Trustees’ Report ~~and Financ~~ ial Statements for the year ended 31 December 2021
The United Society, registered charity number 234518. Incorporated under Royal Charter, 1701.
Contents
Trustees, Directors and Advisors ............................ 3 A message from the Chair of Trustees ................... 4 A message from the General Secretary ................. 5 Future plans ........................................................... 6 Report of the Global Relations Team ......................7 Report of the Mission Engagement Team .............13 Communications and Fundraising .........................15 Report of the Trustees and Members ...................16 Independent Auditors’ Report ..............................23 Statement of Financial Activities ...........................25 Balance Sheet ...................................................... 27 Cash flow statement ............................................. 28 Accounting policies ............................................... 29 Relaunching Partners in Mission ..........................42
All images USPG copyright unless otherwise stated. Cover image: Bollobhpur Mission Hospital, Bangladesh.
Vision
Mission
For the churches of the Anglican Communion to experience a deeper fellowship together in Christ and be sources of transformation within their communities and beyond.
To partner churches across the Anglican Communion in rethinking mission, energising church and community and championing justice.
USPG has slightly tweaked its operations, with three teams in place from mid-2022: Global Mission, Communications and Engagement, and Finance and Operations led by Dr Eve Parker, Dr Nigel Varndell and Vijay Christian, respectively.
Dr Nigel Varndell Communications and Engagement
Vijay Christian Finance and Operations
Dr Eve Parker Global Mission
2 ANNUAL REPORT OF THE USPG Trustees
Trustees, DIRECTORS AND Advisors
President
The Most Rev’d and Rt Hon Justin Welby, Archbishop of Canterbury
Trustees
Mr John Neilson (Chair) +
The Rev’d Canon Dr Daphne Green (Vice Chair) +
Mr Richard Barrett* (Chair of the Finance and Audit Committee)
(Term ended 20 July 2021)
Mr Martin Canning*
Term ended 20 July 2021
The Rev’d Canon Professor Patrick Comerford Term ended 20 July 2021
Ms Sheila Cook
Mr Charles Cowling* (Chair of the Finance and Audit Committee)
Appointed 25 September 2021
Ms Catriona Duffy*
The Rt Rev’d Dr Jonathan Frost Resigned 21 October 2021
Mr Mathen Thomas* Appointed 25 September 2021
The Rt Rev’d Dr Joanna Penberthy
The Rev’d Christopher Rogers*
The Rev’d Trevor Sargent Co-opted 17 November 2021
General Secretary
The Rev’d Dr Duncan Dormor
Directors
The Rev’d Dr Duncan Dormor, General Secretary and Chief Executive
Mr Ben Kuevidjen,
Director: Finance and Resources, Company Secretary and Deputy General Secretary (left July 2021)
Mrs Rachel Parry, Director: Global Relations (left January 2022)
The Rev’d Canon Richard Bartlett, Director: Mission Engagement (left March 2022)
Ms Linda MacKenzie MBE, Director: Media and Communications (left July 2021)
Dr Eve Parker, Director of Global Mission (Joined May 2022)
Dr Nigel Varndell,
Director of Communication and Engagement
(Joined March 2022)
Mr Vijay Christian, Director of Finance and Operations (Joined June 2022)
Address
5 Trinity Street, London SE1 1DB
Auditors
Knox Cropper Chartered Accountants, 65 Leadenhall Street, London EC3A 2AD
Solicitors
Royds Withy King LLP, 65 Carter Lane, London EC4V 5HF
Principal bankers
Barclays Bank Plc, 1 Churchill Place, London E14 5HP
Investment managers
CCLA Investment Management Ltd, Senator House, 85 Queen Victoria Street, London EC2V 6DZ
Savills Investment Management LLP, 33 Margaret Street, London W1G 0JD
Property Advisors
Ingleby Trice, 10 Foster Lane, London EC2V 6HR
The Rev’d Dr Carlton Turner
Mr Martin Uden +
Charity registration
234518
Ms Catherine Wickens
- Members of the Finance and Audit Committee + Members of Remuneration and Personnel Policy Committee
ANNUAL REPORT OF THE USPG TRUSTEES
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A message from the Chair of Trustees
MR JOHN NEILSON
After a second year of working in new ways to nurture our worldwide partnerships across the Anglican Church, USPG feels to be in an exciting place of new beginnings. Three new Directors have joined USPG’s staff to work with General Secretary Duncan Dormor and the Trustees in driving forward our work in innovative directions. Despite the constraints of Covid in 2021 we have connected digitally around the world in many ways, not least through an excellent continuing programme of webinars. All USPG supporters are encouraged to participate in these, wherever they are worldwide. The end of November saw the first USPG Communion Day of Prayer, which demonstrated so much of the richness of our life as Anglicans around the globe. I keep going back to different parts of the 48
half hour segments online and learning more. I would encourage you to do so as well. 2021 also saw a considerable strengthening of USPG’s links with theological colleges, both in the UK and internationally. The arrival of the Rev’d Dr Peniel Rajkumar as USPG’s Global Theologian has increased our capacity and impact in this area. Earlier in 2021 we organised a challenging webinar for Bray Day or Founders’ Day examining how pastoral and spiritual care can be given remotely. Some of our global partners have inevitably found it more challenging to deliver the programmes we had agreed with them, but this enabled us to respond to emerging requests from partners, especially in the area of vaccine hesitancy. At the end of the year we were saddened by the death of Archbishop Desmond Tutu, but rejoiced that he had been such a good friend to USPG.
I would like to thank all of USPG’s staff and Trustees for their hard work and commitment this year. We thanked in particular three Trustees whose terms completed in 2021, and who had all contributed much in different ways: Canon Patrick Comerford, Richard Barrett and Martin Canning.
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Tea pickers in Sri Lanka, helped by our livelihood support programme
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organised three regular appeals in 2021, and an emergency appeal for medical assistance at the height of the Covid pandemic in India. These appeals illustrate very well the range of programme work which USPG supports, involving climate change education in South India, reducing HIV stigma in Zimbabwe and livelihood support in rural communities in Sri Lanka. I am delighted to commend the breadth of USPG’s work to you, and to seek your prayers and support for it.
We also said farewell in October to the Rt Rev’d Dr Jonathan Frost, whose wise counsel has been invaluable since 2016, and wished him well as he prepared to be installed as Bishop of Portsmouth. In their places as Trustees we have been delighted to welcome the Rev’d Trevor Sargent, Charles Cowling and Mathen Thomas.
A special thanks to all of our supporters whose giving and prayers enable USPG to undertake its work. Our dynamic communications and engagement team
JOHN NEILSON
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A MESSAGE FROM THE GENERAL SECRETARY
opportunities for learning. This was clearly the case for the USPG online conference, which provided a fascinating window on the world, it highlighted how the churches were responding to Covid, but also provided inspiring and challenging words on the themes of racial justice and the environmental crisis. As the world looked to COP26 in Glasgow, we were privileged to have speakers from the Amazon, Mozambique, Bangladesh and Norfolk coming together to explore their experiences of the church responding creatively to the climate crisis.
The Rev’d Dr Duncan Dormor
As the pandemic has continued, we have come to appreciate ever more deeply the importance of compassion and care, the connections between churches and across cultures, and of creativity in the Christian life.
and for indigenous peoples, especially in the Philippines and Brazil. The Let My People Go programme of the Church of North India and the Abundant Life programme of the Iglesia Filipina Independiente (IFI) in the Philippines, among others, have sought to bring transforming justice to people’s everyday lives.
Sharing experiences of mission and outreach during Covid-19 has been at the heart of so many conversations – both informal and formal; in webinars, research and publications. Responding to the direct challenge to health has been a priority for many churches with those in Malawi, Zimbabwe, Zambia and Tanzania taking a lead in addressing the challenges of vaccine hesitancy through health information campaigns within their communities. Alongside such campaigns, USPG launched a Covid-19 Rapid Response appeal in order to supply medical necessities at the height of the deadly surge in infections in India in April.
The growth in our virtual communication has helped us all to make better connections. As a result, there have been tremendous
2021 also saw the Anglican Communion grow – with the new Portuguese-speaking province
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Responding to Covid-19 in Zambia by providing medical supplies to local churches
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The pandemic has exacerbated the situation for many more vulnerable groups within society, and the work of partner churches in Central Africa involved in supporting girl’s education and addressing gender-based violence has been critical during this time. The pandemic has increased the dangers for those at risk of trafficking in North India
of Igreja Anglicana de Moçambique e Angola (IAMA) inaugurated online. As a longstanding friend, USPG is deeply committed to walking with and supporting the work of this new province.
We were also delighted with the enthusiasm with which churches around the world embraced the idea of a 24-hour online Communion Day of Prayer on St Andrew’s Day.
In 2021 we significantly developed our fundraising capacity, building strong foundations for future growth through significant improvements in systems and processes. There were three successful fundraising appeals for Lent, Harvest and Christmas – alongside emergency appeals. This has positioned us well in 2022 to assist the Diocese in Europe with its Ukraine appeal.
At USPG, we have been humbled and inspired in equal measure by the ways in which the churches across the Anglican Communion have reached out to support the most marginalised within their communities at this time. We are also deeply grateful for all the prayers, solidarity and support of volunteers, staff and trustees and the wonderful generosity of all our supporters.
DUNCAN DORMOR
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Future plans
USPG has re-structured its operations with three teams in place from mid-2022: Global Mission, Communications and Engagement, and Finance and Operations led by Dr Eve Parker, Dr Nigel Varndell and Vijay Christian, respectively.
USPG re-affirms its commitment to the three high level strategic priorities of Rethinking Mission, Energising Church and Community and Championing Justice and intends to realise these through the following six priority areas outlined in the previous Annual Report and below. For each priority area, a key activity in 2022 is identified:
Rethinking Mission
Energising Church and Community
Championing justice
Theological Education – We will prioritise models of theological education and leadership training that are contextual, participative and seek to build intercultural understanding and deepen mutual understanding and fellowship.
People in mission – We will prioritise the movement of people across the Communion in ways that bring transformation to both the individuals and their receiving communities. We will disseminate good practice and deepen the relationships between provinces.
Engaging with History – We will engage in research and reflection on USPG’s historical engagement with churches to resource discussions within the Church of England and the Church of the Province of the West Indies about the history and legacy of slavery.
A major summit on the future of Theological Education in Africa to be held in Botswana (November 2022).
Reviewing our current peoples’ programmes and developing new programmes
The appointment of a PhD student to work in the USPG Archives on the Arts and Humanities Research Council funded project, Institution and Archive: Global Entanglements, Organizational Practice and Storytelling from September 2022 and to resource deeper engagement with USPG history.
Mission Engagement – We will prioritise an engagement within the churches of Britain and Ireland which seeks to deepen an understanding of the church and mission in a global context
Sharing innovative practice – We will engage in mutual partnership with churches and help to share innovative practice through the promotion of key programmes, centres of learning and multilateral engagement.
Increasing the number of Theological Education Institutions (TEIs) in the UK with which USPG is actively engaged
Promoting Ecological Justice – We will work with churches worldwide to promote values and practices that build a better future for all.
Developing connections and mutual learning on anti-human trafficking work across South Asia and the Middle East in preparation for USPG’s International Consultation in Dar es Salaam in January 2023.
