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2024-03-31-accounts

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Annual Report 2023-2024 Trustees’ Report and Accounts for year ended 31 March 2024

Charity No. 211850 Company No. 00020080

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Toynbee Hall Annual Report and Accounts 2023/24

Contents

Contents
Foreword by Stephen Burns, Chair of Board of 3
Strategic Report 4
Introduction 4
Improving economic security 7
Helping our local community thrive 10
Collaborating to drive social change 13
Collaborating to end poverty and build fairer systems and institutions 14
Addressing systemic inequality and racial discrimination across our
work and our organisation		 15
Looking to the future 16
Our funders - a thank you 17
Our People 18
Fundraising 19
Toynbee Hall’s Structure, Governance and Management 21
Management of Risk 25
Our Finances 27
Statement of Trustees Responsibilities 29
Independent Auditors Report 30
Financial Statements 33
Reference and Administrative Information 51

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Toynbee Hall Annual Report and Accounts 2023/24

Foreword by Stephen Burns, Chair of the Board of Trustees

Toynbee Hall is a charity that works alongside people facing poverty, injustice, and inequality. We have been east London-based and focussed since 1884 and work with our local community to build a fairer society.

We provide vital advice and support, working in partnership to ensure everyone has an equal chance to thrive.

During 2023 we welcomed our new Chief Executive, Rebecca Sycamore, and published our Strategic Plan for 2023-26.

The strategic plan is an evolution of our work over the last few years and a recognition of the challenges we and other charities face. It draws from consultation and discussion, as well as the thinking of current and previous colleagues. It also involves the ideas of people who use our services and our peer researchers.

When Toynbee Hall first opened its doors in 1884, the need for help and support in the area outside those doors was greater than almost anywhere else in the UK. One-hundred and forty years later, and the community in which we work remains one of the most unequal in the country. However, we recognise that addressing poverty in 2024 requires new solutions, developed in collaboration with other organisations, and with those who have lived experience of the issues. Those solutions must recognise and address the disproportionate impact of poverty and injustice on minority communities, women, carers and people with disabilities.

The cost-of-living crisis continues to impact families and communities in East London as well as our own team who are dealing with similar issues to those service users they are delivering to on the front line. During 2023 we paid a cost-of-living increase to eligible staff, with those on lower salaries receiving a higher amount. We want to ensure that equity and diversity is embedded in our organisation and are currently undertaking a project to review grading, pay and reward with a view to establishing a more transparent system.

Colleagues from across the organisation took part in a survey towards the end of the year and, following this, we developed an action plan that identifies a range of actions to improve their experience and support them to carry out their roles effectively.

We are grateful to partners and funders, who continue to support us, and to the community members who contribute so much to our organisation.

This year we said goodbye to a number of our Trustees - Maysam Rizvi, Tahera Rouf, Gemma Woznicki, Dee O’Connell and Muna Yassin, and I would like to extend our thanks to all of them for their contributions over the few years. We welcome new Trustees Yu-Shan Chiu, Alice Gac, Thomas Nowacki, Claire Collins, Liam Keogh and Ademola Olaleye and look forward to working with them as we deliver our vision for a fairer future.

Stephen Burns

Chair of Trustees

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Toynbee Hall Annual Report and Accounts 2023/24

Strategic Report

Introduction

Last year the Board set our new CEO the objectives of reviewing our strategy, strengthening culture and securing a sustainable financial position.

In December a new three-year strategic plan was launched with an updated vision, mission and values.

We also carried out a colleague survey which had high levels of participation from across the organisation and gave us a clear set of actions to support strengthening our culture.

However, it is very clear that charities across the country, including Toynbee Hall, are experiencing increased demand alongside pressure on funding. According to NPC’s State of the Sector report (2024)[1 ] only a quarter of government or local authority contracts held by charities have been uplifted in line with inflation. The survey also found 62% of charities believe that they do not receive the full value it costs to deliver a public sector contract, with the average charity contributing 35% the value of a contract.

In their 2023 State of the Sector report Tower Hamlets CVS found the key challenges facing organisations are finding funding, rising costs, and short-term funding[2] .

We are grateful to commissioners who responded positively to our requests to increase funding so we could keep up with inflation including ensuring we could provide a cost-of-living increase to staff. We recruited a new fundraising team and also supported colleagues in services to find ways to maximise income including exploring opportunities to increase the scope of our advice services and research activity.

As part of our commitment to safeguarding we reviewed our approach last year; including commissioning an external organisation to review our approach and update our policies. We also carried out a review of our Complaints policy.

Towards the end 2023 we marked the 125 anniversary of our free legal advice centre (FLAC), an institution that has been at the forefront of providing access to justice since its inception as ‘the Poor Man’s Lawyer’ in 1898. As the longest continuously running free legal advice service anywhere in the world, FLAC has helped thousands of Londoners with their legal issues. With only 1 in 4 people currently eligible for legal aid, Toynbee Hall’s free legal advice service continues to be lifeline to those in need of legal support.

The 140th anniversary of Toynbee Hall’s opening is in 2024 and we are planning a series of events to mark this milestone.

Photo: FLAC 125 celebration event in December 2023

  1. NPC’s State of the Sector report (2024) 2. NPC's State of the Sector report (2023)

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Toynbee Hall Annual Report and Accounts 2023/24

Over the course of the year we reviewed our strategy and took the opportunity to reconsider our Vision, Mission and Values.

Our new strategy is an evolution of our work over the last few years and a recognition of the challenges Toynbee Hall and other charities face. It draws from consultation and discussion, as well as the thinking of current and previous colleagues. It also involves the ideas of some of the people who use our services and our peer researchers.

Our vision is of a fairer future with an end to poverty, injustice and inequality. The activities we undertake contribute to our vision. They are:

What we want to see in the world starts with our community and our organisation. This means:

Working together to build a thriving local community where people have the resources they need, feel their voices are heard and are optimistic about the future.

Being a good employer, where people are treated fairly, feel engaged and empowered, and work together to achieve our shared vision.

On a day-to-day basis our activities continue to be:

Over the 140 years of our history, Toynbee Hall has played a significant role in civic society. However, as we seek solutions for poverty and inequality we recognise those solutions must be built in collaboration with other organisations, and with those who have lived experience of the issues. They must recognise the disproportionate impact of poverty and injustice on minority communities, women, carers and people with disabilities.

Our research and policy agenda is based on meaningful partnership working with communities and stakeholders; sharing power and resources, co-designing projects, supporting communities to have their voice heard and then to develop recommendations and influence change.

We conduct Participatory Action Research (PAR) which is a research method that involves professional researchers and people with lived experience of an issue (peer researchers) working as equal partners.

Photo: peer researchers present their findings at the Emotion Support for Young People's project exhibition event

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A core aspect is to ensure those with lived experience are able to shape research, to focus on what is important to them and those around them. Another aspect of PAR is to work with stakeholders to implement solutions.

We have set the following objectives for the strategic plan:

Photo: Painting with Purpose - a painting class in the Community Centre.

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Toynbee Hall Annual Report and Accounts 2023/24

Improving economic security

Our work includes the practical support we offer people around debt and money (debt advice, welfare benefits support) and the advice we provide about housing and employment rights. It also includes our system change and policy work around financial health and capability.

Trust for London’s work on London’s Poverty Profile shows that 24% of Londoners are living in poverty[3] . This figure rises to 34% for Londoners living in non-white households and 47% for single parent households.

According to Money and Pensions Service, in 2023 15% of the UK adult population needed debt advice, equivalent to 8.1 million people[4] .

They are typically:

A further 24%, or 12.6 million people, are at risk of needing debt advice. These people are struggling to keep up with bills and credit commitments, or they are running short of money for essentials and using high-cost credit instead.

Across all our advice services a total of 14,991 people were supported last year, including 3,263 people we directly supported through our Advice Hub at Toynbee Hall. Those that accessed our advice services were £23,666,670 financially better off as a result of the advice given – this includes £6,565,487 for people that live locally.

Across our advice services we seek to reach those most effected by economic insecurity and ensure we continue to improve economic security in east London. Last year 27% of our clients were from east London, 66% were from an ethnic minority, 59% were female and 11% had a disability.

Our Money Coaching project, which launched this year, builds on our experience with money mentoring and is strategically aligned with the No Interest Loan Scheme (NILS). Whilst Toynbee Hall provided strategic input and advice in the setup of NILS, we were not directly involved in delivering the loan scheme itself. Instead, our focus was on enhancing the financial capabilities of a select group of participants from NILS through our Money Coaching sessions. The project specifically targeted individuals typically excluded from mainstream loan services due to poor credit histories, offering them tailored financial education to complement the financial relief provided by NILS. By working with a small subset of NILS participants, our Money Coaching initiative aimed to empower these individuals to make informed financial decisions, improve their financial resilience, and reduce their dependency on credit.

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  1. London Poverty Profle, Trust for London 4. The UK's Debt Landscape report 2023, Money and Pensions Service

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Toynbee Hall Annual Report and Accounts 2023/24

Throughout the year, we engaged with 114 participants, offering modules that covered budgeting, debt management, and savings strategies. These sessions were designed to foster long-term financial stability and independence, aligning with the broader objectives of NILS to provide ethical credit options and support to underserved populations. We have many Ssuccess stories, such as that of Ms. SK, demonstrate demonstrating the tangible benefits of this approach, where participants not only managed to meet their immediate financial needs but also laid the groundwork for future financial wellbeing. Through personalised coaching, we were able to help participants achieve positive outcomes, such as debt reduction and increased savings, despite operating on a smaller scale within the larger NILS framework.

Reducing the impact of debt

We are funded by the Money & Pensions Service (MaPS) to provide FCA regulated debt across London. To achieve this, we deliver advice directly at Toynbee Halls’ Advice Hub at 28 Commercial Street as well as at satellite locations in Newham, Barking & Dagenham, and Greenwich. In addition, we are the lead partner for a partnership of 15 charities that together make up the Debt Free Advice service (DFA).

In FY23/24 DFA supported 12,697 individuals with their debt and money worries, this figure includes 2,316 in East London. As a result clients accessing this service were a minimum of £17,822,088 financially better off this includes clients in East London being £1,269,500 better off.

Given the pressure of debt on individual well-being we have been focusing on finding more convenient and accessible ways for people to access debt advice. Our video kiosks have been important in this; they are placed in locations such as town halls and employment support centres and allow people to receive free, impartial debt advice quickly and efficiently.

