ANNUAL REPORT **2024/25** 

## **BETTER GIVING** 

STARTS HERE 




**CONTENTS** 

The Charities Aid Foundation (CAF) exists to accelerate progress in society towards a fair and sustainable future for all. Over the last 100 years, we have led the way in developing innovative approaches to giving. Annually, we distribute over £1 billion to social purpose organisations around the globe. 

As a leading charity operating from the UK, US and Canada, alongside an international network of partners, CAF works at the centre of the giving world. We collaborate with corporate and individual donors to enable them to give more effectively, strategically and impactfully. This includes connecting them to charities globally and providing access to our in-depth sector knowledge, governance expertise and innovative giving solutions. 

We help social purpose organisations to strengthen their resilience and do more of their life changing work, through strategic advisory services from our Impact Accelerator, tools to support charities’ fundraising activities, and charity financial services from CAF Bank Limited and CAF Financial Solutions Limited. Using our research, policy and campaigns work, we understand and influence the wider environment for charities and donors. 

## **TOGETHER, WE GIVE MORE.** 

**OUR VALUES  |** ACT WITH INTEGRITY **|** MOVE FORWARD TOGETHER **|** SHAPE THE CHANGE 

|**1.**|Messages from our Chair and Chief Executive|**3**|
|---|---|---|
|**2.**|Who we are, what we do|**9**|
|**3.**|Greater social impact through giving|**13**|
|**4.**|Helping social purpose organisations to thrive|**31**|
|**5.**|Fostering a favourable global giving environment|**39**|
|**6.**|Charity fnancial services|**49**|
|**7.**|Building a leading, great and safe place to work|**57**|
|**8.**|Financial review|**67**|
|**9.**|Structure, governance and management|**75**|
|**10.** <br>**11.**|Statement of Trustees’ responsibilities<br> Independent Auditors’ report|**97**<br>**99**|
||Financial statements|**107**|



The Smiths Group Foundation **CASE STUDY 26** Image: The Smiths Group Foundation 

**1 CAF  |    | ANNUAL REPORT 2024/25** 

2 



MESSAGES FROM
OUR CHAIR AND
CHIEF EXECUTIVE
9•
CAF I ANNUAL REPORT 2024125

**MESSAGES FROM OUR CHAIR AND CHIEF EXECUTIVE** 

“�Thanks�to�the�generosity�of�the�donors�� we�work�with�and�the�dedication�of�� the�charities�they�support,�it�has�been�� a�record�year�for�CAF.�The�£1.2�billion�� given�through�CAF�is�a�huge�sum�of� money�in�itself,�but�it�also�represents� incalculable�impact:�communities� strengthened,�habitats�protected�� and�opportunities�created.” 


**SIR JAMES LEIGH-PEMBERTON,** CVO **CHAIR OF TRUSTEES** 

2024/25 marked the Charities Aid Foundation’s centenary year and I am pleased to say that once again, thanks to the generosity of the donors we work with and the dedication of the charities they support, it has been a record year for CAF. The £1.2 billion given through CAF is a huge sum of money in itself, but it also represents incalculable impact: communities strengthened, habitats protected and opportunities created. 

Speaker’s�House,�at�Apsley�House�as�guests�of�The�Duke�of� Wellington,�and�at�the�UN�General�Assembly�in�New�York. 

With�the�same�purpose�in�mind,�in�2024/25,�we�have� worked�to�strengthen�our�international�network�of� independent�partners�at�a�meeting�in�Argentina,�and� renewed�our�efforts�to�build�strategic�relationships� with�multilateral�organisations�and�international� infrastructure�bodies. 

I�can�think�of�no�better�way�to�have�celebrated�such�a� milestone�than�by�demonstrating�that,�a�hundred�years� on,�the�organisation�is�still�focused�on�the�purpose�for� which�it�was�originally�created�by�National�Council�for� Voluntary�Organisations�(NCVO)�and�is�fulfilling�that� purpose�more�and�more�each�year. 

This�year�was�also�the�25th�anniversary�of�the�CAF� American�Donor�Fund�(CADF),�which�helps�those�who� pay�tax�in�both�the�US�and�the�UK�to�maximise�the� impact�of�their�giving.�It�was�the�first�organisation�to�offer� specialised�services�of�this�kind�to�donors,�and�since�its� foundation�it�has�received�over�£1.1�billion�in�charitable� donations.�It�too�has�delivered�another�remarkable�year� of�progress�despite�the�heightened�global�uncertainty�and� volatility,�with�over�£117�million�in�donor-advised�grants� payable�to�charities. 

This�year�has�also�underlined�that�we�can�take�none�of� this�for�granted.�CAF’s�research�over�the�year�has�shown� that,�while�the�UK�remains�a�generous�country,�we�are� increasingly�relying�on�a�declining�number�to�give�—�� and�that�those�who�can�afford�to,�could�give�more. 

CAF’s�North�American�subsidiaries�continue�to�move� forward,�with�Jessie�Krafft�confirmed�in�post�as�the� President�and�CEO�of�CAF�in�North�America�in�2024/25.� As�established�leaders�in�global�grantmaking,�CAF� America�made�US$831�million�in�grants�and�CAF�Canada� CAD$34�million,�alongside�their�continuing�work�to� promote�cross-border�giving�more�widely.�This�effort� 

CAF�has�worked�to�put�philanthropy�and�charitable�giving� firmly�on�the�agenda�of�the�UK�Government.�And�the� question�of�how�to�encourage�people�to�give�more,� if�they�can,�formed�the�centrepiece�of�events�for�the� charity’s�centenary,�in�the�heart�of�Parliament�in� 

saw�the�launch�this�year�of�the�Global�Relief�Navigator,� which�enables�US�donors�to�track�disaster�events�and� the�trusted�organisations�responding�to�them�in�real� time.�CAF�Canada�took�an�important�step�in�its�present� development�towards�future�growth,�appointing�Joanne� Kviring�as�its�first�Managing�Director. 

The�charities�we�serve�need�us�more�than�ever,�and�we� continue�to�do�what�we�can�to�support�them�to�build� their�resilience�in�this�uncertain�environment.�There� is�no�better�illustration�of�the�need�for�the�services�we� provide�than�the�crucial�work�undertaken�by�CAF�Bank� over�the�course�of�this�year.�New�applications�to�open� accounts�with�CAF�Bank�are�running�at�record�levels,� reflecting�the�central�role�it�plays�in�providing�essential� financial�services�suited�to�the�needs�of�charities,�and�the� Bank�continues�to�help�organisations�to�grow�sustainably,� committing�£41.5�million�in�loans�this�year. 

Looking�to�the�future�and�with�a�view�to�accelerating�the� momentum�we�see�in�giving�through�CAF,�the�CAF�Board� of�Trustees�and�the�CAF�America�Board�commissioned� a�strategy�review�to�build�on�the�positive�organisational� change�achieved�through�the�Together�Building� Opportunity�initiative�and�prepare�us�for�the�next�phase� of�development.�The�strategic�plan�that�resulted�will� steer�the�organisation�through�the�next�three�years�and� deepen�alignment�and�collaboration�across�the�whole� of�CAF,�and�at�the�same�time�modernise�our�operating� platforms�and�processes�to�provide�both�donors�and� charities�with�improved�services. 

Finally,�2024/25�is�my�last�full�year�as�Chair�of�CAF’s� Trustees,�a�position�I�have�been�privileged�to�hold� for�just�over�six�years.�The�economic�and�geopolitical� changes�over�that�period,�the�Covid-19�pandemic,�the� spread�of�global�conflict�and�the�rising�cost�of�living� around�the�world�have�made�for�one�of�the�most� challenging�operating�environments�in�70�years.� 

Notwithstanding�the�headwinds�of�recent�years,�� since�2019,�CAF�has�more�than�doubled�its�distributions� to�charities,�evidence�—�if�evidence�were�needed�—�that� the�impulse�to�help�those�in�need�remains�resilient�and�� even�more�responsive�in�tough�times,�and�that�clarity�� of�purpose�can�guide�us�through�even�the�choppiest� of�waters. 

Whatever�we�accomplish�at�CAF�is�possible�only� because�of�the�continuing�support�of�our�donors�and�the� unstinting�dedication�of�my�colleagues.�To�our�donors,� 

may�I�express�my�admiration�and�gratitude�for�your� unwavering�commitment�to�the�welfare�of�others.�� And�to�my�fellow�Trustees�and�all�colleagues�across�the� CAF�group,�I�offer�my�sincere�thanks�for�your�dedication� to�CAF,�your�hard�work�and�your�infectious�energy.� 

As�I�hand�over�this�summer�to�Sir�Edward�Braham,�our� new�Chair,�I�have�every�confidence�that�CAF�begins�its� second�century�well-positioned�to�meet�the�challenges� and�opportunities�it�will�bring. 


**Sir James Leigh-Pemberton,** CVO Chair of Trustees 

## **KEY HIGHLIGHTS DURING 2024/25** 

## **PAID IN** 

£1.343bn donations to CAF group. 

£1.155bn donations to CAF group in 2023/24. 

## **PAID OUT** 

£1.203bn donations given to charities through CAF group. 

£1.132bn given to charities through CAF group in 2023/24. 

5 **CAF[  |  ]** ANNUAL REPORT 2024/25 

6 



**MESSAGES FROM OUR CHAIR AND CHIEF EXECUTIVE** 

“�That�this�is�a�record�year�for�CAF�� is�heartening.�But�philanthropy�and� charitable�giving�have�never�been�more� needed.�Against�a�backdrop�of�global� political�and�economic�uncertainty,� retrenchment�in�international�aid�and� other�fiscal�constraints,�securing�greater� and�more�impactful�philanthropy�—�and� its�encouragement�—�is�now�essential.” 


**NEIL HESLOP,** OBE CHIEF EXECUTIVE 

All giving starts with a story. It’s one of the privileges of working at CAF that we get to play a part in thousands of individual stories of giving, just a handful of which are highlighted in this Annual Report. They are a reminder — as I am reminded every day in this role — that when we say we have distributed over a billion pounds to charities again this year, it is the sum total of the generosity of others and their individual connections to causes the world over. 

In�spring�2025,�we�launched�our�Charity�Resilience� Calculator,�an�innovative�new�tool�to�help�charities�� focus�on�building�their�resilience�in�tough�times,�based�� on�research�with�charity�leaders�and�in�partnership�� with�The�Association�of�Chief�Executives�of�Voluntary� Organisations�(ACEVO),�the�Association�of�Chief�Officers� of�Scotland�Voluntary�Organisations�(ACOSVO)�and�� Chief�Officers�3rd�Sector�(CO3).� 

This�year’s�UK�Giving�research�demonstrated�that,�in� cash�terms,�the�UK�continues�to�be�a�generous�nation.� However,�for�the�first�time,�the�number�of�people�who�� do�not�give�matches�those�who�do�—�and�there�is�a�great� deal�of�geographical�variation�in�giving�patterns. 

That�this�is�a�record�year�for�CAF�is�heartening.�But� philanthropy�and�charitable�giving�have�never�been� more�needed.�Against�a�backdrop�of�global�political�and� economic�uncertainty,�retrenchment�in�international�� aid�and�other�fiscal�constraints,�securing�greater�and� more�impactful�philanthropy�—�and�its�encouragement� —�is�now�essential. 

I�believe�that�we�are�at�an�inflection�point�for�our� sector�and�that�government�has�a�clear�role�to�play�in� setting�out�how�it�will�encourage�and�incentivise�greater� giving.�Its�commitment�in�autumn�2024�to�a�place-based� philanthropy�strategy�was�welcome,�but�that�must�form�� part�of�a�wider�strategic�approach. 

In�the�UK,�CAF’s�research�has�underlined�the�persisting� challenges�that�are�putting�a�strain�on�charities:�rising� demand�and�inflated�costs�while�incomes�are�squeezed.� In�response,�we�have�continued�to�invest�in,�and�to� strengthen,�the�expert�advice�and�support�we�provide� to�social�purpose�organisations�through�our�Impact� Accelerator,�and�through�financial�services�offered�� by�CAF�Bank�and�CAF�Financial�Solutions�Limited. 

CAF�has�been�engaging�in�this�conversation�with�the� UK�Government�since�the�General�Election�in�July� 2024,�working�with�partners�including�the�Beacon� Collaborative�and�the�Centre�for�Social�Justice�and,�� most�recently,�through�involvement�in�the�Social�� 

Impact�Investment�Advisory�Group�set�up�by�the�Chief� Secretary�to�the�Treasury�and�the�Culture�Secretary. 

Similarly,�with�our�Corporate�Giving�research� highlighting�flatlining�donations�from�some�of�Britain’s� biggest�businesses,�we�have�taken�our�case�—�that�being� a�responsible�business�must�mean�investing�in�your� community�—�to�Anthropy�and�also�discussed�how� innovations�in�finance�and�tech�can�achieve�� meaningful�social�change�at�Davos.� 

Globally,�our�World�Giving�research�has�continued�to� inform�debate�about�the�differences�and�similarities� in�the�giving�landscape,�including�in�our�work�with�the� Philanthropy�Europe�Association�(Philea),�Asia�Venture� Philanthropy�Network,�Transnational�Giving�Europe� and,�of�course,�our�own�colleagues�and�partners�in�� the�CAF�International�Network. 

As�the�world�around�us�shifts�and�evolves,�so�too�must� our�organisation.�In�2024/25,�we�have�redoubled�our� work�to�make�sure�our�operations�in�the�UK�and�North� America�are�in�good�shape�for�the�future.�Building�on� the�firm�foundations�put�in�place�by�our�2021�Together� Building�Opportunity�Strategy,�the�One�CAF�Strategic� Plan�—�developed�through�close�collaboration�between� our�UK�and�North�American�entities�—�will�guide�us�over� the�next�three�years�to�strengthen�our�impact,�and�to�give� our�people�new�tools�to�maximise�the�value�we�bring�� to�donors,�charities�and�society�more�widely. 

This�has�been�an�important�year�for�CAF�and�not� just�because�it�was�the�hundredth�anniversary�of�our� founding.�In�a�tough�global�environment�for�giving,� against�a�backdrop�of�record�distribution,�our�strategic� plan�looks�to�the�future�of�this�organisation�and�of� giving,�and�sets�out�an�ambitious�pathway�to�a�digitally� enabled,�truly�global�platform�for�giving. 

I�want�to�express�my�gratitude�to�my�colleagues�at� CAF�in�the�UK�and�North�America�for�their�incredible� contribution�in�2024/25,�to�our�donors,�the�sector�partners� and�the�charities�across�the�world�that�make�our�work� mean�so�much,�and�to�our�Trustees�for�their�commitment.� 

I�would�also�like�to�thank�Sir�James�who,�through�the�� last�year�and�his�years�before�as�Chair,�has�been�both� CAF’s�tireless�champion�and�a�source�of�sage�advice�� and�guidance�to�us�all.�I�look�forward�to�working�with�� Sir�Edward�Braham�as�our�new�Chair�as�we�write�� the�next�chapter�in�CAF’s�giving�story. 


**Neil Heslop,** OBE Chief Executive 

7 **CAF[  |  ]** ANNUAL REPORT 2024/25 

**8** 



## **WHO WE ARE, WHAT WE DO** 

The Charities Aid Foundation exists to accelerate progress in society towards a fair and sustainable future for all. As a globally active charity, we operate from the UK and North America as CAF in the UK, CAF America, CAF Canada and CADF. 

Together, we leverage our unique position at the centre of the giving world — to drive greater and more impactful giving through tailored, innovative and strategic services for individual and corporate donors, and help social purpose organisations to realise meaningful change in the lives of millions worldwide. Annually, we distribute over £1 billion to charities around the globe. 

Through our influence and reach, we aim to foster a favourable global giving environment. A vital part of this is our collaboration with CAF’s International Network, as well as strategic partners including multilateral organisations, national policymakers, think tanks, and influential sector infrastructure and membership bodies. 


In the UK, we own CAF Bank Limited and CAF Financial Solutions Limited (CFSL). These organisations help charities and social enterprises to manage their finances and funds, so they can continue to support the causes and communities that matter to them. 


9 **CAF[  |  ]** ANNUAL REPORT 2024/25 



**02. WHO WE ARE, WHAT WE DO** 

## **Empowered Giving** 

A Better Giving Starts Here impact story 

At CAF, we work to turn our donors’ generosity, connection to a cause and ambition for change, into tangible progress towards a better future. 

Our philanthropy experts collaborate with individual donors, their families and advisers, exploring a range of innovative ways to achieve their giving ambitions. 

Our corporate client team enable businesses to develop social impact strategies that align to their business objectives, strengthen employee engagement and make a positive difference to the communities we serve. 

Our strategic advisers provide best-practice advice and support, alongside CAF’s fundraising tools, so more charities can approach the future with confidence and focus on their missions. 

## **BETTER GIVING STARTS HERE** 

Every CAF story starts somewhere and ends in impact. This year, we are spotlighting some of the inspirational giving stories our work has helped to create. Philanthropy has never been more needed, and through highlighting the impact of generous donors and the dedicated charities they support, we hope to inspire and enable others to give. 

## **NAVIGATING UNCERTAINTY** 

Around the world, civil society is under pressure, with funding constrained and the competition to access it increasing. At the same time, charities continue to face severe challenges, working to meet an ever-growing demand for their services. 

So, in the UK, US and Canada, we are enhancing the expertise, support and tools we have to make charitable giving globally as effective, strategic and impactful as possible. 

## **ONE CAF** 

The engine for this is our One CAF Strategic plan, which outlines the next phase of delivery for CAF’s Together Building Opportunity strategy. 

Our three-year strategic plan builds on our progress since 2021, to deliver a high-value experience for our colleagues and those we serve at CAF. We will do this by developing our ambitious global people plan centred around shared values, continuing to revitalise our global brand and organisational culture, streamlining and aligning our operations, and refreshing our digital capabilities. 

With Jessie Krafft, President and CEO of CAF in North America, and Mark Greer, Managing Director, Charities Aid Foundation, leading the plan’s implementation over the next three years, we have set a course to become an innovative, agile and purposeful organisation that is a great and safe place to work. 

This annual report documents our progress over the 2024/25 financial year. 


One of our ambitions is to make sure that the services we provide donors are as simple and intuitive as possible, while bolstering charities’ resilience to enable them to achieve measurable impact. 

## So, we are working to: 

- Introduce a suite of simplified self-serve giving services designed to meet the current and future needs of donors and charities. 

   - Increase our ability to respond quickly and effectively to global disasters and become a recognised resource for disaster relief. 

   - Improve the efficiency of our platform through digitisation, the modernisation of our operations and creating economies of scale across the UK and North America. 

- Diversify and enhance our services for donors to support safe, strategic and secure giving around the world. 

- Deepen collaboration across a global network of charities, alongside the insights, guidance and assistance we offer them. 

11 **CAF[  |  ]** ANNUAL REPORT 2024/25 

12 



## **GREATER SOCIAL IMPACT THROUGH GIVING** 

In the UK and North America, CAF partners with donors — individuals and corporates — to enable giving with greater purpose and impact, offering expert ways to achieve their charitable ambitions. 


~~3~~ 13 **CAF[  |  ]** ANNUAL REPORT 2024/25 



**03. GREATER SOCIAL IMPACT THROUGH GIVING** 

## **Personal Giving** 

## **SPOTLIGHT ON HIGH-VALUE GIVING** 

We work with donors to help them secure greater impact, empowering them to create more meaningful change whatever their personal cause. 

Philanthropic giving is increasingly crucial to many charities’ financial resilience. So, in 2024/25, we have promoted strategic, tax-effective giving, collaborating closely with individual donors, their families and their advisers, as well as their chosen charities to reinforce the connections that make giving possible. 

## **DELIVERING INDUSTRY-LEADING SUPPORT** 

We cover all areas of tax-effective giving, whether it is assistance to facilitate an impactful one-off gift, begin a new philanthropic journey, or make long-term giving more strategic and effective. 

CAF offers Donor Advised Funds, such as The Charitable Trust and CADF, as well as social investment opportunities and strategic advisory services through our Impact Accelerator. 

We are always working to improve our standards of service, providing a flexible approach tailored to donors’ needs. This includes dealing with the complex legal and regulatory requirements of receiving and distributing charitable assets globally. 

## **STRENGTHENING SERVICE EXCELLENCE** 

In 2024/25, CAF achieved the Institute of Customer Service Mark Accreditation in the UK. This national standard recognises long-term strategic commitment to upholding high standards of customer service. 

## **ENABLING STRATEGIC GIVING** 

To help inspire greater, and more impactful giving, we are creating opportunities across our community of charities and donors to meet and learn from each other, and from experts and civil society leaders. 

## **Celebrating 100 years of philanthropy** 

Marking CAF’s centenary, we supported an ambitious programme of events through 2024/25, including a reception at Speaker’s House in Parliament, the Centre for Social Justice’s Big Listens, lead partner sponsorship of the Beacon Philanthropy and Impact Forum, and numerous other receptions, roundtables and webinars. 

Towards the close of 2024, donors and trustees attended a special event held at Apsley House, hosted by the Duke of Wellington, to celebrate 100 years of philanthropy through CAF. 

## **THE YEAR AHEAD** 

Our priorities for our individual donors are to: 

- Reinforce our understanding and support of donors’ philanthropic needs and ambitions, by deepening our insights, strengthening our charity relationships, and providing a best-in-class experience. 

•  Create more opportunities for our donors to connect with their peers and experts from across the sector, to share learnings and promote effective philanthropy. 

- Continue to grow impact, through our strategic partnerships and impact-aligned investments. 

Early in 2025, CAF published High-Value Giving: How the UK’s Wealthy Give. This research aims to add to the sector’s knowledge about High-Net-Worth Individuals (HNWIs), including estimating the size of the UK’s wealthy population and their philanthropic giving. 

536,673 

## £2tn 

The estimated number of HNWIs in the UK. 

The estimated combined investable assets of HNWIs. 

£549bn 

Altrata’s model suggested that in 2023, HNWIs in the UK donated an estimated. 

The estimated combined investable assets of the wealthiest 0.01%. 

£7.96bn 

equivalent to 0.4% of their investable assets.[1] 

- 1  This total donation amount is in addition to the £13.9 billion given by the general population in 2023 (UK Giving). 

Our expert advisers also received awards recognition this year, reinforcing our reputation as experts in philanthropy. CAF’s UK private client team won an award for Global Reach in the Not-For-Profit, Foundation and Trust category at the WealthBriefing Wealth for Good Awards and were nominated for Philanthropy Team of the Year at the STEP Private Client Awards. 

15 **CAF[  |  ]** ANNUAL REPORT 2024/25 



**03. GREATER SOCIAL IMPACT THROUGH GIVING** 

## **MAXIMISING IMPACTFUL, TRANSATLANTIC GIVING** 

## **KEY HIGHLIGHTS FOR PERSONAL GIVING DURING 2024/25** 

## **MAJOR DONORS** 

## **CADF DONORS** 

**REGULAR GIVERS** 

£178.1M £117.0M 

£98.5M 

paid out to charities given to charities paid out to charities worldwide from our worldwide from worldwide from our major donors. our CADF donors. individual donors. 

CAF is committed to being the trusted giving expert for people who want to give effectively. Established in 2000, CADF maximises the value of transatlantic giving by enabling dual US and UK taxpayers to claim eligible tax relief in both countries, boosting support for the causes they care about. 

Over 25 years, CADF has helped individuals and organisations to contribute to a legacy of impact worth over £1.1 billion (US$1.5 billion) in donations received. 

For CADF, 2023/24 was an unprecedented year of growth, driven by major one-off donations from our donors. It is a testament to their generosity that CADF has once again been able to achieve incredible progress in 2024/25, despite global uncertainty. 

## **Marking 25 years of CADF** 

In February 2025, we thanked donors and their advisers, and the charities they support, for their continued generosity and collaboration, bringing them together with colleagues from across CAF in the UK and North America to mark CADF’s 25th anniversary. 

The donor-advised grants payable to charities by CADF reached £117 million in 2024/25 (2023/24: £112 million), with donations received totalling £138 million (2023/24: £155 million). Meanwhile the number of new donors continues to grow. 

**IN CADF, OVER THE LAST 25 YEARS** £1.1BN in donations received. 


**----- Start of picture text -----**<br>
Image: CAF<br>**----- End of picture text -----**<br>


17 **CAF[  |  ]** ANNUAL REPORT 2024/25 

18 



**03. GREATER SOCIAL IMPACT THROUGH GIVING** 

## **Taking off** 

**CASE STUDY** 

**When a CADF donor expressed interest in supporting healthcare-related causes, we connected them with Orbis UK, an affiliate of Orbis International. The charity works around the world to ensure that everyone has equitable access to eye care, combining support from donors and in-country healthcare partners.** 

Drawing on our advisers’ expert knowledge of Orbis’s international operations, the donor committed a US$100,000 grant to help support the Orbis Flying Eye Hospital. This is the world’s only fully accredited ophthalmic teaching hospital onboard a MD-10 aircraft. 

By funding cutting-edge, virtual simulation training technology onboard, the impact of the donor’s gift travels with the jet on every mission. 

During the aircraft’s time in Bangladesh in 2024/25, 113 eye doctors and junior doctors participated in surgeries and lectures alongside Orbis’s expert volunteers, building capacity among senior ophthalmologists through their Training of Trainers initiative. This training was also shared globally, with sessions livestreamed to 47 countries. 

**95** 

The Orbis Flying Eye Hospital has taken world-class training to eye care teams in over 95 countries. 

**47** 

Orbis's training in Bangladesh was shared globally with 47 countries. 

**113** 

Eye doctors and junior doctors participated in surgeries and lectures during the aircraft's time in Bangladesh. 

**1** 

The world’s only fully accredited ophthalmic teaching hospital onboard a MD-10 aircraft. 

19 **CAF[  |  ]** ANNUAL REPORT 2024/25 



**CASE STUDY** 

Protecting the environment for the future requires collaboration between charities and the private and public sectors, with meaningful solutions increasingly reliant on innovations in finance and technology. 

The Scale Up Fund is a philanthropic alliance led by The Nature Conservancy, comprising private equity and entrepreneurial skills. 

Image: The Nature Conservancy UK Foundation 

The Fund supports The Nature Conservancy’s most promising conservation programmes in Africa and around the globe, enabling the charity’s collaborative approach — which engages local communities, governments, the private sector, and other partners — to tackle biodiversity loss and climate change. 

Working with CAF, a long-standing Charitable Trust donor directed a seven-figure donation to the Scale Up Fund. The donor, who is interested in supporting research and innovation, uses the Charitable Trust as an alternative to running a private foundation, working to accumulate and grow their philanthropic capital over the longerterm. As a result, when the opportunity to support The Scale Up Fund was presented, the donor could gift funds tax effectively. 

22 

Image: The Nature Conservancy UK Foundation 




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GREATER SOCIAL IMPACT THROUGH GIVING<br>Corporate Giving<br>Throughout CAF’s history, we have connected the  CORPORATE GIVING 2024:<br>private sector with charities to power social progress.  THE FTSE 100 AND BEYOND<br>In the UK and North America, we support and advise<br>CAF’s annual Corporate Giving report analyses<br>businesses to make a positive difference to the causes  giving by the FTSE 100 and, for the first time<br>that matter to their people and customers, and in the  in 2024, the wider UK business community.<br>communities in which they work.  The report looks at corporate giving both<br>as the outright sum of money donated and<br>We believe that inspiring and enabling more businesses  as a percentage of profit.<br>to give — and to give more strategically for the long term<br>— could be transformative for the charitable sector.<br>This drives our approach to corporate giving.<br>£1.82BN<br>PROVIDING EXPERT SUPPORT<br>IN 2023<br>We help organisations to build successful business<br>cases for giving, develop their strategies and  Total donations by the FTSE 100.<br>programmes, engage their people and deliver their<br>donations worldwide. Our experienced advisers,<br>insight-led services and global network of verified  8.3%<br>charitable organisations enable businesses to<br>achieve the positive change they want to see.  YEAR ON YEAR<br>Adjusted for inflation, the<br>CREATING OPPORTUNITIES FOR PROGRESS<br>decline in FTSE 100 donations.<br>The companies we work with are ambitious about their<br>giving, but they are also exposed to the uncertainty<br>and change of the wider business environment.<br>75%<br>So, throughout 2024/25, we have continued to make<br>Of UK businesses, beyond the<br>the case in the media, to government, and by engaging<br>FTSE 100, did not support<br>employees at all levels, for greater, more long-term<br>charities in 2023.<br>and strategic corporate giving.<br>Our insights powered discussions at major events,<br>including COP29 and Anthropy, where we explored<br>£5BN<br>what it means to be a responsible business and the role<br>giving to charity plays. Also, at the World Economic  A YEAR<br>Forum in Davos, we highlighted how innovations<br>The extra amount charities could<br>in finance and tech can position philanthropy to<br>receive if all companies gave at<br>achieve meaningful long-term social change.  least 1% of pre-tax profits.<br>23 CAF [  |  ] ANNUAL REPORT 2024/25 24<br>CHARITIES AID FOUNDATION  |   ANNUAL REPORT 2024 / 25 24<br>**----- End of picture text -----**<br>




**03. GREATER SOCIAL IMPACT THROUGH GIVING** 


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## **Nurturing Habitats and the Next Generation of Marine Biologists** 

> **[CASE STUDY]** 


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Native oysters and seagrass are vital to healthy marine ecosystems, but both are under severe threat. Seawilding is a charity located in western Scotland, working to change that. With a core team and dozens of local volunteers, the charity is pioneering the UK’s first community-led seagrass and native oyster restoration projects, with the aim of restoring lost biodiversity, sequestering carbon and creating green jobs. 

Thanks to support from CAF America’s donors, Seawilding was able to welcome three interns to its restoration team. They made an immediate impact — boosting oyster cage cleaning by 150%, increasing seagrass seed collection by 30%, doubling capacity for underwater surveys, and through freeing up the core team to run more outreach activities, helping to triple public engagement during their time with Seawilding. 

## **Engineering Social Impact through Employee Engagement** 


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In 2023, Smiths Group, a global pioneer in engineering, decided to empower its employees and drive positive change in communities that aligned with the company’s core purpose of engineering a better future. 

To bring this vision to life, the company launched the Smiths Group Foundation with £10 million in funding, focusing on improving access to STEM education for underrepresented groups, strengthening community safety and connectedness, and enhancing environmental sustainability. 


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Achieving coherence across the Smiths Group’s different regions was a key challenge that CAF helped solve, designing an innovative grantmaking programme supported by a clear, structured giving strategy — that enabled employees to play an active role. 

Together, we identified high-impact causes, assessed applications and worked with grant holders to measure outcomes. To date, the Smiths Group Foundation has awarded over £1.5 million to 19 organisations in 11 countries, with employees actively supporting the causes through funding and volunteering. 

“�We’ve�brought�together�a� passionate�team�of�Smiths� volunteers�to�establish�and� manage�our�Foundation…� Our�partnership�with�CAF� has�been�a�key�factor�in� our�success.” 

Hannah Constantine Corporate General Counsel, Smiths Group and outgoing Chair, Smiths Group Foundation 

25 **CAF[  |  ]** ANNUAL REPORT 2024/25 

26 



**03. GREATER SOCIAL IMPACT THROUGH GIVING** 

## **ACHIEVING GREATER SOCIAL VALUE** 

As the expectations, language and metrics around corporate giving shift, we are talking to Business for Societal Impact, B Lab and other leaders in social impact to assist our corporate donors — who are embracing world-class standards and frameworks — to shape, measure and report on their giving. 

## **STRENGTHENING OUR IMPACT** 

CAF’s corporate client team in the UK was a finalist for Team of the Year at the 2024 City AM Dragon Awards for Social Impact — recognised for their dedication to achieving extraordinary philanthropic, cultural or social impact. 

## **THE YEAR AHEAD** 

## **POWERING EMPLOYEE ENGAGEMENT** 

As businesses seek to engage their employees, charitable giving offers them a powerful way to inspire and connect colleagues globally and within hybrid workplaces. 

Launched in 1987, Give As You Earn (GAYE) enables employees to give to any charity in the UK directly from their pay before Income Tax is deducted. This reduces the amount of tax they pay and can encourage them to give more. Crucially, donations made through payroll giving often provide charities with a regular source of income. 

As a pioneer of payroll giving in the UK, we are passionate about promoting its benefits. Throughout 2024/25, we strengthened our links across HR networks and employee engagement forums to raise awareness of how employee giving and our matching solutions, can help to deepen an organisation’s culture. 

We plan to: 

- Continue working with influential organisations across sectors, to amplify the message that giving is a crucial part of a responsible business strategy — making the case for more businesses to donate at least 1% of their pre-tax profits. 

- Amplify the work of our Impact Accelerator, ensuring that clients who need our support have access to our strategic advisory, grant-making design and social investment services. 

- Drive further engagement through Give As You Earn to make it even more accessible, across pensioners, executives and pooled employee funding for charities. 

We have also shared a suite of tools to help businesses boost employee giving and leverage the value payroll giving generates. 