To facilitate the development of Climate Change knowledge for a sustainable future within a number of churches within Africa.
We continue to live in highly uncertain times, and the long-term impact of the pandemic on the structures, institutions and churches of the Anglican Communion remains unknown. However, USPG remains focussed on working closely alongside partner churches and responding effectively to support their mission and long-term sustainability.
Our Strategic Priorities
Rethinking Mission:
We bring people together from different parts of the global church in mutually enriching conversation and profound encounters, to increase understanding and deepen our discipleship as inter-cultural Christians.
Do not be conformed to this world, but be transformed by the renewing of your minds, so that you may discern what is the will of God. Romans 12:2
Energising Church and Community:
We make connections between churches of the Anglican Communion to deepen bonds of affection and learn from each other in rich exchange. We promote education and leadership and strengthen the unity and capacity of the Anglican Church.
I came that they may have life and have it abundantly. John 10:10
Championing Justice:
We accompany Anglican churches across the world as they form communities of hope and resistance in the struggle against injustices associated with climate change, migration, gender, the human rights of indigenous people and inter-religious living.
But strive first for the kingdom of God and his righteousness. Matthew 6:33
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Global Mission
Introduction
During this second year of the pandemic, USPG has continued to respond to the needs of partners, built upon the opportunities provided by increased virtual engagement and developed its work in certain key areas.
St Peter and St Paul’s Cathedral in Chipili, Zambia ANNUAL REPORT OF THE USPG TRUSTEES 7
Global Mission
The pandemic has stimulated new ways of working and collaboration
During this second year of the pandemic, USPG has continued to respond to
the Philippines, as well as from Archbishops Michael Lewis and Hosam Naoum of the Province of Jerusalem and the Middle East alongside their colleagues. Virtual contact has also allowed USPG to offer regular solidarity and prayer with the Church in Myanmar, following the unexpected coup on 1 February. We have also commemorated key dates like the 2nd anniversary of Easter Day attacks in Sri Lanka. On 21 April, USPG Father Obed, the Gambia staff gathered on Zoom with partners in Sri Lanka as well as members of the Sri Lankan Diaspora community and USPG supporters to mark the occasion.
the needs of partners, built upon the opportunities provided by increased virtual engagement and developed its work in certain key areas.
The pandemic has stimulated new ways of working and collaboration. More regular roundtables, networks and learning reviews of programmes with global partners have been introduced. In addition, we have been greatly privileged to have had virtual visits to USPG staff meetings, from Prime Bishop Joel A. Pachao, and other members of the senior leadership of the Episcopal Church in
Anglican Communion Day of Prayer
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Rev’d Thanduxolo Noketshe, participant in the Exchanging Places programme, and his family in St Kitts
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The most innovative development was the initiation of the Anglican Communion Day of Prayer on 30 November. Reviving the historic tradition of St Andrews Day being a day of prayer for missions, it provided 24 hours’ livestream of prayer and worship focusing on all Provinces of the Anglican Communion. It featured 48 segments of online worship with 36 bespoke video contributions highlighting the breadth and diversity of Church life across the Communion. The event had around 500 participants from across the Communion with other Churches and communities organising local watch-parties or companion prayer events. It provided a very tangible expression of unity and solidarity for the Anglican Communion and proved a beautiful and symbolic way to conclude the liturgical year.
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Energising Church and Community
Exchanging Places continues to provide opportunities for shared participation in mission
Throughout the year, USPG has sought to respond to needs within partner churches as they have emerged. Within a number of churches vaccine hesitancy has been a significant concern. Church leaders in Tanzania, Malawi, Zambia, and Zimbabwe sought to respond to this by coordinating a powerful vaccination uptake promotion campaign with high impact, supported by advocacy, literacy and communication materials, social media, radio and television. Churches were employed as campaign hubs, and church leaders instilled trust in many people, encouraging them to take the vaccine. This reduced disinformation, increased vaccine use, and strengthened the relationship between vaccination and testing.
At the height of the surge in infections in India, USPG was able to support the emergency medical response of the Church in North India, raising £36K in a special appeal for India Covid response. During the year solidarity grants of £4,000 and £3,000 were also made to the Diocese of Jerusalem and the Church in Myanmar to support their responses to the crisis in Gaza and the Covid pandemic respectively.
Despite the restrictions on movement, the Exchanging Places programme has continued to provide invaluable opportunities for shared participation in mission and as well as build up local capacities and revitalise mission and relationships across Provinces. The Diocese in Europe invited Fr Virgilio Fernandez Jr of the Iglesias Filipina Independiente to serve at St John’s Church Casablanca, Morocco to strengthen and develop a ministry to
Filipino migrants. Similarly, the remarkable impact of the service of Rev Justice Apo Tetteh from Diocese of Accra, Ghana in the Diocese of Windward Islands has encouraged the Diocese of North East Caribbean and Aruba in the Church of the Province of the West Indies to invite Rev’d Thanduxolo Noketshe from the Diocese of Port Elizabeth, Anglican Church of South Africa to serve in St Kitts. These two appointments are part of a wider plan to develop more engagements between provinces in Africa and the West Indies through shared participation in mission.
Online partner accompaniment through the year was very successful and productive. One excellent example has been the USPGfacilitated connection between the Province
of Jerusalem and the Middle East and the Diocese of Durgapur, Church of North India, through a webinar on human trafficking. As a result of this collaboration, the Diocese of Durgapur has developed an initiative of cross-border engagement with the Church of Bangladesh and other Dioceses in North India in the next phase of their Anti-Human Trafficking programme.
Another exciting development this year was the delayed launch of a two-year pilot twinning 10 schools from the Oxford Diocesan Board for Schools with 10 schools from the Green Schools of the Church of South India, launched on 19th January 2021. This pilot began well, with much enthusiasm from children and staff from the schools, although the subsequent pattern of pandemic restrictions in both India and Britain has proved challenging.
Remarkably, many of the programmes of partner churches have continued to be highly effective in the midst of the pandemic: Two examples from many are the HIV programme in Zimbabwe, already in its second year – giving hope, fellowship, livelihoods, and reducing stigma and discrimination for nearly 12,000 HIV-positive persons – and the Strategic Development Programme of the Church of Bangladesh, which has enabled the Church to be financially self-sufficient and in a position where they can now offer support to other church partners like the Diocese in Europe. In addition, USPG has expressed its solidarity with partners through grants made to the Diocese of Colombo in January towards their flood response to 218 affected families in Batticaloa district of Sri Lanka, and in May 2021 towards the Gaza appeal of Archbishop Hosam Naoum.
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Rethinking Mission
Drawing together authors from 22 Anglican Provinces, Sustainable Preaching is a fantastic resource
Revised Common Lectionary focusing on care for creation and sustainability under Sustainable Preaching . This successfully draws together 92 authors from 22 Anglican Provinces of the Anglican Communion. This is a fantastic resource and an important development in terms of globally accessible, practical theology. You can find it here: www.sustainable-preaching.org.
The theme of pastoral care has become increasingly prominent in the contemporary life of USPG due to the Covid 19 pandemic. USPG hosted a webinar on ‘The Churches and Covid 19: Voices from the front line’ to explore how pastoral caregivers in front line ministries were feeling a year into the pandemic. A report produced by Dr Jo Sadgrove was also published – Pastoral care across space and time.
The work of the Asian Theological Academy continued to thrive and develop in 2021 with the beginning of a certificated programme in Contextual Theology delivered online in partnership with the Asian Forum of Theological Movements and St Andrew’s Theological Seminary, Philippines. The programme, which covers nine courses, has been attended by 30 theologians from 15 countries across Asia and the Pacific. USPG has also been involved in working with the Anglican Church in Korea in enabling two PhD students to develop expertise as theological educators.
In addition to working alongside partner churches, USPG staff, with others, have led work in three areas that having contributed to our aim of rethinking mission – through engagement with mission theology especially within Britain and Ireland; on a project on pastoral care including reflection on how the churches have responded to the challenge of Covid; and, on the USPG archive in relation to the legacies of slavery.
Alongside the Anglican Communion Environmental Network and other Anglican agencies, USPG has successfully produced a three-year online companion to the
The appointment of a Global Theologian, Canon Dr Peniel Rajkumar, who joined USPG in July from the World Council of Churches, has significantly increased our capacity for communicating directly with a range of students including pioneering ministers and ordinands on issues of global mission and Anglicanism. His appointment as an Associate Tutor at Ripon College Cuddesdon, where he teaches a course on Missional Theology in Global Contexts, strengthens significantly USPG’s engagement with Theological Education in the UK. Peniel has also lectured within a range of Theological Education Institutions including St. Padarn’s institute, Cardiff, Queen’s Foundation for Theological Education, Birmingham, Westcott House, Cambridge, Cranmer Hall, Durham and the Church Mission Society. In addition, he has spoken at events organized by Churches Together in England (CTE), the British and Irish Association of Practical Theology, York Minster and the European Academy of Religion. We are delighted he has been appointed as an Honorary Canon of both York Minister and Worcester Cathedral.
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Past and Present: Pastoral Care across space and time – Bray Day (Founders’ day)
Historic injustice and the slave-holding history of USPG was the central focus of a joint webinar with SPCK to celebrate our shared Founders’ Day (15 February) at which we launched an online archive. Over 300 supporters joined us online as Bishop Rowan Williams reflected on research from our archives. Our keynote speaker was joined by the Rev’d Dr Carlton Turner, USPG Trustee, the Rt Rev’d Rose Hudson-Wilkin, Bishop of Dover, and the Rev’d Professor Veront Satchell of the University of the West Indies, for a lively and profound discussion.
The online archive htp://emlo-portal.bodleian.ox.ac. uk/exhibiton/uspg was one of the outcomes of a wideranging academic project, Pastoral Care, Literary Cure and Religious Dissent: Zones of Freedom in the Britsh Atlantc - (c.1630 1720), funded by UK Research and Innovation. A collaboration between Dr Alison Searle and Dr Emily Vine of the University of Leeds and USPG’s Dr Jo Sadgrove, it explored a variety of dimensions of SPG’s early history. One of those was its slave-holding history associated with the Codrington Plantation, Barbados. This work also featured on a BBC Radio 3 programme on ‘Archives in the Culture Wars’ www.bbc.co.uk/ programmes/m000wslk
The project included a ‘partnership’ section of the exhibition website with writing from a wide range of contributors including archivists, scholars and Caribbean voices.
In addition to seeking to learn from the past, the project also considered the issues of pastoral care across time and space in the context of the Covid 19 pandemic. Later in the year, USPG hosted a webinar on ‘The Churches and Covid 19: Voices from the front line’ to explore how pastoral caregivers in front line ministries were feeling a year into the pandemic. A report produced by Dr Jo Sadgrove was also published – Pastoral care across space and time bit.ly/CC19report.
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Championing Justice
We have witnessed the extraordinary resilience of churches and communities
Championing justice is a central aspect of the mission of partner churches and USPG is committed to working alongside churches, whose programmes pursue gender justice, ecological justice and concern for marginalised groups within societies, including refugees.