In March 2024 we launched one of the most notable deployments of these kiosks at HMP Brixton. This is the first instance of delivering debt advice services via video in a prison setting. This initiative aims to support prisoners by providing them with financial guidance, helping to reduce reoffending rates by equipping them with essential life management skills. The success at HMP Brixton has led to plans for expanding this service to three additional prisons, further bridging the support gap for this vulnerable group.

Photos: Debt Free Advice kiosks in locations across London

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Toynbee Hall Annual Report and Accounts 2023/24

Advice for people in Tower Hamlets and City of London

Toynbee Hall provides two primary generalist advice services, tailored to meet the specific needs of different communities close to our location: the general advice service for Tower Hamlets and the City Advice project for the City of London. Both services are funded by local authorities and aim to support a wide range of issues affecting people who live and work in these areas.

Our Tower Hamlets Generalist Advice service empowers residents to access the benefits they are entitled to and navigate the intricacies of the application process. Through our collaborative approach and knowledgeable advisors, we make a positive impact on the lives of individuals in Tower Hamlets.

As much as possible, the services are shaped and developed with input from local people.

For example, City Advice includes community advocates to promote awareness of our services and gather valuable feedback to assess their effectiveness. This collaborative approach ensures that we tailor our assistance to meet the specific needs of the community we serve.

Together these teams supported 838 people and those that received support were collectively £1,896,717 better off.

Photo: A member of the Generalist Advice team is helping a client in the Advice Centre

Free Legal Advice

Toynbee Hall’s Free Legal Advice Centre (FLAC) has been providing free, high-quality legal advice for 125 years, making it the longest continuously running free legal advice service in the world. The service is volunteer-run and offers confidential legal advice to individuals who live or work in London, prioritising lowincome applicants.

The aim is to for pro-bono solicitors to help clients understand and exercise their legal rights, prepare court documents and navigate the system. Our Free Legal Advice Clinic (FLAC) is supported by volunteer legal advisers Toynbee Hall from leading law firms: A&O Shearman on employment law advice, Herbert Smith Freehills on housing law advice and Cleary Gottlieb on the Women’s Free Legal Advice Clinic, focusing on issues such as domestic violence and family law.

Last year we were able to provide free legal advice to 309 people including on housing (118 cases) and employment (76 cases) and family law (31 cases).

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Welfare Benefits Advice for individuals affected by cancer

Toynbee Hall is funded by Macmillan Cancer Support to provide specialised welfare benefits advice to individuals affected by cancer. This service aims to alleviate the financial burden experienced by cancer patients and their families, offering comprehensive support in several key areas. This service is delivered at several major hospitals in East & North London, ensuring that patients can access support during their treatment. Last year this service supported 1,062 patients and those that accessed the service were almost £4m better off.

Increasing fairness and equity in the financial system

The UK’s financial system is outdated, and exacerbates unfairness and unhappiness for people experiencing discrimination and exclusion. Our financial health work is a mix of practical peer-led support and research projects which are formed by those with lived experience of the issues. Areas of interest for our researchers are a fair transition to net zero, the impact of the poverty premium which leads to people on lower incomes paying more for goods and services and understanding more about the impact on the reduction in the use of and access to cash on low-income communities.

Helping our local community thrive

This includes: the services running from our community centre, heritage activities, and more of our participatory action research. It also includes how we make sure our commercial activities have a positive effect on the local economy.

Community activities

Within Toynbee Hall and across the neighbourhood we offer free-to-access activities for anyone who lives in the local area, particularly older people and people experiencing structural inequality.

Tower Hamlets has a relatively small population of older people, but it is a very deprived group with 44% living in income deprivation[5] . This has clear implications for their physical, social and emotional well-being.

5. Tower Hamlets State of the Borough report 2023

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Photos: Sewing and ballet activities in the Community Centre

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Toynbee Hall Annual Report and Accounts 2023/24

We lead Linkage Plus, a project commissioned by London Borough of Tower Hamlets. Through a partnership of local community organisations, we support increased confidence, improved physical health, increased social inclusion and greater happiness across the Tower Hamlets older population.

Last year across the partnership LinkAge Plus provided practical support to 990 people , delivered 890 physical activity sessions and 1200+ sessions of social activities . At our own LinkAge Plus hub in the Community Centre at Toynbee Hall we have provided practical assistance to 187 people and run a daily programme of social and physical activities and learning sessions which have over 1,000 attendances.

We also contributed to wider work for example, collaborating with Health Watch Tower Hamlets on their research about barriers adults 65+ and people from diverse ethnic communities’ face in accessing mental health and cancer screening services in the borough.

Another area of focus is enabling local children to play. Tower Hamlets children live in a borough which has the fastest growing population of any local authority in England and Wales; and it is the most densely populated, 37 times higher than any the England average (15,695 residents per square km versus 424). In 2021 the vast majority (87.8%) of Tower Hamlets residents lived in a flat. This is against the average for England of 22%.6 Space is so limited and not only is overcrowding an issue but so are safe outdoor play opportunities for children. Added to this the level of child poverty is the highest in London, with 48% of children growing up in poverty compared to a London average of 33%. Local parents told us they could not afford the local opportunities available to play or that to travel for free opportunities is an extra strain on limited resources. Our Play programme for primary school aged children developed last year as a result of this; we provided weekly sessions at two local primary schools and ran a weekly after school art club from our own space. We are planning to expand this programme next year. Over 100 local children participated in these activities.

Photo: A child is playing with a home-made mask during a Play session in the Toynbee Hall courtyard

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Toynbee Hall Annual Report and Accounts 2023/24

Heritage

For the last three years we have been running a heritage project (the Peoples History of Petticoat Lane) delivered by local people and organisations to celebrate an area rich in working-class and migrant history.

Our community commissioning in 2022-23 resulted in a series of projects that reflected the diversity and creativity of our community. Ten events took place throughout 2023, including a radical history walking tour, a traditional Bengali festival led by a local women's organisation, an exploration of the cultural history of Dhakai Jamdani weaving, a documentary about the Uber workers protest, a festival of music, art and food and a communitydesigned mosaic.

Over 100 local residents engaged in either commissioning or delivering activities and over a thousand people attended events .

Photo: A group of women wearing ceremonial dress at the Amm-Katli Fruit Festival as part of the People's History of Pettitocat Lane project.

Commercial events and operations

Our tenants at 28 Commercial Street, Arts Admin who lease Toynbee Studios and the Young Foundation who rent desk space in our main office, have all become a key part of the day-to-day experience on site, contributing to both our financial sustainability and our diversity.

We have places and spaces that can be used easily, safely and with dignity, by all, regardless of age, disability or gender. We balance the needs of our commercial clients (paying for venue hire and renting space from us) with ensuring our spaces are managed in the best way they can be to support and improve the local community. We buy locally; we donate surplus food; we share spaces; and we help our clients discover our heritage and that of the local area.

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Photo: Toynbee Hall

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Toynbee Hall Annual Report and Accounts 2023/24

Collaborating to drive social change

We continue to develop, learn from and share our model of participatory action research. In this approach local people are at the heart of identifying systemic barriers and shaping solutions, advocating for and shaping change at a local and national level.

Over the year we ran a peer research project to understand how local cafes and pubs can help tackle older people loneliness and isolation. Peer researchers aged 65 and over carried out interviews with customers and managers across cafes and pubs in Tower Hamlets. These interviews explored the role of hospitality venues in the lives of these residents, as well as ideas for driving changes for more age-friendly venues

to tackle social isolation among older residents while also bringing benefits to the hospitality sector as it continues to struggle on the back of covid and the cost-of-living crisis. Using key findings and themes from these interviews peer researchers, venue managers and policy makers came together to co-design recommendations and possible solutions/actions.

In further research, we collaborated with Thrive LDN and young peer researchers to conduct Participatory Action Research investigating the emotional support young people from low-income backgrounds access during transition to adulthood in the context of the cost-of-living crisis. A group of 12 peer researchers from low-income families residing in Tower Hamlets identified key issues, designed question guides, and conducted interviews and workshops with 44 young people and 25 of their parents/ guardians.

Photos from workshops and final exhibtion of the Emotional Support for Young People's Peer Research project.

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Toynbee Hall Annual Report and Accounts 2023/24

Collaborating to end poverty and build fairer systems and institutions

Data collected by London’s Poverty Profile (Trust for London) shows Tower Hamlets has the worst rate of child poverty and the worst rate of overall poverty in London. Over many years our peer research programme has looked into and suggested actions to improve the impact of poverty on our local community. We use our approach to peer research to ensure that the lived experience of our local community contributes to solutions and actions to build a fairer future.

We have worked in collaboration with staff from London Borough of Tower Hamlets and other local organisations. This year we hosted workshops for over 40 participants including peer researchers and local residents to help shape the council’s Tackling Poverty Strategy.

Over the year we also piloted a new project; the Knowledge Exchange Circle was a forum for policy makers, community organisations and residents to build relationships and consider if greater shared understanding and trust could lead to more effective policy making on areas the group selected (debt, education and employment). The debt group was able to bring together peer researchers, advice organisations and researchers from the Department of Work and Pensions. Their discussions included the barriers to obtaining Debt Relief Orders (which is a cheaper alternative to bankruptcy) such as the fee of £90. The fee was abolished for lower-income applications in England and Wales from April 2024 and we are proud that this group was able to play a part shaping this decision.

Overall 20 local people from Tower Hamlets and representatives of 22 organisations made up our Knowledge Exchange Circle and we following the pilot we are exploring how to take the approach forward.

Photo: A panel discussion at a Knowledge Exchange Circle event.

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Toynbee Hall Annual Report and Accounts 2023/24

A ddressing systemic inequality and racial discrimination across our work and our organisation

We know that the solutions we seek for poverty, injustice and inequality cannot be developed by Toynbee Hall alone. They must be built in collaboration with other organisations, and with those who have lived experience of the issues. Crucially those solutions must address the disproportionate impact of poverty and injustice on minority communities, women, carers and people with disabilities.

Our priorities in delivering our strategic plan include embedding our approach to diversity, inclusion, equity and doing the work necessary to become an inclusive and anti-racist organisation.

This work is delivered not only through our approach to Our People outlined in the section that follows but also in how we work across our other priorities; in our advice and community work and our participant research.

