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2021-12-31-accounts

The Young Foundation

Report and financial statements

31 December 2021

Company Limited by Guarantee Registration Number 01319183 (England and Wales)

Charity Registration Number 274345 (England and Wales)

Contents

Reports

Reports
Reference and administrative information 3
Chair’s Report 7
Chief Executive’s Report 8
Trustees’ report 9
Independent auditor’s report 20
Financial statements
Statement of financial activities 24
Balance sheet 25
Statement of cash flows 26
Principal accounting policies 27
Notes to the financial statements 32

The Young Foundation 2

Reference and administrative information

The Young Foundation is a company limited by guarantee and a registered charity governed by its memorandum and articles of association.

It is a Research Councils UK recognised independent research organisation (IRO)

Trustees Dame Julie Mellor (resigned 13 July 2022,
Chair)
Vidhya Alakeson (resigned 11 February
2022, Chair of Nominations & Governance
Committees)
Kersten England
Peter Gladwell (Chair of Property
Committee)
Stephen Jacobs
Henry Kippin
Abigail Rotheroe (resigned 27 January
2022)
Jonathan Sobczyk-Boddington (Chair of
Resources, Risk and Assurance
Committee)
William Tanner (resigned 24 August 2021)
Gareth Williams (Chair of Nominations
and Governance Committee from 11
February 2022)
Chief Executive Helen Goulden
Company registration number 01319183
Charity registration number 274345
Registered office Toynbee Hall
28 Commercial Street
London
E1 6LS
Independent auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers HSBC
465 Bethnal Green Road
London
E2 9QW

The Young Foundation 3

Reference and administrative information

CCLA Senator House 85 Queen Victoria Street London EC4V 4ET Solicitors Bates Wells 10 Queen Street Place London EC4R 1BE

The Young Foundation 4

Reference and administrative information

The Young Foundation’s mission is to enable connected, more sustainable and stronger communities across the UK. We do this through amplifying people’s stories and lived experiences and use this as a spur to drive locally-led and owned community action.

We use what we learn across different communities to spot national patterns of need and opportunity, working with partners to support innovations to deliver social impact at a national scale.

We seek to build a shared body of evidence, knowledge and insight about how best to strengthen and empower communities.

We were founded by the great social scientist and innovator Michael Young and originally called the Institute of Community Studies. We became the Young Foundation after Michael’s death in 2002. Together we have created and supported over 80 organisations including: Which?, The Open University , Language Line , Economic and Social Research Council , Social Innovation Exchange , School for Social Entrepreneurs , UpRising and Studio Schools Trust.

OUR FUNDERS AND PARTNERS The British Academy Local Trust The Cabinet Office London Borough of Bexley Community Land Trusts Network London Borough of Hackney Darlington Borough Council London Borough of Tower Hamlets

Department for Business, Energy and Industrial Strategy Department for Culture Media and Sport Department for Work and Pensions European Union Friends Provident Greater London Authority

Guild HE Health & Safety Executive Heritage Lottery Fund Kings College London Koreo Local Government Association

National Association of Independent Schools and Non-Maintained Special Schools (NASS)

National Citizen Service National Lottery National Lottery Community Fund Nuffield Foundation Paul Hamlyn Foundation Power To Change Queen Mary’s University London Shine Trust Social Research Association SPEAR London

UBS

The Young Foundation 5

Reference and administrative information

UK Research and Innovation

UPP Foundation Wales Centre for Public Policy Wellcome Trust West Midlands Combined Authority Youth Endowment Fund Youth Futures Foundation

The Young Foundation 6

Chief Executive’s Report Year to 31 December 2021

CHAIR’S REPORT

I write this as the newly appointed Chair of The Young Foundation and want to start by paying tribute to the work of our outgoing Chair, Dame Julie Mellor. This report sets out some of the key achievements over the course of 2021, however this is just one chapter in a much longer story, where Julie has led The Young Foundation on a remarkable journey which has turned an organisation that was facing significant challenges into a sustainable, focused organisation with a distinctive contribution to make.

I believe our work has never been more important. Families, neighbourhoods and communities are working through the long tail of the pandemic - lost education for children, bereavement and ill health for many - and facing into a time of continuing upheaval and difficulty marked by the cost of living crisis, conflict in Europe and the war in Ukraine and a deepening climate emergency.

This is a moment in which the agency, the power, of communities working as full partners with the public and private sectors and our democratic representatives will be fundamental to our nations resilience and well-being. The work of the Young Foundation in this space - in research, thought leadership, innovative methodologies, tools and frameworks for capacity building are in support of that equal partnership and wider community well-being.

The Young Foundation has demonstrated some significant successes in 2021 which build directly on that vision and sense of purpose. Through our Institute for Community Studies, we have directly supported higher education institutions and funders of research and innovation to leverage their considerable power and potential to build agency, confidence and capacity for more people to become involved in research for social change. Our national peer research network has gone from strength to strength, bringing local government and other institutions far closer to the experiences of those they serve. At the same time, we have been building community leadership capabilities, and building innovative models for centring the community in local place-making strategies. Working across all sectors, in many different parts of the UK, we are bringing people and power together.

As we move through 2022 and beyond, many things await us. Some may be predictable, some not. In strengthening the bond between and across communities, we build resilience and opportunities for collaboration and much needed innovation. The Young Foundation is increasingly well-placed to leverage its considerable legacy and capabilities work in the service of that agenda and I look forward to leading that mission as its new Chair.

Kersten England Chair

The Young Foundation 7

Chief Executive’s Report Year to 31 December 2021

CHIEF EXECUTIVE’S REPORT

It is with a strong sense of pride in the team at The Young Foundation that we present our 2021 annual report setting out our performance and achievements. Despite the continued stresses and strains of the pandemic, now being usurped by a very different set of social, economic and geo-political crises, the impact of The Young Foundation grew in 2021, underpinned by a vision and mission to understand, involve and innovate with local communities to drive social change.

Alongside increasing our income and posting an operating surplus for this year, we have delivered a strong and cohesive set of projects, as well as growing the infrastructure necessary to operate a far larger scale in years to come.

It is clear that through our use of the Kickstart Scheme, the growth of our national peer research network, and our work with funders across the private, public, higher education and philanthropic sectors, we are proving that there are sustained ways of bringing more people into civic, research and innovation activities from which they would otherwise be excluded. What this means in more vibrant terms is that we’re building curiosity, empathy, confidence, agency for more people to explore the world around them and how they can use those insights to take action, whatever the context, whatever their starting point. That feels like an important agenda, of increasing importance.