Women and their families are
disproportionately affected by inequality, discrimination, and gender-based violence in Africa. In April 2021, USPG, in collaboration with the Anglican Council in Zambia, launched the Transformative Gender Justice programme in the Lusaka diocese, with the goal of raising the voices of women who have been victims of gender-based violence and by providing supportive services it also offers transformational advocacy training to church leaders to combat gender-based violence – as well as promote equitable leadership and empowerment in church and community. In neighbouring Malawi, the Anglican Council is campaigning for girls’ right to education. Education packages, advocacy, pastoral care, and mentorship are all used to help girls stay in school – an initiative of even greater urgency during this time of heightened economic pressure during the pandemic.
COP 26 in Glasgow was a significant focus for USPG engagement with ecological justice and the climate crisis. USPG continued its partnership with UK climate communication and lobbying specialists Hope for the Future to help Make COP26 Count in the lead up to the event in November supporting the world of their Faith Outreach Officer, who connected with 118 Churches, led 7 events and 4 training sessions with 300 participants. In addition, the work of Hope for the Future stimulated 28 meetings with MPs with 24
additional churches sending letters and the participation of a further 6 MPs at interfaith events. MPs submitted 7 written questions to parliament as a result of the programme, and an Early Day Motion was tabled. USPG also participated in the National Climate Sunday on 5 September live-streamed from
(CNI) Synodical Board of Social Services that offers support to Dalit communities and the Women Helpline programme of Delhi Brotherhood Society. In addition, a statement was submitted to UNPFII (United Nations Permanent Forum for Indigenous Issues) on 8th April. This statement, on behalf of our partner IFI, spoke about human rights abuse by the Philippine Government and raised awareness of this at a global level.
And finally…
Engagement with friends in partner churches has always had a strong pastoral dimension and we, especially the staff in the global team, are deeply privileged at USPG, to share in their joys and sorrows. Sadly, however, in the last two years, marked by loss and ongoing uncertainty, there has been much sharing of sorrow and grief and many friends across the world have died. In the midst of such sorrow, we have witnessed the extraordinary resilience of churches and communities as well as their compassionate outreach and care of others.
Glasgow Cathedral, watched by around 3000 people across Britain and Ireland, with Communion Wide Advisory Group Vice-Chair Esther Kazimani-Pale presenting a reading. The event also shared the USPG Lord’s Prayer Reflection.
USPG accompanied programmes advocating for the human rights of indigenous communities through the Abundant Life programme of Iglesia Filipina Independiente (IFI), the Anti-Human Trafficking programme of Durgapur Diocese, the Let My People Go programme of the Church of North India
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Members of the Transformative Gender Justice programme in Zambia
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Communications and Engagement
2021 was a year of consolidation focused on maintaining and improving our print publications whilst putting more of an emphasis on digital communications. Following the launch of Koinonia in 2020, this year saw the publication of four issues each focused on a different theme; young people in the Church, gender justice, the role of the laity in the Church and, finally, climate change. We’ve also continued to produce a quarterly prayer diary, and towards the end of the year made this content accessible online.
We’ve also been able to revise and reproduce A Heart for Mission , a very popular study guide focused on the Church in Myanmar.
In 2021, we worked tirelessly to source news stories from across the world church. USPG’s work exploring our archives was featured in the BBC Radio 3 programme, Archives in the Culture Wars , and the organisation’s responses to climate change were featured in the Church Times.
Finally, we have begun to publish blogs from clergy and laity across the world church. We have seen contributions from young people in Uganda and the UK, theologians from New Zealand and the Caribbean, and reflections from our friends at the Anglican Communion Office and Churches Together in Britain and Ireland. The blogs focused on topics such as COP26, racial justice and rethinking mission. It is an exciting development that we will be taking forward in 2022.
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Engaging Supporters
Online engagement opened up our events to a global audience
Inevitably our engagement with the individual supporters and the churches was predominantly online. While not providing the benefits of face-to-face encounters, it had the advantage of opening up our regular events to a global audience enriching the experience for all.
The season of Lent gave space for the USPG Course For such a time as this, to run as a webinar series at which global contributors to the written course engaged live with participants. Focussing on ecological justice, the course was offered in tandem with a successful fundraising campaign, and included a number of practical actions for participants to consider.
As the world entered a second year of the pandemic, we launched our webinar series with a wide-ranging reflection – A view from here: Global Mission in a post pandemic world. As the keynote speaker, the General Secretary set out USPG’s agenda for mission for 2021, with responses from Dr Cathy Ross, Head of Pioneer Mission Leadership at CMS, and the Rev’d Dr Muthuraj Swamy, Director of the Cambridge Centre for Christianity Worldwide. This was followed with a joint webinar with SPCK to celebrate our shared Founders’ Day also known as Bray Day, (see page 11).
Our 2021 USPG Conference, also entitled For such a time as this , was online. Ably chaired by USPG volunteer, the Rev’d Paul Gurnham, it included worship, bible study and challenging global presentations on the topical themes of Solidarity and Global Mission in an Age of Pandemic, Prayer, Presence and Provision in the Pandemic, Racial Justice: Recovering Spiritualities, Restoring Justice and The Cry of Creation: Creativity in the Church. We were deeply privileged to have speakers from the Caribbean, Brazil, South Africa, Mozambique,
Malawi, Guinea, Bangladesh, the Philippines, West Malaysia, Europe and the UK. Special greetings were brought to the conference by Archbishop Hosam of Jerusalem and Archbishop Howard of the West Indies.
The online forum continued to be the method for engagement with webinars enabling many of our global partners ministries to be shared: The Abundant Life programme of the Iglesia Filipina Independiente (IFI) in April; Churches and Covid 19 – lessons from the front line in June; One in Christ Jesus – tackling Gender Inequalities The Zambian Anglican Church’s Response, in September; and A Cup full of Hope – mission in the Diocese of Columbo, Church of Ceylon in December.
In September, supporters gathered for the first time in person in two years in Holy Trinity, Sloane Square, hosted by the Rev’d Nicholas Wheeler for a celebration and Council meeting, and we look forward to welcoming supporters to the USPG conference in High Leigh in July 2022.
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Fundraising
Thank you to everyone who donated or prayed for our work
2021 saw the first year of our new 3-year fundraising strategy focused on building strong foundations for future growth.
In addition to donations from churches, Trusts and individuals, USPG was blessed to receive an additional £464,068 from gifts in wills.
In 2021 churches, trusts and individuals gave £762,865, a 0.6% increase. This includes £263,708 from church donations, £454,112 from individual supporters and £47,045 from trusts and foundations. It continues the pandemic trend of fewer donations from churches alongside an increase in donations from individuals.
Highlights
In April 2021 we launched our India Covid-19 rapid response appeal in partnership with the Church of North India. The area covered by the services of the Khristiya Seva Niketan (KSN) hospital in the Diocese of Durgapur is one of the more underprivileged areas of West Bengal. The appeal raised over £36,000
Thank you
Thank you so much for everyone who supported USPG and our global church partners last year. Your donations mean that we can continue to partner with churches across the world transforming lives through education, health care and justice for all.
for PPE and sanitizer in local villages and hospital staff and lifesaving ventilators for the newly opened isolation ward at KSN hospital. Thank you to everyone who donated or prayed for our work during the emergency response.
We also ran three successful fundraising appeals for Lent, Harvest and Christmas as well as introducing our first fundraising webinar in partnership with the Church of Ceylon to bring our Christmas appeal to life. In 2021 we launched a new free will-writing partnership with Farewill to help supporters to leave a legacy to USPG in their will.
We were delighted to work closely with the Diocese of Rochester’s Diocesan Appeal again in 2021 as they continued to support our partner’s work in Zimbabwe. The generosity of the Church of Ireland’s Bishop’s appeal meant that we could continue the community health and nutrition programme in partnership with the Church of Bangladesh.
Our Partners in Mission programme raised over £40,000 for our work in Tanzania, Bangladesh, Brazil, Malawi, India, Sri Lanka and Zimbabwe to name a few, and we’re excited to launch a new iteration of this programme in 2022.
After hearing feedback throughout the year, in November we changed our online donation system to make it much easier for supporters to use. We are delighted that the new fundraising pages have been well received and are significantly better.
Finally, we introduced bi-monthly impact emails to those who support us each month to update them on the work of our global church partners and the impact that their donations have had.
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REPORT OF THE Trustees AND MEMBERS
The Trustees have pleasure in presenting their report for the year ended 31 December 2021. This report is prepared in accordance with the Royal Charter, the Bye-Laws and 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).
Structure, governance and management Governing documentation and constitution
USPG (formally known as the United Society) is governed by its Royal Charter of 16 June 1701 as amended by the Supplemental Charter of 6 April 1882, the Supplemental Charter of 22 August 1921, the Supplemental Charter of 21 June 1956, the Supplemental Charter of 3 March 2014, the Orders of Council of 22 December 1964 and 19 November 1996. It became a registered charity on 26 August 1964.
Supplemental Charter
In 2013, USPG petitioned for a new Supplemental Charter which was approved on 11 December 2013. The new Supplemental Charter restates and replaces as appropriate the provisions and effects of the Original Charter of 16 June 1701 and the three Supplemental Charters as amended in order better to regulate USPG’s constitutional affairs, including changing the name and its charitable objects.
Name
This Supplemental Charter officially changed USPG’s name from the United Society for the Propagation of the Gospel (USPG) to The United Society.
Trustees’ Report ~~and Financ~~ ial Statements
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for the year ended 31 December 2021 The United Society, registered charity number 234518.
Incorporated under Royal Charter, 1701.
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In June 2016, the Society changed its trading name to United Society Partners in the Gospel (to be known as USPG). The Society is now known as USPG.
socially and economically disadvantaged members of such communities in such a way that they are better able to identify, and help meet their needs and to participate more fully in society;
Objects of USPG
- [The training, development and other ] support of Church Leaders;
The objects of USPG are to advance the Christian religion in accordance with the principles and practices of the Anglican churches of Britain and Ireland amongst the churches of the Anglican Communion and the communities they serve, throughout the world, including through, but not limited to, the following means:
- [The provision of advocacy and working ] collaboratively with such churches and communities; and any other means aimed at improving conditions of life and prospects for the future as the Trustees shall deem fit in accordance with the principles of the Christian religion as practiced in the Anglican Communion; including acting in co-operation with Partners in order to achieve such charitable outcomes.
[The relief of poverty;]
[The promotion of good health;]
- [The advancement of education and the ] development of the capacity and skills of
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General Secretary and Directors
The General Secretary and the Directors, who are responsible for the day-to-day management of the Society, during 2021 and at the date of this report, are shown on page 3. During the latter part of 2021 and into 2022, the Senior Leadership Team was restructured with three new Directors appointed in 2022 leading three re-configured teams: Global Mission; Communications and Engagement; and Finance and Operations. During 2021 and early 2022, the General Secretary was supported by one Communications consultant (Mr Adrian Butcher) and a consultant who acted as the Interim Director of Finance and Operations (Mr Golam Morshed).
Trustees
The Charity Trustees of USPG, who are elected by the Council, during 2021 and at the date of this report, are shown on page 2. The search for new Trustees is carried out by the Recruitment Committee, having identified the areas of experience or knowledge required by the Trustees. A process of advertising and/ or direct approach to people suggested is adopted. The Recruitment Committee itself is elected by USPG’s Council and chaired by the Revd Paul Gurnham. Once elected Trustees undergo a formal induction process. Trustees are given the opportunity to attend appropriate seminars and courses.
