
|Fundraising|21|
|Financial highlights|25|
|Financial review|26|
|Structure, management, governance and risk|32|
|Principal professional advisers|36|
|Statement of Trustees’ responsibilities|37|



~~INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES  38 FINANCIAL STATEMENTS 42~~ 



## ~~THERE FOR THE RAF FAMILY, NOW AND INTO THE FUTURE~~ 

## **2022 was a very challenging year for the RAF, the country and the world.** 

Together with the whole nation, I was deeply saddened by the death of Her Majesty The Queen. The late Queen showed an inspirational sense of duty during her reign and, as the RAF Benevolent Fund’s Patron from 1952, provided endless support for those who served her country. 

Those serving in the RAF in 2022 found themselves operationally busier than they have been for more than 40 years and were at the forefront of support to the Ukraine government. Britain also faced the challenges of the cost-of-living crisis, while the legacy of Covid-19 continued to cast a shadow. 

Through all these challenges, the RAF Benevolent Fund in 2022 stood shoulder to shoulder with more than 40,700 RAF veterans, serving personnel and their families, offering financial, practical and emotional support. Demand for assistance of all kinds was higher than ever. 

At the beginning of the year the Fund launched its new five-year Shaping The Future strategy. This provides a robust foundation to meet the RAF Family’s needs today and beyond. Its first year saw strong achievements, including distribution of £7.1M in grants to RAF Family members to pay for essentials such as energy bills and disability equipment. 

As we go forward into 2023, the Fund, inspired by the late Queen’s example of duty and devotion, stands ready to support anyone in the RAF Family in need, no matter what difficulties they face. 


**HRH The Duke of Kent** President, RAF Benevolent Fund KG GCMG GCVO ADC(P) 


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TRUSTEES’ REPORT 

## ~~ABOUT US~~ 

## ~~OUR VISION~~ 

## ~~OUR PURPOSE~~ 

Our vision is that everyone in our RAF Family – veterans, serving personnel and their families – gets support in their hour of need. 

Our purpose is to be here for every member of the RAF Family in need – listening, understanding and providing life-changing practical, emotional and financial support. 

## ~~OUR KEY WELFARE GOALS FOR THE RAF FAMILY 2022–2026~~ 





**Improved Improved access to quality of personalised living support** 

**Increased Enhanced independence wellbeing** 

## ~~OUR VALUES~~ 






**Empathetic PeopleResponsive** We listen **focused** We do what and seek to We put people we say we understand, at the heart of will do, and standing everything we use evidence side-by-side do. and insight with the to adapt to RAF Family. changing needs. 

**Inclusive Innovative** We work hard We are to ensure forwardeveryone feels leaning and valued and encourage supported, new ideas and and make approaches ourselves to remain accessible. relevant. 


The support the Fund has provided has been second to none, including converting my bathroom into a wetroom and providing me with an orthopaedic bed. I wouldn’t have been able to get this far without it.” 

**Former RAF Sergeant Leroy Francis, who has multiple sclerosis, explains the difference equipment we provided has made to his life** 

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TRUSTEES’ REPORT 

## ~~PROGRESS AGAINST OUR STRATEGIC AIMS~~ 

over the next few years. The pandemic’s economic impact has also contributed to financial difficulties for people of all ages and in many cases has reduced the availability of local support services. 

## **In 2022 we were pleased to launch our new strategy, Shaping The Future, which will run through until 2026.** 

Our new strategy responds to the immense challenges and changes the RAF Family has faced in recent years, resetting our direction to make sure we can support veterans, serving personnel and their families for years to come. It builds on our previous short-term strategy which allowed us to be there for the RAF Family through the toughest times of 2020 and 2021. 

y **Digital.** Covid-19 greatly accelerated the trend towards delivering services digitally. This gives us opportunities to increase our use of data to make sure our services exactly meet the RAF Family’s needs, to adapt our services to make them digitally accessible, and to use digital to make our organisation more effective and efficient. 

Based on a review of data, research and analysis, plus the views of our staff and the people we help, Shaping The Future identifies the RAF Family’s key needs and opportunities for us to meet them over the next five years, so we can continue to provide life-changing support. 

y **The need to continue to work together with other organisations.** There are other military charities that support the RAF Family. We want to collaborate more with them and other partners within and outside the charity sector, where it helps us provide the best possible support for the RAF Family. 

## ~~THE CONTEXT FOR SHAPING THE FUTURE~~ 

y **Financial sustainability.** In recent years we made a deliberate decision to increase our spending and draw on reserves to reach and support older veterans before they pass on. However, consistently spending more than we are able to raise is unsustainable. Ensuring our future financial sustainability has become a top priority. 

The context for our new strategy includes: 

y **The changing shape and needs of the RAF Family.** The RAF Family is both ageing and reducing in number, as many members get older and pass on. As people age, the complexity of their needs often increases. At the same time, the current economic climate is making life particularly challenging for working-age people. We know that in the coming years, the RAF Family will be a younger and more diverse community. Over the next few years, we have an opportunity to continue our focus on supporting older veterans, while helping everyone who needs our support. 

y **The need to improve the RAF Family’s journey to getting support.** Our research showed we could do more to help people navigate through their journey to getting support from us. 

## ~~PROGRESS IN 2022~~ 

Our strategy sets out five areas we want to focus on between 2022 and 2026. We are delighted to have made significant progress in each of them this year. However, our ambition runs deep and we look forward to achieving even more in the years to come. 

y **Covid-19.** The pandemic had a huge impact on mental wellbeing and social isolation. These will likely be two of the most significant areas of need for the RAF Family 


**Focus 1:** Providing more hands-on, tailored support to the RAF Family to help them through the journey to support 

This year we supported more than 40,700 members of the RAF Family to improve their quality of living, increase their independence and enhance their wellbeing. 88% of people surveyed who we helped said our services were excellent or they were very satisfied. 

These high rates of satisfaction link to our work in 2022 to increase access to personalised, tailor-made support for veterans, serving personnel and their families, no matter how complex their needs are. Throughout 2021 and 2022, we recruited six Welfare Navigators and six Welfare Support Executives. They are making the journey from contacting us initially to getting comprehensive support smoother and easier, and making sure we can meet even the most complex needs. 

Our data shows our new approach is reaping rewards – read more about our achievements on page 14. 

**Focus 2:** Strengthening our community engagement to be present in more communities and engage locally more effectively, including developing a volunteering framework and building a regional support capability 

We know that our presence on the ground, in communities, helps us encourage more RAF Family members to come to us for support. It also allows us to closely monitor the needs of serving personnel, veterans and their families, so we can tailor our services to make sure they have the most impact on people’s lives. 

In 2022 we increased our team of Welfare Support Executives (WSEs), based across the UK, from three to six, with two new WSEs taking up posts in Scotland and one 

in North West England. Part of their role is to work with RAF Family members to assess their needs and put in place personalised support plans. While volunteer caseworkers from the RAF Association (RAFA) and SSAFA still do much of this work, our WSEs deal with more complicated and complex cases. They also give us more capacity to support the RAF Family, and help people get support more quickly. 

Our Community Engagement Workers (CEWs) are another crucial part of meeting this aim. They help RAF Family members to re-connect into meaningful and regular social activities, reducing loneliness and isolation. In 2022 with Covid-19 restrictions fully lifted, our CEWs were able to work at full pace again. We grew our team, adding posts in Kent and Nottinghamshire. Our CEWs began offering new social activities for isolated veterans and their families, including a group for carers at Imperial War Museum Duxford, jointly managed with the Royal British Legion, and a monthly lunch club in Bognor Regis, set up with RAFA. 

60% of people who used the CEW service are now engaged in a regular, meaningful social activity – up significantly on 47% at the end of 2021. We are now working on implementing a new way of measuring our CEWs’ impact, looking at their effect on levels of loneliness, not just numbers of people engaged in activities. 

Our group wellbeing breaks are another way we connect with RAF Family members out in the community. Our welfare services team held three breaks in 2022 offering retired RAF Family members the chance to get away, meet new, likeminded people from RAF backgrounds, relax and improve their mental and physical health. 88% of people surveyed who took part said the break made a positive difference to their life. 

In 2022 we also began to look at how we can use volunteers more effectively to complement our work. We have recruited a volunteer manager to lead on this. 

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TRUSTEES’ REPORT 

**Focus 3:** Increasing fundraising income by investing in building our donor database through direct marketing, as well as building longterm, committed relationships with a portfolio of higher value corporate partnerships and philanthropists 

We are aiming to grow our fundraising income from £16.3M in 2021 to £20.1M by 2026, to make sure we can continue to support the RAF Family when they need it most, and to make the Fund sustainable for the future. 

In 2022 we developed our plans to increase our income, although our delivery was weakened by difficulties in recruiting staff. This means that we are little behind where we wanted to be. However, we raised £16.7M from donations and legacies to improve the lives of the RAF Family. This was up £0.4M on our fundraising total in 2021. You can read more about our fundraising in 2022 from page 21. 

To help us raise money, we focused on raising awareness of the Fund. We were mentioned more than 2,100 times in newspapers, magazines and in digital and broadcast media in 2022. We also produced podcasts and films to showcase our work, while our garden at the 2022 RHS Chelsea Flower Show, funded by Project Giving Back, helped raise our profile too. 

**Focus 4:** Placing a greater emphasis 

on insight, impact and innovation so we can make effective, evidencebased decisions at the right time and be proactive about adapting our strategy 

We want all our decisions about how we support the RAF Family now and in the future to be based on solid evidence and data, so we know we are doing our best to meet their needs. 

In 2022 we made good progress in achieving this. For example, we worked with RAF stations and units all over the UK to do an analysis of their needs, giving us more insight into the serving community. 

We used insights and data to improve many of our services, including what we offer through the Disabled Holiday Trust and the process for serving personnel to apply for our support. We also commissioned an external consultancy to review how our Housing Trust works. 

We released an important new piece of research too. Our Gambling and Wellbeing in the RAF report showed a heightened risk of gambling problems among serving RAF personnel. This research led us to work in partnership with the RAF on an important campaign to raise awareness among serving personnel of problem gambling. A project is now underway to comprehensively survey awareness of safer gambling across the Armed Forces and to better identify opportunities for help and support. 

Also new for 2022 were Airbreaks – residential breaks for children taking part in our Airplay clubs on RAF bases. We ran two breaks as a pilot for around 190 children, who thoroughly enjoyed the experience. We completed research during the breaks, were impressed by the results and have agreed to roll out Airbreaks in 2023. 


**Focus 5:** Developing greater collaboration and partnership working so we reduce duplication and achieve our aim of being sustainable for the future 

We worked hard in 2022 to partner and collaborate with other organisations, where this benefits the RAF Family and makes us more efficient. 

We made a successful joint bid with RAFA to the Armed Forces Covenant Fund Trust for funding to provide events to support comradeship, mental health and wellbeing for veterans of operations in Afghanistan and Iraq. We carried out research into the best format for these events in 2022 and will launch pilot events in 2023. 

We strived to make sure other organisations, including SSAFA, RAFA, Haig Housing, housing provider Stoll and the RAF HIVE Service, were fully informed about what the Fund offers and able to refer RAF Family members to us. Attending regional events and giving presentations to veterans’ associations also helped spread the word about how we can help the RAF Family. 

Sharing knowledge and insights with other service charities helps us all cut costs and provide better support for everyone in the Armed Forces community. In 2022 we developed and launched our new online application portal with the Royal British Legion. It allows people applying for our support to manage their own application, so they can get help more quickly and easily. We then supported the Royal Naval Benevolent Trust (RNBT) to adopt the same system. 

We also shared our processes for and 

experience of giving out grants with RNBT to help them review their own grants process. In addition, we shared learning with the Royal Navy and Royal Marines Charity about how we can best support people leaving RAF service. We also set up a working group for military charities to share knowledge about benefits advice. We joined the Department for Work and Pensions’ Operational Stakeholders Engagement Forum to ensure the RAF Family’s voice is heard in policy around benefits too. 

To streamline costs, we share the platform we use to record information about the people we help with other service charities. We worked with them to update this system in 2022. 

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TRUSTEES’ REPORT<br>2022: OUR KEY STATISTICS<br>We gave<br>We supported<br>6,900+<br>4,500+<br>£5.3M people financial<br>people by giving<br>assistance to help<br>spent reaching them information<br>them through tough<br>£17.5M or answering their  times<br>24,000+<br>enquiry<br>spent reaching serving personnel<br>and their families<br>40 [,] 700+<br>We gave<br>members of the  £12.2M<br>Our wellbeing  2,000+<br>spent reaching services supported<br>people advice and<br>RAF Family<br>advocated for them<br>16,700+ 13,800+<br>veterans and their  people on issues including<br>benefits and care,<br>families<br>alongside legal advice<br>We helped<br>96% 88% We helped<br>3,600+<br>said we  said our services  10,100+<br>people through<br>improved  were excellent or  people through<br>grants we<br>their quality  they were very  grants we gave<br>of life  gave to other  to RAF stations<br>satisfied<br>organisations<br>46% 52%<br>£16.7M 81%<br>raised from  said we met  increase in  rise in people<br>legacies and  all or most of  enquiries  using our<br>donations their needs about financial  Listening and<br>assistance Counselling<br>Service<br>12 13<br>**----- End of picture text -----**<br>



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TRUSTEES’ REPORT 

## ~~PROGRESS AGAINST OUR WELFARE GOALS~~ 


## ~~WELFARE GOAL 1~~ 

## **Offering better access to personalised support** 

based across the UK, ready to help people with multiple and more complex problems, including serious debts, homelessness and mental health issues, to create tailored, holistic support plans. We still rely on and are grateful for volunteer caseworkers from RAFA and SSAFA to do much of this work. However, having our own specialist caseworkers in the form of WSEs has boosted our capacity to support the RAF Family. 

**We want every member of the RAF Family in need to be able to get tailor-made support from us quickly and efficiently. Ensuring this is a key part of our new strategy – and we have achieved a lot in our first year.** 

In 2021 our research showed opportunities for us to make it smoother and simpler for people to access the right support for them. We have been striving since to seize these. At the heart of this work are our six Welfare Navigators, three recruited in 2021 and three in 2022. They focus on giving anyone who gets in touch with the Fund a smooth journey to support. 

WSEs are also helping RAF Family members receive support more quickly, taking an average of 30 days to turn an initial enquiry into an application for support. 97% of people surveyed who received support from a WSE between October and December 2022 said they were ‘very satisfied’ or ‘satisfied’. 

In 2022 we started to see the fruits of their work. 76% of people surveyed who contacted the Fund about support said they were ‘very satisfied’ or ‘satisfied’ with their initial contact, up from 53% in 2019. Before our new strategy, only 33% of people who enquired about and were eligible for support from the Fund ended up receiving it. In 2022 we had increased this to 72%, thanks in part to our Welfare Navigators’ work. 

Our work to increase access to personalised support has meant we are meeting more of the RAF Family’s needs, more quickly and increasing their satisfaction. In 2022 96% of people surveyed who we helped said their quality of life had improved ‘a lot’ or ‘quite a bit’. 81% said we had met all or most of their needs. 

Our six Welfare Support Executives (WSEs), again all recruited in 2021 and 2022, are 


## ~~WELFARE GOAL 2~~ 

## **Improving the RAF Family’s quality of living** 

is topping up care home fees, so RAF Family members can live in comfort in the best home possible. We spent £374K on this in 2022. 

**Times are tough. As the cost-of-living crisis hit hard in 2022 we were there for veterans, serving personnel and their families with grants and advice to help pay for essentials and relieve stress.** 

Many people looked to the welfare benefits system for support through the cost-of-living crisis in 2022. Our Benefits Advice Service was on hand with help to navigate this sometimes-tricky area. Our team identified £2.5M in unclaimed benefits – up 20% on 2021. 90% of people surveyed who used the service said it was ‘excellent’ or they were ‘very satisfied’ with it. 71% were able to make a benefits claim thanks to the advice they received. 

Demand from the RAF Family for our financial support grew sharply in 2022 with enquiries about this up 46% compared to 2021. We were ready to respond, giving over 4,800 individual grants totalling £4.1M to veterans, serving members of the RAF and their families to support them through financial crises. These included spending £312K on our new home fuel grants scheme, which we introduced in April as energy prices rocketed. 

We also supported the RAF Family with our free legal advice helpline, which offers guidance on issues from employment to family law. 84% of people surveyed who used the service said they were ‘very satisfied’ or thought the service was ‘excellent’. 

With serving personnel not immune to the cost-of-living crisis, we helped 7% more working-age members of the RAF Family with grants compared to 2021. 96% of people who received a financial assistance grant said it improved their quality of life. 

Through our Housing Trust, we provide suitable housing for veterans and serving RAF personnel who have experienced life-changing injuries and need to leave the service early. In 2022 more than 400 RAF Family members were living in our Housing Trust properties. 

We also offer grants to help RAF Family members with house repairs and to pay for essentials like a new boiler or handrails. 97% of people surveyed who received a housingrelated grant in 2022 said it improved their day-to-day living. Another area we help with 

## t 

76% **‘very satisfied’ or ‘satisfied’ with their initial contact with the Fund – up from 53% in 2019** 

97% 

**supported by our Welfare Support Executives ‘very satisfied’ or ‘satisfied’** 

£5.3M **spent to improve** 5,700+ **RAF Family members’ quality of living** 

96% 

**of people said their financial assistance grant improved their quality of life** 

£2.5M **identified in unclaimed benefits – up 21% on 2021** 

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TRUSTEES’ REPORT 


## ~~WELFARE GOAL 3~~ 

## **Increasing independence** 

Our spend on care at home was 42% lower than in 2021, largely due to the national shortage of carers. This has led to people having to make do with care from family or friends, or move into care homes or sheltered accommodation. 

**We don’t believe anyone who has served their country should have to struggle due to disability, injury, advancing years or leaving the service. We enable RAF Family members to cope with these challenges, and have lives that are as full, independent and happy as possible.** 

We specialise in providing advocacy in a number of areas too, including care services issues. We can act on behalf and argue in favour of RAF Family members facing problems including getting a care assessment, funding for care and more. We supported over 300 people in 2022 helping them save or access £689K in statutory support. 92% of those surveyed said our help had benefited them or a member of their family, while 54% said they got the result they wanted thanks to speaking to our service. 