We continue to be active on socially relevant agendas, including the ongoing and long-term impact of the pandemic on communities, the climate crisis and critical need for adaptation and a just transition to Net Zero and supporting young people to navigate the very challenging world they are inheriting, to name a few. It is clear that the approaches, techniques and models we use are relevant to many different contexts and many different people and communities. And there is strong evidence that this work will continue to grow in 2022, as the investment into our innovation and external affairs capacity begins to bear fruit.

I want to thank the team, the dedication of our trustees, particularly our outgoing chair Dame Julie Mellor and the continued trust and funding from our partners, who have made all that work possible.

Helen Goulden

Chief Executive

The Young Foundation 8

Trustees’ report Year ended 31 December 2021

TRUSTEES’ ANNUAL REPORT

The trustees (who are also directors of the charitable company for the purposes of the Companies Act) present their annual report together with audited financial statements of The Young Foundation (the charitable company) for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out on pages 27 to 31 of the attached accounts and comply with the charity’s Memorandum and Articles of Association, the Charities Act 2011 and 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 United Kingdom and Republic of Ireland (FRS 102), effective from accounting periods commencing 1 January 2015 or later.

OBJECTIVES AND RELEVANT POLICIES

Objectives and activities for the public benefit

The objects of the Young Foundation as set out in its Memorandum of Association are:

The objects are considered by the trustees to be for the public benefit as defined in the Charity Commission’s guidance on public benefit. In order to achieve these objectives, the Young Foundation undertakes research to identify and understand social needs and then develops practical initiatives and institutions to address those, combining ideas, analysis and practical action.

Our research work also permeates all our programmes. We are a Research Councils UK recognised independent research organisation (IRO).

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Trustees’ report Year ended 31 December 2021

ACHIEVEMENTS AND PERFORMANCE

2021 was a successful year for The Young Foundation on many levels. This is partly evidenced by exceeding our financial income targets which must be regarded as a major achievement, given the posting of substantial deficits for over a decade. However, financial sustainability is not the end goal, and The Young Foundation is proud of the range and scale of the impact we achieved in 2021, laying even stronger foundations for growth in 2022. The summary of our performance and achievements is set out in alignment with our four strategic goals, which state that if we are to work towards a fairer future we need to:

DEMONSTRATING THE VALUE OF WORKING DIFFERENTLY WITH PEOPLE & COMMUNITIES

We know that business, government, philanthropy and the social sector are increasingly motivated to work differently, in ways that recognise the need for more participatory, community-involving strategies and practice. We know organisations are capable of articulating the change they want to see, in terms of outcomes. The challenge is one of implementation and understanding how to begin, undertake and sustain different ways of working which challenge traditional power dynamics and organisational boundaries, are more inclusive and relational in nature. Part of that is about having the tools, models and approaches to experiment and learn from. Part of it is about demonstrating the art of the possible; developing projects which inspire and influence others.

Throughout 2021, we incubated and delivered a range of projects which sought to do just that, many of which continue into 2022 and beyond. Two examples are highlighted in this report: The Climate Challenge Cup and our utilisation of the Government’s Kickstart Scheme.

The Climate Challenge Cup

Supported by BEIS, UKRI Science & Innovation Network, Foreign and Commonwealth Development Office, The Earth Institute, Glasgow Council, Glasgow University and the Metrolab network, The Young Foundation designed and delivered a major international competition to show the best examples of collaborations across universities, civic institutions and communities adapting to climate change and transitioning to net zero. The twelve shortlisted collaborations showed that local action, local political commitment, farsighted vision and pioneering scientific innovation are capable of transforming local regions and transforming whole industries.

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Trustees’ report Year ended 31 December 2021

ACHIEVEMENTS AND PERFORMANCE (continued)

DEMONSTRATING THE VALUE OF WORKING DIFFERENTLY WITH PEOPLE &

COMMUNITIES (continued)

The Climate Challenge Cup (continued)

Winners included a project in South Chicago, where a community-led, multi-disciplinary team have designed a nine acre Renewable Energy and Urban Farm Campus and across the Appalachian region, we showcased ‘The Marshall Plan for Middle America’, piloting a wholesystem approach to transitioning to a net zero economy.

In November 2021, as part of the official COP26 programme, The Young Foundation hosted a range of US and UK changemakers demonstrating the value and impact of involving communities in climate innovation. You can watch the video here.

Kickstart your research career

In 2021, The Young Foundation was accepted as a direct employer through the Kickstart Scheme, enabling us to employ three cohorts of people on Universal Credit and train them as community/peer researchers. With support from Mohn Westlake Foundation and Youth Futures Foundation, the young people developed their skills and competencies in a range of areas which will prepare them for further work. This included highly transferable work-place skills and research practice, as well as valuable competencies such as creativity, communication and collaborative problem solving.

The skills our Kickstart employees learned are relevant to a very wide range of jobs, but we hope that some may choose research as their path forward. Indeed, we were able to offer ongoing permanent employment to two of the cohort after their six month placement. As UKRI embarks on a mission to ensure that research and innovation is diverse, inclusive and an integral part of UK society, our use of the Kickstart Scheme demonstrated an entirely new pathway for young people to get involved in research and innovation practice. You can hear directly from our Kickstart researchers here & here. In 2022, we will continue to innovate and act creatively to ‘widen the gate’ into socially-impactful research activities.

This supports our report into diversity and inclusion in social research: Far to Go, which showed the extent of the challenge we have to collectively build a social research sector. The report is discomforting and important reading. It sets out the findings from the first comprehensive survey of nearly 1,000 views and experiences of UK social researchers. The report makes five overarching recommendations, calling on all organisations and individuals working in the social research sector to actively engage and respond in order to drive change.

SCALING WHAT WORKS

As well as developing new and innovative projects across 2021, there has been considerable attention to ensuring our proven methods and approaches can be scaled across as many places and communities as possible. To this end, The Young Foundation research team has been focused on scaling our peer and community research offer. Peer research is empowering. It is directed and conducted by people with lived experience of the issues being studied. This means people can affect positive change that matters to them.

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Trustees’ report Year ended 31 December 2021

ACHIEVEMENTS AND PERFORMANCE (continued)

SCALING WHAT WORKS (continued)

Peer researchers have a deep and personal understanding of the social or geographical community being studied. We believe that if more local people are skilled in asking questions about the places and issues they care about, more capacity, agency and confidence will be built for taking social action and making social change.

Alongside a continued growth in peer research commissions from partners from private, philanthropic and public sectors, we have focused on building the supporting infrastructure which enables this work to operate at a national scale. In 2021, this has included:

Through driving standards, quality and consistency across peer research, we have been successful in taking our work to a much larger audience, feeding a demand which seems to be growing.