The two regular sub-committees of the Board of Trustees are the Finance and Audit Committee and the Remuneration and Personnel Policy Committee. The trustees formed a third sub-committee, Global Mission Programmes Committee, which had its first meeting in June 2022.
Council has a membership of up to 141 persons who reflect both USPG’s standing in the structures of the church and the support it receives as a voluntary organisation. Trustees continued to meet regularly but largely remotely throughout 2021, in order to exercise their governance responsibilities. Council met in person and online on Saturday, 25 September at Holy Trinity, Sloane Square.
Statement of Trustees’ responsibilities
The Trustees are responsible for preparing the Report of the Trustees and Members and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the Royal Charter require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the Trustees are required to:
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[select suitable accounting policies and ] then apply them consistently;
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[ observe the methods and principles in ] the Charity SORP;
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[make judgements and estimates that are ] reasonable and prudent;
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[the going concern basis unless it is ]
inappropriate to presume that the charity will continue in business.
The Trustees, advised by senior staff, are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Royal Charter. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Going Concern statement
Trustees have a responsibility to prepare the financial statements on a going concern basis unless it is inappropriate to presume that the organisation will continue in operation. An entity is a going concern unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so.
The Trustees have no doubt that USPG remains a going concern. USPG has substantial reserves held in investment assets, totaling £60.3 million at 31 December 2021. The strength of USPG’s balance sheet provides additional comfort that USPG will remain a going concern for the foreseeable future.
Risk management
The Trustees have a risk management strategy which identifies the major risks to which the charity is exposed and the possible impact of these risks. Established systems are in place through the annual risk register review and
ANNUAL REPORT OF THE USPG TRUSTEES
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quarterly management reports to review both the risks and the effectiveness of the controls. The top 10 risks facing the charity are reviewed regularly by the Trustee Board. These include:
Financial risks – In 2021 there was an overall modest increase of 4% in income caused by an increase in donations from individuals, rental and Investment income. Management information is provided on monthly basis, so that management can respond quickly to changes in the organisation’s income and expenditure and reduce expenditure where necessary. The strength of the balance sheet gives resilience against the short-term impact of any reductions in income. Significant investment has been made in staffing to increase fundraising capacity, although it will take a number of years to see results. The intention is to build a more stable platform of regular donations. In 2022 USPG is anticipating an increase in donations from churches and individuals together of 5%.
Operational risks – Two significant operational activities of USPG are travelling overseas to see first-hand the impact of USPG’s programmes, and face to face engagements with supporters in Britain and Ireland. These activities were restricted due to Covid-19 in 2021. With the progressive opening of the world after the lifting of Covid-19 restriction in the UK and Ireland and most parts of the world, USPG is now going back to the normal operations of the charity. USPG has planned its annual conference in July 2022 in-person after a break of two years. USPG staff have started to travel again to visit programmes in partner churches around the world. USPG has kept under constant review the changing situation, and followed its travel
guidelines for staff in accordance with the Government Guidelines.
Property risks –There are no major known risks associated with the property, except those associated with wear and tear and general maintenance. These are being mitigated by using appropriate professional advice and maintenance contracts. Trustees with relevant expertise are regularly involved on property issues. The property is covered by adequate insurance.
Compliance risks – In additional to data protection legislation, fire, health & safety, there are new guidelines and regular updates from HMRC including those associated with the furlough scheme, business support and VAT. The Charity Commission and the Pensions Regulator have also issued guidance on how charities should plan and respond to risk. These are being mitigated by regular reviewing of policies and procedures in place and responding to changes.
Public benefit
The Trustees confirm they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. Reflecting USPG‘s objectives, its history and current activities, USPG has always seen its role as part of God’s mission, seeking to bring his reconciling love to all peoples and in all places. The Trustees believe the Christian faith is of benefit to individuals and society as a whole. As a church-based charity with a wide range of international programmes and relationships, USPG aims to share this benefit with others. How this is done is explained throughout this Report.
Pay policy for key management personnel
The Board considers that the Trustees and the Senior Leadership Team as set out in note 16 of the accounts comprise the key management personnel of USPG in charge of directing and controlling, running and operating USPG on a day-to-day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses are disclosed in note 15 of the accounts.
Fundraising
USPG works to comply with all relevant statutory regulations, including the Charities Act 2011, the Charities (Protection and Social Investment) Act 2016 and the Data Protection Act 2018. USPG is registered with the Fundraising Regulator and adheres to its Code of Fundraising Practice. In 2021 there were no failures to comply with this Code of Practice.
USPG uses a wide range of approaches to raise money, such as working with philanthropists, trusts, Churches and Dioceses, as well as contacting existing supporters. Print advertising, digital advertising, social media and volunteer coordinators are used to promote fundraising campaigns. USPG’s internal Fundraising team conducts this activity as part of the wider Communications and Engagement Directorate. In 2021 USPG did not contract the services of any third-party professional fundraisers or fundraising agencies to support its work.
Supporters and members of the public continue to be given support and protection when undertaking fundraising activities. Guidance is in place about treating supporters fairly, including protecting supporters in
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vulnerable circumstances, and is followed across all fundraising activities.
In 2021, USPG received 8 complaints about its fundraising practice. Staff seek to improve USPG’s fundraising and marketing practice continuously. As well as adhering to the Regulator’s complaints-reporting guidelines, USPG is committed to fair, honest and open fundraising.
Finance review
During the year 2021, as the world was slowly opening up after the Covid pandemic, USPG had a modest increase of 4% in overall income, from £3.0m (2020) to £3.1m (2021). This increase is primarily due to an increase in individual donations, legacies, rental and Investment income. USPG investments performed well during 2021, with investment income of £1.675m (2020: £1.652m) received and a significant capital gain of £7.246m (2020: £1.792m).
USPG purchased 5 Trinity Street in 2018 and completed its refurbishment in 2019. In the first quarter of 2020 a 5-year lease was secured with a local firm of solicitors for 27% of the available floor space. This rental income is reported within restricted income. The property is reflected on the balance sheet partly within fixed assets and partly as an investment property within the investment portfolio.
Good progress has been made with the agreed strategy of putting USPG on a sustainable financial footing. USPG has now achieved its declared aim of balancing income and expenditure on unrestricted funds.
Donations from individuals and churches are an important source for USPG’s unrestricted
income, and these increased from £758k to £763k. Legacy income increased from
£452k to £577k. Legacy income, by its very nature, fluctuates from year to year. USPG continues to be enormously grateful to those who arrange to support its work through legacies and donations.
The year ended with a surplus on unrestricted funds of £296k (2020: £370k deficit) and a deficit on restricted funds of £286k (2020: £298k deficit), making a total surplus of £10k (2020: £668k deficit). The Trustees plan to spend down balances on restricted funds (note 9) where it is appropriate to do so. A payment of £80k has been made against a liability, which was accrued in the year 2020, in relation to the World Mission Association (WMA). USPG and CMS were each responsible for 50% of the liabilities of WMA, which was formed in 1987 to manage the operations at Partnership House. It continued to operate until 2007. The liability was based on USPG’s share of the section 75 employer buy-out payment due to the Church of England Pension Board.
The investment gains for the year were £7.246m (2020: £1.792m). However, due to the continued volatility of the financial markets, on 30 June 2022 the value of USPG’s investments held by CCLA had fallen in six months by £5.449m to £50.542m, whilst USPG’s investment in the Charities Property Fund had increased by £406k to £5.846m in the same period.
This year, the FRS 102 actuarial loss on the pension schemes decreased quite significantly from £4.787m to £875k. This has resulted in a positive adjustment of £3.856m against unrestricted reserves. This is essentially due
to the change in corporate bond yields over the year.
ANNUAL REPORT OF THE USPG TRUSTEES 19
The summary of the 2020 results can be found below:
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2021 2021 2021 2020 2020 2020
UNRESTRICTED FUNDS RESTRICTED FUNDS TOTAL UNRESTRICTED FUNDS RESTRICTED FUNDS TOTAL
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| INCOME | £ ‘000 | £ ‘000 | £ ‘000 | £ ‘000 | £ ‘000 | £ ‘000 |
| Donatons and Legacies | 1,209 | 130 | 1,339 | 992 | 218 | 1,210 |
| Investment Income | 710 | 965 | 1,675 | 576 | 1,076 | 1,652 |
| Rental Income | 75 | 75 | 43 | 43 | ||
| Other Income | 35 | 35 | 96 | 96 | ||
| TOTAL INCOME | 1,954 | 1,170 | 3,124 | 1,664 | 1,337 | 3,001 |
| EXPENDITURE | ||||||
| Programmes | 1,196 | 1,456 | 2,652 | 1,415 | 1,635 | 3,050 |
| Cost of raisingfunds | 462 | 462 | 619 | 619 | ||
| TOTAL EXPENDITURE | 1,658 | 1,456 | 3,114 | 2,034 | 1,635 | 3,669 |
| SURPLUS(DEFICIT) | 296 | (286) | 10 | (370) | (298) | (668) |
| Investment gain (loss) | 7,246 | 7,246 | (96) | 1,888 | 1,792 | |
| Actuarial loss on pension schemes | 3,856 | 3,856 | (2,173) | (2,173) | ||
| Transfer between funds | 3,955 | (3,955) | - | |||
| Net movement in funds | 4,152 | 6,960 | 11,112 | (2,639) | 1,590 | (1,049) |
| FUNDS | ||||||
| Unrestricted | 8,842 | 8842 | 735 | 735 | ||
| Designated | 1,720 | 1720 | 5,675 | 5,675 | ||
| Restricted | 2,296 | 2,296 | 2,582 | 2,582 | ||
| Permanent Endowments | 27,580 | 27,580 | 22,514 | 22,514 | ||
| Expendable Endowments | 23,276 | 23,276 | 21,096 | 21,096 | ||
| TOTAL FUNDS CARRIED FORWARD | 10,562 | 53,152 | 63,714 | 6,410 | 46,192 | 52,602 |
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USPG prepares a budget each year and a rolling forecast, together with management accounts and cash flow statements. These reports are discussed by the Senior Leadership Team and scrutinised by the Finance and Audit Committee prior to submission to the Board of Trustees. The Finance and Audit Committee meets five times a year.
There is a strong budgetary control environment where each expenditure item is authorised by the budget holder and checked by the finance team against approved budgets. Internal control procedures are in place regarding opening of mail, purchase ledger processing, banking (including internet banking) and cheque payments (which have been significantly reduced). These controls are reviewed regularly in relation to their effectiveness and robustness.
Trustees and the senior staff of USPG are made aware of any potential conflict(s) of interest and are required to complete a related party declaration as and when a potential conflict arises, and also at the end of the year as part of the annual audit process.
Investment powers, policy and performance
Under the Supplemental Charter of 21 June 1956, as amended by the Order in Council dated 19 November 1996 and the Supplemental Charter of 3 March 2014 the Trustees have full and unrestricted powers of investment in respect of USPG general funds, and the endowment funds are invested according to the requirement of individual funds. All investments held by USPG have been acquired in accordance with the powers available to the Trustees.