In 2022 we spent £3.1M supporting more than 2,100 members of the RAF Family to increase their independence. 

A key part of this work is paying for mobility and care equipment, so people can safely and comfortably stay in their homes as long as possible. We spent £1.7M on this in 2022, and 95% of people surveyed who received equipment said it contributed to their comfort, while 87% reported that they used the equipment every day or most days. 

Another key area of work for us is providing grants to help RAF personnel leaving the service find employment and to support children who have lost a serving parent. In 2022 we spent £99K to help more than 110 people in these ways. 

We can also help pay for care at home and for respite breaks so RAF Family members can remain in their homes. This year we gave £127K and £19K respectively so RAF Family members could benefit from these. 

£640K **spent to repair and adapt housing** 

95% **said mobility and care equipment we provided contributed to their comfort** 

£3.1M 

**spent on increasing** 2,100+ **RAF Family members’ independence** 



## ~~WELFARE GOAL 4~~ 

## **Enhancing wellbeing** 

For serving personnel and their partners, we offer free membership of Headspace, the meditation and mindfulness app. It provides practical tips and exercises to relieve stress – helping to stop more serious mental health problems developing. More than 7,000 RAF Family members enjoyed Headspace in 2022, an increase of over 1,200 on 2021. 96% of users surveyed said the app had improved their quality of life, while 97% said it had a positive effect on their stress levels. 

**From our Listening and Counselling Service to relationship support, our Telephone Friendship Groups to our Airplay programme for children and young people, enhancing the wellbeing of the RAF Family is at the heart of what we do – especially in these turbulent times.** 

In 2022 we supported more than 13,800 veterans, serving personnel and their families (2,000 more than in 2021) to improve their mental wellbeing, find friendships and connections and improve their relationships. 

## ~~SUPPORTING CHILDREN AND FAMILIES~~ 

Our Airplay and Ben Clubs provide 

interesting and exciting activities for children and young people on RAF stations, working with new partners RAF Community Support and One YMCA. We are delighted with the progress this new partnership is making. The number of children taking part in 2022 rose 14% compared to 2021 to over 2,300 across 25 RAF stations, significantly above our target of 1,500. 

## ~~IMPROVING MENTAL HEALTH~~ 

Our Listening and Counselling Service helped more than 2,200 people over the year to work through their problems, a 52% rise on 2021. 92% of those surveyed said the counselling had a positive impact on their life, while 69% showed a reliable clinical improvement in their mental health. 

We also enabled over 1,200 people to receive relationship support through Relate, 17% more than in 2021. 83% said their situation was ‘much better’ or ‘better’ thanks to this support. In addition, our specialist counselling service for children and young people aged 5-18 supported more than 200 people. 70% of those helped felt the service had positively changed things for them. 

Members enjoyed over 6,000 hours of fun activities, with parents giving Airplay 4.7 out of five stars. Our surveys showed 93% of Airplay members feel they belong in the group, 96% feel Airplay provides a good range of activities, and 93% of parents feel Airplay is helping their child be more confident. 

52% 84% **rise in people of children who using our attend our Airplay Listening and clubs feel good Counselling about themselves Service** 

£3.7M **spent on enhancing the wellbeing of** 13,800+ **RAF Family members** 

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TRUSTEES’ REPORT 

We also continued our Thrive workshops for partners of serving RAF personnel to improve their wellbeing, resilience, employability and, ultimately, quality of life. 72% of attendees showed an improvement in their wellbeing, according to an emotional needs audit we did before and after the course. 

Lincolnshire, West Sussex, Hampshire, Kent and Nottinghamshire. 60% of people supported by CEWs now take part in regular meaningful social activity, a significant rise from 47% in 2021. 

## ~~PROVIDING BREAKS~~ 

When life gets difficult, a spell away from home can help enormously. We offered serving families discounted or free UK breaks in 2022 giving them the chance to relax and recover from the stresses of everyday life. 88% said they were ‘very satisfied’ or ‘satisfied’ with their holiday. Some of these families enjoyed a break at The Folly, our new holiday bungalow in the seaside town of Bridlington, opened in 2022. 

## ~~BUILDING CONNECTIONS~~ 

Our previous research showed that at least 85,000 members of the RAF Family could be experiencing loneliness or isolation. Against the backdrop of the pandemic, we worked hard in 2022 to help veterans, serving personnel and their families build friendships and connections. 

Our Telephone Friendship Groups are weekly calls between RAF veterans or their partners, facilitated by trained volunteers, helping people to connect with others and feel less lonely. In 2022 over 220 veterans took part in more than 1,500 calls, with 78% of participants surveyed saying it improved their happiness. 

We also organised three group wellbeing breaks in 2022, bringing retired members of the RAF Family together for some time away to make new friends and relax. 100% of participants surveyed said they were ‘very satisfied’ or ‘satisfied’ with their break, and 88% reported a significant or somewhat significant improvement to their emotional wellbeing. 

With the Covid-19 crisis receding, our Community Engagement Workers (CEWs) managed to support more than twice as many people in 2022 compared to 2021. They introduced over 260 RAF Family members to meaningful, regular social activities. We now have CEWs in Cambridgeshire, Norfolk, Suffolk, 

Our Disabled Holiday Trust offers accessible holiday accommodation for people with physical disabilities. 99% of people who enjoyed a break through the Trust in 2022 felt it had benefited an area of their life. 

1,200+ **more RAF Family members benefiting from Headspace membership vs 2021** 

88% **said they were ‘very satisfied’ or ‘satisfied’ with our free or subsidised breaks** 

83% **said their situation was ‘much better’ or ‘better’ thanks to relationship support** 


## ~~SUPPORT FOR STATIONS~~ 

**In 2022 we supported** 10,100+ **serving personnel and their families by giving** £4.5M **through RAF stations to fund facilities, activities, programmes like Airplay and individual grants** 


**----- Start of picture text -----**<br>
CYPRUS<br>**----- End of picture text -----**<br>


~~RAF AKROTIRI: £1K~~ 

~~RAF LOSSIEMOUTH: £66K 603 (CITY OF EDINBURGH) SQUADRON RAUXAF: £1K~~ 


~~RAF GIBRALTAR: £3K~~ 

~~RAF SPADEADAM: £2K~~ 

~~RAF BOULMER: £52K~~ 

~~RAF LEEMING: £85K JHC RAF ALDERGROVE: £10K RAF WADDINGTON: £888K £888K RAF COLLEGE CRANWELL: £69K RAF VALLEY: £63K £63K RAF SHAWBURY: £45K £45K RAF COSFORD: £53K £53K RAF BRIZE NORTON: £255K  £255K MOD ST ATHAN: £3K MOD ABBEY WOOD: £4K £4K MOD BOSCOMBE DOWN: £44K £44K~~ 

~~RAF FYLINGDALES: £1K £10K RAF SCAMPTON: £47K RAF DIGBY: £141K RAF WADDINGTON: £888K £888K RAF CONINGSBY: £142K £69K RAF VALLEY: £63K £63K RAF WITTERING: £157K RAF SHAWBURY: £45K £45K RAF MARHAM: £60K RAF COSFORD: £53K £53K RAF HONINGTON: £73K RAF WYTON: £43K RAF BRIZE NORTON: £255K  £255K RAF HENLOW: £47K £3K RAF HALTON: £68K MOD ABBEY WOOD: £4K £4K MOD BOSCOMBE DOWN: £44K £44K NORTHWOOD HQ: £2K MOD WORTHY DOWN: £4K RAF NORTHOLT: £58K RAF HIGH WYCOMBE: £625K RAF(U) SWANWICK: £1K RAF ODIHAM: £51K RAF ST MAWGAN: £62K RAF BENSON: £112K~~ 

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TRUSTEES’ REPORT 


## **Working in partnership** 

## ~~OUR CASEWORKING PARTNERS~~ 

## ~~EXTERNAL GRANTS~~ 

Every year we give grants to charities and other organisations who provide direct and targeted assistance to the RAF Family, including support with employment, homelessness and substance misuse. 

To supplement our own caseworking capability, we work with several organisations that investigate cases and distribute grants to the RAF Family on our behalf. 

## **In 2022 we gave In 2022 we approved** £476K £8.6M **to 29 organisations, including:** 

**in grants for our caseworking partners to distribute. The following partners distributed grants over £60K, which in total made up 71% of the distribution:** 

|**Care for Veterans**|**£18K**|
|---|---|
|**The Poppy Factory**|**£15K**|
|**Defence Medical Welfare Service**|**£13K**|
|**Forces Employment Charity**|**£50K**|
|**Fighting With Pride**|**£17K**|
|**Poppy Scotland (Armed**<br>**Services Advice Project)**|**£15K**|
|**We Are With You**|**£10K**|
|**Walking With The Wounded**|**£10K**|
|**RAF Widows’ Association**|**£34K**|
|**Veterans Outreach Support**|**£9K**|
|**Broughton House**|**£18K**|
|**Combat Stress**|**£88K**|



**Royal Air Forces Association** 

|||
|---|---|
|**Royal Air Forces Association**|**£4M**|
|**SSAFA**|**£1.4M**|
|**The Royal British Legion**|**£394K**|
|**Royal Commonwealth**|**£162K**|
|**Ex-Services League**||
|**The Royal Canadian Legion**|**£107K**|
|**Age in Spain**|**£62K**|




“It’s been life-changing for me and my family, and it’s given me a lot more self-esteem.” 

**Tony, one of the almost 30 wounded, sick or injured RAF veterans The Poppy Factory supported to find employment in 2022 thanks to a £15K grant we provided to the organisation** 



## **Fundraising** 

With generous backing from other sponsors, including Lockheed Martin, our 2022 Awards gave us the opportunity to thank supporters, fundraisers, stations and youth workers for their amazing achievements in supporting our work. 

**In 2022 we raised £16.7M to support RAF Family members in need – £0.4M more than in 2021. It was only thanks to this incredible generosity from our supporters that we were able to offer life-changing financial, practical and emotional support to more than 40,700 veterans, serving personnel and their families throughout the year.** 

## ~~TRUSTS AND FOUNDATIONS~~ 

In 2022 we were extremely fortunate to receive over £800K from grant-making trusts and foundations. 

While the waves from the Covid-19 pandemic began to subside in 2022 other challenges arrived in its wake, including the cost-ofliving crisis and war in Ukraine. We continued to respond and adapt quickly to the changing fundraising landscape and are very grateful to our supporters for digging deep to support us and the RAF Family during these difficult times. 

For example, the Wimbledon Foundation continued to generously support Airplay, our flagship youth support programme, awarding £50K, ensuring that RAF children and young people have a safe, supportive and fun space in which to thrive. 

## ~~SUPPORT FROM THE SERVING RAF~~ 

## ~~CORPORATE PARTNERSHIPS~~ 

Serving personnel continued the tradition of looking after their own, recognising the support we can offer to them in their time of need. 70% made a monthly gift to us through the Service Day’s Pay Giving scheme, contributing an amazing £1.6M in 2022. 

We were proud to have continued support from a number of long-term supporters in 2022 including MBDA UK, BAE Systems and Midshires Mobility Group. Our new corporate partner, Exolum, sponsored our annual Bomber Command Memorial Service, where we paid tribute to the brave air crews who made the ultimate sacrifice in the Second World War. 

Despite the continued Covid-19 restrictions and busy operational tempo, serving personnel at RAF stations across the UK went above and beyond to raise funds to support those in need. This included bucket collections at the RAF Odiham Families Day and 92 runners taking part in the RAF 

£11.6M £1.6M **received from legacies** 

£16.7M **total raised** 

**received from the Service Day’s Pay Giving scheme** 

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TRUSTEES’ REPORT 

Waddington Jubilee 10K. We are incredibly grateful to every single member of our serving RAF Family who supported and promoted the Fund in 2022. 

## ~~FUNDRAISING COMPLIANCE AND SUPPORTER PROMISE~~ 

When fundraising we comply with all relevant laws and regulations including the Charities Act 2011, the Charities (Protection and Social Investment) Act 2016, the UK General Data Protection Regulation (UK GDPR), the Data Protection Act 2018 and the Privacy and Electronic Communications Regulations 2003. Our Board of Trustees closely monitors our fundraising activity and performance alongside the fundraising management team. 

## ~~INDIVIDUALS~~ 

Thank you to the thousands of supporters who made donations to the Fund or raised sponsorship from a wide range of events this year. We greatly appreciated the continued generosity of our long-standing supporters such as Mr and Mrs C Blowers, Mr Duncan Barber and Melissa John, and every one of the 2,000 supporters who contributed a total of £112K to our Christmas Appeal. 

We also comply with the regulatory standards for fundraising, including guidance published by the Charity Commission. We are registered with the Fundraising Regulator and are committed to the Fundraising Promise, compliance with the Fundraising Preference Service and adherence to the Code of Fundraising Practice. In 2022 we paid the Fundraising Regulator’s Fundraising Levy, a voluntary payment to help fund the organisation to regulate the charity sector’s fundraising activities. 

We are also very thankful to the 2,500 people who started to support the Fund at this difficult time, for the first time, after they requested one of our pin badges or limitededition window stickers. 

## ~~LEGACIES~~ 

In 2022 we were extremely grateful to receive £11.6M in legacies, up from £11.5M in 2021. This represents the largest form of income for us and we are deeply indebted to the people who choose to support us in this selfless way, helping to ensure we are here to look after the RAF Family for generations to come. 

We are fully committed to the principles we lay out in our fundraising promise: 

**We believe in being transparent in how we raise money and spend donations, and the impact this makes on the RAF Family. We take this responsibility very seriously.** 

**In all that we do, we aim to meet the highest standards, so that supporters and volunteers are able to give to and fundraise for us with confidence and trust that their hard work will make a difference.** 

£1.8M **received from other donations** 

£0.2M **received from fundraising events and trading activities** 

£1.5M **received from partners, trusts and major donors** 


## **We are open, honest and transparent** 

We promise to be open, honest and transparent in relation to our fundraising and, as importantly, in how accurately we represent members of the RAF Family in the materials we produce. We engage them in planning and ensure we have sign-off before the materials are made available to supporters or the public. 

## **We are respectful** 

In our fundraising materials, or in conversation, we show respect and we promise never to pressurise anyone to make a donation. We are particularly sensitive when engaging with vulnerable people, including those who are elderly. 

Importantly, we do not and never have shared our supporters’ details with any other charity or business. Following the introduction of the General Data Protection Regulation in 2018, we only communicate with supporters who have given us express permission to maintain contact with them. We keep supporters up to date with our work in a way and at times that suit them. If any supporter prefers a reduced level of contact, they only have to let us know and we will respond to their wishes. 

## **We are accessible** 

We want to make it easy for anyone to get in touch with our fundraising team. Whether they want to update their contact preferences or ask a question about our work or how we spend their donation, we welcome their phone call, email or letter. 

We have a complaints procedure should a supporter be unhappy or have concerns about any of our fundraising activities. This is available on our website or by contacting the fundraising team at **hello@rafbf.org.uk** . 

We will help supporters to take their complaint to the Fundraising Regulator if they feel we haven’t responded suitably. We record all complaints we receive in response to our fundraising. During 2022 we received three complaints (2021: 11) of which two were of a minor nature and quickly resolved. The other complaint, also minor in nature, was rejected. There were no instances we referred to the Fundraising Regulator in 2022. 

## ~~RELATIONSHIPS WITH FUNDRAISING SUPPLIERS~~ 

We employ external agencies to add additional expertise or capacity when and where needed. This is more cost-effective than trying to do everything ourselves. We appoint these agencies through a competitive tendering process. We also put in place a contract and an agreed Service Level Agreement for the work they will carry out for us, carefully ensuring they provide the same high standards as our in-house team. 

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TRUSTEES’ REPORT 

## ~~THANK YOU TO OUR DONORS~~ 

**We are extremely grateful to the following trusts, companies and committed individuals who gave us significant levels of support in 2022:** 

**2Excel Aviation (The Blades)** 

**Loppylugs and Barbara Morrison Charitable Trust** 

**Ada Hillard Charitable Trust Adrian Swire Charitable Trust** 

**Knight Sportswear** 

**Lockheed Martin UK** 

**The April Fools’ Club** 

**MBDA UK** 

**Armed Forces Covenant Fund Trust** 

**Donagh McCullagh** 

**Babcock International Group** 

## **Medlock Charitable Trust** 

**BAE Systems B and Q Foundation Duncan Barber and Jane Burrows** 

**The Mercury Foundation** 

**Midshires Mobility Group** 

**Mrs Mary Stephanie Warren-Coleman Charitable Trust** 

**The Beaujolais Run® Bill Brown’s 1989 Charitable Trust Mr and Mrs Colin Blowers** 

**National Lottery Community Fund, Young Start programme** 

## **Dr Michael Oliver OBE DL** 

**Bradbury Family Trust Charles Burrell 2016 Charitable Settlement** 

## **Pilkington Charity Fund** 

**Proludic Ltd** 

**Coysh Family Charitable Trust** 

**RAF Habbaniya Association** 

**Ray Daniels Grayson Ditchfield** 

**Red Arrows Trust** 

## **Schroders Personal Wealth** 

**Dyers’ Company** 

**Scottish Government Armed Forces Third Sector Resilience Fund** 

**Exolum International UK** 

**Pascal Fournier** 

**Sir Donald and Lady Edna Wilson Charitable Trust** 

**Identity Group** 

**The Inter-Livery Target Rifle Shoot** 

## **Thales Charitable Trust** 

**John Isabel** 

## **Westwood Charitable Trust** 

**James Weir Foundation** 

**Wimbledon Foundation** 

**J H Bartlett Charity Trust John James Bristol Foundation** 

**Laurence Masters Will Trust** 


~~FINANCIAL HIGHLIGHTS~~ **Total income:** £23.9M* **(2021: £25.5M)** ~~LEGACIES:~~ ~~**£11.6M/49%**~~ (2021: £11.5M/45%) ~~DONATIONS, OTHER FUNDRAISING AND TRADING:~~ ~~**£5.1M/21%**~~ (2021: £4.8M/19%) ~~INVESTMENT INCOME:~~ ~~**£2.7M/11%**~~ (2021: £2.5M/10%) ~~CHARITABLE ACTIVITIES:~~ ~~**£1.2M/5%**~~ (2021: £1M/4%) ~~OTHER INCOME:~~ ~~**£3.3M/14%**~~ (2021: £5.7M/22%) *Income from legacies and fundraising was £16.7M, 70% of total income generated. £22.5M **(2021: £22.4M) Total expenditure:** 


~~DIRECT SUPPORT TO INDIVIDUALS:~~ ~~**£9.1M/40%**~~ (2021: £9.5M/42%) 

~~WELFARE PROGRAMMES AND GRANTS:~~ ~~**£4.6M/21%**~~ (2021: £4.5M/20%) ~~RESPITE CARE:~~ ~~**£1.3M/6%**~~ (2021: £1.3M/6%) ~~HOUSING TRUST PROVISION:~~ ~~**£2.5M/11%**~~ (2021: £2.4M/11%) ~~GENERATING INCOME:~~ ~~**£5M/22%**~~ (2021: £4.7M/21%) 

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TRUSTEES’ REPORT 

## **Financial review** 

## ~~OVERVIEW~~ 

One of the aims of our new five-year Shaping The Future strategy is being sustainable for the future. As we reported last year, we are determined to have a financially sustainable model that will allow us to continue supporting the RAF Family for many years to come. 

