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2020-12-31-accounts

INTERNATIONAL FELLOWSHIP OF EVANGELICAL STUDENTS

ANNUAL ACCOUNTS AND TRUSTEES REPORT 2020

Auditors

CROWE U.K. LLP Aquis House 49-51 Blagrave Street READING RG1 1PL

International Fellowship of Evangelical Students is a UK charity no 247919 and a limited company, registered in England and Wales no 876229 Registered office: 5 Blue Boar Street, Oxford, OX1 4EE

REFERENCE AND ADMINISTRATIVE DETAILS

The company is limited by guarantee and does not have a share capital. The company’s full name is International Fellowship of Evangelical Students, referred to herein as IFES (UK). Its registered company number is 876229 and registered charity number 247919. The registered office is 5 Blue Boar Street, Oxford OX1 4EE.

BOARD AND FINANCE COMMITTEE

The Directors set out below, who also act as trustees for the charitable activities of the company, are:

Mr Septi Bukula (Chair) Ms Vira Diukanova Dr Janet Epp Buckingham Mrs Renee Gibson Ms Valerie Goold Mrs Fatouma Gouda Sare Keita Rev Riad Kassis Mr Reji Koshy Daniel Mrs Mi Sook Lim Rev Samuel McCook Ms Margaret Akoth Muga Rev Christian Rasmussen – appointed 29 May 2020 Mr Gavin Rothwell Mr Greg Smith (Treasurer) - appointed 29 May 2020 Mr Vinicio J Zuquino Barrientos

The members of the company appoint the Directors.

Members of the Finance Committee who served during the year are:

Mr Septi Bukula Dr Nishan de Mel Mrs Eleanor Ehresman Ms Deborah Kong Mr Greg Smith (committee Chair) Mr Jamil Chabouh (Acting General Secretary – ex-officio, non-voting) Mr Nicholas Addo (Chief Financial Officer – ex-officio, non-voting) Mr Timothy Adams (Associate General Secretary – ex-officio, non-voting) Mr Martin Haizmann (Associate General Secretary – ex-officio, non-voting)

OFFICERS

Acting General Secretary (till 31 December 2020) General Secretary (from 1 January 2021) Company Secretary

Mr Jamil Chabouh Mr Timothy Adams Mr Nicholas Addo

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RELEVANT ORGANISATIONS

Bankers National Westminster Bank plc 315 Station Road HARROW Middlesex HA1 2AD

Solicitors Anthony Collins Solicitors St Philips Gate 5 Waterloo Street BIRMINGHAM B2 5PG

Barclays Bank plc UK Retail and Business Banking Multi Client Servicing LEICESTER LE87 2BB

Auditors Crowe U.K. LLP Aquis House 49-51 Blagrave Street READING RG1 1PL

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REPORT OF THE TRUSTEES OF THE INTERNATIONAL FELLOWSHIP OF EVANGELICAL STUDENTS

For the year ended 31 December 2020

The trustees of the International Fellowship of Evangelical Students – IFES (UK) – have pleasure in presenting their annual report and the audited accounts for the year ended 31 December 2020.

References to IFES refer to the combined activities of IFES (UK) and IFES (Switzerland). The trustees confirm they have complied with their duty under section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

I OBJECTIVES AND ACTIVITIES

MISSION STATEMENT

The objects of IFES are to advance the Christian faith by:

IFES VISION TO 2020 – LIVING STONES

The IFES vision to 2020 has been called Living Stones, based on a verse in 1 Peter: As you come to him, the Living Stone – rejected by human beings but chosen by God and precious to him – you also, like living stones, are being built into a spiritual house to be a holy priesthood, offering spiritual sacrifices acceptable to God through Jesus Christ. 1 Peter 2:4-5 (TNIV)

We want to nurture and train students to be “living stones”, equipped to creatively engage the university and to take their place in that “spiritual house”. The Living Stones vision is to double the number of active, committed members of IFES groups who are influencing their universities and societies for Christ.

To achieve this goal, we adopted six key strategic priorities, each of which has at its heart the aim of releasing student initiative.

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Every aspect of IFES ministry is undergirded by three core commitments: scripture engagement, community and prayer .

A new strategy is being prepared to take IFES beyond the period of the Living Stones vision. Consultation with national movements for the new strategy started at the World Assembly in 2019. Further work has been done to take account of the implications of the global Coronavirus pandemic for student ministry. The new strategy for the next 10 years will be shared with the Fellowship in the second quarter of 2021.

PUBLIC BENEFIT

The overall objective of IFES is to help students bear witness to Christ and his teaching, applying it to every aspect of life in every area of society. In 2020 perhaps more than in any other year, there has been ample opportunity for staff and students of IFES national movements to express their faith in practical acts of service in their local communities.

As countries went into varying degrees of lockdown in March 2020 in the face of the growing COVID-19 emergency, IFES movements quickly identified ways to serve their local communities. Here are just a few examples from different parts of the world.

IFES works worldwide, wherever there are universities in whichever countries we have permission to enter. We believe in indigenous leadership and strive to ensure that, where possible, movements are led by nationals who understand the local context. There are no membership fees and anyone who is interested is welcome to join in all activities. While we would like everyone to embrace Christian values and beliefs, we respect the rights of others to hold differing viewpoints and would never coerce acceptance of our views.

II ACHIEVEMENTS AND PERFORMANCE

No one anticipated how student ministry would change in 2020 in the light of the COVID-19 pandemic but IFES helped national movements move forward. Looking back, 2020 was not merely a year of survival, but of innovation and growth.

Nothing expressed this better than the “Our Mission Continues” campaign, launched in March to share the stories of national movements continuing to reach students even in the global pandemic. We heard stories of students in Nepal finding any means to continue meeting

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online despite shaky internet. We were inspired with practical tips for converting events to webinars and even heard from Christian students contributing to COVID-19 research.

Through it all, we kept then Acting General Secretary Jamil Chabouh’s words in the forefront of our minds: “This virus is very contagious. So is panic, fear, anxiety, discouragement. But also calm, peace, trust, grace, love, and kindness. We must choose wisely what we want to spread around us.”

And truly, IFES kept the peace of Christ at the centre of our witness. This attitude of grace was explicitly expressed through a global day of prayer in May, where students, staff, and supporters from around the world gathered on video calls over the course of the day to pray for IFES ministry and to hear how students and staff were continuing the mission. The day was a powerful expression of our unity as a fellowship and the importance of keeping prayer at the centre.

We are thankful for God’s continued blessing, despite the challenges of 2020. With grateful hearts, we share some of the many ways that he has allowed us to continue our mission over the past year.

EVANGELISM

CARRYING ON UNDER COVID

In Innovation

This year national movements innovated new ways to continue ministry. In Latin America, CECE Ecuador changed their approach by starting weekly online workshops and using paid social media promotion to reach students in new cities. With their new contacts, they created a series of training for students interested in planting a university group Bible study on their campus. They are also preparing to launch a new evangelism tool called the InstaProxi, through which participants can invite their followers to have a spiritual conversation on Instagram.

In Outreach

The ups and downs of the pandemic led many to put their faith in Jesus. In the spring, InterVarsity/USA groups in New York and New Jersey saw record-breaking numbers of students come to Christ in the span of one week.

“We've seen an increased openness that the quarantine season has caused. I think they're asking questions about identity, about places of security and I think that's created a lot of space for students to want to engage with Christ.” Douglas Paillere, staff worker, InterVarsity/USA

In Prayer

The pandemic has pushed groups to be fervent in prayer. When the CARIFES regional missions conference was cancelled, the region planned 40 days of prayer instead. Groups

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prayed individually throughout the week and then gathered as an entire region to pray together on a weekly Zoom call.

INTERNATIONAL STUDENT MINISTRY (ISM)

Ministry to international students continues to grow even in a global pandemic. This year new groups were started by ChSA Poland, OSCER Romania, and KFS Denmark with a specific focus on students studying outside their home countries. The personal connections made in small groups were a huge blessing to those feeling lonely. There were many creative online and outdoor activities to provide face-to-face connections.

“I was impressed by my ISM group in spring lockdown. It’s always good to have a community and network and something regular to look forward to and help you remember what day of the week it is.” International student

This year international students also faced pressing physical needs due to the pandemic. Many were unable to afford

food and rent during the lockdown. In the South Pacific region, AFES Australia met these needs by distributing care packages with food, information about FOCUS (their groups for international students), and a gospel.