CCLA Investment Management Ltd now manages more than 90 per cent of USPG’s funds through their range of pooled funds, with The Charities Property Fund managing the balance. At December 2021, the total market value of funds managed by CCLA was £55.901m (2020: £48.318m) Rathbones, £0 (2020: £223k) and the Charities Property Fund, £4.440m (2020: £4.018m).
Ethical Investment policy
USPG has adopted the ethical investment policy of the Church of England, as recommended by the Church’s Ethical Investment Advisory Group, which has three National Investing Bodies (NIBs): The Church Commissioners for England, the CBF Church of England Funds and the Church of England Pensions Board. The NIBs are asset owners who invest on behalf of many beneficiaries. The way in which they invest forms an integral part of the Church of England’s witness and mission. The NIBs receive advice and support on ethical investment from the Church’s Ethical Investment Advisory Group (EIAG). The purpose of the EIAG is to enable the NIBs to act as distinctively Christian – and Anglican – institutional investors. The EIAG develops ethical investment policy recommendations which, once agreed by the NIBs, are adopted by them, communicated to the wider Church and implemented.
Indirect investments via pooled funds
USPG invests in assets and asset classes through pooled funds. Pooled funds are funds in which several different investors invest. The Pooled Funds apply the investment policies consistent with the ethical investment guidance of the EIAG.
The Trustees meet with the investment managers twice a year to review their performance, set annual income targets, as well as receive evidence that the ethical investment policy is being adhered to.
Grants Policy
USPG no longer works based on giving grants – it funds programmes agreed with partner churches around the world through memoranda of understanding.
USPG’s reserves
USPG reserves are a complex mix of unrestricted funds (free reserves), designated funds and restricted funds.
Free reserves
These are reserves that are available without restriction to fund working capital, shortfalls in income, innovations, unexpected expenditure or other financial obligations. Recognising the need to maintain continuity of funding of programmes which are approved over a 3-year period in anticipation of income each year, Trustees assess the level of free reserves considered appropriate to ensure USPG’s continued ability to carry out its objectives as well as manage risks and future liabilities. The reserves policy anticipates that the level of reserves should represent at least 12 months’ operational costs.
The free reserve at 31 December 2021 was £9.472m (2020: £5.319m), which represents approximately 58 months of operational costs as per the 2022 budget.
ANNUAL REPORT OF THE USPG TRUSTEES
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Designated funds
Designated funds total £1.720m (2020: £5.675m). In 2016, Trustees made a policy to designate funds each year to cover the defined benefit pension schemes deficit as per the FRS 102 valuation at the year end. This year, the deficit decreased from £4.787m to £875k therefore £3.912m of designated reserves were transferred into the general fund.
USPG guarantees interest free loans from supporters who have contributed into the Festina loans fund. The balance of these guaranteed loans of £166k has been designated to represent the liability due to Scheme loan holders.
During the year the Trustees decided to waive all the outstanding Festina loans as part of closing the scheme. The total Festina loans balance at the end of the year was nil.
Restricted and Endowment funds
The restricted funds are funds earmarked for specific geographical regions or objects and cannot be spent until stable leadership and other conditions in those areas are met. Restricted income funds total £2.296m (2020: £2.582m) and endowment funds total £50.856m (2020: £43.610m). These do not form part of our free reserves as Trustees have to comply with the relevant restrictions. Unspent restricted funds in the year are carried forward into the subsequent year to comply with the donors’ specific requirements. Trustees have a plan in place to spend down the accumulated restricted funds and this is reflected in the reduced restricted fund balance at the year end.
This Report was approved by the Trustees on 26 July 2022 and is signed on their behalf by John Neilson, Chair of Trustees.
John Neilson
Chair of Trustees
22 ANNUAL REPORT OF THE USPG TRUSTEES
INDEPENDENT AUDITORS’ REPORT TO THE Trustees OF THE UNITED SOCIETY (KNOWN AS USPG)
OPINION ON FINANCIAL STATEMENTS
We have audited the financial statements of The United Society for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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[give a true and fair view of the state of ] the charity’s affairs as at 31 December 2021 and of its incoming resources and application of resources for the year then ended;
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[have been properly prepared in ] accordance with United Kingdom Generally Accepted Accounting Practice; and
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[have been prepared in accordance with ] the Charities Act 2011.
Basis of 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 charity in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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[the information given in the financial ] statements is inconsistent in any material respect with the trustees’ report; or
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[sufficient accounting records have not ] been kept; or
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[the financial statements are not in ] agreement with the accounting records; or
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[we have not received all the information ] and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Trustees’
ANNUAL REPORT OF THE USPG TRUSTEES
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Responsibilities Statement set out on page 19, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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[The Charity is required to comply with ] charity law and based on our knowledge of its activities, we identified that the legal requirement to accurately account for restricted funds was of key significance.
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[We gained an understanding of how ] the charity complied with its legal and regulatory framework, including the requirement to properly account for restricted funds, through discussions with management and a review of the documented policies, procedures and controls.
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[The audit team, which is experienced ] in the audit of charities, considered the charity’s susceptibility to material misstatement and how fraud may occur. Our considerations included the risk of management override.
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[Our approach was to check that all ] restricted income was properly identified and separately accounted for and to ensure that only valid and appropriate expenditure was charged to restricted funds. This included reviewing journal adjustments and unusual transactions.
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/ auditorsresponsibilites. This description forms part of our auditor’s report.
Use of the audit report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken, so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report or for the opinions we have formed.
Knox Cropper LLP Chartered Accountants Statutory Auditor 65 Leadenhall Street London
EC3A 2AD
Date: 26 July 2022
Knox Cropper LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
24 ANNUAL REPORT OF THE USPG TRUSTEES
THE UNITED SOCIETY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
| Notes | Unrestricted Funds General Designated |
Unrestricted Funds General Designated |
Restricted Income Funds |
Endowment Funds |
TOTAL 2021 |
TOTAL 2020 |
|
|---|---|---|---|---|---|---|---|
| £ ‘000 | £ ‘000 | £ ‘000 | £ ‘000 | £ ‘000 | £ ‘000 | ||
| Income | |||||||
| Donatons and Legacies | 12 | 1,209 | 130 | 1,339 | 1,210 | ||
| Income from charitable actvites | |||||||
| Sundry income | 13 | 35 | - | 35 | 96 | ||
| Investment Income | 13 | 710 | 965 | 1,675 | 1,652 | ||
| Rental Income | 13 | 75 | 75 | 43 | |||
| Total Income | 1,954 | 1,170 | - | 3,124 | 3,001 | ||
| Expenditure | |||||||
| Cost of raising funds | 14 | 462 | 462 | 619 | |||
| Expenditure on Charitable Actvites : | |||||||
| Global Programmes and Mission Engagement | 14 | 1,196 | 1,456 | 2,652 | 3,050 | ||
| Total Expenditure | 1,658 | 1,456 | - | 3,114 | 3,669 | ||
| Net income/expenditure before gains/(loss) on investment assets | 296 | (286) | - | 10 | (668) | ||
| Gains (loss) on investment assets | 3 | 7,246 | 7,246 | 1,792 | |||
| Net income/(expenditure) afer gains/(loss) on investment assets | 296 | (286) | 7,246 | 7,256 | 1,124 | ||
| Transfers between funds | 3,955 | (3,955) | - | - | |||
| Actuarial gain/(loss) on pension schemes | 17 | 3,856 | 3,856 | (2,173) | |||
| Net movement in funds for the year | 8,107 | (3,955) | (286) | 7,246 | 11,112 | (1,049) | |
| Reconciliaton of Funds | |||||||
| Total funds brought forward | 735 | 5,675 | 2,582 | 43,610 | 52,602 | 53,651 | |
| Total funds carried forward | 8,842 | 1,720 | 2,296 | 50,856 | 63,714 | 52,602 |
The notes on pages 29 to 41 form part of these accounts.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derived from continuing activities.
Transfers between funds represent the undesignation of general funds to match the descrease in future pensions liabilities.
ANNUAL REPORT OF THE USPG TRUSTEES 25
THE UNITED SOCIETY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes | Unrestricted Funds | Unrestricted Funds | Restricted | Endowment | TOTAL | |
|---|---|---|---|---|---|---|
| General | Designated | Income Funds | Funds | 2020 | ||
| £ ‘000 | £ ‘000 | £ ‘000 | £ ‘000 | £ ‘000 | ||
| Income | ||||||
| Donatons and Legacies | 12 | 992 | 218 | 1,210 | ||
| Income from charitable actvites : | ||||||
| Sundry income | 13 | 96 | - | 96 | ||
| Investment Income | 13 | 576 | 1,076 | 1,652 | ||
| Rental Income | 13 | 43 | 43 | |||
| Total Income | 1,664 | - | 1,337 | - | 3,001 | |
| Expenditure | ||||||
| Cost of raising funds | 14 | 619 | 619 | |||
| Expenditure on Charitable Actvites : | ||||||
| Global Programmes and Mission Engagement | 15 | 1,415 | 1,635 | 3,050 | ||
| Total Expenditure | 2,034 | - | 1,635 | - | 3,669 | |
| Net income/expenditure before gains/(loss) on investment assets | (370) | - | (298) | - | (668) | |
| Gains on investment assets | 3 | (96) | 18 | 1,870 | 1,792 | |
| Net income/(expenditure) afer gains/(loss) on investment assets | (466) | - | (280) | 1,870 | 1,124 | |
| Transfers between funds | (1,771) | 1,771 | - | |||
| Actuarial loss on pension schemes | 17 | (2,173) | (2,173) | |||
| Net movement in funds for the year | (4,410) | 1,771 | (280) | 1,870 | (1,049) | |
| Reconciliaton of Funds | 5,145 | 3,904 | 2,862 | 41,740 | 53,651 | |
| Total funds brought forward | ||||||
| Total funds carried forward | 735 | 5,675 | 2,582 | 43,610 | 52,602 |
26 ANNUAL REPORT OF THE USPG TRUSTEES
Balance Sheet at 31 December 2021
| Balance Sheet at 31 December 2021 | |||
|---|---|---|---|
| Note | 2021 | 2020 | |
| £ ‘000 | £ ‘000 | ||
| FIXED ASSETS | |||
| Tangible assets | 2 | 3,933 | 3,997 |
| Investments | 3 | 60,354 | 52,630 |
| Property Investments | 3 | 1,224 | 1,224 |
| TOTAL FIXED ASSETS | 65,511 | 57,851 | |
| NON CURRENT ASSETS | |||
| Loans and debtors due afer 1 year | 5 | - | 272 |
| CURRENT ASSETS | |||
| Loans and debtors | 5 | 727 | 627 |
| Cash at bank and in hand | 674 | 301 | |
| TOTAL CURRENT ASSETS | 1,401 | 928 | |
| LIABILITIES | |||
| Creditors falling due within one year | 6 | 2,325 | 1,662 |
| NET CURRENT (LIABILITIES) | (922) | (734) | |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 64,589 | 57,389 | |
| Creditors:Net Pension Scheme Liabilites | 17 | (875) | (4,787) |
| NET ASSETS | 11 | 63,714 | 52,602 |
| THE FUNDS OF THE SOCIETY : | |||
| Unrestricted Funds: | |||
| General | 7 | 9,717 | 5,522 |
| Pension Schemes | 8 | (875) | (4,787) |
| Designated | 8 | 1,720 | 5,675 |
| 10,562 | 6,410 | ||
| Restricted Income Funds | 9 | 2,296 | 2,582 |
| Endowment Funds: | 10 | ||
| Expendable | 23,276 | 21,096 | |
| Permanent | 27,580 | 22,514 | |
| 50,856 | 43,610 | ||
| TOTAL CHARITY FUNDS | 11 | 63,714 | 52,602 |
John Neilson
Chair of Trustees The notes on pages 29-41 form part of the accounts.