We entered 2022 aware of some major risks that could make a significant impact on our financial outcomes in the year. These included high energy prices, rising inflation, the cost-of-living crisis, higher interest rates, a challenging labour market and volatility on the investment markets. These factors had the potential to drive up demand for our support and services on one hand while inhibiting our ability to generate income on the other. 

Despite the challenging environment we were able to generate total income of £23.9M (2021: £25.5M) in 2022. Total income in 2021 included £4.2M received from the disposal of Princess Marina House and when this is taken into account, we saw an overall increase in income from normal activity. Key contributors included legacy income and property disposals. Our legacy income performance is reflective of a successful year for legacy bequests in the charity sector. 

We saw a significant increase in demand for some of our core welfare support, such as wellbeing services and grants. The former saw the single largest increase in demand. The cost-of-living crisis led to an increase in the number of working-age RAF Family members we supported through grants compared to 2021. Total expenditure at £22.5M was 1% higher than the previous year. While we saw significant increases driven by more demand and higher costs, we offset these with lower expenditure in other areas. 

Our overall net income before investment market losses was £1.4M (2021: £3.2M). The value of our investments fell by £8.7M (2021: increased by £6.6M). 

## ~~INCOME~~ 

Our total income in 2022 was £23.9M, £1.6M (6.6%) lower than the £25.5M generated in 2021. The income generated included £3.1M (2021: £5.5M) of profit from the disposal of fixed assets. Before the profit on disposal of assets is taken into account, income was £20.8M (2021: £20.0M), a 3.9% increase year-on-year. 

Fundraised income was £16.7M (2021: £16.3M). As mentioned above, 2022 was another good year for legacy income, raising £11.6M (2021: £11.5M), a 1.3% increase on the previous year. Legacy income made up 49% (2021: 45%) of total income in 2022. 

Donation income was £4.7M (2021: £4.2M) an 11.0% increase. This included £1.6M (2021: £1.6M) income from serving RAF personnel, through our Service Day’s Pay Giving scheme. As in 2021, we saw mixed performances in the different aspects of our fundraising when compared to the previous year. We were able to recover some of the ground lost in 2021 due to the Covid-19 pandemic. However, we did face some challenges, such as difficulty in recruiting for fundraising roles because of labour market conditions. Trading activities generated £0.4M (2021: £0.6M). 

In 2022 we used 81p in every pound raised from donations and legacies for charitable activities (2021: 81p). In addition, we invested 91% (2021: 100%) of the £1.2M (2021: £1.1M) generated from our charitable activities back into supporting the RAF Family. Most of this was rental income. 

£22.7M/95% (2021: £24.6M/96%) of our total income was unrestricted, meaning our Trustees could decide how best to use resources and direct them where they were most needed. 

Following careful consideration, we decided to sell our office property in Edinburgh, with a view to moving into modern, purposebuilt, Equality Act 2010-compliant premises. We completed the sale during the year and 


**----- Start of picture text -----**<br>
INCOME £23.9M<br>25<br> 2021<br>20<br> 2022<br>15<br>£M 25.5<br>23.9<br>10<br>21.4<br>11.6 11.5<br>5<br>5.1 4.8 5.7<br>2.7 2.5 3.3<br>1.2 1.0<br>0<br>Total   Legacies Donations  Investment  Charitable  Other<br>and other  income activities income<br>income<br>fundraising<br>have put the £0.9M net proceeds into a  The £17.5M included expenditure on direct<br>designated fund to use when we determine  support to individuals (2022: £9.1M/2021:<br>the best way to fulfil the requirement for  £9.5M), welfare programmes and external<br>our presence in Scotland and when property  grants (2022: £4.6M/2021: £4.5M), housing<br>market conditions are favourable.  support (2022: £2.5M/2021: £2.4M) and<br>respite care (2022: £1.3M/2021: £1.3M).<br>We were able to maintain investment<br>income, despite 2022 being a particularly  Wellbeing was the area that saw the<br>difficult year for investors globally. Soaring  largest single increase in support, with<br>inflation, the war in Ukraine, lockdown  the main drivers being our Listening and<br>measures in China and monetary policy of  Counselling Service and Headspace. Our<br>central banks all resulted in negative returns.  wellbeing services, available to both serving<br>However, the investment managers for  personnel and veterans and delivered<br>our long-term funds were able to maintain  through contracts with other organisations,<br>income distributions. Our medium-term  cost £1.1M (2021: £888K). Grant funding to<br>investment strategy to invest in low-risk,  support the veteran community was £476K<br>quality, short-dated bonds also worked  (2021: £399K) and grant funding to the<br>well, and gross income yield was £2.7M  serving RAF was £255K (2021: £197K).<br>(2021: £2.5M).<br>The cost-of-living crisis drove an increase<br>in the number of working-age RAF Family<br>members we supported financially in<br>EXPENDITURE<br>the year. Through our subsidiary the<br>Total expenditure in 2022 was £22.5M   Dependants Fund, we paid £360K (2021:<br>(2021: £22.4M) a £0.1M/1% increase on the  £280K) in death grants.<br>previous year.<br>Our charitable activities undertaken to provide<br>welfare support and services to the RAF Family<br>cost £17.5M (2021: £17.7M). This total includes<br>support costs of £3.2M (2021: £3.3M).<br>**----- End of picture text -----**<br>


Wellbeing was the area that saw the largest single increase in support, with the main drivers being our Listening and Counselling Service and Headspace. Our wellbeing services, available to both serving personnel and veterans and delivered through contracts with other organisations, cost £1.1M (2021: £888K). Grant funding to support the veteran community was £476K (2021: £399K) and grant funding to the serving RAF was £255K (2021: £197K). 

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TRUSTEES’ REPORT 

## ~~EXPENDITURE £22.5M~~ 


**----- Start of picture text -----**<br>
30<br> 2021<br>25<br> 2022<br>20<br>£M<br>15<br>22.5 22.4<br>10<br>5 9.1 9.5<br>4.6 4.5 5.0 4.7<br>1.3 1.3 2.5 2.4<br>0<br>Total    Direct  Welfare  Respite   Housing  Generating<br>expenditure support to  programmes  care Trust  income<br>individuals and grants provision<br>**----- End of picture text -----**<br>


In 2021 housing support expenditure increased to £2.4M from £1.6M in 2020 due to Covid-related backlogs driving up demand for assistance and the shortage of building materials driving up costs. In 2022 the high volume and costs of property repairs continued to have an impact and housing support cost us £2.5M. In addition, we invested £0.9M in property purchases and adaptations. In providing this support we continued to focus on RAF Family members with the highest needs. 

recruitment challenges, created vacancies and curtailed activity. For every £1 we spent on fundraising we received £3.54 in the year (2021: £3.66). 

Support costs cover expenditure on management, IT, facilities, finance, HR, governance and information security. They also include the depreciation of fixed assets. This expenditure, which was allocated as mentioned above, came to £4.7M (2021: £4.8M), representing 21% of total expenditure and a 2% decrease from the previous year. 

On the whole, our welfare support continues to be more complex than our expenditure shows. 

## ~~HOUSING AND LOANS~~ 

Our ability to raise funds is critical to ensuring we are sustainable for the future. Three main areas of focus for us in 2022 were to increase our number of active donors, to grow our corporate and individual relationships, and to receive an optimum return on our investment in fundraising. 

Through our subsidiary the RAF Benevolent Fund Housing Trust Limited, we provide bespoke housing solutions, at affordable rents, for service personnel who are medically discharged from the RAF and are unable to secure suitable accommodation. The rent we received in 2022 equated to just under 55% of the open market rent of these properties. We consider the income forgone to be a charitable expenditure, supporting the RAF Family members most in need. This effectively amounts to a subsidy of around £0.8M based on the £1M rent received. The Housing Trust owned 193 properties on 31 

Income generation cost us £5.0M (2021: £4.7M), a £0.3M/7% increase on the previous year. The amount spent includes £1.5M support costs (2021: £1.4M). While we spent more year-on-year on raising funds, our 2022 expenditure was less than we planned. Staffing issues, mainly connected with 


December 2022 (2021: 203). We purchased and adapted two new properties (2021: six) in the year, at a cost of £0.9M (2021: £2.1M) and sold 12 properties (2021: eight) realising £3.8M (2021: £2.2M) in sales proceeds and £2.1M (2021: £1.3M) in net gain. 

We awarded £333K (2021: £131K) in new secured loans to RAF Family members. The interest we charge is much below market rates and we determine repayments on the basis of ability to repay the loan. We received £819K in loan repayments in 2022 (2021: £815K). The total value of loans to beneficiaries at the end of the year was £7.5M (2021: £7.9M). We proactively review our loan book to ensure that the value is not impaired, and we assess and report the recoverability of balances fairly. 

## ~~INVESTMENTS~~ 

We invest to preserve the real value of funds we hold and to generate income that helps us support the RAF Family. We do so by adopting a managed, diversified portfolio that generates an appropriate return at acceptable levels of risk. 

Our primary investment objectives are: 

- y To hold investments in a manner that will help us deliver our objectives in the short, medium and long term 

- y To earn a return of CPI plus 5%, ensuring that real capital value is preserved, and sufficient income is generated to contribute to funding our activities 

- y To measure overall performance against an agreed market-derived benchmark and use an industry-wide peer group benchmark to assess performance against the average 

- y To employ investment managers who generate low costs and develop relatively stable portfolios which meet the objectives of this strategy in the long term. 

BlackRock Investment Management (UK) Limited and CCLA Investment Management Limited have managed our long-term portfolios since 2016. In 2019 we appointed Close Brothers Asset Management to 

manage a bespoke portfolio invested in quality short-dated bonds to match our short- to medium-term cash requirements. Our primary medium-term objective is to ensure our cash requirements are met without undue exposure to investment risk, while still achieving good returns. 

In 2022 assets held with fund managers were valued at £71.1M (2021: £82.6M). Income yield from these investments was £2.3M (2021: £2.2M). 

2022 proved to be one of the most challenging market environments for investments in many years, leading to significant negative returns. The key challenges were high inflation, restrictive central bank policies, geopolitical tensions, a potential European energy crisis and the impact of all these on economic growth. 

Our funds managed by BlackRock are held in the Armed Forces Charities Growth and Income Fund, a Charity Authorised Investment Fund (CAIF). This fund aims to provide a net return on investment over a period of five or more consecutive years beginning at the point of investment, generated through an increase to the value of the assets held by the Fund and income received from those assets. The value of our investments in this fund on 31 December 2022 was £19.2M (2021: £22.3M). The fall in value was due to market losses. 

Over the year a net negative return of -10.6% (2021: 13.1%) was achieved compared to the benchmark negative return of -8.3% (2021: 12.9%). Total return over the five years to 2022 was 4.0%, compared to the benchmark return of 3.4%. Dividend yield in the 12 months to 31 December 2022 was 3.8% (2021: 3.2%). 

Our funds managed by CCLA are held in COIF Charities Investment Fund. This fund is designed to provide capital growth and rising income over time. The portfolio is invested mainly in equities but also includes other asset classes and aims to provide a return that is even-handed between present and future beneficiaries. 

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TRUSTEES’ REPORT 

The value of our investments in this fund on 31 December 2022 was £41.7M (2021: £47.2M). The fall in value was due to market losses. 

Over the year, a negative net return of -9.0% (2021: 17.4%) was achieved against a negative return benchmark of -10.1% (2021: 17.0%). Total return annualised over the five years to 2022 was 7.5%, compared to the benchmark return of 4.3%. Dividend yield in the 12 months to 31 December 2022 was 3.0% (2021: 2.7%). 

Assets held and performance indicators of our two long-term portfolios are summarised in the table below: 


**----- Start of picture text -----**<br>
BlackRock  CCLA<br>**----- End of picture text -----**<br>


|Value of assets|£19.2M|£41.7M|
|---|---|---|
|invested|||
|2022 income yield|3.8%|3.0%|
|2022 total return|-10.6%|-9.0%|
|2022 benchmark|-8.3%|-10.1%|
|Five-year total return|4.0%|7.5%|
|Five-year benchmark|3.4%|4.3%|



Asset class breakdown as at 31 December 2022: 


**----- Start of picture text -----**<br>
CCLA BlackRock<br>% %<br>Global equities 59.2 29.0<br>UK equities 9.2 26.8<br>Fixed income 4.9 16.6<br>Property 3.3 7.9<br>Cash and near cash 10.2 -<br>Infrastructure and  8.4 -<br>operating assets<br>Private equity and  2.7 -<br>others<br>Contractual and other  2.1 -<br>income<br>Alternatives - 19.7<br>100.0 100.0<br>**----- End of picture text -----**<br>


Our funds managed by Close Brothers Asset Management are invested in a lowrisk bespoke portfolio of short-dated, highquality corporate bonds with a maturity profile to meet liquidity requirements. The time horizon of the portfolio (the length of time money is expected to be invested) based on when and how much money is needed has determined the investment strategy. Since the inception of this portfolio all maturities have been met and the income paid in line with original expectations and requirements. By the end of 2022, the three-year time horizon of the portfolio was nearing its end. The value of the portfolio on 31 December 2022 was £10.2M (2021: £13.1M). The net yield on this portfolio in the year was 1.2% (2021: 0.4%). 

The RAF Benevolent Fund is the sole Trustee of The Royal Air Force Disabled Holiday Trust (DHT). The DHT held property investments valued at £552K at the year end (2021: £546K). These assets are used to provide affordable breaks to DHT members. 

Unrealised market losses on investments at the year end were £8.7M (2021: gains of £6.6M). 

## ~~PENSION DEFICIT~~ 

Under FRS 102 the closed defined benefit pension scheme had a deficit of £3.1M (2021: £13.5M). The actuarial valuation of the scheme, updated to reflect funding progress, as at 31 October 2021 revealed a funding shortfall (Technical Provisions minus value of assets) of £8.6M. To eliminate this updated funding shortfall, the Staff Pension Fund Trustee and the Fund agreed that the Fund would pay deficit funding contributions to the scheme of £100K per month from 1 January 2021 until 31 October 2028. £1.2M was paid in 2022. The next triennial valuation will be as at 31 December 2023. 


## ~~RESERVES~~ 

Total funds as at 31 December 2022 were £124.1M (2021: £122.0M). These comprised of unrestricted funds of £113.0M (2021: £109.2M), while restricted and endowment funds were £11.1M (2021: £12.8M). 

Unrestricted reserves included operational assets of £34.6M (2021: £36.8M), designated funds of £27.9M (2021: £29.1M) and free reserves of £50.5M (2021: £43.3M). 

Our commitment to support the RAF Family is a long-term one. It remains as firm today as it was in 1919. We will continue to stand beside the RAF Family for the next 100 years, through all of life’s challenges and hardships. To honour this, we continue to take a risk-based approach to determining our free reserves minimum requirement. We must ensure funds are available to meet the demand for our welfare services and to secure, as far as possible, future financial viability. We continue to manage the risks associated with our 2022-2026 Shaping The Future strategy. These include the uncertainty of future income, particularly where we have realistic but ambitious targets, the timing of cash receipts from legacies and increasing welfare demand. We have also factored in our discretionary commitment to the Dependants Fund. 

Free reserves as of 31 December 2022 were £50.5M (2021: £43.3M). The main reason for this increase is the £10M reduction in the pension deficit based on the FRS 102 valuation at the end of 2022. Trustees have determined that at this time, we should hold a minimum of £40M in free reserves to be assured that we are able to sustain the support we provide to the RAF Family in these unprecedented times and in the long term, as well as meet other obligations, irrespective of fluctuations in income and market conditions. 

**Designated funds** were £27.9M (2021: £29.1M). £12.8M of this is funds to be spent on bringing forward welfare services included in our 2022–2026 strategic plan, so we can help beneficiaries earlier and 

augment our core welfare offer, including respite, in response to identified need. Setting funds aside for our welfare provision continues to be important as we implement our strategy and achieve its goals in the current economic context of increased costs and a possible recession. This level of reassurance helped us move quickly to develop and launch our initiative offering up to £520 towards energy bills to RAF Family members in need during 2022. 

£1.2M of the fund set aside for pension deficit recovery contributions up until October 2028 was paid out in the year, leaving a balance of £7.0M at the end of 2022 (2021: £8.2M). 

£7.2M (2021: £8.1M) reserves of the Dependants Fund are set aside to meet our commitment to support RAF personnel who are subscribers to the Fund. The Dependants Fund reserves fell by £886K (2021: £1.1M gain) due to the £893K (2021: £958K gain) decline in the market value of investments and a £7.6K operating surplus (2021: £131K). 

**Restricted funds** representing the unspent balance of funds received for specific charitable activities were £5.1M (2021: £5.9M). The largest single restricted fund of £2.8M (2021: £3.0M) is for the maintenance and upkeep of the Bomber Command Memorial. 