Supporting the growth of Community Leadership

As part of our support for growing capacity and confidence in communities, throughout 2021 we continued to co-deliver the Community Leadership Academy funded by The Local Trust, and make the case for deeper investment into community leadership as part of our civic infrastructure. This has been complimented by ongoing delivery of Civic Futures, a Londonwide initiative supported by the GLA to ensure that London’s civic leaders receive the necessary support in terms of their own development, access to networks and a voice in ongoing conversations about London.

Building on our continued work to map creative community strength, we launched London’s Civic Strength Index at Toynbee Hall with London’s Deputy Mayor for Communities & Social Justice Deborah Weekes-Bernard. The Civic Strength Index offers a unique, data driven view of civic strength across London’s boroughs. You can view the report and data visualisation from here.

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Trustees’ report Year ended 31 December 2021

ACHIEVEMENTS AND PERFORMANCE (continued)

SHARING THE EVIDENCE OF WHAT’S WORKING TO SUPPORT STRONGER COMMUNITIES

This strategic goal is realised through our Institute for Community Studies. The Institute engages with communities and experts across the United Kingdom to identify and prioritise the top questions that research needs to answer based on what matters to local people, amplifying community perspectives and directing policymakers and other researchers toward the most urgent and salient questions.

The Institute encourages more equal relationships between institutions and communities. It challenges the dominant commissioning model that is too often detached and extractive, answering questions set from above with little or no insight into what really matters to communities themselves.

As a platform for sharing knowledge, the Institute worked with partners across the public, private and third sectors and academia to engage ‘multiple publics in multiple ways’ that avoid replicating and deepening the power imbalances that run through society. Work undertaken in 2021 includes:

There have been some standout reports emerging from the Institute in 2021, with the publication of The Covid Decade in partnership with the British Academy and ‘ Why Don’t They Ask Us? which analysed fifteen years of central government investment into levelling up activities, revealing robust evidence that current approaches to regeneration and economic transformation are not working for the majority of local communities and their economies.

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Trustees’ report Year ended 31 December 2021

ACHIEVEMENTS AND PERFORMANCE (continued)

SHARING THE EVIDENCE OF WHAT’S WORKING TO SUPPORT STRONGER COMMUNITIES

(continued)

Why don’t they ask us? formed part of a series of working papers examining how to fix local economies so that they work better for communities. The purpose of these reports was to demonstrate a new approach to mapping and co-designing stronger local economies for communities that is also community-led. The first report, Discomfort, Dissatisfaction & Disconnect: Exploring local economic perceptions through peer research, explored local economies from the perspectives of local communities through over fifty in-depth interviews undertaken using peer research, giving a platform to these all-too-often forgotten voices.

ENSURING WE ARE A FINANCIALLY SUSTAINABLE AND FIT FOR PURPOSE ORGANISATION

2021 was another year characterised by lockdowns and the pandemic, which has meant an ongoing challenge of ensuring we support well-being and productivity across our remote team, as well as continuing to drive our financial performance and social impact.

Our Place of Work

In February 2020, The Young Foundation completed its sale of its long-standing home in Bethnal Green’s Victoria Park Square. The income from this sale is being invested in the shortmedium term to yield an annual return to the charity. In subsequent years, this capital may be used to reinvest in a better suited building to house the organisation. While a difficult decision, given historical connections to Michael Young, trustees were in full agreement that the general dilapidation of the property and the need for significant investment to ensure it was fit for purpose as a place of work, made the sale in the best interests of the charity. In July 2021 we made our new home at Toynbee Hall, an organisation physically open to the local community, and with whom we have a shared ethos and similarly deep roots in the East End of London. The fundamental changes in our patterns and place of working as a result of the pandemic have afforded The Young Foundation staff a high degree of flexibility, with a significant reduction of cost to the charity as a result of the sale.

Financial Sustainability

As evidenced in the Financial Overview of this report, the Young Foundation continues to grow its income. Our consolidated accounts for 2021 show an operating surplus. While there is still some work to ensure our unrestricted funds are breaking even, the sustained trajectory of growth and sustainability is clear to see. At time of writing (May 2022), we are further increasing our forecast income, on track to exceed our target – undertaking strategically relevant and impactful work.

Equity, Diversity & Inclusion

Over the course of 2020, The Young Foundation has improved the diversity of our workforce, and our eagerness to recruit remotely, has enabled those who have different education backgrounds and different abilities to join the team, as well as reaching talent that would otherwise be excluded from working in a London based charity. Our work now is focused on growing that diversity further and continuing the work to ensure that The Young Foundation is an inclusive and supportive place to work.

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Trustees’ report Year ended 31 December 2021

FINANCIAL REVIEW

Results for the year

The reported surplus in the year to December 2021 of £2,593k is a significant improvement on the £157k deficit in 2020. However, this surplus includes a £1,989k profit from the sale of the building 18 Victoria Park Square. Excluding this profit the surplus for the year was £604k. Looking at Unrestricted Funds and excluding the sale of the property, a surplus of £65k was made. This comes after a number of years of unrestricted deficits (2020: £294k).

Income in the year, excluding the sale of the property, of £3,101k (2020: £1,896k) represents a substantial 64% increase on the prior year.

Charitable expenditure of £2,497k (2020: £2,054k) is a 22% increase on 2020 expenditure. There has been a focus on support costs and these were largely flat year on year at £677k in 2021 compared with £670k in 2020.

In 2021, the charity secured several large grants restricted to delivery of specific programmes (including grants from the NCS Trust for the Civic Journeys programme and central government for the BOOST programme) meaning that restricted income in 2021 of £1,750k (2020: £1,221k) represents 58% of grants and other earned income.

There is an unrestricted surplus of £2,054k (2020: deficit £294k). As noted below the charity continues to operate within its reserves policy. With support costs well managed, and the sale of the charity’s property removing the risk of unexpected maintenance expenses, the focus for 2021 was to increase income whilst retaining appropriate margins on projects to ensure that support costs are fully funded. Income targets for 2021 of £2,000k were exceeded and at the time of writing income is expected to be ahead of plan for 2022. In 2021 the Young Foundation invested further in roles to help deliver this income growth including the appointment of an Associate Director, Institute for Community Studies and a Head of External Affairs & Communications. They were joined at the beginning of 2022 by a Director of Innovation and Practice.

Reserves policy and financial position

Total reserves at 31 December 2021 were £5,206k (2020: £2,613k) of which £1,603k (2020: £1,064k) were restricted for specific purposes. In addition, following the sale of 18 Victoria Park Square, a total of £2,900k was designated during the year to the property fund, for further details see note 12.