Work undertaken in 2021 identified principles for Toynbee Hall to be an equitable and inclusive organisation, which include:

Since many of our colleagues have joined Toynbee Hall since this work was undertaken, our intention is to spend some time in 2024 reviewing what these principles mean in our current context and what else needs to be a focus of our attention.

Photo: colleagues share their work at a Debt Free Advice Townhall meeting.

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Looking to the future

In the next year we will be finalizing our participant research into the emotional support needs of young people and reporting the findings and actions that have been identified by the young people leading the project. We have funding to test out some of these approaches with the participant researchers who developed them. We also hope to launch an additional money coaching project in partnership with a London based NHS Trust.

Many of our services could be re-tendered / re-negotiated or the contract come to an end during 2024/25. Contract renegotiations or contract ends would have a significant impact on the organisation and we are trying to ensure we have the appropriate capacity to support these changes. At the same time we are seeking new funding for our research based on the priorities in the strategic plan and the areas the community want to focus on. We have built a new team, bringing together our research and communities work so we can increase our advocacy and influencing activity. As part of this refresh we are also excited to welcome new colleagues to our community centre team who will bring local experience and understanding to our work.

Photo: colleagues at the Debt Free Advice Townhall meeting.

We are prioritizing income generation but are also looking at the financial strategy of the organisation from a strategic perspective – working with Trustees to develop longer term thinking.

We will be carrying out some strategic internal projects; a review or our approach to pay and reward and the development of a new equity, diversity and inclusion plan are both priorities.

Finally, 2024 marks the 140 anniversary of the opening of Toynbee Hall and we have a series of events planned to mark this milestone. We hope to work alongside other Tower Hamlets based settlement organisations and other partners to showcase the need for place-based organisations in providing local solutions to poverty, injustice and inequality as well as sharing this learning with wider audiences and where relevant having a national impact.

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Toynbee Hall Annual Report and Accounts 2023/24

Our funders – A thank you

Throughout the year, we were deeply grateful for the commitment of funders, new and old, and your trust in us.

There are certainly great challenges ahead for communities and organisations like ours. However, your commitment, understanding, and generosity makes us confident that together we can shape a fairer, happier future for East London and drive the sustainable recovery everyone in our community needs.

From all of the team and everyone we have supported this year, a heartfelt and sincere thank you.

A&O Shearman Financial Conduct Authority Aldgate Connect Hampstead Garden Suburb Trust Ashurst Health Foundation Big Give Christmas Challenge Herbert Smith Freehills BNY Mellon Heritage Action Zone Childhood Trust Historic England Citizens Advice London Borough of Tower Hamlets Council City Bridge Foundation London Legal Support Trust City of London Corporation Mills & Reeve Charitable Trust Cleary Gottlieb Steen & Hamilton Monday Charitable Trust Compass Wellbeing Money and Pensions Service David Hills Trust Ofenheim Charitable Trust Dudley and Geoffrey Cox Charitable Trust Proms at St Jude’s Childwick Trust Spear Charitable Trust French Huguenot Church of London Charitable Trust The Worshipful Company of Coopers The 29th May 1961 Charitable Trust Tompkins Foundation East End Citizens Advice Bureau Vera Outhwaite Charitable Trust Farrer & Co Charitable Trust Vandervell Foundation Fellowship House

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Young people taking part in some gardening exercises as part of a project on emotional support for young people and their families.

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Toynbee Hall Annual Report and Accounts 2023/24

Our People

We want to ensure that Toynbee Hall is experienced as a fairer and happier organisation; able to deliver and sustain the ambitions and outcomes within our new strategy.

This year we have continued to place a focus on equity, diversity and inclusion, wellbeing and building and maintaining a culture that reflects our values – inclusive, courageous and empowering.

As at 31 March 2024 we had a total of 84 employees; 67 are full time and 17 part time.

Across the organisation 40% of our colleagues describe their ethnicity as White British, English, Irish or Welsh, with 57% of colleagues from other Ethnic Minority groups and 3% not disclosed.

61% of our workforce are female and 39% are male.

19% of our colleagues have disclosed that they have a disability or long-term health condition.

Throughout 2023 and 2024 there were new appointments into the Senior Management Team. Rebecca Sycamore took over as permanent CEO in April 2023 and permanent appointments for Head of Fundraising, Head of People and Head of Communities and Social change were made throughout the year.

A People report was published in Autum 2023 and we expect to publish an updated report in Autum 2024 to demonstrate our commitment to transparency and accountability in this area.

In November 2023 we ran an internal colleague survey to help inform and prioritise some of the work centred around our staff and culture. A clear priority from colleagues was a review of our pay and reward and a total reward project is being undertaken in 2024 to increase fairness and transparency in how we pay our staff.

Photo: the staff team at Toynbee Hall.

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Fundraising

Fundraising has not been without its challenges this year - both across the sector and here at Toynbee Hall, and we’re hugely grateful to our supporters for their continued generosity and commitment. Thank you for everything you make possible!

Fundraising’s primary goal is to increase and diversify our income generation, ensuring we can continue to meet our mission to make East London, and beyond, a fairer place. Fundraising is integral to the delivery of Toynbee Hall’s mission to tackle unfairness and ensure everyone has an equal chance to thrive. Unrestricted income is vital for our charity’s financial health and is needed to cover the day to day running of the charity. Restricted income enables us to deliver projects that are needed by our community.

Our voluntary income comes from a wide range of sources. Individuals support us in various ways - through regular or one-off cash donations, volunteering, hosting fundraising events like concerts, or taking part in challenge events. Companies offer their pro bono expertise, partnership, gift in kind and cash gifts. Trusts and foundations provide valuable grants to make a real difference to the community we support.

Fundraising standards

We hold organisational membership to the Fundraising Regulator, who set and maintain the standard for charitable giving. This ensures our fundraising meets best practice as set out by the Regulator, and our supporters can be reassured that we are working to the highest standards.

We vigilantly adhere to regulation standards and General Data Protection Regulation (GDPR), both as a wider organisation, and in our fundraising practices. Our governance also extends to how we protect vulnerable people in the context of fundraising. Our Ethical Fundraising policy ensures fundraising at Toynbee Hall is done so fairly and recognises vulnerabilities, and ensures no undue pressure is placed on supporters.

To ensure a good supporter experience, we monitor fundraisers acting on our behalf. We provide guidelines, policies and dedicated support to fundraisers acting for us in communities. We ensure volunteers and interns acting on our behalf, in our office and within the community, represent our charity in the best way, by providing policies, guidelines and dedicated support. We do not use the services of external Professional Fundraising Organisations (PFOs) but we may employ freelancers from time to time for specific projects; they are paid on a day rate and do not receive commission, and we ensure that they also follow the Code of Fundraising Practice.

We aim for everyone to have a positive fundraising experience and are pleased to have received no fundraising complaints in the past year. When complaints arise, we follow Toynbee Hall’s complaint procedure. If complaints are escalated to the Fundraising Regulator, we will follow their procedure for handling complaints.

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Photo: Toynbee Hall staff with staff from pro bono partners Cleary Gottleib at the London Legal Walk.

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We continue to strive for excellence and monitor the number of complaints we have against communication touchpoints in our key performance indicators.

We are keen to hear from our supporters and understand what inspires them to tackle injustice and inequality. As we celebrate our 140th anniversary next year, we will carry out supporter surveys to give our supporters the opportunity to share their stories, let us know how they would like to stay in touch and learn more about what they want hear about. We ensure supporters can clearly opt out of receiving communications and ensure our fundraisers are well trained in GDPR regulation, and on our policies and guidelines.

Looking forward, we will continue to increase our financial resilience, working with our supporters, to build our unrestricted reserves to support our core costs, and give focus to programmes that are critical to our community, yet need more restricted funding to ensure they can continue. Fundraising’s primary goal is to increase and diversify our income generation, ensuring we can continue to meet our mission to make East London, and beyond, a fairer place.

Photo: Toynbee Hall team members at Cleary Gottleib offices to mark a new pro bono partnership.

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Structure, Governance and Management

Charitable Objectives

Our charitable objectives are set out in our Articles of Association and are to:

  1. To prevent or relieve poverty or financial hardship;

1.1 By providing goods, services and/or advice to persons who suffer from hardship or distress, including by virtue of their health, age, offending status, economic or other special circumstances.

1.2 By undertaking and supporting research into factors that contribute to poverty or financial hardships and the most appropriate ways to mitigate these.

1.3 By raising awareness and informing and influencing the public and public policy on these issues.

  1. To promote social inclusion for the public benefit by preventing people from becoming socially excluded and assisting them to integrate into society, by undertaking and supporting research into factors that contribute to social exclusion and the most appropriate ways to mitigate it and by raising awareness and informing and influencing the public and public policy on social exclusion;

  2. To advance education by providing or assisting in the provision of experiences, learning and engagement, enhancing for the public benefit, amongst other things, lifelong learning and citizenship for the public benefit;

  3. To advance education by the encouragement of the Arts, including arts of drama, mime, dancing, singing and music;

  4. To provide for the benefit of the public the conservation, protection and improvement of the physical environment by the preservation, repair and maintenance of the historic building known as Toynbee Hall situated at 28 Commercial Street, London, E1 6LS; and/or

  5. To provide, or assist in the provision of facilities, in the interest of social welfare for recreation or other leisure time occupation of members of the public at large and/or individuals who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their conditions of life.

We are satisfied that we undertake all of our work within our charitable objectives and the public benefit requirement as defined in Section 17 of the Charities Act 2011.

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Toynbee Hall Annual Report and Accounts 2023/24

Toynbee Hall’s Board of Trustees

The Board of Trustees formally determines, in compliance with the Charity Commission rules, matters such as disposal or acquisition of property, and approves the key operating policies of the charity. The Board is also responsible for the overall risk policy and for assessing the adequacy of the risk mitigation plans. Trustees give their time voluntarily and receive no personal benefit from Toynbee Hall. They are a group with a diverse range of skills, a deep commitment to Toynbee Hall’s values and mission, and throughout the last year have performed their duties - in terms of governance, and also in terms of strategic oversight of the organisation - very effectively, enabling us to achieve so many positive outcomes in a context of so much uncertainty.