Endowment funds include both permanent and expendable funds and were £6.0M (2021: £6.9M). These funds represent income donated to the Fund, but subject to the condition that the capital remains unspent. The decrease in the value of the fund was due to the £972K investment market loss at the end of the year (2021: £611K gain). 

The Trustees are assured that we have adequate resources to continue to operate for the foreseeable future and we therefore continue to adopt the going concern basis in preparing our financial statements. 

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## ~~STRUCTURE, MANAGEMENT, GOVERNANCE AND RISK~~ 

if we had any gaps in skills, background or experience we needed to fill to help us meet our strategic and operational goals. 

## ~~REFERENCE AND ADMINISTRATIVE DETAILS~~ 

The Royal Air Force Benevolent Fund has the Charity Commission registration number 1081009. As we own/lease land and properties in Scotland, we are also registered with the Office of the Scottish Charity Regulator (OSCR) to comply with the Charities and Trustee Investment (Scotland) Act 2005. Our registration number is SCO38109. Our restricted and endowed funds have a separate registration number, 207327. 

Following this, and after a series of open selection campaigns, a selection panel (convened by our Nominations Committee) interviewed and recommended five new Trustees to join us in September 2022. Alongside our existing Trustees who have backgrounds, skills and experience in industry, law, commerce and other sectors, our five new Trustees include a serving Trustee, Trustees with lived RAF experience, a new Safeguarding Lead Trustee and a communications Trustee. Our Council (Advisory) formally elected these new Trustees in December 2022. 

In accordance with Section 96 of the Charities Act 1993 (now replaced by Section 20 of the Charities Act 2011), the Charity Commission has stipulated that the two charities, having the same charity Trustees, are to be treated as a single charity. 

Throughout 2022, our Board (either as a whole or via its committees) continued to receive ongoing briefings and training from senior management and external advisers in critical areas such as risk management, reserves, fundraising practices, safeguarding and data protection. 

We are also registered as a Royal Charter Company with the Companies House registration numbers ZC000201/RC000773. 

The RAF Benevolent Fund Group also encompasses other entities – you can find details of these at the back of this report. We carry out some of our activities through these organisations. 

We reviewed the terms of reference for our Safeguarding Lead Trustee (who changed during the year) in 2022. This Trustee advises our Board on all safeguarding matters and ensures that we comply with all legal and good practice requirements around safeguarding. We also reviewed the terms of reference for our Senior Independent Trustee (who also changed on 1 April 2023). 

## ~~STRUCTURE AND GOVERNANCE~~ 

The Fund, which was set up in 1919, was incorporated by Royal Charter in 1999. Trustees are appointed by our Council for a four-year term. They are then eligible for re-election for up to a further four-year term. Trustees may not hold office for a continuous period of more than eight years without the consent of our Board. 

Our Board of Trustees is responsible for setting our strategy and policies so we can achieve our charitable objectives, as set out in our Royal Charter. It is also responsible, through its committees, for monitoring the activities of our Executive Leadership Team, led by our Controller. It does this by reviewing our progress against our strategic and business plans and receiving reports from the committees and the Executive 

Our Board of Trustees is made up of no fewer than 10 and no more than 15 Trustees. In 2022 we undertook a skills audit of our existing Trustees so we could understand 


Leadership Team. Our Board also conducts annual performance reviews of our Controller and the Chair of the Board, and undergoes its own periodic Board appraisal. Our Controller, as our Chief Executive, is responsible for the day-to-day management of our affairs. 

Our Board met four times in full session in 2022. It also met separately for an away-day strategy session. 

During the year our Board Committees were: 

y Finance, Audit and Investments Committee 

- y Fundraising, Communications and Engagement Committee 

- y Major Grants Committee 

- y Nominations Committee 

- y Remuneration Committee 

- y Small Grants Committee (dissolved in December 2022) 

y Welfare and Safeguarding Committee. 

We would like to say thank you to all our committee members for their advice and guidance during the year. 

## ~~MANAGING RISK~~ 

Our Board of Trustees has overall responsibility for managing the risks the charity and its subsidiary entities face. Our Board delegates this responsibility, in part, to its committees. They receive regular reports and provide recommendations and updates to the Board about risks within their remit. 

Our Board discusses strategic risk each time it meets. Our Executive Leadership Team also regularly assesses and manages risk. We undertook a fundamental review of our management of risk in 2022. The review has given us the resilience and agility to effectively manage uncertainty, make informed decisions, understand and minimise threats, seize opportunities and, most importantly, make the maximum possible positive impact on the RAF Family. 

The strategic risks we face are: 

## **Income and financial sustainability** 

We acknowledge we may be unable to raise sufficient income to cover what we need to fund the RAF Family’s current and future welfare needs. We also acknowledge that the current economic climate and cost-of-living pressures could impact our fundraising in the short term. 

We are mitigating this risk by focusing on growing our supporter database and developing our individual and corporate relationships. 

We aim to deliver our core and augmented welfare offering within affordable budgets ensuring that all our work aligns with our strategic aims. We also have a robust riskbased reserves policy which we monitor regularly and review as appropriate. 

## **Meeting the needs of the RAF Family** 

Our ability to continue to meet the RAF Family’s needs could be affected by the performance of the third-party organisations we rely on to provide services, our own failure to deliver effective and timely support, a rise in demand for our welfare services, or a lack of understanding of the RAF Family affecting our ability to deliver services that meet their needs. 

We mitigate this risk by continuing to strengthen our local community engagement and focusing on making the journey to receiving our support smoother through our Welfare Navigator and Welfare Support Executive programmes. We now have greater direct involvement with caseworking and have introduced an online application system to speed up the process for making small financial assistance applications. When awarding contracts to third-party suppliers we only work with those who share our values and have built in regular oversight of performance. 

We use data and analysis to understand the needs of the RAF Family and the environment we work in. We also continue to engage closely with our sister charities to avoid overlap and competition as well 

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as promote collaboration and partnership working where possible. 

## **Safeguarding and duty of care** 

We are committed to providing a safe and respectful environment for everyone who engages with us, whether it is the RAF Family, supporters, employees, contractors or volunteers. A failure in our safeguarding processes could result in harm and significant damage to our reputation. 

We recognise that our new strategy includes getting closer to the people we support, which inherently increases the risk of a safeguarding concern. 

We mitigate this risk by making sure we have a robust safeguarding policy in place, which is crossed referenced with our other policies and independently audited every three years. Safeguarding training for staff and Trustees is mandatory and we have a Safeguarding Lead Trustee on our Board. 

## **Information and data security** 

The nature of our work means we process large volumes of personal data. There are risks inherent in doing this, including human error, failure to ensure secure data transfer, inadequate storage or inappropriate retention of data, ineffective business continuity and disaster recovery, and cyberattacks. 

We mitigate these risks by making sure our policies and procedures are up-todate, compliant with legislation and the Information Commissioner’s requirements and embedded with our staff. In 2022 we achieved Cyber Essentials Plus certification. Our staff all have to undertake annual mandatory training on data protection and the UK General Data Protection Regulation (GDPR). 

## **Governance and compliance with regulatory requirements** 

Our risks here include failure to comply with necessary legal requirements, apply best practice, adopt the Charity Governance Code or keep up-to-date with changes in legislation. 

We mitigate these risks through training and development, including inductions for new Trustees. Our Head of Governance keeps abreast of changes and implications for the Fund, as do a number of other subject matter experts among our staff. 

## **Fund capability: people, leadership and culture** 

Staff turnover, recruitment and retention were key risks for the Fund in 2022. We mitigated these by keeping abreast of employment market conditions and reacting accordingly, including monitoring salaries and making sure our renumeration policy remained relevant and was complied with. We ensure our recruitment processes were effective, from advertising to selection and job offers and remain committed to developing our staff. We have a comprehensive benefits package in place and review this annually. 

## ~~REMUNERATION POLICY AND REVIEW~~ 

We continue to be strongly committed to recruiting, developing and retaining staff with the right skills and knowledge to deliver our objectives and with the ability to make a positive contribution. We believe making effective decisions around remuneration and reward is crucial to achieving our overall aims. 

Our remuneration policy centres on rewarding employees in a fair, equitable and transparent way, and aiming to pay competitively against our relevant competitors in the third sector. 

We focus on a ‘total reward’ approach, recognising that broader aspects of employment offers including non-financial benefits such as flexible working and development opportunities, as well as the values we uphold as an organisation, are of increasing value to employees. 

Our Remuneration Committee reviews our remuneration policy each year to make sure we are adhering to its principles and that 


those principles are still appropriate. The committee also reviews our pension and broader reward provision and considers an annual pay award. The committee uses external expert analytics and benchmarks to make its recommendations, which it then submits to our Board of Trustees for approval. 

We aim to match, where appropriate and affordable, competitive salaries based on current market conditions for any role. 

In August 2022 our Remuneration Committee met to consider a one-off costof-living payment for eligible staff. This was subsequently approved by our Board in August 2022. 

In reviewing salary recommendations for 2023, our Trustees considered the impact of a number of factors on staff, including the ongoing economic climate and rising inflation. As a result a 3% annual pay award was agreed alongside a further one-off costof-living award, both of which were paid in January 2023. 

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TRUSTEES’ REPORT 

## ~~PRINCIPAL PROFESSIONAL ADVISERS~~ 

**Independent external auditor** Saffery Champness LLP 71 Queen Victoria Street London EC4V 4BE 

## **Solicitors** 

Charles Russell Speechlys LLP 5 Fleet Place London EC4M 7RD 

## **Independent internal auditor (appointed 6 March 2023)** 

## **Investment managers** 

BlackRock Investment Management (UK) Limited 12 Throgmorton Avenue London EC2N 2DL 

MHA MacIntyre Hudson 6th floor, 2 London Wall Place London EC2Y 5AU 

## **Bankers** 

CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET 

Barclays Bank plc 1 Churchill Place London E14 5HP 

Close Brothers Asset Management 55 Grosvenor Street London W1K 3HY 

## **Actuary** 

Broadstone Corporate Benefits Limited 55 Baker Street London W1U 7EU 


## ~~STATEMENT OF TRUSTEES’ RESPONSIBILITIES~~ 

Our Trustees are responsible for preparing our Trustees’ Report and our financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

2005 and the Charities Accounts (Scotland) Regulations 2006 and the provisions of its Royal Charter. 

They are also responsible for safeguarding our assets and, hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware: 

The law applicable to charities in England and Wales requires our Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Fund and the group and of the incoming resources and application of resources of the Fund for that period. In preparing these financial statements, our Trustees are required to: 

   - y There is no relevant audit information of which the Fund’s auditor is unaware. 

   - y They have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

- y Select suitable accounting policies and then apply them consistently 

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Fund’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

- y Observe the methods and principles in the Charities Statement of Recommended Practice (SORP) (FRS 102) 

- y Make judgements and estimates that are reasonable and prudent 

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

## ~~TRUSTEE DECLARATION~~ 

Trustees hereby approve the 2022 Annual Report on 27 June 2023. 

- y Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Fund will continue in business. 


Our Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time our financial position and enable them to ensure that the financial statements comply with the Charities Acts 2011 and 2022, the Charities and Trustee Investment (Scotland) Act 

## **Richard Daniel BSc (Hons) FRAeS** 

Chair, Royal Air Force Benevolent Fund 

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INDEPENDENT AUDITOR’S REPORT 

## ~~INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES~~ 

## ~~OPINION~~ 

## ~~BASIS FOR OPINION~~ 

We have audited the financial statements of the Royal Air Force Benevolent Fund (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2022 which comprise of the consolidated statement of financial activities, the consolidated and charity balance sheets, the statement of cash flows and notes to the financial statements, including 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). 

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 group and parent 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. 

In our opinion the financial statements: 

## ~~CONCLUSIONS RELATING TO GOING CONCERN~~ 

y Give a true and fair view of the state of the affairs of the group and the parent charity at 31 December 2022 and of the group’s incoming resources and application of resources for the year then ended; 

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

- y Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

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 group or the parent charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. 

- y Have been prepared in accordance with the requirements of the Charities Act 2011; and 

- y Have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and Regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 

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 Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## ~~MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION~~ 

We have nothing to report in respect of the following matters in respect of which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion: 

- y The information given in the Trustees’ Report is inconsistent in any material respect with the financial statements; or 

- y The parent charity has not kept proper and sufficient accounting records; or 

- y The parent charity’s financial statements are not in agreement with the accounting records and returns; or 

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

## ~~RESPONSIBILITIES OF TRUSTEES~~ 

As explained more fully in the statement of Trustees’ responsibilities set out on page 37, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the Trustees are responsible for assessing the group and the parent 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 Trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so. 

## ~~AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS~~ 

We have been appointed as auditors under the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under those Acts. 

Our objectives are to obtain reasonable assurance about whether the group and parent charity 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 

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INDEPENDENT AUDITOR’S REPORT 

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below. 

## **Identifying and assessing risks related to irregularities:** 

We assessed the susceptibility of the group and parent charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the Trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charity by discussions with informed management and updating our understanding of the sector in which the group and parent charity operates. 

Laws and regulations of direct significance in the context of the group and parent charity include the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities (Accounts and Reports) Regulations 2008, the Charities Accounts (Scotland) Regulations 2006 (as amended) and guidance issued by the Charity Commission for England and Wales and the Office of the Scottish Charity Regulator. 

## **Audit response to risks identified:** 

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance. 

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or had knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting 


from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 

A further description of our responsibilities is available 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 parent charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the parent charity’s Trustees 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 parent charity and the parent charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


Saffery Champness LLP 

Chartered Accountants 

Statutory Auditors 

71 Queen Victoria Street, London EC4V 4BE 

Date: 24 July 2023 

Saffery Champness LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006. 

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FINANCIAL STATEMENTS 

## ~~FINANCIAL STATEMENTS~~ 

## Consolidated statement of financial activities 

For the year ended 31 December 2022 


**----- Start of picture text -----**<br>
2022 2021<br>£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000<br>Income and endowments from<br>Donations and legacies 15,430  901   -   16,331   15,028   685   -   15,713<br>Charitable activities  1,134   -   -   1,134   1,030   20   -   1,050<br>Other trading activities  399   -   -   399   547   19   -   566<br>Investments  2,480   225   -   2,705   2,268   216   -   2,484<br>Other income  3,284   -   -   3,284   5,715   -   -   5,715<br>Total income 2 22,727 1,126   -  23,853  24,588 940  -  25,528<br>Expenditure on raising funds  5,000   13   -  5,013   4,683   19   -   4,702<br>Expenditure on charitable activities<br>Direct support to individuals  8,541   512   -   9,053   8,970   513   -   9,483<br>Welfare programmes and grants  4,111  449   -   4,560   4,199   312   -   4,511<br>Respite care  1,104   217   -   1,321   1,163   114   -   1,277<br>Housing Trust support  2,256   281   -   2,537   2,318   68   -   2,386<br> 16,012 1,459   -  17,471  16,650 1,007  -  17,657<br>Total expenditure 3  21,012 1,472   -  22,484  21,333  1,026   -  22,359<br>Net income/(expenditure) before  1,715  (346)  -   1,369  3,255   (86)  -   3,169<br>gains on investments<br>Transfers between funds  47   (47)  -   -   4   (4)  -   -<br>Net (losses)/gains on investments 11 (7,358)  (322)  (972)  (8,652)  5,790   221   611   6,622<br>Net income/(expenditure) (5,596) (715) (972) (7,283)  9,049   131   611  9,791<br>Other recognised gains and losses:<br>Actuarial gains/(losses) on defined  15  9,441   -   -   9,441   2,266   -   -   2,266<br>benefit pension scheme<br>Net movement in funds  3,845 (715) (972)  2,158   11,315   131   611  12,057<br>Total funds brought forward 109,174 5,859 6,930  121,963  97,859 5,728 6,319 109,906<br>Total funds carried forward 23 113,019 5,144 5,958  124,121  109,174 5,859 6,930 121,963<br>Note Unrestricted  funds Restricted  funds Endowed  funds   Total Unrestricted  funds Restricted  funds Endowed  funds   Total<br>**----- End of picture text -----**<br>


The notes on pages 45 to 77 form part of the financial statements. All amounts relate to continuing operations. All gains and losses recognised in the year are included in the statement of financial activities. 

