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2023-12-31-accounts

29/07/2024

The Young Foundation

Report and financial statements

31 December 2023

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 6
Chief Executive’s Report 7
Trustees’ report 8
Independent auditor’s report 21
Financial statements
Statement of financial activities 25
Balance sheet 26
Statement of cash flows 27
Principal accounting policies 28
Notes to the financial statements
 33

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 Kersten England (Chair)
Eddy Adams
Oluwatosin Adegun (appointed 25 April
2024)
Christopher Dobson
Kate Hainsworth
Rizwana Hamid
Stephen Jacobs
Henry Kippin
Kavya Menon (appointed 25 April 2024)
Michael Omoniyi
Jonathan Sobczyk-Boddington (Chair of
Resources, Risk and Assurance)
Matthew Taylor (resigned 22 March 2024)
Pamela Warhurst (appointed 25 April
2024)
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
CCLA
One Angel Lane
London
EC4R 3AB

The Young Foundation 3

Reference and administrative information

Solicitors Bates Wells 10 Queen Street Place London EC4R 1BE Investment Managers Cazenove Capital 1 London Wall Place London EC2Y 5AU

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

Arts and Humanities Research Council Arup Group Big Change Charitable Trust National Lottery Community Fund Birmingham City Council The British Academy Church Urban Fund Cornwall Council The Crown Estate Department for Levelling Up, Housing and Communities European Commission Greater London Authority Imperial College London King’s College London Koreo Limited Lloyds Bank plc London Borough of Hackney London Borough of Waltham Forest London School of Economics and Political Science Luton Borough Council Metro Dynamics Limited The National Lottery Heritage Fund Norfolk Community Foundation Nuffield Foundation Power to Change Trust The Professional Bodies Research Consortium

Royal Borough of Greenwich Solent NHS Trust Spirit of 2012 Sustrans UK Research and Innovation University College London University of Bedfordshire University of Birmingham University of Bristol Verian Group UK Limited West Midlands Combined Authority The Youth Endowment Fund

The Young Foundation 5

Chair’s Report Year to 31 December 2023

2023 was an important year for The Young Foundation. In the year in which we celebrated 70 years since the foundation of The Institute for Community Studies by Michael Young our founder, we launched a new radical agenda for change, our 5 year strategy, ‘The Power of Participation’. Embracing the spirit of Michael Young our strategy shares a vision of a redesigned social contract between people, communities, business and the state and of a fairer, greener future.

Our Board of Trustees worked hard with the Executive to develop this strategy but equally to ensure that our budget, setting out the resourcing of the work of The Young Foundation, was aligned to our strategic priorities. This has seen a growth in our social innovation practice team, the creation of a dedicated senior post leading on pathways to a ‘just transition’, and development of deeper relationships with larger private sector organisations who share our desire to pursue the ‘Quest for the S in ESG’. We’ve also established a firm reputation for working with research funders around investment in the research capacity and capability of community organisations.

At the same time, and cognisant of a new Government, we have raised our profile across all political parties, presenting on panels, facilitating round tables and attending party conferences. A huge thank you is due to all staff at The Young Foundation for their energy and commitment over the last year. I'd also like to formally congratulate our Chief Executive Helen Goulden on being awarded an OBE in the 2023 New Years Honours.

I’d also like to pay tribute to the work of our Resources, Risk and Assurance Committee which has intensified its work over this year to support and guide colleagues in terms of the stewardship of our finances. As for many similar organisations in our sector we experience fluctuations in the winning and draw down of funds. It is vital that we cost our work effectively so that the full costs of our work can be recovered in our work as we continue to work towards being financially sustainable without drawing on our charitable reserves. In 2023 we have judiciously drawn from reserves to balance our finances, acknowledging that we are in a moment of growth and repositioning.

The membership of the Board of Trustees was substantially refreshed in the middle of 2022, and in 2023 we have really begun to realise the benefits of the wider experience and diverse backgrounds of our Trustees. As the organisation itself has grown we identified the need for an extended governance structure to enable us to engage appropriately with the Executive and employees of the Young Foundation on organisation and cultural development matters including equality, diversity and inclusion. We all recognise that the academic and professional backgrounds from which many staff are drawn have under representation particularly of men and people from global majority communities. We are keen to play our part in widening opportunities and pathways into fulfilling careers for people of all backgrounds which is reflected in our EDI strategy.