To read more stories about international student ministry, visit ifesworld.org/evangelism.

PIONEERING

This year IFES continued to help pioneering efforts, even in COVID-19 conditions. When Aida Banyuls who is pioneering student ministry in Equatorial Guinea, became stranded in Spain, she continued her work from there, taking part in online events for Spanish students, mobilizing students to pray for Equatorial Guinea, and reaching out to students from Equatorial Guinea who were studying outside of their country.

Pioneering continued elsewhere in the world, like Latin America, where Pablo Galaz marked one year of pioneering ministry in a new region for GBU Chile in Patagonia. Pablo has spent a large portion of his time driving long distances in the region, helping pastors and leaders understand the value of student ministry. He has also invested in a student, Nicholas, who is now helping Pablo reach more students.

Since it was launched in 2018, the IFES Breaking New Ground project has given 93 grants to support the start of 497 new groups in 67 countries. While no grants were disbursed in the 2020 calendar year, Breaking New Ground continued to offer support and training to the network of pioneers. The group had planned to have a 2020 gathering in Ireland but it was postponed. Instead, the network met virtually for a time of fellowship and sharing updates.

To read more stories about pioneering, visit ifesworld.org/pioneer.

REVIVE

Just weeks after the IFES Europe student evangelism conference Revive 2019 , the pandemic hit Europe. Students who had attended the conference reached out to the Revive leaders, asking for a virtual day of prayer. In March, more than 250 people from Europe and beyond gathered on a Zoom call to pray for God to move in Europe during the crisis. They heard testimonies from the hardest hit regions and broke into small groups for prayer. After the

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event ended, many students stayed on the call for two extra hours, pulling out drums and guitars for a post-prayer jam session.

Students were so moved by the meeting that organisers planned a second one – inviting Professor John Lennox to speak on the topic of his book, Where is God in a Coronavirus World? John Lennox is a mathematics professor from the University of Oxford who is renowned for integrating faith with science and philosophy.

The next Revive conference is planned for December 2021.

FEUER CONFERENCE

This year IFES national movements have partnered for evangelism through the Fellowship of Evangelists in the Universities of Europe (FEUER). This IFES-led network has seen hundreds of mission weeks held in universities across 40 countries with a growing team of evangelists equipped to speak at them. In November they organized a conference with 550 participants from 62 countries. The online format allowed the participation of a wider reach of countries outside of Europe including Burkina Faso, Mexico, Argentina, and Nepal. During the event,

hundreds of students and staff logged on to hear evangelistic presentations from professors, professionals, and preachers from around the world.

As a result of these presentations, a Serbian professor came to faith. He had been invited to give feedback from a non-Christian perspective, not knowing that the week would change his life. Now, other evangelists are calling him a Serbian John Lennox, after the British academic and apologist. He is now part of a group learning to preach.

During the conference, groups from Ukraine and Israel shared how they have been creatively using Instagram to post short evangelistic talks. They were inspired by the Scottish Christian students who had hosted a whole week of events for every university in the country.

LEADERSHIP DEVELOPMENT

IFES believes that the leaders of tomorrow are students today. The following examples show the strategic ways that IFES develops students, graduates, and staff for ministry. To read more examples of leadership development within IFES, go to ifesworld.org/leadership.

GLOBAL LEADERSHIP INITIATIVE

The Global Leadership Initiative mentors promising young leaders within national movements. These are people who already have proven integrity, commitment, faithfulness, and maturity in their ministry. It gives them exposure to the global Fellowship within a group of 20 other leaders from around the world.

This year the Global Leadership Initiative (GLI) continued to journey with their second cohort, which consists of 21 young leaders from all eleven IFES regions. After an informal meeting at World Assembly in 2019, the cohort was able to meet again in Ukraine in March (see photo). It was the last in-person IFES international gathering before the world went into lockdown. Because her country’s borders closed, one Mongolian participant was unable to return home until July.

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The final GLI gathering was due to happen in September 2020 but had to be postponed. Online one-to-one mentoring has continued with all the participants and as soon as possible, they will meet for the final gathering.

GLI is equipping a pool of leaders who will be available to take on responsibilities in regional or global projects and positions. Three people from this initiative have been invited to join the program planning team for the next IFES World Assembly in 2023 in Indonesia. On the national level, several previous participants have become staff workers in their movements.

IFES EAST ASIA CONFERENCES

In East Asia, conferences to develop and unite students continued online. While the 2020 East Asia Regional Conference (EARC) was cancelled in person, 900 students attended a two-day online conference in July. The theme “Unfinished ” was an expository study on Ezekiel, looking at the unfinished task ahead of reaching the world with the gospel. EARC is rescheduled for 2024 in Thailand.

The first East Asia Staff Conference was to have been held in 2020, but it was postponed until February 2022 as it was decided that this needs to happen in-person. FES Malaysia will host this conference which is expected to gather 300 staff for the theme “Towards a New Horizon.”

EURASIA INSTITUTE

Usually, the Eurasia Institute is a residential training program run over several weeks in early summer. Because of the pandemic, the regional team decided to reshape it into monthly online sessions. The meetings focused on discipleship, a timely topic since the region was concentrating on small groups and one-to-one relationships during the pandemic. The program looked at biblical examples of discipleship and trained students to preach the gospel and build relationships with students from other cultures and religions.

STRENGTHENING AND SUPPORTING NATIONAL MOVEMENTS

VIRTUAL SOLUTIONS FOR COVID-19

No one anticipated how student ministry would change in 2020, but IFES helped national movements and regional teams not only to survive, but to innovate and grow.

E-learning

E-learning courses helped students and staff creatively adapt to an unpredictable environment. After participating in the Engaging the University online course, Janet, a Malaysian international student in CUI Ireland was inspired to organize an online discussion night over a popular TV series, incorporating the theme of unconditional love. Janet said that she was grateful for the e-learning format of the course because it put her in contact with other students who understood the frustrations of taking ministry online.

“With the pandemic, it is a bit harder to do outreach now. But the course has been so helpful. I met other people who had also set up student groups around the world and we talked about how hard online ministry is sometimes. I got really encouraged by that and I was able to encourage others as well.”

Online Events

We have created web-based programs to continue sharing ideas across the international network. So far, webinars have been held for Scripture Engagement, Indigenous Support Development, and Governance Development.

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Regional teams and national movements followed suit, turning small, local events into national, regional, and even global virtual gatherings. Students and staff were able to fellowship with each other through web-conferencing platforms in ways not imagined before.

SOLIDARITY FUND - SUPPORTING NATIONAL MOVEMENTS DURING COVID-19

The Solidarity Fund gave opportunity for IFES staff and national movements to support other movements facing financial challenges during COVID-19. The fund disbursed small grants to help with ongoing operational and ministry costs. Fifteen grants were given, mostly to movements in Francophone Africa and Latin America.

For SULTAM Lesotho, the grant covered daily expenses like communication and electricity, and provided for staff workers.

“The grant is going to help us reinstate our staff workers who we could not pay due to financial constraints. Staff workers will be able to put bread on the tables of their families for the well-being of the family. And with more hands in place, we will be able to cover more campuses at a go and ministerial goals will be achieved.” Staff worker, SULTAM Lesotho

The fund will continue to provide assistance for struggling movements in 2021.

INDIGENOUS SUPPORT DEVELOPMENT (ISD)

The first ISD e-learning course, ‘Introduction to Indigenous Support Development,’ launched in September 2019 in English and French, with further releases in Spanish, Russian, and Portuguese throughout 2020. This is an important milestone in multiplying the impact of ISD and many national movements are already seeing the benefits. The e-learning format allowed the course to continue during the year, giving movements training to help them continue to develop partnerships during the crisis.

ISD has also made it possible for movements to support each other. From September to December, national movements in Eurasia raised $1,270 to help CSC Moldova pay staff salaries.

GOVERNANCE DEVELOPMENT

In 2020, Governance Development training continued to help national movements establish and maintain healthy governance structures. Though all initial training was postponed during the year, the team was still able to conduct nine online follow-up visits, one coaching session, and several consulting sessions with various national boards.

Six regions hosted Matt.25 eForum events, online events that combined the basic elements of governance training, practical ideas and solutions for boards functioning in the COVID-19 context. Responding to the success of the eForum in Eurasia in November 2020, board members expressed a desire for a follow-up edition in 2021. Plans are also being made for another forum in Latin America.

Governance Development e-learning courses were also helpful throughout the year. In 2020, a total of 18 cohorts participated in these courses. A new course will launch in April 2021 called “Passing the Torch - Make change a positive experience."