The Board of Trustees comprises:

Stephen Burns, Chair appointed 23 March 2023
Ali Hussein appointed 21 April 2020, re-appointed 13 December 2023
Husna Mortuza appointed 21 February 2019, re-appointed 14 December 2022
Laura Ratling appointed 21 April 2020, re-appointed 13 December 2023
Sam Thomas appointed 21 April 2020, re-appointed 13 December 2023
Yu-Shan Chiu appointed 13 December 2023
Alice Gac appointed 13 December 2023
Thomas Nowacki appointed 13 December 2023
Claire Collins appointed 11 June 2024
Liam Keogh appointed 11 June 2024
Ademola Olaleye appointed 11 June 2024

The following Trustees have resigned from the Board since 31 March 2023:

Gemma Woznicki resigned 21 June 2023 Dee O’Connell resigned 13 March 2024 Maysam Rizvi resigned 20 March 2024 Tahera Rouf resigned 28 April 2024 Muna Yassin resigned 4 July 2024

We are grateful to them for their service.

The Board comprised 8 members at 31 March 2024 and the Board of Trustees appointed three additional members at the 11 June 2024 meeting following a successful recruitment process.

Committees

In addition to the Board meetings, the governance structure of Toynbee Hall provides engagement for trustees through the Finance and Fundraising Committee, People Committee and Audit and Risk Committee.

Membership of the Committees is as follows:

Finance and Fundraising Committee

Ali Hussein Chair Stephen Burns Alice Gac appointed May 2024 Sarah Squires co-opted member

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Toynbee Hall Annual Report and Accounts 2023/24

People Committee Sam Thomas Chair Laura Ratling Naomi White co-opted member appointed May 2024 Tahera Rouf resigned 13 March 2024

Audit and Risk Committee

Ali Hussein Stephen Burns Naomi White Thomas Nowacki appointed May 2024

Senior Management Team

The Trustees delegate the day-to-day management of Toynbee Hall to the Chief Executive. Rebecca Sycamore joined as Chief Executive in April 2023. The Chief Executive is supported by the Senior Management Team.

The senior management team comprises:

Ruth McGregor Director of Finance Matthew Dronfield Managing Director DFA and Director of Advice Services Katie Taylor Head of Communities and Social Change (appointed January 2024) Dot Calvert Head of People (appointed September 2023) Ben Campion Head of Commercial and Operations Lizzie Stevenson Head of Fundraising (appointed May 2023)

SMT members who left during the year:

Mila Smith Head of People Xia Lin Head of Research

The Chief Executive develops Toynbee Hall’s strategic and business plans, both of which are approved and then monitored by the Trustees.

The team use a range of business planning and performance management systems which provide transparent targets in relation to our commitments to funders and our own ambitions to create the best outcomes we can for the community around us and beyond. The Chief Executive reports on organisational performance against strategic objectives at each Board meeting. This enables Trustees to monitor and evaluate performance regularly.

Transparency

In accordance with our remuneration policy, Toynbee Hall publicly reports Toynbee Hall’s wage differentials and discloses the pay of our leadership team. Details of the remuneration of the Key Management Personnel are set out in note 6 to the financial statements.

As an anti-poverty charity and an accredited London Living Wage employer we take equity issues around pay extremely seriously.

At 31 March 2024 the ratio of the CEO’s pay to median FTE salary equates to 2.87:1 (2023 3:1); and of the CEO’s pay to the lowest FTE salary was 4.18:1 (2023 4.6:1).

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Toynbee Hall Annual Report and Accounts 2023/24

We recognise the Trade Union, Unite, and are happy to enjoy a good relationship with the Union as an important stakeholder in encouraging and assisting good industrial relations.

Equity and Diversity

As an organisation with a vision of a fairer and happier future, with a very diverse staff team, and deep roots and connections within a hugely diverse community in East London, our mission requires us to put equity and diversity at the heart of all we do.

As mentioned in earlier sections, the new strategic plan sets out a key objective to:

Ensure that addressing systemic inequality and racial discrimination is a priority across our work and our organisation.

This is reflected in one of our priorities to deliver the strategic plan which sets out that we will embed our approach to diversity, inclusion, equity and do the work to become a genuinely anti-racist organisation.

Throughout this report, as we talk about the reach of our advice work, our participant research and how we work with colleagues we have identified areas of work which intend to increase equity and diversity. For example, we recognise that the cost-of-living crisis is having a disproportionate impact on people with low incomes; to that end our pay award this year was structured in a way to provide higher percentage increases to our lower paid staff.

Work undertaken in 2021 identified principles for Toynbee Hall to be an equitable and inclusive organisation, which include:

Since many of our colleagues have joined Toynbee Hall since this work was undertaken, our intention is to spend some time in 2024 reviewing what these principles mean in our current context and what else needs to be a focus of our attention. We also know that we will be reviewing our approach to pay and reward during 2024 /25 to ensure this is transparent and equitable.

We continue to have a diverse organisation and Board of Trustees. However, there is a lack of ethnic diversity in our senior management team and we have acknowledged that this is not ideal. The SMT is committed to allyship and in working to ensure that Toynbee Hall is representative of our local community.

The work we will do in the next year will lead to the completion of a new equity, diversity and inclusion plan which includes our approach to becoming an anti-racist organisation.

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Management of Risk

The Board and senior management recognize that managing risks is essential to ensuring the success and sustainability of our operations. We are committed to implementing effective risk management practices that safeguard our mission, stakeholders, and resources.

Our aim is to create a culture of effective risk management and mitigation within the organisation linked to our long-term strategic plan, operating plan and annual budget, all of which are approved by the trustees. We do this through our regular reviews amongst senior managers, and in line with updating on progress against operational plans and targets.

We carry out training - for instance on financial procedures, health and safety and safeguarding - for all staff as necessary to instil good practice and use risk assessments to ensure we are managing day to day risk effectively in our operations.

Our key policies covering safeguarding, procurement, financial management and health and safety are reviewed and updated by senior managers on an annual basis and scrutinised by the Board.

The Audit and Risk Committee and the Board regularly review the risk register which allocates risks to strategic; governance; financial; operational; people and resources; compliance and external categories. A simple scoring system is used, rating likelihood and impact, to highlight those that are most significant. The register sets out the mitigating factors that we adopt to manage risks.

The most significant risks facing the charity for the year ahead have been identified as:

----- Start of picture text -----
Risk Background Mitigating factors
----- End of picture text -----

Risk Background Mitigating factors
Limited resources force
unstrategic choices regarding
resources		 Income from grants and
services contracts is not fully
covering the cost of delivery.		 Work being undertaken to secure
improved income from fundraising,
contracts and commercial.
Insuficient free reserves
inhibit investment in longer
term strategy.		 Cost increases not matched
by increased funding resulting
in a defcit which has reduced
our reserves.		 Budget to break even in next fnancial
year. Costs tightly controlled. New
funding sought to cover core costs or
grants making a net contribution..
Fundraising does not bring in
expected income.		 Increased competition for
grants and funding and
challenging targets in place.		 New fundraising strategy developed
Work to re-engage lapsed supporters
under way. Utilising existing relationships
and exploring commercial opportunities
to diversifyfundraised income streams.
Failure to comply with the
law and/ or regulatory
requirements of external
bodies.		 Included as a key risk due to
volume or requirements and
severity of impact of non-
compliance		 Policies and procedures in place, annual
audits and ownership assigned for
regulatory requirements, and regular
staf training.
Disruption to IT systems
leading to a reduced ability
to deliver our programmes,
services and operations.		 Included as a key risk due
to heightened threats and
severity of impact.		 Most activities delivered via cloud based
applications / services - removing reliance
on servers physical infrastructure.
Multifactor Authentication in place
across core systems. Cyber essentials
certifcation and insurance / support in
place.

The Senior Management Team and Board are proactive in considering long term risks and establishing mitigating factors.

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Toynbee Hall Annual Report and Accounts 2023/24

Trustees/Directors Indemnity Insurance

Toynbee Hall pays for Trustee indemnity insurance as permitted by the Charities Act 2006.

Such qualifying third-party indemnity insurance remains in force as of the date of approving the trustees’ annual report.

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Toynbee Hall Annual Report and Accounts 2023/24

Our Finances

Financial Review

The results for the year, as set out in the Consolidated Statement of Financial Activities, show a negative net movement in funds of £227k (2023: £1,469k negative). This comprises:

Income for the year was £7.77m compared to the previous year of £8.57m. This is primarily due to a reduction in income from the Money and Pensions Service (‘MaPS’) grant for Debt Free Advice.

Overall income has been reduced by £822k. Significant changes in income were as follows:

The Debt Free Advice grant was renewed in 2023 for a reduced level of funding. There were additional grants awarded in the latter part of the year in respect of debt modernisation services.

Other advice services include City Advice, MacMillan benefits advice and the Free Legal Advice Centre (FLAC). As in previous years there is an overall deficit on providing these services. However, due to increased income the overall deficit has reduced to £64k (2023: £193k).

Our Wellbeing services continued to run at a deficit but expenditure for the year was significantly reduced resulting in a reduced deficit of £49k for the year (2023: £133k).

Income for our Education services (which includes our Youth, Heritage and Research work) reduced slightly but costs were reduced significantly with the resulting in overall surplus for the year of £46k (2023: deficit £111k).

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Toynbee Hall Annual Report and Accounts 2023/24

Income for our Education services (which includes our Youth, Heritage and Research work) reduced slightly but costs were reduced significantly with the resulting in overall surplus for the year of £46k (2023: deficit £111k).

Our Financial Health activities during the year generated a full year’s funding from the No Interest Loan Scheme (NILS) pilot which ran for the full financial year, although it has now finished. Other projects including the UK problem debt coalition have also come to an end. The overall deficit increased to £163k (2023: £155k deficit).

Our venue hire business, traded through the subsidiary Toynbee Hall Trading Limited, achieved income of £412k (2023: £371k) as business continued to improve despite various challenges. Overall after charges for Toynbee Hall the business made a deficit of £15k (2023: surplus £36k).

There has been no revaluation of our investment property by in 2023/24 following advice that the market remains stable.

The charity has £3.0m of long-term borrowings from CAF Bank Limited. During 2022 the loan was converted to a fixed rate of 7.48% for five years, after which it will revert to a variable rate. The loan is being repaid in monthly instalments and the outstanding balance of £2.6m will be fully repaid by June 2044.

With this long-term funding in place, the expectation that Funders will continue to support communitybased organisations, and the expected increase in future venue hire and other commercial income, the trustees are confident that the Charity has sufficient working capital to be able to fund its operations and meet its loan repayment obligations.