**KEY HIGHLIGHTS FOR CORPORATE GIVING DURING 2024/25** 

**CORPORATE DONORS EMPLOYEE GIVERS** £71.2m £61.8m paid out to charities received from worldwide. GAYE donors. 


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03.  GREATER SOCIAL IMPACT THROUGH GIVING<br>Driving Change in Society Through Giving<br>CASE STUDY<br>For the Skipton Group, giving is a way to live its<br>values and do tangible good. In 2022, the Skipton<br>Group committed to giving away 1% of its pre-tax<br> 1%<br>Group profits and continues to do this each year.<br>Shifting its approach from making a higher number  Of pre-tax group<br>profits donated<br>of smaller donations throughout the year, the Skipton<br>Group has aligned its giving around three strategic<br>pillars reflective of its history, purpose and the major<br>issues colleagues want to help tackle. These are: helping<br>people have a home; championing warm and efficient<br>homes, particularly for those living in fuel poverty;<br>and enhancing financial education and wellbeing.<br>With CAF’s support, the Skipton Group’s strategic<br>partnerships with charities provide clear oversight<br>of where its money goes and the impact it has.<br>“�It’s�a�really�powerful�<br>Formalising Skipton Group’s giving in this way<br>enables it to engage its members and employees,   initiative�[to�donate�1%�<br>while the evidence flowing back demonstrates<br>its commitment to societal change and highlights   of�pre-tax�profit]:�all�<br>what more needs to be done.<br>businesses�have�a�social�<br>dimension.�Company�law�<br>and�corporate�governance�<br>are�evolving�more�and�<br>more�to�consider�the�<br>impact�businesses�have�<br>on�stakeholders,�including�<br>wider�society.”<br>David Travis<br>Group Secretary and General Counsel,<br>Skipton Building Society<br>29 CAF [  |  ] ANNUAL REPORT 2024/25 30<br>**----- End of picture text -----**<br>




## **HELPING SOCIAL PURPOSE ORGANISATIONS TO THRIVE** 

CAF is committed to enabling giving with greater purpose and impact, helping social purpose organisations become more inclusive and resilient, and collaborating with funders to create an environment where philanthropy and civil society can thrive. 

~~4~~ 


31 **CAF[  |  ]** ANNUAL REPORT 2024/25 



**04. HELPING SOCIAL PURPOSE ORGANISATIONS TO THRIVE** 

## Central to CAF’s purpose is our belief in the value of charities, social enterprises and community groups, and the difference they make. 

As CAF’s centre of excellence for impact, our Impact Accelerator team provides strategic impact advisory services, grantmaking and social investment expertise. Over the past year, we have continued to embed this valuable support across our services. 

Our advisory offering includes research and analysis, strategic development, tools for measuring and communicating impact, diversification of income streams, and improvements in governance. We assist donors in achieving their philanthropic goals, in line with the needs of the communities they support. For corporate clients, this includes strengthening their employee and stakeholder engagement. 

With the goal of boosting resilience, we advise social purpose organisations on best-practice approaches and can provide much-needed flexible financing, through social investment loans and grants. 

Lastly, the Impact Accelerator team also drives impact at CAF, defining our theory of change and ensuring impact is at the heart of our roles as a service provider, adviser, innovator and influencer. 

Together, we have reinforced our impact framework — measuring our progress in achieving CAF’s mission across three outcomes: 

- More philanthropic capital driving positive change. 

- More resilient and inclusive social purpose organisations. 

- A more enabling policy environment for giving. 

## **CHARITY RESILIENCE INSIGHTS** 

Our Charity Resilience Insights look at how charities are experiencing and responding to sustained economic and social pressures. In May and June 2024, CAF surveyed 784 charity leaders as part of wider research with ACEVO, ACOSVO and Co3. 

**54%** 

Of charity respondents said that demand had increased “a lot” in the last 12 months, up from 46% in 2023. 

**75%** Of charity leaders’ time is taken up on average, with solving day-to-day problems. 

**50%** Named increased competition for funding and donations as a top challenge. 

**45%** Flagged concerns around financial sustainability. 

“��We�held�our�staff�development�day,� [reviewing]�much�of�what�we�had� covered�with�CAF.�The�staff�are�now� feeling�part�of�one�organisation…�and� are�on�the�journey�to�move�forward,� inspired�and�motivated.�[Their� feedback]�is�wonderful�to�hear.” 

C2C Social Action, A criminal justice charity 

33 **CAF[  |  ]** ANNUAL REPORT 2024/25 



**04. HELPING SOCIAL PURPOSE ORGANISATIONS TO THRIVE** 

## **Strengthening Charity Resilience** 

We work to give charities the strategic insight, tools and assistance they need to be resilient and ready for the future. 

Through our extensive research and advisory work with social purpose organisations, we have identified six characteristics that demonstrate an organisation’s potential to be resilient: 

1. Understanding purpose. 

2. Being financially and operationally fit. 

3. Evidencing impact. 

4. Prioritising people and culture. 

5. Being well-networked. 

6. Having external awareness. 

In March 2025, we launched our Charity Resilience Calculator. Powered by our research insights, the calculator is an online tool designed to help social purpose organisations assess and better understand where they need to build resilience. 

Charities can then benchmark their results — which spotlight strengths and opportunities for improvement — against others of similar sizes and the wider sector. 

## **Transparent, Fair and Accessible Grantmaking** 

CAF delivers grant programmes on behalf of clients, in addition to in-house programmes funded by discretionary legacy funds granted to CAF to enable the acceleration of social progress. 

In 2024/25, the Impact Accelerator launched the latest of CAF’s resilience building grant programmes, all of which offer unrestricted funding, tailored advisory support, access to webinars, peer learning and networking opportunities. 

The Arley Youth Programme is a two-year grant programme designed to support organisations working with young people in the Bristol area. CAF made eight awards totalling £625k. 

The organisations are receiving unrestricted funding, restricted funding to invest in the resilience of their organisation, and direct support from CAF’s advisory service who work closely with the organisations to build capacity and find solutions that will strengthen each organisation’s resilience in the long-term. 

Small and medium-sized organisations working to assist refugee and asylum seekers and working to mitigate health inequalities will also have the opportunity to access similar support through the Building Resilience Fund in the future. 

## **Social Investment** 

Research shows that the UK social impact investment market in the UK grew by 7% to £10bn in 2023. In the UK, social impact investment delivers impact across pressing social and environmental issues, while providing a financial return to investors. Social investment funds — like CAF’s Venturesome Impact Fund — which pool funding from our donors, play an important role in the social investment ecosystem. 

“��Taking�out�social�investment�with� CAF�has�truly�enabled�the�work�we� do�and�is�positively�impacting�the� lives�of�numerous�young�people� with�SEND.” 

CAF Investee 

CAF has been a social investment pioneer since 2002. We lend to social purpose organisations from funds made available by individuals, businesses and other charitable foundations to build their earned income streams. As the social purpose organisation repay us, we use the same funds to lend to other organisations looking for affordable, flexible finance. 

“��[This�is�a]�fantastic�way�of�helping� charities�with�short-term�funding� requirements�at�this�difficult�time,� especially�as�it�is�unsecured.�It� is�one�fund�that�can�help�many� charities�so�helps�with�[the]� diversification�of�my�gifting,�� with�CAF�undertaking�all�the� screening�and�due�diligence.” 

**Personal giving** During 2024/25, thanks to the generosity of donors, including CAF’s individual and corporate donors, and other charitable foundations, our Venturesome Impact Ellatem isquia spis acips andanis est  Fund — in its inaugural year — launched with £10 ream il maximus nusa volumae sioiune million of philanthropic capital and has funded 18 social investments. cus dem fuga modi ssectrere nonset. 

Leveraging our deep, long-standing expertise in social Ellateinvest **m** isquia spis acips andanis est remod ipic ent, the Impact Accelerator can also design tesecus dandae. Nam il maxime nusa volum si cus and deliver bespoke social investment programmes dem fuga. Ut es et a cor aut ea aut mfor private donors, companies and g **o** di ssecte eum vernment. 

quo id ese net quibus dolupt aquas venis eos abore CAF Donor pelectur, om molor eptiorit, sed exer natiis acea voluptate volorepudit reptata tempore nisitis diatis del et ressed quisciusape lam 

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imil ma dolor porrum net, ipsa coresci blacer sum **INSPIRING CAREERS** 

volupta temqui acillest renis as se cum num nam, Inspire Education Business Partnership (Inspire), a charity atur aut id molo min consed maxima cum chilling nature estis make itis orem.dedicated to connecting education and business to create opportunities for young people, awarded CAF’s Impact Atius eatem ipiti busam nobis reici psumqui re nos Accelerator Grantmaker of the Year. 

aliquam et volore, quid quo id ese net quibus dolupt aquas venis eos abore pelectur, om molor eptiorit, During�2024,�Inspire�achieved�a�major�milestone,�reaching�25,000� sed exer natiis acea voluptate voloepudit reptata young�people�across�London�and�the�South-East�with�its�� tempore nisitis diatis del et ressed quis ciusape lam careers�education�programmes.�The�award�recognises�� il estorem et ommo cusda ectem quunt arum ulles CAF’s�role�in�supporting�young�people�through�impactful� dicienis eicil ium cup  uam eos aute volori blabores partnerships,�including�our�work�with�Inspire’s�funder,�� am que expet non summer. Atius eatem ipiti busam Smiths�Group�Foundation. 

Atius eatem ipiti busam nobis reici psumqui re nos aliquam et volore, quid quo id ese net quibus dolupt aquas venis eos abore pelectur, om molor eptiorit, sed exer natiis acea voluptate. 

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35 **CAF[  |  ]** ANNUAL REPORT 2024/25 

36 



**04. HELPING SOCIAL PURPOSE ORGANISATIONS TO THRIVE** 


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Supporting More People<br>Affected by Brain Injury<br>CASE STUDY<br>Brains Matter is a charitable social enterprise   “ �Working�with�CAF�has��<br>assisting adults affected by brain injury from<br>accidents or illnesses. They provide a Community  been�amazing.�The�team��<br>Wellbeing Service offering one-to-one support,   has�been�really�helpful��<br>social groups and an activity centre. As the result   and�they�understand�how��<br>of the COVID-19 pandemic, the charity experienced<br>a fall in revenue, with people unable to attend   hard�it�is�for�charities�at�the�<br>paid-for, and in-person, sessions. Grant funding   moment.�Support�from�CAF��<br>also became limited.<br>has�allowed�us�to�manage��<br>Brains Matter applied to the Venturesome Impact<br>Image: Esteem<br>Fund for a blended finance package (part unsecured  our�cashflow�and�look�at�<br>**----- End of picture text -----**<br>


“ �Working�with�CAF�has�� been�amazing.�The�team�� has�been�really�helpful�� and�they�understand�how�� hard�it�is�for�charities�at�the� moment.�Support�from�CAF�� has�allowed�us�to�manage�� our�cashflow�and�look�at� developing�new�services.” 

Brains Matter applied to the Venturesome Impact Fund for a blended finance package (part unsecured loan/part grant) to support working capital, strengthen income streams and rebuild the charity’s reserves. 

## **Securing a Space for Young Adults** 

Kevin Bottrell Charity Manager, Brains Matter 

This funding enabled Brains Matter to increase in-person sessions, provide ad-hoc telephone support, grow client intake, promote networking and recruit a new employee. It has also been able to launch an employment support service, helping people move into voluntary and paid jobs — or even start a small business — improving their confidence and well-being. 

## **CASE STUDY** 

Esteem offers a range of free, group activities and one-to-one support for people aged 14-26. At its heart is a safe, inclusive space, shaped around each young person’s needs, built on trust, support and respect. 

“ �CAF’s�advisers�have�given� us�a�really�strong�foundation� to�build�on.�Being�able�to�talk� about�their�involvement�felt� like�we�had�had�a�rubber�stamp� when�we�had�any�conversations� with�stakeholders,�such�as�� the�council�and�the�high-networth�individuals�we�are� trying�to�engage.” 

A haven for hundreds of young people, the charity’s council-owned base was under threat of being sold due to its age and condition. To secure the property for the long-term, Esteem would need to raise around £500,000 — equivalent to its annual income — within 12 months of the building being put on sale. This fundraising goal became the focus of Esteem’s collaboration with CAF’s Impact Accelerator, as part of the Lloyds Bank Foundation’s development programme. 

Our advisers worked with Esteem’s CEO, colleagues and Trustees to establish an intentional culture of philanthropy across the charity — giving them the space, insights and frameworks to develop a strong case for funding support, with messaging aligned to their values and target audiences. 

Cat Vizor Chief Officer, Esteem 


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38 



## **FOSTERING A FAVOURABLE GIVING ENVIRONMENT** 

In collaboration with the CAF International Network of partners as well as other social purpose organisations, influential sector bodies, multilateral organisations and policymakers, CAF uses its expertise, influence and reach to enable greater and more impactful giving locally, nationally and globally. 




39 **CAF[  |  ]** ANNUAL REPORT 2024/25 



**05. FOSTERING A FAVOURABLE GIVING ENVIRONMENT** 

CAF’s work and history — connecting donors, charities, government, and other leading sector bodies — places us at the centre of the giving world. Together, we leverage these relationships, the unique insights they give us, and our industry-leading research to inform our work, help amplify the voice, needs and ambitions of the charity sector, and enable civil society to thrive globally. 

The CAF International Network is made up of independent non-profit organisations that are rooted in their communities, and experts in their region — with influence and reach spread across six continents. Through collaboration, network partners work to power global giving and help shape global philanthropy discourse. Together, we are committed to build a global culture of giving that: 

- Empowers local communities, enabling those who are most affected by issues to lead the way in developing solutions. 

- Fosters collaboration and innovation across sectors and borders. 

- Ensures that resources are directed where they are needed most. 

- Leverages diverse perspectives to create sustainable impact. 

Our Network partners share knowledge on urgent, and emerging, causes as well as the shifting global landscape, to deliver impactful support for the global communities we serve. 

Alongside this, our expert teams in the UK and North America work with donors to ensure their gifts reach their intended charitable causes safely and securely around the world, in compliance with the highest regulatory standards. We promote local expertise and best practice approaches, to achieve agile targeted and community-led interventions where they are most needed. 


“��Through�CAF’s�global� platform,�the�Pakistan� Centre�for�Philanthropy� (PCP)�is�able�to�amplify� its�mission�of�promoting� accountable�and�impactful� philanthropy.�We�greatly� value�the�collaboration,� knowledge�exchange�and� shared�commitment�to� enabling�more�effective� giving�worldwide.”� 

Shazia Maqsood Amjad Executive Director PCP 

## **Revitalising the UK’s National Culture of Giving** 

## **A COLLABORATIVE EFFORT** 

The decision to give is always a complex one, made up of an individual’s or business’s circumstances, their connections, experiences and the information they have at their fingertips. No one should be compelled to give, nor should giving substitute for the state, but governments — through policy, regulatory and legislative incentives and encouragements — are able to create environments that make giving, and more impactful giving, more likely. 

No one can change the world alone. We work in collaboration with our sector colleagues to make the case for change. In 2024/25, in the UK, we have continued to advocate for a joined-up, strategic framework for the incentivisation and encouragement of greater and more impactful giving, under the umbrella of a National Strategy for Philanthropy and Charitable Giving. 

We are proud to have worked with the Beacon Collaborative and a multiplicity of other organisations in the philanthropy sector to do this, including the Association of Charitable Foundations, UK Community Foundations, Pro Bono Economics and New Philanthropy Capital. 

## **A PLATFORM FOR ACTION** 

When we say that philanthropy and charitable giving has rarely been so important, it is grounded in our Charity Resilience insights. And when we express concern that people in the UK might be getting out of that habit of giving, it is because of our latest UK Giving Report findings. 

We chose to mark our centenary by supporting a series of Big Listen events run by the Centre for Social Justice (CSJ) around the country — in Liverpool, Leeds, Loughborough, Newcastle and Bath — to bring together 220 local charities, foundations and philanthropists. This set out a blueprint for greater local giving in a landmark report published by the CSJ in March, making a series of recommendations to government on how it could unlock billions of pounds worth of additional resource focused on social impact. 

Published in March 2025, we found that, although the UK public reported giving a record £15.4 billion in donations and sponsorship in 2024, this has been driven by fewer people giving more. For the first time, the split between those who give and those who do not was 50:50. That equates to six million fewer people giving today than five years ago. If the current trend, which pre-dates the pandemic and cost-of-living crisis, continues then next year, we expect giving to have become a minority activity in the UK. 

Our coalition building has not just been limited to the philanthropy sector. We are proud founder members of the new Impact Economy Collective, which brings together organisations that represent social investment and responsible business. The aim of the collective is to facilitate greater dialogue between the three sectors and government, and to work to demonstrate the practical ways that government can encourage and work alongside socially motivated capital. 

At the same time, our Corporate Giving Report and our High Value Giving research highlight the untapped potential for giving in the UK. All our advocacy work is grounded in our own experience and research, allowing us to set out our vision for a renewed British culture of giving. 

41 **CAF[  |  ]** ANNUAL REPORT 2024/25 

42 



A Conversation at the Heart of Government 

## **RAISING OUR GLOBAL AMBITIONS** 

As the global giving landscape shifts, the CAF International Network is evolving too. We are: 

- Extending our international reach by engaging with prospective new Network members. 

- Targeting audiences and partnerships, who can help us to further our impact. 

- Leveraging opportunities to lead the conversation about global philanthropy, wherever we can. 

More broadly, we are strengthening CAF’s strategic links with global membership bodies and multilateral institutions, such as the UN, Global Philanthropy Forum, World Economic Forum and Philea to create a robust and dynamic network of international stakeholders. 

In support of this, CAF was honoured to host the first European member gathering of the Asia Venture Philanthropy Network (AVPN), Asia’s leading network of social investors. 

Held in London in March 2025, the forum connected representatives from Accenture, the Anglo American Foundation, Impact Europe, Standard Chartered Foundation, the Bechtel Corporation and others, to exchange learnings and identify opportunities for impactful cross-border collaborations. 

In April 2025, CAF America connected philanthropic leaders, funders and changemakers from around the globe for the ninth annual International Grantmaking Symposium. Focused around the theme, Move Forward Together: Cross-Border Grantmaking for Impactful Partnerships, delegates took part in interactive workshops and panels — networking, debating and learning from each other. 

“��CAF�has�been�an�� invaluable�partner�in� bringing�global,�futurefocused�perspectives�to�the� GPF�community…�their� insight�and�collaboration� have�enriched�our�shared� understanding�of�where� philanthropy�and�charity�is� headed�around�the�world.”� 

Sarah Howard Managing Director, Global Philanthropy Forum 

on its critical role providing emergency aid and long-term support to refugees, UNHCR shared how humanitarian operations could be enhanced. 

And with Concordia, we linked up the public and private sectors to focus on the future of financing for impact, exploring the potential for innovative and sustainable funding to make a lasting difference in the pursuit of the UN’s Sustainable Development Goals. 

At the beginning of 2025, CAF joined a panel of experts during the World Economic Forum 2025 to explore how innovations in finance and technology can drive meaningful solutions to global challenges, position philanthropy as society’s “risk capital” and drive greater impact across sectors. 

## **DRIVING GLOBAL DEBATE** 

At the 2024 United Nations General Assembly, alongside UNHCR, CAF led a discussion among thought leaders to examine how collaboration across sectors with philanthropic organisations can strengthen resilience and the delivery of essential relief efforts. Drawing 

This was followed by the Global Philanthropy Forum Leaders Summit in March, where we contributed alongside our International Network partners, Instituto para o Desenvolvimento do Investimento Social Instituto para (IDIS) and PCP, and other sector experts to interrogate how philanthropy can strengthen communities. 

**44** 



**05. FOSTERING A FAVOURABLE GIVING ENVIRONMENT** 


## **Our World Giving Research** 

Since 2009, CAF’s World Giving Index has provided an annual snapshot of generosity around the world. The study offers a unique insight into how people engage in social activities for the benefit of their communities and champions the growth of global giving. In 2025, the World Giving Index is evolving to become the World Giving Report. This will provide deeper insights into the public’s attitudes and behaviours around generosity across 101 countries and territories. 

**WORLD GIVING INDEX 2024** 

**#1** INDONESIA Ranked as the world’s most generous country for the seventh year running. **£4.3** BN 

People gave their time, money or helped someone they didn’t know in 2023, equivalent to 73% of the world’s adult population. 

**75** Countries improved their World Giving Index score in 2023. 

**CASE STUDY** 


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Image: Hope for Haiti<br>**----- End of picture text -----**<br>


## **EMERGENCY HUMANITARIAN EFFORTS** 

Throughout�2024/25,�in�collaboration�with�organisations,� such�as�the�Disasters�Emergency�Committee�in�the�UK,� and�a�global�network�of�validated�charities,�CAF�and�our� donors�have�helped�to�provide�essential�support�to�those� impacted�by�disasters�and�crises�around�the�world. 

From�responding�rapidly�to�the�devastating�earthquake� in�Myanmar,�the�wildfires�in�Los�Angeles�and�Valparaíso,� and�floods�in�Nepal,�Valencia�and�Rio�Grande�do�Sul,�to� addressing�the�aftermath�of�the�escalating�violence�and� unrest�in�Haiti�and�the�ongoing�humanitarian�crisis�in�the� Middle�East,�the�funds�generated�are�helping�to�provide� urgent�life-saving�assistance,�alongside�reinforcing�� long-term�recovery�plans.� 

One�of�the�most�challenging�aspects�of�responding�� to�disasters�and�humanitarian�crises�around�the�world�� is�the�need�to�act�quickly�with�limited�information.�� 

In�September�2024,�CAF�America�launched�the�� Global�Relief�Navigator,�a�one-of-a-kind�innovative� grantmaking�solution�that�enables�donors�to�make�� safe,�compliant�gifts�to�validated�disaster�response�� and�relief�organisations. 

The�navigator�allows�US�donors�to�track�disaster�events� and�the�trusted�organisations�responding�to�them�in� real�time.�Donors�can�make�informed�decisions�and� confidently�support�programmes�to�provide�immediate� relief�or�long-term�rebuilding,�all�in�compliance�with� often�complex�regulations.� 

Since�launching�the�Global�Relief�Navigator,�as�of�� May�2025,�CAF�America�had�financed�grants�of�over�� $3.7�million�in�disaster�relief�funding,�supporting�� 49�organisations�as�they�responded�to�24�disasters�� or�crises�around�the�world. 

## **One Year on in Haiti** 

Over 12 months since gang violence and political instability surged in Port-au-Prince, triggering widespread disruption across Haiti non-profits continue to deliver critical support and stand with their communities despite the ongoing conflict, and other threats. 

Over the past year, CAF America facilitated US$244,000 in grants to organisations operating in Haiti — such as Fondasyon Konesans ak Libète (FOKAL), Hope for Haiti, Respire Haiti, and the Haiti Development Foundation — supplying essential funding for vital educational initiatives in schools, livelihood and leadership programmes, healthcare and food security projects. 

“We’re�immensely� grateful�for�our� partnership�with� CAF�America�and� the�generosity�of�its� donor�community.” 

Skyler Badenoch CEO, Hope for Haiti 

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46 



**05. FOSTERING A FAVOURABLE GIVING ENVIRONMENT** 

## **The Transformative Power of Food Aid in Kraków** 

## **CASE STUDY** 

“�CAF�America�has�played�� a�critical�role�in�our�ability� to�respond�to�growing�food� insecurity�in�Poland�and�� Ukraine.�Their�support�has� allowed�us�to�scale�life-saving� food�aid�programmes,�respond�� to�humanitarian�crises,�and�� help�thousands�of�individuals� regain�stability.” 

For the past five years, CAF America has helped our donors support Kraków Food Bank to fight food insecurity and reduce food waste. The charity’s mission is simple but vital, to rescue surplus food from producers and retailers, and deliver it to individuals and families in need through a wide network of local partners. 

From emergency food parcels for refugees and homeless people to innovative dignity-based programmes like The Good Store, Kraków Food Bank works to make sure that no edible food goes to waste and no one goes hungry. 

At The Good Store, people can select groceries just as they would in any other supermarket and pay for them using a points-based card provided by the food bank. There is also a small cafe space, offering support and a welcoming community. 

Beata Ciepła, Chair, Kraków Food Bank 

## **Shaping a Just Future** 

**CASE STUDY** 

Since�opening�14�years�ago,�the�Museum�of� Memory�and�Tolerance�in�Mexico�City�has� welcomed�over�5.8�million�visitors.�Through� powerful�exhibitions�and�educational�programmes,� it�confronts�prejudice,�illuminates�human�rights� abuses�and�promotes�social�responsibility. 

and wide-reaching. More than 193,000 children have participated in sponsored tours, 244,000 teachers have brought students, and 300,000 virtual visits have expanded its reach. Online, a digital community of over one million followers continues to engage with its message. 

During the Covid-19 pandemic, the Museum was forced to close to the public for more than a year. However, with funding from CAF America, it was able to retain its essential visitor service and quartermaster teams to keep the Museum operational and safe during that time. 

Since 2021, CAF America has provided ten grants totalling US$57,000 to the museum, and the organisation’s impact on education is both deep 

Image: The Museum of Memory and Tolerance 

Since opening in 2022, The Good Store has distributed over 114,000kg (251,000lbs) of rescued food, valued at more than PLN 1.63 million (US$405,000). The food is sourced from local retailers, producers and distributors, preventing food waste while meeting a growing humanitarian need. 


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Image: Kraków Food Bank<br>**----- End of picture text -----**<br>



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Image: Kraków Food Bank<br>**----- End of picture text -----**<br>


47 **CAF[  |  ]** ANNUAL REPORT 2024/25 



## **CHARITY FINANCIAL SERVICES** 



In the UK, CAF owns CAF Bank Limited and CAF Financial Solutions Limited (CFSL). Both organisations help charities to manage their finances and funds so they can continue to do their life-changing work. 

CAF Bank is all about banking with purpose and is dedicated to meeting the banking needs of charities and social purpose organisations, of all sizes and cause areas. 

CFSL — CAF Bank’s sister organisation — offers charitable investors a range of funds that incorporate Environmental, Social and Governance (ESG) ~~6~~ outcomes, alongside a focus on financial returns. 49 **CAF[  |  ]** ANNUAL REPORT 2024/25 



**06. CHARITY FINANCIAL SERVICES** 

For more than 40 years, CAF Bank has supported its charity customers by understanding their challenges and sharing their values. Today, CAF Bank remains committed to expanding its reach and improving its services to further the impact of UK charities at home and beyond. 

Around 45% of CAF Bank’s customers are small organisations. This means that most of the people CAF Bank colleagues talk to are volunteers rather than finance professionals. Drawing on an experienced customer service team, CAF Bank understands the range of support its customers need and shapes the organisation’s strategy and objectives to reflect this. 

## **STRATEGY AND OBJECTIVES** 

CAF Bank’s aim is to be the preferred bank for charities of all sizes, and colleagues work to: 

- Maintain a financially robust and sustainable business model to protect customers’ deposits. 

- Deliver continual improvements in customer service and efficiency. 

- Grow the business. 

## **A COMMITMENT TO EXCELLENCE** 

CAF Bank colleagues’ dedication to their customers and causes was recognised when CAF Bank was named Best Bank and Best UK Charity Bank Account in Charity Excellence’s Charity Bank Account Survey 2024. 

The survey of charity banking customers also found CAF Bank to be top-rated both for overall performance and in responding to customers. Similarly, the team were Highly Commended in the Best Charity Banking Provider category at the 2025 Business Moneyfacts awards, which celebrates excellence across the whole of the UK’s business banking and finance sector. 

## **A MULTI-YEAR TRANSFORMATION** 

As the 2024/25 financial year closed, CAF Bank was working on completing the first phase of its digital modernisation project. This multi-year transformation programme brings together substantial investment in a new core banking platform and further develops the organisation’s banking proposition.[1] 

The new platform will enable CAF Bank colleagues to continue to deliver the tailored service, security and expertise that charities need and deserve, while ensuring they can meet more charities’ banking needs. 

## **STRATEGY AND OBJECTIVES** 

Redesign tailored banking **R** for charities. 

Impact civil society by enabling charities to do more of their **I** life-changing work. 

Scale sustainably to serve **S** more charity customers. 

**E** 

Expand and diversify our product suite and customer base. 

1  CAF Bank’s transformation programme was implemented following the end of the 2024/25 financial year, going live on 9 June 2025. 

Many charities are still repairing their finances after the Covid-19 pandemic and the cost-of-living crisis, challenges that have been made harder to navigate by a new wave of economic volatility and geopolitical uncertainty. In support, CAF Bank’s customers can benefit from access to CAF’s Charity Resource Hub, which provides tools, guidance and inspiration to help build charities’ resilience. 

Further to this, CAF Bank was proud to be part of a working group co-ordinated by UK Finance, exploring ways to improve access to dedicated banking options for charities, and recognising the need for a stable financial environment to support their vital work. This project has since concluded with the publication of the Voluntary Organisation Banking Guide. 

As a charity bank, CAF Bank operates under the same regulatory and governance standards as any other financial institution. It has integrated the Consumer Duty principles into its business decision making and welcomed the Financial Conduct Authority’s (FCA) new regulations ensuring financial firms prioritise customer needs and provide fair value, clear communication and strong consumer protection. 

## **TACKLING FRAUD** 

Financial crime is a growing threat to charities and the impact can be devastating. CAF Bank is dedicated to providing a safe and secure bank for charities. 

Through its specialist support and expertise, CAF Bank works to protect its customers from financial crime so they can focus on what matters most. Its online **security centre** offers fraud prevention support for everyone. 

From staying ahead of the latest scams to following simple fraud prevention tips, experts provide essential insights to help keep funds safe. 

## **A GREENER SECTOR** 

Research�commissioned�by�some�of�the�UK’s� leading�charities�in�2023,�found�that�almost� 80%�of�the�UK�public�said�that�charities�have�a� responsibility�to�be�environmentally�sustainable.� 

CAF�Bank’s�green�loans�have�been�designed� to�empower�charities�and�social�purpose� enterprises�to�achieve�their�sustainability�goals� while�channelling�funds�into�environmentally� beneficial�projects.�During�2024/25,�three�housing� associations�—�Clydebank,�Sutton�and�Calvay�—� secured�green�loans�from�CAF�Bank,�to�help�them� build�a�greener,�more�sustainable�future�for�their� organisations�and�the�communities�they�serve.� 

In�addition,�CFSL�offers�innovative�deposit� products�that�help�charities�manage�their�savings� efficiently�and�effectively.� 

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52 



**06. CHARITY FINANCIAL SERVICES** 

## **Tackling Fuel Poverty** 

CAF BANK’S YEAR AT A GLANCE 

DRAWN AND COMMITTED LOAN BALANCES: £283 **m** 

PROFIT BEFORE TAX: 

£14.7 **m** 

CUSTOMER DEPOSITS: PHONE CALLS HANDLED: £1.45 **bn** 75,020 

LOANS ADVANCED: 

CUSTOMERS: 14,388 

£41.5 **m** 


**----- Start of picture text -----**<br>
CASE STUDY<br>**----- End of picture text -----**<br>


A Glasgow-based housing association is reducing its residents’ energy bills following a major upgrade, made possible with support from CAF Bank and the Scottish Government. 

Image: Calvay Housing Association 

Calvay Housing Association secured a £2.77 million Green Loan from CAF Bank, plus additional funding from the Scottish Government’s Social Housing Net Zero Heat Fund, which together totals £4.8 million. 

The funds are being used to upgrade 267 of Calvay’s 860 units in the East End of Glasgow. The work will include installing new temperature and humidity sensors, wall insulation and net-zero heat pumps, which will help residents reduce their energy use. 

(as at 30 April 2025) 

FASTER PAYMENTS MADE: 

2.19 **m+** 

CUSTOMER ACCOUNTS: 

25,857 

(as at 30 April 2025) 

53 **CAF[  |  ]** ANNUAL REPORT 2024/25 



**06. CHARITY FINANCIAL SERVICES** 

## **Providing Life-Saving Search and Rescue Services** 

**CASE STUDY** 

Saving lives, supporting the emergency services and educating people on how to stay safe across more than 5,000 square-kilometres of Northumbrian countryside is no small task. But the Northumberland National Park Mountain Rescue Team (NNPMRT) do so regardless of the time, date, or weather. 

Requiring specialist equipment and facilities to undertake their life-saving search and rescue services, the team needs the right financial planning in place to ensure they have the funds to continue their vital work. Investing in IFSL CAF ESG (Environmental, Social and Governance) Funds helps them do that. 

Image: Northumberland National Park Mountain Rescue Team 

Entirely run by volunteers, NNPMRT members respond to approximately 100 incidents each year. They also donate 4,000 hours a year to support the team’s governance, administration, training, fundraising, and vehicle and equipment maintenance. 

“ Having�financial�security�is� paramount�in�ensuring�we� can�support�the�public�and� colleagues�in�other�emergency� services.�Working�with�CAF� gives�us�that�security.” 


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can�support�the�public�and�<br>colleagues�in�other�emergency�<br>services.�Working�with�CAF�<br>gives�us�that�security.”<br>Iain Nixon<br>Team Leader, NNPMRT<br>Image: Northumberland National<br>Park Mountain Rescue Team<br>**----- End of picture text -----**<br>



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Responding to<br>100<br>incidents a year<br>Image: Northumberland National<br>Park Mountain Rescue Team 56<br>**----- End of picture text -----**<br>


55 **CAF[  |  ]** ANNUAL REPORT 2024/25 



## **BUILDING A LEADING, GREAT AND SAFE PLACE TO WORK** 


Our ambition is for everyone at CAF, no matter where they are based, to feel involved in shaping our future and equipped to help us make an even greater, positive impact together. 