ANNUAL REPORT OF THE USPG TRUSTEES 27
| Statement of Cash Flow for the year Ended 31 December 2021 | 2021 | 2020 | ||
|---|---|---|---|---|
| £’000 | £’000 | |||
| Cash used in operatng actvites | (973) | (2,101) | ||
| Cash fows from investng actvites | ||||
| Investment income | 1,675 | 1,652 | ||
| Purchase of fxed assets | (2) | (60) | ||
| Purchase of investments | (683) | (10,701) | ||
| Sale of investments | 205 | 10,777 | ||
| Cash provided by (used in) investng actvites | 1,195 | 1,668 | ||
| Cash fows from fnancing actvites | ||||
| Net (increase) decrease of Festna loan debtors | 152 | 350 | ||
| Net (increase)decrease of Festna loan creditors | - | - | ||
| Cash used in fnancing actvites | 152 | 350 | ||
| Increase in cash and cash equivalents in the year | 374 | (84) | ||
| Cash and cash equivalents at the beginning of the year | 301 | 385 | ||
| Total cash and cash equivalents at the end of the year | 675 | 301 | ||
| Reconciliaton of net movement in funds to net cash fow from operatng actvites | 2021 | 2020 | ||
| £’000 | £’000 | |||
| Net movement in funds | 10 | (668) | ||
| Add back depreciaton charge | 66 | 78 | ||
| Deduct interest income shown in investng actvites | (1,675) | (1,652) | ||
| Pension creditor movements | (56) | (55) | ||
| Increase (decrease) in debtors | 20 | 63 | ||
| Increase (decrease) in creditors | 661 | 133 | ||
| Net cash used in operatng actvites | (973) | (2,101) | ||
| Analysis of change in net debt | At start of year | Cash fows | cash changes | At year end |
| £’000 | £’000 | £’000 | £’000 | |
| Cash | 301 | 373 | - | 674 |
| Loans falling due within one year | (166) | - | - | (166) |
| 135 | 373 | - | 508 |
28 ANNUAL REPORT OF THE USPG TRUSTEES
NOTES TO THE ACCOUNTS
1. Accounting Policies
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 (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)). The United Society meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or notes. The Trustees consider that there are no material uncertainties about Charity’s ability to continue as a going concern. In forming this opinion, they have considered the impact of the COVID-19 pandemic on both its income and expenditure and the carrying value of its assets and liabilities for a period of at least twelve months from the date of approval of these financial statements.
a. Donation, legacies and fundraising income
These are recognised in the accounts when received or when the Society becomes legally entitled to them and they can be reasonably measured. Income received for general purposes of the Charity are included as unrestricted funds. Income for activities restricted by the wishes of the donor or the terms of the particular trust deed is taken to restricted income funds. Income required to be retained as capital in accordance with the donor’s wishes are accounted for as endowments – permanent or expendable according to the nature of the restriction.
b. Investment income
Investment income is accounted for as it accrues. Investment income to be spent in accordance with the particular terms of a trust is included in restricted income funds
c. Expenditure
Resources expended are accounted for on an accruals basis. Support costs which cannot be directly apportioned are allocated between cost categories on the basis of the Trustees’ estimate of the time spent on the relevant functions. Cost of generating funds comprises expenditure incurred by the Society in appealing for donations. Cost of charitable activities consist of all expenditure directly relating to the objects of the Society together with an allocation of support costs. International programmes costs: these are the costs of programmes across the Anglican Communion developed jointly with our partners. Programmes costs are approved by Trustees as part of the overall budget of the Society on an annual basis. Funding for these Programmes are formalised through a Memorandum of Understanding (MoU). Governance costs comprise expenditure on management and compliance with constitutional and statutory requirements together with an allocation of support costs.
d. Investments
Investment properties are included in investments and are stated at Trustees’ valuation based on similar properties being sold in the area. Other investments are stated at market value. Gains (or losses) are reflected in the Statement of Financial Activities in the year in which they occur.
e. Depreciation of tangible fixed assets
General minor office equipment is charged to resources expended in the year that the expenditure is incurred. For the purpose of depreciation, property is separated out into components such as structure, land, lift, machinery and Air conditioning equipment. The depreciation rates in use are the following : major office and computer equipment at 20 per cent on costs, Properties at 2 per cent of cost less the value of land and Plant at 25 per cent on costs.
f. Property
The Property is used for partial own office use and part to earn rental income. The part for rental is classified as investment property and accounted for separately in the accounts using floor space.
g. Pensions
The Society operates and contributes to two defined benefit schemes and one workplace pension scheme. The amounts included within the Statement of Financial activities and Balance Sheet is in accordance with the requirements of Financial Reporting Standard 17: Retirement Benefits (FRS102).
h. Fund accounting
Details of the nature and purpose of each fund are set out in notes 7 to 10.
i. Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
j. Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
k. Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
ANNUAL REPORT OF THE USPG TRUSTEES
29
2. Tangible Fixed Assets
| Freehold Property* | Computers | Plant (Lif) | Ofce Equipment | Furniture & Fitngs | Total | |
|---|---|---|---|---|---|---|
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Cost: | ||||||
| Balance at 1 January 2021 | 4,081 | 171 | 28 | 7 | 67 | 4354 |
| Additons | - | 2 | - | - | - | 2 |
| Balance at 31 December 2021 | 4081 | 173 | 28 | 7 | 67 | 4356 |
| Depreciaton: | ||||||
| Balance at 1 January 2021 | 170 | 114 | 14 | 7 | 52 | 357 |
| Charge for the year | 38 | 16 | 7 | - | 5 | 66 |
| Balance at 31 December 2021 | 208 | 130 | 21 | 7 | 57 | 423 |
| Net Book Value at 31 December 2021 | 3,873 | 43 | 7 | - | 10 | 3,933 |
| Net Book Value at 31 December 2020 | 3,911 | 57 | 14 | - | 15 | 3,997 |
*Freehold Property includes the portion of the purchase of the 5 Trinity Street that is not treated as an Investment Property. This property purchase was funded from the Africa expendable endowment fund.
3. Investments
| 3. Investments | ||||||
|---|---|---|---|---|---|---|
| Restricted Funds | Unrestricted | Endowment | Endowment | Endowment | Total | |
| Funds | Funds Expendable | Funds | Funds Permanent | Funds | ||
| Property | Expendable | |||||
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Market Value at 1 January 2021 | 671 | 13,026 | 1,224 | 16,421 | 22,512 | 53,854 |
| Acquisitons | 683 | 683 | ||||
| Disposals | (205) | (205) | ||||
| Net gain on revaluatons | 2,180 | 5,066 | 7,246 | |||
| Market Value at 31 December 2021 | 671 | 13,504 | 1,224 | 18,601 | 27,578 | 61,578 |
| Listed investments | 671 | 13,504 | 18,601 | 27,578 | 60,354 | |
| Property (represents 27% of the Trinity Street property rented out) | 1,224 | 1,224 | ||||
| Total Investments at 31 December 2021 | 671 | 13,504 | 1,224 | 18,601 | 27,578 | 61,578 |
30 ANNUAL REPORT OF THE USPG TRUSTEES
4. Financial Instruments
| 2021 | 2020 | |
|---|---|---|
| Financial Assets | £’000 | £’000 |
| Financial assets measured at fair value | 60,354 | 52,630 |
| Financial assets that are debt instruments measured at amortsed cost | 286 | 454 |
| 60,640 | 53,084 | |
| Financial Liabilites | 2,325 | 1,662 |
| Financial assets measured at fair value comprise listed investments. | ||
| Financial assets measured at amortsed cost comprise loans, trade and other debtors | ||
| Financial liabilites measured at amortsed cost comprise loans, amounts due to overseas partners, trade and other creditors. | ||
| 5. Loans and Debtors | ||
| 2021 | 2020 | |
| £’000 | £’000 | |
| Loans and debtors due afer 1 year | ||
| Balance of the sale proceeds of UCA payable at £120k per annum untl 2021 | - | 120 |
| Festna loan balances | - | 152 |
| - | 272 | |
| The Society’s leasehold interest in the former United College of the Ascension in Birmingham was sold to Al Mahdi Insttute in 2011. | ||
| Loans and debtors due less than 1 year | ||
| Balance of the sale proceeds of UCA payable at £120k per annum untl 2021 | 120 | 120 |
| Other debtors | 165 | 62 |
| Prepayments and accrued income | 441 | 445 |
| 727 | 627 |
ANNUAL REPORT OF THE USPG TRUSTEES 31
6. Creditors : falling due within one year
| Loans received from Festna Scheme holders Taxaton and Social Security Provision for liability (WMA Secton 75 buy out)* Other creditors and accruals Diocesan Accounts |
2021 2020 £’000 £’000 166 166 23 23 - 80 194 121 1,942 1,272 |
|---|---|
| 2,325 1,662 |
*USPG and CMS are joint sponsors of World Mission Association, a subsidiary formed in 1987 to manage the operations at Partnership house. The provision for contingent liability is an estimate of section 75 Employer buy-out payment due to the Church of England Pension Board under the Church worker pension scheme arrangements. This was settled in 2021. In the year 2020 Diocesan Accounts and Funds held for sister organisations were shown separately; these have been merged in 2021.
7. Unrestricted Funds
General funds are funds where both the capital and income can be spent at the discretion of the Trustees in furtherance of the objects of the Society.