The Group ends the year with consolidated reserves of £12.44m (2023: £12.66m). Of this amount, £257k (2023 - £401k) represents restricted reserves. Of the balance of £12.18m (2023: £12.26m), £11.4m (2023: £11.48m) has been designated in respect of our properties. The remaining reserves of £0.78m (2023: £0.78m) represent revaluation reserves.

Reserves Policy

Our reserves policy is to hold unrestricted funds equivalent to the value of two month’s expenditure. Currently, this would equate to the Charity having unrestricted funds of approximately £670k (2023: £650k), calculated by excluding the direct costs of our Debt Free Advice programme, which include funds distributed to and expended by the debt advice partners.

While we are generating income from our estate, the increased interest rate means that we are incurring additional costs for servicing the loan and consequently the net return is lower than previously budgeted.

In line with our policy, all of the unrestricted realised reserves of the Charity of £11.4m (2023: £11.48m) have been designated for the fixed assets, leaving a £nil balance on the undesignated General Fund (2023: £nil).

With a realistic budget in place to return to a break even position in the 2024/25 financial year, and a future income strategy being developed for the medium term, the Charity is confident that it will rebuild its unrestricted funds in the future to meet its reserves policy requirements going forward. In the short term, the Charity has utilised the security of its substantial asset base to arrange borrowing facilities to fund this reserves gap.

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Toynbee Hall Annual Report 2023/24

Statement of Trustees Responsibilities

The trustees (who are also directors of Toynbee Hall for the purposes of company law) are responsible for preparing the trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group 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 trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2024 was 8 (2023 - 9). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

In accordance with Section 485 of the Companies Act 2006, a resolution proposing the re-appointment of Haysmacintyre LLP as the charitable company’s auditor will be placed before the Annual General Meeting.

The trustees’ annual report which includes the strategic report has been approved by the trustees on 12 September 2024 and signed on their behalf by:

Name: Stephen Burns Position: Chair

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Toynbee Hall Annual Report and Accounts 2023/24

Independent Auditor’s Report to the members of Toynbee Hall

Opinion

We have audited the financial statements of Toynbee Hall for the year ended 31 March 2024 which comprise Consolidated Statement of Financial Activities (incorporating an Income and Expenditure Account), the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent.

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Toynbee Hall Annual Report and Accounts 2023/24

with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

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

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees for the financial statements

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

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

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Toynbee Hall Annual Report and Accounts 2023/24

Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, corporation tax, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries and management bias in accounting estimates and judgements. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 charitable company and charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Weaver (Senior Statutory Auditor)

for and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place, London EC4R 1AG

Date:………………….......

9 October 2024

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Toynbee Hall Annual Report and Accounts 2023/24

Consolidated Statement of Financial Activities (incorporating an income and expenditure account) For the year ended 31 March 2024

Note
Income from
3a
4
11,12
5
19
Reconciliation of funds
19
Dividends and interest received
Donations and legacies
Charitable activities
Advice
Wellbeing
Education
Financial health
Other activities
Estates income
Trading income
Investments
Rentals from investment property
Other Income
Release of deferred lease premium
Total income
Provision of accommodation
Raising funds
Fundraising and publicity
Costs of generating estates income
Costs of generating trading income
Costs of generating investment income
Expenditure on
Charitable activities
Advice
Wellbeing
Education
Financial health
Total expenditure
Net income / (expenditure) before net
gains / (losses) on investments
Net gains/ (losses) on investments
Net income / (expenditure) for the year
Transfers between funds
Net movement in funds
Total funds brought forward
Total funds carried forward		 Restricted
Debt Free
London
£'000
4,785
-
-
-
-
-
-
-
-		 Restricted
Other
£'000
3
382
770
88
109
-
-
-
-
-		 Unrestricted
£'000
185
253
-
-
226
81
410
2
437
46		 2024
£'000
188
5,420
770
88
335
81
410
2
437
46
7,777
229
43
361
286
5,720
820
42
498
3
8,002
2
(223)
-
(223)
12,659
12,436
(225)		 2023
£'000
159
6,111
817
142
302
106
440
6
440
46
4,785 1,352 1,640 8,569
-
-
-
-
5,021
-
-
-
-		 -
-
-
389
820
42
217
-		 229
43
361
286
310
281
3		 168
49
318
208
6,590
950
253
457
4
5,021 1,468 1,513 8,997
-
(236)		 -
(116)		 2
127		 (1,041)
(428)
(236)
125		 (116)
83		 129
(208)		 (1,469)
-
(111)
259		 (33)
140		 (79)
12,260		 (1,469)
14,128
148 107 12,181 12,659

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20 to the financial statements.

The notes on pages 36 to 50 form part of these financial statements.

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Toynbee Hall Annual Report and Accounts 2023/24

Balance sheets

As of 31 March 2024

Balance sheets
As of 31 March 2024 Company no. 00020080
Note
Fixed assets
10
11
12
Current assets
14
Liabilities
15
17
19
Total restricted funds
Total unrestricted funds
19
Fair value reserve
Total funds
General funds
Creditors: amounts falling due after one year
Net assets
Funds
Restricted funds
Debt Free Advice
Other funds
Unrestricted funds:
Designated funds
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Tangible assets
Investment properties
Investments
Debtors
Short term cash deposits
Cash at bank and in hand		 2024
2023
£'000
£'000
9,098
9,091
6,225
6,225
24
22
15,347
15,338
525
1,391
865
744
1,390
2,135
(874)
(1,286)
516
849
15,863
16,187
(3,427)
(3,528)
12,436
12,659
148
259
109
142
257
401
11,395
11,476
784
782
12,179
12,258
12,436
12,659
The group		 2024
2023
£'000
£'000
9,093
9,082
6,225
6,225
24
22
15,342
15,329
491
1,380
853
692
1,344
2,072
(784)
(1,190)
560
882
15,902
16,211
(3,427)
(3,528)
12,475
12,683
148
259
109
142
257
401
11,434
11,500
-
784
782
12,218
12,282
12,475
12,683
The charity
15,347 15,338 15,342
525
865		 1,391
744		 491
853
1,390
(874)		 2,135
(1,286)		 1,344
(784)
516 849 560
15,863
(3,427)		 16,187
(3,528)		 15,902
(3,427)
12,436 12,659 12,475
148
109		 259
142		 148
109
257 401 257
11,395
784		 11,476
782		 11,434
784
12,179 12,258 12,218
12,436 12,659 12,475

As permitted by Section 408 of the Companies Act 2006, the Statement of Financial Activities and Income and Expenditure Account of the Parent Charitable Company have not been presented as part of these financial statements. The gross income of the parent charitable company was £7,327k (2023: £8,265k) and deficit of £212k (2023: deficit of £1,511k).

Approved by the trustees and authorised for issue on 12 September 2024 and signed on their behalf by

Stephen Burns Chair

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Toynbee Hall Annual Report and Accounts 2023/24

Consolidated Statement of cash flows

For the year ended 31 March 2024

Note
£'000
£'000
21
222
439
(276)
163
(57)
Loan interest paid
(207)
(264)
121
744
22
865
Cash and cash equivalents at the end of the year
Net cash used in operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of fixed assets
Net cash provided by / (used in) investing activities
Cash flows from financing activities
Loan repayments
Net cash (used in)/ provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
2024		 Note
£'000
£'000
21
222
439
(276)
163
(57)
Loan interest paid
(207)
(264)
121
744
22
865
Cash and cash equivalents at the end of the year
Net cash used in operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of fixed assets
Net cash provided by / (used in) investing activities
Cash flows from financing activities
Loan repayments
Net cash (used in)/ provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
2024		 Note
£'000
£'000
21
222
439
(276)
163
(57)
Loan interest paid
(207)
(264)
121
744
22
865
Cash and cash equivalents at the end of the year
Net cash used in operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of fixed assets
Net cash provided by / (used in) investing activities
Cash flows from financing activities
Loan repayments
Net cash (used in)/ provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
2024		 £'000
£'000
(893)
446
(42)
404
(75)
(151)
(226)
(715)
1,459
744
2023		 £'000
£'000
(893)
446
(42)
404
(75)
(151)
(226)
(715)
1,459
744
2023
(57)
(207)		 (75)
(151)
121
744		 (715)
1,459
865 744

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Toynbee Hall Annual Report and Accounts 2023/24

Notes to the financial statements

For the year ended 31 March 2024

1. Accounting policies

a) General information

Toynbee Hall is a charitable company limited by guarantee incorporated in England and Wales (company no. 00020080) and registered with the Charity Commission (charity registration number 211850). The charitable company's registered office and principal operational office address is 28 Commercial Street, London, E1 6LS.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) second edition effective 1 January 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements are presented in UK Sterling, which is the Charity's functional currency, and rounded to the nearest thousand pounds.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

The charitable company meets the definition of a public benefit entity as set out in section 3 of FRS 102.

c) Basis of consolidation

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary Toynbee Hall Trading Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements.

d) Going concern

The Charity has produced a cash flow forecast up to 30 September 2025 based on its planned income and expenditure. The trustees have reviewed this forecast and, in particular, the key assumptions relating to future income that is not yet committed as well as future expenditure that will be required. Having discussed the forecast and assumptions with the management and having taken into account the Charity’s fundraising plans and the wider funding environment, they consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

e) Income

Income, including that from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

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Toynbee Hall Annual Report and Accounts 2023/24

in the Consolidated Statement of Financial Activities in the same period as the related expenditure.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and economic benefit can be measured reliably. In accordance with the Charities SORP FRS 102, volunteer time is not recognised within the statement of financial activities.

On receipt, donated gifts, professional services and facilities are recognised on the basis of the value of the gift to the charity, which is the best estimate of the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

h) Fund accounting

Restricted funds are those used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. There are two funds within unrestricted funds:

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. The charity provides a range of benefits to employees including paid holiday arrangements and defined contribution pension plans. Short-term employee benefits, including holidays and other simiar nonmonetary benefits, are recognised as an expense in the period in which the service is received. All costs included in terminating employee contracts are accounted for on an accruals basis and disclosed in aggregate in staff costs.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, support and governance costs for the direction and administration of each activity, comprising the salary and overhead costs of the central function, are apportioned in the following way based on estimated staff time and space utilisation attributable to each activity.