Through this year we remain acutely aware of the many challenges faced by people and communities right across the nations of the UK. We believe we have an important part to play in providing thinking and demonstrably effective models, which will help to tackle these challenges, and support the building of a fairer and greener future with communities at the centre.

Kersten England CBE Chair of trustees, The Young Foundation

The Young Foundation 6

Chief Executive’s Report Year to 31 December 2023

There are few organisations whose legacy, ambitions for social change match those of the Young Foundation. In 2023, we celebrated our seventy year legacy and launched our new five year strategy, with a vision that everyone in the UK might experience the power of participation to create a fairer future. This celebration was significant. In the context of so many economic, social and environmental challenges that face our country and the wider world in 2023, it is easy for research-based organisations to paint an ever more sophisticated picture of despair, or spend their time explaining to others what they must do to make transformative change. But The Young Foundation imbues the capacity and capability for making that transformative change in each and every one of its research efforts. It refuses to pass the mantle of responsibility of making that change to others. We recognise that each and every one of us are part of the system that make social change possible, and our job is not to make despair ever more convincing, but to make hope possible. Our commitment to research and innovation that is deeply rooted in people’s lived experiences in the UK today is unwavering.

Writing in June 2024, I see many fruits of our labours in 2023, including the delivery of a £10m fund to support community research networks, a unique opportunity to build the sustained infrastructure for involving more people and communities in the act of understanding and innovating on issues of material concern to so many across the UK. The winning of two ESRC centre bids focused on community participation and accelerating a socially just transition to net zero are also the result of significant groundwork laid in 2023 and a testament to the credibility and robust nature of our research and team. Our continued work to support The Crown Estate as they embed our unique approach to social value creation across their portfolio should serve to recognise that the work we are undertaking is important and of huge salience at this point in time.

You will see from this annual report a continued commitment to opening up access to knowledge, learning and opportunity for increasing numbers of people and communities, a deepening commitment to tackling our climate crisis and a portfolio of work in ‘places’ across the UK that is fundamentally community-involving in nature: our contribution to rebuilding the trust between people and the public institutions that is so important right now.

The financial sustainability of The Young Foundation continues to prove challenging, despite high demand for our work and the demonstrable impact we are creating in capability building to enable social innovation and systemic forms of social change. In 2023, in the face of necessary pay increases and inflationary pressures on our delivery costs, we have posted a deficit which was larger than forecast. A number of changes were made over the Summer of 2023, which ameliorated the potential impact of this downturn income recognition. This increased commercial discipline is being consistently implemented across 2024, and fundamental to achieving break-even in future years. There is no doubt that this is a difficult operating environment in which to flourish as a surplus generating charity, however there are many reasons to continue to grow our work to support social innovation and change across the UK, and I wanted to express my deep gratitude to the team at The Young Foundation and its board of trustees who are as one when it comes to our vision, mission and charity through such turbulent times.

Helen Goulden OBE Chief Executive Officer

The Young Foundation 7

Trustees’ report Year ended 31 December 2023

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 2023.

The financial statements have been prepared in accordance with the accounting policies set out on pages 28 to 32 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 2019 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).

The charity does not undertake any external fundraising and there have been no complaints made to the Fundraising Regulator during the current or prior year.

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Trustees’ report Year ended 31 December 2023

ACHIEVEMENTS AND PERFORMANCE

PERFORMANCE REVIEW

INTRODUCTION

Throughout its entire history, The Young Foundation has seized the opportunity of combining community, research, innovation and entrepreneurship to drive social change. 2023 continued that mission and journey, scaling our impact and reach into new sectors and challenges.

We know that when people and communities feel they have influence, agency and belonging, it will secure the greatest levels of well-being in our society and create transformative opportunities for societal change. Throughout 2023, The Young Foundation supported communities and institutions across the UK to understand, involve and innovate to make positive change together on the issues they care about, in ways that shift us towards a sustainable, more equitable society.

Across our work in 2023, our work continued to be rooted in three core assumptions:

These assumptions have framed our work across all areas in 2023 and we continued to expand our impact across multiple geographies and demographics, with a continued, strong focus on those most marginalised and vulnerable in our communities, who are most profoundly and adversely affected by this more turbulent economy and society.