Consolidated and charity balance sheets As at 31 December 2022 


**----- Start of picture text -----**<br>
Group  Group  Charity  Charity<br>Note 2022 2021 2022 2021<br>£’000 £’000 £’000 £’000<br>Fixed assets<br>Intangible assets 9 35 187 35 187<br>Tangible assets 10 27,073 28,663 4,630 4,878<br>Investments 11 71,639 83,114 64,847 75,429<br>Loans to beneficiaries 12 7,486 7,948 7,486 7,948<br>106,233 119,912 76,998 88,442<br>Current assets<br>Stock  5  3  -   -<br>Debtors and prepayments 13  10,027 10,623  19,409  21,763<br>Cash at bank and in hand  13,494  7,449  10,936  5,633<br>23,526 18,075 30,345 27,396<br>Current liabilities<br>Creditors and accrued charges:  14  (2,582)  (2,559)  (2,164)  (2,101)<br>amounts falling due within one year<br>Net current assets 20,944 15,516 28,181 25,295<br>Net assets excluding long-term  127,177 135,428 105,179 113,737<br>liabilities and pension liability<br>Defined benefit pensions liability 15 (3,056) (13,465) (3,056) (13,465)<br>Total net assets  124,121 121,963 102,123 100,272<br>Funds<br>Endowment funds 5,958 6,930 5,958  6,930<br>Restricted funds 5,144 5,859 5,144  5,859<br>Designated funds 27,911 29,062  20,735   21,000<br>General funds 88,164 93,577  73,342  79,948<br>Pension reserve (3,056) (13,465) (3,056) (13,465)<br>23 124,121 121,963 102,123 100,272<br>**----- End of picture text -----**<br>


Approved by the Board of Trustees on 27 June 2023 and signed on its behalf by 


## **Richard Daniel BSc (Hons) FRAeS** 

Chair, Board of Trustees 

42 

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FINANCIAL STATEMENTS 

## Consolidated statement of cash flows 

For the year ended 31 December 2022 


**----- Start of picture text -----**<br>
2022 2021<br>£’000 £’000<br>Net cash used in operating activities (3,764) (8,829)<br>Cash flows from investing activities<br>Dividends and interest from investments  2,705  2,484<br>Proceeds from the sale of property  4,735  10,097<br>Purchase of property and equipment (940) (2,143)<br>Net proceeds from sale of investments  2,823  1,763<br>Net cash provided by investing activities 9,323 12,201<br>Cash flows from financing activities<br>Loans awarded (333) (131)<br>Loan repayments  819  815<br>Net cash provided by financing activities  486  684<br>Change in cash and cash equivalents in the year  6,045 4,056<br>Cash and cash equivalents as at 1 January 7,449 3,393<br>Cash and cash equivalents as at 31 December 13,494 7,449<br>Reconciliation of net income to net cash flow from operating activities<br>Net income/(expenditure) for the year ended 31 December (7,283) 9,791<br>Adjustments for:<br>Depreciation charges and amortisation  1,000  1,031<br>Gains on investments  8,652  (6,622)<br>Income attributable from joint venture  -  -<br>Dividends and interest from investments (2,705) (2,484)<br>Profit on the sale of fixed assets (3,053) (5,502)<br>Loan interest (96) (43)<br>Loans converted to grants  15  4<br>Loans written off less provision  57  -<br>Decrease/(increase) in stock (2) 3<br>(Increase)/decrease in debtors 596 (3,350)<br>(Decrease)/increase in creditors  23  (857)<br>Pension interest expense  232  200<br>Pension fund costs (1,200) (1,000)<br>Net cash used in operating activities (3,764) (8,829)<br>Analysis of cash and cash equivalents<br>Current accounts  13,494  7,449<br>Total cash and cash equivalents  13,494  7,449<br>**----- End of picture text -----**<br>



## **Analysis of changes in net debt** 


**----- Start of picture text -----**<br>
At 1 January  Cash flows At 31 December<br>2022 2022<br>£’000 £’000 £’000<br>Cash – current accounts 7,449 6,045  13,494<br>At 1 January  Cash flows At 31 December<br>2021 2021<br>£’000 £’000 £’000<br>Cash – current accounts 3,393 4,056  7,449<br>**----- End of picture text -----**<br>


## ~~NOTES TO THE FINANCIAL STATEMENTS~~ 

## **1** Principal accounting policies 

FOR THE YEAR ENDED 31 DECEMBER 2022 

These are the financial statements of the Royal Air Force Benevolent Fund and its related entities. The Charity was incorporated by Royal Charter in England and Wales on 24 November 1999. Our Trustees are named on page 3. Our registered office is 67 Portland Place, London W1B 1AR. 

## ~~ACCOUNTING CONVENTION~~ 

These financial statements have been prepared on a going concern basis under the historical cost convention, with the exception of investments which are included at market value, and in accordance with applicable accounting standards. 

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

## ~~BASIS OF PREPARATION~~ 

The consolidated financial statements have been prepared to give a true and fair view and 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 (FRS 102) rather than Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005) which has been withdrawn. 

The Charity is a public benefit entity for the purposes of FRS 102 and therefore the financial statements have been prepared in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS 102)), the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 as amended 

44 

45 



FINANCIAL STATEMENTS 

by the Charities Accounts (Scotland) Amendment (No. 2) Regulations 2014. 

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiary entities are consolidated on a line by line basis. A summary of the results of the subsidiary entities is shown in Note 27. 

## ~~FUNCTIONAL CURRENCY~~ 

The Charity’s functional and presentational currency is GBP and is shown as £’000s in the financial statements. 

## ~~GOING CONCERN~~ 

The Trustees have assessed whether the use of the going concern basis is appropriate. They have reassessed the business plans, income and expenditure projections, and taken the Charity’s reserves levels into account. Their conclusion is that there is no doubt about the Charity’s ability to continue operating as a going concern. 

The Trustees have made this assessment for a period of at least one year from the date of approving the financial statements and are assured that the Charity has adequate resources to continue to operate for the foreseeable future. 

The Charity therefore continues to adopt the going concern basis in preparing its financial statements. 

## ~~FUND ACCOUNTING~~ 

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim 

and use of the designated funds are set out in the notes to the financial statements. 

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

Endowment funds are either permanent or expendable. Permanent funds are normally held indefinitely, while Trustees have the power to convert expendable funds into income. These funds are set out in Note 26. The return on endowment investments is made up of income earned and gains or losses in the market value of the investments. 

Income generated from endowment funds is spent on charitable activities. Investment income and gains are allocated to the appropriate fund. 

## ~~RECOGNITION OF INCOME~~ 

Income is recognised in the SOFA when the Charity becomes entitled to it, it is more likely than not that the income will be received, and the monetary value of the income can be estimated with sufficient accuracy. Entitlement to legacy income is assumed when there is sufficient evidence that a gift has been left to the Charity, usually through the notification of a Will. Receipt of legacy income is deemed probable when there has been a grant of probate, and it has been established that there are sufficient assets in the estate to pay the legacy and there are no conditions attached to the legacy that are outside the control of the Charity or uncertainty around receipt of this gift. Income from pecuniary legacies is recognised upon notification or receipt if earlier. 

Gifts donated for resale are included as income when they are sold. No amounts are included in the financial statements for services donated by volunteers. 


## ~~RECOGNITION OF EXPENDITURE~~ 

Expenditure is recognised in the SOFA on an accrual basis when an obligation that can be measured or reliably estimated exists at the reporting date and it is more than likely that payment will be paid in settlement. 

Two main categories of expenditure shown in the SOFA are expenditure on raising funds and expenditure on charitable activities. Expenditure on raising funds includes all expenditure incurred to raise voluntary income to spend on charitable purposes as well as investment management fees. Expenditure on charitable activities includes all costs incurred by the Charity in carrying out its charitable aims to support the beneficiaries of the RAF Benevolent Fund. 

## ~~SUPPORT COSTS~~ 

Support costs have been classified as: information technology and facilities, depreciation, general management and administration, finance and payroll, HR and governance. These costs have been allocated to activities on a basis consistent with the use of resources, and indirect costs have been apportioned on a headcount basis or in proportion to direct costs or income. 

## ~~GRANT COMMITMENTS~~ 

Grants awarded are expensed in the SOFA in the year in which they are approved by the Trustees and the offer is conveyed to the recipient. Grants awarded but not paid are recorded as a liability within the balance sheet. 

## ~~DEPRECIATION~~ 

Tangible fixed assets costing more than £1K 

(£5K in the RAF Benevolent Fund Housing Trust Ltd) are capitalised and included at cost, including any incidental expense of acquisition. 

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight-line basis over their expected useful economic lives as follows: 

- y Freehold land – nil 

- y Freehold buildings – over 50 years 

- y Leasehold buildings – over the life of the lease, or 50 years if shorter 

- y Leasehold improvements – over 30 years 

- y Project and office equipment – over five years 

- y Computer equipment – over three years 

- y Motor vehicles – over five years. 

A full year’s depreciation is provided in the year of asset acquisition, and none in the year of disposal. 

## ~~INTANGIBLE FIXED ASSETS AND AMORTISATION~~ 

Software is classified as an intangible fixed asset and is capitalised where the cost plus incidental expenses incurred in acquisition is more than £1K. 

Amortisation is provided on intangible fixed assets to write off the capitalised value on a straight-line basis over three years. A full year’s amortisation is provided in the year of asset acquisition, and none in the year of disposal. 

## ~~FOREIGN CURRENCIES~~ 

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the exchange rate ruling at the balance sheet date. All differences are taken to the SOFA. 

## ~~RELATED PARTY DISCLOSURES~~ 

The Charity has made the required disclosures in accordance with the Charities SORP (FRS 102). 

46 

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FINANCIAL STATEMENTS 

Transactions with group undertakings are eliminated on consolidation. 

## ~~INVESTMENTS~~ 

Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluation and disposals throughout the year. Income receivable on investments is recognised in the SOFA on the accruals basis. 

## ~~JOINT VENTURE~~ 

The RAF100 Appeal (Registered Charity 1167398; Company Registration: 9977273) was formed to bring the four major RAF charities and the RAF itself together to mark the centenary of the RAF with a programme of events. To assist with providing initial working capital, the Fund and the other RAF charities each provided a £25K short-term interest-free loan to the RAF100 Appeal which has been subsequently repaid. On completion of the joint venture project any surplus reserves have been distributed as agreed among the joint venture partners. 

This company was dissolved on 4 April 2023, having served its purpose. 

## ~~STOCK~~ 

Stock consists of purchased goods for resale. Stocks are valued at the lower of cost and net realisable value. Items donated for resale or distribution are not included in the financial statements until they are sold or distributed. 

## ~~PENSION COSTS~~ 

Pensions are accounted for in accordance with FRS 102 Section 28, with a valuation undertaken by an independent actuary for the defined benefit scheme, the Royal Air Force Benevolent Fund Staff Pension Fund, which is closed to future accrual. Net pension finance income or costs are included 

immediately in other income or employee costs as appropriate. 

Actuarial gains and losses are recognised immediately on the face of the SOFA. The scheme deficit is included as a liability in the balance sheet. Details of the pension scheme are included in Note 15 to the accounts. 

The amounts charged to the SOFA for defined contribution schemes represent the contributions payable in the period. 

## ~~FINANCE AND OPERATING LEASES~~ 

The Charity does not have any finance leases. Rentals payable under operating leases are charged to the SOFA over the period in which the cost is incurred on a straight-line basis. 

## ~~LOANS~~ 

Loans are awarded to beneficiaries in furtherance of charitable activities. The particular circumstances of each case will determine whether or not the loan is awarded free of interest. When interest is charged the rate is considerably lower than prevailing market rates. Loans are recognised as assets at the value of the award. Accrued interest, where applicable, is recognised as income and added to the balance of the loan. Repayments are made as provided in the loan agreement. To facilitate the relief of hardship and distress, the commencement of repayments can be deferred. 

## ~~FINANCIAL INSTRUMENTS~~ 

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, 


with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See Notes 13 and 14 to the accounts. 

## ~~JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY~~ 

In the application of the Charity’s accounting policies, the Trustees are 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. 

The most significant estimates and assumptions which affect the carrying amount of assets and liabilities in the accounts relate to: 

**Useful economic lives** – The annual depreciation charge for property and equipment is sensitive to change in the estimated useful economic lives and residual value of assets. These are reassessed annually and amended where necessary to reflect current circumstances. 

**Loans** – Specific provision has been made against five loans where there is a high risk of non repayment. 

## **Pension scheme deficit** – The underlying 

assumptions used by the actuary in valuing the scheme are in accordance with FRS 102 and based on assumptions recommended by the actuary. 

48 

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FINANCIAL STATEMENTS 

## **2** Income and endowments 


**----- Start of picture text -----**<br>
£’000 £’000 £’000 £’000 £’000 £’000<br>Donations and legacies<br>Royal Air Force service personnel  1,588  -  1,588   1,576   -   1,576<br>General donations  2,549   511   3,060   2,419   198   2,617<br>Government grants (Job  - 43  43   34   -   34<br>Retention Scheme, DFG)<br>Legacy income  11,293  347   11,640  10,999   487   11,486<br> 15,430   901   16,331   15,028   685   15,713<br>Charitable activities<br>Housing   1,024  -  1,024   964   20   984<br>Respite care  14  -  14   23   -   23<br>Loan interest  96  -  96   43   -   43<br> 1,134   -   1,134   1,030   20   1,050<br>Other trading activities<br>Income from fundraising events  252  -  252   400   19   419<br>Trading income  147  -  147   147   -   147<br> 399   -   399   547   19   566<br>Investment income<br>Dividends from pooled funds  2,379   225   2,604   2,268   216   2,484<br>Interest earned  101  -  101   -   -   -<br> 2,480   225   2,705   2,268   216   2,484<br>Other income<br>Profit on the sale of fixed assets  3,053   -   3,053   5,502   -   5,502<br>Pension interest income  215   -   215   213   -   213<br>RAF100 distribution  16  -  16   -  -  -<br> 3,284   -   3,284   5,715   -   5,715<br>Total income  22,727   1,126   23,853   24,588   940   25,528<br>Unrestricted Restricted Total 2022 Unrestricted Restricted Total 2021<br>**----- End of picture text -----**<br>


The profit on the sale of fixed assets in 2021 included the profit on the sale of Princess Marina House of £4.2M. The 2022 figure includes profit on sale of £0.9M for disposal of our Edinburgh office. 


## **3** Analysis of expenditure 


**----- Start of picture text -----**<br>
Direct External  Support   Total  Direct External  Support   Total<br>costs grants costs  2022  costs grants costs  2021<br>£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000<br>Raising funds<br>Donations and legacies  2,841  -  1,485   4,326   2,378   -   1,405   3,783<br>Regional engagement  317  - -  317   495   -   -   495<br>Other trading activities  32  - -  32   121   -   -   121<br>Investment management   338  - -  338   303   -   -   303<br>fees<br> 3,528   -   1,485   5,013   3,297   -   1,405   4,702<br>Charitable activities<br>Direct support to individuals  8,146  -  907   9,053   8,013   -   1,470   9,483<br>Welfare programmes and   865  2,814  881   4,560   751   2,956   804   4,511<br>grants<br>Respite care  879  -  442   1,321   1,105   -   172   1,277<br>Housing Trust support  1,599  -  938   2,537   1,487   -   899   2,386<br> 11,489   2,814   3,168  17,471  11,356   2,956   3,345  17,657<br>Total expenditure  15,017   2,814   4,653  22,484  14,653   2,956   4,750  22,359<br>**----- End of picture text -----**<br>


See Note 22 for analysis of welfare programmes and grants relating to external grants. 

50 

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FINANCIAL STATEMENTS 

## **4** Analysis of support costs 


**----- Start of picture text -----**<br>
£’000 £’000 £’000 £’000 £’000 £’000<br>Information technology and   598   375   364   182   135   1,654<br>facilities<br>Depreciation and amortisation  144   86   84   42   642   998<br>General management and   160   96   93   47   35   431<br>administration<br>Finance  355   213   207   104   77   956<br>HR   126   76   74   37   27   340<br>Governance   102   61   59   30   22   274<br>Total   1,485   907   881   442   938   4,653<br>£’000 £’000 £’000 £’000 £’000 £’000<br>Information technology and   507   505   297   84   102   1,495<br>facilities<br>Depreciation and amortisation  136   109   82   40   663   1,030<br>General management and   129   125   74   22   26   376<br>administration<br>Finance and payroll  274   319   152   10   47   802<br>HR   139   161   77   5   23   405<br>Governance  220   251   122   11   38   642<br>Total   1,405   1,470   804   172   899   4,750<br>Raising funds Direct  support to   individuals Welfare  programmes  and grants Respite care Housing Trust  support  Total 2022<br>Raising funds Direct  support to   individuals Welfare  programmes  and grants Respite care Housing  Trust  support  Total 2021<br>**----- End of picture text -----**<br>



## **5** Staff costs 


**----- Start of picture text -----**<br>
2022 2021<br>£’000 £’000<br>Wages and salaries  4,864   5,155<br>Social security costs  557   576<br>Pension costs  649   509<br>Termination and redundancy costs  9   172<br> 6,079   6,412<br>**----- End of picture text -----**<br>


Prior year staff costs include termination and redundancy costs for 100 employees who worked at Princess Marina House. 

The number of employees whose pay and benefits (excluding pension contributions) amounted to more than £60,000 in the year was as follows: 


**----- Start of picture text -----**<br>
||||
|---|---|---|
|2022|2021|
|No.|No.|
|£60,001–£70,000|4|6|
|£70,001–£80,000|4|4|
|£80,001–£90,000|1|1|
|£90,001–£100,000|-|-|
|£100,001–£110,000|1|1|
|£110,001–£120,000|1|2|
|£120,001–£130,000|-|2|
|£130,001–£140,000|1|-|
|12|16|

**----- End of picture text -----**<br>


11 employees (2021: 15) whose pay and benefits amounted to more than £60,000 in the year were members of the Group Personal Pension Plan, a money purchase scheme. 

The Fund introduced a salary sacrifice scheme in 2022 which has increased the pension contributions in comparison with 2021. 

The average number of employees, calculated on a headcount basis, analysed by function was: 


**----- Start of picture text -----**<br>
||||
|---|---|---|
|2022|2021|
|No.|No.|
|Charitable activities|64|56|
|Cost of generating funds|24|36|
|Governance, administration and support|21|25|
|109|117|

**----- End of picture text -----**<br>


52 

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FINANCIAL STATEMENTS 

## **6** Key management personnel 

The key management personnel of the RAF Benevolent Fund are the Trustees and the Executive Leadership Team (ELT). The ELT comprises of the Controller, the Director of Resources, the Director of Grants, Services and Programmes, the Director of Fundraising and the Director of Strategy and Impact. Total employee pay and benefits received by ELT for services to the Charity in 2022 were £583K (2021: £601K). 

## **7** Net expenditure 


**----- Start of picture text -----**<br>
2022 2021<br>£’000 £’000<br>Net expenditure for the year is stated after charging:<br>**----- End of picture text -----**<br>


|**Net expenditure for theyear is stated after charging:**|||
|---|---|---|
|Amountspaid for audit services(includingVAT):|||
|Audit fees(currentyear)|74|64|
|Audit fees(prioryear under accruals)<br>Corporation tax services<br>Investment management fees<br>Amortisation of intangible assets|12<br>2<br>338<br>161|-<br>1<br>303<br>168|
|Depreciation<br>Operating leases<br>(Proft)on disposal of fxed assets|839<br>57<br> (3,053)|863<br>48<br> (5,502)|
||||



## **8** Trustees’ remuneration 

The Trustees neither received nor waived any emoluments during 2022 (2021: £nil). 