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Toynbee Hall Annual Report and Accounts 2023/24

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Amounts paid or payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless other systematic basis is representative of the time pattern over which the lessor’s benefit from the leased asset is diminished.

l) Lease premiums

Premiums received on the issue of leases are taken to deferred income in the balance sheet and released to the statement of financial activities on a straight line basis over the term of the lease.

m) Tangible fixed assets

Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment annually and any impairment loss is recognised where the recoverable amount of the asset is less than its carrying amount.

The historic Toynbee Hall building is expected to have a residual value that will never fall below the original cost of redevelopment. As such, no depreciation is recognised as the charge is considered to be immaterial to the financial statements. Other freehold buildings in use by the Charity are depreciated over a period of 50 years.

All costs directly attributable to the construction of tangible fixed assets, incurred to bring the asset into its intended working condition, are capitalised as part of the cost of that asset. Cost includes, for qualifying assets, attributable borrowing costs capitalised. Assets in the course of construction are not depreciated. Fixtures, fittings and equipment are stated at cost, less accumulated depreciation, which is provided on a straight line basis as follows:

Computer equipment – over 3 years Fixture, fittings and other equipment – over 15 years

Items of equipment are capitalised where the purchase price exceeds £1,000.

Plant and machinery is stated at cost, less accumulated depreciation, which is provided on a straight line basis over 15 years. Licences for IT software are not capitalised but expensed in the period of use.

n) Investment properties

Investment properties are measured initially at cost and subsequently included in the balance sheet at fair value. Investment properties are not depreciated. Any change in fair value is recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments is shown as a fair value reserve in the balance sheet. The valuation method used to determine fair value is stated in the notes to the accounts.

o) Investment in shares

Investment in shares are a form of basic financial instrument and are initially recognised at their transaction

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Toynbee Hall Annual Report and Accounts 2023/24

value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value is recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments is shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

p) Investments in subsidiaries

Investments in subsidiaries are measured at cost, less impairment.

q) Debtors

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

r) Cash at bank and in hand

Cash at bank and in hand is held to meet short-term cash commitments as they fall due rather than for investment purposes.

s) Current asset investments

Current asset investments are investments relating to cash or cash equivalents with a maturity date of less than one year. Cash on deposit and cash equivalents with a maturity of less than one year are held for investment purposes rather than to meet short-term cash commitments as they fall due.

t) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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

u) Pensions

The charity contributes to a group defined contribution personal pension plan for certain employees. The pension costs charged represent the contributions payable to the plan and are allocated to activities and funds on the basis set out in Note 1(i) and Note 1(j) above.

v) Critical accounting estimates and judgements

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key areas subject to judgement and estimation are as follows:

Revaluation of investment properties

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The Group carries its investment property at fair value, with changes in fair value being recognised in profit or loss. The key assumptions used to determine the fair value of investment property are further explained in note 11.

Mixed use property

The Group's property at 28 Commercial Street is partly occupied for its own operations and partly for the purpose of earning investment returns in the form of rental income. FRS 102 requires such mixed use property be separated between investment property and tangible fixed assets, and for the investment property component to be measured at fair value. The Group has separated the cost of construction between the components on the basis of the square footage of each floor.

A desktop valuation was obtained from the surveyors valuing the investment property at £6.95m in June 2021 and this valuation was used as the carrying amount of the investment property component at 31 March 2021 and 31 March 2022. Following external advice that the central London market was impacted by cost of capital and returns on other investments, leading to a reduction in value of c15%, the value of the investment property was reduced to £5.9m as at 31 March 2023.

Following advice this valuation remains unchanged at 31 March 2024.

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Toynbee Hall Annual Report and Accounts 2023/24

Notes to the financial statements (continued)

For the year ended 31 March 2024

Detailed comparatives for the consolidated statement of financial activities For the year ended 31 March 2023

For the year ended 31 March 2023
Income from:
Donations and legacies
Charitable activities
Advice
Wellbeing
Education
Financial health
Other trading activities
Estates income
Trading income
Investments
Dividends and interest received
Rentals from investment property
Other Income
Release of deferred lease premium
Total income
Fundraising and publicity
Costs of generating estates income
Costs of generating trading income
Costs of generating investment income
Charitable activities
Advice
Wellbeing
Education
Financial health
Provision of accommodation
Total expenditure
Net expenditure before net losses on investments
Net gaines on investments
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Expenditure on
Raising funds
Net expenditure for the year		 Restricted
Debt Free
London
£'000
5,601
-
-
-
-
-
-
-
-
5,601
-
-
-
-
5,887
-
-
-
-
5,887
(286)
-
(286)
201
(85)
344
259		 Restricted
Other
£'000
3
281
817
142
192
-
-
-
-
-
1,435
-
-
-
-
410
950
253
410
-
2,023
(588)
-
(588)
544
(44)
184
140		 Unrestricted
£'000
156
229
-
-
110
106
440
6
440
46
1,533
168
49
318
208
293
47
4
1,087
446
(1,041)
(595)
(745)
(1,340)
13,600
12,260		 2023
Total
£'000
159
6,111
817
142
302
106
440
6
440
46
8,569
168
49
318
208
6,590
950
253
457
4
8,997
(428)
(1,041)
(1,469)
-
(1,469)
14,128
12,659

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Toynbee Hall Annual Report and Accounts 2023/24

Notes to the financial statements (continued)

For the year ended 31 March 2024

3
a)		 Donations and legacies
Trust and foundation grants
Other donations
DWP grants
Donated services
Donations and legacies
Trust and foundation grants
Other donations
Donated services
Income
Detailed comparatives for income
For the year ended 31 March 2023		 Restricted
£'000
-
3
-		 Unrestricted
£'000
124
41
1
19		 2024
Total
£'000
124
44
1
19
3 185 188
Restricted
£'000
-
3
-
3		 Unrestricted
£'000
71
68
17		 2023
Total
£'000
71
71
17
156 159

Donated legal and other services

Linklaters LLP has provided pro bono legal advice to Toynbee Hall for many years. Over the past five years, their support has included assisting with the strategy and implementation of our estate regeneration project, advice on access to certain charity funds and the governance of our debt advice partnership as well as advice on property agreements. During 2023/24 the fair value of donated services from that firm is £19,315 (2022/23: £17,255) on a ‘cost to firm’ basis. This valuation methodology was developed by the London Benchmarking Group, a consortium of over 100 leading businesses whose approach to valuing community investment is endorsed and employed by indices including DJSI and GRI. ‘Cost to firm’ is defined by the group as ‘what it costs the firm to provide professional advice, not what the recipient would have had to paid had it been charged at commercial rates’. Linklaters followed that protocol in providing this evaluation.

Acknowledgments

The Charity is extremely grateful to all its supporters, without whom we could not achieve all that is outlined in this report. We are pleased to formally acknowledge here income from certain funders in accordance with their wishes.

Total Received
Funder grant in year Purpose
£'000 £'000
London Borough Tower Hamlets 93 47 Deliver cultural programme in conjunction with the local
community and Cultural Consortium
London Borough Tower Hamlets 90 40 For events and activities contained within the Petticoat Lane
Cultural Programme

b) Government funding

The charity has received funding from central and local government and government departments for the following projects:

following projects:
2024 2023
Government funding Project £'000 £'000
London Borough Tower Hamlets Mayors fund 17 15
London Borough Tower Hamlets LinkAge Plus 643 643
London Borough Tower Hamlets Research & Pilots 11
London Borough Tower Hamlets Wellbeing Centre 24 41
London Borough Tower Hamlets Wellbeing Centre - Warm Bank - 55
London Borough Tower Hamlets Heritage Activity Plan - 21
London Borough Tower Hamlets Heritage Action Zone 87 38
Greater London Authority Debt Free Advice - 145
City of London Corporation City Advice 214 200
Department for Work and Pensions Youth - Kickstart - 16

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Toynbee Hall Annual Report and Accounts 2023/24

Notes to the fnancial statements (continued)

For the year ended 31 March 2024

Analysis of expenditure
Fundraising and publicity
Costs of generating estates income
Costs of generating trading income
Costs of generating investment income
Charitable activities
Advice
Wellbeing
Education
Financial health
Provision of accommodation
Support costs
Governance costs
Total expenditure 2024		 Staff costs
(note 6)
Reallocation
of support
and
governance
costs
2024
Total
2023
Total
£'000
£'000
£'000
£'000
£'000
143
29
57
229
168
-
43
-
43
49
100
221
40
361
318
-
286
286
208
1,931
2,743
1,046
5,720
6,590
165
563
92
820
950
12
13
17
42
253
287
47
164
498
457
-
3
-
3
4
2,638
3,948
1,416
8,002
8,997
351
870
(1,221)
-
165
30
(195)
-
3,154
4,848
-
8,002
Direct costs
3,154 4,848 -

Detailed comparatives for the analysis of expenditure For the year ended 31 March 2023

Staff costs
(note 6)
£'000
Fundraising and publicity
86
Costs of generating estates income
-
Costs of generating trading income
97
Costs of generating investment income
-
Charitable activities
Advice
2,286
Wellbeing
314
Education
156
Financial Health
237
Provision of accommodation
-
3,176
Support costs
391
Governance costs
158
Total expenditure 2023
3,725
Analysis of support costs
Finance & Administration
IT Systems
Human Resources
Corp Communications
Estate costs		 Staff costs
(note 6)
£'000
Fundraising and publicity
86
Costs of generating estates income
-
Costs of generating trading income
97
Costs of generating investment income
-
Charitable activities
Advice
2,286
Wellbeing
314
Education
156
Financial Health
237
Provision of accommodation
-
3,176
Support costs
391
Governance costs
158
Total expenditure 2023
3,725
Analysis of support costs
Finance & Administration
IT Systems
Human Resources
Corp Communications
Estate costs		 Reallocation
of support
and
governance
costs
£'000
£'000
46
36
49
-
189
32
208
3,174
1,130
509
127
38
59
127
93
4
-
4,344
1,477
888
(1,279)
40
(198)
5,272
-
2024
£'000
277
142
95
40
667
1,221
Direct costs		 Reallocation
of support
and
governance
costs
£'000
£'000
46
36
49
-
189
32
208
3,174
1,130
509
127
38
59
127
93
4
-
4,344
1,477
888
(1,279)
40
(198)
5,272
-
2024
£'000
277
142
95
40
667
1,221
Direct costs		 2,023
£'000
168
49
318
208
6,590
950
253
457
4
3,176
391
158		 4,344
888
40		 1,477
(1,279)
(198)		 8,997
-
-
3,725 5,272 - 8,997
2024
£'000
277
142
95
40
667		 2023
£'000
321
170
127
41
620
1,221 1,279