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SCRIPTURE ENGAGEMENT

Scripture Engagement efforts also explored new online formats this year. In the South Asia region, a series of webinars ran under the theme: “The Word among us - The Groans of Life and the God on the Cross.” Participants used psalms of lament to explore how they can transform their minds to face the challenges of life and bring hope to their contexts.

“God has refreshed the Scriptures in my life. His vision has been refreshed in me. Growing through this Scripture Engagement webinar was a source of motivation for missionary work.” Staff worker, South Asia

Since the pandemic forced movements to quickly change their ministry approach, it was important to share new ideas with each other. In the Latin America region, IFES movements learned from each other by creating forums to share their best practices.

One new idea came from ABUB Brazil, which created a series of Bible studies addressing the topic of fake news. A multidisciplinary team of students, staff, volunteer staff and university professors worked together to prepare 12 Bible studies on the topic. The initiative gave movements a concrete example of how to biblically address a current challenge.

ENGAGING THE UNIVERSITY

The university is the place where people engage with big questions. Through teaching, research, disciplinary dialogues and discussions, IFES supports students, faculty, and researchers to join and re-orient conversations across the academic world. This has continued online during 2020. So far, three learning cohorts of 490 learners from 80 countries have completed the “Introduction to Engaging the University” e-learning course.

A significant development in 2020 has been the setting up of the Logos and Cosmos Initiative, a five-year program that will focus on mentoring students, staff, and academics in Latin America and Francophone Africa. Partly funded by the Templeton Foundation, the project will equip and fund participants to carry out projects in the university that foster dialogue between theology and the sciences, both social and natural. Beginning in 2021, it is an extension of our commitment to impact all of society for the glory of Christ.

For more information visit lci.ifesworld.org/.

INTERNATIONAL SERVICES

The International Services team, working from offices in the UK, Malaysia, and the USA, provides coordination and support services for the global Fellowship. In recent years we have increasingly moved towards use of cloud-based technology that allows us to collaborate across the three offices. This meant that we were well-placed to continue with minimal disruption to services when staff in all three locations were required to work from home in March 2020. A few staff in the UK office were put on furlough for varying lengths of time. The UK government support scheme was particularly welcome in providing support for the facilities management positions while the office was closed.

Recognising a need to invest intentionally in global and regional staff care and development, a new senior management role was created during the year with the appointment of John Criswell as Head of People and Culture. In preparation for the new post, a number of surveys were conducted amongst staff and national movements in order to identify areas that should be given priority attention.

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FUNDRAISING

IFES is committed to the highest standards in fundraising. We seek to work to the highest level of transparency and integrity towards all who engage with the charity, including those who give to our work.

Recognising our dependence on voluntary income, IFES aims to inspire and encourage others to give in support of our work. IFES takes great care in our communications with supporters and donors. At all times we will ensure that we are respectful, open, honest, and accountable to our supporters and donors. In our approach to potential donors, we will never subject anyone to pressure or a ‘hard sell’ and treat individuals with dignity and respect.

We are aware that some of our donors may be older, potentially vulnerable adults. IFES has guidance and training for staff on identifying vulnerable older donors and how to work with them in a way that maintains their dignity.

All fundraising activity is carried out by a small in-house supporter relations team based in the UK, USA and Malaysia, managed by the Chief Advancement Officer. The US team operates through IFES/USA, a separate entity and registered 501(c)(3) non-profit organisation in the USA. No professional fundraiser or commercial participator was used during the year.

In the UK we are registered with the Fundraising Regulator and we follow the Regulator’s Code of Practice when raising funds, taking all reasonable steps to protect vulnerable people from persistent approaches, unreasonable intrusion or undue pressure. In the US, IFES/USA, a separate but related non-profit is an accredited member of the Evangelical Council for Financial Accountability and a valued partner with GuideStar Exchange.

In the year under review, no complaint was received from any member of the general public regarding our fundraising activities.

IFES LEADERSHIP

Throughout 2020 while the search process continued for a new General Secretary, Jamil Chabouh served as Acting General Secretary, supported by Associate General Secretaries Tim Adams and Martin Haizmann.

At the end of 2019, a Discernment and Search Committee started the process to identify a new General Secretary. A thorough search process continued throughout the first half of 2020 and final candidates were recommended for interview by the Board. When it became apparent that it would not be possible to meet the candidates in person, the Board agreed to conduct the interviews virtually. In order to honour the IFES Constitution which requires that member movements confirm the Board’s appointment of a General Secretary, an online poll was conducted, resulting in strong affirmation of the appointment of Tim Adams as the fifth General Secretary of IFES.

Tim’s appointment took effect on 1 January 2021. He has a 22year history with IFES, giving him the experience and insight to serve the global student ministry. Since being appointed as Associate General Secretary in 2014, Tim has been central to the development and launch of a number of innovative ministry projects. He well understands the diverse cultural contexts in which IFES operates and has strong relationships with leaders around the world. We are thankful to God for providing Tim to serve as IFES General Secretary at this point in our history.

Unusually the Board and its sub-committees were unable to meet in person during the year. However, meetings continued on Zoom, making use of technology to keep connected. Following consultation with member movements, two new Board members were appointed in May, filling vacancies that had been left in 2019. The

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Board now has a full complement for the remainder of its term up to World Assembly 2023 and members are eagerly anticipating being able to meet in person as soon as travel restrictions are eased.

LOOKING AHEAD

STRATEGY DEVELOPMENT

As we anticipate a post-pandemic return to in-person meetings and real-world interaction, we will be giving careful consideration to the lessons we have learned over the past year. We have found that many activities can be successfully done online, and we have discovered which aspects of our ministry particularly suffer when we are unable to meet in person. We do not assume that everything will return to the same as it was before the pandemic and we will seek to integrate the experiences of the past year into our ministry and activity plans for the future.

As mentioned above, the period of the Living Stones vision has now come to an end and work is underway to articulate a strategy that will guide our work in the next 10 years. Extensive consultation over past months has allowed national movements and other stakeholders to contribute to the process. The new strategy will be communicated to the Fellowship in the second quarter of 2021.

III GOVERNANCE

RISK MANAGEMENT, PRINCIPLE RISKS AND UNCERTAINTIES

The Finance Committee supports the Board by reviewing the risk register and providing advice on risk management. The risk register is regularly updated to reflect developments in ministry and changing circumstances. Many of the major risks identified continue to be relevant, such as failure of governance leading to a loss of focus and/or non-achievement of the vision, travel risks, adverse publicity that could discredit the organisation, and failure of information and technology systems.

As an organisation which is entirely funded by voluntary giving and which operates globally, we face ongoing challenges such as over-reliance on a small number of large donors from one country, currency rate movements, the risk of cyber fraud, and the potential impact on our work of volatile political and economic situations as well as the current challenges presented by the Coronavirus pandemic in restricting travel and in-person gatherings.

Training is provided to all staff to ensure appropriate handling of personal data and awareness of the risk of cyber fraud and cyber security.

As trustees, our overall assessment is that adequate control measures are in place for all known risks and that proactive monitoring by senior managers is sufficient to ensure that any major new risks are identified and brought to our attention.

PAY POLICY FOR SENIOR MANAGEMENT

The IFES board of directors, who are also the trustees, and the IFES senior staff team comprise the key management personnel in charge of directing, controlling, and running the operations of IFES (UK). All directors give their time freely and no director received remuneration in the year.

The pay of the staff team is reviewed annually and normally increased in line with UK inflation. Given both the global spread of IFES staff and the university focus of our work, the directors consider remuneration packages of local IFES national movements, university

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lecturers and NGOs of similar size when determining pay packages for senior regional and international staff.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The company’s governing document is its Articles of Association. On appointment, members of IFES (UK) must signify in writing their agreement with the doctrinal basis of the company.

STRUCTURE AND DECISION-MAKING PROCESS

The company is overseen by its board of directors and is managed by the senior officers of the company. The directors of the company are the same as those of IFES (Switzerland). For internal organisational purposes, IFES divides the world into eleven regions. The ministry in each region is directed by a regional secretary who manages expenditure in their region. For each region, the direct charitable expenditure represents staff, projects and events located in the region and focused on working towards the objectives of IFES as laid out in this report.

APPOINTMENT, INDUCTION AND TRAINING OF TRUSTEES

The process for the appointment and training of trustees mirrors that of IFES (Switzerland).