## **Out-of-pocket expenses were reimbursed to Trustees as follows:** 


**----- Start of picture text -----**<br>
2022 2021 2022 2021<br>No. No. £ £<br>Travel and accommodation 9 5 5,413 1,209<br>9  Intangible assets<br>Group Charity<br>2022 2021 2022 2021<br>£’000 £’000 £’000 £’000<br>Software costs<br>Cost on 1 January  2,533 3,457 2,533 3,457<br>Additions during the year  9  81  9  81<br>Disposals during the year  -  (1,005) - (1,005)<br>Cost at 31 December  2,542 2,533 2,542 2,533<br>Amortisation at 1 January   (2,346)  (3,183)  (2,346)  (3,183)<br>Amortisation for the year  (161)  (168)  (161)  (168)<br>Depreciation on disposals during the year  -   1,005  -  1,005<br>Accumulated amortisation at 31 December (2,507) (2,346) (2,507) (2,346)<br>**----- End of picture text -----**<br>



## **10** Tangible fixed assets 


**----- Start of picture text -----**<br>
Group 2022 Charity 2022<br>Property Equipment Total Property Equipment Total<br>£’000 £’000 £’000 £’000 £’000 £’000<br>Cost on 1 January  38,903 362 39,265 7,267 362 7,629<br>Additions during the year  931   -   931   47   -   47<br>Disposals during the year (2,106)  -  (2,106) (160)  -  (160)<br>Cost at 31 December  37,728 362 38,090 7,154 362 7,516<br>Depreciation at 1 January   (10,240)  (362)  (10,602)  (2,389)  (362)  (2,751)<br>Depreciation for the year  (839)  -   (839)  (228)  -   (228)<br>Depreciation on disposals during the year  424   -   424   93   -   93<br>Accumulated depreciation    (10,655)  (362)  (11,017)  (2,524)  (362)  (2,886)<br>at 31 December<br>Net book value 31 December 2022 27,073  -  27,073 4,630  -  4,630<br>**----- End of picture text -----**<br>


||**Group 2021**<br>**Charity 2021**<br>**Property Equipment**<br>**Total**<br>**Property Equipment**<br>**Total**<br>£’000<br>£’000<br>£’000<br>£’000<br>£’000<br>£’000|
|---|---|
||Cost on 1 January<br>43,565<br>2,340<br>45,905<br>12,703<br>2,340<br>15,043<br>Additions during the year<br>2,062<br>-<br>2,062<br>5<br>-<br>5<br>Disposals duringtheyear<br> (6,724)<br> (1,978)<br> (8,702)<br> (5,441)<br> (1,978)<br> (7,419)|
||**Cost at 31 December**<br>**38,903**<br>**362**<br>**39,265**<br>**7,267**<br>**362**<br>**7,629**|
||Depreciation at 1 January<br>(11,528)<br>(2,318)<br>(13,846)<br>(3,920)<br>(2,318)<br>(6,238)<br>Depreciation for the year<br>(863)<br>-<br>(863)<br>(230)<br>-<br>(230)<br>Depreciation on disposals duringtheyear<br>2,151<br>1,956<br>4,107<br>1,761<br>1,956<br>3,717|
||**Accumulated depreciation at 31**<br>**December**<br>**(10,240)**<br>**(362)  (10,602)**<br>**(2,389)**<br>**(362)**<br>**(2,751)**|
|||
||**Net book value 31 December 2021**<br>**28,663**<br>**0**<br>**28,663**<br>**4,878**<br>**0**<br>**4,878**|



**Net book value 31 December 35** 

**35** 

**187** 

**187** 

54 

55 



FINANCIAL STATEMENTS 

## **10** Tangible fixed assets (cont) 


**----- Start of picture text -----**<br>
2022 2021<br>Property Equipment Total Property Equipment Total<br>£’000 £’000 £’000 £’000 £’000 £’000<br>Net book value at 31 December is analysed as follows:<br>Gulf Trust Fund (restricted fund)  124  -  124  129  -  129<br>RAFBF respite homes  441  -  441   403   -   403<br>Headquarters – London  4,065  -  4,065  4,346  -  4,346<br>Charity 4,630  -  4,630 4,878 0 4,878<br>RAFBF Housing Trust Ltd 22,443 - 22,443  23,785   -   23,785<br>Group 27,073  -  27,073 28,663 - 28,663<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
||||
|---|---|---|
|The net book value of properties comprises:|
|Freehold|26,680|28,269|
|Long leasehold|393|394|
|27,073|28,663|

**----- End of picture text -----**<br>


Properties held by the RAF Benevolent Fund Housing Trust Ltd support charitable activities. Properties are held so that beneficiaries including wounded, injured or sick personnel who have been medically discharged from the RAF can live in suitable, usually heavily adapted accommodation. Properties are stated at historical cost and depreciated as per the policy stated in Note 1. 


## **11** Fixed asset investments 


**----- Start of picture text -----**<br>
Group Charity<br>2022 2021 2022 2021<br>£’000 £’000 £’000 £’000<br>Market value as at 1 January  83,114 78,255 75,429 71,528<br>Additions  514  8,547  514  8,547<br>Withdrawals  (3,337)  (10,310)  (3,295)  (10,256)<br>Net investment gains  (8,652)  6,622   (7,801)  5,610<br>Market value at 31 December  71,639 83,114 64,847 75,429<br>Total fixed asset investments 71,639 83,114 64,847 75,429<br>Investments are represented by:<br>Listed investments 63,201 79,797 56,409 72,112<br>Cash holdings in investments  7,886  2,771 7,886 2,771<br>RAF Disabled Holiday Trust Bonds  552  546  552  546<br>Total 71,639 83,114 64,847 75,429<br>**----- End of picture text -----**<br>


The Charity is the only Trustee of the RAF Disabled Holiday Trust whose net assets to the value of £552K are included within investments. Also included is the Charity’s share capital in the RAFBF Trading Co Ltd of £1, the results of this subsidiary entity are shown in Note 26. 

56 

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FINANCIAL STATEMENTS 

## **12** Loans to beneficiaries 


**----- Start of picture text -----**<br>
Group Charity<br>2022 2021 2022 2021<br>£’000 £’000 £’000 £’000<br>Balance at 1 January  7,948 8,593 7,948 8,593<br>New loans  333  131  333  131<br>Interest charged  96  43  96  43<br>8,377 8,767 8,377 8,767<br>Repayments  (819)  (815)  (819)  (815)<br>Loans converted to grants  (15)  (4)  (15)  (4)<br>Bad debts written off  (5)  -   (5)  -<br>Provision for loan conversion (52)  -  (52)  -<br>Balance at 31 December  7,486 7,948 7,486 7,948<br>**----- End of picture text -----**<br>


The Fund offers loans in cases where grant assistance is not appropriate or not possible. They enable asset-rich but cash-poor beneficiaries to remain in their homes. Loan interest is charged depending on the nature of the case at a rate substantially below commercial rates. All but £70K (2021: £91K) of the Fund’s loans are secured by legal charges on the properties of the beneficiaries. The majority of loans have no fixed repayment date and are normally repayable from the beneficiary’s estate. A specific provision for loan conversion has been allowed for where there is a high risk of non repayment. 

## **13** Debtors 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|Group|Charity|
|2022|2021|2022|2021|
|£’000|£’000|£’000|£’000|
|Legacies|9,214|9,901|9,167|9,901|
|Inter company balance|-|-|9,559|11,253|
|Other debtors|626|576|537|462|
|Prepayments|187|146|146|147|
|10,027|10,623|19,409|21,763|

**----- End of picture text -----**<br>


## **14** Creditors: amounts falling due within one year 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|Group|Charity|
|2022|2021|2022|2021|
|£’000|£’000|£’000|£’000|
|Trade creditors|485|628|479|612|
|Taxation and social security costs|265|191|258|184|
|Accruals for grants payable|1,324|1,471|1,068|1,159|
|Other creditors|508|269|359|146|
|2,582|2,559|2,164|2,101|

**----- End of picture text -----**<br>



## **15** Pension commitments 

The Royal Air Force Benevolent Fund pension arrangements are as follows: 

A Group Personal Pension Scheme made up of a collection of individual pension plans arranged by the Fund is provided by an insurance provider. This service has been provided by Royal London since November 2016. The liability of the employer is limited to the contributions it makes which amounted to £649K (2021: £509K) of which £56K remained payable at the year end (2021: £nil). 

The RAF Benevolent Fund Staff Pension Fund is a defined benefit scheme. The scheme was closed to new members on 31 August 2005 and was closed to future accrual on 1 April 2014. The most recent actuarial valuation was carried out as at 31 December 2021. Under the schedule of contributions agreed as part of the actuarial valuation as at 31 December 2021, the employer paid £1.2M during 2022 (2021: £1M). The new deficit contribution plan agreed that the employer would make contributions at the rate of £100K per month until 31 October 2028. 


**----- Start of picture text -----**<br>
2022 2021<br>£’000 £’000<br>Reconciliation of funded status to balance sheet<br>Defined benefit obligation  (27,338)  (39,680)<br>Fair value of plan assets  24,282  26,215<br>Net defined benefit liability (3,056) (13,465)<br>The amounts recognised in the SOFA are as follows:<br>Net interest expense on net defined benefit liability  232  200<br>Total pension expense recognised in the SOFA 232 200<br>Reconciliation of defined benefit obligation over the year<br>Defined benefit obligation as at 1 January  (39,680)  (41,561)<br>Interest expenses on defined benefit obligation  (703)  (511)<br>Remeasurement – effect of experience adjustments gain  (2,113)  317<br>Remeasurement – effect of changes in assumptions loss  13,875   762<br>Benefits paid  1,283   1,313<br>Defined benefit obligation as at 31 December  (27,338) (39,680)<br>Changes in the fair value of plan assets over the year:<br>Fair value of plan assets as at 1 January   26,215   25,030<br>Interest income on plan assets  471   311<br>Remeasurement – return on plan assets excluding interest income gain  (2,321)  1,187<br>Contributions by employer  1,200   1,000<br>Benefits paid  (1,283)  (1,313)<br>Fair value of plan assets as at 31 December 24,282 26,215<br>Return on plan assets (1,850)  1,498<br>**----- End of picture text -----**<br>


58 

59 



FINANCIAL STATEMENTS 

## **15** Pension commitments (cont) 


**----- Start of picture text -----**<br>
Remeasurements recognised in SOFA<br>Remeasurement – effect of experience adjustments gain  (2,113)  317<br>Remeasurement – effect of changes in assumptions gain/(loss)  13,875   762<br>Remeasurement – return on plan assets excluding interest income gain (2,321)  1,187<br>Total remeasurement gain/(loss) recognised in SOFA  9,441   2,266<br>2022 2021<br>£’000 % £’000 %<br>Assets:<br>Target Return Fund  23,472  96.7% 25,744 98.2%<br>Cash/other  810  3.3% 471 1.8%<br>24,282 100% 26,215 100%<br>2022 2021<br>Principal actuarial assumptions at the balance sheet date :<br>Discount rate 4.6% 1.8%<br>RPI inflation rate 3.2% 3.5%<br>CPI inflation rate 2.6% 2.9%<br>Increases to pensions in deferment (CPI max 5%) 2.6% 2.9%<br>Increases to pensions in payment (CPI max 5%) 2.6% 2.8%<br>Commutation (% of pension) 25% 25%<br>Mortality – base table  S3PA   S3PA<br>Mortality – allowance for future improvements  CMI   CMI<br>2021  2020<br>1.0% LTR 1.0% LTR<br>Life expectancies from age 63:<br>    Male currently aged 63 86.6 86.6<br>    Female currently aged 63 89.1 89.0<br>    Male currently aged 43 87.7 87.6<br>    Female currently aged 43 90.2 90.2<br>**----- End of picture text -----**<br>


## **Amounts for current and previous four periods are as follows:** 


**----- Start of picture text -----**<br>
|||||||
|---|---|---|---|---|---|
|2022|2021|2020|2019|2018|
|£’000|£’000|£’000|£’000|£’000|
|Defined benefit obligation|(27,338)|(39,680)|(41,561)|(37,767)|(34,526)|
|Fair value of plan assets|24,282|26,215|25,030|24,039|22,231|
|Deficit|(3,056)|(13,465)|(16,531)|(13,728)|(12,295)|

**----- End of picture text -----**<br>



## **16** Related party disclosure 

Donations to the value of £1,025 (2021: £505) were received from individual Trustees in the year. Details of all inter-company transactions are shown in Note 27 on subsidiary entitities. There were no other related party transactions. 

## **17** Ultimate controlling party 

The Trustees do not consider there to be an ultimate controlling party. 

## **18** Capital commitments 

There are no major planned capital commitments for 2023. 

## **19** Analysis of group net assets between funds 


**----- Start of picture text -----**<br>
Unrestricted  Restricted  Endowment  Total<br>funds funds funds funds<br>2022 2021 2022 2021 2022 2021 2022 2021<br>£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000<br>Fund balances at 31 December are represented by:<br>Tangible, intangible fixed  26,984 28,721  124  129  -   -   27,108  28,850<br>assets<br>Investments 63,067 73,248  2,600 2,922 5,972  6,944  71,639  83,114<br>Loans to beneficiaries 7,486 7,948  -  -  -   -   7,486  7,948<br>Current assets 20,601 14,807  2,420 2,808  505  460  23,526  18,075<br>Current liabilities  (2,063)  (2,085)  -   -  (519)  (474)  (2,582)  (2,559)<br>Pension liability  (3,056) (13,465)  -   -   -   -   (3,056) (13,465)<br>Total net assets 113,019 109,174 5,144 5,859 5,958 6,930 124,121 121,963<br>**----- End of picture text -----**<br>


## **20** Operating leases 

At 31 December 2022 the group had total annual commitments under non-cancellable operating leases, all for office equipment and vehicles as follows: 


**----- Start of picture text -----**<br>
2022 2021<br>£ £<br>Payments due: office equipment and vehicles<br>Within one year  36,388   61,629<br>Within two to five years  47,740  47,468<br>Total  84,128 109,097<br>**----- End of picture text -----**<br>


60 

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FINANCIAL STATEMENTS 

## **21** Contingent liability 

The last triennial valuation of the Staff Pension Fund (SPF) identified a deficit of £12.275M as at 31 December 2021, on an agreed prudent funding basis. The Charity is required to enter into a Recovery Plan to extinguish the deficit. The plan commits the Charity to making annual payments of £1.2M until the earlier of 31 October 2028 or such date as when the deficit is extinguished. 

The Trustees of the RAF Benevolent Fund have granted a legal mortgage over the Charity’s head office at 67 Portland Place and 45 Devonshire Close, London, in favour of the Trustees of the SPF. 

This charge is to secure future payments from the Charity to the SPF to extinguish the deficit. The obligation secured by the mortgage is in accordance with applicable statutory requirements. The Trustees have also complied with the requirements of Section 124 of the Charities Act 2011 to obtain and consider proper advice. 

A formal valuation of the property which is held on a long lease (virtual freehold) interest, was carried out in August 2019 and the market value was placed at £11M. This property is shown at a net book value of £4.0M in the balance sheet. 

## **22** Welfare programmes and external grants 


**----- Start of picture text -----**<br>
2022 2021<br>£ £<br>GRANT FUNDING TO THE SERVING ROYAL AIR FORCE<br>**----- End of picture text -----**<br>


|**GRANT FUNDING TO THE SERVING ROYAL AIR FORCE**|||
|---|---|---|
||||
|**Stationgrants**|||
|603(Cityof Edinburgh)Squadron RAuxAF|1,100|500|
|RAF Akrotiri|600|35,500|
|JHC FS Aldergrove|9,800|-|
|RAF Benson|-|500|
|RAF Boulmer|600|-|
|MOD Boscombe Down|1,000|500|
|RAF Brize Norton|54,620|26,694|
|CheltenhamJSSU|500|-|
|RAF Coningsby|13,520|500|
|RAF Cosford|6,000|500|
|RAF College Cranwell|1,400|6,500|
|Defence Animal TrainingRegiment|-|4,739|
|RAF Digby|3,700|250|
|RAF Episkopi|-|3,416|
|BFSAI Falklands|500|-|
|RAF Fylingdales|1,000|500|
|RAF Gibraltar|3,312|-|
|Grantown-on-SpeyRRC|300|-|
|RAF Halton|3,200|4,974|
|RAF Henlow|3,500|500|
|RAF High Wycombe|1,700|500|
|RAF Honington|12,802|79,541|
|RAF Leeming|7,000|-|
|RAF Lossiemouth|1,700|500|
|RAF Marham|900|500|
|RAF Northolt|9,400|14,008|
||||





**----- Start of picture text -----**<br>
2022 2021<br>£ £<br>RAF Odiham   1,700   500<br>RAF Scampton   4,536   500<br>RAF Shawbury  1,000   -<br>MOD St Athan  1,000  -<br>RAF St Mawgan  10,500   -<br>RAF Valley  19,500   9,994<br>RAF Waddington   16,495   500<br>DMS Whittington  300  -<br>RAF Wittering  51,100   2,000<br>MOD Worthy Down  3,970   3,000<br>Worthy Down DCLPA  300  -<br>RAF(U) Swanwick  500   -<br>41 Op REIMAGE & 103 Op ILKANE  2,960  -<br>One YMCA for three RAF stations  3,000  -<br> 255,015   197,116<br>TOTAL GRANT FUNDING TO THE SERVING ROYAL AIR FORCE  255,015   197,116<br>CONTRACTED SERVICES TO SUPPORT THE SERVING ROYAL AIR FORCE<br>Airplay programme<br>RAF stations – youth support programme  1,066,201   1,250,497<br>RAF stations – Ben Play parenting and play parks -  58,621<br> 1,066,201   1,309,118<br>General support<br>RAF Families Federation  15,000   15,000<br>Relate – Building Stronger Families -  3,000<br> 15,000   18,000<br>Grant refund (RAF Shawbury) (348,000) -<br>TOTAL CONTRACTED SERVICES TO THE SERVING ROYAL AIR   733,201   1,327,118<br>FORCE<br>TOTAL GRANTS AND CONTRACTED SERVICES TO SUPPORT  988,216   1,524,234<br>THE SERVING ROYAL AIR FORCE<br>CONTRACTED SERVICES TO SUPPORT THE SERVING AND VETERANS’ COMMUNITIES<br>Wellbeing partnerships<br>Headspace (mental wellbeing)  72,675   67,511<br>Silver Line/Age UK  137,705   144,419<br>Work Stress Management (listening and counselling)  539,999   335,889<br>Manage Health (listening and counselling)  228,435   272,532<br>Relate (young people listening and counselling)  65,658   43,130<br>PAM (listening and counselling)  93,411   -<br>GamCare (gambling support) -  2,400<br>Workshop and coaching  12,000   22,300<br> 1,149,883   888,181<br>**----- End of picture text -----**<br>