Key priorities for 2023 included:

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Trustees’ report Year ended 31 December 2023

alongside sector spanning thought leadership, has taken our work and idea into new areas of driving change and impact.

KEY ACHIEVEMENTS

SCALE OF OUR WORK IN NUMBERS

38
FUNDERS
27
REPORTS &
PUBLICATIONS		 63
PROJECTS LIVE IN
2023
34
EVENTS
£742,425
DISTRIBUTED TO COMMUNITIES		 383
MEDIA PLACEMENTS

WORKING IN PLACE

The geographical inequalities across the UK and the large inequalities within the places we live are stark, persistent and entrenched. Community life, a functioning democracy, social infrastructure, high quality education, skills and training, safe and secure homes, access to healthcare, transport, good public services, secure, fairly paid jobs, green spaces: these are the uncontested foundations of a thriving society. And yet we see persistent failures to invest in these foundations. The widespread adoption of ‘place’ as an organising principle has seized by a very large number of public institutions and charitable foundations. The Young Foundation believe that an effective place-based approach requires new kinds of partnership, collaboration and innovation. Investment is not enough to create the change we need to see.

This means re-thinking how institutions work with communities and the voluntary sector, the role and responsibilities of the private sector and what new ways of working and structuring ourselves might tackle our many persistent environmental, social and economic challenges.

The examples below highlight just some of the ways in which The Young Foundation have worked in places in 2023 to support this re-shaping of systems.

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Trustees’ report Year ended 31 December 2023

Luton Fairness Task Force

Since 2019, The Young Foundation have been working with people and organisations in Luton who are committed to radically different ways of organising for social change. The heart of Luton’s 2040 strategy is to tackle inequality to ensure everyone in Luton has the opportunity to thrive and no-one has to live in poverty. Formally launched in November 2023 after a significant period of co-creation, the Luton Fairness Task Force is a cross-sector and community-centred group to identify and overcome structural barriers on a range of social, economic and environmental challenges facing the town. The Task Force is radical in its scope, but grounded in the strong civil society across the town and has strategic backing from Council officer and member leadership.

The Young Foundation has worked alongside the Council, local people and university staff to shape the architecture and ambition for the Fairness Task Force, which has already mobilised partnerships to deliver access to warm spaces, loneliness and energy advice for 10,000 residents, new community hubs, youth-led research into fairness and justice in the criminal justice system and many other community-generated ideas and activities. The Task Force has been focused on building trust, confidence and capacity to shift the needle on near-term, acute challenges that are affecting people’s lives today.

In the longer-term, and with £1.3m funding from the National Lottery Community Fund, it will forge new ways of working, new patterns of organising, across communities, state and business, where the idea of fairness (fairness of access to essentials, opportunity, rewards and treatment) is a core principle across Luton’s society and economy.

Place & Co-creation: Waltham Forest & 15 Minute Neighbourhoods

In 2023, we worked closely with the London Borough of Waltham Forest to devise their corporate strategy based on the concept of the 15 minute neighbourhood. This partnership with the Council has been a success, and over 400 people attended the launch of our report, and their strategy. This stood in stark contrast to what unfolded in Oxford at the same time, where Laurence Fox and others joined local protestors to the 15 minute concept as an attack on human freedom and evidence of the State’s desire to lock people into their communities. This serves to underscore the critical need for community involvement and ownership of key strategies for placemaking and reducing carbon emissions. The Oxford protests showed how poor engagement, or loss of trust between local government and local communities can be swiftly co-opted by those with more extreme narratives and agendas.

WORKING WITH BUSINESS

2023 saw a significant shift in The Young Foundation’s engagement with the private sector alongside the renewal of an ethics framework to determine our criteria for engagement with different kinds of businesses and organisations.

We launched our report analysing FTSE100 company commitments to social outcomes, in recognition that while many were clear on the focus of their environmental commitments, social

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Trustees’ report Year ended 31 December 2023

value remained a murky and arbitrary commitment, where no real standards or goals were clear. The Quest for the S of ESG report achieved substantial media coverage and set out a new framework for plotting a journey towards social value which mirrors the Scope 1-3 GHG Emissions Framework with which many businesses are now familiar. This is potentially a substantive systemic contribution to the debate on the social value debate and has been effective in challenging approaches which count inputs and outputs, towards something which builds accountability for outcomes of business contributions. This has led to The Young Foundation being appointed as a key knowledge partner to The Crown Estate where The Young Foundation’s ‘Four Scope Social Framework’ has been adopted at an enterprise level, in £15bn organisation.