8. Designated Funds
| 8. Designated Funds Designated funds are unrestricted funds which have been designated by the Trustees for partcular purposes. The designated funds include the following: To fnance future pensions liabilites Commitments to guarantee loans from Festna Loan holders To fnance the Society's loan from general funds to the Festna Loan Scheme Amount refectng the fnance ted up in tangible fxed assets Amount refectng the fnance ted up in Property |
2021 £’000 2020 £’000 875 4,787 166 166 - - 64 62 615 660 |
|---|---|
| 1,720 5,675 |
32 ANNUAL REPORT OF THE USPG TRUSTEES
9. Restricted Income Funds
| General restricted funds Medical funds Legacies and donatons received Trust Invested Income New scheme Trusts funds: Africa Fund Central Africa Fund East Asia Fund Educatonal Fund General Fund Health Fund Latn America and Caribbean Fund South Asia Fund Maintained Trusts Funds Rapid Response Fund Earmarked Gifs European Refugee Appeal |
Balance at Income Expenditure Investment Gains Balance at 1 Jan 2021 31 Dec 2021 £’000 £’000 £’000 £’000 - 41 (41) - 9 - (9) - 927 51 (25) 953 670 - - - 670 71 343 (346) 68 1 140 (141) - 425 91 (218) 298 112 110 (109) 113 20 84 (57) 47 109 52 (120) 41 - 34 (34) - - 63 (72) (9) 116 122 (228) 10 - 38 (38) - 11 1 - 12 111 - (18) 93 2,582 1,170 (1,456) - 2,296 General restricted funds Medical funds Legacies and donatons received Trust Invested Income New scheme Trusts funds: Africa Fund Central Africa Fund East Asia Fund Educatonal Fund General Fund Health Fund Latn America and Caribbean Fund South Asia Fund Maintained Trusts Funds Rapid Response Fund Earmarked Gifs European Refugee Appeal |
Balance at Income Expenditure Investment Gains Balance at 1 Jan 2020 31 Dec 2020 £’000 £’000 £’000 £’000 192 72 (264) - 27 - (18) 9 812 139 (24) 927 652 - - 18 670 - - 3 457 (389) 71 4 136 (139) 1 561 88 (224) 425 86 106 (80) 112 - 79 (59) 20 196 50 (137) 109 - 33 (33) - 7 61 (68) - 107 109 (100) 116 61 4 (65) - 9 2 - 11 145 - (34) 111 |
|---|---|---|
| 2,862 1,336 (1,634) 18 2,582 |
ANNUAL REPORT OF THE USPG TRUSTEES 33
10. Endowment Funds
| Permanent Endowment Funds Africa Fund Central Africa Fund East Asia Fund Educatonal Fund General Fund Health Fund Latn America and Caribbean Fund South Asia Fund Other Funds Expendable Endowment Funds Trinity Street Property Africa Fund Central Africa Fund East Asia Fund Educatonal Fund General Fund Health Fund Latn America and Caribbean Fund South Asia Fund Other Funds Total Endowment Funds |
Balance at Sales Investment Gains Balance at 1 Jan 2021 31 Dec 2021 £’000 £’000 £’000 £’000 3,545 798 4,343 3,823 860 4,683 966 217 1,183 1,121 252 1,373 6,286 1,414 7,700 2,074 467 2,541 906 204 1,110 450 101 551 3,343 752 4,095 22,514 5,066 27,580 4,126 - 4,126 8,725 1,121 9,846 867 111 978 2,673 343 3,016 2,730 351 3,081 227 29 256 136 17 153 290 37 327 573 74 647 749 96 845 21,096 2,180 23,276 43,610 7,246 50,856 Permanent Endowment Funds Africa Fund Central Africa Fund East Asia Fund Educatonal Fund General Fund Health Fund Latn America and Caribbean Fund South Asia Fund Other Funds Expendable Endowment Funds Trinity Street Property Africa Fund Central Africa Fund East Asia Fund Educatonal Fund General Fund Health Fund Latn America and Caribbean Fund South Asia Fund Other Funds Total Endowment Funds |
Balance at Sales Investment Gains Balance at 1 Jan 2020 31 Dec 2020 £’000 £’000 £’000 £’000 3,331 214 3,545 3,598 225 3,823 906 60 966 1,051 70 1,121 5,950 336 6,286 1,951 123 2,074 848 58 906 421 29 450 3,150 193 3,343 |
|---|---|---|
| 21,206 1,308 22,514 |
||
| 4,126 4,126 8,675 50 8,725 816 51 867 2,505 168 2,673 2,558 172 2,730 214 13 227 128 8 136 272 18 290 536 37 573 704 45 749 |
||
| 20,534 562 21,096 |
||
| 41,740 1,870 43,610 |
34 ANNUAL REPORT OF THE USPG TRUSTEES
Permanent Endowment funds
These are funds are funds where the capital must be retained and only the income used in accordance with the terms of a trust or the wishes
of the donor. These have been analysed above in accordance with how the income generated from the funds is to be spent.
Expendable Endowment funds
These are funds where the capital must be retained and only the income used in accordance with the terms of a trust, until such times as the Trustees elect in accordance with the terms of the trust to apply the capital as income. This is shown by way of a transfer from the endowment funds to the restricted or unrestricted funds.
Trust funds
These funds are analysed in accordance with the purpose specified by the donor, the terms of the particular trust or the geographical areas of the world where the income should be spent.
Legacies and donations
This fund represents legacies and donations received which have to be spent in geographical areas as per the wishes of the donor. Due to leadership challenges in some of those areas, funds have been held until those challenges are resolved.
ANNUAL REPORT OF THE USPG TRUSTEES
35
11. Analysis of Net Assets by Funds
| Unrestricted Funds: General Funds Designated Funds Restricted Funds Expendable Endowment Permanent Endowment |
Tangible Fixed Assets Investments Net Current Assets Pension Scheme Liabilites Balance at 31 December 2021 £’000 £’000 £’000 £’000 £’000 13,504 (3,786) (875) 8,843 1,091 1,224 (595) 1,720 671 1,624 2,295 27,578 (4,302) 23,276 2,842 18,601 6,137 27,580 |
|---|---|
| 3,933 61,578 (922) (875) 63,714 |
| Unrestricted Funds: General Funds Designated Funds Restricted Funds Expendable Endowment Permanent Endowment |
Tangible Fixed Assets Investments Net Current Assets Pension Scheme Liabilites Balance at 31 December 2020 £’000 £’000 £’000 £’000 £’000 13,026 (7,504) (4,787) 735 1,091 1,224 3,360 5,675 671 1,911 2,582 22,512 (1,416) 21,096 2,906 16,421 3,187 22,514 |
|---|---|
| 3,997 53,854 (462) (4,787) 52,602 |
12. Donations and Legacies
Donations are received from churches within Britain and Ireland, mainly from Parochial Church Councils and from other charitable trusts and individuals.
Legacies are received from departed supporters within Britain and Ireland.
Residuary legacies notified before the year end but for which the value was uncertain have not been accrued.
13. Investments, Trusts & Foundations and Other Income
| Investments quoted on a recognised UK Stock Exchange Common Investment Funds Rental Income Other income Trusts and Foundaton Income over £499 received and included in the donatons fgure. Bradley Family Charitable Foundaton Guernsey Overseas Aid Commission The Fulmer Charitable Trust Alma Jean Henry Charitable Trust Tisbury Telegraph Trust The SMB Charitable Trust The Nancy Woodrofe Baker Trust Mrs R P Tindall’s Charitable Trust The Forest Hill Charitable Trust Saxham Trust Summers and May Charitable Trust |
2021 £’000 2020 £’000 318 318 1,357 1,334 75 43 |
|---|---|
| 1,750 1,695 |
|
| 2021 2020 £’000 £’000 35 96 |
|
| 35 96 |
|
| 2021 £ 20,000 20,250 750 800 500 1,000 800 1,000 1,000 500 2,200 48,800 |
| Donatons Legacies |
2021 2020 £’000 £’000 763 758 576 452 |
|---|---|
| 1,339 1,210 |
36 ANNUAL REPORT OF THE USPG TRUSTEES
14. Analysis of expenditure on charitable activities
| Cost of Generatng Funds Fundraising Investment Management Charitable Actvites Programmes Transfer to Diocese in Europe Governance Costs* Total Resources expended Analysis of Support Costs – other costs: Pension Administraton costs – Overseas and Home Schemes Pension – Home Scheme Defcit plan Accommodaton and Facilites Distributon – Postage Staf & Volunteers Expenses Archives Telephones Finance – Bank Charges Depreciaton Recruitment and Training Costs IT Support Ofce Costs Property Maintenance Costs FRS 102 Pension Adjustments Festna Provision WMA Secton 75 buy out provision |
2021 £’000 113 112 24 11 9 27 24 12 66 62 50 51 48 (56) 117 - |
Programme Expenditure Other Direct Expenditure Staf costs £’000 £’000 £’000 - 149 187 1,166 860 - 25 55 |
Transfer Support Cost 2021 2020 £’000 £’000 £’000 66 402 570 60 60 51 523 2,549 2,931 -0 22 102 117 |
|---|---|---|---|
| 1,166 175 1,102 |
- 671 3,114 3,669 |
||
| 2020 £’000 157 112 57 20 - 27 32 10 77 39 45 48 40 (55) 346 80 1,035 2021 £’000 2020 £’000 Allocated as follows: Cost of Generatng Funds 126 259 Charitable Actvites Programmes 523 745 Governance Costs 22 31 Total Support Costs 671 1,035 Direct Governance Costs Council meetngs and Trustees’ expenses 12 4 Auditors remuneraton: Audit 13 13 Other Professional fees 1 11 Total direct Governance Expenditure 26* 28 Trustees’ expenses include overseas travel costs and reimbursed travel expenses of £664 (2020: £1,763) and paid to 4 (2020: 4) Trustees. Apart from Trustee’s expenses and the £192 paid to a trustee for professional services (see note 15), no related party transactons arose in the current or preceding year. |
2021 £’000 2020 £’000 126 259 523 745 22 31 |
||
| 671 1,035 |
|||
| 12 4 13 13 1 11 |
|||
| 26 28 |
|||
| 671 |
ANNUAL REPORT OF THE USPG TRUSTEES 37
15. Analysis of staff costs, Trustees remuneration and expenses, and the cost of key management personnel
| Salaries Social security costs Pension costs Included in the above is a payment made to a member staf in setlement of redundancy, totalling £18,978. Two employees earned between £60k and £70k during the year.(2020 Three between £60k and £70k) One employees earned between £80k and £90k during the year.(2020 One between £80k and £90k) Employer costs includes employers natonal insurance and pension contributons. The key management personnel of the charity comprise the Trustees, Chief Executve Ofcer and the Directors of Finance, Mission Engagement, Communicatons and Global Relatons. Total employee benefts of the key management personnel of the charity were : One trustee received a payment of £192 for professional services to the charity (2020 £200). The average full tme equivalent employees during the year were : The average head count of employees during the year were : |
2021 2020 £’000 £’000 920 1,015 100 104 64 65 20 |
|---|---|
| 1,104 1,184 |
|
| 2021 2020 £’000 £’000 296 339 23 25 24 29 |
38 ANNUAL REPORT OF THE USPG TRUSTEES
16. Programmes with over £10k funding in the year
| 16. Programmes with over £10k funding in the year | 2021 |
| £ | |
| Rapid Response | 46,199 |
| ACM – Community Livelihoods/Integrated Programe | 40,797 |
| Leadership and theological educaton | 38,271 |
| CPM Prov Leadership Dev Initatve – Myanmar | 37,100 |
| Zimbabwe – Health Prog | 34,000 |
| CAPA – LEADERSHIP DEVELOPMENT & INITIATIVES | 31,327 |
| Zambia Gender Base Violence Prog | 30,000 |
| Exchanging Places | 25,654 |
| ACT – Health PMTCT | 25,000 |
| Jobarpur Community Health – CoB | 20,000 |
| Estate Community Development Mission – Diocese of Colombo | 18,000 |
| Abundant Life Human Rights Prog – IFI | 18,000 |
| Ant Human Trafcking Prog – Durgapur CNI | 16,000 |
| ACT Leadership Development – Zonal workshops | 15,000 |
| IpWA – Capacity Strengthening | 14,000 |
| Women Helpline Prog – Delhi Brotherhood DBS | 13,000 |
| Bollobhpur Hospital – CoB | 13,000 |
| Research JLI PARD | 11,389 |
| Green School Programme CSI | 11,000 |
| Contributon to Restricted Reserve | 10,735 |
| ACSA Prog Development(COTT,Zululand,Swaziland) | 10,400 |
| Church of Ceylon – Colombo Leadership Dev Support | 10,000 |
| Church of Pakistan – St Thomas Theological College | 10,000 |
| ACM – Leadership Development | 10,000 |
| Internal Province of Ghana – Capacity Strengthening | 10,000 |
| Church of Pakistan – Synod Contributon & Training Support | 10,000 |
| ACT – Tanzania Health Insttutons | 10,000 |
| Girl Child Campaign – Focus 9/99 (India) | 10,000 |
| Sarenga Community Health – caford CNI | 10,000 |
| Swaramptor Community Livelihood – CoB | 10,000 |
Our Programmes assist partners in the world church to respond to their strategic needs and priorities. These include programmes in Community Engagement & Health, Leadership, Strenghening capacity and locally identified initiatives. Emergency response grants are one off payments made in solidarity with partners who have had a natural or man-made emergency situation. These costs are a combination of unrestricted and restricted funds.