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Toynbee Hall Annual Report and Accounts 2023/24

Notes to the financial statements (continued)

For the year ended 31 March 2024

5 Net income / (expenditure) for the year
This is stated after charging:
2024 2023
£'000 £'000
Depreciation 260 268
Interest payable 207 151
Provision for bad debts - 22
Operating lease rentals expense 15 61
Auditor's remuneration: audit fees
Toynbee Hall 25 24
Toynbee Hall Trading Limited 5 5
Auditor's remuneration: non-audit fees
Toynbee Hall 2 1
Toynbee Hall Trading Limited 1 1
Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined
Redundancy and termination costs		 2024
£'000
2,771
281
101
1		 2023
£'000
3,121
340
120
144
3,154 3,725

[OR]

The following number of employees received employee benefits (excluding employer's NI & pension costs) during the year between:

2024 2023
No. No.
£60,000 - £69,999 1 2
£70,000 - £79,999 2 -
£100,000 - £109,999 1 1

The total employee benefits, including employer's NI and pension contributions, of the key management personnel were £544k (2023: £327k). During the year, the Key Management Personnel comprised the Chief Executive, Director of Finance, Managing Director of DFA/Director of Advice Services, Head of People, Head of Communities and Social Change,Head of Operations and Commercial, and Head of Fundraising.

Service Period as key management personnel Gross Pay Employer Pension Total
£'000 £'000 £'000
CEO April 2023 to March 2024 100 3 103
Director of Finance April 2023 to March 2024 64 3 67
Head of DFA & Advice April 2023 to March 2024 79 3 82
Head of Research April 2023 to October 2023 41 4 45
Head of Communities and Social change January 2024 to March 2024 14 14
Head of HR April 2023 to June 2023 13 1 14
Head of HR September 2023 to March 2024 33 1 34
Head of Fundraising May 2023 to March 2024 52 2 54
Head of Commercial and Operations* April 2023 to March 2024 71 3 74

*jointly employed by Toynbee Hall Trading

Trustees did not receive any remuneration or any other benefits for the current or prior year. No Trusteees received any expenses during the year (2023:1 Trustee £84).

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Notes to the financial statements (continued)

For the year ended 31 March 2024

The average number of employees (head count based on number of staff employed) during the year was 89 (2023: 93).

The average monthly number of employees (full-time equivalent) during the year was as follows:

The average monthly number of employees (full-time equivalent) during the year was as follows:
Staff numbers
The average number of employees (head count based on number of staff employed)
during the year was 89 (2023: 93).
Advice
Toynbee Hall Trading Limited
Support costs
Fundraising and publicity
Wellbeing
Education
Financial health
Estates		 2024
No.
3
50
4
1
8
3
7
2		 2023
No.
2
60
7
3
5
2
7
2
78 88

8 Related party transactions

During the year the Charity charged £100k (2023:£100k) to Toynbee Hall Trading Limited in respect of licence fees for the use of its premises to carry out its activities. In addition, the Charity charged £68k (2023: £31k) mainly in respect of shared costs. Toynbee Hall Trading Limited invoiced £91k (2023: £24k) to the Charity for the provision of staff and venue hire in the year.

Our former Trustee Muna Yassin is connected to Rooted Finance Ltd (formerly Fair Money Advice) which is a Debt Free Advice partner organisation. The charity made payments amounting to £203k (2023: 228k) to Rooted Finance UK during the year.Our Trustee Stephen Burns is connected to Peabody which is a LINKAGE partner organisation.The charity made payments amounting to £55k (2023:£51k) to Peabody during the year. There was no balance outstanding to either of these related parties at the end of the financial year.

Aggregate donations to the Charity from related parties for 2024 were £850 (2023: £9,050). There were no other related party transactions for 2024 (2023: none).

9 Taxation

The Charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. Where appropriate, the Charity's trading subsidiary, Toynbee Hall Trading Limited, donates its profits to the parent charity such that it has no taxable profit.

10 Tangible fixed assets

The group

The group
Cost
Disposals in year
The Charity
Cost
Disposals in year
At the end of the year
Net book value
At the end of the year
At the start of the year
Additions in year
Adjustments in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
At the end of the year
Net book value
At the end of the year
At the start of the year
At the start of the year
Adjustments in year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
Depreciation		 Freehold land
& buildings
£'000
7,618
-
-
(2)
7,616
140
35
175
7,441
7,478
Freehold land
& buildings
£'000
7,618
-
-
(2)
7,616
140
35
175
7,441
7,478		 Fixtures, fittings & equipment
£'000
1,280
276
(7)
-		 Plant &
machinery
£'000
1,285
-
-
-		 Total
£'000
10,183
276
(7)
(2)
1,549 1,285 10,450
568
139		 384
86		 1,092
260
707 470 1,352
842 815 9,098
712 901 9,091
Fixtures, fittings & equipment
£'000
1,233
275
(7)
-		 Plant &
machinery
£'000
1,285
-
-
-		 Total
£'000
10,136
275
(7)
(2)
1,501 1,285 10,402
531
133		 383
87		 1,054
255
664 470 1,309
837 815 9,093
702 902 9,082

45

Docusign Envelope ID: E5C932CC-D3E7-46CE-B822-058E7146ECB0

Toynbee Hall Annual Report and Accounts 2023/24

Notes to the financial statements (continued)

For the year ended 31 March 2024

Notes to the fnancial statements (continued)
For the year ended 31 March 2024
11
Fair value at the start of the year
Additions in year
Revaluation during the year
Fair value at the end of the year
Investment properties		 The group
2024
£'000
6,225
-
-
6,225		 2023
£'000
7,268
-
(1,043)		 The charity
2024
£'000
6,225
-
-		 2023
£'000
7,268
-
(1,043)
6,225 6,225 6,225

Investment properties include a leasehold interest in a residential flat, which was acquired in September 2015. The property has been valued based on online property valuation data at £319k (2023: £319k).

Investment properties also include that part of the charity's land and buildings held for the purpose of generating an investment return.

In June 2021, a professional ‘desktop’ valuation was carried out by the same independent valuer appointed in 2019, resulting in a valuation in the region of £6,950k. The Trustees sought advice concerning this valuation, with regard to the state of the market as at 31 March 2024. They have concluded that there is no further movement since the 15% reducction of the valuation in 2023 and the valuation at 31 March 2024 is £5.9m (2023 - £5.9m). There were no additional costs of construction in the current year.

12
Listed investments
Fair value at the start of the year
Net gain on change in fair value
Fair value at the end of the year
Historic cost at the end of the year		 The group
2024
£'000
22
2
24
1		 2023
£'000
22
-		 The charity
2024
£'000
22
2		 2023
£'000
22
-
22 24 22
1 1 1

The charitable company owns the whole of the issued ordinary share capital of Toynbee Hall Trading Limited, a company registered in England (company no.: 07578738, registered office; 28 Commercial Street, London, E1 6LS). The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are donated to the charitable company. A summary of the results of the subsidiary is shown below:

Turnover
Cost of sales
Gross profit
Administrative expenses
Profit / (loss) for the financial year
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds
Debtors
Intercompany loan
Other debtors
Trade debtors
Prepayments and accrued Income
Amounts due from subsidiary		 The group
2024
£'000
371
152
2
525		 2023
£'000
551
604
-
-
1		 2024
£'000
446
(361)		 2023
£'000
463
(327)
85
(100)		 136
(94)
(15) 42
124
(163)		 116
(140)
(39) (24)
The charity
2024
£'000
271
144
74
-
2		 2023
£'000
268
1,068
43
-
1
1,156 491 1,380

46

Docusign Envelope ID: E5C932CC-D3E7-46CE-B822-058E7146ECB0

Toynbee Hall Annual Report and Accounts 2023/24

Notes to the financial statements (continued)

For the year ended 31 March 2024

Notes to the fnancial statements (continued)
For the year ended 31 March 2024
15
Bank loan
Trade creditors
16
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year
Creditors: amounts falling due within one year
Other creditors
Deferred income
Less than one year
Greater than one year
Accrued expenditure
Taxation and social security
Deferred income		 The group
2024
£'000
60
245
197
120
208
44
874
The group
2024
£'000
867
(186)
162
843
The group
2024
£'000
208
635
843		 2023
£'000
56
514
319
163
185
49		 The charity
2024
£'000
60
229
185
114
153
43		 2023
£'000
56
494
315
151
126
48
1,286 784 1,190
2023
£'000
1,095
(367)
139		 The charity
2024
£'000
806
(125)
107		 2023
£'000
1,034
(308)
80
867 788 806
2023
£'000
186
681		 The charity
2024
£'000
153
635		 2023
£'000
126
681
867 788 807

On 31 October 2014, in consideration of the payment by the lessee of the Toynbee Hall Studio and Theatre building of £500,000 and the transfer and surrender of another lease, the lessee entered into a new lease for the premises until June 2038. At the time, the deferred portion of the original lease premium was £546k giving rise to a total amount deferred at 31 March 2015 of £1.046m. At 31 March 2024, of the total balance of £1,095k (2023: £1,095k), £681k is in respect of the deferred income on the lease premium (2023: £727k).

Creditors: amounts falling due after one year
Tenant deposits for 28 CS
Bank loans
Deferred income (Note 16)
- amount falling due between one and two years
- amount falling due between two and five years
- more than five years		 The group
2024
£'000
635
208
65
250
2,269
3,427		 2023
£'000
681
208
60
314
2,265		 The charity
2024
£'000
635
208
65
250
2,269		 2023
£'000
681
208
60
314
2,265
3,528 3,427 3,528

The bank loans represent amounts drawn down , net of capitalised loan costs, in respect of loan facilities from CAF Bank Limited. Interest accrues on amounts outstanding under the Facility at the Fixed rate of 7.48% for the 5 years from the 19th October 2022.

After the 5-year Fixed rate has expired, the facility will revert to a variable rate and interest shall accrue on amounts outstanding under the Facility at the rate of the greater of:

(A) 2.70% per annum above the Bank of England base rate from time to time; and

(B) 2.70% per annum.