The Quest for the S of ESG was an unfunded piece of work, undertaken in the margins of our funded operations. It demonstrates the imagination and commitment of Young Foundation staff to pursue important work which has resonance across whole sectors. As we move into 2024, we have seen significant and sustained interest in its value in supporting social strategies for major landowner such as The Crown Estate.

PLANET

In 2022, The Young Foundations’ Climate Challenge Cup and official participation in COP 26 in Glasgow provided a huge spur to our commitment to tackling the climate emergency in 2023. The imperative for decarbonisation and nature recovery is not new to The Young Foundation, however the concern that the poorest in our society would likely bear the brunt of both climate

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Trustees’ report Year ended 31 December 2023

change impacts and the transition to net zero, prompted us to set a new course for supporting a socially just transition.

Our extensive programme, funded by the Nuffield Foundation, considers the evidence and assesses the capacity of every place and community to participate in net zero. We explored how policy around transition to net zero can avoid or exacerbate social, economic, and environmental injustice affecting the poorest people in UK society, and how this varies across every local area in the UK. The government’s own analysis in 2021 stated that, if managed effectively by policy, there can be significant gains from net zero, and benefits in terms of population health and wellbeing. But we need to organise policy differently to accelerate and empower innovation towards net zero.

This catalytic piece of research to explore household vulnerability in the transition to net zero, which we took to various party conferences and published a well-received policy paper providing a new framework for how to design policy with and for households and communities that can support even the most vulnerable through the uncertain but necessary process of net zero transition.

The underpinning research identified many barriers to participation but also many opportunities for how participation in low-carbon living can be built across different areas of household and community life – and the potential positive benefits people see transition having for their lives at home, their local communities, and their experience of fairness in key areas of life. The work built from understanding, in the round, how areas of life will change for households in transition to net zero and the way the risks of exclusion, types of participation, and mediating effect of place and community conditions interact to make change harder or easier.

This work has led the development of the Net Zero Readiness Index, which enables every local authority across England visibility of their readiness to transition to a net zero economy and the likely impact on their most vulnerable communities. In recognition of the importance of this work, a new Director of Sustainability and Just Transition was created to rapidly accelerate policy and practice support for Governments and businesses seeking to realise the potential for a net zero transition to benefit poorer households and populations.

PROSPECTS

Whether people feel in control of their own lives and have access to opportunities to fulfil their ambitions and potential is fundamental to individual and community well-being. The Young Foundation has a decades long legacy of opening up access to knowledge, learning and opportunity for people across the UK and in 2023, we continued to build on that legacy. In 2023, we made our mission to expand our commitment to people from across the country to engage in research, social action and innovation to improve their own prospects, and those of others around them.

In March we published The Peer Action Collective’s report into youth experiences of violence: ‘Leading research, driving change’ which was also launched in Parliament. This work was based on insights from 4,608 children and young people aged 10 to 20 in England and Wales, funded by the Youth Endowment Fund, the #iwill Fund and the Co-op Group. It was led by 120 Peer Researchers, aged 16 to 25, who were trained and supported by The Young Foundation and

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Trustees’ report Year ended 31 December 2023

local Delivery Partners. The headline recommendations are here. The Peer Action Collective is building a youth movement for tackling serious youth violence and The Young Foundation’s role as national partner has been extended for a further five years, giving many more thousands of young people the opportunity to engage in research and social action on an issue which so profoundly affects them.

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Trustees’ report Year ended 31 December 2023

Across the capital, 2023 saw the launch of two reports in partnership with the GLA associated with the experiences of workers and those seeking employment. Rights and risks: Migrant labour exploitation in London revealed disturbing insights into the experiences of migrant workers. In response to the report, the Mayor of London announced an additional £750,000 fund to tackle the exploitation of migrant workers. In July, we launched our No Wrong Door report. The Mayor’s No Wrong Door programme was set up as part of London’s recovery from the pandemic, to integrate skills and employment services and consider their relationship with other public and community services. Our work has shown how this approach is only partly working and must become more integrated. It also shows what already know to be true: we need relational, community-based working, where the role of smaller units of provision feature in policy-making and are accommodated in delivery models and measurement which drives outcomes, not outputs. The launch of the report at Toynbee Hall was led by Deputy Mayor of London Jules Pipe.