RELATED CHARITY

IFES (UK) has a related charity, International Fellowship of Evangelical Students, which is registered in Switzerland. Its principle contact address is 4 Avenue de Provence, 1007 Lausanne, Switzerland.

Transactions between IFES (UK) and IFES (Switzerland) during 2020 have been reflected in the notes to the accounts (2019 – $862,474).

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STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also directors of IFES (UK) for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

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

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as the directors are aware, there is no relevant audit information (information needed by the company’s auditors in connection with preparing their report) of which the charitable company’s auditors are unaware; and each director has taken all steps that they ought to have taken as a director in order to make themselves aware of relevant audit information and to establish that the charitable company’s auditors are aware of that information.

TAXATION STATUS OF THE COMPANY

The company, as a charity, registered number 247919, is exempt from taxation under Section 360 of the Income and Corporation Taxes Act 1988.

FINANCIAL REVIEW

The results of the company for the year ended 31 December 2020 are set out in the accounts on pages 22 - 43.

In comparison with 2019 when two major events generated income of approximately US$2.5 million, the effect of COVID-19 and the absence of any major events in 2020 resulted in a 30% drop in income. Not surprisingly, total expenditure was also reduced by 38% as programs were adjusted to accommodate an anticipated drop in income and the need to move many activities online in response to the global lockdown. Thankfully we ended the year with a net surplus of US$303,000, in part due to an unexpected increase in legacy income.

As a fellowship we regularly make grant payments through national movements’ funds. These are donations for activities that are not part of IFES core activities but are within IFES charitable objects. Payments made to national movements and other external bodies are treated as grants and are included in the “grants payable” figure of US$2.6 million. In addition to the usual level of grants, in 2020 we made grants totalling US$66,000 to 18 national

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movements adversely impacted by the pandemic. IFES makes these grants on a request basis after deduction of a service charge. Recipients are expected to make their own arrangements with local tax authorities to ensure that they meet their responsibilities in that area.

The Fellowship operates a defined contribution pension scheme for its staff in the UK and a retirement savings plan for its overseas staff. The UK scheme is an approved scheme with Royal London and is open to employees who are subject to UK tax. The overseas scheme is a savings plan set up for overseas staff of member agencies of Global Connections. Funds in the overseas scheme are managed by Zurich International. Pension costs charged in the Statement of Financial Activities represent the total contributions payable by the Fellowship in the year.

THANKS TO ALL OUR PARTNERS

IFES would like to express our deepest gratitude for every gift received in 2020. We are thankful for all who supported IFES ministry with prayer, volunteering, or finances throughout the year.

We would like to thank trusts and foundations who, identifying the strategic nature of student ministry, awarded capacity-building, project-specific and general operating grants of up to $1,000,000 in the reporting period. In addition, supporting churches have given generously to specific staff, national movements and projects; without the money, personnel and prayer that these partnerships represent, our work would be impossible. Finally, we acknowledge the wonderful supporter base we have around the world: individuals who see what God is doing through this ministry and regularly pray and give towards the work. Since we are unable to meet everyone face-to-face, we take this opportunity to say thank you in this report.

Under the terms of their grant, we specifically acknowledge a gift from the EvangelicalLutheran Church of Wuerttemberg (Germany) of €11,000 (US$12,807) towards student ministry in Europe.

RESERVES POLICY

IFES holds reserves for the following reasons:

  1. to protect the continuity of work in the event of a significant fall in income

  2. to fund periodic shortfalls in income compared to expenditure

  3. to set aside funds to invest in the longer-term development of the organisation, as well as meeting its constitutional obligations to hold a World Assembly every four years

We have set a target range for the free reserves to be between 10% and 25% of the annual operational budget. The 2021 budget for IFES would require a free reserves figure between US$350,000 and US$875,000. At the end of 2020, total unrestricted funds for the group stood at $2.8 million but with tangible fixed assets valued at approximately $2.9 million, the group ended the year with negative free reserves of $100,000.

As trustees of both IFES UK and IFES Switzerland, a related body, we have regularly reviewed our reserves policy by combining the finances of the two entities. Taking into account the free reserves of US$418,000 in IFES Switzerland, we are therefore able to report overall positive free reserves of US$318,000. Senior management continue to work closely with the Board to ensure that we continue to build up our free reserves.

INVESTMENTS

The IFES Board approved a revised Reserves and Investment Policy in 2018. The investment policy states that any investment in stocks and shares should be in funds that meet our

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 1 6

ethical standards, using a combination of negative screens to eliminate areas such as tobacco, alcohol, armaments and gambling, and positive screens to favour businesses with a good record on corporate social responsibility or that are involved in environmentally-friendly or low-carbon industries.

The charity holds funds in the following institutions: US Bank, NatWest, Barclays Bank Plc, Santander and CAF Bank. It seeks to ensure that the Fitch short term debt rating for institutions where it holds funds is F1+.

There are no restrictions on the Fellowship’s power to invest.

APPOINTMENT OF AUDITORS

The auditors, Crowe U.K. LLP, will be proposed for reappointment in accordance with Section 485 of the Companies Act 2006.

The Trustees Report and the Strategic report have been approved

BY ORDER OF THE BOARD

SEPTI BUKULA Chair of the Board

5 Blue Boar Street, Oxford OX1 4EE

Date: 29 May 2021

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF INTERNATIONAL FELLOWSHIP OF EVANGELICAL STUDENTS

OPINION

We have audited the financial statements of International Fellowship of Evangelical Students (‘the charitable company’) for the year ended 31 December 2020 which comprise Consolidated Statement of Financial Activities, the Group and Company Balance Sheets, the Consolidated Cash Flow and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 charitable company's or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

OTHER INFORMATION

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

Our responsibility is to read the other information and, in doing so, consider whether the other

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 1 8

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

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

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

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 1 9

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were Charity Commission regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of income, in particular donations and legacies, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, sample testing of documentation relating to income and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 2 0

USE OF OUR REPORT

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

Alastair Lyon

Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

Reading

7 June 2021

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 2 1

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) for the year ended 31 December 2020

Note
INCOME AND ENDOWMENTS
FROM:
Donations and legacies
2
Fundraising and other trading
activities
Investments
Charitable activities
3
UK Government grant
Other sources
TOTAL
EXPENDITURE ON:
Raising funds
5
Charitable activities
Student ministry
4
TOTAL
9
Net income/(expenditure)
Before transfers
Transfers between funds
16,17
Net movement in funds
Balances brought forward at 1
January
Balances carried forward at 31
December
16,17		 Unrestricted
Restricted
Total
Funds
Total
Funds
Funds
2020
2019
US$
US$
US$
US$ 1,405,497
4,371,526
5,777,023
7,549,562
19,058
3,863
22,921
58,824
7,212
-
7,212
23,034
811
128,313
129,124
1,063,424
28,782
26,372
55,154
-
132,689
13,862
146,551
77,900
1,594,049
4,543,936
6,137,985
8,772,744
406,173
3,659
409,832
436,546
1,195,804
4,229,268
5,425,072
8,913,010
1,601,977
4,232,927
5,834,904
9,349,556
(7,928)
311,009
303,081
(576,812)
492,969
(492,969)
- -
485,041
(181,960)
303,081
(576,812)
2,337,299
3,959,832
6,297,131
6,873,943
2,822,340
3,777,872
6,600,212
6,297,131

A breakdown by fund type of the 2019 figures is provided under note 8.

The company has no recognised gains or losses other than those shown on this page. The notes on pages 26 to 43 form part of these accounts.