~~7~~ 57 **CAF[  |  ]** ANNUAL REPORT 2024/25 

Image: CAF 



**07. BUILDING A LEADING, GREAT AND SAFE PLACE TO WORK** 


## **Unifying Our Global Workforce** 

## **SPOTLIGHT ON NORTH AMERICA** 

Our One CAF Strategic Plan aims to enable our colleagues across the UK and North America, to collaborate and operate as One Charities Aid Foundation — a more unified, agile and innovative organisation equipped to maximise the value we bring to donors, charities and wider society. 

CAF America has implemented several key initiatives that have significantly enhanced internal operations and improved staff retention. Recent updates — including a revised compensation strategy, the launch of a new performance management programme, and the implementation of a standardised onboarding process — have collectively led to a notable reduction in staff turnover. 

To realise our ambitions, we are making strategic investments in our people, processes, technology and data, and aligning — as well as streamlining — our systems, operations, ways of working and governance structures. Integral to our success is the delivery of CAF’s Global People Plan, which is unifying CAF’s workforce around our shared purpose, organisational objectives and values to deliver an employee experience like no other. 

Jessie Kraft was confirmed in post as President and CEO of CAF in North America in 2024/25, with a comprehensive organisational redesign also completed, focusing on decentralising authority and streamlining workflows. This positions CAF America to operate with greater agility and effectiveness as it continues to grow. 

In 2024/25, we acted to: 

In addition, CAF Canada marked a major milestone by appointing its first in-country Managing Director, Joanne Kviring. This new leadership role will enable deeper focus on the unique philanthropic landscape in Canada and support the continued growth and development of our work across the country. 

- Improve our attraction and recruitment practice to ensure equity, transparency and fairness in all aspects. 

- Strengthen our onboarding experience for those joining our organisation, including developing a more seamless day-one experience and easyto-access information for those starting their journey at CAF. 

To celebrate these accomplishments and align around future priorities, staff from CAF America and CAF Canada, along with the CAF America Board, gathered in Washington, D.C. in March for All Team Days. The event celebrated a successful year and officially launched the planning phase for the implementation of the One CAF Strategic Plan. 

- Enhance our talent management and career development practices, such as rolling out our Management Development Framework in the UK and aligning our organisation development approach across our global operations. 

## **The CAF Global People Plan** 

Establish CAF as a leading, great and safe place to work, wherever our people are located around the world. 

## **OUR PEOPLE MISSION** 


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OUR VALUES<br>Move forward together<br>Act with integrity<br>Shape the change<br>**----- End of picture text -----**<br>


## **OUR PEOPLE STRATEGY** 

Find great people and keep them, optimising retention so individual colleagues and our teams can perform to a consistently high standard in the work they deliver for CAF. 

## **OUR COMMON BOND** 

Our strength as CAF is found in the breadth and depth of diverse skills, knowledge and experience that our community of people possesses. **OUR EMPLOYEE EXPERIENCE** Design and develop an employee experience like no other that brings together our worldwide workforce aligned to one CAF mission. 

- Reinforce and promote our dedicated support for colleagues’ physical, mental and financial wellbeing. 

- Continue to make sure our reward framework drives and delivers equity of pay and recognises employees’ achievements, through service milestones, awards and seasonal celebrations. 


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**07. BUILDING A LEADING, GREAT AND SAFE PLACE TO WORK** 

## **CAF Together** 

In 2024/25, we established our CAF Together programme, led by a working group of colleagues representing CAF in the UK and North America, and CAF Bank. 

We want to build a culture at CAF that is recognised for fostering high-performing, purpose driven teams, where everyone feels a sense of belonging and plays an active part in enabling our organisation to be the best it can be. 

Our CAF Together working group supports us in this, through: 

- Providing thoughts and feedback to our Chief People Officer on issues of culture, fairness and belonging in the workplace, for example, recruiting, hiring and retaining our people effectively, and career development. 

- Gathering people-related data and insights, as well setting, reviewing and monitoring the progress of measurable objectives. 

- Helping to raise awareness among colleagues, alongside creating opportunities to promote fairness and belonging in the workplace. 

## **CAF EMPLOYEE SURVEY 2025** 

In January 2025, we ran our annual employee survey, combining results from our UK and North American workforce for the first time. In total, 87% of colleagues participated. 

## 93% 

Are willing to go the extra mile to help CAF succeed. 

## 87% 

Felt the work they do is important to CAF’s success. 

## 90% 

Feel proud to work for an organisation that has CAF’s purpose. 

## **Our Approach to Pay** 


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As part of the CAF Deal for employees,<br>we aim for our pay approach to be:<br>• Competitive<br>• Transparent<br>• Fair and equitable<br>To achieve this, we pitch our base pay<br>at the competitive market median. On<br>an annual basis, we externally evaluate<br>and benchmark the scope, grade and<br>pay range of each role, working with<br>an independent reward specialist to<br>capture accurate salary-survey,<br>market pay data and trends.<br>In the UK, CAF is accredited as a Living<br>Wage Employer. This means we are<br>committed to paying all our employees<br>at least the real living wage, which is<br>independently calculated based on<br>the cost of living.<br>CAF links its performance management<br>framework to the organisation’s end-of-<br>year performance — recognising high<br>performance and behaviours aligned to<br>our values in a fair and transparent way.<br>Image: CAF<br>**----- End of picture text -----**<br>


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**07. BUILDING A LEADING, GREAT AND SAFE PLACE TO WORK** 

## **THE GENDER PAY GAP** 

We are committed to meeting the UK pay gap norms for both median and mean. 

As of 5 April 2024, in the UK, our median gender pay gap was 25.9%, in favour of men. This compares with the national median pay gap of 13.1% (Office for National Statistics). Our mean pay gap was 26%, compared with a UK mean of 13.8% (Office for National Statistics). 

For 2024, there was a 0.4 percentage point increase in the mean average and a 1.9 percentage point decrease in the median average when compared with 2023. 

When comparing 2024 with 2017, there was a 2.0 percentage point decrease in the mean average and an 8.3 percentage point decrease in the median average. 

As part of our 2024 analysis, we worked with external experts to complete a deeper, more detailed review of our UK data and the insights it generates will feed into our action plan for the year ahead. 

## **OUR EMPLOYEES’ VOICE** 

The Employee Council acts as a voice for our UK employees to the CAF leadership team. Its mission is to promote workforce engagement, boost performance and foster development across CAF by actively engaging with colleagues on key corporate matters and empowering people to voice their opinions. Comprising dedicated volunteers elected to the Employee Council, they ensure that every part of the organisation is represented and heard. 

## **SAFEGUARDING** 

Everyone at CAF is responsible for ensuring the safety and protection of our colleagues and those who use or benefit from the services we provide. Our Safeguarding and Vulnerability policy applies }to all CAF entities and employees, as well as those who use or benefit from the services we provide. 

As our policy makes clear: 

- The welfare of individuals is paramount. 

## **OUR ANNUAL PAY AND CAF DEAL REVIEW** 

CAF is committed to delivering a highly competitive reward offer, as part of our work to be a leading, great and safe place to work. Our annual pay review assesses the pay of current employees and their roles against market data, accounting for our financial performance and other external data. 

This has included externally benchmarking pay across our UK workforce, increasing paid holiday days, and enhancing the BUPA Cash plan benefit for everyone. Over recent years, we have delivered one-off cost-ofliving payments, as well as a 5% uplift to basic pay in May 2022 and 2023 respectively. Last year, we provided an average 3% uplift in pay. 

Throughout the last 12 months, we have witnessed challenging economic conditions that the UK has sought to navigate through, including an increase in National Insurance contributions towards the end of the financial year, which is having a significant impact on employers. Considering these factors, the pay award being made to our UK workforce across all grades for year 2025/26 is 2%, effective from 1 May 2025. 

- Everyone has the right to be protected from harm. 

- We take all allegations, suspicions of harm and concerns seriously and respond to them swiftly, fairly and appropriately. 

- We expect everyone to work in partnership to promote the safeguarding of individuals in all areas of CAF’s work. 

Employees can raise a concern in whatever way they feel comfortable, in confidence and without fear of repercussion or victimisation affecting their position within CAF. For example, they can speak to their line manager, our Employee Council, a HR representative and/or member of our Risk and Compliance team in confidence. They can also refer to our Raising Concerns (Whistleblowing) Policy, which explains how an employee can raise a serious concern confidentially through an independent third-party service, NAVEX. 

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Image: CAF 



**07. BUILDING A LEADING, GREAT AND SAFE PLACE TO WORK** 

## **OUR PROGRESS TOWARDS GREATER SUSTAINABILITY** 

CAF’s purpose is to accelerate progress in society towards a fair and sustainable future for all. It is important, therefore, that we place our responsibilities to the environment and natural world at the forefront of how we operate and the support we provide. 

We are committed to becoming a more sustainable organisation and achieving net zero across our UK operations by 2050. This includes those within CAF Bank. However, we recognise that this commitment is just a starting point for the focused and continuous work we need to do as an organisation to achieve it. 

Since 2023, as part of our work to develop a sustainability roadmap for CAF, we have focused on improving our data capture capabilities and understanding. Informed by a review of our Scope 1 and 2 emissions, we are now rolling out our next phase of actions to reduce CAF’s carbon footprint. 

For example, we are currently reviewing our forwardlooking property plan in the UK, with a focus on long-term sustainability. Our London office already runs on 100% renewable energy. While, at CAF’s Kings Hill office, we are set to transition from 60% to 100% renewable energy sources by October 2025. Plans are also underway to install a solar energy system at this site, which will reduce our emissions even further. 

Other measures include a commitment to: 

• Continually review and improve our environmental performance, embedding an environmental management system across our organisation and environmental management best practice within our operations. 

• Integrate sustainable and circular procurement and sourcing into our processes, using our buying power to select solutions that meet our sustainability criteria. For example, we have worked with our employee pension provider to make sure that our Default Fund (the default fund that employees’ pension contributions go into) is now 98% ESG-aligned. 

• Raise colleagues’ awareness of environmental issues through training and communications, encouraging environmentally responsible behaviour. 

- Expand our measurement approach in the future to include Scope 3 emissions. 

CAF’s operations in the UK qualify for the Energy Savings Opportunity Scheme (ESOS), which is a mandatory energy assessment scheme. Following compliance with our phase-three obligations, we are now finalising our phase-four measures. Further information about ESOS compliance is available via **www.gov.uk** . 

## **CAF BANK** 

CAF Bank provides transactional banking services and lending to charities and social purpose organisations. 

CAF Bank only lends money to charities and social purpose enterprises. Therefore, it does not provide any financing to companies whose operations involve fossil fuel extraction, processing or sale, and/or traditional petrol or diesel vehicle manufacturing. CAF Bank reviews its lending criteria and policies on a regular basis to ensure these standards are upheld. 

Since 2003, CAF Bank has provided green loans, which are aligned to the Loan Market Association’s Green Loan principles, to help charities finance environmentally beneficial projects. 

Internally, CAF Bank recognises the risks and opportunities that environmental change and the transition to a lower carbon economy present to its organisation, as well as the charities and social purpose organisations it serves. In response, CAF Bank has developed a comprehensive environment and climate risk register and integrated the physical and transition risks associated with climate change into its Enterprise Risk Management Framework. 

In addition, CAF Bank maintains a conservative portfolio of treasury investments that is governed by the Bank’s internal Treasury Policy. This details what CAF Bank will and will not invest in, as well as the ESG considerations that apply when making investment decisions. CAF Bank’s treasury portfolio is subject to quarterly screening through the publicly available Sustainalytics ESG risk-rating tool. 


## **SUPPORTING DONORS AND CHARITIES’ SUSTAINABLE AMBITIONS** 

CFSL�also�offers�a�range�of�funds�that�incorporate�� ESG�outcomes�alongside�a�focus�on�financial�returns. 

Where�we�can,�CAF�aims�to�assist�social�purpose� organisations�and�donors�to�achieve�their�sustainability� goals�through�our�products�and�services. 

Our�Venturesome�Impact�Fund�provides�flexible� and�affordable�repayable�finance�to�charities,�social� enterprises�and�community�groups�all�over�the�UK,� working�to�deliver�a�fairer,�more�sustainable�future. 

This�includes�facilitating�greater�and�more�impactful� gifts,�as�well�long-term�giving�programmes,�for� corporates,�individuals�and�families�committed�� to�promoting�environmental�causes. 

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## **FINANCIAL REVIEW** 

## The challenges charities continue to face are significant. 

While many charities are working to rebuild their finances after the Covid-19 pandemic and the costof-living crisis, they are now faced with continued economic volatility and geopolitical uncertainty. Many are operating within a landscape shaped by inflationary pressures, rising service demand and reductions in public funding. At the same time, our research indicates long-term declines in individual giving and volunteering, particularly among younger generations, which further strains resources. ~~8~~ 67 **CAF[  |  ]** ANNUAL REPORT 2024/25 




**08. FINANCIAL REVIEW** 

Despite the challenging economic and financial conditions for charitable giving in the UK and around the world, 2024/25 has been a record year with donations of £1.2 billion paid by CAF to charities around the globe. This is thanks to the generosity of the donors we work with and comes at a time when philanthropy and charitable giving have never been more needed. 

CAF’s accounts are consolidated and, therefore, include the income, costs and balance sheets of its subsidiaries in the US, Canada and the UK. The principal subsidiaries are CAF Bank, CAF America and the CAF American Donor Fund. The primary sources of unrestricted income arise from operating donor advised funds, together with income earned from financial assets and interest on loans. Restricted income consists predominantly of donations to donor advised funds in CAF (the Charity), CAF America and CAF American Donor Fund, and from legacies. The group balance sheet consists primarily of the unrestricted and restricted charitable funds of the Charity and of its subsidiaries, together with donor client balances where the Charity is acting as agent as well as CAF Bank depositor balances. 

We have continued to maintain good control of our costs, with the stability of CAF’s position helped by income from interest earned as rates have remained higher for longer than anticipated. Growth in income has again been notable in CAF America, particularly from third-party giving platforms. This has allowed us to achieve greater impact working with our donors and partners, and at the same time invest in the future of our organisation. 


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£1.2bn<br>PAID BY CAF TO CHARITIES<br>AROUND THE WORLD<br>**----- End of picture text -----**<br>


## **RESTRICTED FUNDS AND DONOR CLIENT BALANCES** 

At 30 April 2025, restricted funds held in respect of our donor advised funds, offering flexibility for donors to suggest onward donations at a later date and to maintain philanthropic capital, increased to £1.99 billion (2024: £1.85 billion). Restricted funds benefited from the high level of receipts, particularly in the US and from the addition of investment income of £24.5 million (2024: £23.8 million). Despite the increased market volatility in the latter months of 2024/25, our financial investments benefited from gains of £16.4 million (2024: gains of £73.5 million) contributing to their aggregate market value rising to £1.04 billion at 30 April 2025 (2024: £979.6 million), and total assets growing from £1.87 billion to £2.00 billion. 

Donations received by the group and subsequently paid to charities represent the principal movements in our restricted and donor client balances. The restricted funds principally relate to donor advised funds operated in the UK and North America. CAF America also receives donations from third-party giving platforms. Donor client balances consist of donations received by CAF and subsequently paid to other charities through CAF Give As You Earn and CAF Donate. 

We have illustrated earlier in this report how the value of funds we have sent to charities around the world has exceeded £1.20 billion (2024: £1.13 billion). The continuing generosity of donors using our services in the UK, US and Canada enabled this level of support, with donations received exceeding £1.34 billion (2024: £1.15 billion). 

Our donor client balances, which reflect donations in the course of processing for CAF Give As You Earn and CAF Donate, stood at £3.9 million (2024: £6.2 million). 


**----- Start of picture text -----**<br>
 Income from donations,<br> Donations payable<br>legacies, grants &<br>to charities<br>Restricted funds and donor client balances investments<br>2024/25  2023/24  2024/25  2023/24<br>£m  £m  £m  £m<br>Restricted funds per Group Statement of Financial<br>Activities (SOFA)  1,277   1,089   1,134   1,065<br>Donor client balances (note 21 to the Financial Statements)  108   107   70   68<br>less: CAF Give As You Earn receipts transferred to restricted<br>funds and included in the Group SOFA  (42)  (41)  (1)  (1)<br>Net donor client balances  66   66   69   67<br>Total  1,343   1,155   1,203   1,132<br>**----- End of picture text -----**<br>


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**08. FINANCIAL REVIEW** 

## **CAF BANK LENDING** 

Although the economic environment remains challenging, committed loans and advances to customers continued to grow in 2024/25, rising from £255 million as at 30 April 2024 to £283 million as at 30 April 2025. Within this total, loans to charities and social housing organisations increased by £41.5 million, following continuing demand from registered housing associations in particular. Social housing associations represent 69% of our drawn lending book by value (2024: 62%). 

We maintain a pipeline of lending opportunities: as at 30 April 2025, CAF Bank had £26.5 million of loans approved pending final agreement and commitment (2024: £32.2 million). 

Given the inflationary environment and ongoing cost-of-living pressures, CAF Bank has continued to monitor and analyse both the collective and specific loan provisions. The quality of the loan book remains strong. As at 30 April 2025, the collective provision is determined as £1.2 million (2024: £1.8 million). The cost of living and the inflationary environment have impacted charities directly and through their donor base. This has resulted in specific provisions of £1.0 million at 30 April 2025 (2024: £0.6 million). 

## **CAF BANK LIQUIDITY, INVESTMENT PORTFOLIO AND CAPITAL** 

CAF Bank’s liquidity position remains strong. As at 30 April 2025, 42.4% of deposits were held in unencumbered cash, almost all deposited with the Bank of England. In addition, CAF Bank holds a long-term investment portfolio that consists of high-quality bonds, primarily AAA-rated, equating (unencumbered) to a further 47.1% of deposits. This portfolio is held to maturity and is measured at amortised cost. 

Historical rises in bond market interest rates following the Covid-19 pandemic resulted in an unrealised markto-market loss on the investment portfolio. Given that bond positions are held to maturity, this mark-to-market loss remains hypothetical and would only be realised if CAF Bank sold the bonds. At 30 April 2025, the unrealised mark-to-market loss was £7.5 million, down by £15.9 million from £23.4 million at 30 April 2024. 

In August 2023, CAF Bank issued £15 million of subordinated debt to CAF. Given continued positive financial performance, in April 2024, CAF Bank repaid £10 million of the subordinated debt, and the remaining £5 million is expected to be repaid to CAF in the 2025/26 financial year. 

## **UNRESTRICTED FUNDS** 

At 30 April 2025, group unrestricted funds stood at £115.2 million (2024: £98.5 million), an increase of £16.7 million (2024: £14.4 million). 

Total income increased to £113.2 million (2024: £106.1 million). The Bank of England base rate started the year at 5.25%, falling to 4.50% by the end of the financial year but revenue has remained reasonably consistent with last year. CAF Bank’s net interest income for 2024/25 was £45.5 million (2024: £44.8 million). Investment income, including interest receivable, grew marginally to £30.0 million (2024: £29.3 million). 

For many years, CAF and the group were impacted by low interest rates. Although now falling away from their peak of 5.25%, rates have remained higher for longer than anticipated. This has afforded us additional income enabling us to mitigate the effects of inflationary increases on our costs and to pursue, with greater confidence, our plans to make sure our operations in the UK and North America are in good shape for the future. 

In addition to the costs of the further scaling up of activity and the impact of inflation, total expenditure of £94.0 million (2024: £91.4 million) also includes costs for the initial steps of our One CAF Strategic Plan. This is in addition to costs associated with CAF Bank’s digital modernisation programme delivering CAF Bank’s biggest-ever transformation in June 2025. 

Transfers from restricted funds during the year were £2.3 million (2024: £3.2 million). These include transfers from funds for which the original donor or legator had not provided, including upon their death, or has ceased to provide suggestions for the onward distribution of funds. These and other funds transferred from restricted funds are applied for the general charitable purposes of CAF. 

In June 2024, CAF injected a contribution of £0.8m into its defined benefit pension scheme. The scheme was established in 2015 solely to receive a transfer from a multi-employer plan of which CAF had been a participating employer and it has been closed to new employees and further benefit accrual from its establishment. After receiving the necessary advice and following receipt of a quote that was considered affordable, the trustee of the scheme entered into a buyin policy with an insurer in June 2024. The policy covers all remaining uninsured liabilities of the scheme. This transaction was facilitated by the contribution paid to the scheme by CAF. 

The charity recorded a net movement in unrestricted funds of £4.5 million, increasing from £66.1m as at 30 April 2024 to £70.6m at the balance sheet date, after recognising £4.6 million (2024: £0.6 million) of legacy income. These funds will support CAF’s future growth and transformation plans. 

## **RESERVES AND CAPITAL POLICY** 

CAF’s policy is to maintain across the group, but not exceed, an appropriate level of reserves and capital to support the activities of the group, considering the risks to which the group is exposed, existing and projected future levels of income and expenditure, and the capital requirements of its regulated subsidiaries. 

CAF’s reserves comprise unrestricted funds. The policy and determination of the required level of reserves are set in accordance with Charity Commission guidelines and are reviewed at least annually by Trustees. 

In considering its Reserves and Capital Policy, CAF also includes debt capital, which is amortised over a 10-year period prior to redemption or refinancing. Debt so regarded as capital is capped at 15% of CAF’s unrestricted funds. 

In determining the appropriate level of reserves and capital, Trustees consider the risks inherent in our financially based activities, including credit risk, liquidity risk and interest rate risk, along with other risks to which CAF and the group are exposed. They also consider future capital requirements and changes in our operating environment, including regulatory changes, which may also impact the level of retained reserves or the levels of reserves we are required to maintain in the future. 

Our objective is to remain strong, maintain good control of our costs and take mitigating action where it is possible, so we can offer the maximum support to the charities and donors we serve. We, therefore, continue to take a prudent approach to the levels of capital and reserves maintained. 

Although the recent higher interest rates have been beneficial for the group because of the significant level of liquid assets held, the Trustees are mindful of factors that may negatively affect the group in the future. In the current context of the UK economy, a further rapid significant decline in short-term interest rates is not currently anticipated. However, if it were to arise, it would have a negative impact on the group in the medium- to longer-term once deposit rates, which have already been locked in for shorter periods, have matured. 

Past economic crises experienced since 2008, however, provide evidence that individual donors who chose to give via CAF and the group are resilient and giving remains broadly protected from economic changes. Therefore, the Trustees and respective boards and committees of CAF and its subsidiaries continue to closely monitor these matters and to work with their respective Executive Committees to identify actions to mitigate the impact should such pressures arise. 

Group and charity unrestricted funds, which represent our reserves, stood at £115.2 million (2024: £98.5 million) and £70.6 million (2024: £66.1 million) respectively. This level of reserves at 30 April 2025 is considered to be sufficient to support the ongoing activities and development of the group and the charity. 

## **CAF INVESTMENT POLICIES AND PERFORMANCE** 

## **Overview and governance** 

CAF adopts investment policies appropriate to the nature of the funds for which the investments are held. The policies set out CAF’s risk appetite for investments including liquidity, credit, large exposures, concentration and interest rate risks. Investment policies are approved by CAF’s Trustees and the boards of its subsidiaries. They are monitored by the Investment and Finance Committee (IFC). 

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**08. FINANCIAL REVIEW** 

## **Policies** 

## **CAF UNRESTRICTED FUNDS** 

Other than investments in CAF’s subsidiaries, the Charity’s unrestricted funds are primarily invested in cash deposits. CAF assesses its liquidity reserves requirements and places deposits with a range of counterparties within credit, liquidity, interest rate and large exposure risk appetites. CAF may also invest unrestricted funds in gilts, supranational and investment grade bonds. CAF’s policy is to hold investments to maturity. 

## **CAF CHARITABLE TRUSTS RESTRICTED FUNDS** 

The Investment Policy allows CAF Trust funds to be invested to meet the longer-term donor-advised philanthropic objectives. The investment risk appetite is appropriate for the charitable purposes of the funds. This portfolio consists of investments often held over the longer term, comprising UK and global investment funds, equities, bonds and cash deposits. CAF Trust investments are held and managed directly by CAF or managed by third-party investment managers taking into account donor suggestions aligned with their philanthropic objectives. 

## **OTHER CAF RESTRICTED FUNDS** 

Other restricted funds principally comprise balances held by CAF pending onward donation to other charities. CAF assesses liquidity requirements to ensure funds are available to meet donations and grants requested by donors, and invests funds with a range of counterparties within approved credit, liquidity, interest rate and large exposure risk appetites. CAF invests restricted funds in gilts, supranational and investment grade bonds, and cash deposits / certificates of deposit. CAF’s policy is to hold investments of other restricted funds to maturity. 

## **Measurement and performance** 

Performance of investments held for unrestricted and restricted funds is reported to the CAF Executive and the IFC at least three times a year. Performance is compared to benchmarks for individual funds where these have been agreed. Key Risk Indicators monitor the position of portfolios against agreed risk appetites. 

## **Subsidiaries** 

Investment policies of subsidiaries are determined and managed by their respective boards, taking into consideration regulatory and other requirements. 

The measurement and performance of investments by these subsidiaries are set out in their respective Annual Report and Accounts. 

## **GOING CONCERN** 

In�order�to�assess�the�appropriateness�of�the�going� concern�assumption�basis,�the�Trustees�have�considered� the�group’s�and�the�charity’s�financial�position,�liquidity,� unrestricted�reserves�and�forecasts�for�the�foreseeable� future,�taking�into�account�the�principal�risks�to�which� the�group�and�the�charity�are�exposed,�and�the�ongoing� cost-of-living�crisis�and�geopolitical�uncertainties. 

The�Trustees�and�boards�of�CAF�subsidiaries�have� considered�the�impact�of�severe�but�plausible�stress� scenarios�on�each�group�entity�and�the�effectiveness�� of�management�actions�that�might�be�taken�to�mitigate� the�impact�of�these�stresses.�Trustees�and�boards�of� subsidiaries�have�also�considered�the�circumstances� under�which�operations�of�each�group�entity�would�� be�unable�to�continue. 

Accordingly,�and�after�making�appropriate�enquiries,�� the�Trustees�have�a�reasonable�expectation�that�the�group� and�the�charity�will�be�able�to�continue�in�operation�and� meet�their�liabilities�as�they�fall�due�for�at�least�12�months� from�the�date�of�signing�this�report.�For�this�reason,�they� continue�to�adopt�the�going�concern�basis�in�preparing� the�financial�statements. 


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73 **CAF[  |  ]** ANNUAL REPORT 2024/25 



## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

The Charities Aid Foundation is a registered charity (number 268369) and is governed by a Declaration of Trust dated 2 October 1974 (as amended from time to time). Details of CAF’s Board of Trustees and Executive are listed on page 161 of this Annual Report. 


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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **CAF Trustees** 

## **Board of Trustees** 

||||
|---|---|---|
|The Board of Trustees is the body responsible for<br>the management of CAF and is required to consist of:<br>•No fewer than eight Trustees appointed<br>by resolution of the Trustees.<br>•The Chair of NCVO.<br>The Board meets at least four times a year. All<br>Trustees are non-executive and none of them receive<br>remuneration from CAF. Trustees are appointed to<br>hold ofce for a term of three years. Except for the<br>Chair of NCVO, no Trustee may hold ofce for more<br>than three consecutive terms.<br>All newly appointed Trustees are required to<br>undertake an induction programme delivered by<br>General Counsel and Secretary to the Trustees and the<br>Chief People Ofcer. The induction is in two parts and<br>delivered across two dedicated sessions. The frst of<br>these focuses on governance, the role of the Trustee<br>and their responsibilities. The second focuses on the<br>organisation, how it is designed, the business plan,<br>key themes and performance measures.<br>A Board efectiveness framework is designed around<br>a three-year programme broken down into the themes<br>of key knowledge on the duties related to governance<br>in year one, the assessment of Board skills, knowledge<br>and experience in year two and a formal external<br>review and validation in year three. The Trustees<br>delegate management responsibilities to the Chief<br>Executive, as well as delegate certain functions to<br>the committees described in chapter nine. Each<br>sub-committee has specifc terms of reference and<br>a chair appointed by the Trustees. The Trustees may<br>strengthen the committees by co-opting experts in the<br>relevant feld where appropriate. This delegation is<br>overseen and monitored by the Trustees by requiring<br>regular reporting from the Chief Executive and the<br>subcommittees to the Board of Trustees.|Meeting attendance:<br>1 May 2024 to 30 April 2025<br>Meetings<br>attended<br>Sir James Leigh-Pemberton<br>(Chair)<br>5<br>Sir Ernest Ryder<br>(Vice Chair and Chair, Nominations<br>Remuneration and Culture Committee)<br>4<br>Dr Priya Singh<br>(Chair, NCVO)<br>2<br>Meredith Niles<br>(Chair, CADF)<br>5<br>Michael Ashley<br>(Chair Audit, Risk and Compliance Committee)<br>4<br>Sabine Everaet<br>3<br>Owen Pringle<br>4<br>Robert Vogtle<br>(Non-Executive Director, CAF Bank)<br>(Chair, Investment and Finance Committee<br>(Appointed as Chair January 2025)<br>5<br>David Shalders<br>4<br>Sir Edward Braham<br>(Chair-Elect)<br>(Appointed February 2025)<br>1<br>Janet Pope<br>(Chair, CAF Bank)<br>(Resigned as a Trustee September 2024)<br>1<br>Cyrus Ardalan<br>(Chair, Investment, Finance and Impact<br>Committee / now Investment and Finance<br>Committee, and Chair, CFSL) (Retired as<br>a Trustee November 2024)<br>2<br>Robert Dench<br>(Resigned as Trustee February 2025)<br>1|Maximum<br>5<br>5<br>4<br>5<br>5<br>5<br>5<br>5<br>5<br>2<br>1<br>2<br>2|



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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Trustee Biographies** 

## **SIR JAMES LEIGH-PEMBERTON CVO** 

## Chair 

Sir James is Chair of the Council of the Duchy of Lancaster. Previously, Sir James was Non-Executive Chair of RIT Capital Partners and Chief Executive Officer of Credit Suisse in the UK and held several senior roles within the organisation. Prior to joining Credit Suisse, he was a Director of S.G. Warburg. He is currently Trustee of The Duke of Lancaster’s Foundation and The Alnwick Garden Trust. 

## **RT HON SIR ERNEST RYDER** 

TD, PC, DL, Vice Chair, and Chair, Nomination, Remuneration and Culture Committee 

Sir Ernest became Master of Pembroke College, Oxford, in 2020. He was previously Senior President of Tribunals and Lord Justice of Appeal for the UK. Sir Ernest is a Deputy Lieutenant and was formerly Deputy Chair and Trustee of the Nuffield Foundation and Chair of the Administrative Justice Council. 

## **DR PRIYA SINGH** 

Priya is Chair of the National Council for Voluntary Organisations (NCVO). Priya has a background in general practice, specialising in medical law, ethics and patient safety. Following an executive career with a leading international mutual indemnity organisation for healthcare professionals and organisations, she is Chair of NHS Frimley Integrated Care Board, Chair of Buckinghamshire, Oxfordshire and West Berkshire ICB, and Executive Director of the Society for Assistance of Medical Families. 

## **MEREDITH NILES** 

Chair, CADF 

Meredith worked for Goldman Sachs in New York, Frankfurt and London before becoming Investment Director at the Impetus Trust. Meredith later moved to Marie Curie, where she established a fundraising innovation department and was Executive Director of Fundraising and Engagement until 2021. She is currently Deputy Chair of Plan International UK and serves as a Trustee of Trust for London and The Clothworkers Foundation and as a member of the University of North Carolina’s Board of Visitors. She recently co-edited a book, Change for Better, about harnessing insights from behaviour economics to foster greater giving. 

## **MICHAEL ASHLEY,** 

## Chair, Audit Risk and Compliance Committee 

Mike has held non-executive roles spanning the private, public and third sectors. Until 2023, he chaired the Audit Committee of Barclays PLC and, until December 2024, he chaired the Audit and Risk Committee of the Cabinet Office. His current roles include being a Trustee and Treasurer at The Scout Association and Trustee at StepChange. Mike is also a member of the UK Endorsement Board. Formerly, he was a member of the Charity Commission Board and International Ethics Standards Board for Accountants and Chair of the Government Internal Audit Agency. 

## **SABINE EVERAET** 

Sabine is an Independent Non-Executive Director for ING Belgium and Datatec. She is an Industry Partner and member of the Investment Committee at ORAXYS, a private equity firm specialising in financing growth capital and buy-out activities for companies that develop and market environmentally friendly products or services. Sabine serves as Board Chair on one of the portfolio companies. Prior to this, she spent 26 years at The Coca-Cola Company, where she held various IT and digital roles, most recently as Chief Information Officer for Europe, Middle East and Africa. 

## **OWEN PRINGLE** 

Owen is a partner of Leaders’ Quest, a leadership consultancy that helps organisations to bring strategy, culture and purpose into alignment. Previously, Owen has undertaken senior digital roles at ITN, Sky and Amnesty International, where he was the Global Director of Digital. More recently, he was Chief of Staff to the Secretary General of ActionAid International. 

A passionate advocate of diversity, equity and inclusion, Owen is a strategic adviser to Precious, the digital network for women of colour, and was recognised by the Financial Times in their inaugural list of the 100 most influential BAME leaders in technology. 