Community Leadership

In 2023, The Young Foundation published a provocation report setting out the value of a more community-centred policy agenda for Government. It articulated five key infrastructure priorities, which are required to build trust, participation, and more collective ownership of complex challenges: 1. Local, social infrastructure that brings people together, to new opportunities and safety 2. An education system that builds capabilities and expectations of civic participation 3. Public sector capabilities and structures that sustain civic engagement in democracy and change 4. An expanded research and innovation system, which legitimises

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Trustees’ report Year ended 31 December 2023

community participation 5. Incentives for private sector business and investors to direct their social and net zero strategies to transformational ends for vulnerable communities.

This building of a more community and civil society involving approach to government is not possible without some support for those inside and outside government to exercise community leadership. In 2023, The Young Foundation continued its commitment to developing the leadership necessary to realise the potential of communities to take action on the issues they care about and the absorptive capacity and capability of local authorities and other institutions to work more effectively and productively with community groups. Launched in 2020, with funding from Local Trust, the Community Leadership Academy provides support and skills development for those involved in the Big Local programme, helping them to develop and share knowledge to benefit the whole community. This leadership work continued throughout 2023, with continued recognition of its benefits to individual community leaders, their communities and the local systems in which they are operating. Alongside this, the Greater London Authority funded programme of “Civic Futures” continued to provide project-based leadership building capabilities across London councils and civil society organisations.

LOOKING FORWARD

In November 2023, The Young Foundation launched its new five year strategy. In it, we set out our commitment to encourage and enable active participation, co-operation and mutual responsibility to tackle some of our most serious crises.

Across The Young Foundation, we will use our capabilities in innovation, research, investment, campaigning, and incubation of ground-breaking initiatives to deliver our mission. This means supporting participation in democracy and social justice, through a range of means and channels. All of which build on the foundations we continued to lay across 2023.

FINANCIAL REVIEW

Results for the year

The reported deficit in the year to December 2023 of £1,314k reflects a deficit of £1,039k on restricted funds (2022: £385k surplus) and a deficit of £275k on unrestricted funds (2022: £565k deficit). These figures are before transfers between funds.

Income in the year, of £2,335k (2022: £2,808k) is down, but is skewed by movements in restricted income recognised. Unrestricted income was £1,840k (2022: £1,306k)

Charitable expenditure of £3,696k (2022: £2,830k) is a 31% increase on 2022 expenditure.

Restricted income was £495k. In 2022, the charity secured a large grant (£990k) from UKRI for the Community Grant Fund, making up most of the restricted income in 2022 of £1,503k.

After transfers between funds, there is an unrestricted deficit of £280k (2022: £305k). As noted below the charity continues to operate within its reserves policy. The focus for 2023 was on medium term growth whilst retaining appropriate margins on projects to ensure that support costs are funded, as much as possible. Unrestricted income from grants and earned fees from charitable activities increased by 35% from £1,233k to £1,669k, although this was short of the growth target set.

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Trustees’ report Year ended 31 December 2023

Reserves policy and financial position

Total reserves at 31 December 2023 were £3,711k (2022: £5,026k) of which £694k (2022: £1,728k) were restricted for specific purposes. The designation for the Property Fund was adjusted from £2,900k to £2,400k in the year. Funds designated for YAIF management continue to be drawn down for that purpose. Excluding the designated funds and fixed assets, the free reserves of the charity at 31 December 2023 were £536k (2022: £306k) which corresponds to approximately 2.9 months of unrestricted expenditure (2022: 1.7 months).

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 staff costs and six months’ other unrestricted expenditure. At 31 December 2023, the minimum reserve figure was £1,334k (2022: £1,025k). The total free reserves at 31 December 2023 were £3,018k (2021: £3,298k) which represents 16.7 months unrestricted expenditure.

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. 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 and also invested in the Cazenove Charity Responsible Multi-Asset Fund in 2023. The Cazenove fund aims to provide 4% income and capital growth in line with inflation.

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 2023. In addition to the Board of Trustees there is a Resources, Risk & Assurance Committee (RRAC) which held five full meetings in 2023. The Committee was chaired by the treasurer, Jonathan Sobczyk Boddington. The People & Culture and Governance Committees met during 2023.