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 2 2

BALANCE SHEET as at 31 December 2020 Company number: 876229

FIXED ASSETS
Tangible assets
10
Investments
11
Debtors: Amounts falling due after
one year
12
CURRENT ASSETS
Debtors
12
Cash at bank
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
Total assets less current
liabilities
Creditors: Amounts falling due after
one year
14
NET ASSETS
FUNDS
Restricted funds
16
Unrestricted funds
17		 Group
2020
2019
US$
US$ 2,903,858
2,994,491
-
-
2,903,858
2,994,491
105,476
165,773
918,537
1,630,218
3,060,275
2,438,747
3,978,812
4,068,965
(321,135)
(867,096)
3,657,677
3,201,869
6,667,011
6,362,133
(66,799)
(65,002)
6,600,212
6,297,131
3,777,872
3,959,832
2,822,340
2,337,299
6,600,212
6,297,131		 Charity
2020
2019
US$
US$ 2,836,848
2,905,430
1
1
2,836,849
2,905,431
105,476
165,773
907,155
1,614,724
3,026,544
2,373,420
3,933,699
3,988,144
(316,716)
(848,742)
3,616,983
3,139,402
6,559,308
6,210,606
(66,799)
(65,002)
6,492,509
6,145,604
3,725,437
3,907,397
2,767,072
2,238,207
6,492,509
6,145,604		 Charity
2020
2019
US$
US$ 2,836,848
2,905,430
1
1
2,836,849
2,905,431
105,476
165,773
907,155
1,614,724
3,026,544
2,373,420
3,933,699
3,988,144
(316,716)
(848,742)
3,616,983
3,139,402
6,559,308
6,210,606
(66,799)
(65,002)
6,492,509
6,145,604
3,725,437
3,907,397
2,767,072
2,238,207
6,492,509
6,145,604
2,905,431
165,773
1,614,724
2,373,420
3,988,144
(848,742)
3,139,402
6,210,606
(65,002)
6,145,604
3,907,397
2,238,207
6,145,604

Approved by the Board of Directors on 29 May 2021 and signed on its behalf by

Director

The notes on pages 26 to 43 form part of these accounts.

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CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2020

Cash flows from operating activities:
Net movement in funds
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Gain on disposal of fixed assets
Depreciation
Investment income
Revaluation and exchange (gains)/loss
Net cash provided by operating activities
Cash flows from investing activities
Interest and other investment income received
Proceeds of disposal
Purchase of tangible fixed assets
Net cash (used in) investing activities
Cash flows from financing activities
New capital revolving fund loan made
Repayments of capital revolving staff loans
Repayment of loans
Net cash (used in) financing activities
Change in cash and cash equivalents in the year
Movement in cash and cash equivalents
Increase/(decrease) in cash in the year
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
Analysis of cash and cash equivalents
Cash in
hand
Notice deposits (less than 3 months)
Other currency holdings
Net Cash		 2020
US$
303,081
718,861
(545,965)
483
124,575
(7,212)
(4,255)
589,568
7,212
-
(34,425)
(27,213)
(50,000)
109,299
(126)
59,173
621,528
2020
US$
621,528
2,438,747
3,060,275
2020
US$
68,283
2,774,040
217,952
3,060,275		 2019
US$ (576,812)
74,549
155,233
859
109,544
(23,034)
(593)
(260,254)
23,034
1,707
(109,643)
(84,902)
(76,755)
22,063
(127)
(54,819)
(399,975)
2019
US$ (399,975)
2,838,721
2,438,747
2019
US$ 19,738
2,207,380
211,629
2,438,747

The notes on pages 26 to 43 form part of these accounts.

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 2 4

CONSOLIDATED STATEMENT OF CASH FLOWS (continued) For the year ended 31 December 2020

Analysis of changes in net debt

nalysis of changes in net debt
Cash
Cash equivalents
Loans falling due within one year
Loans falling after more than one year
Total		 At
1 January
2020
Cashflow
Foreign
exchange
movements
At
31 December
2020
231,367
54,868
286,235
2,207,380
566,660
2,774,040
2,438,747
621,528
-
3,060,275
(132)
(4)
(136)
(65,002)
(1,797)
(66,799)
2,373,613
619,727
-
2,993,340

The notes on pages 26 to 43 form part of these accounts.

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 2 5

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

b) Basis of consolidation

The consolidated accounts include the trading activities, assets and liabilities of the group's subsidiary company in accordance with the Charity SORP. Intra-group transactions have been eliminated on consolidation. The subsidiary company was incorporated on 20 January 2016. No separate SOFA or income and expenditure account have been presented for the Charity alone as permitted by section 408 of the Companies Act 2006.

IFES UK 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 note(s).

c) Scope of accounts

IFES is a worldwide affiliation of autonomous national student movements. Direct bilateral arrangements for co-operation between two or more national student movements, including the secondment of staff, are not accounted for by IFES. The accounts include IFES regional offices and associated staff and exclude autonomous national student movements.

d) Going concern

Having reviewed the funding facilities available to the Group together with the Group's future projected cash flows, the trustees have a reasonable expectation that the Group has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

e) Income

Donations received under Gift Aid and other donations are recognised as income when received. The tax recoverable under Gift Aid is recognised as income when it becomes receivable. Resources will not be recognised until the conditions for receipt have been met and there is reasonable assurance of receipt. Conference income is accounted for on a receivable basis. Legacy income is recognised when the charity is advised by the personal representative of an estate that payment is due and the amount involved can be reliably quantified.

f) Currency exchange

Assets, liabilities, income and costs expressed in foreign currencies are translated into US dollars at rates of exchange ruling on the date at which the transaction occurs, except for monetary assets and liabilities which are translated at the rate ruling at the balance sheet date. Differences arising on the translation of such items are dealt with in the Statement of Financial Activities.

g) Depreciation and value of fixed assets

Depreciation is calculated to write off the cost of fixed assets (except land) on a straight-line basis over their effective useful lives. For buildings, this is at 2% per annum. For computers, office furniture and equipment this is at 10-25% per annum. Leasehold improvements are capitalised where the value of the asset is over $750, and other fixed assets are capitalised if the value is over $150.

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 2 6

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

h) Disposal of fixed assets

Surpluses and deficits on disposal and depreciation of fixed assets are credited or charged to the Statement of Financial Activities.

i) Financial instruments

The charity holds only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments include debtors and creditors. Debtors and creditors are initially recognised at transaction value and subsequently measured at fair value. Note 19 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to debtor balances excluding prepayments, and financial liabilities referring to all creditors excluding deferred income and social security and other taxes.

j) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

k) Pensions

The Fellowship uses two defined contribution pension schemes. For employees who are subject to UK tax, contributions are made to a scheme run by Royal London. For overseas employees it is part of a group arrangement under the trusteeship of Global Connections and run by Zurich International Life Ltd.

Pension costs charged in the Statement of Financial Activities represent the contributions payable by the Fellowship in the year.

l) International ministries

These are costs associated with the work of IFES that cannot be allocated against a particular region or country, whether due to the international nature of the work or the materiality of the expenditure.

m) Raising funds

Raising funds expenditure comprises all costs identified as wholly or mainly attributable to the generation of incoming resources other than from charitable activities and include an apportionment of overheads.

n) Charitable activities

Costs of charitable activities comprise all costs identified as wholly or mainly attributable to achieving the charitable objects of the charity. These costs include staff costs, wholly or mainly attributable support costs and an apportionment of overheads.

o) Significant judgements and estimates

The trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 2 7

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

p) Investments

Unlisted investments are carried at historic cost.

q) Functional currency

As an international non-governmental organisation operating in over 160 countries, IFES UK has chosen the US dollar as its functional currency.

r) Fund accounting

The International Fellowship of Evangelical Students has various types of funds for which it is responsible, and which require separate disclosure. These are as follows:

i) Restricted funds

National movement funds: These comprise the unexpended balances of donations held to be applied for national movements. A charge for the costs associated with administration is levied on the intended recipients each year.

Project funds: The activities undertaken from project funds are those that will only go ahead if specific money has been raised to enable them to do so.

Priority funds: Priority expenditure is for activities that are of enough importance to the work of the Fellowship that unrestricted funds will be applied to meet any shortfall in restricted income.

Capital revolving fund: This relates to money designated for the use of making loans to IFES staff.

ii) Unrestricted funds

General fund: This fund is made up of donations given for the general work of IFES with no restriction on their application by the donor. Income from this fund is used to offset shortfalls in income for specific purposes in the Priority fund. The IFES (UK) trustees may designate these funds for certain purposes but they are not restricted to being used solely for those purposes.

Property fund: This has been designated by the trustees at the value of the property and assets purchased with the donations received for it, less the revenue expenditure and depreciation on the building.

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 2 8

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

2. Income – donations and legacies

Originating country
United States of America
United Kingdom
Canada
Bahamas
Switzerland
Germany
Norway
Australia
Singapore
Denmark
Republic of Ireland
Korea
Netherlands
Other		 2020
2019
US$
US$ 2,798,594
4,634,514
2,045,366
1,692,158
204,407
272,595
33,005
197,478
30,367
60,390
205,950
331,089
73,179
84,745
12,718
14,125
13,740
17,762
21,468
21,240
13,688
22,423
6,774
765
36,323
30,164
281,444
170,114
5,777,023
7,549,562

Legacies received in the year amounted to $334,576 (2019: $90,732).