The policy of the trustees is to hold sufficient reserves in a liquid form to meet short term obligations, and having considered the risks facing the charity and its level of activity, have decided that this is equivalent to six months unrestricted expenditure. At 31 December 2021, six months unrestricted expenditure was £752k (2020: £509k). The total free reserves at 31 December 2021 were £703k (2020: £1,549k) which represents 5.6 months unrestricted expenditure.

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Trustees’ report Year ended 31 December 2021

FINANCIAL REVIEW (continued)

Reserves policy and financial position (continued)

Therefore, the trustees consider that they have sufficient funds to meet the reserves policy and are considering how best to invest these funds to balance preserving liquidity to maintain day to day activity whilst also generating income and/or long-term growth.

Going concern

The trustees continue to adopt the going concern basis in preparing the annual financial statements. In adopting this basis, they have reviewed all appropriate budgets and forecasts. These forecasts include the impact of Covid-19, which is explained in detail under “Risk Management” (page 17 below). The trustees are not aware of any material uncertainties that suggest that the Young Foundation cannot continue as a going concern.

Investment policy and performance

Under the Memorandum and Articles of Association the trustees have general powers of investment. The trustees held the charity’s funds as cash with CCLA and HSBC in 2021. In 2022, they have decided to invest in the Cazenove Charity Responsible Multi-Asset Fund, in addition.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Young Foundation's governing documents are its Memorandum and Articles of Association dated 15 June 1977 as amended on 16 March 2005 and 21 February 2021.

The Board of Trustees met five times in 2021. In addition to the Board of Trustees there is a Resources, Risk & Assurance Committee (RRAC) which met four times in 2021. The Committee was chaired by the treasurer, Jonathan Sobczyk Boddington from February 2021. The Nominations and Governance Committees met during 2021.

Due to a number of scheduled retirements, the Board is to be refreshed in 2022, with up to six new trustees.

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Trustees’ report Year ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The following trustees were in office at 31 December 2021 and served throughout the year except where shown.

Trustees Appointments/
resignations		 Board meetings attended in
2021 (and number available)
Dame Julie Mellor Resigned 13thJuly2022 5(5)
Vidhya Alakeson Resigned 11thFebruary2022 5(5)
Kersten England 4(5)
Peter Gladwell 5(5)
Stephen Jacobs 5(5)
HenryKippin 5(5)
Abigail Rotheroe Resigned 27thJanuary2022 4(5)
Jonathan Sobczyk-Boddington 5(5)
William Tanner Resigned 24thAugust 2021 3(3)
Gareth Williams 5(5)

Details of all the trustees are posted on our website, youngfoundation.org

Candidate trustees meet with the Chair, the Chief Executive and the Nominations and Governance Committee following which their application is considered by the Nominations and Governance Committee. The induction of trustees is undertaken on an informal basis with the Chief Executive and senior management team and through attendance at Young Foundation and external events.

The day to day management and running of the charity has been delegated to the Chief Executive and the senior management team. The senior management team prepares an annual operational plan and budget which is approved by the trustees. The senior management team take responsibility for the execution of the operational plan and budget and report on progress to the trustees.

Key management personnel

The key management personnel of the Young Foundation are the Chair and Board of Trustees together with the Chief Executive and Directors who form the senior management team.

The remuneration of the Chief Executive is set and reviewed by the nominations committee. The remuneration of the other key management personnel is set by the CEO taking into consideration factors such as what the organisation can afford to pay, inflation and external benchmarking.

Risk management

The Board’s Resources, Risk and Assurance Committee has reviewed the major operational risks and the Board has reviewed the strategic risks including the ways in which these are monitored, managed and mitigated by the senior management team. These reviews have included the on-going impact of Covid-19.

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Trustees’ report Year ended 31 December 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Risk management (continued)

Impact of Covid-19 (Coronavirus)

Covid-19 (Coronavirus) restrictions continued during much of 2021, with lockdowns across the country, restricting travel to a few exceptional circumstances, and forcing the temporary suspension of some traditional business practices.

In February 2021, the Young Foundation sold its office building. It had been subject to closure due to lockdown conditions and all staff had been working from home. The Young Foundation has operated since then in a hybrid fashion, from office space rented at Toynbee hall, with many staff continuing to work from home, most of the time, but attending the office to collaborate.

Despite initial concerns that business development activities during lockdown would be more difficult we were able to exceed our income targets for 2021 and performance against 2022 targets also looks strong at the time of writing. Proceeds from the sale of the building have also bolstered the charity’s reserves.

The businesses in which we have made social investment have mainly been able to maintain their trade during 2021 and at this point there has been no impact on the valuation of our investments. But we continue to monitor our investments closely as the longer-term impact on their trade becomes clearer.

Key risks

Our risk registers reflect the above increased risks presented by Covid-19. The key risks identified by the Board and summarised below together with management actions to mitigate these risks.

Income Generation and sustainability

The main risk to The Young Foundation is the inability to generate sufficient income to enable full cost recovery and be a financially sustainable organisation. As noted above, the long-term impact of Covid-19 or indeed war in Ukraine and other events on the wider economy may mean that business development becomes more difficult. It is essential that we maintain close relationships with funders and explore all funding opportunities. We have developed and continue to refine our processes for bidding for funding to ensure full cost recovery. We will be developing some “off-the-shelf” products as a way of introducing our products and services to new clients. The sale of our property has helped us reduce overheads further as we no longer risk large unexpected maintenance costs.

Staff engagement

The Young Foundation has settled into a pattern of hybrid working, with staff able to mix home and office working. We have regular all staff team meetings and ensure that managers keep in close contact with their team. We have upgraded some of our IT systems and equipment and we provide appropriate office furniture for staff who need it. We continue to seek staff opinion and feedback through team meeting discussions and staff surveys.