The following trustees were in office at 31 December 2023 and served throughout the year except where shown.

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Trustees’ report Year ended 31 December 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

----- Start of picture text -----
Appointments/ Board meetings attended in
Trustees resignations 2023 (and number available)
Kersten England 5(5)
Eddy Adams 4(5)
Jonny Sobczyk Boddington 4(5)
Chris Dobson 5(5)
Pete Gladwell Resigned 2 May 2023 2(2)
Kate Hainsworth 3(5)
Rizwana Hamid 4(5)
Stephen Jacobs 5(5)
Henry Kippin 1(3)
Mike Omoniyi 3(5)
Matthew Taylor 3(5)
Gareth Williams Resigned 2 May 2023 0(2)
----- End of picture text -----

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.

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Trustees’ report Year ended 31 December 2023

Key risks

The key risks identified by the Board are 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. 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. Cost inflation has also become a key risk and we have put measures in place to mitigate this.

Staff engagement

The Young Foundation has 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.

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.

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Trustees’ report Year ended 31 December 2023

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.

These financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

This report was approved by the trustees on 29th July 2024 and signed on their behalf by:

Kersten England CBE

Chair of the Board of Trustees

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Independent auditor’s Report Year ended 31 December 2023

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 2023 which comprise the statement of financial activities, the balance sheet, and 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 other information comprises the information included in the report and financial statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the report and financial statements. 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.

The Young Foundation 21

Independent auditor’s Report Year ended 31 December 2023

Other information (continued)

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

The Young Foundation 22

Independent auditor’s Report Year ended 31 December 2023

Responsibilities of trustees

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

In preparing the financial statements, the trustees are responsible for assessing the 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 23

Independent auditor’s Report Year ended 31 December 2023

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 is available 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.

29 July 2024

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

The Young Foundation 24

Statement of financial activities Year ended 31 December 2023

Notes Unrestricted
funds
£		 Restricted
funds
£
2023
Total
funds
£		 Restricted
funds
£
2023
Total
funds
£		 Unrestricte
d
funds
£		 Restricted
funds
£		 2022
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
Net losses on social
investments
Total expenditure
Net gains/(losses) on listed
investments
8
Net (expenditure)/ income
before transfers
Transfers between funds
12
Net (expenditure)/ income and
net movement in funds for the
year
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 4,000
141,666
1,668,507
25,707		 -
-
495,391
-		 4,000

141,666
2,163,898

25,707		 -
55,500
1,233,290
17,117		 -
-
1,502,506
-		 -
55,500
2,735,796
17,117
1,839,880 495,391 2,335,271 1,305,907 1,502,506 2,808,413
2,170,794
16,791		 1,525,698
3,696,492
9,041
25,832		 1,765,373
59,036		 1,065,553
51,501		 2,830,926
110,537
2,187,585
72,974		 1,534,739
-		 3,722,324

72,974		 1,824,409
(46,926)		 1,117,054
-		 2,941,463
(46,926)
(274,731)
(5,215)		 (1,039,348)
(1,314,079)
5,215
-		 (565,428)
260,228		 385,452
(179,976)
(260,228)
-
(279,946)
3,297,529		 (1,034,133)
(1,314,079)
1,728,046
5,025,575		 (305,200)
3,602,729		 125,224
1,602,822		 (179,976)
5,205,551
3,017,583 693,913 3,711,496 3,297,529 1,728,046 5,025,575

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

The notes on pages to 33 to 45 form part of these financial statements.

The Young Foundation 25

Balance sheet 31 December 2023

Notes 2023
£		 2023
£		 2022
£		 2022
£
Fixed assets
Tangible assets
7
Investments
8
Current assets
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		 24,653
2,951,621		 2,976,274
735,222		 26,570
2,929,690		 2,956,260
2,069,315
912,812
460,212		 1,149,862
1,401,650
1,373,024
(637,802)		 2,551,512
(482,197)
3,711,496 5,025,575
561,431
2,456,152
693,913		 332,549
2,964,980
1,728,046
3,711,496 5,025,575

These financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The financial statements were approved by the Trustees on 29th July 2024 and signed on their behalf, by:

Kersten England CBE, Chair of Trustees

The Young Foundation

Company registration number 01319183 (England and Wales)

The notes on pages 33 to 45 form part of these financial statements.