## **ROBERT VOGTLE** 

## Chair, Investment and Finance Committee 

Rob is a Non-Executive Director and Chair of the Risk and Audit committee of DB UK Bank and a member of the Institute of Chartered Accountants of Ontario, Canada. Rob worked for international banks: Citibank, Bankers Trust and Deutsche Bank (DB), most recently responsible for the DB CFO Division across the UK, 

EMEA and Asia Pacific countries. Rob was a founding Director of AkarakA Foundation, an international education charity registered in Singapore. Rob is currently Trustee of Community Wholecare Centres, focused on supporting individuals and communities to live a longer healthy life. 

## **DAVID SHALDERS** 

David is Group Chief Operating Officer at Howden Group Services, HGH Finance Limited and Howden Group Holdings Limited. He was Chief Operating Officer at the London Stock Exchange Group and Group Operations and Technology Director at Willis Towers Watson, having led the integration of Willis and Towers Watson. David spent 19 years at The Royal Bank of Scotland in senior operations and technology roles, including COO, Global Banking & Markets, and Group Head of Integration for the ABN Amro acquisition. He previously held roles at UBS, JP Morgan and Accenture. 

## **SIR EDWARD BRAHAM,** 

## Incoming Chair, CAF Trustees 

Sir Edward will succeed Sir James Leigh-Pemberton as Chair of CAF from July 2025. Edward has been Chair of M&G plc since March 2022 and was previously the Senior Partner of Freshfields Bruckhaus Deringer LLP, the global law firm. Edward was a leading international M&A lawyer, with experience in many industries including financial services. His other appointments include Chair of The Lord Mayor’s Appeal Board of Trustees, Chair of the Next Generation Leadership Council, The City UK, a Commissioner for Modern Slavery and Human Trafficking and being a nonexecutive member of the Board of HM Treasury. 

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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **NOMINATIONS, REMUNERATION AND CULTURE COMMITTEE** 

The Nominations, Remuneration and Culture Committee advises the Trustees on the appointment of CAF’s Trustees and of the co-opted members and advisers to the Boards and committees of the CAF group. The committee also makes recommendations regarding the remuneration of members of the Executive Committee of CAF (who form the key management personnel of the group) and other senior members of staff and reviews and agrees the basis for the general pay award to employees. Remuneration and salaries are assessed and reviewed against market rates using third-party data. The committee also reviews the general terms and conditions of employment of our people, including the provision of pension arrangements and the arrangements by which employees may, in confidence, raise concerns about possible improprieties in financial reporting or other matters. The committee meets at least three times a year. 

## **INVESTMENT AND FINANCE COMMITTEE** 

The IFC is chaired by a Trustee. The purpose of the committee is to provide oversight on strategic investments, and the financial performance of CAF. The committee meets with Senior Management at least four times a year and takes into account our strategic plans, operational activities and guidelines from the Charity Commission for England and Wales (the Charity Commission). 

## **AUDIT, RISK AND COMPLIANCE COMMITTEE** 

The Audit, Risk and Compliance Committee consists of Trustees and co-opted members with relevant expertise. The committee meets with Senior Management and external and internal auditors at least four times a year. The committee’s purpose is to review and make recommendations on the following on behalf of the Trustees: 

- Internal control and risk management systems. 

- Effectiveness of internal audit. 

- CAF’s relationship with its external auditors. 

- Procedures for compliance with anti-money laundering legislation and CAF’s other regulatory obligations. 

- Annual report and accounts. 

## **STRATEGY DELIVERY COMMITTEE** 

The Strategy Delivery Committee (SDC) is a temporary Committee of the Board of Trustees of the Charities Aid Foundation (“Board”), constituted as a committee of the Board on 25 July 2024. It supports the Board in the oversight of the Together Building Opportunity Strategy mid-point refresh. The Committee is not anticipated to be a permanent part of governance and will be dissolved, in agreement with the Board. 

## **THE CHARITIES AID FOUNDATION** 

The Charities Aid Foundation group consists of CAF in the UK, CAF America, Southampton Row Trust Limited (the CAF American Donor Fund) and CAF Canada. 

In addition, to deliver its mission and to comply with the regulatory requirements for the provision of banking and investment solutions to charities, CAF in the UK has created and holds social investments in a number of wholly owned subsidiaries, the largest of which is CAF Bank. 

These investments further CAF’s charitable mission, as well as providing a financial return. CAF’s Board of Trustees receives regular updates from the Boards of each entity that is a member of the CAF group. Full details of the CAF group are set out in note 2 to the financial statements. 

The CAF International Network is a global collaboration of trusted partners made up of fully independent, robust organisations that share CAF’s mission to accelerate progress towards a fair and sustainable future for all. Each network partner is an expert in their region, giving CAF a unique philanthropic global reach. Our partners provide local knowledge and thought leadership when it comes to donating into their countries and work with us to seek new ways to grow cross-border giving. 

This Network currently includes organisations in Argentina, Australia, Brazil, Bulgaria, Ghana, India, Indonesia, Kenya, Mexico, Pakistan, South Africa and Turkey, in addition to our CAF operations in the UK, US and Canada. 

## **PUBLIC BENEFIT AND SOCIETY** 

CAF’s purpose (as set out in the 1974 Declaration of Trust) is to hold and distribute funds, “For the benefit of such charitable institutions or such charitable purposes wheresoever in the world the same shall be established or carried on as the Trustees shall think fit”. The work we do to accelerate progress in society towards a fair and sustainable future for all is illustrated throughout this report. 

CAF contributes to public benefit by working with donors to realise giving with greater impact, thus enabling charities to do more of their life-changing work across borders, and to inspire innovation so civil society thrives. 

In the UK, CAF Bank and CFSL help charities to manage their finances and funds so they can continue to support causes and communities that matter to them. 

## **STAKEHOLDER ENGAGEMENT** 

We recognise and promote the importance of strong relationships with our stakeholders across all our activities, and we are committed to productive, long-term relationships. Throughout this report, we have described how we engage with donors, charities, government and colleagues in the sector, and our employees. Within this section, we include examples of our engagement with two other stakeholder groups. 

## **SUPPLIERS** 

We recognise that our suppliers are crucial to our success and we understand the importance of maintaining strong lines of communication. Many perform critical outsourced services and are subject to regular formal review. We engage with suppliers regularly throughout the year and feedback is continually communicated and monitored. 

## **REGULATORS** 

It is within our culture of fairness and transparency to promote high standards of conduct within CAF and with all external parties. In particular, in our role, holding donor funds and customer deposits, their safekeeping and adherence to all relevant aspects of regulation is key to us. 

We maintain close awareness of this through engagement with regulators. This engagement is supported by interactions with industry bodies, specialist advisers, regulatory seminars, online forums and round-table events. This has allowed us to remain informed on increasing regulatory requirements and to ensure we operate to the standard required. 

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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **CONFLICTS OF INTEREST AND INDEPENDENCE** 

CAF takes conflicts of interest seriously and has robust policies in place to address them. The purpose is to identify, record, prevent and manage conflicts of interest. It ensures that CAF Trustees and employees avoid situations where their interests conflict with those of CAF or its customers, whether financial or non-financial. 

Any conflicts of interest are declared at the beginning of each Trustee, committee, or subsidiary board meeting. There is an annual renewal of policies, and a review is undertaken by Trustees and the Executive to ensure the registers are kept up to date. The Compliance team and the General Council and Executive Director of Governance review and monitor all declarations so that they can be appropriately managed. 

In addition to conflicts of interest, CAF also maintains a Gifts and Hospitality Standard and Register. This ensures that any gifts received or offered are transparently recorded, and employees are vigilant about avoiding any influence on business decisions. CAF maintains independence while complying with relevant regulations. 

## **FUNDRAISING** 

There have been no UK fundraising activities undertaken in the current or preceding year. Charities can use our platform, CAF Donate, to raise funds online and process their donations. Our resource hub also offers guidance to the charity sector on fundraising strategies. 

## **CHARITY GOVERNANCE CODE** 

In alignment with the Charity Governance Code for large charities, CAF conducted an internal gap analysis in 2020, implementing key recommendations. These included appointing a Vice Chair and introducing a formalised periodic review of the Board’s performance. Both measures have been successfully implemented. In 2023, and in line with the agreed board effectiveness assessment cycle, the Nominations, Remuneration and Culture Committee led CAF’s internal board skills and experience assessment, complemented by an external board effectiveness evaluation completed between December 2023 and March this year. This practice aligns with the Code’s recommendation that large charities assess their board’s performance annually and undergo external evaluations every three years. 

The internal review, conducted against the Code’s principles of integrity, equality, diversity and inclusion, was finalised in 2023. The Board believes that CAF’s governance aligns well with the Code. Particular attention remains on areas highlighted by the review. Notably, the Board has strengthened the induction process for new Trustees, enhancing onboarding documents and initial meetings. Additionally, efforts continue to improve Trustee annual reviews and skills audits, ensuring optimal use of Trustee skill sets and informed decisions on diverse Trustee appointments. The Nominations, Remuneration and Culture Committee will be conducting a further ‘one year on’ review in 2025 to track and monitor progress of the actions from the findings of last year’s board effectiveness assessment In accordance with the Code, the Board will maintain annual internal effectiveness reviews, including evaluating the Chief Executive’s performance. The next external review is scheduled for 2027, reinforcing CAF’s commitment to high standards of governance. 

## **NOMINEE AND CUSTODIANS** 

The title of property belonging to the charity and its subsidiaries is held as custodian by a range of regulated custodians or by CAF Nominees Limited as nominee for CAF. The directors of CAF Nominees Limited are the Trustees of CAF together with the Group Chief Executive Officer and Group Chief Financial Officer. CAF Nominees Limited holds no assets or liabilities of its own and acts solely as a nominee for CAF, holding the legal title but not the beneficial interest of certain property owned by CAF. The primary custodians responsible for holding investments are Winterflood Securities Limited and HSBC Bank plc. 

## **RISK MANAGEMENT** 

Risk is overseen by CAF Trustees, CAF Bank Non-Executive Directors, Executive Boards and Senior Management, supported by a dynamic and developing culture of awareness, understanding and practical application of risk management by all employees, wherever they are located in the world. 

## **Risk Management Framework** 

The group operates risk management frameworks that provide oversight and accountability for managing risk across all risk types and at all levels of the group. The frameworks support prudent risk management and decision making, aligned to our objectives and are designed to ensure risk is managed within clearly defined parameters. The control environment aligns to the risk management frameworks and includes a related set of policies, standards, procedures and controls that supports responsible decision making, within the risk appetite of the group, as approved by the Trustees and supported through Executive Boards. These include the CAF Group Executive Committee, CAF Bank Board, CAF America Board, CAF Canada Board, CAF American Donor Fund (CADF) Board and CAF Financial Solutions Limited (CFSL) Board. 

Our Trustee and Subsidiary Boards have dedicated supporting risk committees, including the CAF Audit, Risk and Compliance Committee, CAF Bank Executive Risk Committee, the CAF America Finance, Audit and Risk Committee and CFSL Executive Risk Committee. CAF has recently established the Foundation Executive Risk Committee to support risk governance and oversight for the charity activities in the UK, US and Canada. The committee is aligned to the principal risks set out in the Foundation Risk Management Framework which, in turn, are aligned to Charity Commission risk guidance, with Executive sponsorship of each principal risk. 

The risk management frameworks operate using a three lines of defence model, separating risk ownership from risk oversight and assurance, with governance provided by formal committees. Further information on the CAF Bank Risk Management Framework can be found in the CAF Bank annual report and is aligned with Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) requirements. 

Developments in the charity sector have seen increased media, public and regulator interest in the operation of charities. The Trustees and Senior Management remain focused on those risks that could adversely affect our reputation and on ensuring that all activities are carried out in a respectful, open and appropriate manner. 

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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **PRINCIPAL RISKS AND THEIR MITIGATION** 

## **NON-FINANCIAL RISKS** 


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- Operational •  Economic crime 


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## **FINANCIAL RISKS** 

- Capital 


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- Liquidity and funding 

- Market and interest rate 

## **NON-FINANCIAL RISKS** 

## Risk 

## Strategy and mission (continued) 

charitable giving more generally. We recognise the growth in competition, with more digitally enabled, self-service solutions and we have identified the steps needed to retain and increase our market share. 

## Mitigation 

## Strategy and mission 

A detailed approach is taken to budget-setting and the development of financial plans, and these are reviewed and approved by the Trustees and the relevant Boards. Regular detailed financial monitoring is carried out and actions are taken to mitigate against any budget pressures, including effective cost management measures. 

Our planning processes include the comparison of projected reserves against the level of reserves required to support our ongoing operations and planned strategic growth. 

We continue to assess and monitor risks associated with evolving legislation as it impacts charitable work. 

## **NON-FINANCIAL RISKS** 

## Risk 

## Strategy and mission 

CAF’s objective is to deliver on its Together Building Opportunity Strategy for the future, as supported by the One CAF 2025-2028 Strategic Plan, while ensuring CAF fulfils its obligation and great potential to grow the group’s impact sustainably, manage costs and provide a positive customer experience. Contained within this sub-section are the main risks to this objective. 

Strategic risks are those associated with CAF’s ability to deliver its strategic plan and key strategic investments and can include decisions taken concerning the group’s ability to meet those objectives. This can include decisions taken in relation to developing products and services, changes in the technological environment and availability of resources and sources of finance to support strategic growth. Our strategy and mission risk recognises the impact of risks that are detailed in other risk areas, for example, changes in our operating environment and external challenges, such as a reduction in UK 

## Mitigation 

## Strategy and mission 

CAF has embarked on a three-yearly cycle of strategic planning, with the current period covering 2025 to 2028 (as per the One CAF Strategic Plan). This process brings together — in one place — strategies and plans for different parts of the group to support successful implementation. 

Our strategic planning includes the modelling of a range of potential future scenarios in respect of changes in the group’s operating environment. Through this, we identify opportunities to further our strategic goals or for the mitigation of any negative impact arising from changes in the operating environment and the external environment more generally. 

We have identified the proactive steps needed to not only retain but also expand our market share within the current three-year plan. We plan to improve the efficiency of our platform through digitisation, modernisation of our operations and creating economies of scale across the UK and North America. 

## Governance 

Governance risk is the risk that CAF has inappropriate governance arrangements in place (including lack of direction, strategy and forward planning) and/or that Trustees and other Senior Management lack the relevant skills or commitment. It includes ensuring committees receive accurate, timely and relevant information. 

## Governance 

CAF Trustees, CAF Bank Non-Executive Directors, Executive Boards and other Senior Management are made up of accomplished leaders drawn from financial services, the third sector, the civil service, higher education and multi-national corporations. 

Their expert scrutiny and strategic direction inform everything we do, including ensuring our compliance and reporting protocols are fit for purpose and that our people feel empowered to raise any concerns about internal practice. They set robust, transparent governance that is upheld throughout the organisation. 

Our governance structures have been subject to a robust review. Our elected internal Employee Council constructively represents the views of our workforce, offering valuable support to fellow employees and insights to senior leadership. 

Workforce training is constantly reviewed to ensure everyone at CAF is keenly aware of their own responsibilities to the organisation, and to the donors and charities we engage with. CAF provides training and development opportunities to ensure everyone who chooses to work with us can grow their careers. 

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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **NON-FINANCIAL RISKS** 

## Risk 

## Legal and regulatory compliance 

CAF’s objective is to work with all our regulators in an open and co-operative way and to deliver on our commitments. 

Legal and regulatory risk is defined as the risks associated with a failure to comply with relevant legal and regulatory requirements and can lead to loss of trust, reputational damage, regulatory censure, increased costs and financial penalties. The group aims to comply appropriately with all relevant legal and regulatory requirements and expectations, and monitors for regulatory change, to minimise these risks. 

CAF and CADF are regulated by the Charity Commission for England and Wales and are required to comply with relevant HM Revenue & Customs tax legislation. CAF and CADF are responsible for ensuring that the charitable funds they receive, administer and distribute are managed in compliance with charity law and the tax legislation relevant to charitable giving and expenditure. 

CAF is registered with, and supervised by, the FCA for anti-money laundering purposes. 

CAF Bank is authorised by the PRA and regulated by the FCA and PRA. 

CFSL is authorised and regulated by the FCA. 

CAF America is regulated by the US Internal Revenue Service and must also comply with state regulations for registered charities and data privacy protections. 

CAF Canada (a subsidiary of CAF America) is regulated by the Canada Revenue Agency and must comply with provincial regulations in the provinces where it is registered. 

## Mitigation 

## Governance (continued) 

We have a detailed Whistleblowing Policy to ensure employees at all levels of our organisation have both the information and the means to raise any concerns. 

## Legal and regulatory compliance 

Compliance commences at Board level for each group entity. The general tone and expectations are cascaded down through the Executive and Senior Management teams to all areas of operation and are subject to independent oversight. 

Regular reporting to our group Audit, Risk and Compliance Committee (ARCC), CAF Bank Audit Committee, CAF Bank Board Risk and Compliance Committee (BRCC) and CAF America Finance, Audit and Risk Committee (FARC) includes risks arising out of our charitable activity, operations, such as risk, compliance and economic-crime-related matters, and internal mitigating controls. The committees review and monitor the adequacy of internal controls and report to the Board of Trustees and their respective Boards on significant risks, any identified weaknesses in controls and progress of actions for addressing any such identified weaknesses. 

Data protection and information governance policies are in place and are reviewed to ensure our internal processes are robust and comply with relevant legislative, regulatory or contractual requirements, including the UK General Data Protection Regulation and Data Protection Act. Data-protection training is compulsory for all employees and is designed to ensure awareness of our duty to protect data and support implementation of our internal policies and procedures on data protection and information governance. 

The group is committed to ensuring that the appropriate resource is made available to adhere to regulatory requirements. CAF Bank maintain a close and open working relationship with both the FCA and the PRA to ensure they deliver on their regulatory 

## **NON-FINANCIAL RISKS** 

## Risk 

## Legal and regulatory compliance (continued) 

Where the CAF group makes cross-border donations to charities, the local regulations of the receiving country are considered. 

## Operational 

Operational risk is the risk of loss to CAF that results from inadequate or failed internal processes, people and systems (including technology breaches), or from external events. 

CAF group members adhere to UK, US, EU and UN financial sanctions obligations, including those defined by the UK Government Office of Financial Sanctions Implementation (OFSI) and the Office of Foreign Assets Control (OFAC) of the US Department of the Treasury. CAF group entities in the UK (CAF, CAF Bank, CFSL and CADF) are each registered as Data Controllers with the Information Commissioner’s Office (ICO). 

## Mitigation 

## Legal and regulatory compliance (continued) 

commitments. CAF Bank’s Risk Management Framework is integral to ensuring it effectively identifies, manages and monitors its risks. CAF America, CAF Canada and CADF maintain protocols for making donations to charities that are regularly reviewed to ensure compliance with legal and regulatory requirements. 

The CAF America Finance Team is responsible for ensuring appropriate filings are completed with the US Internal Revenue Service, Canada Revenue Agency, and each state (US) or province (Canada) as necessary. For US tax purposes, CADF is treated as a disregarded entity and its activity is reported alongside CAF America. Quarterly compliance reports ensure that these regulatory filings are documented and submitted on time. 

## Operational 

The group continues to evolve its systems and controls on a proactive basis, considering risk, appetite and tolerance, so that we effectively manage and mitigate the likelihood of failure associated with operational risks. Policies, procedures and controls are in place and are continually developed to govern our operational risks. Controls are reviewed for effectiveness on a regular basis. 

CAF Bank’s operational resilience activities protect it against internal and external events that can disrupt service to its customers. In accordance with PRA, FCA and Bank of England rules, CAF Bank has established important business services, defined set impact tolerances for the maximum tolerable level of disruption and performed testing of its ability to remain within impact tolerances during a severe but plausible disruption. 

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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **NON-FINANCIAL RISKS** 

## Risk 

## Mitigation 

## Operational (continued) 

We continue to monitor the effectiveness of our cyberrelated resilience arrangements, including to layer up security measures and to build capacity informed by our operating model and related activity. We regularly test and monitor controls to ensure they are operating effectively and undertake industry benchmarking to ensure our arrangements are fit for purpose. 

A key part of these controls is awareness throughout the organisation of how cyber-attacks occur and the defences we have in place to counteract these. All employees complete training that supports awareness of our duty to protect our systems and the data they hold. CAF America and CAF Canada IT systems are supported by an external managed service provider to ensure adequate protections are in place to address potential cyberattacks. CAF’s cyber resilience and data protection arrangements are overseen by the CAF Information Security Committee (ISC) that has CAF Executive membership. 

Our people are the key to our success and we invest significantly in learning and development. We carry out surveys of our employees and we develop and implement action plans to address any learning. We provide a number of tools to support our employees focused on psychological, physical and financial wellbeing. 

We carry out comprehensive reviews of our resilience and business continuity arrangements and test and exercise our response plans. Our standard operating model includes hybrid working arrangements, which support our operational resilience and commitment in making CAF a great place to work. 

Operational risk presented by third-party suppliers is addressed by our procurement and supplier management processes that ensure a robust framework for engaging third parties, including a thorough risk assessment and regular service reviews. 

## **NON-FINANCIAL RISKS** 

## Risk 

## Economic Crime 

There is a risk of both CAF and its customers being a target of economic crime that may lead to reputational damage, financial loss and/or regulatory censure. Economic crime events include money laundering, terrorist financing, proliferation financing, fraud, bribery, corruption, tax evasion facilitation and sanctions breaches. 

## External including environmental and reputational 

External risks are the result of external factors, events or perceptions that impact CAF and include the risks associated with changes to government policy, or to other relevant legislation and regulation, on CAF’s operations, finances or strategic direction. They include risks resulting from external environmental changes including those needed to achieve net zero 

There is a desire to develop and demonstrate good practice, in support for third sector decarbonisation and recognition that this begins by demonstrating practical action. 

CAF’s brand and reputation are critical in our endeavours to attract and retain clients and stakeholders, in support of our mission. CAF’s objective is to enhance our standing with stakeholders, underpinned by a consistent application of the rules that govern the use of our products, services and brand. We understand the importance of having clear and consistent positions on the issues facing the charitable sector, individual and corporate donors and the Government. 

## Mitigation 

## Economic Crime 

The CAF Economic Crime Policy sets out our requirements relating to the management and mitigation of economic-crime-related risks. The associated standards, guidance and procedures are designed to support CAF’s adherence with the obligations and requirements, as applicable, determined by UK, US and Canadian legislation, regulations and industry best-practice guidelines for both the charity and financial services sectors. They also reflect our commitment and intent to deter, detect and disrupt financial crime. 

The group’s systems and controls are designed to combat economic crime and group-wide transformation plans include an agenda for enhancing ongoing targeting of economic-crime-related risks, aligned with our legal, regulatory and social responsibilities. 

## External including environmental and reputational 

We use our expertise in philanthropy and charitable giving to amplify the charity sector’s voice and needs, working with government, policy makers and egulators to bring about change. 

We monitor the external environment for early signs of potential change so that we can create robust and futureoriented strategies and, where necessary, increase operational preparedness and organisational agility. 

We are clear in our commitments to the environment and society and are making progress, but we also recognise we are at the beginning of our journey and there is more for us to do. We have recently added a climate change risk category into all risk management frameworks as a starting point to develop the more detailed risks associated with CAF’s climate strategy. 

We take active steps to manage and protect our brand. This work includes the monitoring of social media sentiment, the tracking and reporting of media mentions and the analysis of customer feedback. We use our written policies and procedures to ensure 

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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **NON-FINANCIAL RISKS** 

## Risk 

## External including environmental and reputational (continued) 

The risks to the group of reputational damage include a reduction in donations to serve the sector, as well as increased operating costs and loss of market position and influence. Reputational risk arises from (and is considered within) the other risks categories in this report. 

## Mitigation 

## External including environmental and reputational (continued) 

that customer feedback and complaints are managed in line with best practice and applicable regulation. CAF conducts risk-based due diligence on donors and charity recipients as part of our systems and controls to ensure effective management of economic-crime risks, including considering actual or potential reputational risks that may arise. 

We have recently formalised our Reputational Risk Framework to set out a systematic approach to identifying, assessing and mitigating reputational risk across CAF. We also maintain a Crisis Communications plan to address any negative reputational concerns. 

Our People team supports managers to understand and act upon risk outcomes in support of good employee relations. Through regular training and ongoing risk and compliance oversight, we ensure that our people are equipped to support outcomes to protect our reputation. 

CAF undertakes risk-based due diligence on our network of locally led independent organisations, including ensuring relevant agreements are in place in support of expected standards. We aim for each member of the network to maintain the highest standards of regulatory compliance in their own jurisdiction. 

## **FINANCIAL RISKS** 

Through such products and services as CAF’s Charity Account, Company Account, and Charitable Trust, and CAF’s social investment programme of grants and loans in the UK and through Donor Advised Funds in the US and Canada, the group’s activities include the receipt, investment and onward distribution of charitable funds. Activities also include banking services, such as deposit taking and lending provided by CAF Bank. Consequently, the group has a corresponding 

## Risk 

## Capital Risk 

CAF defines capital risk as the risk that the group (or its entities) does not have the amount and/or quality of reserves or capital needed to meet the requirement of the relevant Reserves and Capital Policy or the minimum regulatory requirements, or to support planned strategic growth. 

exposure to the associated financial risks, which can be impacted by external factors, such as inflation and geopolitical uncertainties. 

Details of the financial instruments held by CAF Bank are set out in note 35 to the financial statements, together with descriptions of the management of each category of financial risk. 

## Mitigation 

## Capital Risk 

Relevant policies are reviewed and approved by the appropriate CAF Committee. Required levels are supported by maintaining capital in line with policy. Our planning processes include a comparison of projected capital and reserves against the minimum level required to support our operations and planned growth and include assessing the impact of a range of stresses on our reserves and capital position. 

For CAF Bank, capital risk is measured, monitored and reported daily against limits approved by the CAF Bank Board within CAF Bank’s Capital Policy and monitored at CAF Bank’s Asset and Liability Committee (ALCo) and Executive Risk Committee. CAF Bank undertakes regular stress testing of its capital adequacy. 

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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **FINANCIAL RISKS** 

## Risk 

## Credit Risk 

Credit risk is the risk of financial loss arising from a borrower or counterparty failing to meet their financial obligations to repay the group in accordance with agreed terms. Credit risk arises primarily from investing funds with treasury counterparties and lending to charities. 

## Mitigation 

## Credit Risk 

## **Treasury assets** 

Treasury policies are reviewed and approved by the CAF IFC and ARCC, which approve criteria including credit rating and counterparty lending limits. Subject to minimum credit ratings, maximum terms, and maximum counterparty limits, funds may be invested in the following: 

- UK Gilts and Multilateral Development Banks. 

- Other single sovereign-backed Sterling denominated bonds. 

- Financial and non-financial fixed and floating rate corporate bonds and covered bonds. 

- Bank deposits, certificates of deposit and other marketable securities. 

For CAF Bank, Treasury counterparties are reviewed and approved by ALCo in accordance with policies and criteria approved by the CAF Bank Board. The Bank sets criteria that include credit rating, counterparty lending limits and country exposure limits. The Bank uses the Standardised Approach to assess capital required for credit risk, with risk weightings based on the lower of the two highest of Fitch, S&P and Moody’s ratings in accordance with the credit quality assessment scale. 

CAF continues to carefully monitor and consider risks associated with the macro-economic environment. 

## Financial investments held for Trust funds 

CAF’s Charitable Trusts, CAF America Donor Advised Funds, CADF Trusts and CAF Canada Donor Advised Funds (collectively ‘Trust funds’) are invested in accordance with policies approved by the CAF IFC, on behalf of CAF and CADF Trustees, and by the Boards of CAF America and CAF Canada. Donors typically suggest that a proportion of funds donated are held. 

## **FINANCIAL RISKS** 

Risk 

## Mitigation 

Financial investments held for Trust funds (continued) 

in cash to meet short-term giving expectations and invest funds to meet medium- to long-term philanthropic objectives. 

Lending and programme-related investments through CAF Bank and social investment, part of the Impact Accelerator, are the two principal streams of loans to charities and social purpose organisations. 

CAF Bank has a system of limits and controls in place to manage credit risk on its loan portfolio. Loan applications are reviewed by a credit assessment team and presented for approval to the Sanctions Committee, a sub-committee of the CAF Bank Credit Risk Committee, in accordance with policies and criteria approved by the CAF Bank Board. CAF Bank lending is secured on property and subject to limits on loan to value ratios. CAF Bank’s lending policies include maximum exposure values and limits to manage concentration risk by sector. Exposure to geographical risk is monitored. CAF Bank’s loans, overdrafts and BACS facilities are subject to regular monitoring of loan performance and individual annual review. Administration of the loan book is outsourced to a third party, which provides regular management information on a loan-by-loan and aggregated basis. 

Most of CAF’s social investments, through the Venturesome Impact Fund, are unsecured loans. In some circumstances, we will offer blended finance packages (part loan, part grant), which can help smaller organisations facing additional pressures. CAF’s Impact Committee meets regularly to review and approve all social investments that are subject to due diligence. Impact Committee members include members of the CAF Executive and external specialists. All social investment activities are subject to regular monitoring of performance. Provisions are assessed for evidence of impairment at both specific and collective level. 

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**09. STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **FINANCIAL RISKS** 

## Risk 

## Market and interest rate risk 

Market and interest rate risk is the risk from adverse movements in external markets, for example, interest rate movements and changes in investment values that will reduce income or the value of assets. This includes interest rate risk in CAF Bank’s banking book (IRRBB) that is the risk arising from a mismatch between the duration of assets and liabilities. 

The group is exposed to foreign exchange risk arising from holding and transacting in currencies other than sterling, primarily US dollars. This risk may affect the value of income received, the cost of charitable activities, and the value of assets and liabilities when translated into the group’s presentational currency. 

## Mitigation 

## Market and interest rate risk 

Treasury assets (excluding financial investments held for Trust Funds, please see below) 

No entities in the CAF group undertake proprietary trading activities. It is the group’s policy to hold debt investments to maturity and to value at cost, with any premium or discount amortised over the remaining term (the effective interest method). 

The group manages interest rate risk through the purchase of fixed rate investments that provide a degree of hedging against adverse changes in market interest rates. The group’s policy is to hold these investments to redemption at par and the group’s ability to do so is evaluated on a regular basis through the use of stress testing. The impact of any movements on the value of these fixed rate instruments is, therefore, not anticipated to affect the group’s financial results. 

Interest-rate-related market risk in CAF Bank is controlled by measuring mismatches between the repricing behaviour of assets and liabilities. It is managed within Board approved limits. IRRBB is measured weekly and monitoring is carried out by ALCo and BRCC. 

It is the group’s policy to minimise holdings in currencies not required for operational purposes, thereby reducing exposure to foreign exchange volatility. The group does not engage in foreign exchange contracts for speculative purposes. 

## Financial investments held for Trust funds 

Trust funds are invested to fund our donors’ longterm philanthropic goals. The value of investments, alongside any other regular contributions a donor may make, determines the value of overall funds available to make donations. Accordingly, a movement in equity markets or interest rates may affect the value of Trust funds held by the group but does not impact the level of unrestricted funds. 

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**10. STATEMENT OF TRUSTEES’ RESPONSIBILITIES** 

**Statement of Trustees’ responsibilities in respect of the Trustees’ Report and the Financial Statements** 

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. 

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the group and the charity, and of the incoming resources and application of resources of the group and the charity for that period. 

- Select suitable accounting policies and then apply them consistently. 

- Observe the methods and principles in the Charities SORP. 

- Make judgements and estimates that are reasonable and prudent. 

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

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

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

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

The Trustees’ report on pages 3 to 96 was approved by the Board of Trustees on 31 July 2025 and signed on their behalf. 


**Sir James Leigh-Pemberton, CVO** Chair of Trustees 

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**11. INDEPENDENT AUDITORS’ REPORT  |** TO THE TRUSTEES OF CHARITIES AID FOUNDATION 

## **Independent auditors’ report to the Trustees of Charities Aid Foundation** 

## **Report on the audit of the financial statements** 

## **OPINION** 

for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

In our opinion, Charities Aid Foundation’s group financial statements and parent charity financial statements (the “financial statements”): 

- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 30 April 2025 and of the group’s and parent charity’s incoming resources and application of resources and of the group’s and parent charity’s cash flows for the year then ended; 

## **Independence** 

We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and 

## **OUR AUDIT APPROACH** 

## **Overview** 

## **Audit scope** 

- have been prepared in accordance with the requirements of the Charities Act 2011 and Regulation 15 of The Charities (Accounts and Reports) Regulations 2008. 

• As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. Our group audit scope included the full scope audit of the group’s entities which were individually of financial significance to the group being the parent charity, CAF Bank Limited, CAF America, and Southampton Row Trust Limited. The group audit team performed the audit work at these components, with the exception of CAF America where the audit work was performed by a nonPwC network firm, and supplemented through the group team’s performance of additional testing procedures. The scope of our audit and the nature, timing and extent of audit procedures performed were determined by our risk assessment and other qualitative factors (including history of misstatement through fraud and error). 

We have audited the financial statements, included within the Trustees’ Report and Financial Statements (the “Annual Report”), which comprise: the group and charity balance sheets as at 30 April 2025; the group and charity statements of financial activities for the year then ended; the group and charity cash flow statements for the year then ended, and the notes to the financial statements, which include a description of the significant accounting policies. 

## **BASIS FOR OPINION** 

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities 

## **Key audit matter** 

- Recognition of income from donations and legacies (group and parent charity). 

## **Materiality** 

- Overall group materiality: £13.9m (2024: £11.5m) based on 1% of total income. 