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Trustees’ report Year ended 31 December 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of the Young Foundation for the purposes of company law) 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).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for the year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

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

This report was approved by the trustees on 13 July 2022 and signed on their behalf by:

Kersten England, Chair of the Board of Trustees

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Independent auditor’s Report Year ended 31 December 2021

Independent auditor’s report to the members of The Young Foundation

Opinion

We have audited the financial statements of The Young Foundation (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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Independent auditor’s Report Year ended 31 December 2021

Other information (continued)

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 such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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Independent auditor’s Report Year ended 31 December 2021

Responsibilities of trustees (continued)

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

Auditor’s responsibilities for the audit of the financial statements

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

The Young Foundation 22

Independent auditor’s Report Year ended 31 December 2021

Auditor’s responsibilities for the audit of the financial statements (continued) To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Catherine Biscoe (Senior statutory auditor) for and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 8 September 2022

The Young Foundation 23

Statement of financial activities Year ended 31 December 2021

Notes Unrestricted
funds
£


Restricted
funds
£		 2021
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£

2020
Total
funds
£
Incorporating income and
expenditure account
Income from
Donations
Investments
2
Charitable activities
. Grants and other earned fees
1a
. Other
1b
Total income
Expenditure on
Charitable activities
3
Total expenditure
Net income (expenditure)
before transfers
Transfers between funds
12
Net income (expenditure) and
net movement in funds for the
year
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 —

356

1,271,451

2,067,935


—

—

1,750,382

—

—
356

3,021,833
2,067,935		 1,139
2,418
484,774
187,253
—

—
1,220,799

—
1,139

2,418
1,705,573

187,253
3,339,742 1,750,382 5,090,124 675,584 1,220,799 1,896,383

1,504,555


992,843

2,497,398		 1,017,462 1,036,254 2,053,716
1,504,555
992,843
 2,497,398
 1,017,462 1,036,254 2,053,716
1,835,187

218,724
757,539

**(218,724) **		 2,592,726

—		 (341,878)
48,205
184,545

(48,205)
(157,333)
—
2,053,911
1,548,818
538,815


1,064,007
 2,592,726


2,612,825
 (293,673)
1,842,491
136,340

927,667		 (157,333)
2,770,158
3,602,729 1,602,822 5,205,551 1,548,818 1,064,007 2,612,825

Other charitable income includes discontinued activities (the Hub Social Investment Rent and Room Hire (£748) (2020 - £128,324) and tenant recharges £184 (2020 - £4,531). These activities ceased with the sale of the building.

All recognised gains and losses are included in the above statement of financial activities.

The notes on pages to 32 to 44 form part of these financial statements.

The Young Foundation 24

Balance sheet 31 December 2021

Notes
2021
£		 2021
£		 2020
£		 2020
£
Fixed assets
Tangible assets
7
Investments
8
Current assets
Assets held for resale
Debtors
9
Cash at bank and in hand
Liabilities:
Creditors: amounts falling
due within one year
10
Net current assets
Total assets less current liabilities
The funds of the charity:
Unrestricted funds:
12
. General funds
. Designed funds
Restricted funds
13
36,135

423,866




460,001












4,745,550		 5,295
595,247

600,542




2,012,283
—

900,637
4,173,941		 909,250
439,685
1,114,515
5,074,578

(329,028)		 2,463,450
(451,167)












5,205,551		 2,612,825



702,729
2,900,000
1,602,822		 1,548,818
—
1,064,007
5,205,551 2,612,825

The financial statements were approved by the Trustees on 13 July 2022 and signed on their behalf, by:

Kersten England, Chair

The Young Foundation Company registration number 01319183 (England and Wales)

The notes on pages 32 to 44 form part of these financial statements.

The Young Foundation 25

Statement of cash flows 31 December 2021

Notes
2021
£		 2020
£
Cash outflow from operating activities:
Net cash used in operating activities
A
Cash inflow from investing activities:
Interest and dividends from investments
Purchase of tangible fixed assets
Sale of asset held for sale
Repayments of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2021
B
Cash and cash equivalents at 31 December 2021
B
**(32,898) **		 (57,700)
356
(39,700)
2,898,200
233,468		 2,418
—
—
55,800
3,092,324 58,218
3,059,426

1,114,515		 518
1,113,997

4,173,941		 1,114,515

Notes to the statement of cash flows for the year to 31 December 2021

A Reconciliation of net movement in funds to net cash flow from operating activities

2021
£		 2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Impairment of investments
Interest and dividends from investments
Surplus on disposal of asset held for sale
Loss of disposal of fixed assets
Increase in debtors
Increase/(decrease) in creditors
Net cash used in operating activities		 2,592,726
4,068
(62,087)
(356)
(1,988,947)
4,792
(460,952)
(122,142)		 (157,333)
34,053
(74,431)
(2,418)
—
—
(89,386)
229,815
(32,898) (57,700)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2021
£		 2020
£
Cash at bank and in hand
Instant access cash accounts
Total cash and cash equivalents		 3,441,642
732,299		 382,216
732,299
4,173,941 1,114,515

C Analysis of changes in net debt

Analysis of changes in net debt
At 1 At 31
January Cash December
2021 flows 2021
£ £ £
Cash 382,216 3,059,426 3,441,642
Cash equivalents 732,299 — 732,299
Total 1,114,515 3,059,426 4,173,941

The Young Foundation 26

Principal accounting policies 31 December 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2021.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

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

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

The trustees considered the impact of Covid-19 when making these judgements and estimates. With the exception of the valuation of social investments, they do not consider that the impact of Covid-19 results in any further uncertainty. The valuation of social investments is based on the most up to date information available to trustees on future income and cash flows. The trustees determined that these forecasts adequately reflect the impact of Covid-19.

The Young Foundation 27

Principal accounting policies 31 December 2021

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect of a period of one year from the date of approval of these financial statements based on appropriate budgets and forecasts.

When preparing these forecasts, the trustees considered:

As a result of this review, the trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Additional detail about the impact of Covid-19 on the charity is described in the Trustees’ Annual Report (page 18).

Company status

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

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.

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

Income recognition

Income is recognised in the statement of financial activities when the charitable company has entitlement to the funds, receipt is probable and the amount can be measured with sufficient reliability.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, 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 charity and it is probable that those conditions will be fulfilled in the reporting period.

The Young Foundation 28

Principal accounting policies 31 December 2021

Income recognition (continued)

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Grants from government and other agencies have been included as income from charitable activities where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use, for example monies for core funding.

Where the Young Foundation is a member of a consortium, for example on certain EU funded programmes, only the income and expenditure which is specific to the Young Foundation is recognised in the financial statements.

Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future period.

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

Donated services provided to the charity are recognised in the period when it is probable that the economic benefits will flow to the charity, provided they can be measured reliably. This is normally when the service is provided. An equivalent amount is included in expenditure. Donated services are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain the services of equivalent economic benefit on the open market.

Expenditure recognition

Expenditure is recognised once there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities.

All expenditure is inclusive of irrecoverable VAT.

Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include direct and support costs of projects, including governance costs and where appropriate charitable grants.

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial year are accrued.

The Young Foundation 29

Principal accounting policies 31 December 2021

Allocation of support and governance costs

Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out centrally.

Governance costs are those incurred in connection with the administration of the company and compliance with constitutional and statutory requirements.