3. Income from charitable activities

World Assembly
IFES Interaction fees
Other event fees		 2020
2019
US$
US$ -
551,095
-
12,051
129,124
500,278
129,124
1,063,424

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 2 9

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

4. Charitable activities expenditure

Caribbean
East Asia
English- and Portuguese-Speaking
Africa
Eurasia
Europe
Francophone Africa
Latin America
Middle East and North Africa
South Asia
South Pacific
North America
International Ministries
Support costs		 Unrestricted
Restricted
Total funds
Total funds
funds
funds
2020
2019
US$
US$
US$
US$ -
88,468
88,468
126,910
-
171,608
171,608
171,709
-
297,380
297,380
451,552
-
581,619
581,619
1,046,310
-
1,196,053
1,196,053
2,302,585
-
227,009
227,009
470,492
-
330,838
330,838
270,534
-
388,689
388,689
591,995
-
58,151
58,151
96,060
-
139,920
139,920
137,165
-
115,140
115,140
74,899
428,302
372,291
800,593
1,825,209
767,502
262,102
1,029,604
1,347,590
1,195,804
4,229,268
5,425,072
8,913,010

Support costs incurred on behalf of the IFES regions were recharged to those regions during the year under review. Total support costs recharged to regions were $842,071 (2019: $1,022,474). Support costs were also recharged to International Ministries of $187,533 (2019: $325,116). These recharged costs are considered as both a contribution towards the costs of administering the funds and a contribution to the work of the wider Fellowship.

5. Raising funds expenditure

Staff costs
Supporter raising
Appeals & portfolio
Prayer materials
Miscellaneous expenses
Support costs apportioned (notes 6,7)		 Unrestricted
Restricted
Total funds
Total funds
funds
funds
2020
2019
US$
US$
US$
US$ 184,933
184,933
149,121
22,430
3,659
26,089
40,537
7,723
7,723
7,619
25,891
25,891
27,524
118
118
979
165,078
165,078
210,766
406,173
3,659
409,832
436,546

6a. Analysis of Charitable Activities by Mission Priorities

Evangelism
Pioneering
Leadership development
Strengthening & supporting national
movements
Direct grants to national movements		 Direct costs
Support costs
2020
2019
US$
US$
US$
US$ 237,607
55,556
293,163
1,396,195
312,667
73,105
385,772
516,873
385,809
92,097
477,906
2,341,098
848,536
198,398
1,046,934
1,377,828
2,610,849
610,448
3,221,297
3,281,016
4,395,468
1,029,604
5,425,072
8,913,010

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 3 0

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

6b. Analysis of Charitable Activities by Mission Priorities and Regional Allocation

Caribbean
East Asia
English- & Portuguese-speaking Africa
Europe
Eurasia
Francophone Africa
Latin America
Middle East & North Africa
South Asia
South Pacific
North America
International ministries
Support costs		 Evangelism
Pioneering
Leadership
development
Strengthening &
supporting NMs
Direct
grants to
NMs
2020
2019
US$
US$
US$
US$
US$
US$
US$ -
5,508 -
24,333
58,627
88,468
126,910
-
23,631 -
-
147,977
171,608
171,709
-
910
3,342
5,177
287,951
297,380
451,552
142,936
1,272
252,416
9,968
789,461
1,196,053
2,302,584
- -
510
1,112
579,997
581,619
1,046,310
- - -
65,006
162,003
227,009
470,492
- -
54,760
6,121
269,957
330,838
270,534
-
234,114
736
131,746
22,093
388,689
591,995
-
16,105
908
-
41,138
58,151
96,060
-
3,415 -
-
136,505
139,920
137,165
- - -
-
115,140
115,140
74,899
94,671
27,712
73,137
605,073-
800,593
1,825,210
237,607
312,667
385,809
848,536
2,610,849
4,395,468
7,565,420
55,556
73,105
92,097
198,398
610,448
1,029,604
1,347,590
293,163
385,772
477,906
1,046,934
3,221,297
5,425,072
8,913,010

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0

P A G E 3 1

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

7. Apportionment of support costs

Support Cost
Finance
General
management
Communications
Senior management
Governance		 Evangelism
Pioneering
Leadership
development
Strengthening
& supporting
NMs
Direct
grants to
NMs
Raising
funds
2020
Total
2019
Total
Basis of
allocation
US$
US$
US$
US$
US$
US$
US$ 14,202
18,688
23,060
50,717
156,050
14,629
277,346
268,993
Direct costs
33,434
43,996
54,288
119,399
367,377
34,440
652,934
563,517
Direct costs
5,426
7,140
8,810
19,377
59,620
111,551
211,924
330,832
Staff time
194
254
2,204
691
2,127
2,089
7,559
21,165
Staff time
2,300
3,027
3,735
8,214
25,274
2,369
44,919
373,849
Direct costs
55,556
73,105
92,097
198,398
610,448
165,078
1,194,682
1,558,356

Audit fees included under Governance costs above came to US$17,263 (2019 – US$19,619).

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0

P A G E 3 2

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

  1. Statement of Financial Activities for the year ended 31 December 2019
INCOME AND ENDOWMENT FROM:
Donations and legacies
Fundraising and other trading activities
Investment
Charitable activities
Other sources
TOTAL
EXPENDITURE ON:
Raising funds
Charitable activities
Student ministry
Total charitable activities
Total
Net income/(expenditure)
Before transfers
Transfers between funds
Net movement in funds
Balances brought forward at 1 January
Balances carried forward at 31 December		 Unrestricted
Restricted
Total funds
funds
funds
2019
US$
US$
US$
939,866
6,609,696
7,549,562
50,499
8,325
58,824
20,705
2,329
23,034
116
1,063,308
1,063,424
68,091
9,809
77,900
1,079,277
7,693,467
8,772,744
426,169
10,377
436,546
1,234,683
7,678,327
8,913,010
1,234,683
7,678,327
8,913,010
1,660,852
7,688,704
9,349,556
(581,575)
4,763
(576,812)
601,228
(601,228)
-
19,653
(596,465)
(576,812)
2,317,646
4,556,297
6,873,943
2,337,299
3,959,832
6,297,131

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0

P A G E 3 3

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

9. Information regarding employees

Total staff costs worldwide, including support staff, during the year under review were:

Wages and salaries
Social security costs
Pension costs
Other staff costs		 2020
2019
US$
US$ 2,178,357
2,160,072
181,084
173,811
247,516
409,580
-
36,017
2,606,957
2,779,480

No employee had earnings within $81,894 (£60,000) - $95,543 (£70,000) band in the year (2019: one).

The average number of employees during the year, analysed by function, was:

Student ministries
Communications
Supporter relations
Senior management
Other management and administration		 2020
2019
43
44
5
2
3
5
6
7
21
27
78
85

Total remuneration for senior management comprising General Secretary, Associate General Secretaries and chief officers in the year was $365,850 (2019 - $441,360). Names of these officers are detailed in the Reference and Administrative information section of the report.

10. Tangible fixed assets

Group
Cost
At 1 January 2020
Additions during year
Disposals during year
At 31 December 2020
Depreciation
At 1 January 2020
Charge during year
Disposals during year
At 31 December 2020
Net book values
At 31 December 2020
At 1 January 2020		 Leasehold
property
Freehold
property
Leasehold
improve-
ments
Computers
Office
furniture &
equipment
Total
US$ US$ US$ US$ US$ US$ 2,758,789
563,399
88,793
433,011
145,362
3,989,354
-
-
-
29,944
4,481
34,425
-
-
-
(68,276)
(2,356)
(70,632)
2,758,789
563,399
88,793
394,679
147,487
3,953,147
406,500
77,292
77,729
312,171
121,171
994,863
52,801
-
8,641
48,105
15,028
124,575
-
-
-
(67,894)
(2,255)
(70,149)
459,301
77,292
86,370
292,382
133,944
1,049,289
2,299,488
486,107
2,423
102,297
13,543
2,903,858
2,352,289
486,107
11,064
120,840
24,191
2,994,491

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0

P A G E 3 4

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

Charity
Cost
At 1 January 2020
Additions during year
Disposals during year
At 31 December 2020
Depreciation
At 1 January 2020
Charge during year
Disposals during year
At 31 December 2020
Net book values
At 31 December 2020
At 1 January 2020		 Leasehold
property
Freehold
property
Leasehold
improve-
ments
Computers
Office
furniture &
equipment
Total
US$ US$ US$ US$ US$ US$ 2,758,789
563,399
88,793
326,965
135,012
3,872,958
-
-
-
24,661
4,481
29,142
-
-
-
(68,276)
(2,356)
(70,632)
2,758,789
563,399
88,793
283,350
137,137
3,831,468
406,501
77,292
77,729
291,769
114,237
967,528
52,801
-
8,641
22,963
12,836
97,241
-
-
-
(67,894)
(2,255)
(70,149)
459,302
77,292
86,370
246,838
124,818
994,620
2,299,487
486,107
2,423
36,512
12,319
2,836,848
2,352,288
486,107
11,064
35,196
20,775
2,905,430

11. Investments

Cost
At 31 January 2020
At 31 December 2020		 Group
Charity
Investment in
subsidiaries
Investment in
subsidiaries
US$ US$ -
1
-
1

IFES UK owns the entire share capital of IFES Asia SDN BHD, a company incorporated in Malaysia on 20 January 2016 to help IFES make better use of technology in its ministry and outreach.