- Overall parent charity materiality: £5m (2024: £4m) based on 1% of total income. 

- Performance materiality: £10.4m (2024: £8.6m) (group) and £3.7m (2024: £3.0m) (parent charity). 

## **The scope of our audit** 

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. 

## **Key audit matters** 

Key audit matters are those matters that, in the auditors’ professional judgement, were of most 

## Key Audit Matter 

_Recognition of income from donations and legacies (group and parent charity)_ 

For the year ended 30 April 2025, the group’s reported donations income was £1,198m (2024: £1,037m) and legacy income was £66m (2024: £34m), including £54m (2024: £25m) accrued at the year end. The parent charity’s reported donations income was £392m (2024: £319m) and legacy income was £58m (2024: £31m), including £45m (2024: £24m) accrued at the year end. 

In accordance with the accounting policies set out in “Note 1.4 (a) Donations and legacies” of the financial statements, donations received, including Gift Aid on eligible donations, are recognised once the group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. 

Donations income represents the primary source of income for the group and parent charity, and the volume of transactions is significant. Therefore, this was an area of focus in the context of our work. 

There is a high degree of management judgement involved in the recognition of income from legacies which have been accrued at the year end. These judgements include assessing the entitlement, probability and measurement of the income. 

Accordingly, we consider there to be an increased risk of misstatement due to fraud or error in respect of accrued legacy income. 

significance in the audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 

This is not a complete list of all risks identified by our audit. 

The key audit matter below is consistent with last year. 

## How our audit addressed the key audit matter 

We understood the key controls surrounding donation and legacy income recognition. We evaluated the design and implementation of controls over the recognition of accrued legacy income. 

We obtained an understanding of relevant general IT controls related to the group’s key financial systems, but in view of their maturity, did not seek to place reliance on them. We performed substantive tests to validate the integrity of any reports generated from systems that were used in our audit work. 

In addition we performed the substantive testing described below: 

- Tested on a sample basis donations received during the year to supporting evidence; 

- Tested on a sample basis whether donations were recognised in the correct year; 

- Tested a sample of legacies (with specific focus on the accrued legacy income) and considered management’s judgement as to the timing of legacy recognition and the amount recognised in light of documented evidence and the group’s legacy accounting policy; 

- Performed specific completeness testing, for example around the receipt of third party legacy notifications; 

- Performed cut-off testing with respect to legacies recognised after the year end to test on a sample basis whether income had been recorded in the correct financial year; and 

- Considered the results of the journal testing performed where this affected reported donation and legacy income. 

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**11. INDEPENDENT AUDITORS’ REPORT  |** TO THE TRUSTEES OF CHARITIES AID FOUNDATION 

## **How we tailored the audit scope** 

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking into account the structure of the group and the parent charity, the accounting processes and controls, and the industry in which they operate. 

We determined the scope of the work required based on the nature of activities in each of the components and issued instructions to a non-PwC network firm in respect of audit work required for CAF America. We instructed them to perform full scope audit procedures on our behalf. We interacted regularly with them and also visited CAF America to meet with management and local trustees. Our procedures included reviewing key working papers and discussing and challenging the results of work in higher risk areas of the audit. In addition, the group team performed independent testing over donation income and grant expenditure on a sample basis. We concluded that the audit procedures performed were sufficient for the purposes of issuing our opinion. 

## **The impact of climate risk on our audit** 

As part of our audit we made enquiries of management to understand the extent of the potential impact of climate risk on the group’s and parent charity’s financial statements, and we remained alert when performing our audit procedures for any indicators of the impact of climate risk. Our procedures did not identify any material impact as a result of climate risk on the group’s and parent charity’s financial statements. 

## **Materiality** 

The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole. 

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows: 


**----- Start of picture text -----**<br>
Financial  Financial<br>statements -  statements -<br>group parent charity<br>Overall<br>£13.9m   £5.0m<br>company<br>(2024: £11.5m). (2024: £4m).<br>materiality<br>How we  1% of  1% of<br>determined it total income total income<br>Rationale for  We consider   We consider<br>benchmark   total income to  total income to<br>be an appropriate  be an appropriate<br>applied<br>benchmark as it is  benchmark as it is<br>a key measure of  a key measure of<br>the performance  the performance<br>of the group,  of the parent<br>being a not-for- charity, being<br>profit organisation. a not-for-profit<br>organisation.<br>**----- End of picture text -----**<br>


For each component in the scope of our group audit, we allocated a materiality that is less than our overall group materiality. The range of materiality allocated across components was £0.7m to £10.0m. Certain components were audited to a local statutory audit materiality that was also less than our overall group materiality. 

We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample sizes. Our performance materiality was 75% (2024: 75%) of overall materiality, amounting to £10.4m (2024: £8.6m) for the group financial statements and £3.7m (2024: £3m) for the parent charity financial statements. 

In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriate. 

We agreed with the Audit, Risk and Compliance Committee that we would report to them misstatements identified during our audit above £0.7m (group audit) (2024: £0.6m) and £0.2m (parent charity audit) (2024: £0.2m) as well as misstatements below those amounts that, in our view, warranted reporting for qualitative reasons. 

## **CONCLUSIONS RELATING TO GOING CONCERN** 

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

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. 

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group’s and parent charity’s ability to continue as a going concern. 

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

## **REPORTING ON OTHER INFORMATION** 

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or any form of assurance thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities. 

Based on our work undertaken in the course of the audit, the Charities Act 2011 requires us also to report certain opinions and matters as described below. 

## **Trustees’ Report** 

Under the Charities Act 2011 we are required to report to you if, in our opinion, the information given in the Trustees’ Report is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility. 

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**11. INDEPENDENT AUDITORS’ REPORT  |** TO THE TRUSTEES OF CHARITIES AID FOUNDATION 

## **RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT** 

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

As explained more fully in the Statement of Trustees’ responsibilities in respect of the Trustees’ Report and the Financial Statements, the trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

## **Auditors’ responsibilities for the audit of the financial statements** 

We are eligible to act and have been appointed as auditors under section 151 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 auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. 

Based on our understanding of the group, parent charity, and sector, we identified that the principal risks of noncompliance with laws and regulations related to provisions of the parent charity’s trust deed, the Prudential Regulatory Authority and the Financial Conduct Authority, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Charities Act 2011 and relevant regulations made or having an effect thereunder, including the Charities (Accounts and Reports) Regulations 2008. We evaluated the incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) by the trustees and those responsible for, or involved in, the preparation of the financial statements, and determined that the principal risks were related to posting of inappropriate journal entries and bias in key accounting estimates. The group engagement team shared this risk assessment with the component auditors so that they could include appropriate audit procedures in response to such risks in their work. 

Audit procedures performed by the group engagement team and/or component auditors included: 

•  Enquiring of management and the Audit, Risk and Compliance Committee in relation to known or suspected instances of non-compliance with laws and regulations and fraud; 

•  Assessing matters reported on the group’s whistleblowing helpline and the results of management’s investigation of such matters; 

- Reviewing key correspondence with regulatory authorities; 

- Gaining an understanding of period end controls around the preparation of the financial statements, including controls around posting of journals; 

•  Testing the appropriateness of journal entries using risk based sampling procedures, to identify journals with high risk characteristics; 

- Assessing for bias in key accounting estimates. For example, the measurement of accrued legacy income; and 

- Incorporating unpredictability into the nature, timing and/or extent of our testing. 

## There are inherent limitations in the audit 

procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 

Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample is selected. 

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: **www.frc.org.uk/ auditorsresponsibilities** . This description forms part of our auditors’ report.  In our engagement letter, we also agreed to describe our audit approach, including communicating key audit matters. 

## **Use of this report** 

This report, including the opinions, has been prepared for and only for the charity’s trustees as a body in accordance with section 151 of the Charities Act 2011 and regulations made under section 154 of that Act (Part 4 of the Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. 

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**11. INDEPENDENT AUDITORS’ REPORT  |** TO THE TRUSTEES OF CHARITIES AID FOUNDATION 

## **Other required reporting** 

## **CHARITIES ACT 2011 EXCEPTION REPORTING** 

Under the Charities Act 2011 we are required to report to you if, in our opinion: 

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

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

- the parent charity financial statements are not in agreement with the accounting records. 

We have no exceptions to report arising from this responsibility. 

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 31 July 2025 

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**GROUP STATEMENT OF FINANCIAL ACTIVITIES  |** FOR THE YEAR ENDED 30 APRIL 2025 

**CHARITY STATEMENT OF FINANCIAL ACTIVITIES  |** FOR THE YEAR ENDED 30 APRIL 2025 


**----- Start of picture text -----**<br>
Unrestricted funds Restricted funds Total<br> 2025   2024  2025 2024 2025 2024<br>Notes £000  £000  £000  £000  £000  £000<br>Income<br>Donations  6,269   6,185  1,191,992   1,030,956   1,198,261   1,037,141<br>Legacies  4,600   630  60,912   33,715   65,512   34,345<br>Government grants 4 - - -  233  -  233<br> 10,869   6,815   1,252,904  1,064,904   1,263,773  1,071,719<br>Charitable activities:<br>Fee income  26,806   25,250  - -  26,806   25,250<br>CAF Bank net interest income  45,549   44,773  - -  45,549   44,773<br>Investment income  5  29,962   29,299   24,499   23,782   54,461   53,081<br>Total income 6  113,186   106,137   1,277,403  1,088,686   1,390,589  1,194,823<br>Expenditure<br>Charitable activities:<br>Donations payable to charities  1,702   5,086   1,133,759   1,064,420   1,135,461  1,069,506<br>Other expenditure on charitable activities  92,344   86,277  -  290   92,344   86,567<br>Total expenditure 6  94,046   91,363   1,133,759  1,064,710   1,227,805  1,156,073<br>Net income before net gains/(losses) on<br>investments  19,140   14,774   143,644   23,976   162,784   38,750<br>Net losses on debt securities  (22)  (79) - -  (22)  (79)<br>Net gains on fnancial investments - -  16,411   73,469   16,411   73,469<br>Net gains/(losses) on other investments -  732   (112)  (30)  (112)  702<br>Net income before tax 6  19,118   15,427   159,943   97,415   179,061   112,842<br>Corporation tax 9  (3,522)  (4,542) - -  (3,522)  (4,542)<br>Net income after tax  15,596   10,885   159,943   97,415   175,539   108,300<br>Transfers between funds 26  2,279   3,213   (2,279)  (3,213) - -<br>Net movement in funds before other<br>recognised gains/(losses)  17,875   14,098   157,664   94,202   175,539   108,300<br>Other recognised gains/(losses)<br>Gain/(losses) on foreign exchange  (485)  100 (15,169) 983 (15,654)  1,083<br>Defned beneft pension scheme:<br>Actuarial losses 31  (1,556)  (162) - -  (1,556)  (162)<br>Remeasurement of asset limit 31  848   409  - -  848   409<br>Net movement in funds   16,682   14,445   142,495   95,185   159,177   109,630<br>Reconciliation of funds<br>Total funds brought forward  98,496 84,051   1,848,467   1,753,282   1,946,963  1,837,333<br>Total funds carried forward  26  115,178   98,496   1,990,962  1,848,467   2,106,140  1,946,963<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Unrestricted funds Restricted funds Total<br>2025 2024 2025 2024 2025 2024<br>Notes £000  £000  £000  £000  £000  £000<br>Income<br>Donations  7,235   6,901   385,006   312,302   392,241   319,203<br>Legacies  4,600   630   53,450   30,293   58,050   30,923<br>Government grants 4 - - -  233  -  233<br> 11,835   7,531   438,456   342,828   450,291   350,359<br>Charitable activities:<br>Fee income  17,261   15,117  - -  17,261   15,117<br>Investment income  5  21,449   20,623   19,642   19,345   41,091   39,968<br>Total income 6  50,545   43,271   458,098   362,173   508,643   405,444<br>Expenditure<br>Charitable activities:<br>Donations payable to charities  1,702   5,086   349,273   362,316   350,975   367,402<br>Other expenditure on charitable activities  45,286   44,090  -  290   45,286   44,380<br>Total expenditure 6  46,988   49,176   349,273   362,606   396,261   411,782<br>Net income/(expenditure) before net<br>gains/(losses) on investments  3,557  (5,905)  108,825  (433)  112,382  (6,338)<br>Net losses on debt securities  (22)  (79) - -  (22)  (79)<br>Net gains on fnancial investments - -  17,703   67,024   17,703   67,024<br>Net gains/(losses) on other investments -  732   (112) -  (112)  732<br>Net income/(expenditure) 6  3,535  (5,252)  126,416   66,591   129,951   61,339<br>Transfers between funds 26  1,747   3,213   (1,747)  (3,213)  -   -<br>Net movement in funds before other<br>recognised gains/(losses)  5,282  (2,039)  124,669   63,378   129,951   61,339<br>Other recognised gains/(losses)<br>Gains/(losses) on foreign exchange   (63)  46   (3,635)  (344)  (3,698)  (298)<br>Defned beneft pension scheme:<br>Actuarial losses 31  (1,556)  (162) - -  (1,556)  (162)<br>Remeasurement of asset limit 31  848   409   -   -   848   409<br>Net movement in funds   4,511  (1,746)  121,034   63,034   125,545   61,288<br>Reconciliation of funds<br>Total funds brought forward   66,068   67,814   1,494,789   1,431,755   1,560,857  1,499,569<br>Total funds carried forward  26  70,579   66,068   1,615,823  1,494,789   1,686,402  1,560,857<br>**----- End of picture text -----**<br>


The notes on pages 113 to 160 form an integral part of these financial statements. 

The notes on pages 113 to 160 form an integral part of these financial statements. 

107 **CAF[  |  ]** ANNUAL REPORT 2024/25 

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**GROUP BALANCE SHEET  |** FOR THE YEAR ENDED 30 APRIL 2025 

**CHARITY BALANCE SHEET  |** FOR THE YEAR ENDED 30 APRIL 2025 


**----- Start of picture text -----**<br>
CAF Bank balances<br>Unrestricted funds Restricted funds and donor client  Total<br>balances<br>2025 2024 2025 2024 2025 2024 2025 2024<br>Notes £000  £000  £000  £000  £000  £000  £000  £000<br>Assets<br>Balances at Bank of England  73,159   62,787  - -  537,513   567,739   610,672   630,526<br>Loans and advances to banks<br>On demand and short-term<br>10  52,032   46,506   253,833   301,671   8,800   30,604   314,665   378,781<br>deposits<br>Other 10 - -  266,938   216,245  - -  266,938   216,245<br>Loans and advances to customers 11 -  121   8,670   8,738   219,101   197,702   227,771   206,561<br>Debt securities 12 - -  362,915   325,067   682,783   637,376  1,045,698   962,443<br>Financial investments  13 - -  1,038,321   979,616  - -  1,038,321   979,616<br>Other investments  14  4,829   4,829   2,490   5,393  - -  7,319   10,222<br>Tangible fxed assets 16  3,478   3,701  - - - -  3,478   3,701<br>Intangible fxed assets 17  15,908   10,758  - - - -  15,908   10,758<br>Other debtors 18  1,182   1,928   19,879   12,214  - -  21,061   14,142<br>Prepayments and accrued income 19  16,883   17,136   51,927   25,122   9,134   8,486   77,944   50,744<br>Total assets  167,471  147,766  2,004,973  1,874,066  1,457,331  1,441,907  3,629,775  3,463,739<br>Liabilities<br>CAF Bank depositor balances 20 - - - -  1,450,920  1,419,427  1,450,920  1,419,427<br>CAF Give As You Earn and CAF<br>21  -   -   -   -   3,860   6,207   3,860   6,207<br>Donate balances<br>Due to benefciary charities 22 - -  7,720   17,802  - -  7,720   17,802<br>Other creditors 23  10,951   7,318   6,241   6,316   734   406   17,926   14,040<br>Accruals and deferred income  3,957   4,437   50   1,481   1,817   2,015   5,824   7,933<br>Provision for corporation tax  144   346  - - - -  144   346<br>Repurchase agreement 24 - - - - -  13,852  -  13,852<br>Long-term loans 25  37,241   37,169  - - - -  37,241   37,169<br>Total liabilities  52,293   49,270   14,011   25,599  1,457,331  1,441,907  1,523,635  1,516,776<br>Funds 26 115,178  98,496  1,990,962  1,848,467   -   - 2,106,140  1,946,963<br>Total liabilities and<br>charitable funds  167,471  147,766  2,004,973  1,874,066  1,457,331  1,441,907  3,629,775  3,463,739<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Donor client<br>Registered charity number  Unrestricted funds Restricted funds balances Total<br>268369<br>2025 2024 2025 2024 2025 2024 2025 2024<br>Notes £000  £000  £000  £000  £000  £000  £000  £000<br>Assets<br>Loans and advances to banks<br>On demand and<br>short-term deposits 10  42,740   37,300   93,137   137,569   4,594   6,613   140,471   181,482<br>Other 10 - -  211,926   167,739  - -  211,926   167,739<br>Loans and advances to customers 11 -  121   3,585   3,000  - -  3,585   3,121<br>Debt securities 12 - -  325,383   296,246  - -  325,383   296,246<br>Financial investments 13 - -  928,765   874,535  - -  928,765   874,535<br>Other investments  14  4,829   4,829   2,426   5,325  - -  7,255   10,154<br>Subsidiary undertakings 15  46,700   46,700  - - - -  46,700   46,700<br>Tangible fxed assets 16  3,446   3,660  - - - -  3,446   3,660<br>Other debtors 18  4,346   2,676   18,779   4,591  - -  23,125   7,267<br>Prepayments and accrued income 19  12,224   13,064   43,154   23,909  - -  55,378   36,973<br>Total assets  114,285  108,350   1,627,155  1,512,914   4,594   6,613  1,746,034  1,627,877<br>Liabilities<br>CAF Give As You Earn and CAF<br>21  -   -   -   -   3,860   6,207   3,860   6,207<br>Donate balances<br>Due to benefciary charities 22 - -  5,091   11,809  - -  5,091   11,809<br>Other creditors 23  3,357   2,459   6,241   6,316   734   406   10,332   9,181<br>Accruals and deferred income  3,108   2,654  - - - -  3,108   2,654<br>Long-term loans 25  37,241   37,169  - - - -  37,241   37,169<br>Total liabilities  43,706  42,282   11,332   18,125   4,594   6,613   59,632   67,020<br>Funds 26  70,579  66,068   1,615,823  1,494,789   -   -  1,686,402  1,560,857<br>Total liabilities and charitable funds  114,285  108,350   1,627,155  1,512,914   4,594   6,613  1,746,034  1,627,877<br>**----- End of picture text -----**<br>


The notes on pages 113 to 160 form an integral part of these financial statements. 

Approved by the Trustees and authorised for issue on 31 July 2025 and signed on their behalf by: 

The notes on pages 113 to 160 form an integral part of these financial statements. 

Approved by the Trustees and authorised for issue on 31 July 2025 and signed on their behalf by: 





**Mike Ashley FCA Liz Rylatt FCA** Trustee Group Chief Financial Officer 

**Mike Ashley FCA Liz Rylatt FCA** Trustee Group Chief Financial Officer 

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**GROUP CASH FLOW STATEMENT  |** FOR THE YEAR ENDED 30 APRIL 2025 

**CHARITY CASH FLOW STATEMENT  |** FOR THE YEAR ENDED 30 APRIL 2025 


**----- Start of picture text -----**<br>
2025 2024<br>Notes £000  £000  £000  £000<br>Cash flows from operating activities:<br>Net cash generated from/(used in) operating activities 27  34,033  (150,243)<br>Cash flows from investing activities:<br>Net (increase)/decrease in loans and advances to banks (50,693)  70,931<br>Payments to acquire debt securities  (409,498)  (501,616)<br>Proceeds on redemption and disposal of debt securities  328,841   535,597<br>Payments to acquire fnancial investments  (215,185)  (266,873)<br>Proceeds on disposal of fnancial investments  233,185   239,391<br>Payments to acquire other investments  (175)  (29)<br>Proceeds on disposal of other investments  3,362   3,720<br>Payments to acquire tangible fxed assets -  (853)<br>Payments to acquire intangible fxed assets  (5,150)  (4,425)<br>Decrease in investment portfolio cash<br>and settlements pending  4,394   7,036<br>Proceeds from repurchase agreements -  5,000<br>-<br>Repayment of repurchase agreements  (13,852)<br>Receipts of Trust Funds investment income  24,646   23,392<br>Payment to purchase buy-in of defined<br>benefit pension scheme  (774)  -<br>Net cash (used in)/generated from investing activities (100,899)  111,271<br>Payments of interest on long-term loans (1,450) (1,449)<br>Net cash used in financing activities (1,450) (1,449)<br>Change in cash and cash equivalents in the year (68,316) (40,421)<br>Cash and cash equivalents as at 1 May  1,009,307   1,048,645<br>Change in cash and cash equivalents due to exchange<br>rate movements (15,654)  1,083<br>Cash and cash equivalents as at 30 April   925,337   1,009,307<br>Represented by:<br>Balances at Bank of England repayable on demand 610,672  630,526<br>Loans and advances to banks repayable on demand  314,665   378,781<br> 925,337   1,009,307<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
2025 2024<br>Notes £000  £000  £000  £000<br>Cash flows from operating activities:<br>Net cash generated from/(used in) operating activities 27  20,131  (50,670)<br>Cash flows from investing activities:<br>Net (increase)/decrease in loans and advances to banks (44,187) 96,480<br>Payments to acquire debt securities  (241,984)  (218,683)<br>Proceeds on redemption and disposal of debt securities  213,243   135,490<br>Payments to acquire fnancial investments  (188,582)  (179,329)<br>Proceeds on disposal of fnancial investments  184,397   147,706<br>-<br>Payments to acquire other investments  (175)<br>Proceeds on disposal of other investments  3,362  -<br>Advances of sub-ordinated debt to subsidiary<br>undertakings  -  (15,000)<br>Repayment of sub-ordinated debt from subsidiary<br>undertakings  -   10,500<br>Payments to acquire tangible fxed assets  -  (848)<br>(Increase)/decrease in investment portfolio cash<br>and settlements pending (1,089)  4,028<br>Receipts of Trust Funds investment income  19,795   18,956<br>Payment to purchase buy-in of defined<br>benefit pension scheme  (774)  -<br>Net cash used in investing activities (55,994) (700)<br>Cash flows from financing activities:<br>Payments of interest on long-term loans (1,450) (1,449)<br>Net cash used in financing activities (1,450) (1,449)<br>Change in cash and cash equivalents in the year (37,313) (52,819)<br>Cash and cash equivalents as at 1 May  181,482   234,599<br>Change in cash and cash equivalents<br>due to exchange rate movements  (3,698) (298)<br>Cash and cash equivalents as at 30 April  140,471   181,482<br>**----- End of picture text -----**<br>


The notes on pages 113 to 160 form an integral part of these financial statements. 

The notes on pages 113 to 160 form an integral part of these financial statements. 

111 **CAF[  |  ]** ANNUAL REPORT 2024/25 

112 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **1. ACCOUNTING POLICIES** 

The principal accounting policies and judgements used in the preparation of the financial statements are: 

## **1.1. Basis of preparation** 

These financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS 102’) and the Statement of Recommended Practice: Accounting and Reporting by Charities (Charity SORP (FRS 102)), except for the adoption of a balance sheet format which the Trustees believe more clearly represents the group’s financial assets and liabilities. 

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

Monetary amounts in these financial statements are stated in pounds sterling, which is the functional and presentational currency, and are rounded to the nearest whole £1,000, except where otherwise indicated. 

## **1.2 Going Concern** 

In order to assess the appropriateness of the going concern assumption basis, the Trustees have considered the group’s and the charity’s financial position, liquidity, unrestricted reserves and forecasts for the foreseeable future, taking into account the principal risks to which the group and the charity are exposed, and the ongoing cost-of-living crisis and geopolitical uncertainties. 

The Trustees and boards of CAF subsidiaries have considered the impact of severe but plausible stress scenarios on each group entity and the effectiveness of management actions that might be taken to mitigate the impact of these stress. Trustees and boards of subsidiaries have also considered the circumstances under which operations of each group entity would be unable to continue. 

Accordingly, and after making appropriate enquiries, the Trustees have a reasonable expectation that the group and the charity will be able to continue in operation and meet their liabilities as they fall due for at least 12 months from the date of signing this report. For this reason, they continue to adopt the going concern basis in preparing the financial statements. 

## **1.3 Fund accounting** 

The group holds restricted and unrestricted funds. 

Fund classification is an area of significant judgement and is dealt with in Note 1.18a. 

Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects of the group. Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors. Restricted funds comprise donations to the group that are held pending suggestions for investment or onward donation to charitable organisations. 

Further details of each fund are disclosed in note 26. 

## **1.4 Income recognition** 

Income is recognised once the group has entitlement to the income, it is probable that the income will be received, and the amount can be measured reliably. 

## **(a)  Donations and legacies** 

Donations received, including Gift Aid on eligible donations, are recognised once the group has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. 

In the event that a donation or grant is subject to conditions, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the group, and it is probable that those conditions will be fulfilled. 

Non-cash donations principally comprise share gift donations, which are recognised as donations received at the market value on the date of gift. Proceeds from the sale of non-cash donations are recognised as investing activities in the cash flow statement. 

Legacy donations are recognised on a case-bycase basis normally where there has been a grant of probate or notification has been made by executors that a distribution will be made. In the event that the gift is in the form of an asset other than cash, or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the group. Where legacies have been notified with an estimated value but the criteria for income recognition have not been met, then the legacies are treated as contingent assets and disclosed if material (see note 30). 

Donations processed by the group acting in an agency role are not recognised in the Statement of Financial Activities (SOFA). Any cash held is recognised in the balance sheet as liabilities. Such donations consist of amounts in respect of CAF Give As You Earn and CAF Donate services. 

## **(b)   Government grants** 

Income in respect of government grants is recognised, in accordance with any applicable agreement, over the period to which the grant relates. Any underspends of the grants that are due to be returned are included within creditors. 

## **(c)   Fee income** 

Income in respect of grant administration services provided to grantmakers, which forms part of wider arrangements including the receipt and onward payment of funds to beneficiary charities, is recognised upon delivery of the administration services. Recognition of this income is dependent upon being able to measure reliably: the stage of completion, the costs incurred in delivering the service and the costs to complete the requirements of the service. 

Loan arrangement fees are recognised using the effective interest method over the term of the loan. Non-utilisation fees on undrawn loans are recognised as income in the period they are earned. 

## **(d)  Investment income** 

Investment income consists of interest receivable and dividend income. 

Interest receivable on financial assets is recognised using the effective interest method. 

Dividends are recognised once the dividend has been declared, and notification has been received of the value of the dividend due. Where investments are managed by external investment managers, this is normally upon notification by the investment manager of the dividend income. 

## **1.5 Expenditure recognition** 

Expenditure is recognised as soon as there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. 

Donations payable to charities principally represent donations suggested by donors and are charged to the SOFA when both the group and beneficiary charities are notified in the normal course of business of an unconditional obligation to transfer funds. Amounts to be paid at a future date are included in creditors. 

On occasion the beneficiary charity is formally notified in writing of a donation by the group. This notification gives the recipient a reasonable expectation that they will receive a one-off or multi-year donation. In the case of an unconditional offer this is accrued once the recipient has been notified of the donation. Donations that are subject to the recipient fulfilling performance conditions are recognised as payable when any remaining unfulfilled conditions attached to that award are outside of the control of the group. 

The provision for a multi-year donation is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the group that would permit the group to avoid making the future payment(s), settlement is probable, and the effect of discounting is material. The discount rate used is the average rate of investment yield in the year in which the donation is made. 

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**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **1.6 Allocation of support costs** 

All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. Where support costs cannot be directly attributed to one or more categories, they are apportioned on the basis of employee headcount. No support costs are allocated to restricted funds. 

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. 

Irrecoverable VAT is charged as a cost. 

## **1.7 Operating leases** 

Operating lease rentals are charged to the SOFA on a straight-line basis over the term of the lease. 

## **1.8 Pension costs** 

Details of the group’s pension arrangements are set out in note 31. The following policies are applied to the recognition and measurement of costs and liabilities in respect of the pension plans. 

## **Defined contribution pension plans** 

Pension contributions payable for the year in respect of defined contribution pension plans are recognised as an expense and as a liability, after deducting any amounts already paid. 

## **Defined benefit pension scheme** 

The CAF-specific defined benefit pension scheme (Charities Aid Foundation Pension Scheme) is closed to both new members and benefit accrual. In accordance with the requirements of FRS 102, if CAF’s obligations under the plan exceed the value of the plan’s assets, CAF recognises a ‘net defined benefit liability’. In the event of a winding up of the plan, the trust deed allows CAF to recover any surplus that may exist. Consequently, where the value of the plan’s assets exceeds CAF’s obligation under the plan, CAF recognises a ‘net defined benefit asset’, but only to the extent it is expected that the asset might be recovered by CAF. 

The net defined benefit asset or liability is measured in accordance with the requirements of FRS 102 and is determined by an independent actuary. The net change in the defined benefit asset or liability during the period is recognised in the SOFA. 

## **1.9 Foreign currency** 

Transactions in foreign currencies are translated to Sterling at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to pound sterling at the exchange rate ruling at that date. 

The results of overseas operations are translated at the average annual rate of exchange and their balance sheets at the rates ruling at the balance sheet date. 

Exchange differences arising, including those on the translation of opening net assets of overseas subsidiary undertakings, are taken to the SOFA and presented as part of other recognised gains and losses. 

## **1.10 Taxation** 

Current tax, including UK Corporation Tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. 

Deferred tax is recognised on all timing differences at the reporting date. Unrelieved tax losses are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. 

## **1.11 Tangible fixed assets** 

Tangible fixed assets, other than long-leasehold property, are stated at cost less accumulated depreciation and accumulated impairment losses. 

Long-leasehold property is stated at fair value less any subsequent accumulated depreciation and impairment losses. Gains and losses on revaluation are recognised in the SOFA and accumulated in the revaluation reserve where, for the latter, they exceed cost less depreciation. 

Impairment losses are recognised in accordance with note 1.17. 

Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets. 

Group entities assess at each reporting date whether tangible fixed assets are impaired. 

Depreciation is charged to the SOFA on a straightline basis over the estimated useful lives of each part of an item of tangible fixed assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. The estimated useful lives are as follows: 

||• <br>•|Long-leasehold property<br>Long-leasehold and other|50 years<br>Shorter of the||
|---|---|---|---|---|
|||leasehold improvements|remaining term||
||||of the lease or the||
||||useful economic||
||• <br>•|Furniture and fttings<br>Computer equipment|life of the asset<br>up to 4 years<br>up to 3 years||



Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change in the pattern by which the group expects to consume an asset’s future economic benefits. 

## **1.12 Intangible fixed assets** 

Intangible fixed assets are stated at cost less accumulated amortisation and impairment losses. Amortisation will commence when the assets are substantially ready for their intended use. 

Intangible fixed assets are assessed for impairment at each balance sheet date. 

External spend to suppliers on software and system development in respect of an asset controlled by a group entity is capitalised where the recognition criteria are satisfied. Internal spend on staff and contractors is expensed, except where effort directly relates to system development and the recognition criteria are satisfied. 

Control of an asset is present if the power exists to obtain the future economic benefits flowing from software and to restrict the access of others to those benefits. Where an intangible asset is not recognised for the costs of configuration or customisation of the software, then the costs are recognised as an expense. 

## **1.13 Basic financial instruments** 

## **(a) Loans and advances to banks** 

Loans and advances to banks comprise the group’s cleared and uncleared balances held at clearing banks and deposits with an original maturity of five years or less. These are shown at the lower of cost or estimated realisable value. 

Where a pool of ‘Financial investments’ is managed on a discretionary basis by an investment manager and the portfolio includes cash and cash deposits, those balances are included with the investment balance to reflect that the funds do not form part of day-to-day operational cash flows and balances. 

## **(b) Debt securities** 

Debt securities held to support the group’s operations and generate income to support the group’s charitable objectives are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. 

Certain debt securities are held as part of a portfolio of investments maintained to achieve capital appreciation and to generate income for donor advised funds. Debt securties held for these purposes are classified as ‘Financial investments’ in the balance sheet. They are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition those that can be measured reliably are measured at fair value with changes recognised in the SOFA. Where their fair value cannot be reliably measured, for example they are not publicly traded, the investments are measured at cost less impairment. 

## **(c) Financial investments** 

- Investments in equity instruments, such as ordinary and certain preference shares, are measured initially at fair value, which is normally the transaction price. Transaction costs are excluded if the investments are subsequently measured at fair value through profit or loss. Subsequent to initial recognition investments that can be measured reliably are measured 

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**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

at fair value with changes recognised in the SOFA. Where the fair value of such investments cannot be reliably measured, for example they are not publicly traded, the investments are measured at cost less impairment. 

- **(d) CAF Bank depositor balances** 

   - CAF Bank depositor balances represent the value of deposits by account holders and are recorded as liabilities. 

## **(e) Repurchase agreements** 

When securities are sold subject to a commitment to repurchase them at a predetermined price (‘repos’), they remain on the balance sheet and a liability is recorded in respect of the consideration received. Repos are measured at amortised cost. The difference between the sale and repurchase price is treated as interest and recognised in net interest income over the life of the agreement. 

- **(f) Debtors and creditors** 

Debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid. 