Support costs are allocated across charitable expenditure on the basis of the number of staff employed in each activity.

Tangible fixed assets and depreciation

All assets costing more than £500 and with an expected useful life exceeding one year are capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following bases:

Other financial instruments

The charity has considered FRS 102 sections 11 and 12, identifying and classifying financial instruments as ‘basic’ and ‘other’. The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors, are initially recognised at transaction value and subsequently measured at their settlement value.

Social investments

Social investments are investments made directly in pursuit of the charity’s charitable purposes. Unquoted equity investments are held at cost, less any provision for diminution in value or add any increase in value, while loans are recorded at cost less any provisions to reflect non-recoverability.

Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

The Young Foundation 30

Principal accounting policies 31 December 2021

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the term of the lease.

Pension contributions

The charity participates in the Universities Superannuation Scheme (USS), a defined benefit scheme which is contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the scheme’s assets are not hypothecated to individual institutions and a scheme-wide contribution rate is set. The charity is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as that provided by USS. Therefore, as required by FRS 102, the charity accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. There is currently no deficit funding plan in place, other than increased employer contributions, and therefore no liability has been recognised.

In February 2015, a defined contribution scheme, (the Peoples Pension) was established for staff not working on research. Contributions in respect of the defined contribution scheme are charged to the statement of financial activities when they are payable to the scheme. The charity has no liability beyond making its contributions and paying across the deductions for the employee contributions.

The Young Foundation 31

Notes to the financial statements Year ended 31 December 2021

1a Income from charitable activities – grants and other fees earned

Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Communities
Research
Social Investment and Innovation
2021 Total funds		 652,375
619,076
—		 334,270
676,782
739,330		 986,645
1,295,858
739,330
1,271,451 1,750,382 3,021,833
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Communities
Research
Social Investment and Innovation
2020 Total funds		 287,114
197,660
—		 17,545
692,731
510,523		 304,659
890,391
510,523
484,774 1,220,799 1,705,573

1b Income from charitable activities – other income

Income from charitable activities – other income
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Hub for social innovation – rent and room hire
VAT recovery
Tenant recharges
Speaking fees, events and publications
Gain on sale of building
Gain on conversion of YAIF Project
Other
2021 Total funds		 (748)
33,481
184
575
1,988,947
47,343
(1,847)		 —
—
—
—
—
—
—		 (748)
33,481
184
575
1,988,947
47,343
(1,847)
2,067,935 — 2,067,935
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Hub for social innovation – rent and room hire
VAT recovery
Tenant recharges
Speaking fees, events and publications
Government grant
Other
2020 Total funds		 128,324
16,681
4,531
691
27,028
9,998		 —
—
—
—
—
—		 128,324
16,681
4,531
691
27,028
9,998
187,253 — 187,253

The Young Foundation 32

Notes to the financial statements Year ended 31 December 2021

2 Income from investments

Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Interest receivable on cash deposits
2021 Total funds		 356 — 356
356 — 356
Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
funds
£
Interest receivable on cash deposits
2020 Total funds		 2,418 — 2,418
2,418 — 2,418

3 Expenditure on charitable activities

Unrestricted
direct costs
£		 Unrestricted
support
costs
£		 Restricted
direct costs
£		 Restricted
support
costs
£		 2021
Total
funds
£
Communities
Research
Social Investment and Innovation
2021 Total funds		 560,753
427,222
2,473		 140,211
280,422
93,474		 70,142
299,934
459,463		 —
99,061
64,243		 771,106
1,106,639
619,653
990,448 514,107 829,539 163,304 2,497,398
Unrestricted
direct costs
£		 Unrestricted
support
costs
£		 Restricted
direct costs
£		 Restricted
support
costs
£		 2020
Total
funds
£
Communities
Research
Social Investment and Innovation
Hub for social innovation
2020 Total funds		 278,811
143,328
463
151,378		 104,910
231,278
66,761
40,533		 54,702
448,613
305,934
—		 24,114
43,530
159,361
-		 462,537
866,749
532,519
191,911
573,980 443,482 809,249 227,005 2,053,716

Allocation of support costs

Support costs have been allocated across charitable expenditure on the basis of the number of staff employed in each activity. The net costs after allocation are shown below

2021
£		 2020
£
Development, Administration, Finance and Human Resources
Information technology
Governance costs
. Auditor’s remuneration
. Staff costs		 590,323
48,198

16,450
22,440		 576,280
56,561
16,263
21,384
677,411 670,487

The Young Foundation 33

Notes to the financial statements Year ended 31 December 2021

4 Staff costs and remuneration of key management personnel

Staff costs and remuneration of key management personnel
2021
£		 2020
£
Wages and salaries
Social security costs
Other pension costs		 1,198,404
115,354
140,476		 976,894
99,560
97,455
1,454,234 1,173,909

During the year, the Young Foundation made total termination payments of £58,856 (2020 – £11,401). These are included within wages and salaries.

The average head count during 2021 was 30 (2020 – 29).

The average, full time equivalent number of staff analysed by function is:

2021 2020
Charitable activities
Support		 22.5
4.3		 18.6
5.7
26.8 24.3

The number of higher paid employees was:

2021
no.		 2020
no.
£60,000 - £70,000
£100,001 - £110,000		 2
1		 1
1
3 2

These employees are accruing retirement benefits under either a defined benefits or defined contribution scheme. Employer contributions made in respect of these individuals totalled £32,538 (2020 – £18,665).

The key management personnel of the charity in charge of directing, controlling, running and operating the charity on a day to day basis comprises the trustees, the Chief Executive and the senior management team. The total remuneration (including taxable benefits, employer’s pension contributions and national insurance costs) of the key management personnel for the year was £320,491 (2020 – £285,596). The cost of key leadership personnel employed as contractors on an interim basis during the year was £99,330 (2020: £63,690).

No remuneration was paid to any trustee during the year. No trustees’ travel and accommodation expenses were reimbursed during the year (2020 – £932).

The Young Foundation 34

Notes to the financial statements Year ended 31 December 2021

5 Net expenditure for the year

This is stated after charging:

2021
£		 2020
£
Auditor’s remuneration (excluding VAT):
. Audit – current year
. Audit – prior year
Depreciation
Operatinglease rentals
10,750
5,700
4,068
—		 10,500
5,763
34,053
301

6 Taxation

The Young Foundation is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities as it falls within the various exemptions available to registered charities.