62 

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FINANCIAL STATEMENTS 


**----- Start of picture text -----**<br>
2022 2021<br>£ £<br>Relationship support<br>Relate – relationship counselling/mediation  199,792   144,665<br>TOTAL CONTRACTED SERVICES TO SUPPORT THE SERVING   1,349,675   1,032,846<br>AND VETERANS’ COMMUNITIES<br>**----- End of picture text -----**<br>


||||
|---|---|---|
|**GRANTS FUNDING TO THE VETERANS’ COMMUNITIES**|||
|AFCFTgrant(OpUnite)|42,708|-|
|Age Concern Spain – ACASA|5,000|10,000|
|Alabare Christian Care Centres|-|13,000|
|Bridge For Heroes|4,000|-|
|British EmbassySlovakia|-|3,120|
|British Nuclear Tests Veterans Association|-|3,000|
|Care After Combat|5,000|-|
|Combat Stress|87,813|76,000|
|Czech Veterans|-|-|
|Defence Medical Welfare Service|13,000|13,000|
|Fares4Free|5,000|-|
|Farm-Able Foundation|-|4,000|
|FightingWith Pride|17,000|17,000|
|Goodwill Solutions – The LearningAcademy|-|-|
|ILM Highland|-|-|
|ImprovingLives Plymouth|5,000|-|
|International Bomber Command Memorial|-|150|
|Medical EmergencyResponse Team(MERT)Club|-|6,000|
|MilitaryWives Choir Foundation|7,500|-|
|National Gulf Veterans and Families Association|5,000|7,500|
|Not Forgotten Association|-|7,500|
|On Course Foundation|2,500|3,000|
|PAFA|-|750|
|Polish Veterans|-|4,680|
|PoppyScotland – ASAP|15,000|20,000|
|Project Propeller|(5,000)|-|
|RAF Widows’ Association|34,015|-|
|Royal Commonwealth Ex-Services League (includes support|38,214|20,000|
|towards caseworkingcosts)|||
|Save The Skymaster|-|3,500|
|Scotty’s Little Soldiers|8,000|-|
|Slovak Western Front ArmyVeterans Widows|1,560|-|
|Spinal Injuries Association|-|-|
|SSAFA, the Armed Forces Charity (includes support towards|20,550|30,720|
|caseworkingcosts)|||
|Stoll|-|12,000|
|Team Endeavour Racing|-|-|
|The Gwennili Trust|-|-|
|The Ripple Pond|-|-|
|Turn To Starboard|5,000|-|
|Veterans Outreach Support|9,000|-|
||||





**----- Start of picture text -----**<br>
2022 2021<br>£ £<br>Waterloo Uncovered   1,800   1,800<br>We Are With You  10,000   -<br>Widows Association of Great Britain -  -<br>Workplace Chaplaincy Scotland -  2,500<br> 337,660   259,220<br>Employment support<br>The Poppy Factory  15,000  -<br>HighGround - -<br>Regular Forces Employment Association  50,000   62,436<br>Walking With The Wounded  10,000   7,000<br>The Warrior Programme  5,000   8,000<br> 80,000   77,436<br>Housing support<br>Broughton House  18,000   18,000<br>Lord Kitchener’s Memorial Holiday Centre  7,000  -<br>Royal British Legion Industries -  2,000<br>Veterans Aid  15,000   15,000<br>-<br>Queen Elizabeth Hospital Birmingham Hospital Charity    10,000<br>– Fisher House<br> 40,000   45,000<br>Residential and respite care<br>Care for Veterans  18,000   15,000<br>The Curphey Home -  2,000<br> 18,000   17,000<br>TOTAL GRANT FUNDING TO THE VETERANS’ COMMUNITY  475,660   398,656<br>TOTAL GRANT AND CONTRACTED SERVICES PAYMENTS TO  2,813,551  2,955,736<br>THIRD PARTIES<br>Total contracted services 2,082,876   2,359,964<br>Total discretionary grants  730,675   595,772<br>TOTAL COST OF SUPPORT THROUGH GRANT AND  2,813,551  2,955,736<br>CONTRACTED SERVICES<br>**----- End of picture text -----**<br>


64 

65 



FINANCIAL STATEMENTS 

## **23** Statement of funds 


**----- Start of picture text -----**<br>
Charity<br>At 1  Net  Group at 31  at 31<br>January  gains/ December  December<br>2022 Income Expenditure (losses) Transfers 2022 2022<br>£’000 £’000 £’000 £’000 £’000 £’000 £’000<br>General reserve 93,577 21,383 (19,178) (6,465) (1,153) 88,164 73,342<br>Designated funds    29,062   1,344   (1,602)  (893)  -   27,911   20,735<br>– see Note 24<br>Pension reserve (13,465)  -  (232)  9,441   1,200  (3,056) (3,056)<br>Total unrestricted funds 109,174 22,727 (21,012)  2,083   47  113,019  91,021<br>Restricted income funds   5,859 1,126  (1,472)  (322)  (47)  5,144   5,144<br>– see Note 25<br>Endowment funds   6,930  -   -   (972)  -   5,958   5,958<br>– see Note 26<br>Total funds 121,963 23,853  (22,484)  789   -  124,121  102,123<br>Charity<br>At 1  Net  Group at 31  at 31<br>January  gains/ December  December<br>2021 Income Expenditure (losses) Transfers 2021 2021<br>£’000 £’000 £’000 £’000 £’000 £’000 £’000<br>General reserve 96,986 24,193 (19,329) 4,832 (13,105) 93,577 79,948<br>Designated funds   17,404  395   (1,804)  958   12,109   29,062   21,000<br>– see Note 24<br>Pension reserve (16,531)  -  (200)  2,266   1,000  (13,465) (13,465)<br>Total unrestricted funds 97,859 24,588 (21,333)  8,056   4  109,174  87,483<br>Restricted income funds   5,728 940  (1,026)  221   (4) 5,859  5,859<br>– see Note 25<br>Endowment funds   6,319  -   -   611   -  6,930  6,930<br>– see Note 26<br>Total funds  109,906  25,528   (22,359)  8,888   -   121,963   100,272<br>**----- End of picture text -----**<br>



## **Unrestricted funds** 

The sum of £27.9M (2021: £29.1M) is included in unrestricted funds and relates to the following designated reserves: £7.2M (2021: £8.1M) Reserves held by the RAF Dependants Fund to relieve immediate 

£7.2M (2021: £8.1M) Reserves held by the RAF Dependants Fund to relieve immediate financial distress in the event of the death of a subscriber by giving a tax-free grant, payable at the discretion of the Fund £7.0M (2021: £8.2M) Pension deficit recovery contributions based on a revised recovery plan to pay £100K per month up to October 2028 £12.8M (2021: £12.8M) Enhanced welfare provison to (1) advance our stategic ambitions (2) enhance our welfare delivery and (3) build on our success £935K (2021: nil) Property fund to be used to maintain the Fund’s presence in Scotland as required The transfer of £1.2M (2021: £1M) from general reserves to the pension reserve represents the Fund’s contribution paid into the defined benefit pension scheme in the year. In addition £47K was transferred into general reserves representing capital works for the Bridlington holiday cottage, which was completed from restricted reserves. 

||**Restricted income funds – Over**|**£100K**|
|---|---|---|
||Bomber Command Memorial<br>Gulf Trust|Maintenance of the Bomber Command Memorial in Green Park,<br>Piccadilly<br>The funds are held in a ring-fenced fund for the beneft of RAF Gulf War|
|||veterans|
||Lowe Trust|Supports Battle of Britain veterans and their descendants|
||RAF Disabled Holiday Trust|Providing holidays to severely disabled serving and ex-RAF personnel|
||Afghan Brain Injury<br>Armed Forces Covenant Fund<br>Trust(Operation Unite)|and their immediate dependants<br>Support to veterans of Afghanistan who have sustained a brain injury<br>To support Afghanistan and Iraq veterans’ mental health|
||||
||**Endowment funds – Over £100K**<br>E HJubb Fund|For the beneft of aircrew, their widows and dependants|
||Newton Driver Memorial Fund|For the maintenance and upkeep of property used as a home for|
|||members of the RAF and their dependants who are convalescent or|
|||disabled. If the income cannot be used for this purpose it can be applied|
||Viscount Nufeld Endowment<br>Hector PillingMemorial Fund<br>RAF Prize Trust|forgeneralpurposes of the Fund.<br>Income used forgeneralpurposes<br>Toprovide fnancial assistance for foundationers at the Duke of Kent School<br>To be used for the assistance or beneft, including education, of former<br>or futurepilots and navigators and their dependants|
||RAFBF Educational Endowment<br>Fund<br>RAFBF Educational Expendable|To promote the education of the children of members of the Royal Air<br>Force<br>To promote the education of the children of members of the Royal Air|
||Fund|Force|
||Peter Henry Slater-Eiggert|For the beneft of ex-members and dependants of 83 Squadron|
||Memorial Fund||
||The Revd. James Edmund|For the use of general purposes of the Royal Air Force Benevolent Fund|
||Strickland Memorial Fund||
||Douglas Turner Benefaction|To be used for the assistance or beneft, including education, of former|
|||or futurepilots and navigators and their dependants|



66 

67 



FINANCIAL STATEMENTS 

|**24**Designated funds|FINANCIAL ST|
|---|---|
|**At 1**<br>**January**<br>**2022**<br>**Income Expenditure**|**Net gains**<br>**Transfers**<br>**At 31**<br>**December**<br>**2022**|
|£’000<br>£’000<br>£’000|£’000<br>£’000<br>£’000|
|||
|Pension defcit recoverycontributions<br>8,200<br>-<br> (1,200)|-<br>-<br>7,000|
|Enhanced welfareprovision<br>12,800<br>-<br>-<br>|-<br>-<br>12,800|
|Propertyfund for the Scotland ofce<br>-<br>935<br>-|-<br>-<br>935|
|||
|**Total designated funds – Charity**<br>**21,000**<br>**935**<br> **(1,200)**|**-**<br>**-**<br>**20,735**|
|||
|RAF Dependants Fund<br>8,062<br>409<br> (1,295)|-<br>-<br>7,176|
|||
|**Total designated funds – Group**<br>**29,062**<br>**1,344**<br>**(2,495)**|**-**<br>**-**<br>**27,911**|
|||
|||
|||
|**At 1 January**<br>**2021**<br>**Income Expenditure**|**Net gains**<br>**Transfers At 31 December**<br>**2021**|
|£’000<br>£’000<br>£’000|£’000<br>£’000<br>£’000|
|||
|Fundraisingdevelopment and systems upgrade<br>1,209<br>-<br> (391)|-<br> (818)<br>-|
|Investment in Airplay programmes<br>2,692<br>-<br> (1,059)|-<br> (1,633)<br>-|
|New and enhanced welfare services<br>6,486<br>-<br> (46)<br>|-<br> (6,440)<br>-|
|Pension defcit recoverycontributions<br>-<br>-<br>-|-<br>8,200<br>8,200|
|Enhanced welfareprovision<br>-<br>-<br>-|-<br>12,800<br>12,800|
|||
|**Total designated funds – Charity**<br>**10,387**<br>**-**<br> **(1,496)**|**-**<br>**12,109**<br>**21,000**|
|||
|RAF Dependants Fund<br>7,017<br>395<br> (308)|958<br>-<br>8,062|
|||
|**Total designated funds – Group**<br>**17,404**<br>**395**<br>**(1,804)**|**958**<br>**12,109**<br>**29,062**|



68 

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FINANCIAL STATEMENTS 

|**25**Restricted funds|FINANCIAL S|
|---|---|
|**As at**<br>**1 January**<br>**2022**<br>**Income**<br>**Expenditure**<br>**/transfer**|**As at 31**<br>**December**<br>**2022**<br>**As at**<br>**1 January**<br>**2021**<br>**Income Expenditure**<br>**As at 31**<br>**December**<br>**2021**|
|£<br>£<br>£|£<br>£<br>£<br>£<br>£|
|**Education**||
|GroupCaptain W E Purdain Memorial Fund<br>-<br>105<br> (78)|27<br>100<br>101<br> (201)<br>-|
|RAF Prize Trust<br>-<br>9,221<br> (6,860)|2,361<br>-<br>8,884<br> (8,884)<br>-|
|RAFBF Educational Endowment Fund<br>19,999<br>20,759<br> (19,999)|20,759<br>-<br>19,999<br>-<br>19,999|
|RAFBF Educational Expendable Fund<br>-<br>5,717<br> (270)|5,447<br>2,011<br>5,518<br> (7,529)<br>-|
|RAFBF Education<br>-<br>24,129<br> (8,435)|15,694<br>-<br>23,247<br> (23,247)<br>-|
|Douglas Turner Benefaction<br>-<br>4,941<br> (3,676)|1,265<br>4,700<br>4,760<br> (9,460)<br>-|
|**19,999**<br>**64,872**<br> **(39,318)**|**45,553**<br>**6,811**<br>**62,509**<br> **(49,321)**<br>**19,999**|
|**Princess Marina House and respite care**||
|Princess Marina House Amenities Fund<br>-<br>-<br>-|-<br>-<br>-<br>-<br>-|
|Princess Marina House Shencot/Seacot House<br>-<br>1,075<br> (1,075)|-<br>-<br>1,030<br> (1,030)<br>-|
|The April Fools’ Club – servingrespite care<br>-<br>-<br>-|-<br>-<br>-<br>-<br>-|
|**-**<br>**1,075**<br> **(1,075)**|**-**<br>**-**<br>**1,030**<br> **(1,030)**<br>**-**|
|**Housing**||
|HousingTrust General Restricted Fund<br>78,975<br>256,010<br> (253,110)|81,875<br>-<br>108,156<br> (29,181)<br>78,975|
|Housingadaptations(Lincoln)<br>-<br>-<br>-|-<br>-<br>5,000<br> (5,000)<br>-|
|**78,975**<br>**256,010**<br> **(253,110)**|**81,875**<br>**-**<br>**113,156**<br> **(34,181)**<br>**78,975**|
|**Other**||
|Bomber Command Memorial<br>2,955,897<br>223,708<br> (394,321)|2,785,284<br>2,652,758<br>361,867<br> (58,728)<br>2,955,897|
|Trustee General<br>-<br>1,000<br> (1,000)|-<br>-<br>-<br>-<br>-|
|Gulf Trust<br>450,255<br>-<br>-|450,255<br>430,001<br>20,254<br>-<br>450,255|
|**3,406,152**<br>**224,708**<br> **(395,321)**|**3,235,539**<br>**3,082,759**<br>**382,121**<br> **(58,728)**<br>**3,406,152**|
|**Welfareprogrammes**||
|Aged Veteran Fund<br>-<br>-<br>-|-<br>230<br>125<br> (355)<br>-|
|Armed Forces Covenant Fund Trust(Operation Unite)<br>-<br>258,916<br> (55,416)|203,500<br>-<br>-<br>-<br>-|
|Airplay<br>-<br>85,605<br> (70,399)|15,206<br>-<br>31,000<br> (31,000)<br>-|
|Thrive<br>9,120<br>480<br> (9,600)|-<br>-<br>9,120<br>-<br>9,120|
|Mrs H MJerham Memorial Fund<br>4,025<br>1,139<br>-|5,164<br>2,928<br>1,097<br>-<br>4,025|
|RAF stations<br>-<br>-<br>-|-<br>-<br>100<br> (100)<br>-|
|Mental health services<br>-<br>-<br>-|-<br>104<br>832<br> (936)<br>-|
|The Red Arrows Trust ServingFamilyBreaks<br>-<br>10,000<br>-|10,000<br>-<br>-<br>-<br>-|
|Youth mental health(Lossiemouth)<br>15,907<br>14,907<br> (30,814)|-<br>-<br>15,907<br>-<br>15,907|
|MBDA Fund<br>-<br>-<br>-|-<br>-<br>-<br>-<br>-|
|Restricted to RAF Valley<br>32,684<br>-<br> (19,000)|13,684<br>-<br>42,678<br> (9,994)<br>32,684|
|**61,736**<br>**371,047**<br> **(185,229)**|**247,554**<br>**3,262**<br>**100,859**<br> **(42,385)**<br>**61,736**|
|**Individual welfare**||
|Advice and Advocacy<br>-<br>8,081<br> (8,081)|-<br>-<br>8,966<br> (8,966)<br>-|
|Afghan Brain Injury<br>227,223<br>-<br>-|227,223<br>226,728<br>495<br>-<br>227,223|
|Afghan: LIBOR<br>-<br>-<br>-<br>|-<br>366<br>-<br> (366)<br>-|
|Various legacies – benefciaries in Lossiemouth<br>10,000<br>-<br> (775)<br>|9,225<br>-<br>10,000<br>-<br>10,000|
|Various legacies – benefciaries in Scotland<br>46,846<br>70,098<br> (116,944)|-<br>-<br>293,131<br> (246,285)<br>46,846|
|RAF Disabled HolidayTrust<br>569,635<br>6,134<br>-|575,769<br>554,312<br>15,323<br>-<br>569,635|
|Fulmer Fund<br>66,102<br>-<br> (15,596)|50,506<br>211,278<br>-<br> (145,176)<br>66,102|
|Garden maintenance<br>-<br>-<br>-|-<br>-<br>-<br>-<br>-|
|General welfare(individual)<br>-<br>-<br>-|-<br>-<br>6,600<br> (6,600)<br>-|