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

- **(g) Interest-bearing loans receivable and payable** 

   - Interest-bearing loans are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing loans are stated at amortised cost using the effective interest method, less any impairment losses. 

- **(h) Concessionary loans receivable and payable** 

   - Concessionary loans may be receivable from other charities as a result of social lending activity undertaken by CAF Venturesome and loans advanced by CAF Charitable Trusts. Such loans are advanced at concessionary (non-market) rates of interest, which may include interest-free loans. These are initially recognised at the amount 

advanced to the borrower and are subsequently measured at the amount advanced less amounts received less any impairment. 

Concessionary loans may be payable in respect of funds advanced to support social lending undertaken by CAF Venturesome. Such loans are advanced at concessionary (non-market) rates and are usually interest-free loans. These are initially recognised at the amount advanced by the lender and are subsequently measured at the amount advanced less any amounts repaid to the lender. 

## **1.15 Investment properties** 

Investment properties which are only acquired upon donation, usually by legacies, to the group are measured initially at probate valuation. Subsequent to initial recognition, investment properties are held at open market value. 

## **1.16 Investments in subsidiaries** 

Investments in subsidiaries which represent ordinary share capital and subordinated debt are carried at cost less impairment. 

## **1.17 Impairment of assets** 

- **(a) Financial assets (including trade** 

   - **and other debtors)** 

Financial assets, including loans, are assessed at each reporting date to determine whether there is objective evidence of impairment. 

Objective evidence of impairment of a loan can include default or delinquency by a borrower, restructuring of a loan or advance on terms the group would otherwise not consider, indications that a borrower or issuer may become insolvent, or a reduction in marketability of the security. 

The group considers evidence for impairment for loans and advances (including on-demand commitments) at both specific and collective level. If there is evidence of impairment leading to an impairment loss for an individual counterparty relationship, then the amount of the loss is determined as the difference between the carrying amount of the loan, including accrued interest, and the estimated recoverable amount. 

The estimated recoverable amount is measured as the present value of expected future cash flows discounted at the loan’s original effective interest rate, including cash flows that may result from foreclosure less costs for obtaining and selling collateral. The carrying amount of the loan is reduced by the use of an allowance account and the amount of the loss is recognised in the SOFA. 

Future cash flows in a group of financial assets that are collectively evaluated for impairment are estimated on the basis of the contractual cash flows of the assets in the group and loss experience for assets with credit risk characteristics similar to those in the group. In addition, the group uses its judgement to estimate the amount of an impairment loss, supported by historical loss experience data for similar assets. The use of such judgements and reasonable estimates is considered by management to be an essential part of the process. 

- **(b) Non-financial assets** 

The carrying amounts of the group’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. 

An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognised in the SOFA. An impairment loss is reversed if and only if the reasons for the impairment have ceased to apply. 

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. 

## **1.18 Critical accounting judgements and significant estimates** 

## **(a) Critical accounting judgements** 

## **Classification of funds** 

The activities of CAF and the other charitable entities in the group (see note 2) include donations received on the understanding they will be held pending the donors’ suggestions for onward donation to third-party charities. These are referred to below as DAFs (Donor Advised Funds) and for CAF itself include CAF Charity Accounts, CAF Company Accounts, and certain CAF Charitable Trusts. 

The conditions of donation under which funds are gifted into DAFs include that the donations are irrevocably gifted outright to the group charitable entity. This is indicative of the DAFs having the form of unrestricted funds, that is funds that may be spent or applied at the discretion of the relevant charity’s trustees to further any of its purposes. However, the principal purpose of this condition of donation, is to provide protection, for instance, in a case where it is not possible for legal or regulatory constraints, to fulfil a donor’s suggestion to make an onward donation to another charity. 

In the ordinary course of activities, there is no expectation that funds held in DAFs will be applied for any purpose other than onward gifting. This expectation is further affirmed by long-term practice by CAF and the other charities in the group. Should DAFs be used for general purposes at the discretion of the relevant charity’s trustees (as unrestricted funds), the charity’s operating model and reputation would be significantly damaged. Consequently, the application of the funds, other than for onward donations, would only ever be contemplated in response to an exceptional circumstance. 

Given the expectation that the funds will be applied for onward donation, the classification as unrestricted funds is not considered appropriate for donations to DAFs. The SORP recognises the inherent complexity of accounting for income from donations and consequently includes the provision that donations should be accounted for and presented in accordance with their substance and not simply their legal form. 

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**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

Consequently, the Trustees of CAF consider that donations received into, and funds held in DAFs by CAF and by other charities in the group are better classified as restricted funds in CAF’s and the group’s financial statements. 

The values of such funds for which this judgement has been exercised in CAF’s and the group financial statements are as follows: 


**----- Start of picture text -----**<br>
 2025   2024<br> £m   £m<br>Charities Aid Foundation  715.8   672.6<br>CAF America   165.6   164.8<br>CAF American Donor Fund  192.3   172.8<br>CAF Canada  17.3   16.0<br> 1,091.0   1,026.2<br>**----- End of picture text -----**<br>


## **Legacies** 

Judgement has been applied in recognising income from legacies gifted to CAF. Legacies are recognised as income where receipt is probable, which is determined from a review of a number of criteria including grant of probate, sufficiency of assets and the existence of any conditions to be met. 

## **Donations payable to charities** 

Judgement has been applied in the disclosure in the SOFA of payments to beneficiaries as ‘Donations payable to charities’. These amounts principally represent payments to beneficiary organisations for charitable purposes based on the suggestion of our donors (donor-advised payments). It is the group’s objective to be cause neutral and, within the requirements of relevant regulations, to support any charitable cause wherever in the world it may be. Consequently, the Trustees do not consider these donor-advised payments to be made in pursuit of a grantmaking programme to support organisations that operate in specific charitable sectors or geographical locations, or that are of a certain size. 

Exceptionally, the group may from time-to-time make donor-advised payments to individuals rather than to organisations. However, such payments are made only in compliance with relevant regulations and following a successful assessment of the payment being for charitable purposes. 

## **Intangible fixed assets** 

The intangible fixed assets of £15.9m represent CAF Bank’s investment in a new core banking system under its transformation programme. In assessing for impairment at the balance sheet date, management assesses the current status of the programme, the continued viability of the programme, any obsolescence within the programme and whether there will be an economic benefit to CAF Bank on completion of the programme. Management have concluded that the transformation programme will be taken to completion and will deliver economic benefits to the organisation when brought into use and has, therefore, not been impaired. 

## **(b) Significant estimates** 

There are no sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 

## **1.19 Entity status** 

CAF meets the definition of a Public Benefit Entity under FRS 102. 

## **2. CONSOLIDATION** 

The group financial statements include the accounts of CAF (the charity) and its subsidiary undertakings for the year. 

## **Consolidated entities** 

The following entities are controlled by CAF and are consolidated in the group financial statements: 

## **Trading subsidiaries** 

By way of mixed-motive investments, CAF owns 100% of the equity share capital of the following: 

•  CAF Bank Limited (registered in England & Wales – company number 01837656), a bank for charities authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority 

•  CAF Financial Solutions Limited (registered in England & Wales – company number 02771873), a company authorised and regulated by the Financial Conduct Authority, responsible for the marketing and promotion of regulated savings and investment products to charities and its subsidiaries and the sponsor of an Open Ended Investment Company (OEIC), namely, IFSL CAF Investment Fund. 

## **UK registered charities** 

Southampton Row Trust Limited, which operates as the CAF American Donor Fund, is a UK charitable company registered with the Charity Commission (number 1079020) and is wholly-owned by CAF America (see below). CAF American Donor Fund supports cross-border tax-efficient giving by enabling individuals liable for tax in both the UK and USA to obtain tax relief on charitable gifts in each country. 

## **Overseas charitable entities** 

CAF controls the following overseas charitable entities: 

•  CAF America, a US public charity recognised by the US Internal Revenue Service. CAF America provides US citizens with the opportunity to make tax-effective gifts for the support of overseas charities. CAF has the power to appoint and remove the members of CAF America at any time. 

•  CAF Canada, a Canadian charity registered with the Canadian Revenue Agency (Canadian charity number 801966334RR0001) of which CAF and CAF America are the only members. 


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**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **3. RESULTS AND NET ASSETS OF SUBSIDIARIES** 

Due to the number of subsidiary undertakings, the disclosure required by the Charities SORP would result in information of excessive length being given. Detailed information is only given for those subsidiary undertakings that materially affect the group accounts being CAF Bank, CAF America and CAF American Donor Fund. The other entities, CAF Canada and CFSL, do not materially affect the group results. 


**----- Start of picture text -----**<br>
2025 2024 2025 2024<br>CAF Bank Limited £000  £000  £000  £000<br>Profit and Loss Account Balance Sheet<br>Assets<br>Interest receivable  66,478   65,024  Loans and advances to<br>Interest payable (20,929) (20,251) banks & Bank of England  614,885   654,523<br>Net interest income 45,549   44,773 Loans and advances to<br>Other operating income  1,755   1,768  customers  219,101   197,702<br>Administrative expenses  (32,825)  (27,659) Debt securities  682,783   637,376<br>Movement in loan loss provision  184  (715) Other assets  27,750   21,324<br>Profit on ordinary activities<br>before taxation 14,663  18,167  Total assets 1,544,519 1,510,925<br>Tax on proft on ordinary activities  (3,522)  (4,542) Liabilities<br>Profit on ordinary activities after<br>taxation 11,141  13,625 Depositors’ balances  1,450,926  1,419,433<br>Profit and loss account balance<br>brought forward  24,779   11,154  Other liabilities  17,354   26,394<br>Profit and loss account balance<br>carried forward 35,920 24,779 Total liabilities 1,468,280  1,445,827<br>Shareholders’ funds  76,239   65,098<br>Total liabilities and<br>shareholders’ funds 1,544,519 1,510,925<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
2025 2024 2025 2024<br>CAF America £000  £000  £000  £000<br>Statement of Financial Activities Balance Sheet<br>Donations and legacies receivable  665,365   568,860  Assets<br>Income from group entities  1,760   171  Unrestricted funds  7,255   8,715<br>Fee income  14,500   13,667  Donor advised funds [1]  167,985   170,620<br>Investment income  6,120   6,744  Total assets  175,240   179,335<br>Total income  687,745   589,442<br>Donations payable to charities  648,874   573,034  Liabilities<br>Donations payable to group entities  8,403   8,172  Unrestricted funds  1,634   2,633<br>Direct costs of charitable activities  19,518   18,074  Donor advised funds [1]  2,425   5,825<br>Governance costs  161   117  Total liabilities  4,059   8,458<br>Total expenditure  676,956   599,397  Funds<br>Unrestricted funds  5,621   6,082<br>Net income/(expenditure) before net<br>gains/(losses) on investments  10,789  (9,955) Donor advised funds [1]  165,560   164,795<br>Net gains/(losses) on<br>financial investments  (2,202)  2,228  Total funds  171,181   170,877<br>Net income/(expenditure) before other<br>recognised gains/(losses)  8,587  (7,727) Total liabilities and funds  175,240   179,335<br>Gains/(losses) on foreign exchange  (8,283)  1,199<br>Net movement in funds   304  (6,528)<br>Funds brought forward  170,877   177,405<br>Funds carried forward  171,181   170,877<br>**----- End of picture text -----**<br>


## **Notes:** 

1. These funds represent donations received by CAF America on the understanding they will be held pending the donors’ suggestions for onward distribution to third-party charities (donor advised funds). Therefore, they are treated as restricted funds within the group accounts. See note 1.18 (a). 

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**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 


**----- Start of picture text -----**<br>
2025 2024 2025 2024<br>CAF American Donor Fund £000  £000  £000  £000<br>Statement of Financial Activities Balance Sheet<br>Donations and legacies receivable  138,557   155,119  Assets<br>Donations receivable from group entities  843   299  Unrestricted funds  3,875   2,251<br>Investment income  7,410   6,980  Donor advised funds  [1]  192,568   174,333<br>Total income  146,810  162,398  Total assets  196,443   176,584<br>Donations payable to charities  117,034   112,175<br>Donations payable to group entities  4,626   11,308  Liabilities<br>Direct costs of charitable activities  76   225  Unrestricted funds  356   176<br>Direct costs paid to group entities  1,881   1,682  Donor advised funds [1]  244   1,481<br>Governance costs  117   61  Total liabilities  600   1,657<br>Total expenditure  123,734   125,451  Funds<br>Unrestricted funds  3,519   2,075<br>Net income before net gains/(losses)  Donor advised funds [1]  192,324   172,852<br>on investments  23,076  36,947  Total funds  195,843   174,927<br>Net gains on fnancial investments  664   4,020<br>Net losses on other investments  -   (30)<br>Net income before other recognised Total liabilities and funds  196,443   176,584<br>gains/(losses) 23,740  40,937<br>Gains/(losses) on foreign exchange  (2,824)  296<br>Net movement in funds  20,916  41,233<br>Funds brought forward  174,927   133,694<br>Funds carried forward 195,843  174,927<br>**----- End of picture text -----**<br>


## **Notes:** 

1. These funds represent donations received by the CAF American Donor Fund on the understanding they will be held pending the donors’ suggestions for onward distribution to third-party charities (donor advised funds). Therefore, they are treated as restricted funds within the group accounts. See note 1.18 (a). 

## **4. UK GOVERNMENT GRANTS** 

During the year CAF received £nil (2024: £233k) from the Foreign & Commonwealth Development Office (FCDO). No amounts were due to CAF from FCDO at 30 April 2025 (2024: £nil). 

## **5. INVESTMENT INCOME** 


**----- Start of picture text -----**<br>
Unrestricted Restricted Total<br>2025 2024 2025 2024 2025 2024<br>Group £000  £000  £000  £000  £000  £000<br>Interest on fixed interest securities<br>and cash deposits  29,456   29,006   10,454   10,726   39,910   39,732<br>Dividends   191  -  14,045   13,056   14,236   13,056<br>Interest on concessionary loans to charities  315   293  - -  315   293<br> 29,962   29,299   24,499   23,782   54,461   53,081<br>Charity<br>Interest on fixed interest securities<br>and cash deposits  20,988   20,382   8,254   8,574   29,242   28,956<br>Dividends   191  -  11,388   10,771   11,579   10,771<br>Interest on concessionary loans to charities  270   241  - -  270   241<br> 21,449   20,623   19,642   19,345   41,091   39,968<br>**----- End of picture text -----**<br>


## **6. INCOME AND DONATIONS RECEIVED AND CHARITABLE ACTIVITIES EXPENDITURE** 

## 6.1 Group unrestricted funds 


**----- Start of picture text -----**<br>
 Growing Philanthropy  Serving Charities Total Total<br>Grant<br>CAF  Financial &  making &<br>America and  donation  CAF  sector  Other<br>Charity [1] subsidiaries [2] services [3] Network [1] support funds  2025   2024<br>£000  £000  £000  £000  £000  £000  £000  £000<br>Income<br>Donations  4,424   1,820   15   -   -   10   6,269   6,185<br>Legacies  -   -   -   -   -  4,600   4,600   630<br> 4,424   1,820   15   -   -  4,610   10,869   6,815<br>Charitable activities:<br>Fee income  6,593   15,148   4,014   -   1,051   -   26,806   25,250<br>CAF Bank net interest income  -   -   45,549   -   -   -   45,549   44,773<br>Investment income  20,239   8,973   438  -  312   -   29,962   29,299<br>Total income  31,256   25,941   50,016   -   1,363  4,610  113,186  106,137<br>Expenditure on charitable activities<br>Donations payable to charities [4]  1,673   -   21   1   7   -   1,702   5,086<br>Direct costs  15,798   20,929   28,900   434   3,047  -  69,108   61,956<br>Support costs<br>Human resources  976  -  710   60   189  -  1,935   1,884<br>Property  955  -  983   79   165  -  2,182   2,773<br>Finance   2,669  -  567   199   519  -  3,954   3,712<br>Information systems  5,664  -  4,846   304   1,049  -  11,863   12,129<br>Governance costs  1,729   282   983   27   281  -  3,302   3,823<br> Total support costs   11,993   282   8,089   669   2,203   -   23,236   24,321<br> Total expenditure   29,464   21,211   37,010   1,104   5,257   -   94,046   91,363<br>Net income/(expenditure) before<br>gains/(losses) on investments  1,792   4,730   13,006  (1,104) (3,894)  4,610   19,140   14,774<br>Net losses on debt securities  -   -   -   -   -   (22)  (22)  (79)<br>Net gains on other investments  -   -   -   -   -   -   -   732<br>Net income/(expenditure)  1,792   4,730   13,006  (1,104) (3,894)  4,588   19,118   15,427<br>**----- End of picture text -----**<br>


For the above table, and subsequent tables in this note, summary comparative information only has been provided as it is considered that the provision of full comparatives would add a disproportionate volume of additional information, compared with the benefit obtained by the reader of the accounts. 

## **Notes:** 

1. Activities undertaken by CAF (the Charity). 

2.  Activities undertaken by CAF America, CAF American Donor Fund and CAF Canada. 

3. Activities undertaken by CAF, CAF Bank Limited and CAF Financial Solutions Limited. 

4.  Donations payable to charities includes £1.6m payable to NCVO for the period 1 May 2024 to 30 April 2025 as part of our ongoing commitment, which is payable in support of their representation of the interests of charities. £5.0m was paid in the prior year in respect of the period 1 May 2021 to 30 April 2024 following a review of the terms of CAF’s products and services. 

123 **CAF[  |  ]** ANNUAL REPORT 2024/25 

124 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## 6.2 Charity unrestricted funds 


**----- Start of picture text -----**<br>
 Growing Philanthropy  Serving Charities Total<br>Grant<br>Financial &  making &<br> Major  Regular  donation  CAF  sector  Other<br>donors  givers Companies  services [1] Network support funds  2025   2024<br>£000  £000  £000  £000  £000  £000  £000  £000  £000<br>Income<br>Donations  1,008   2,303   1,113   15  - -  2,796   7,235   6,901<br>Legacies - - - - - -  4,600   4,600   630<br> 1,008   2,303   1,113   15   -   -   7,396   11,835   7,531<br>Charitable activities:<br>Fee income  3,959   346   2,288   8,501   1,109   1,058  -  17,261   15,117<br>Investment income  10,238   5,061   4,940   898  -  312  -  21,449   20,623<br>Total income  15,205   7,710   8,341   9,414   1,109   1,370   7,396   50,545   43,271<br>Expenditure on<br>charitable activities<br>Donations payable to charities [2]  955   523   195   21   1   7  -  1,702   5,086<br>Direct costs  5,677   2,631   7,489   3,614   434   3,048  -  22,893   20,409<br>Support costs<br>Human resources  356   152   468   710   60   189  -  1,935   1,884<br>Property  325   157   473   983   79   165  -  2,182   2,773<br>Finance   975   414   1,280   567   199   519  -  3,954   3,712<br>Information systems  2,008   902   2,754   4,846   304   1,049  -  11,863   12,129<br>Governance costs  736   285   708   422   27   281  -  2,459   3,183<br>Total support costs  4,400   1,910   5,683   7,528   669   2,203   -   22,393   23,681<br>Total expenditure  11,032   5,064   13,367   11,163   1,104   5,258   -   46,988   49,176<br>Net income/(expenditure)<br>before net gains/(losses)<br>on investments  4,173   2,646  (5,026) (1,749)  5  (3,888)  7,396   3,557  (5,905)<br>Net losses on debt securities  -   -   -   -   -   -  (22) (22)  (79)<br>Net gains on other investments  -   -   -   -   -   -   -   -   732<br>Net income/(expenditure)  4,173   2,646  (5,026) (1,749)  5  (3,888)  7,374   3,535  (5,252)<br>**----- End of picture text -----**<br>


## **Notes:** 

1.   CAF’s income and expenditure arising from activities delivered by CAF (CAF Venturesome and CAF Donate), management fees received from its subsidiaries (CAF Bank Limited and CAF Financial Solutions Limited) and CAF’s associated costs. 

2.   Donations payable to charities includes £1.6m payable to NCVO for the period 1 May 2024 to 30 April 2025 as part of our ongoing commitment, which is payable in support of their representation of the interests of charities. £5.0m was paid in the prior year in respect of the period 1 May 2021 to 30 April 2024 following a review of the terms of CAF’s products and services. 

## 6.3 Unrestricted funds — Allocation of support costs 

Support costs of charitable activities comprise costs of certain central functions, which underpin the delivery of our services to support donors, charities and the sector and are shared across more than one of our activities. These shared functions provide support in areas such as information systems, premises, human resources, finance, executive management and governance. Where the costs of these shared functions cannot be attributed directly to an area of our activities, they are allocated on the basis of staff headcount. 

No support costs are allocated to restricted funds. 

## 6.4 Group restricted funds 


**----- Start of picture text -----**<br>
 Growing Philanthropy  Serving Charities Total  Total<br>Grant<br>CAF  Financial &  making &<br>America and  donation  sector<br>Charity [1] subsidiaries [2] services [3] support [1]  2025   2024<br>£000  £000  £000  £000  £000  £000<br>Income<br>Donations  376,209   814,953   169   661   1,191,992   1,030,956<br>Legacies  53,395   7,517  - -  60,912   33,715<br>Government grants - - - - -  233<br> 429,604   822,470   169   661   1,252,904   1,064,904<br>Investment income  19,526   4,857   -   116   24,499   23,782<br>Total income  449,130   827,327   169   777   1,277,403   1,088,686<br>Expenditure on charitable activities<br>Donations payable to charities  347,479   784,772   685   823   1,133,759   1,064,420<br>Direct costs  -   -   -   -   -   290<br>Total expenditure  347,479   784,772   685   823   1,133,759   1,064,710<br>Net income/(expenditure) before net gains/<br>(losses) on investments  101,651   42,555  (516) (46)  143,644   23,976<br>Net gains/(losses) on financial investments  17,703   (1,292)  -   -   16,411   73,469<br>Net gains/(losses) on other investments  22  -  (134) -  (112)  (30)<br>Net income/(expenditure)  119,376   41,263  (650) (46)  159,943   97,415<br>**----- End of picture text -----**<br>


Terms and conditions vary between products. As a result, a portion of investment income on restricted funds awaiting charitable distribution is allocated to unrestricted funds (see note 6.1). 

## **Notes:** 

1. Activities undertaken by CAF (the Charity). 

2. Activities undertaken by CAF America, CAF American Donor Fund and CAF Canada. 

3. Activities undertaken by CAF, CAF Bank Limited and CAF Financial Solutions Limited. 

125 **CAF[  |  ]** ANNUAL REPORT 2024/25 

126 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## 6.5 Charity restricted funds 


**----- Start of picture text -----**<br>
 Growing Philanthropy  Serving Charities Total  Total<br> Major  Regular  CAF  Grant<br>donors givers Companies  Venturesome making  2025   2024<br>£000  £000  £000  £000  £000  £000  £000<br>Income<br>Donations   203,122   100,705   80,349   169   661   385,006   312,302<br>Legacies  53,450  - - - -  53,450   30,293<br>Government grants - - - - - -  233<br> 256,572   100,705   80,349   169   661   438,456   342,828<br>Investment income  19,526  - - -  116   19,642   19,345<br>Total income  276,098   100,705   80,349   169   777   458,098   362,173<br>Expenditure on charitable activities<br>Donations payable to charities  178,080   98,498   71,187   685   823   349,273   362,316<br>Direct costs - - - - - -  290<br>Total expenditure  178,080   98,498   71,187   685   823   349,273   362,606<br>Net income/(expenditure) before net gains/<br>(losses) on investments  98,018   2,207   9,162  (516) (46)  108,825  (433)<br>Net gains on financial investments  17,703   -   -   -   -   17,703   67,024<br>Net gains/(losses) on other investments  22  - -  (134) -  (112) -<br>Net income/(expenditure)  115,743   2,207   9,162  (650) (46)  126,416   66,591<br>**----- End of picture text -----**<br>


## **8. STAFF COSTS** 


**----- Start of picture text -----**<br>
 CAF America   CAF Bank and other<br> Charity  Group<br>and subsidiaries  trading subsidiaries<br> 2025   2024  2025 2024 2025 2024 2025 2024<br>£000  £000  £000  £000  £000  £000  £000  £000<br>Salaries and wages 21,136  20,045  8,881  7,782  10,671  8,085  40,688  35,912<br>Social security costs 2,306  2,017  599  438  1,060  837  3,965  3,292<br>Defned contribution scheme pension costs 1,740  1,791  663  556  677  587  3,080  2,934<br>Training and welfare 970  763  1,050  327  133  1  2,153  1,091<br> 26,152   24,616   11,193   9,103   12,541   9,510   49,886  43,229<br>Other pension costs (see note 31)  66  247  - - - -  66  247<br> 26,218   24,863   11,193   9,103   12,541   9,510   49,952  43,476<br>**----- End of picture text -----**<br>


Throughout this note, where employees of the charity are assigned to duties exclusively for one of CAF’s subsidiaries, the associated staff costs and employee numbers are included within the figures for either ‘CAF America and subsidiaries’ or for ‘CAF Bank and other trading subsidiaries’. 

Included within salaries and wages are redundancy and termination costs totalling £417k for the group and £155k for the Charity (2024: £188k for the group and £43k for the Charity). All amounts were paid during the year. 

The average number of employees during the year was: 

Terms and conditions vary between products. As a result, a portion of investment income on restricted funds awaiting charitable distribution is allocated to unrestricted funds (see note 6.2). 

## **7. GOVERNANCE COSTS** 

Governance costs include the following amounts: 

|**Group**<br>2025<br>2024<br>£000<br>£000|**Charity**|
|---|---|
||2025<br>2024<br>£000<br>£000|
|Internal audit<br>284<br>309|135<br>167|
|Fees payable to the group external auditor, net of VAT:||
|Audit of fnancial statements<br>971<br>897|610<br>610|
|Other services<br>76<br>65|-<br> -|
|Fees payable to component external auditor, net of VAT:||
|Audit of fnancial statements<br>165<br>135|-<br> -|
|Trustees’ indemnityinsurance<br>200<br>114|131<br>64|




**----- Start of picture text -----**<br>
 CAF America and  CAF Bank and other<br> Charity   Group<br>subsidiaries  trading subsidiaries<br>2025 2024 2025 2024 2025 2024 2025 2024<br> Number  Number  Number  Number  Number  Number  Number  Number<br>Full-time and part-time employees  443   422   131   139   194   173   768   734<br>Full-time equivalent  425   406   130   139   186   164   741   709<br>**----- End of picture text -----**<br>


Average number of full time equivalent employees analysed by function: 


**----- Start of picture text -----**<br>
2025 2024<br>Major donors  92   109<br>Regular givers  45   59<br>Companies  134   131<br>Financial and donation services  94   45<br>CAF International team  13   10<br>Grantmaking and sector support  47   51<br>Governance  -  1<br>Charity  425   406<br>CAF America and subsidiaries  130   139<br>CAF Bank and other trading subsidiaries  186   164<br>Group  741   709<br>**----- End of picture text -----**<br>


127 **CAF[  |  ]** ANNUAL REPORT 2024/25 

128 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## Employee emoluments 

Emoluments include gross salary, taxable benefits and one-off end-of-contract payments, such as redundancy, but exclude employer pension contributions. 

The number of employees whose total emoluments exceeded £60,000 during the year is as follows: 


**----- Start of picture text -----**<br>
 CAF America  CAF Bank and other<br> Charity   Group<br>and subsidiaries  trading subsidiaries<br>2025 2024 2025 2024 2025 2024 2025 2024<br> Number  Number  Number  Number  Number  Number  Number  Number<br>£60,001 - £70,000  33   29   26   10   8   4   67   43<br>£70,001 - £80,000  20   16   8   5   3   10   31   31<br>£80,001 - £90,000  14   7   7   6   11   3   32   16<br>£90,001 - £100,000  8   8   3   1   3   2   14   11<br>£100,001 - £110,000  8   3   2   5   2   2   12   10<br>£110,001 - £120,000  6   1   4   1   1  -  11   2<br>£120,001 - £130,000  1   1  - -  1   1   2   2<br>£130,001 - £140,000  1   2   1  -  1  -  3   2<br>£140,001 - £150,000  4  - -  1  -  1   4   2<br>£150,001 - £160,000 -  2   1  -  1  -  2   2<br>£160,001 - £170,000  2   1  - - - -  2   1<br>£170,001 - £180,000 -  1   1  - -  2   1   3<br>£180,001 - £190,000 - - - -  2   1   2   1<br>£190,001 - £200,000  1   1  -  1   1  -  2   2<br>£200,001 - £210,000 - - - -  1  -  1  -<br>£210,001 - £220,000 - - - - -  1  -  1<br>£220,001 - £230,000 - - - -  1  -  1  -<br>£240,001 - £250,000 -  1  -  1  - - -  2<br>£250,001 - £260,000  1  -  1  - - -  2  -<br>£260,001 - £270,000  - -  1  - - -  1  -<br>£290,001 - £300,000  1   1  - - - -  1   1<br>£300,001 - £310,000 - - - - -  1  -  1<br>£310,001 - £320,000 - -  1  -  1  -  2  -<br>£350,001 - £360,000  -   -   -   1   -   -   -   1<br> 100   74   56   32   37   28   193   134<br>**----- End of picture text -----**<br>


## Pension contributions 

Pension contributions paid in respect of the employees included in the preceding table are as follows: 


**----- Start of picture text -----**<br>
 CAF America    CAF Bank and other<br> Charity   Group<br>and subsidiaries  trading subsidiaries<br>2025 2024 2025 2024 2025 2024 2025 2024<br> Number  Number  Number  Number  Number  Number  Number  Number<br>Number of employees  99   73   54   32   34   27   187   132<br>£000  £000  £000  £000  £000  £000  £000  £000<br>Aggregate value of contributions  785   602   443   268   287   231   1,515   1,101<br>**----- End of picture text -----**<br>


## Key management personnel 

The key management personnel of the group are the Trustees of the charity and members of the Group Executive Committee. 

The Trustees receive no remuneration for their services, but may be reimbursed for out-of-pocket expenses in respect of attending meetings and carrying out duties on behalf of CAF. Expenses of £3,488 were reimbursed during the year (2024: £526). 

Total salary and employee benefits for members of the Group Executive Committee during the year amounted to £2,049,897 (2024: £1,936,020) plus pension contributions of £134,682 (2024: £115,616). Employers’ National Insurance contributions amounted to £231,305 (2024: £188,986). 

## **9. TAXATION** 

CAF is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and, therefore, it meets the definition of a charitable trust for UK Income Tax purposes. Accordingly, the charity is exempt from taxation in respect of income or capital gains received within categories covered by Part 10 of the Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

Consequently, no tax charge has arisen in the current or preceding year for the charity. 

The highest paid role for the year ended 30 April 2025 is the CEO of CAF Bank and CAF Financial Solutions Limited. The highest paid role in the year ended 30 April 2024 for the group was the former President and CEO of CAF America whose emoluments are paid in US dollars. The average exchange rate for the year was $1.281:£1 (2024: $1.257:£1). 

The Group Chief Executive received salary and benefits of £297k (2024: £291k) and employer pension contributions of £34k (2024: £33k). 