12. Debtors

Current Assets
Due from IFES (Switzerland)
Other debtors
Income receivable
Prepayments
Capital revolving fund loans
Long Term Debtors
Capital revolving fund loans		 Group
2020
2019
US$
US$ 174,428
209,300
43,629
30,520
581,348
1,337,006
85,184
26,624
33,948
26,768
918,537
1,630,218
105,476
165,773		 Charity
2020
2019
US$
US$ 174,428
209,300
43,154
23,282
581,348
1,337,006
74,277
18,368
33,948
26,768
907,155
1,614,724
105,476
165,773

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0

P A G E 3 5

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

  1. Liabilities: amounts falling due within one year
Trade creditors
Other creditors
Accruals and deferred income
Other loans (due within 1 year)		 2020
2019
US$
US$ 145,917
490,586
129,076
200,686
46,006
175,692
136
132
321,135
867,096		 2020
2019
US$
US$ 145,917
490,585
129,076
200,686
41,587
157,339
136
132
316,716
848,742

Included within other creditors is $26,199 (2019: $29,626) in relation to social security and other taxes.

  1. Liabilities: amounts falling due after more than one year
Property fund loan
Capital revolving fund loan		 2020
2019
US$
US$ 32,856
32,039
33,943
32,963
66,799
65,002		 2020
2019
US$
US$ 32,856
32,039
33,943
32,963
66,799
65,002

15. Commitments under operating leases

At 31 December 2020, IFES had future minimum lease payments under non-cancellable operating leases as follows

Not later than 1 year
Later than 1 year but not later
than 5 years		 2020
2019
US$
US$ 3,307
3,213
4,685
7,762
7,992
10,975

16. Restricted funds

Group

a) By fund
Priority funds
Project funds
National movement funds
Capital revolving fund
TOTAL RESTRICTED FUNDS		 Opening
balance at
1 Jan 2020
Incoming
resources
Outgoing
resources
Transfers
Closing
balance at
31 Dec 2020
US$ US$ US$ US$ US$
626,685
1,368,352
(1,668,996)
26,951
352,992
1,819,154
1,285,963
(800,269)
(652,378)
1,652,470
1,443,993
1,889,621
(1,763,662)
132,458
1,702,410
70,000- - -
70,000
3,959,832
4,543,936
(4,232,927)
(492,969)
3,777,872

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 3 6

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

b) By region
Caribbean
East Asia
English- and Portuguese-
speaking Africa
Europe
Eurasia
Francophone Africa
International Ministries
Latin America
Middle East and North Africa
South Asia
South Pacific
North America
TOTAL RESTRICTED FUNDS		 Opening
balance at
1 Jan 2020
Incoming
resources
Outgoing
resources
Transfers
Closing
balance at
31 Dec 2020
US$ US$ US$ US$ US$
133,277
83,887
(88,468)
4,523
133,219
250,423
140,801
(171,608)
11,346
230,962
234,583
220,072
(297,380)
63,470
220,745
878,065
1,545,567
(1,196,053)
(85,317)
1,142,262
329,475
653,044
(581,619)
48,963
449,863
166,348
91,647
(227,009)
109,975
140,961
1,073,341
742,735
(638,052)
(577,515)
600,509
294,418
175,553
(330,838)
21,856
160,989
262,202
583,373
(388,689)
(59,370)
397,516
177,628
61,529
(58,151)
16,776
197,782
114,721
140,466
(139,920)
(77,349)
37,918
45,351
105,262
(115,140)
29,673
65,146
3,959,832
4,543,936
(4,232,927)
(492,969)
3,777,872

A description of each of these funds is detailed under accounting policy note 1(r).

Charity

harity
a) By fund
Priority funds
Project funds
National movement funds
Capital revolving fund
TOTAL RESTRICTED FUNDS		 Opening
balance at
1 Jan 2020
Incoming
resources
Outgoing
resources
Transfers
Closing
balance at
31 Dec 2020
US$ US$ US$ US$ US$
626,685
1,368,352
(1,668,996)
26,951
352,992
1,766,719
1,285,963
(800,269)
(652,378)
1,600,035
1,443,993
1,889,621
(1,763,662)
132,458
1,702,410
70,000
- - -
70,000
3,907,397
4,543,936
(4,232,927)
(492,969)
**3,725,437 **
b) By region
Caribbean
East Asia
English- and Portuguese-
speaking Africa
Europe
Eurasia
Francophone Africa
International Ministries
Latin America
Middle East and North Africa
South Asia
South Pacific
North America
TOTAL RESTRICTED FUNDS		 Opening
balance at
1 Jan 2020
Incoming
resources
Outgoing
resources
Transfers
Closing
balance at
31 Dec 2020
US$ US$ US$ US$ US$
133,277
83,887
(88,468)
4,523
133,219
250,423
140,801
(171,608)
11,346
230,962
234,583
220,072
(297,380)
63,470
220,745
878,065
1,545,567
(1,196,053)
(85,317)
1,142,262
329,475
653,044
(581,619)
48,963
449,863
166,348
91,647
(227,009)
109,975
140,961
1,020,906
742,735
(638,052)
(577,515)
548,074
294,418
175,553
(330,838)
21,856
160,989
262,202
583,373
(388,689)
(59,370)
397,516
177,628
61,529
(58,151)
16,776
197,782
114,721
140,466
(139,920)
(77,349)
37,918
45,351
105,262
(115,140)
29,673
65,146
3,907,397
4,543,936
(4,232,927)
(492,969)
3,725,437

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 3 7

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

17. Unrestricted funds

Group

Designated funds:
Property fund
Unrestricted fund:
General fund
TOTAL UNRESTRICTED
FUNDS		 Opening
balance at
1 Jan 2020
Incoming
resources
Outgoing
resources
Transfers
Closing
balance at
31 Dec 2020
US$ US$ US$ US$ US$
1,527,705
-
-
-
1,527,705
809,594
1,594,049
(1,601,977)
492,969
1,294,635
2,337,299
1,594,049
(1,601,977)
492,969
2,822,340

Charity

Designated funds:
Property fund
Unrestricted fund:
General fund
TOTAL UNRESTRICTED
FUNDS		 Opening
balance at
1 Jan 2020
Incoming
resources
Outgoing
resources
Transfers
Closing
balance at
31 Dec 2020
US$ US$ US$ US$ US$
1,527,705
-
-
-
1,527,705
710,502
1,594,049
(1,558,153)
492,969
1,239,367
2,238,207
1,594,049
(1,558,153)
492,969
2,767,072

Transfers between funds

IFES has a general policy of levying a service charge of between 10% and 15% on all gifts received to help cover the costs of administering the different funds and form part of the transfer between funds.

Transfers between funds are also made to offset any deficit in a restricted fund that is not likely to be offset by income during 2021. Restricted funds that were applicable but were restricted to a more general area, were used first. For example, surpluses in restricted funds for the work in Europe generally were used to offset any deficits in particular funds within that sub-region. If there were insufficient restricted funds for this purpose, general funds were used to offset the deficit.