7 Tangible fixed assets

Tangible fixed assets
Office
equipment
£		 IT
equipment
£		 Total
£
Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
Disposals
At 31 December 2021
NBV at 31 December 2021
NBV at 1 January2021		 108,704
—
(108,704)		 151,879
39,700
(150,372)		 260,583
39,700
(259,076)
— 41,207 41,207
104,772
(104,772)		 150,516
4,068
(149,512)		 255,288
4,068
(254,284)
— 5,072 5,072
— 36,135 36,135
3,932 1,363 5,295
Investments
Social investments:
. YoungAcademy		 Total funds
2020
£
578,616
72,431
(55,800)
595,247
1,084,939
Market value at 1 January 2021
Impairment reversal/(charge)
Repayments
Market value at 31 December 2021
Historic cost		 595,247
62,087
**(233,468) **
423,866
851,472

8 Investments

The Young Foundation 35

Notes to the financial statements Year ended 31 December 2021

8 Investments (continued)

Social investments

The Young Foundation has made social investments through the Young Academy Investment Fund which has been established by the Young Foundation with funding from the Social Incubator Fund, which is administered by the Big Lottery Fund on behalf of the Cabinet Office and UBS. The initial investments were made by way of convertible loan notes. Many of these instruments have now been converted into loans with repayments linked to revenue.

At 31 December 2021, the split was as follows:

2021
£		 2020
£
Convertible loan notes
Revenue participation loans		 153,188
270,678
 247,000
348,247
423,866 595,247

The social investments include convertible loan notes issued to Think for the Future, Potentially and CPDBee and revenue participation loans to Edukit, Proversity, Infused Learning, Structural Learning, Smart Schools Council, Talent-Ed Education, GT Scholars, Panjango, and East Learning CIC.

The Young Foundation holds shares in a community interest company Mydex Data Services. At this stage in Mydex’s development, it has been decided to not to put a value on the shareholding in the Young Foundation’s financial statements. The shareholding is treated as a social investment as it is made directly in pursuit of the Young Foundation’s charitable purposes.

The Young Academy investments were reviewed internally for diminution in value. In 2021 no increase in impairment provision was made, however the provision was reduced by £62,087 representing actual repayments against investments previously fully impaired of £844 and a reversal of impairments made in earlier years that are no longer considered necessary of £61,243 (2020 – a reversal of £45,310 was made.) The valuation of social investments is based on the most up to date information available to trustees on future income and cash flows and following the year end, no further material diminution in value has been noted.

9 Debtors and prepayments

Debtors and prepayments
2021
£		 2020
£
Trade debtors
Prepayments and accrued income		 460,028
440,609		 99,498

340,187
900,637 439,685

The Young Foundation 36

Notes to the financial statements Year ended 31 December 2021

10 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2021
£		 2020
£
Trade creditors
Other creditors
YAIF loan
Accrued expenditure
Deferred income		 53,670
91,824
36,500
47,433
99,598		 40,021
85,745
—
67,344
258,057
329,028 451,167

The YAIF loan is an interest free facility with a repayment date of 31 March 2026. The charity intends to make the repayment within the next financial year.

Included in creditors is deferred income as set out below:

2021
£		 2020
£
Deferred income at 1 January 2021
Resources deferred in the year
Amounts released in the year
Deferred income at 31 December 2021		 258,057
99,598
(258,057)		 48,197
258,057
(48,197)
99,598
258,057

Deferred income comprises funds received in advance in relation to several contracts in progress at the year end.

11 Liability of members

The charity is a company limited by guarantee, each member being liable for a sum not exceeding £1 in the event of the company being wound up.

12 Movement in funds

Movement in funds
Balance at
1 January
2021
£		 Net
income
£		 Transfers
£		 Balance at
31
December
2021
£
Restricted funds
Unrestricted funds
. General fund
. Property fund
Total funds		 1,064,007
1,548,818
—		 757,539
1,835,187
—		 (218,724)
(2,681,276)
2,900,000		 1,602,822
702,729
2,900,000
1,548,818 1,835,187 218,824 3,602,729
2,612,825 2,592,726 — 5,205,551

The property fund represented the charity’s investment in property which created a hub for social innovation and for nurturing new organisations as well as acting as a base from which the charity could carry out its operations. The property was sold in early 2021. However, £2.9 million has been designated by the trustees for possible future use in the purchase of a property.

Restricted funds represent grant income for specific charitable projects as set out in note 13.

The Young Foundation 37

Notes to the financial statements Year ended 31 December 2021

12 Movement in funds (continued)

Balance at
1 January
2020
£		 Net
expenditure
£		 Transfers
£		 Balance at
31 December
2020
£
Restricted funds
Unrestricted funds
. General fund
. Property fund
Total funds		 927,667
904,214
938,277		 184,525
(318,902)
(22,976)		 (48,205)
963,506
(915,301)		 1,064,007
1,548,818
—
1,842,491 (341,878) 48,205 1,548,818
2,770,158 (157,333) — 2,612,825

The Young Foundation 38

Notes to the financial statements Year ended 31 December 2021

13 Restricted fund analysis

The movement in restricted funds in 2021 was:

Balance at
1 January
2021
£		 Income
£		 Expenditure
£		 Transfers
£		 Balance at
31 December
2021
£
19,337
—
—
—
229,111
36,274
11,375
16,401
45,265
14,337
31,205		 28,015
497,999
37,478
107,630
—
—
—
—
—
5,660
—		 (16,161)
(36,578)
(33,976)
(100,469)
(56,199)
(36,274)
(10,786)
(12,085)
(45,265)
(19,997)
(31,205)		 —
—
—
—
—
—
—
—
—
—
—		 31,191
461,421
3,502
7,161
172,912
—
589
4,316
—
—
—
403,305 676,782 (398,995) — 681,091
—
—
—		 250,520
50,000
33,750		 (17,042)
(23,100)
(30,000)		 —
—
—		 233,478
26,900
3,750
— 334,270 (70,142) — 264,128
25,000
—
196,330
3,000
390,000
—
125,000		 47,343
(51,552)
(2,500)
(196,330)
(8,000)
(218,655)
(94,012)		 (218,724)
—
—
—
—
—
—
—		 423,866
18,143
—
—
—
171,345
13,260
30,988
660,702 739,330 (523,706) (218,724) 657,602
1,064,007 1,750,382 992,843 (218,724) 1,602,822

The Young Foundation 39

Notes to the financial statements Year ended 31 December 2021

13 Restricted fund analysis (continued)

The Young Academy is an impact first investment fund set up by The Young Foundation to provide finance to early stage social ventures whose work tackles education inequality in England. The Young Academy has received £1,391,016 from the Social Incubator Fund which is administered on behalf of the Cabinet Office by the Big Lottery Fund.

During the year, transfers of £218,724 were made from restricted funds to the unrestricted fund. This transfer was in relation to repayments to the Young Academy Investment Fund.