A Corporation Tax charge for the year of £3.5m (2024: £4.5m) arose for the group which is attributable to CAF Bank Limited. 

|**Group**<br>2025<br>2024<br>£000<br>£000|**Group**<br>2025<br>2024<br>£000<br>£000|
|---|---|
||2024<br>£000|
|**Tax expense:**||
|Proft on ordinary activities before tax<br>**14,661**|**18,167**|
|**Reconciliation to tax expense**<br>Proft on ordinary activities before tax at 25.0% (2024: 25.0%)<br>3,665||
||4,542|
|Amounts relating to other comprehensive income<br>7|-|
|Adjustment in respect of prior periods<br>(311)|-|
|Deferred tax - adjustment in respect of prior periods<br>161|-|
|**Tax charge**<br>**3,522**|**4,542**|



129 **CAF[  |  ]** ANNUAL REPORT 2024/25 

130 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **10. LOANS AND ADVANCES TO BANKS** 


**----- Start of picture text -----**<br>
Unrestricted   Restricted   CAF Bank balances and<br>Total<br>funds funds donor client balances<br>2025 2024 2025 2024 2025 2024 2025 2024<br>Group £000  £000  £000  £000  £000  £000  £000  £000<br>On demand and short-term deposits  52,032  46,506   253,833  301,671   8,800   30,604   314,665  378,781<br>Remaining maturity of other loans<br>and advances:<br>Less than 6 months - -  209,793  141,722  - -  209,793  141,722<br>Between 6 months and 1 year - -  57,145   74,523  - -  57,145   74,523<br> 52,032  46,506  520,771  517,916   8,800   30,604   581,603  595,026<br>Unrestricted   Restricted<br>Donor client balances Total<br>funds funds<br>2025 2024 2025 2024 2025 2024 2025 2024<br>Charity £000  £000  £000  £000  £000  £000  £000  £000<br>On demand and short-term deposits  42,740  37,300   93,137  137,569   4,594   6,613   140,471  181,482<br>Remaining maturity of other loans<br>and advances:<br>Less than 6 months - -  182,287  113,216  - -  182,287  113,216<br>Between 6 months and 1 year - -  29,639   54,523  - -  29,639   54,523<br> 42,740  37,300  305,063  305,308  4,594   6,613   352,397  349,221<br>**----- End of picture text -----**<br>


## **11. LOANS AND ADVANCES TO CUSTOMERS** 


**----- Start of picture text -----**<br>
Unrestricted  Restricted   CAF Bank balances and<br>Total<br>funds funds donor client balances<br>2025 2024 2025 2024 2025 2024 2025 2024<br>£000  £000  £000  £000  £000  £000  £000  £000<br>Concessionary loans:<br>CAF Venturesome loans to charities -  121   1,587   1,729  - -  1,587   1,850<br>CAF Charitable Trust loans to charities  -   -   1,998   1,271   -   -   1,998   1,271<br>Charity  -   121   3,585   3,000   -   -   3,585   3,121<br>CAF Bank loans to charities and social<br> -   -   -   -   219,101   197,702   219,101  197,702<br>purpose enterprises<br>CADF loans to charities - -  751   801  - -  751   801<br>CAF Canada loans to charities  -   -   4,334   4,937   -   -   4,334   4,937<br>Group  -   121   8,670   8,738   219,101   197,702   227,771  206,561<br>**----- End of picture text -----**<br>


## **11. LOANS AND ADVANCES TO CUSTOMERS (CONTINUED)** 


**----- Start of picture text -----**<br>
Group Charity<br>2025 2024 2025 2024<br>Maturity £000  £000  £000  £000<br>Amounts receivable in less than one year<br>CAF Venturesome loans to charities  1,865   332   1,865   332<br>CAF Charitable Trust loans to charities  1,724   715   1,724   715<br>CAF Bank loans  7,143   8,769  - -<br>CAF Canada loan to charities  703   748  - -<br> 11,435   10,564   3,589   1,047<br>Amounts receivable in one to five years<br>CAF Venturesome loans to charities  1,941   3,943   1,941   3,943<br>CAF Charitable Trust loans to charities  435   1,256   435   1,256<br>CAF Bank loans   28,322   24,786  - -<br>CADF loans to charities  751   801  - -<br>CAF Canada loan to charities  1,616   1,712  - -<br> 33,065   32,498   2,376   5,199<br>Amounts receivable in more than five years<br>CAF Venturesome loans to charities  671   119   671   119<br>CAF Charitable Trust loans to charities  555  -  555  -<br>CAF Bank loans   187,898   168,425  - -<br>CAF Canada loan to charities  2,015   2,477  - -<br> 191,139   171,021   1,226   119<br>Less: Deferred income and provisions<br>CAF Venturesome loans to charities  (2,891)  (2,544)  (2,891)  (2,544)<br>CAF Charitable Trust loans to charities  (715)  (700)  (715)  (700)<br>CAF Bank loans   (4,262)  (4,278) - -<br>(7,868) (7,522) (3,606) (3,244)<br>Total loans  227,771   206,561   3,585   3,121<br>**----- End of picture text -----**<br>


## **12. DEBT SECURITIES** 


**----- Start of picture text -----**<br>
Group Charity<br>Book value Market value Book value Market value<br>2025 2024 2025 2024 2025 2024 2025 2024<br>Restricted funds £000  £000  £000  £000  £000  £000  £000  £000<br>Listed:<br>UK Government  20,045   19,755   20,058   20,000   20,045   19,755   20,058   20,000<br>Multilateral fnancial institutions  215,916  130,928   215,476  130,519  215,916  130,928   215,476   130,519<br>Fixed coupon corporate bonds  34,422   50,563   32,469   47,815   34,422   50,563   32,469   47,815<br> 270,383 201,246   268,003 198,334  270,383  201,246  268,003  198,334<br>Unlisted:<br>Certifcates of deposit  92,532  123,821   92,469  125,859   55,000   95,000   54,937   97,038<br> 92,532 123,821   92,469 125,859   55,000   95,000   54,937   97,038<br> 362,915 325,067   360,472 324,193  325,383  296,246  322,940  295,372<br>CAF Bank balances<br>Listed:<br>Multilateral fnancial institutions  563,083  511,053   555,768  489,173  - - - -<br>Fixed coupon corporate bonds  59,570  49,368   59,347  47,900  - - - -<br>Floating rate corporate bonds  60,130  76,955   60,133  76,853  - - - -<br> 682,783  637,376   675,248  613,926   -   -   -   -<br>Total debt securities 1,045,698 962,443 1,035,720  938,119  325,383  296,246  322,940  295,372<br>**----- End of picture text -----**<br>


131 **CAF[  |  ]** ANNUAL REPORT 2024/25 

132 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **12. DEBT SECURITIES (CONTINUED)** 


**----- Start of picture text -----**<br>
Group Charity<br>Book value Book value<br>2025 2024 2025 2024<br>Maturity £000  £000  £000  £000<br>Up to 6 months  59,472  89,672   2,650   70,081<br>Between 6 months and 1 year  194,319  242,075   70,155   116,993<br> 253,791  331,747   72,805   187,074<br>Between 1 year and 5 years  724,226  617,562   184,897   104,619<br> 978,017  949,309   257,702   291,693<br>Over 5 years  67,681   13,134   67,681   4,553<br>Total debt securities  1,045,698  962,443   325,383   296,246<br>Unamortised discounts/(premiums) (10,947) (13,085) (720)  764<br>**----- End of picture text -----**<br>


In accordance with FRS 102 debt securities are measured at amortised cost using the effective interest method. 


**----- Start of picture text -----**<br>
Cost Amortisation Book value<br>Group £000 £000 £000<br>Restricted funds<br>At 1 May 2024  326,498   (1,431)  325,067<br>Acquisitions  252,493   56   252,549<br>Disposals  (1,454)  132   (1,322)<br>Redemptions  (212,531)  610   (211,921)<br>Amortisation -  340   340<br>-<br>Foreign exchange gains  (1,798)  (1,798)<br>At 30 April 2025  363,208  (293)  362,915<br>CAF Bank balances and donor client balances<br>At 1 May 2024  635,548   1,828   637,376<br>Acquisitions  157,005   (41)  156,964<br>Redemptions  (117,369)  1,771   (115,598)<br>Amortisation -  4,041   4,041<br>At 30 April 2025  675,184   7,599   682,783<br>Total  1,038,392   7,306   1,045,698<br>Cost Amortisation Book value<br>Charity £000 £000 £000<br>Restricted funds<br>At 1 May 2024  297,677   (1,431)  296,246<br>Acquisitions  241,984   56   242,040<br>Disposals  (1,454)  132   (1,322)<br>Redemptions  (212,531)  610   (211,921)<br>Amortisation -  340   340<br>At 30 April 2025  325,676  (293)  325,383<br>**----- End of picture text -----**<br>


## **13. FINANCIAL INVESTMENTS** 

## Restricted funds 

The following tables show the carrying amounts of investments held by the group at fair value and represent restricted funds held for CAF Charitable Trusts, CAF America and CAF Canada Donor Advised Funds and CAF American Donor Fund Trusts (collectively ‘Trust funds’). They do not include fair value information for other financial assets and liabilities held by the group which are not measured at fair value. 

## Nature of Trust funds 

Trust funds are held pending onward donation suggestions from clients. Until such suggestions are received there is no constructive obligation or liability to pay a defined amount within a set time period. Donors typically hold a portion of these funds in cash in order to meet their short-term giving expectations and invest funds to meet their medium to long-term philanthropic objectives. Donors plan donation suggestions by reference to the market values and liquidity profile of the assets held for their trust fund. 


**----- Start of picture text -----**<br>
Group Charity<br>2025 2024 2025 2024<br>Restricted funds £000  £000  £000  £000<br>At 1 May  967,603   817,717   870,005   750,244<br>Additions  292,268   326,439   228,211   211,074<br>Disposal proceeds  (245,580)  (250,022)  (192,773)  (158,337)<br>Net investment gains/(losses)  16,411   73,469   17,703   67,024<br> 1,030,702   967,603   923,146   870,005<br>Investment portfolio cash and settlements pending  7,619   12,013   5,619   4,530<br>At 30 April  1,038,321   979,616   928,765   874,535<br>Historical cost of investments  898,378   828,014   797,556   735,450<br>**----- End of picture text -----**<br>


## Measurement of fair values 

The following hierarchy is used to estimate the fair value of investments: 

- **Level 1** The quoted price for an identical asset in an active market. 

- **Level 2** When quoted prices are unavailable, the fair value is taken as the price of a recent transaction for an identical asset. No investments were held in this category as at 30 April 2025 or 30 April 2024. 

- **Level 3** If the market for the asset is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, a valuation technique is used to estimate the fair value. The objective of using a valuation technique is to estimate what the transaction price would have been on the measurement date in an arm’s length exchange motivated by normal business considerations. If the range of reasonable fair value estimates is significant and the probabilities of the various estimates cannot be reasonably assessed, the assets are valued at cost less impairment until a reliable measure of fair value becomes available. 

133 **CAF[  |  ]** ANNUAL REPORT 2024/25 

134 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **13. FINANCIAL INVESTMENTS (CONTINUED)** 


**----- Start of picture text -----**<br>
Level 1 Level 3 Total<br>2025 2024 2025 2024 2025 2024<br>Group £000  £000  £000  £000  £000  £000<br>Represented by:<br>Listed securities:<br>UK Government fxed interest  35,791   25,462  - -  35,791   25,462<br>Overseas Government fxed interest  2,374   5,337  - -  2,374   5,337<br>Other fxed interest  10,147   7,701  - -  10,147   7,701<br>UK equities  30,391   32,334  - -  30,391   32,334<br>Overseas equities  89,350   79,414  - -  89,350   79,414<br>CAF investment funds:<br>IFSL CAF Funds  157,241   128,679  - -  157,241   128,679<br>Unit trusts and other pooled investments  667,693   653,625  - -  667,693   653,625<br>Investment trusts  35,291   32,742  - -  35,291   32,742<br>Unlisted investments:<br>UK  - -  2,424   2,309   2,424   2,309<br> 1,028,278   965,294   2,424   2,309   1,030,702   967,603<br>Investment portfolio cash and<br>settlements pending  7,619   12,013   -   -   7,619   12,013<br> 1,035,897   977,307   2,424   2,309   1,038,321   979,616<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Level 1 Level 3 Total<br>2025 2024 2025 2024 2025 2024<br>Charity £000  £000  £000  £000  £000  £000<br>Represented by:<br>Listed securities:<br>UK Government fxed interest 35,791 24,659 - - 35,791 24,659<br>Overseas Government fxed interest 2,022 4,480 - - 2,022 4,480<br>Other fxed interest 7,582 7,701 - - 7,582 7,701<br>UK equities 29,436 31,804 - - 29,436 31,804<br>Overseas equities 66,968 62,479 - - 66,968 62,479<br>CAF investment funds:<br>IFSL CAF Funds 157,013 128,495 - - 157,013 128,495<br>Unit trusts and other pooled investments 587,060 575,930 - - 587,060 575,930<br>Investment trusts 34,850 32,148 - - 34,850 32,148<br>Unlisted investments:<br>UK  - - 2,424 2,309 2,424 2,309<br>920,722 867,696 2,424 2,309 923,146 870,005<br>Investment portfolio cash and<br>settlements pending 5,619 4,530 - - 5,619 4,530<br>926,341 872,226 2,424 2,309 928,765 874,535<br>**----- End of picture text -----**<br>


## **14. OTHER INVESTMENTS** 


**----- Start of picture text -----**<br>
Unrestricted funds Restricted funds Total<br>2025 2024 2025 2024 2025 2024<br>Group £000  £000  £000  £000  £000  £000<br>Investment properties - -  1,300   4,600   1,300   4,600<br>Unlisted investments  4,829   4,829   726   725   5,555   5,554<br>Other   -   -   464   68   464   68<br> 4,829   4,829   2,490   5,393   7,319   10,222<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Unrestricted funds Restricted funds Total<br>2025 2024 2025 2024 2025 2024<br>Charity £000  £000  £000  £000  £000  £000<br>Investment properties - -  1,300   4,600   1,300   4,600<br>Unlisted investments  4,829   4,829   726   725   5,555   5,554<br>Other - -  400  -  400  -<br> 4,829    4,829     2,426    5,325     7,255   10,154<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Unrestricted funds Restricted funds Total<br>Group £000  £000  £000<br>As at 1 May 2024  4,829   5,393   10,222<br>Additions -  575   575<br>-<br>Disposal proceeds  (3,362)  (3,362)<br>Gain on disposal -  22   22<br>Revaluation -  (134)  (134)<br>Foreign exchange movements  -   (4)  (4)<br>At 30 April 2025  4,829   2,490   7,319<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Unrestricted funds Restricted funds Total<br>Charity £000  £000  £000<br>As at 1 May 2024  4,829   5,325   10,154<br>Additions -  575   575<br>-<br>Disposal proceeds  (3,362)  (3,362)<br>Gain on disposal -  22   22<br>Revaluation -  (134)  (134)<br>At 30 April 2025   4,829     2,426     7,255<br>**----- End of picture text -----**<br>


For the sole investment property held in restricted funds in CAF, the valuation was carried out by an independent, qualified chartered surveyor, Berrys as at 30 April 2024. The valuation was carried out in accordance with the guidelines of the Royal Institution of Chartered Surveyors. 

135 **CAF[  |  ]** ANNUAL REPORT 2024/25 

136 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **15. SUBSIDIARY UNDERTAKINGS** 


**----- Start of picture text -----**<br>
Ordinary share capital Sub-ordinated debt Total<br>Charity £000 £000 £000<br>At 1 May 2024 and 30 April 2025  41,700   5,000   46,700<br>**----- End of picture text -----**<br>


Details of the entities held as subsidiary undertakings are disclosed in note 2 of these financial statements. 

## Long-leasehold property 

The long-leasehold property consists of the lease to the year 2190 on the land and buildings occupied by CAF as its principal place of business. The property is held at valuation and was valued at 30 April 2025 by CBRE, Chartered Surveyors. The valuation was carried out in accordance with the guidelines of the Royal Institution of Chartered Surveyors. The open market value, on a vacant possession basis, at that date was estimated at £2.7m (2024: £2.9m), giving rise to an unrecognised impairment loss of £0.1m at the balance sheet date. 

A revaluation in accordance with appropriate professional guidelines will be carried out when needed to ensure valuation is kept up-to-date. 

The historical cost carrying value of the property and improvements at the balance sheet date was £3.2m (2024: £3.2m). 

## **16. TANGIBLE FIXED ASSETS** 


**----- Start of picture text -----**<br>
Long  Furniture<br>leasehold  Other  fittings &<br>property &  leasehold  computer<br>improvements  improvements  equipment  Total<br>Group - unrestricted funds £000 £000 £000 £000<br>Cost or valuation<br>At 1 May 2024  3,200   969   2,665   6,834<br>Foreign exchange movements  -   (7)  (8)  (15)<br>At 30 April 2025  3,200   962   2,657   6,819<br>Depreciation<br>At 1 May 2024  300   170   2,663   3,133<br>Charged in year  97   124   2   223<br>Foreign exchange movements  -   (7)  (8)  (15)<br>At 30 April 2025  397   287   2,657   3,341<br>Net book value<br>At 30 April 2025  2,803   675   -   3,478<br>At 30 April 2024  2,900   799   2   3,701<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Long  Furniture<br>leasehold  Other  fittings &<br>property &  leasehold  computer<br>improvements  improvements  equipment  Total<br>Charity - unrestricted funds £000 £000 £000 £000<br>Cost or valuation<br>At 1 May 2024 and 30 April 2025  3,200   849   2,527   6,576<br>Depreciation<br>At 1 May 2024  300   89   2,527   2,916<br>Charged in year  97   117   -   214<br>At 30 April 2025  397   206   2,527   3,130<br>Net book value<br>At 30 April 2025  2,803   643   -   3,446<br>At 30 April 2024  2,900   760   -   3,660<br>**----- End of picture text -----**<br>


## **17. INTANGIBLE FIXED ASSETS** 

||**Development cost**|
|---|---|
|Group - unrestricted funds|£000|
|Cost or valuation||
|At 1 May 2024|10,758|
|Additions<br>**At 30 April 2025**|5,150<br>**15,908**|



Intangible fixed assets represent software development costs associated with the development of a banking system for CAF Bank Limited, which went live after the year end in June 2025. They have been capitalised in accordance with FRS 102 Section 18, Intangible Assets Other than Goodwill. CAF Bank Limited performed an impairment review of its capitalised development costs as at 30 April 2025 in accordance with FRS 102 Section 27. Based on the review, no indicators of impairment were identified to the carrying value of the asset. Accordingly, no impairment has been recognised in the current period. 

## **18. OTHER DEBTORS** 

Balances falling due within one year. 


**----- Start of picture text -----**<br>
Unrestricted funds Restricted funds Total<br>2025 2024 2025 2024 2025 2024<br>Group £000  £000  £000  £000  £000  £000<br>Income Tax recoverable - -  15,181   10,309   15,181   10,309<br>Other debtors  1,182   1,928   4,698   1,905   5,880   3,833<br> 1,182   1,928   19,879   12,214   21,061   14,142<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Unrestricted funds Restricted funds Total<br>2025 2024 2025 2024 2025 2024<br>Charity £000  £000  £000  £000  £000  £000<br>Amounts due from subsidiary undertakings  3,802   2,005  - -  3,802   2,005<br>Income Tax recoverable - -  14,474   3,239   14,474   3,239<br>Other debtors  544   671   4,305   1,352   4,849   2,023<br> 4,346   2,676   18,779   4,591   23,125   7,267<br>**----- End of picture text -----**<br>


137 **CAF[  |  ]** ANNUAL REPORT 2024/25 

138 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **19. PREPAYMENTS AND ACCRUED INCOME** 

Balances falling due within one year. 


**----- Start of picture text -----**<br>
Unrestricted   Restricted   CAF Bank balances and<br>Total<br>funds funds donor client balances<br>2025 2024 2025 2024 2025 2024 2025 2024<br>Group £000  £000  £000  £000  £000  £000  £000  £000<br>Prepayments  4,148   4,349  - - - -  4,148   4,349<br>Accrued income<br>Legacy income  4,008   1,622   49,780  23,161  - -  53,788   24,783<br>Interest receivable  7,263  10,615   1,301   1,858   9,134   8,486   17,698  20,959<br>Other income  1,464   550   846   103   -   -   2,310   653<br> 16,883  17,136   51,927  25,122   9,134   8,486   77,944  50,744<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Unrestricted   Restricted<br>Total<br>funds funds<br>2025 2024 2025 2024 2025 2024<br>Charity £000  £000  £000  £000  £000  £000<br>Prepayments  1,873   2,011  - -  1,873   2,011<br>Accrued income<br>Legacy income  4,008   1,622   41,235   22,040   45,243   23,662<br>Interest receivable  5,178   9,059   1,284   1,766   6,462   10,825<br>Other income  1,165   372   635   103   1,800   475<br> 12,224   13,064   43,154   23,909   55,378   36,973<br>**----- End of picture text -----**<br>


A portion of accrued legacy income may be received after more than one year from the balance sheet date but this figure cannot be determined with any accuracy due to the inherent uncertainty in the timing of legacy income receipts. 

## **20. CAF BANK DEPOSITOR BALANCES** 

|**CAF Bank balances**<br>**and donor client balances**<br>2025<br>2024<br>Group<br>£000<br>£000|**CAF Bank balances**<br>**and donor client balances**<br>2025<br>2024<br>Group<br>£000<br>£000|
|---|---|
||2024<br>£000|
|Repayable on demand<br>1,442,173|1,408,503|
|Repayable within 30 days<br>8,747|10,924|
|**1,450,920**|**1,419,427**|



## **21. DONOR CLIENT BALANCES** 

The following represent donations to other charities that are being processed by CAF: 


**----- Start of picture text -----**<br>
Amounts Amounts<br>At 1 May  received   received Amounts paid  Donations  At 30 April<br> 2024  from donors  from CAF to charities  paid to CAF  2025<br>Group and charity £000  £000  £000 £000  £000  £000<br>CAF Give As You Earn 5,673   61,787   1,371   (22,893)  (42,383)  3,555<br>CAF Donate 534   46,599   -   (46,828)  -   305<br>6,207  108,386  1,371  (69,721) (42,383) 3,860<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Amounts<br>At 1 May  Amounts  received Amounts paid  Donations  At 30 April<br> 2023  received   from CAF to charities  paid to CAF  2024<br>Group and charity £000  £000  £000 £000  £000  £000<br>CAF Give As You Earn 6,238   60,299   1,389   (21,129)  (41,124)  5,673<br>CAF Donate 891   46,754   -   (47,111)  -   534<br>7,129  107,053  1,389  (68,240) (41,124) 6,207<br>**----- End of picture text -----**<br>


## **22. DUE TO BENEFICIARY CHARITIES** 

|**Restricted funds**<br>2025<br>2024<br>Group<br>£000<br>£000<br>Payable within 1 year<br>6,622<br>14,880<br>Payable between 1 and 5 years<br>1,098<br>2,922<br>**7,720**<br>**17,802**|**Restricted funds**<br>2025<br>2024<br>Group<br>£000<br>£000<br>Payable within 1 year<br>6,622<br>14,880<br>Payable between 1 and 5 years<br>1,098<br>2,922<br>**7,720**<br>**17,802**|
|---|---|
||2024<br>£000|
|Payable within 1 year<br>6,622|14,880|
|Payable between 1 and 5 years<br>1,098|2,922|
|**7,720**|**17,802**|
|||
|**Restricted funds**<br>2025<br>2024<br>Charity<br>£000<br>£000<br>Payable within 1 year<br>3,993<br>8,887<br>Payable between 1 and 5 years<br>1,098<br>2,922<br>**5,091**<br>**11,809**||
||2024<br>£000|
|Payable within 1 year<br>3,993|8,887|
|Payable between 1 and 5 years<br>1,098|2,922|
|**5,091**|**11,809**|



Amounts due to beneficiary charities represent constructive obligations, principally in respect of longer-term donor suggestions. 

139 **CAF[  |  ]** ANNUAL REPORT 2024/25 

140 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **23. OTHER CREDITORS** 

Balances fall due within one year except where stated below. 


**----- Start of picture text -----**<br>
Unrestricted   Restricted   CAF Bank balances and<br>Total<br>funds funds donor client balances<br>2025 2024 2025 2024 2025 2024 2025 2024<br>Group £000  £000  £000  £000  £000  £000  £000  £000<br>Payable on acquisition of investments - -  213   400  - -  213   400<br>Trade creditors  3,443   3,449  - - - -  3,443   3,449<br>Tax and social security  966   1,138  - - - -  966   1,138<br>Other creditors  6,542   2,731   6,028   5,916   734   406   13,304   9,053<br> 10,951   7,318   6,241   6,316   734   406   17,926  14,040<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Unrestricted   Restricted<br>Donor client balances Total<br>funds funds<br>2025 2024 2025 2024 2025 2024 2025 2024<br>Charity £000  £000  £000  £000  £000  £000  £000  £000<br>Amounts owed to subsidiary undertakings -  130  - - - - -  130<br>Payable on acquisition of investments - -  213   400  - -  213   400<br>Trade creditors  1,397   1,078  - - - -  1,397   1,078<br>Tax and social security  966   1,138  - - - -  966   1,138<br>Other creditors  994   113   6,028   5,916  734   406   7,756   6,435<br> 3,357   2,459   6,241   6,316   734   406   10,332   9,181<br>**----- End of picture text -----**<br>


Included within other creditors are amounts totalling £0.2m (2024: £1.1m) repayable to six (2024: seven) third-party investors of CAF Venturesome. Amounts are repayable within three or six months from receipt of written instruction. These concessionary loans do not bear interest and amounts are repaid net of any losses that may be incurred as a result of onward lending by CAF Venturesome, on a concessionary basis to charities and social enterprises. 

## **24. REPURCHASE AGREEMENTS** 

In CAF Bank, repurchase agreements total £nil (2024: £13.9m). The corresponding carrying value of assets of £nil (2024: £14.7m) sold under sale and repurchase agreements is included within debt securities (note 12). 

## **25. LONG-TERM LOANS** 


**----- Start of picture text -----**<br>
2026 Loan 2031 Loan Total carrying value<br>2025 2024 2025 2024 2025 2024<br>Group and charity £000 £000 £000 £000 £000 £000<br>Unrestricted funds<br>At 1 May  7,163   7,142   30,006   29,959   37,169   37,101<br>Amortisation of capitalised costs  22   21   48   46   70   67<br>Interest payable for the year  369   368   1,083   1,082   1,452   1,450<br>Interest paid  (368)  (368)  (1,082)  (1,081)  (1,450)  (1,449)<br>At 30 April  7,186   7,163   30,055   30,006   37,241   37,169<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
2026 Loan 2031 Loan Total carrying value<br>2025 2024 2025 2024 2025 2024<br>Payable £000  £000  £000  £000  £000  £000<br>Less than 3 months - -  422   422   422   422<br>Between 3 months and 6 months  19   18  - -  19   18<br>Between 6 months and 1 year  7,167  - - -  7,167  -<br> 7,186   18   422   422   7,608   440<br>Between 1 year and 5 years  -   7,145   -   -   -   7,145<br> 7,186   7,163   422   422   7,608   7,585<br>Over 5 years  -   -   29,633   29,584   29,633   29,584<br> 7,186   7,163   30,055   30,006   37,241   37,169<br>**----- End of picture text -----**<br>


To support CAF’s work to grow the impact of charitable donations from the donors we work with, in December 2021, RCB Bonds PLC (RCB) issued the CAF 3.5% bond due in 2031. RCB raised £30.0m from institutional and retail investors and the full amount has been loaned to CAF under the terms of a loan agreement between CAF and RCB. CAF retains the option to request the issue of further bonds. This may be bonds up to a maximum of a further £20.0m, with proceeds to be loaned by RCB to CAF. 

In addition to supporting CAF’s future growth and transformation plans, the proceeds arising in December 2021 were used in part to settle a tender offer under which CAF bought back £12.8m of the previously issued CAF 5% bonds due in 2026. These were issued by RCB in 2016 and raised £20.0m and the full amount raised was loaned to CAF under the terms of a loan agreement between CAF and RCB. 

## Loan payable 2031 

The loan is repayable to RCB in full in December 2031. Interest is payable at a rate of 3.5% per annum. 

## Loan payable 2026 

The loan is repayable to RCB in full in April 2026. Interest is payable at a rate of 5% per annum. 

## Associated costs 

In respect of each of the above loans, bond-issue costs and other costs associated with the advance of the loans, including legal and accountancy fees, have been capitalised and are being amortised over the term of the relevant loan. 

141 **CAF[  |  ]** ANNUAL REPORT 2024/25 

142 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **26. STATEMENT OF FUNDS** 


**----- Start of picture text -----**<br>
Income and  Expenditure  Taxation<br>At 1 May  donations  on charitable  and recognised  At 30 April<br>2024  received  activities  Transfers gains & losses 2025<br>Notes £000  £000  £000  £000  £000  £000<br>Group<br>Unrestricted funds 26.1  98,496   113,186   (94,046)  2,279   (4,737)  115,178<br>Restricted funds 26.2  1,848,467   1,277,403   (1,133,759)  (2,279)  1,130   1,990,962<br> 1,946,963   1,390,589  (1,227,805)  -  (3,607)  2,106,140<br>Charity<br>Unrestricted funds 26.1 66,068   50,545   (46,988)  1,747   (793)  70,579<br>Restricted funds 26.2 1,494,789   458,098   (349,273)  (1,747)  13,956   1,615,823<br> 1,560,857   508,643  (396,261)  -   13,163   1,686,402<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Income and  Expenditure  Taxation<br>At 1 May  donations  on charitable  and recognised  At 30 April<br>2023  received  activities  Transfers gains & losses 2024<br>Notes £000  £000  £000  £000  £000  £000<br>Group<br>Unrestricted funds 26.1  84,051   106,137   (91,363)  3,213   (3,542)  98,496<br>Restricted funds 26.2  1,753,282   1,088,686   (1,064,710)  (3,213)  74,422   1,848,467<br> 1,837,333   1,194,823  (1,156,073)  -   70,880   1,946,963<br>Charity<br>Unrestricted funds 26.1 67,814   43,271   (49,176)  3,213   946   66,068<br>Restricted funds 26.2 1,431,755   362,173   (362,606)  (3,213)  66,680   1,494,789<br> 1,499,569   405,444  (411,782)  -   67,626   1,560,857<br>**----- End of picture text -----**<br>


## 26.1 Unrestricted funds 


**----- Start of picture text -----**<br>
Income and  Expenditure  Taxation<br>At 1 May  donations  on charitable  and recognised  At 30 April<br>2024  received  activities  Transfers gains & losses 2025<br>£000  £000  £000  £000  £000  £000<br>Group<br>General funds  98,496   113,186   (94,046)  2,279   (4,737)  115,178<br> 98,496   113,186  (94,046)  2,279  (4,737)  115,178<br>Charity<br>General funds  66,068   50,545   (46,988)  1,747   (793)  70,579<br> 66,068   50,545   (46,988)  1,747   (793)  70,579<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Income and  Expenditure  Taxation<br>At 1 May  donations  on charitable  and recognised  At 30 April<br>2023  received  activities  Transfers gains & losses 2024<br>£000  £000  £000  £000  £000  £000<br>Group<br>General funds  84,051   106,137   (91,363)  3,213   (3,542)  98,496<br> 84,051   106,137  (91,363)  3,213  (3,542)  98,496<br>Charity<br>General funds  67,814   43,271   (49,176)  3,213   946   66,068<br> 67,814   43,271  (49,176)  3,213   946   66,068<br>**----- End of picture text -----**<br>


**General funds** – comprise accumulated operating surpluses, income from investments, legacies and other gifts received. 

**Transfers from restricted funds to unrestricted funds** – transfers from restricted funds include amounts from dormant donors and from funds for which the original donor or legator has provided no wishes for the distribution of funds upon their death. All transfers from restricted funds are applied for the general charitable purposes of CAF, in support of CAF’s transformation plans. 

143 **CAF[  |  ]** ANNUAL REPORT 2024/25 

144 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **26. STATEMENT OF FUNDS (CONTINUED)** 

## 26.2 Restricted funds 


**----- Start of picture text -----**<br>
Income and  Expenditure  Taxation<br>At 1 May  donations  on charitable  and recognised  At 30 April<br>2024  received  activities  Transfers gains & losses 2025<br>Group £000  £000  £000  £000  £000  £000<br>Growing philanthropy<br>Major donors<br>CAF Charitable Trusts  1,298,880   275,642   (177,913)  (3,519)  14,256   1,407,346<br>Regular givers<br>CAF Charity Accounts  98,186   60,911   (61,588)  (57) -  97,452<br>CAF Give As You Earn Charity Accounts  44,135   39,794   (36,910)  620  -  47,639<br> 142,321   100,705  (98,498)  563   -   145,091<br>Companies<br>CAF Company Accounts  39,582   72,783   (71,068)  6,474   (166)  47,605<br>Charity  1,480,783   449,130  (347,479)  3,518   14,090   1,600,042<br>CAF America  164,796   666,355   (648,875)  (6,657)  (10,060)  165,559<br>CAF American Donor Fund  172,847   140,397   (117,087)  (1,611)  (2,221)  192,325<br>CAF Canada  16,035   20,575   (18,810) -  (545)  17,255<br>CAF America and subsidiaries  353,678   827,327  (784,772) (8,268) (12,826)  375,139<br>Serving charities<br>CAF Venturesome  7,623   169   (685)  (936)  (134)  6,037<br>Financial & donation services  7,623   169  (685) (936) (134)  6,037<br>Community Match Challenge  1  -  (1) - - -<br>CAF discretionary funds  6,382   777   (822)  3,407  -  9,744<br>Grantmaking & sector support  6,383   777  (823)  3,407   -   9,744<br> 1,848,467   1,277,403  (1,133,759) (2,279)  1,130   1,990,962<br>**----- End of picture text -----**<br>


## 26.2 Restricted funds (continued) 


**----- Start of picture text -----**<br>
Income and  Expenditure  Taxation<br>At 1 May  donations  on charitable  and recognised  At 30 April<br>2024  received  activities  Transfers gains & losses 2025<br>Charity £000  £000  £000  £000  £000  £000<br>Growing philanthropy<br>Major donors<br>CAF Charitable Trusts  1,298,880   276,098   (178,080)  (3,808)  14,256   1,407,346<br>Regular givers<br>CAF Charity Accounts  98,186   60,911   (61,588)  (57) -  97,452<br>CAF Give As You Earn Charity Accounts  44,135   39,794   (36,910)  620  -  47,639<br> 142,321   100,705  (98,498)  563   -   145,091<br>Companies<br>CAF Company Accounts  39,582   80,349   (71,187)  (973)  (166)  47,605<br>Serving charities<br>CAF Venturesome<br>Financial & donation services  7,623   169   (685)  (936)  (134)  6,037<br>Grantmaking<br>Community Match Challenge  1  -  (1) - - -<br>CAF discretionary funds  6,382   777   (822)  3,407  -  9,744<br> 6,383   777   (823)  3,407   -   9,744<br> 1,494,789   458,098  (349,273) (1,747)  13,956   1,615,823<br>**----- End of picture text -----**<br>


145 **CAF[  |  ]** ANNUAL REPORT 2024/25 

146 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **26. STATEMENT OF FUNDS (CONTINUED)** 

## 26.2 Restricted funds (continued) 


**----- Start of picture text -----**<br>
Income and  Expenditure<br>At 1 May  donations  on charitable  Recognised  At 30 April<br>2023  received  activities  Transfers gains & losses 2024<br>Group £000  £000  £000  £000  £000  £000<br>Growing philanthropy<br>Major donors<br>CAF Charitable Trusts  1,225,532   177,774   (176,452)  5,360   66,666   1,298,880<br>Regular givers<br>CAF Charity Accounts  104,063   55,152   (62,679)  1,650  -  98,186<br>CAF Give As You Earn Charity Accounts   41,711   38,920   (36,490)  (6) -  44,135<br> 145,774   94,072  (99,169)  1,644   -   142,321<br>Companies<br>CAF Company Accounts  45,417   72,506   (85,019)  6,664   14   39,582<br>Charity  1,416,723   344,352  (360,640)  13,668   66,680   1,480,783<br>CAF America  173,044   569,405   (573,034)  (8,015)  3,396   164,796<br>CAF American Donor Fund  132,453   157,001   (112,355)  (8,509)  4,257   172,847<br>CAF Canada  16,030   16,650   (16,734) -  89   16,035<br>CAF America and subsidiaries  321,527   743,056  (702,123) (16,524)  7,742   353,678<br>Serving charities<br>CAF Venturesome  8,763   400   (369)  (1,171) -  7,623<br>Financial & donation services  8,763   400  (369) (1,171)  -   7,623<br>Community Match Challenge  2   233   (734)  500  -  1<br>CAF discretionary funds  6,267   645   (844)  314  -  6,382<br>Grantmaking & sector support  6,269   878  (1,578)  814   -   6,383<br> 1,753,282   1,088,686  (1,064,710) (3,213)  74,422   1,848,467<br>**----- End of picture text -----**<br>


## 26.2 Restricted funds (continued) 


**----- Start of picture text -----**<br>
Income and  Expenditure<br>At 1 May  donations  on charitable  Recognised  At 30 April<br>2023  received  activities  Transfers gains & losses 2024<br>Charity £000  £000  £000  £000  £000  £000<br>Growing philanthropy<br>Major donors<br>CAF Charitable Trusts  1,225,532   186,425   (176,458)  (3,285)  66,666   1,298,880<br>Regular givers<br>CAF Charity Accounts  104,063   55,152   (62,692)  1,663  -  98,186<br>CAF Give As You Earn Charity Accounts  41,711   38,920   (36,490)  (6) -  44,135<br> 145,774   94,072  (99,182)  1,657   -   142,321<br>Companies<br>CAF Company Accounts  45,417   80,398   (85,019)  (1,228)  14   39,582<br>Serving charities<br>CAF Venturesome<br>Financial & donation services  8,763   400  (369) (1,171)  -   7,623<br>Grantmaking<br>Community Match Challenge  2   233   (734)  500  -  1<br>CAF discretionary funds  6,267   645   (844)  314  -  6,382<br> 6,269   878  (1,578)  814   -   6,383<br> 1,431,755   362,173  (362,606) (3,213)  66,680   1,494,789<br>**----- End of picture text -----**<br>


## Restricted funds comprise: 

- **a.  CAF Charitable Trusts** – consist of capital gifted to CAF and the related income from financial investments. The capital is held in accordance with CAF’s Investment Policy for CAF Charitable Trusts and investment gains or losses are credited or charged to the funds. These funds are expected to be used to make payments to other charities as suggested by the donor. 