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0 P A G E 3 8

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

18a. Analysis of net assets between funds as at 31 December 2020

Group

roup
Restricted funds
Priority funds
Project funds
National movement funds
Capital revolving fund
TOTAL RESTRICTED FUNDS
Designated funds
Unrestricted funds		 Tangible
fixed
assets
Long
term
debtors
Net
current
assets
Long
term
liabilities
Total
US$ US$ US$ US$ US$
-
-
352,992
-
352,992
-
- 1,652,470
-1,652,470
-
- 1,702,410
-1,702,410
-105,476
(1,533)
(33,943)
70,000
- 105,476 3,706,339
(33,943)
3,777,872
1,560,561
-
- (32,856)
1,527,705
1,343,297
-
(48,662)
-1,294,635
2,903,858
105,476 3,657,677
(66,799)
6,600,212

Charity

Charity
Restricted funds
Priority funds
Project funds
National movement funds
Capital revolving fund
TOTAL RESTRICTED FUNDS
Designated funds
Unrestricted funds		 Tangible
fixed
assets
Long
term
debtors
Net
current
assets
Long
term
liabilities
Total
US$ US$ US$ US$ US$
-
-
352,992
-
352,992
-
- 1,600,035
-1,600,035
-
- 1,702,410
-1,702,410
-105,476
(1,533)
(33,943)
70,000
- 105,476 3,653,904
(33,943)
3,725,437
1,560,561
-
- (32,856)
1,527,705
1,276,288
-
(36,921)
-1,239,367
2,836,849
105,476 3,616,983
(66,799)
6,492,509

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0

P A G E 3 9

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

18b. Analysis of net assets between funds as at 31 December 2019

Group

roup
Restricted funds
Priority funds
Project funds
National movement funds
Capital revolving fund
TOTAL RESTRICTED FUNDS
Designated funds
Unrestricted funds		 Tangible
fixed
assets
Long
term
debtors
Net current
assets
Long
term
liabilities
Total
US$ US$ US$ US$ US$
-
-
626,685
-
626,685
-
-
1,819,154
-1,819,154
-
-
1,443,993
-1,443,993
-
165,773
(62,810)
(32,963)
70,000
-
165,773
3,827,022
(32,963)3,959,832
1,559,744
-
-
(32,039)1,527,705
1,434,747
-
(625,153)
-
809,594
2,994,491
165,773
3,201,869
(65,002) 6,297,131

Charity

harity
Restricted funds
Priority funds
Project funds
National movement funds
Capital revolving fund
TOTAL RESTRICTED FUNDS
Designated funds
Unrestricted funds		 Tangible
fixed
assets
Long
term
debtors
Net current
assets
Long
term
liabilities
Total
US$ US$ US$ US$ US$
-
-
626,685
-
626,685
-
-
1,766,719
-1,766,719
-
-
1,443,993
-1,443,993
-
165,773
(62,810)
(32,963)
70,000
-
165,773
3,774,587
(32,963)3,907,397
1,559,744
-
-
(32,039)1,527,705
1,345,687
-
(635,185)
-
710,502
2,905,431
165,773
3,139,402
(65,002) 6,145,604

I F E S A N N U A L A C C O U N T S A N D T R U S T E E S R E P O R T 2 0 2 0

P A G E 4 0

NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

19. Financial instruments

Financial assets held at amortised cost are cash in hand and at bank. Debtors excluding prepayments and financial liabilities held at amortised cost are all creditors excluding deferred income, social security and other taxes.

Financial assets measured
at amortised costs
Cash at bank
Debtors
Financial liabilities
measured at amortised
costs
Creditors
Total interest income for
financial assets held at
amortised cost		 Group
Charity
2020
2019
2020
2019
US$
US$ US$
US$ 3,060,275
2,438,747
3,026,544
2,373,421
1,024,013
1,795,992
1,012,631
1,780,498
4,084,288
4,234,739
4,039,175
4,153,919
387,934
932,097
383,515
913,744
Group
2020
2019
US$
US$ 13,405
34,657

20. Related parties

The following reimbursements for travel expenses were made to trustees:

Reimbursed to
trustees for committee
meetings		 2020
2019
Number of
trustees
US$
Number of
trustees
US$ 1
110
13
18,927
1
110
13
18,927

No emoluments have been paid to the trustees (2019 - $nil). Trustees can be reimbursed for their travel and subsistence expenses in attending meetings. Additionally, trustees may occasionally visit IFES programs within their region, with costs of such trips being met by the charity. Trustees are encouraged to visit at least one international program in every four-year term served.

There are two related bodies linked to IFES (UK): IFES Switzerland, a registered organisation with similar objectives in Switzerland and IFES/USA, a tax-exempt non-profit organisation and classified as a public charity in the USA. IFES Switzerland shares a common board with IFES (UK) whereas relations with IFES/USA are covered by an annually signed agreement called the Agreement for Cooperative Ministry Activities and Funding under which the treasurer and an officer of IFES (UK) sit on the board of IFES/USA as non-voting members.

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NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

Gifts for the wider work of IFES are often routed via these sister organisations. They in turn, pass on these gifts to IFES (UK) as donations/grants less any applicable charges. During the year to 31 December 2020 IFES (UK) received $2.75 million from IFES/USA (2019: $4.56 million) and no donations/grants from IFES Switzerland (2019: $0).

The transactions with IFES (Switzerland) resulted in a debtor being shown on the IFES (UK) balance sheet at $174,428 (2019 – debtor of $209,300).

In 2016, IFES (UK) set up a trading subsidiary in Malaysia, IFES Asia, to harness the effective use of technology across the IFES fellowship. Operational costs of this subsidiary for the year were $456,167 (2019 - $482,569) and the amount due from the subsidiary at the year-end was $107,702 (2019 - $76,384).

IFES (UK) lets a freehold property, original cost £370,000 ($487,845), to a former staff member for a rent of $16,379 (£12,000) per annum.

21. Grants to organisations

Direct Support 2020 2019
grants costs US$ US$
Albania 46,018 - 46,018 29,008
Bolivia 16,353 - 16,353 4,240
Bosnia 22,509 - 22,509 28,747
Bulgaria 17,966 - 17,966 20,966
Canada (1) 59,510 - 59,510 35,522
Caribbean (2) 4,030 46,291 50,321 83,090
Croatia - - - 14,521
East Asia (5) 63,895 15,187 79,082 43,253
English and Portuguese-Speaking Africa (12) 73,654 120,131 193,785 246,877
Eurasia (8) 288,361 118,391 406,752 622,244
Europe (13) 202,843 309,284 512,127 425,313
France 5,804 - 5,804 5,709
Francophone Africa (10) 74,435 87,568 162,003 75,109
Ghana 14,826 - 14,826 11,296
Guatemala 4,043 - 4,043 3,206
Guyana 8,306 - 8,306 12,269
Japan 60,136 - 60,136 37,262
Kenya 30,011 - 30,011 25,795
Latin America (12) 119,334 68,662 187,996 174,968
Lithuania 4,504 - 4,504
 -
Mexico 61,566 - 61,566 62,787
Middle East and North Africa (1) 9,007 13,086 22,093 37,750
Moldova 23,635 - 23,635 27,205
New Zealand 75,934 - 75,934 64,737
Nigeria 19,032 - 19,032 16,257
North Macedonia 10,660 - 10,660
 -
Philippines 8,759 - 8,759 33,283
Poland - - - 2,003
Portugal 7,783 - 7,783 7,152
Romania 16,645 - 16,645 16,544
Russia 36,020 - 36,020 56,095
Serbia and Montenegro 49,136 - 49,136 58,055

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NOTES TO THE ACCOUNTS

For the year ended 31 December 2020

OTES TO THE ACCOUNTS
or the year ended 31 December 2020
South Africa
South Asia (3)
South Pacific (1)
Spain
St Vincent and the Grenadines
Switzerland (2)
Uganda
Ukraine
United Kingdom
United States
Miscellaneous grant
Total grants to organisations		 9,956
-
9,956
6,412
28,370
12,767
41,137
73,977
4,500
56,071
60,571
60,945
48,174
-
48,174
30,372
- - --
- - -
32,008
20,341
-
20,341
-
113,590
-
113,590
163,602
48,135
-
48,135
98,644
55,630
-
55,630
39,377
- - - -
1,763,411
847,438
2,610,849
2,786,602

Direct grants are made from regional budgets to assist the work of the most fragile movements. Other grants are from restricted income and reflect the donor's intention to support a particular movement. All grants are made to organisations. In 2020, grants were made to 96 organisations (2019: 135).

22. Ultimate parent undertaking

The ultimate parent undertaking is IFES (Switzerland), a company incorporated in Switzerland with registered offices at Rue du Simplon 37, 1006 Lausanne, Switzerland. Control is exercised by requiring all board members of IFES (Switzerland) to serve as trustees of IFES UK.

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