The movement in restricted funds in 2020 was:

Balance at
1 January
2020
£		 Income
£		 Expenditure
£		 Transfers
£		 Balance at
31 December
2020
£
Research
EU Horizon 20 20- Clever Cities
SHINE Mad Children
Power To Change – Institute for
Community Studies
Friends Provident - Institute for
Community Studies
LB of Bexley- NRPF Ethnography
EU Horizon 20 20- UPLIFT
Paul Hamlyn Foundation - Peer
Research
Calouste Gulbenkian
Foundation - Battersea Arts
Centre
UPP Foundation - Civic
University
The Wellcome Trust- COVID-19
Kings' College London -
Undisciplined Spaces
National Lottery Community
Fund - Emerging Futures
Total Research
Communities
Big Lottery Fund - Amplify Youth
NI
Credit Suisse - Amplify Youth
Communities Can
Belfast City Council
Department for Communities
Northern Ireland - Arts For
Social Change
Total Communities		 41,363
3,478
82,876
75,000

—
—
—
—
—
—
—
—		 —
—
—
50,000
2,930
265,672
60,000
16,130
25,000
207,999
15,000
50,000		 (22,026)
(3,478)
(82,876)
(125,000)
(2,930)
(36,561)
(23,726)
(4,755)
(8,599)
(162,734)
(663)
(18,795)		 —
—
—
—
—
—
—
—
—
—
—
—		 19,337
—
—
—
—
229,111
36,274
11,375
16,401
45,265
14,337
31,205
202,717 692,731 (492,143) — 403,305
54,284
4,108
247
2,877
—		 —
10,000
7,545		 (54,284)
(4,108)
(247)
(12,877)
(7,545)		 —
—
—
—
—		 —
—
—
—
—
61,516 17,545 (79,061) — —

The Young Foundation 40

Notes to the financial statements Year ended 31 December 2021

13 Restricted fund analysis (continued)

Balance at
1 January
2020
£		 Income
£		 Expenditure
£		 Transfers
£		 Balance at
31 December
2020
£
—
94,069
—
—
—
—
22,454
—
4,000
—
390,000
—		 72,431
(77,274)
(12,885)
(6,086)
(21,383)
(10,943)
(9,165)
(1,265)
(8,480)
—
(390,000)
—		 (55,800)
27,900
—
—
—
—
(13,289)
—
—
—
—
(7,016)		 595,247
44,695
2,500
—
—
5,000
—
—
—
13,260
—
—
663,434 510,523 (465,050) (48,205) 660,702
927,667 1,220,799 (1,036,254) (48,205) 1,064,007

During 2020, transfers of £48,205 were made from restricted funds to the unrestricted fund. These transfers were permitted under grant agreements where projects have completed and in relation to repayments to the Young Academy Investment Fund.

14 Analysis of net assets between funds

Unrestricted Unrestricted Restricted
£		 2021
Total
£
General
£		 Designated
£
Tangible fixed assets
Investments
Net current assets		 36,135
—
666,594		 —
—
2,900,000		 —
423,866
1,178,956		 36,135
423,866
4,745,550
702,729 2,900,000 1,602,822 5,205,551
Unrestricted Unrestricted Restricted
£		 2020
Total
£
General
£		 Designated
£
Tangible fixed assets
Investments
Net current assets		 5,295
—
1,515,623		 —
—
—		 —
595,247
496,660		 5,295
595,247
2,012,283
1,520,918 — 1,064,007 2,612,825

The Young Foundation 41

Notes to the financial statements Year ended 31 December 2021

15 Related party transactions

During the year Power to Change made two grants to The Young Foundation, totalling £137,750. In the prior year Power to Change commissioned and paid £33,160 for a report. One of The Young Foundation’s trustees is an employee of Power to Change. The trustee has resigned from both positions following the year end. In addition, one of The Young Foundation management team is a former member of the Power to Change management team and continues to be an unremunerated senior associate.

During the year, a donation of £nil (2020 – £1,000) was received from Legal and General Investment Management. One of The Young Foundation’s trustees is an employee of Legal and General Investment Management.

One of the trustees who served during 2020 was an employee of the London School of Economics (LSE), £10,000 was received from LSE in 2020.

16 Commitments

The Young Foundation participates in the Universities Superannuation Scheme. The scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The Young Foundation is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, The Young Foundation therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme.

The total cost charged to the statement of financial activities for USS Pension Contributions is £114,190 (2020 – £73,600). This includes £nil (2020 – £nil) outstanding contributions at the balance sheet date.

The latest available complete actuarial valuation of the Retirement Income Builder section of the Scheme is at 31 March 2020 (the valuation date), which was carried out using the projected unit method. Since the Young Foundation cannot identify its share of Retirement Income Builder Section of the Scheme assets and liabilities, the following disclosures reflect those relevant for the section as a whole.

The 2020 valuation for USS was under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £66.5 billion and the value of the scheme’s technical provisions was £80.6 billion indicating a shortfall of £14.1 billion. An alternative way of expressing the position is that the Scheme’s assets were sufficient to cover 82.5% of its liabilities – this percentage is known as the funding level of the Scheme.

The deficit has been determined assuming a number of changes to the benefits of the scheme, which have been approved, are made from 1 April 2022.

The Young Foundation 42

Notes to the financial statements Year ended 31 December 2021

16 Commitments (continued)

Previous benefits in the Scheme

Future benefit changes

In outline, the JNC recommendation is to maintain the existing hybrid defined benefit / defined contribution structure but modified in the following way for benefits accrued from 1 April 2022:

  1. Reduction in salary threshold from c £60,000 pa to £40,000 pa.

  2. Reduction in accrual rate from 1/75 to 1/85.

  3. Pension increases and revaluation before retirement restricted to CPI up to a maximum of 2.5% pa.

  4. Leavers with more than three months’ but less than two years’ service would receive the standard deferred benefit rather than the current entitlement to a lower benefit based solely on member contributions.

The Young Foundation 43

Notes to the financial statements Year ended 31 December 2021

16 Commitments (continued)

Future benefit changes (continued)

Defined benefit liability numbers for the scheme for accounting purposes have been produced using the following assumptions as at 31 March 2021 and 2020:

The projected funding levels three years after the valuation date are shown below.

These projections are made on the basis that:

2021 2020
Scheme assets
Total scheme liabilities
FRS 102 total scheme deficit
FRS 102 total fundinglevel		 £66.5bn
£80.6bn
£14.1bn
83%
£63.7bn

£67.3bn

£3.6bn

95%

The Young Foundation 44