      - The boards of these entities review, validate and approve donors’ suggestions for distributions to charities worldwide. 

   - **e.   CAF discretionary funds** – represent funds available to support the sector at Trustees’ discretion. 

   - **f.   Community Match Challenge** – represent funds received by CAF from DCMS in 2020/21 and transferred from CAF Company accounts in 2021/22 in respect of the Community Match Challenge created in response to the Coronavirus pandemic. Grants from the fund were awarded to small charities. 

- **b.   CAF Charity Accounts, CAF Company Accounts and CAF Give As You Earn Charity Accounts** – represent amounts gifted to CAF by individual and corporate donors that are held in accounts until disbursed to charities as suggested by the donor. 

## **Transfers between restricted funds** 

- **c.   CAF Venturesome** – represent funds set aside by CAF donors to complement the funds assigned by the Trustees for CAF Venturesome. 

      - Transfers between restricted funds occur where a donor gives funds into a range of donor advised funds and subsequently requests a transfer between the funds. 

- **d.   CAF America, CAF American Donor Fund** 

   - **and CAF Canada** – represent undistributed donations received by each of these charities. 

147 **CAF[  |  ]** ANNUAL REPORT 2024/25 

148 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **27. CASH FLOW STATEMENT** 

## 27.1 Reconciliation of net income to net cash flow from operating activities 


**----- Start of picture text -----**<br>
Group Charity<br>2025 2024 2025 2024<br>£000  £000  £000 £000<br>Net income before tax  179,061   112,842   129,951   61,339<br>Adjustments for:<br>Depreciation  223   218   214   193<br>Impairment losses -  203  -  203<br>Losses on disposal of tangible fxed assets -  9  -  9<br>Gains on fnancial investments  (16,411)  (73,469)  (17,703)  (67,024)<br>Losses/(gains) on and other revaluations of other investments  116   (722)  112   (752)<br>Amortisation and other revaluations of debt securities  (2,598)  (2,457)  (396)  168<br>Amortisation of capitalised costs of borrowing  70   67   70   67<br>Non-cash transactions:<br>In specie investment transfers and share gifs  (64,688)  (48,935)  (31,253)  (21,114)<br>Gif of property and other assets  (400) -  (400) -<br>Defned beneft pension plan expense  66   247   66   247<br>Interest on long-term loans  1,452   1,450   1,452   1,450<br>Investment income receivable on Trust Funds  (24,499)  (23,782)  (19,642)  (19,345)<br>Decrease in Cash Ratio Deposit with Bank of England -  3,582  - -<br>Increase in loans and advances to customers  (21,210)  (19,767)  (464)  (156)<br>Increase in other assets and prepayments  (34,266)  (12,255)  (34,416)  (4,069)<br>Decrease in amounts due to benefciary charities  (10,082)  (1,477)  (6,718)  (3,370)<br>Increase in other liabilities and accruals  1,814   6,179   1,605   2,406<br>Decrease in donor client balances  (2,347)  (922)  (2,347)  (922)<br>Increase/(decrease) in CAF Bank depositor balances  31,493   (85,439) - -<br>Cash from operations  37,794  (144,428)  20,131  (50,670)<br>- -<br>Corporation tax paid  (3,761)  (5,815)<br>Net cash generated from/(used in) operating activities  34,033  (150,243)  20,131  (50,670)<br>**----- End of picture text -----**<br>


Cash from operations includes interest received of £84.4 million (2024: £73.7 million) in the group and £13.6 million (2024: £6.9 million) in the charity. 

The increase/(decrease) in CAF Bank depositor balances is stated after the addition of interest paid of £20.7 million (2023: £18.4 million). 

## 27.2 Analysis of changes in net debt 


**----- Start of picture text -----**<br>
Foreign  Other<br>At 1 May  exchange  non-cash  At 30 April<br>2024 Cash flows movements changes 2025<br>Group £000 £000 £000 £000 £000<br>Total cash and cash equivalents  1,009,307   (68,316)  (15,654)  -   925,337<br>Loans falling due within one year  (440)  1,450  -  (8,619)  (7,609)<br>Loans falling due afer more than one year  (36,729) - -  7,097   (29,632)<br>Cash and cash equivalents less debt  972,138  (66,866) (15,654) (1,522)  888,096<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Foreign  Other<br>At 1 May  exchange  non-cash  At 30 April<br>2024 Cash flows movements changes 2025<br>Charity £000 £000 £000 £000 £000<br>Total cash and cash equivalents  181,482   (37,313)  (3,698)  -   140,471<br>Loans falling due within one year  (440)  1,450  -  (8,619)  (7,609)<br>Loans falling due afer more than one year  (36,729) - -  7,097   (29,632)<br>Cash and cash equivalents less debt  144,313  (35,863) (3,698) (1,522)  103,230<br>**----- End of picture text -----**<br>


## **28. OPERATING LEASE COMMITMENTS** 

At the balance sheet date, the group and CAF had total commitments under non-cancellable operating leases as set out below: 


**----- Start of picture text -----**<br>
Land & buildings Other Total<br>2025 2024 2025 2024 2025 2024<br>Group £000  £000  £000  £000  £000  £000<br>Operating lease payments falling due:<br>Within one year  443 645  209  244  652  889<br>Between one and fve years  1,781   2,219   157   428   1,938   2,647<br>After more than five years   1,152   1,536   -   -   1,152   1,536<br> 3,376   4,400   366   672   3,742   5,072<br>**----- End of picture text -----**<br>


The amounts charged to the SOFA totalled £0.6m (2024: £0.7m) in respect of land and buildings and £0.4m (2024: £0.4m) in respect of other assets. 

149 **CAF[  |  ]** ANNUAL REPORT 2024/25 

150 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **28. OPERATING LEASE COMMITMENTS (CONTINUED)** 


**----- Start of picture text -----**<br>
Land & buildings Other Total<br>2025 2024 2025 2024 2025 2024<br>Charity £000  £000  £000  £000  £000  £000<br>Operating lease payments falling due:<br>Within one year  213  407   209  244   422  651<br>Between one and fve years  1,384   1,552   157   428   1,541   1,980<br>After more than five years   1,152   1,536   -   -   1,152   1,536<br> 2,749   3,495   366   672   3,115   4,167<br>**----- End of picture text -----**<br>


The amounts charged to the SOFA totalled £0.2m (2024: £0.4m) in respect of land and buildings and £0.4m (2024: £0.4m) in respect of other assets 

## **29. FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES** 

At the balance sheet date, the group was committed to the following: 


**----- Start of picture text -----**<br>
2025 2024<br>£000  £000<br>CAF Venturesome loans  913   1,507<br>CAF Venturesome grants  57   92<br>Charity  970   1,599<br>CAF Bank:<br>Commitments to customers  75,445   68,369<br>Group  76,415   69,968<br>**----- End of picture text -----**<br>


CAF Venturesome loans and grants to charities 

CAF contingent liabilities 

At the balance sheet date, CAF Venturesome was committed to provide concessionary loans and grants to charities, subject to certain conditions being met. No liability has been recorded in the balance sheet for these loans or grants. The commitments become due or expire within one year (if the charity no longer needs the funding). 

A disagreement between CAF and another organisation in respect of a long-standing contract remains unresolved. While there have been some developments in the period, there is uncertainty as to the outcome and while an amount cannot be reasonably estimated, there may be a possible outflow of unrestricted funds at a time that cannot currently be determined. The degree of uncertainty at this time means that it is not practicable to estimate its financial effect. 

## CAF Bank commitments to customers 

At the balance sheet date, CAF Bank had commitments comprising amounts yet to be drawn under loan or overdraft agreements. 

## **30. CONTINGENT ASSETS** 

Given that the funding position remained favourable, in January 2023, the Trustees of CAF agreed with the scheme trustee that a buy-in with an insurer may be considered. After receiving a quote that was considered affordable, and following receipt of the necessary advice, the trustee entered into a buy-in policy with Just Retirement Limited on 27 June 2024. To facilitate this transaction, CAF injected £774k into the scheme. This policy covered all remaining uninsured liabilities of the Scheme. The scheme trustee is now working with Just Retirement Limited to conclude a buy-out, with each member to be issued with their own individual policy. This process is anticipated to complete before the end of the calendar year. 

At the balance sheet date, the charity had been notified of a number of legacies for which probate had not yet been granted or other factors indicated that these legacies should not be recognised as income. The aggregate value of those legacies was £33.7m for the group and the Charity (2024: £28.8m for the group and the Charity). 

## **31. PENSION OBLIGATIONS** 

- **a.  Hargreaves Lansdown** The Hargreaves Lansdown scheme is a defined contribution self-invested group pension. 

Upon auto-enrolment, the initial employee contribution rate is currently 2.67% of basic salary and CAF contributes 5.33%. After three months service, employees can contribute up to 10% of basic salary, with CAF contributing a maximum of 11.33%. 

Consequently, it is unlikely that the net defined benefit asset, as determined by the actuary as at 30 April 2025 in accordance with FRS 102, will be realised by CAF and the net defined benefit asset has not been recognised in the balance sheet. 

- **b.  The Charities Aid Foundation Pension Scheme** 

For the purposes of these financial statements and reporting in accordance with FRS 102, the scheme actuary has carried out calculations by projecting forwards the results of the triennial valuation of the scheme as at 1 May 2022, and then making appropriate adjustments for material known experience and for differences in assumptions. 

- The Charities Aid Foundation Pension Scheme is a defined benefit scheme established on 15 September 2015 and is closed to new employees and further benefit accrual. The Charities Aid Foundation Pension Scheme was established solely to receive a transfer from the Growth Plan, a multiemployer section of The Pensions Trust in which CAF was a participating employer. 

The results of the actuary’s estimate of the scheme’s assets and liabilities at 30 April 2025, based on assumptions used for FRS 102 are as follows: 

The most recent triennial valuation was performed by the scheme actuary as at 1 May 2022. The assets at the effective date were sufficient to cover around 103% of the scheme’s technical provisions. 

i) Amounts recognised in the balance sheet: 


**----- Start of picture text -----**<br>
2025 2024<br>£000  £000<br>Fair value of assets  11,265   12,851<br>Defned beneft obligation  (11,074)  (11,880)<br>Surplus  191   971<br>Efect of asset limit  (191)  (971)<br>Net asset  -   -<br>**----- End of picture text -----**<br>


151 **CAF[  |  ]** ANNUAL REPORT 2024/25 

152 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **31. PENSION OBLIGATIONS (CONTINUED)** 

## ii) Amounts included in the SOFA under FRS 102: 


**----- Start of picture text -----**<br>
2025 2024<br>£000  £000<br>Scheme expenses  66   247<br>Interest income on assets  (659)  (640)<br>Interest cost on defned beneft obligation  591   583<br>Interest on efect of asset limit  68   57<br>Total expense recognised in the SOFA  66   247<br>**----- End of picture text -----**<br>


iii) Movement in the net defined benefit asset/liability: 


**----- Start of picture text -----**<br>
2025 2024<br>£000  £000<br>Net defned beneft asset as at 1 May - -<br>Pension cost in SOFA  (66)  (247)<br>Employer contributions  774  -<br>Actuarial losses  (1,556)  (162)<br>Remeasurement of asset limit  848   409<br>Net defined benefit asset at 30 April  -   -<br>**----- End of picture text -----**<br>


## vi) Change in asset limit 


**----- Start of picture text -----**<br>
2025 2024<br>£000 £000<br>Opening efect of the asset limit  971   1,323<br>Interest on efect of the asset limit  68   57<br>Remeasurement of the asset limit  (848)  (409)<br>Asset not recognised at 30 April   191   971<br>**----- End of picture text -----**<br>


## vii) Major categories of the scheme assets as a percentage of total assets are as follows: 


**----- Start of picture text -----**<br>
2025 2024<br>Allocation  Allocation<br>Annuity policies 98% 13%<br>Corporate bonds - 37%<br>Government bonds - 49%<br>Cash 2% 1%<br>100% 100%<br>**----- End of picture text -----**<br>


The Scheme does not invest directly in property occupied by the employer or in financial securities issued by the employer. 

iv) Movement in present value of the defined benefit obligation: 


**----- Start of picture text -----**<br>
2025 2024<br>£000 £000<br>Defned beneft obligation at 1 May  11,880   12,401<br>Interest on obligation  591   583<br>Actuarial (gains)/losses  (831)  (580)<br>Benefts paid  (566)  (524)<br>Defined benefit obligation at 30 April  11,074   11,880<br>**----- End of picture text -----**<br>


## v) Movement in fair value of scheme assets: 


**----- Start of picture text -----**<br>
2025 2024<br>£000 £000<br>Fair value of the scheme assets at 1 May  12,851   13,724<br>Interest on scheme assets  659   640<br>Employer's contributions  774  -<br>Actuarial experience losses  (2,387)  (742)<br>Scheme expenses  (66)  (247)<br>Benefts paid  (566)  (524)<br>Fair value of scheme assets at 30 April  11,265   12,851<br>Actual return on Scheme assets  (1,728)  (102)<br>**----- End of picture text -----**<br>


153 **CAF[  |  ]** ANNUAL REPORT 2024/25 

154 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **31. PENSION OBLIGATIONS (CONTINUED)** 

## **32. TRANSACTIONS WITH RELATED PARTIES** 

Other than the matters detailed below, none of the Trustees nor any connected persons had a material or beneficial interest in any contract or undertaking with CAF, other than in the ordinary course of business, nor in the shares of its subsidiary companies. 

viii) Principal assumptions at the balance sheet date 

|**2025**|**2024**|
|---|---|
|||
|Discount rate<br>5.6% pa||
||5.1% pa|
|Infation measured by<br>Retail Price Index (RPI)<br>3.0% pa|3.3% pa|
|<br> <br>Infation measured by<br>Consumer Price Index (CPI)<br>2.6% pa|<br>2.9% pa|
|Pension increases in payment:<br>CPI capped at 5% pa<br>2.6% pa||
||2.8% pa|
|CPI capped at 2.5% pa<br>1.8% pa|1.9% pa|
|Cash commutation<br>Members are assumed not to<br>exchange any pension sum for a<br>cash at retirement|50% of members assumed to<br>exchange 25% of their pension sum<br>for a cash sum|
|Base mortality table and projection basis<br>90% of S3PXA tables projected<br>using CMI 2023 core projection<br>model and a long-term<br>improvement rate of 1.5% p.a. for<br>males and 1.0%p.a. for females|90% of S3PXA tables projected<br>using CMI 2023 core projection<br>model and a long-term<br>improvement rate of 1.5% p.a. for<br>males and 1.0%p.a. for females|
|Retirement age<br>Members assumed to take all<br>benefts at their Normal Retirement<br>Age under Scheme Rules|Members assumed to take all<br>benefts at their Normal Retirement<br>Age under Scheme Rules|
|Proportion married<br>100% of members who have chosen<br>spouses’ benefts are married at<br>retirement or earlier death|100% of members who have chosen<br>spouses’ benefts are married at<br>retirement or earlier death|
|Discretionaryincreases<br>None|None|
|Life expectancyof a male currentlyaged 65<br>87.4yrs|87.3yrs|
|Life expectancyof a male currentlyaged 45<br>89.0yrs|88.9yrs|
|Life expectancyof a female currentlyaged 65<br>89.5yrs|89.5yrs|
|Life expectancyof a female currentlyaged 45<br>90.6yrs|90.6yrs|




**----- Start of picture text -----**<br>
Due to/(by) CAF<br>Transactions in SOFA<br>at balance sheet date<br>2025 2024 2025 2024<br>Unrestricted funds £000 £000 £000 £000<br>Donations receivable in CAF<br>From CAF American Donor Fund  2,713   2,500  - -<br>From CAF Financial Solutions Limited  73  -  73  -<br>Fee income receivable in CAF<br>From CAF America  7  -  7  -<br>From CAF American Donor Fund  1,109   1,048   97   93<br>From CAF Bank Limited  6,673   5,244   1,853   441<br>From CAF Financial Solutions Limited  398   509   400   510<br>Interest receivable in CAF<br>From CAF Bank Limited  460   966  - -<br>Direct costs recharged by CAF<br>To CAF America  148  - - -<br>To CAF American Donor Fund  544   481   55   37<br>To CAF Bank Limited  13,949   9,814   1,328   913<br>To CAF Financial Solutions Limited  147   190   11   11<br>Costs chargeable to CAF<br>From CAF America   (39)  (130)  (22)  (130)<br>Sub-ordinated debt held by CAF<br>Owed by CAF Bank Limited - -  5,000   5,000<br> 26,182   20,622   8,802   6,875<br>**----- End of picture text -----**<br>


|Discretionaryincreases<br>Life expectancyof a male currentlyaged 65<br>Life expectancyof a male currentlyaged 45<br>Life expectancyof a female currentlyaged 65||None<br>87.4yrs<br>89.0yrs<br>89.5yrs||None<br>87.3yrs<br>88.9yrs<br>89.5yrs|||<br> <br>**26,182**<br>**20,622**|<br> <br>**26,182**<br>**20,622**||,<br>,<br>**8,802**<br>**6,875**|,<br>,<br>**8,802**<br>**6,875**|
|---|---|---|---|---|---|---|---|---|---|---|---|
|Life expectancyof a female currentlyaged 45||90.6yrs||90.6yrs|||**Transactions in SOFA**|||**Due to/(by) CAF**<br>**at balance sheet date**||
||||||||2025|2024||2025|2024|
|||||||Restricted funds|£000|£000||£000|£000|
|ix) Sensitivity analysis||||||Donations receivable in CAF<br>From CAF America|7,566|7,892||-|-|
|||**Change to defned beneft**||||From CAF American Donor Fund|456|8,651||-|-|
|||**obligation as at 30 April 2025**<br>£000||||Donations payable by CAF<br>To CAF America<br>To CAF American Donor Fund|(280)<br>(6)|-<br>(19)||-<br>-|-<br>-|
|Decrease discount rate by0.1%|||105||||**7,736**|**16,524**||**-**|**-**|
|Increase assumed rate of future RPI and CPI infation by 0.25%|||91|||||||||
|Increase assumed life expectancies byoneyear|||287|||**33. EX-GRATIA PAYMENTS AND WAIVERS**||||||
|Initial addition (A factor) in mortality projections of 0.5%|||135|||During the year, CAF had two (2024: two) ex-gratia waivers authorised by the Charity||||Commission for England||
|Decrease assumedproportion married by10%|||(16)|||& Wales Both were in resect of a waived entitlem|nt to income fro|m a leac due t||CAF and totalle|£20000|



During the year, CAF had two (2024: two) ex-gratia waivers authorised by the Charity Commission for England & Wales. Both were in respect of a waived entitlement to income from a legacy due to CAF and totalled £20,000 (2024: £14,089). 

## **34. POST BALANCE SHEET EVENTS** 

There have been no events since the balance sheet date that are required to be adjusted for, or to be disclosed other than those disclosed in notes. 

155 **CAF[  |  ]** ANNUAL REPORT 2024/25 

156 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

## **35. CAF BANK FINANCIAL INSTRUMENTS AND RISK MANAGEMENT** 

CAF Bank is a wholly owned subsidiary of CAF and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

The group’s risk management framework and principal risks, including those applicable to CAF Bank, are set out in the Risk Management Report within the Trustees’ Report. CAF Bank’s exposure to its principal risks, which are those associated with holding financial instruments, is further described below. 

## 35.1 Credit risk 

The following tables set out CAF Bank’s principal financial instruments from which credit risk arises. 

## Lending 

Other than the matters detailed below, none of the Trustees nor any connected persons had a material or beneficial interest in any contract or undertaking with CAF, other than in the ordinary course of business, nor in the shares of its subsidiary companies. 

Loans, overdrafts and BACS facilities are subject to regular monitoring of loan performance and individual annual review. Administration of the loan book is outsourced to BCM Mortgage Services Ltd, which provides regular management information on a loan by loan and aggregated basis. A provision of £1.2m has been made at 30 April 2025 reflecting losses that may have been incurred but not yet identified (2024: £1.8m) and £1.0m has been provided for specific loan provisions (2024: £0.6m). No overdrafts were written off during the year (2024: none). 

One loan was in arrears at 30 April 2025 (2024: one). 


**----- Start of picture text -----**<br>
2025 2024<br> Book Value   Market Value   Book Value   Market Value<br>Treasury assets by class:  £000   £000   £000   £000<br>Listed:<br>Multilateral fnancial institutions  563,083   555,768   511,053   489,173<br>Fixed coupon corporate bonds  59,570   59,347   49,368   47,900<br>Floating rate corporate bonds  60,130   60,133   76,955   76,853<br>Debt securities  682,783   675,248   637,376   613,926<br>Balances at Bank of England  610,671   610,671   630,526   630,526<br>Loans and advances to banks  4,214   4,214   23,998   23,998<br> 1,297,668   1,290,133   1,291,900   1,268,450<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
2025 2024<br>Treasury assets by credit rating:<br> Book Value   Book Value<br>Category (Fitch equivalent credit rating)  £000   % of Book   £000   % of Book<br>UK Government  610,671  47.06%  630,526  48.81%<br>AAA  662,766  51.08%  617,350  47.78%<br>AA  20,017  1.54%  20,025  1.55%<br>AA-  2,077  0.16%  21,725  1.68%<br>A+  2,137  0.16%  2,274  0.18%<br> 1,297,668  100.00%  1,291,900  100.00%<br>**----- End of picture text -----**<br>


## Secured and unsecured lending 


**----- Start of picture text -----**<br>
2025 2024<br>£000  £000<br>Gross loans and advances to customers  223,363   201,979<br>Undrawn overdraft and loan commitments  59,886   52,831<br> 283,249   254,810<br>Amounts included within the above:<br>Secured on property  283,249   254,810<br> 283,249   254,810<br>**----- End of picture text -----**<br>


As at 30 April 2025, the average loan to value ratio across the lending portfolio was 52% (2024: 53%). 

## 35.2 Liquidity and funding risk 

CAF Bank holds liquidity buffer eligible assets of £1.23bn (2024: £1.18bn), excluding assets pledged as security under repurchase agreements. Liquidity buffer assets comprise amounts held in the Bank of England Reserve Account and investments in Multilateral Development Banks, UK Gilts and Treasury Bills. 

## 35.3 Market and interest rate risk 

The following tables set out details of the maturity and duration of financial instruments held by CAF Bank. 

Non-maturity (on-demand) deposits are behaviourally adjusted as follows: 


**----- Start of picture text -----**<br>
2025 2024<br>Treasury assets by exposure value:<br>UK Government & multilateral fnancial institutions 91% 90%<br>Financial & non-fnancial institutions up to £11m 5% 6%<br>Financial & non-fnancial institutions £11m - £21m  4% 4%<br>100% 100%<br>**----- End of picture text -----**<br>


|Current accounts||
|---|---|
|£0 - £249,999<br>2 - 3 years||
|£250,000 - £999,999<br>1 - 2years||
|Over £1m<br>6 - 12 months||



157 **CAF[  |  ]** ANNUAL REPORT 2024/25 

158 



**NOTES TO THE FINANCIAL STATEMENTS  |** FOR THE YEAR ENDED 30 APRIL 2025 

Assets and liabilities analysed by interest rate pricing time periods: 


**----- Start of picture text -----**<br>
 Next   Up to 3  3 months to  6 months   1 year to  Over 5  Other<br>day  months  6 months to 1 year 5 years years  items Total<br>At 30 April 2025  £000   £000   £000   £000   £000   £000   £000   £000<br>Assets<br>Balances at Bank of England  610,671   -   -   -   -   -   -   610,671<br>Loans and advances to banks  4,214   -   -   -   -   -   -   4,214<br>Loans and advances to customers  180,537   -   1,254   4,374   31,390   1,546   -   219,101<br>Debt securities  -  139,236   10,004   53,346   479,199   -   998   682,783<br>Prepayments and accrued income  -   -   -   -   -   -   11,455   11,455<br>Intangible fixed assets  -   -   -   -   -   -   15,908   15,908<br> 795,422  139,236   11,258   57,720   510,589   1,546   28,361  1,544,132<br>Liabilities<br>Customer accounts  818,153   -   -   87,093   545,656   -   24  1,450,926<br>Other liabilities  -   -   5,000   -   -   -   11,967   16,967<br>Shareholders’ funds  -   -   -   -   -   -   76,239   76,239<br> 818,153   -   5,000   87,093   545,656   -   88,230  1,544,132<br>Interest rate sensitivity gap (22,731)  139,236   6,258  (29,373) (35,067)  1,546  (59,869)  -<br>Impact of 2% change in interest rates  -   297   45  (420)  967   184   -   1,073<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
Up to 3  3 months to  6 months   1 year to  Over 5  Other<br>Next day  months  6 months to 1 year 5 years years  items Total<br>At 30 April 2024  £000   £000   £000   £000   £000   £000   £000   £000<br>Assets<br>Balances at Bank of England  630,526  - - - - - -  630,526<br>Loans and advances to banks  23,997  - - - - - -  23,997<br>Loans and advances to customers  162,926  -  410   80   32,702   1,584  -  197,702<br>Debt securities -  148,884  -  76,555   402,525   8,581   831   637,376<br>Prepayments and accrued income - - - - - -  10,566   10,566<br>Intangible fixed assets  -   -   -   -   -   -   10,758   10,758<br> 817,449  148,884   410   76,635   435,227   10,165   22,155  1,510,925<br>Liabilities<br>Customer accounts  731,832  - -  109,788   577,803  -  10  1,419,433<br>Repurchase agreements  13,852  - - - - - -  13,852<br>Other liabilities - -  5,000  - - -  7,542   12,542<br>Shareholders’ funds - - - - - -  65,098   65,098<br> 745,684   -  5,000   109,788   577,803   -   72,650  1,510,925<br>Interest rate sensitivity gap  71,765  148,884  (4,590) (33,153) (142,576)  10,165  (50,495)  -<br>Impact of 2% change in interest rates  -   538  (33) (465) (706)  976   -   310<br>**----- End of picture text -----**<br>


## Sensitivity Analysis 

## 35.4 Capital management 

CAF Bank is exposed to interest rate risk arising from fluctuations in market interest rates, which impacts its net interest income (NII). Interest rate risk is managed within approved risk limits and monitored regularly. 

CAF Bank aims at all times to maintain an adequate level of capital to support the development of its business and to meet regulatory capital requirements. 

Business and capital plans are drawn up annually, covering a three year period and approved by CAF Bank’s Board. The plans ensure that adequate levels of capital are maintained by CAF Bank to support its strategy. This is integrated with CAF Bank’s annual planning process. 

The following table illustrates the estimated impact on CAF Bank’s NII for the next 12 months arising from hypothetical parallel shifts in interest rates, assuming all other variables remain constant. 

||Impact on|
|---|---|
||CAF Bank net interest|
|Interest Rate Change|income (£000)|
|+ 100 basis points|2,624|
|– 100 basis points|(2,624)|



The capital plan takes the following into account: 

- current and anticipated future regulatory capital requirements; 

- increases in demand for capital due to business development, including planned lending growth; 

- potential demand for capital from market shocks or stresses; 

The sensitivity analysis is based on CAF Bank’s interest rate risk profile as at the reporting date. The impact reflects changes in interest rates on interest-earning assets and interest-bearing liabilities, considering the repricing timing and volume. It does not take into account management actions or changes in market conditions subsequent to the reporting date. 

- available supply of capital and capital raising options; 

- achieving a minimum required leverage ratio; and 

- internal controls and governance for managing CAF Bank’s risk, operations and capital. 

CAF Bank undertakes a detailed capital adequacy assessment to support its capital requirements. Each material risk is assessed, relevant mitigants considered, and appropriate levels of capital determined. The capital adequacy assessment is a key part of CAF Bank’s risk and planning framework and a minimum capital requirement is assessed and agreed with the PRA. CAF Bank’s internal capital adequacy assessment is regularly updated. 

CAF Bank’s capital resources comprise: 


**----- Start of picture text -----**<br>
2025 2024<br>£000 £000<br>Ordinary share capital  40,319   40,319<br>Profit and loss account  35,920   24,779<br> 76,239   65,098<br>**----- End of picture text -----**<br>


159 **CAF[  |  ]** ANNUAL REPORT 2024/25 

160 



**CAF ANNUAL REPORT** 

## Board of Trustees 

**SIR JAMES LEIGH-PEMBERTON, CVO** Chair 

**RT HON SIR ERNEST RYDER** TD, PC, DL Vice Chair 

**DR PRIYA SINGH** Chair, NCVO 

## **MEREDITH NILES** 

## **MICHAEL ASHLEY** 

## **SABINE EVERAET** 

## **OWEN PRINGLE** 

## **ROBERT VOGTLE** 

## **DAVID SHALDERS** 

## **SIR EDWARD BRAHAM** 

(Appointed February 2025) Chair-Elect 

## **JANET POPE** 

(Resigned September 2024) 

## **CYRUS ARDALAN** 

(Retired November 2024) 

## **ROBERT DENCH** 

(Resigned February 2025) 

## Independent auditors 

PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT 

Executive Committee at the date of signing 

## **NEIL HESLOP, OBE** 

Group Chief Executive Officer 

## **LIZ RYLATT FCA** 

Group Chief Financial Officer 

## **MARK GREER** 

Managing Director, Charities Aid Foundation in the United Kingdom 

## **JESSIE KRAFFT** 

President and CEO, Charities Aid Foundation in North America 

## **BARNABY DAVIS** 

Interim Chief Information Officer 

## **NORA SAKAAN** 

Chief Marketing Officer 

## **DAVID JESSOP** 

Chief People Officer 

## **KATE NEWMAN** 

General Counsel and Executive Director Governance 

## **ALISON TAYLOR** 

CEO, CAF Bank Limited and CAF Financial Solutions LImited 

## Principal bankers 

National Westminster Bank plc 94 Moorgate London EC2M 6UR 


**----- Start of picture text -----**<br>
Charities Aid Foundation<br>25 Kings Hill Avenue<br>Kings Hill<br>West Malling<br>Kent ME19 4TA<br>T 03000 123 000<br>E enquiries@cafonline.org<br>W  www.cafonline.org<br>Registered Charity Number 268369<br>162<br>**----- End of picture text -----**<br>


161 **CAF[  |  ]** ANNUAL REPORT 2024/25 



Registered Charity Number 268369 


Charities Aid Foundation. Visit www.cafonline.org to find out more