70 

71 



FINANCIAL STATEMENTS 


**----- Start of picture text -----**<br>
25  Restricted funds (cont)<br>As at  As at 31  As at  As at 31<br>1 January  Expenditure  December  1 January  December<br>2022 Income /transfer 2022 2021 Income Expenditure 2021<br>£ £ £ £ £ £ £ £<br>General welfare (mobility aid)  -  - -  -   -   1,500  (1,500)  -<br>General welfare (respite and care)  11,505  - (11,505)  -   -   15,000  (3,495)  11,505<br>General welfare – Devon, Cornwall and Somerset  -  - -  -   300   3,600  (3,900)  -<br>Lowe Trust  572,209  - -  572,209   572,209   -   -   572,209<br>Restricted to UK Regions  7,928   600  (8,528)  -   65,030   51,050  (108,152)  7,928<br>Restricted to UK Regions – veterans 65+ -  37,000   (37,000) - - - -<br>Financial assistance restricted to UK Regions -  9,500  (9,500)  -   -  - -  -<br>All general Scotland  -  34,000  (34,000)  -   -  - -  -<br>All general Yorkshire  -  500  (500)  -   -  - -  -<br>Podcast Battle of Britain  -  1,500   -   1,500   -  - -  -<br>Veteran independent living Scotland -  2,000  (2,000)  -   -  - -  -<br>Veterans and family in Jamaica -  1,000  (1,000)  -   -  - -  -<br>Social isolation (veterans) -  15,000  (15,000)  -   -  - -  -<br>Care home top-up fees Kent -  1,000  (1,000)  -   -  - -  -<br>Older veterans Norfolk -  3,000  (3,000)  -   -  - -  -<br>Older veterans and dependants Bristol -  5,000  (2,780)  2,220   -  - -  -<br>Elderly veterans and dependants North East  -  2,500  (2,500)  -   -  - -  -<br>Financial assistance Sunderland and Co Durham  -  3,000   (3,000)  -   -  - -  -<br>(veterans)<br>Mobility equipment North East -  1,500  (1,500)  -   -  - -  -<br>Financial assistance Berkshire -  1,000  (1,000)  -   -  - -  -<br>RAF Family – financial assistance within Oxfordshire -  500  (500)  -   -  - -  -<br>All general Tayside  -  2,000  (2,000)  -   -  - -  -<br>Older veterans Birmingham -  1,000  (1,000)  -   -  - -  -<br>Care home top-up fees Yorkshire (veterans) -  2,000  (2,000)  -   -  - -  -<br>Veterans Berkshire -  1,000  (1,000)  -   -  - -  -<br>Independent living Fife (veterans) -  5,000  (5,000)  -   -  - -  -<br>Aged veterans home respite -  120  (120)  -   -  - -  -<br>Independent living (veterans) -  1,000  (1,000)  -   -  - -<br>Financial assistance Cumbria -  300  (300)  -   -  - -<br>Improving social isolation veterans Scotland  12,974  - (12,974)  -   -   19,974  (7,000)  12,974<br>Royal Observer Corps  111,516  - (16,459)  95,057   58,640   75,000  (22,124)  111,516<br>Stafford Trust  -  - -  -   15,120   -  (15,120)  -<br> 1,635,938   215,333  (317,562)  1,533,709   1,703,983   500,639  (568,684)  1,635,938<br>Respite care – LIBOR Funds<br>Respite care lunch clubs  -   -   -   -   -   -   -   -<br>Respite care property  128,574  (35,245) (93,329) -  135,433   -  (6,859)  128,574<br>Respite breaks and care hotels  254,413  (184,413) (70,000) -  280,324   -  (25,911)  254,413<br>Contribution to community engagement workers  212,498   111,200  (323,698) -  431,847   -  (219,349)  212,498<br>Domiciliary care regular -  109,298  (109,298) -  -   -<br>Management support  60,472  (840) (59,632) -  85,684   -  (25,212)  60,472<br> 655,957   -  (655,957) -  933,288   -  (277,331)  655,957<br>Total restricted funds  5,858,757   1,133,045  (1,847,572) 5,144,230  5,730,103   1,160,314  (1,031,660)  5,858,757<br>**----- End of picture text -----**<br>


72 

73 



FINANCIAL STATEMENTS 

|**26**Endowment funds<br>The purpose of funds exceeding £100K is set out under Note 23.||
|---|---|
|**As at**<br>**1 January**<br>**2022**<br>**Unrealised**<br>**(loss)**|**As at 31**<br>**December**<br>**2022**<br>**As at**<br>**1 January 2021**<br>**Unrealised**<br>**gain**<br>**As at 31**<br>**December**<br>**2021**|
|£<br>£|£<br>£<br>£<br>£|
|**Permanent endowment funds with unrestricted income**<br>||
|Pilot OfcerJP L Branson Memorial Fund<br>56,475<br> (7,917)<br>|48,558<br>51,494<br>4,981<br>56,475|
|Pilot OfcerJames Erskine CunningMemorial Fund<br>53,149<br> (7,451)<br>|45,698<br>48,461<br>4,688<br>53,149|
|FlyingOfcer L S DelaneyTrust<br>15,438<br> (2,164)|13,274<br>14,076<br>1,362<br>15,438|
|PaddyFinucane Memorial Fund<br>23,001<br> (3,224)|19,777<br>20,972<br>2,029<br>23,001|
|Louise Alice KayMemorial Fund<br>47,515<br> (6,661)|40,854<br>43,324<br>4,191<br>47,515|
|Mosquito Memorial Fund<br>13,352<br> (1,872)<br>|11,480<br>12,174<br>1,178<br>13,352|
|FlyingOfcer Douglas Frank Newsham Memorial Fund<br>42,421<br> (5,947)<br>|36,474<br>38,680<br>3,741<br>42,421|
|Viscount Nufeld Endowment<br>1,228,074<br> (172,155)|1,055,919<br>1,119,759<br>108,315<br>1,228,074|
|Helen MaryRenton Fund<br>50,128<br> (7,027)|43,101<br>45,707<br>4,421<br>50,128|
|RAF RugbyUnion Fund<br>58,952<br> (8,264)|50,688<br>53,753<br>5,199<br>58,952|
|Peter HenrySlater-Eiggert Memorial Fund<br>169,160<br> (23,713)|145,447<br>154,240<br>14,920<br>169,160|
|The Revd.James Edmund Strickland Memorial Fund<br>121,845<br> (17,080)|104,765<br>111,098<br>10,747<br>121,845|
|**1,879,510**<br> **(263,475)**|**1,616,035**<br>**1,713,738**<br>**165,772**<br>**1,879,510**|
|**Expendable endowment funds with unrestricted income**<br>||
|FlyingOfcer William Dron Memorial Fund<br>2,849<br> (399)|2,450<br>2,598<br>251<br>2,849|
|Frederick EleyFund<br>5,490<br> (770)|4,720<br>5,006<br>484<br>5,490|
|WingCommanderJHigginson Fund<br>11,213<br> (1,572)|9,641<br>10,224<br>989<br>11,213|
|Peter Grattan Holt Memorial Fund<br>58,436<br> (8,191)|50,245<br>53,282<br>5,154<br>58,436|
|E HJubb Fund<br>389,211<br> (54,561)|334,650<br>354,883<br>34,328<br>389,211|
|Middle East Relief Fund<br>49,707<br> (6,968)|42,739<br>45,323<br>4,384<br>49,707|
|MorleyFund<br>8,148<br> (1,142)|7,006<br>7,429<br>719<br>8,148|
|Orlebar Memorial Fund<br>9,220<br> (1,293)|7,927<br>8,407<br>813<br>9,220|
|Shattock Memorial ScholarshipFund<br>13,845<br> (1,941)|11,904<br>12,624<br>1,221<br>13,845|
|WoodingMemorial Fund<br>9,877<br> (1,385)|8,492<br>9,006<br>871<br>9,877|
|**557,996**<br> **(78,222)**|**479,774**<br>**508,782**<br>**49,214**<br>**557,996**|
|**Permanent endowment funds where the use of the income is restricted**||
|Newton Driver Memorial Fund<br>2,493,582<br> (349,558)|2,144,024<br>2,273,650<br>219,932<br>2,493,582|
|GroupCaptain W E Purdain Memorial Fund<br>3,184<br> (446)|2,738<br>2,903<br>281<br>3,184|
|RAFBF Educational Endowment Fund<br>631,452<br> (88,519)|542,933<br>575,758<br>55,694<br>631,452|
|Douglas Turner Benefaction<br>150,307<br> (21,070)|129,237<br>137,050<br>13,257<br>150,307|
|**3,278,525**<br> **(459,593)**|**2,818,932**<br>**2,989,361**<br>**289,164**<br>**3,278,525**|
|**Expendable endowment funds where the use of the income is restricted**||
|Mrs H MJerham Memorial Fund<br>34,641<br> (4,856)|29,785<br>31,586<br>3,055<br>34,641|
|Hector PillingMemorial Fund<br>733,992<br> (102,893)|631,099<br>669,254<br>64,738<br>733,992|
|RAF Prize Trust<br>280,499<br> (39,321)|241,178<br>255,759<br>24,740<br>280,499|
|RAFBF Educational Expendable Fund<br>165,697<br> (23,228)|142,469<br>151,083<br>14,614<br>165,697|
|**1,214,829**<br> **(170,298)**|**1,044,531**<br>**1,107,682**<br>**107,147**<br>**1,214,829**|
|||
|**Total endowment funds**<br>**6,930,860**<br>**(971,588)**|**5,959,272**<br>**6,319,563**<br>**611,297**<br>**6,930,860**|



74 

75 



FINANCIAL STATEMENTS 

|**27**Subsidiary entities|**27**Subsidiary entities|||||
|---|---|---|---|---|---|
|The results of the Fund’s wholly owned subsidiary entities are included within||||||
|the consolidated SOFA as follows:||||||
||**RAFBF**<br>**Trading Ltd**<br>**RAF Dependants**<br>**Fund**<br>**RAF Dependants**<br>**Income Trust Ltd**<br>**2022**<br>**2021**<br>**2022**<br>**2021**<br>**2022**<br>**2021**<br>£’000<br>£’000<br>£’000<br>£’000<br>£’000<br>£’000||**RAFBF Housing**<br>**Trust Ltd**<br>**2022**<br>**2021**<br>£’000<br>£’000|<br>**RAF Disabled**<br>**Holiday Trust**<br>**Subsidiary**<br>**entities**<br>**2022**<br>**2021**<br>**2022**<br>**2021**<br>£’000<br>£’000<br>£’000<br>£’000||
|**Income from:**||||||
|Donations|-<br>-<br>|6<br>44<br>-<br>-|118<br>115|<br>1|<br>2<br>125<br>161|
|Investments|1<br>-<br>224<br>213<br>1<br>-||19<br>-|<br>-|-<br>245<br>213|
|Other tradingactivities|147<br>143|-<br>-<br>-<br>-|-<br>-|<br>-|-<br>147<br>143|
|Charitable activities<br>Proft on sale ofproperties|-<br>-<br>-<br>-|-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|998<br>964<br>2,140<br>1,297|-<br>-|-<br>998<br>964<br>-<br>2,140<br>1,297|
|Subscriptions|-<br>-<br>179<br>182<br>35<br>31||-<br>-|<br>-|-<br>214<br>213|
|||||||
||**148**<br>**143**<br>**409**<br>**439**<br>**36**<br>**31**||**3,275**<br>**2,376**|**1**|<br>**2**<br>**3,869**<br>**2,991**|
|||||||
|**Expenditure on:**||||||
|Charitable activities|110<br>101<br>360<br>280<br>-<br>-||1,986<br>1,687|31|24<br>2,487<br>2,092|
|Other tradingactivities|31<br>34|-<br>-<br>-|-<br>-|-|-<br>31<br>34|
|Management and administration|7<br>8<br>42<br>28<br>36<br>31||-<br>-|-|-<br>85<br>67|
|||||||
||**148**<br>**143**<br>**402**<br>**308**<br>**36**<br>**31**||**1,986**<br>**1,687**|**31**|**24**<br>**2,603**<br>**2,193**|
|||||||
|Netgains/(loss)on investment assets<br>-<br>-<br> (893)<br>958<br>-<br>-|||-<br>-|6|14<br> (887)<br>972|
|||||||
|**Net result of subsidiary**|**-**<br>**-**<br>**(886)**<br>**1,089**<br>**-**<br>**-**||**1,289**<br>**689**|**(24)**|**(8)**<br>**379**<br>**1,770**|
|**RAFBF Trading Limited**|**RAF Dependants Fund**|**RAF Dependants Income**|**RAF Benevolent Fund**||**RAF Disabled Holiday Trust**|
|Company number: 07768120|Charity number: 253492|**Trust Limited**|**Housing Trust Limited**||Charity number: 286019|
|A company set up for the<br>RAF Benevolent Fund to<br>conduct trading in support of<br>its charitable objectives. The<br>Company donated £109,528|A charity with the RAF<br>Benevolent Fund as custodian<br>Trustee. Set up to promote<br>the efciency of the RAF<br>through relieving dependants|<br>Company number: 01285364<br>A company set up for<br>RAF Dependants Fund<br>subscribers to make further<br>fnancial provision for their|Company number: 1058896<br>Charity number: 264636<br>Scottish registered number:<br>SCO38218<br>A wholly owned subsidiary||A wholly owned subsidiary<br>of the RAF Benevolent Fund.<br>Its sole activity is to provide<br>holidays to disabled serving<br>and former members of the|
|to the Fund in 2022 (2021:<br>£101,300). The inter-company|of deceased serving<br>personnel from fnancial|dependants in the event<br>of their death in service.|of the RAF Benevolent<br>Fund. Its sole activity||RAF and their dependants.<br>The Trust purchases holiday|
|balance owed to the Fund at<br>year end was £159,578 (2021:<br>£132,542). The net assets at|distress. There were 19<br>deaths in 2022 (2021: 16). The<br>death grant was increased|There were 10 member<br>deaths in 2022 (2021: 7)<br>and benefciaries received|is to hold and operate<br>properties of benefciaries<br>of the RAF Benevolent||bonds which entitles it to<br>book holidays in the UK for<br>its benefciaries. The inter-|
|year end were £1 (2021: £1).|from £17,500 to £20,000 in|payments made on behalf of|Fund. The inter-company||company balance owed by|
||May 2022 in each case. The|the Trust by the underwriters|balance owed to the Fund||the Charity at year end was|
||inter-company balance owed|Aviva. The company donated|at year end was £9,497,644||£49,750 (2021: £19,531). The|
||to the Charity at year end|£nil to the Charity in 2022|(2021: £11,366,322). The||net assets at year end were|
||was £5,864 (2021: £3,926).|(2021: £nil). The inter-|net assets at year end||£521,779 (2021: £546,124).|
||The net assets at year end|company balance owed to|were £14,662,567 (2021:||RAF Benevolent Fund Gift|
||were £7,220,769 (2021:|the Charity at year end was|£13,373,342).||in Kind amounted to £nil|
||£8,106,464).|£5,864 (2021: £5,103). The|||(2021: £nil).|
|||net assets at year end were||||
|||£3,339 (2021: £3,339).||||



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## ~~SUBSIDIARY ORGANISATIONS~~ 

## ~~RAF BENEVOLENT FUND HOUSING TRUST LIMITED~~ 

## ~~RAF DEPENDANTS INCOME TRUST LIMITED~~ 

Companies House: 01058896 Charity Commission: 264636 OSCR: SC038218 

Companies House: 01285364 **Directors:** 

Air Vice-Marshal Chris Elliot (Chair) Victoria Akinboro Sarah Casemore (until 25 Feb 2022) Richard Cryer Air Commodore Simon Harper (from 28 Mar 2023) Air Commodore Paul Hughesdon (from 28 Mar 2023 until 15 June 2023) Squadron Leader Clive Martland (from 30 Sept 2022) Group Captain Dawn Murty (from 18 July 2022) 

## **Directors/Trustees:** 

Air Vice-Marshal Chris Elliot (Chair) Victoria Akinboro Patrick Aylmer Wing Commander Sarah Davis Air Commodore Simon Harper (from 28 Mar 2023) Air Commodore Paul Hughesdon (until 28 Mar 2023) Emrys Rogers 

## ~~RAFBF TRADING LIMITED~~ 

## ~~RAF DEPENDANTS FUND~~ 

Companies House: 07768120 **Directors:** 

Charity Commission: 253492 **Trustee:** Royal Air Force Benevolent Fund (Reg Charity: 1081009) 

Air Vice-Marshal Chris Elliot (Chair) Victoria Akinboro Alison Benjamin Graeme Craig (until 28 Mar 2023) James Dooley Air Commodore Paul Hughesdon (from 28 Mar 2023 until 15 June 2023) Jason Shauness (until 17 Mar 2023) 

## **Management Committee members:** 

Air Vice-Marshal Chris Elliot (Chair) Victoria Akinboro Sarah Casemore (until 25 Feb 2022) Richard Cryer Wing Commander Stuart Graham (from 1 Jan 2022 to 17 Jul 2022) Air Commodore Simon Harper (from 28 Mar 2023) Air Commodore Paul Hughesdon (until 28 Mar 2023) Squadron Leader Clive Alan Martland (from 30 May 2023) Group Captain Dawn Murty (from 18 Jul 2022) 

## ~~RAF DISABLED HOLIDAY TRUST~~ 

Charity Commission: 286019 

## **Trustee:** 

Royal Air Force Benevolent Fund (Reg Charity: 1081009) 

## **Scheme Manager:** 

Andy Cairns (until 21 Apr 2023) 


## ~~RAF BENEVOLENT FUND TRUSTEES LIMITED (DORMANT)~~ 

Companies House: 00945083 **Directors:** 

Air Vice-Marshal Chris Elliot (Chair) Victoria Akinboro Patrick Aylmer Wing Commander Sarah Davis Air Commodore Simon Harper (from 28 Mar 2023) Air Commodore Paul Hughesdon (until 28 Mar 2023) Emrys Rogers 

## ~~ROYAL OBSERVER CORPS BENEVOLENT FUND (DORMANT)~~ 

Charity Commission: 209640 OSCR: SCO37659 

## **Trustee:** 

Royal Air Force Benevolent Fund (Reg Charity: 1081009) 

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Royal Air Force Benevolent Fund 67 Portland Place London W1B 1AR 

The RAF Benevolent Fund is a registered charity in England and Wales (1081009) and Scotland (SCO38109)