ANNUAL REPORT OF THE USPG TRUSTEES
39
17. Pension Scheme Arrangements
Financial Reporting Standard 102 (FRS 102) requires disclosure of the charity’s assets and liabilities of the USPG Overseas and Home Pension Scheme, both of which are defined benefits schemes. A qualified independent actuary has made the valuations based on the following assumptions:
| 2021 (%) 2020 (%) Discount rate 1.80 1.30 Infaton assumpton (RPI) 3.50 3.40 Statutory increases to deferred pensions (CPI) 2.85 2.75 Increases to pensions in payment : – RPI to a max of 5% (Home Scheme) 3.20 3.10 – RPI to a max of 2.5% (Home Scheme) 2.15 2.15 – CPI to a max of 5% (Overseas Scheme) 2.65 2.55 Post retrement mortality assumpton S3NA series tables with the CMI-2018 projectons using a long term improvement rate of 1.25% p.a. The inital additon is 0.25% p.a. S2NA series tables with the CMI-2016 projectons using a long term improvement rate of 1.25% p.a. Commutaton 75% of members are assumed to take the maximum tax free cash possible. 50% of members are assumed to take the maximum tax free cash possible Amount recognised in the Balance Sheet at 31 December 2020 Value at 31 December 2021 £’000 Value at 31 December 2020 £’000 Fair value of assets 13,897 11,728 Present value of funded obligatons (14,772) (16,515) (Defcit) (875) (4,787) Net defned beneft liability at 31 December before deferred tax (875) (4,787) Amount recognised in the Statement of Financial Actvites account over the year Value at 31 December 2021 Value at 31 December 2020 £’000 £’000 Administraton cost 103 - Interest on liabilites 213 292 Interest on assets (151) (237) Past service costs - 2 Setlement and curtailment cost - - Total 165 57 Analysed as follows, Value at 31 December 2021 Value at 31 December 2020 Employer contributon charged within Staf Costs and £’000 £’000 Support costs in Note 15 221 112 FRS 102 adjustment separately disclosed in Note 14 (56) (55) 165 57 |
2021 (%) 2020 (%) Discount rate 1.80 1.30 Infaton assumpton (RPI) 3.50 3.40 Statutory increases to deferred pensions (CPI) 2.85 2.75 Increases to pensions in payment : – RPI to a max of 5% (Home Scheme) 3.20 3.10 – RPI to a max of 2.5% (Home Scheme) 2.15 2.15 – CPI to a max of 5% (Overseas Scheme) 2.65 2.55 Post retrement mortality assumpton S3NA series tables with the CMI-2018 projectons using a long term improvement rate of 1.25% p.a. The inital additon is 0.25% p.a. S2NA series tables with the CMI-2016 projectons using a long term improvement rate of 1.25% p.a. Commutaton 75% of members are assumed to take the maximum tax free cash possible. 50% of members are assumed to take the maximum tax free cash possible Amount recognised in the Balance Sheet at 31 December 2020 Value at 31 December 2021 £’000 Value at 31 December 2020 £’000 Fair value of assets 13,897 11,728 Present value of funded obligatons (14,772) (16,515) (Defcit) (875) (4,787) Net defned beneft liability at 31 December before deferred tax (875) (4,787) Amount recognised in the Statement of Financial Actvites account over the year Value at 31 December 2021 Value at 31 December 2020 £’000 £’000 Administraton cost 103 - Interest on liabilites 213 292 Interest on assets (151) (237) Past service costs - 2 Setlement and curtailment cost - - Total 165 57 Analysed as follows, Value at 31 December 2021 Value at 31 December 2020 Employer contributon charged within Staf Costs and £’000 £’000 Support costs in Note 15 221 112 FRS 102 adjustment separately disclosed in Note 14 (56) (55) 165 57 |
2021 (%) 2020 (%) Discount rate 1.80 1.30 Infaton assumpton (RPI) 3.50 3.40 Statutory increases to deferred pensions (CPI) 2.85 2.75 Increases to pensions in payment : – RPI to a max of 5% (Home Scheme) 3.20 3.10 – RPI to a max of 2.5% (Home Scheme) 2.15 2.15 – CPI to a max of 5% (Overseas Scheme) 2.65 2.55 Post retrement mortality assumpton S3NA series tables with the CMI-2018 projectons using a long term improvement rate of 1.25% p.a. The inital additon is 0.25% p.a. S2NA series tables with the CMI-2016 projectons using a long term improvement rate of 1.25% p.a. Commutaton 75% of members are assumed to take the maximum tax free cash possible. 50% of members are assumed to take the maximum tax free cash possible Amount recognised in the Balance Sheet at 31 December 2020 Value at 31 December 2021 £’000 Value at 31 December 2020 £’000 Fair value of assets 13,897 11,728 Present value of funded obligatons (14,772) (16,515) (Defcit) (875) (4,787) Net defned beneft liability at 31 December before deferred tax (875) (4,787) Amount recognised in the Statement of Financial Actvites account over the year Value at 31 December 2021 Value at 31 December 2020 £’000 £’000 Administraton cost 103 - Interest on liabilites 213 292 Interest on assets (151) (237) Past service costs - 2 Setlement and curtailment cost - - Total 165 57 Analysed as follows, Value at 31 December 2021 Value at 31 December 2020 Employer contributon charged within Staf Costs and £’000 £’000 Support costs in Note 15 221 112 FRS 102 adjustment separately disclosed in Note 14 (56) (55) 165 57 |
|---|---|---|
| (875) (4,787) |
||
| (875) (4,787) |
||
| Value at 31 December 2021 Value at 31 December 2020 £’000 £’000 103 - 213 292 (151) (237) - 2 - - |
||
| 165 57 Value at 31 December 2021 Value at 31 December 2020 £’000 £’000 221 112 (56) (55) |
||
| 165 57 |
40 ANNUAL REPORT OF THE USPG TRUSTEES
| Remeasurements over the year Loss/(Gain) on scheme assets in excess of interest Experience (Gain)loss on liabilites (Gain) from changes to demographic assumptons (Gain)/loss from changes to fnancial assumptons Total remeasurements Reconciliaton of assets and Defned Beneft Obligaton The change in the assets over the period was: Fair value of assets at the beginning of the period Interest on assets Employer contributons Administraton cost Benefts paid Return on plan assets less interest Fair value of assets at the end of the period Actual return on assets The change in the Defned Beneft Obligaton over the period was: Defned Beneft Obligaton at the beginning of the period Current service cost Contributon by Scheme partcipants Past service costs Interest cost Benefts paid Change due to setlements and curtailments Experience (gain)/loss on defned beneft obligaton Changes to demographic assumptons Changes to fnancial assumptons Defned Beneft Obligaton at the end of the period Assets |
Value at 31 December 2021 Value at 31 December 2020 £’000 £’000 (2,177) (299) (406) 190 0 (200) (1,273) 2,482 |
|---|---|
| (3,856) 2,173 |
|
| Value at 31 December 2021 Value at 31 December 2020 £’000 £’000 11,728 11,401 151 237 221 112 (103) - (277) (321) 2,177 299 |
|
| 13,897 11,728 |
|
| 2,328 1,290 Value at 31 December 2021 Value at 31 December 2020 £’000 £’000 16,515 14,070 - - - - - 2 213 292 (277) (321) - - (406) 190 0 (200) (1,273) 2,482 |
|
| 14,772 16,515 |
|
The assets are invested with Legal & General Investment Management.
The assets do not include any investment in shares or property of the Employer.
ANNUAL REPORT OF THE USPG TRUSTEES 41
Relaunching Partners in Mission
USPG’s Partners in Mission scheme (PIM) launched in 2017 with the aim to re-engage lapsed churches and engage with new churches. However, since late 2019, PIM income fell significantly and accounted for only 5% of USPG’s income from churches and individuals.
India, Zimbabwe and Tanzania. The product retains its name but has been rebranded.
We have microsites for each partner country, each of which are regularly updated. We use updates from the Regional Managers in the Global Mission team as well as drip feeding information from the larger six-monthly PIM reports. The microsites also support both churches and individuals with their fundraising through downloadable resources as well as providing a specific area for them to pay in their fundraising as well.
Feedback from our supporters showed that they wanted more accessible PIM content including ‘real-time’ information from partners, including prayer requests. Supporters specifically pointed out that they often only have a few lines in a church newsletter to share about PIM, so they needed us to provide concise, engaging information. We reached a point where PIM needed a strategic review.
You can read more about the newly relaunched Partners in Mission scheme below.
Partners in Mission
Partners in Mission allows you to support one of seven churches around the world in serving their local communities in the love of Jesus. Each of our partner churches runs
In 2022, we re-launched Partners in Mission with a new and enthused approach focusing on seven key countries/areas: Malawi, Bangladesh, Sri Lanka, South India, North
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Schoolchildren in Sri Lanka, supported by the Church of Ceylon
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life-changing local programmes, responding to important needs such as food security, health inequality and gender-based violence. When you partner with a church, 100% of your donations will go towards funding these vital programmes.
And we’re currently working hard to make the scheme even more engaging and enable you, our generous Partners in Mission supporters, to really get to know your partners.
If you are already a Partner in Mission, you will now have access to a special website for your partner church, where you can find the latest programme updates, prayer requests and real stories from local people who lives have been changed by your donations. If you aren’t yet a Partner in Mission but want to be there are two ways to join: you can support a church partner as an individual, or you can join the scheme as a church to fund your partner’s vital programmes.
If you’d like to join Partners in Mission and start transforming lives across the world through God’s love, you can sign up at www.uspg.org.uk/partners-in-mission.
42 ANNUAL REPORT OF THE USPG TRUSTEES
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HARVEST
APPEAL 2022
Growing
Futures
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Help raise money for The Anglican Council of Malawi through our Growing Futures Harvest appeal.
Your donations will provide life-changing training in sustainable farming skills and environmental management to local small-holders. Groups also receive the equipment and resources they need to provide fresh food for their families.
And this has a long-lasting effect. Once they are well-fed at home, children will no longer have to go to school hungry. They are more likely to finish school and be set up for success later in life.
Support small-holder farmers in Malawi to change their lives. Donate to our Growing Futures Harvest appeal. Visit www.uspg.org.uk/harvest or scan the QR code to find out more and support our Harvest appeal.