Both loans are secured by a fixed charge over the charity's property at 28 Commercial Street and a floating charge over all the charity's assets. The loans are being paid off in equal monthly instalments and the details are:

Initial loan value Final repayment Interest Minimum interest rate
date rate above
base rate
£
2,500,000 31/10/2043 2.5% 2.5%
500,000 30/06/2044 2.7% 2.7%

47

Docusign Envelope ID: E5C932CC-D3E7-46CE-B822-058E7146ECB0

Toynbee Hall Annual Report and Accounts 2023/24

Notes to the financial statements (continued)

For the year ended 31 March 2024

18
19		 As at 31 March 2024
Tangible fixed assets
Investment properties
Investments
Net current assets
Long term liabilities
Net assets at 31 March 2024
As at 31 March 2023
Tangible fixed assets
Investment properties
Investments
Net current assets
Long term liabilities
Net assets at 31 March 2023
Total restricted funds
Total funds
Restricted funds:
Financial health (including donated services)
Education
Advice (excluding Debt Free London)
Wellbeing
Wilson Memorial Fund
Analysis of group net assets between funds
Debt Free Advice
Unrestricted funds:
Designated fund: Property Fund
Fair value reserve
General funds
Total unrestricted funds
Movements in funds		 At the start
of the year
£'000
65
1
28
48		 Restricted funds
£'000
-
-
-
257
-		 Designated
funds
£'000
8,518
5,466
(1)
-
(2,588)
11,395
Designated
funds
£'000
8,648
5,467
-
(2,639)
11,476
Expenditure
£'000
(217)
(42)
(389)
(820)
(1,468)
(5,021)
(6,489)
-
-
(1,513)
(1,513)
(8,002)		 General funds
£'000
580
-
-
259
(839)		 Fair value
reserve
£'000
-
759
25
-
-		 Total funds
£'000
9,098
6,225
24
516
(3,427)
257 - 784 12,436
Restricted funds
£'000
-
-
401
-		 General funds
£'000
443
(1)
(1)
448
(889)		 Fair value
reserve
£'000
-
759
23
-
-		 Total funds
£'000
9,091
6,225
22
849
(3,528)
401 - 782 12,659
Income
£'000
109
88
382
770
3		 Transfer of fundraising cost
£'000
-
-
-
-
-		 Other
transfers
£'000
68
(46)
6
55		 At the end of
the year
£'000
25
1
(1)
33
51
142
259		 1,352
4,785		 -
-		 83
125		 109
148
401 6,137 - 208 257
11,477
782
(1)		 -
2
1,640		 -
-		 (82)
(126)		 11,395
784
-
12,258 1,642 - (208) 12,179
12,659 7,779 - - 12,436

The trustees’ report sets out the reasons for a number of restricted funds running at a deficit for the year. As a result, it has been necessary to transfer reserves of £208k

Detailed comparatives for the movements in funds - for the year ended 31 March 2023

At the start Other At the end of
of the year Income Expenditure Transfer of fundraising cost transfers the year
£'000 £'000 £'000 £'000 £'000 £'000
Restricted funds:
Financial health (including donated services) 72 192 (410) - 211 65
Education 30 142 (253) - 82 1
Advice (excluding Debt Free Advice) 281 (410) - 129
Wellbeing 37 817 (950) 124 28
Wilson Memorial Fund 45 3 - - - 48
184 1,435 (2,023) 546 142
Debt Free Advice (formerly Debt Free 344 5,601 (5,887) - 201 259
Total restricted funds 528 7,036 (7,910) 747 401
Unrestricted funds:
Designated fund: Property Fund 11,777 - - - (301) 11,477
Fair value reserve 1,823 (1,041) - - 782
General funds - 1,531 (1,087) (446) (1)
Total unrestricted funds 13,600 490 (1,087) (747) 12,258
Total funds 14,128 7,526 (8,997) - - 12,659

48

Docusign Envelope ID: E5C932CC-D3E7-46CE-B822-058E7146ECB0

Toynbee Hall Annual Report and Accounts 2023/24

Notes to the financial statements (continued)

For the year ended 31 March 2024

Purposes of restricted funds: Financial health Funds for activities to improve financial health, including training services and research. The Emotional support for young people project has also been included under this heading.

Education

Education funds are for projects working with young people in East London and heritage programmes focusing on the history of the organisation and local area.

Advice (excluding Debt Free Advice) Funds for advice services include the Free Legal Advice Centre, a drop-in service provided by pro-bono lawyers and other professionals; Advice in the Community, a specialist Welfare Benefits advice service; and advice services for people affected by cancer delivered in partnership with Macmillan Cancer Support. The Money Mentors programme provided the support of everyday money management and was funded by JP Morgan, Big Lottery Funding, NESTA and Columbia Threadneedle Foundation.

Wellbeing

Funds for projects focussed on vulnerable adults which include: LinkAge Plus, Wellbeing in Tower Hamlets, City Outreach & Older People Services. Wilson Memorial Fund

This fund was originally set up to support Residential Volunteering at Toynbee Hall.

Property Fund

Whist our historic site was developed, funds were held in the Restricted Redevelopment Fund. Funding came from the Heritage Lottery Fund, which awarded Toynbee Hall with a five year grant of £1,709k for the redevelopment of the historic Halls building; a grant of £450k from the Big Lottery Fund ('BLF') and an allocation from the Patricia Singleton legacy of £455k both for the Wellbeing Centre, which occupies the ground floor of the new building at 28 Commercial Street. There is a BLF grant obligation on the charity to operate the Wellbeing Centre for a period of 20 years.

Following the completion of the redevelopment, the Restricted Redevelopment Fund was transferred to unrestricted designated funds and was renamed as the Property Fund.

Debt Free Advice (formerly Debt Free London)

Debt Free Advice is funded by the Money and Pensions Service. This is a debt advice programme for which Toynbee Hall are one of the lead partners. A substantial proportion of funds received from MaPS by Toynbee Hall are passed down to other organisations to assist with the delivery of the Project.

Purposes of designated fund

The Restricted Redevelopment Fund had been established to set aside funds for the continued costs associated with the completion of the estates strategy. Now that the buildings are back in use, the balance of the Restricted Redevelopment Fund was transferred to the Property Fund as a designated fund in the prior year. As the value of unrestricted funds is lower than the value of land and buildings, all unrestricted funds have been designated as the Property Fund leaving the free reserves of the charity with a £nil balance.

This is a revaluation reserve for the unrealised gain on the investments and investment properties.

Fair value reserve

This is a revalution reserve for the unrealised gain on the investments and investment properties

20 Reconciliation of net income to net cash flow from operating activities

Reconciliation of net income to net cash flow from operating activities
20
Net income/ (expenditure) for the reporting period
Depreciation charges
Losses / (gains) on investments
Dividends, interest and rent from investments
Amortisation of bank loan fees
Interest payable
Decrease / (increase) in debtors
(Decrease) / increase in creditors
Net cash used in operating activities
Cash at bank and in hand
Total cash and cash equivalents
Cash and cash equivalents
Cash
Cash equivalents
Borrowings
Loan falling due within one year
Loan falling due after more than one year
Total
Analysis of changes in net debt
Analysis of cash and cash equivalents
22
21		 At 1 April 2023
£
744
-
744
(56)
(2,640)
(2,696)
(1,952)		 At 1 April 2023
£'000
744		 2024
£'000
(223)
260
(2)
(439)
5
207
631
(216)		 2023
£'000
(1,469)
268
1,043
(446)
5
151
(235)
(210)
223 (893)
Cash flows
£'000
121		 At 31 March
£'000
865
744 121 865
Cash flows
£
121
-		 Other non-
cash
£
-
-		 At 31 March
2024
£
865
-
121
(4)
67		 (9) 865
(60)
(2,582)
63 (9) (2,642)
184 (9) (1,777)

49

Docusign Envelope ID: E5C932CC-D3E7-46CE-B822-058E7146ECB0

Toynbee Hall Annual Report and Accounts 2023/24

Notes to the financial statements (continued)

For the year ended 31 March 2024

Notes to the fnancial statements (continued)
For the year ended 31 March 2024		 Notes to the fnancial statements (continued)
For the year ended 31 March 2024		 Notes to the fnancial statements (continued)
For the year ended 31 March 2024
2024
2023
£'000
£'000
3
15
1
3
4
18
2024
2023
£'000
£'000
450
503
230
670
680
1,173
42
One to five years
Equipment
Less than one year
One to five years
The group and charity have total future lease rentals receivable under non-cancellable operating leases for each of the following periods:
Investment property
Less than one year
Operating lease commitments
The group and charity have total future minimum lease payments under non-cancellable operating leases as follows for each of the following periods:
23
4 18
2024
£'000
450
230
Investme		 2023
£'000
503
670
nt property
680 1,173
42

24 Post balance sheet events

There were no post balance sheet events.

25 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

50

Docusign Envelope ID: E5C932CC-D3E7-46CE-B822-058E7146ECB0

Toynbee Hall Annual Report and Accounts 2023/24

Reference and Administrative Information

For the year ended 31 March 2023 Company number: 20080 Charity number : 211850 Registered office: 28 Commercial Street, London E1 6LS

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Stephen Burns Ali Hussein Husna Mortuza Dee O’Connell (retired as Trustee 13 December 2023) Laura Ratling Maysam Rizvi (retired as Trustee 13 December 2023) Tahera Rouf (retired as Trustee on 21 June 2023) Sam Thomas Gemma Woznicki (retired as Trustee on 21 June 2023) Muna Yassin (retired as Trustee on 13 March 2024)

Yu-Shan Chiu appointed 13 December 2023 Alice Gac appointed 13 December 2023 Thomas Nowacki appointed 13 December 2023

Bankers:

CAF Bank Limited 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ

National Westminster Bank Plc, Aldgate Branch, 130 Whitechapel High Street, London, E1 7PS

Auditors:

Haysmacintyre LLP, 10 Queen Street Place, London, EC4R 1AG

51

Docusign Envelope ID: E5C932CC-D3E7-46CE-B822-058E7146ECB0

Help us create a fairer and happier East London

Toynbee Hall 28 Commercial Street London, E1 6LS

Tel: +44 (0)20 7247 6943

www.toynbeehall.org.uk

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Charity Number. 211850. A company limited by guarantee. Company Number. 00020080 England & Wales