The Young Foundation 26

Statement of cash flows 31 December 2023

Notes 2023
£		 2022
£
Cash outflow from operating activities:
Net cash used in operating activities
A
Cash outflow from investing activities:
Interest and dividends from investments
Purchase of tangible fixed assets
Purchase of investments
Repayments of investments
Net cash outflow from investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2023
B
Cash and cash equivalents at 31 December 2023
B		 (1,110,355) (132,196)
153,666
(9,960)
(374,208)
21,899		 27,500
(4,307)
(2,298,323)
136,712
(208,603) (2,138,418)
(1,318,958)
1,903,327		 (2,270,614)
4,173,941
584,369 1,903,327

Notes to the statement of cash flows for the year to 31 December 2023

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

----- Start of picture text -----
2023 2022
£ £
Net movement in funds (as per the statement of financial activities) (1,314,079) (179,976)
Adjustments for:
Depreciation charge 14,923 13,872
Impairment of social investments 25,832 110,538
Unrealised (gains)/losses on listed investments (72,974) 46,926
Interest and dividends from investments (141,666) (55,500)
Decrease/(Increase) in debtors 225,050 (221,225)
Increase in creditors 152,559 153,169
Net cash used in operating activities (1,110,355) (132,196)
----- End of picture text -----

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2023
£		 2022
£
Cash at bank and in hand
Cash held by investment managers
Instant access cash accounts
Total cash and cash equivalents		 377,913
124,157
82,299		 669,351
501,677
732,299
584,369 1,903,327

C Analysis of changes in net funds

Analysis of changes in net funds
Cash
Cash held by investment managers
Cash equivalents
Total		 At 1
January
2023
£		 Cash
flows
£		 At 31
December
2023
£
669,351
501,677
732,299
1,903,327		 (291,438)
(377,520)
(650,000)
(1,318,958)		 377,913
124,157
82,299
584,369

The Young Foundation 27

Principal accounting policies 31 December 2023

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 2023.

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:

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.

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.

The Young Foundation 28

Principal accounting policies 31 December 2023

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.

Designated funds are set aside at the discretion of the trustees for specific projects or strategic priorities.

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.

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.

The Young Foundation 29

Principal accounting policies 31 December 2023

Income recognition (continued)

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.

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:

The Young Foundation 30

Principal accounting policies 31 December 2023

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. All gains and losses on social investments are taken to the Statement of Financial Activities as they arise and are recognised within charitable activities.

Listed Investments

Listed investments that are a form of basic financial instrument are initially recognised at their transaction value and subsequently measured at their fair value as at the reporting date using the closing quoted market price.

All gains and losses on investments are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and transaction value. Unrealised gains and losses for the year are calculated as the difference between the fair value at the year end and the opening carrying value, or the transaction value if acquired in the financial year. Realised and unrealised gains and losses on investments are combined in the Statement of Financial Activities.

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.

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.

The Young Foundation 31

Principal accounting policies 31 December 2023

Leased assets

Rentals applicable to operating leases where substantially all 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 32

Notes to the financial statements Year ended 31 December 2023

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

----- Start of picture text -----
2023
Unrestricted Restricted Total
funds funds funds
£ £ £
Communities 387,198 192,212 579,410
Research 704,142 48,330 752,472
Social Investment and Innovation 577,167 254,849 832,016
2023 Total funds 1,668,507 495,391 2,163,898
2022
Unrestricted Restricted Total
funds funds funds
£ £ £
Communities 415,406 245,269 660,675
Research 536,045 257,237 793,282
Social Investment and Innovation 281,839 1,000,000 1,281,839
2022 Total funds 1,233,290 1,502,506 2,735,796
----- End of picture text -----

1b Income from charitable activities – other income

----- Start of picture text -----
2023
Unrestricted Restricted Total
funds funds funds
£ £ £
-
VAT recovery 21,239 21,239
-
Speaking fees, events and publications 3,593 3,593
Other 875 - 875
2023 Total funds 25,707 - 25,707
2022
Unrestricted Restricted Total
funds funds funds
£ £ £
VAT recovery 12,774 — 12,774
Speaking fees, events and publications 3,770 — 3,770
Other 573 — 573
2022 Total funds 17,117 — 17,117
----- End of picture text -----

The Young Foundation 33

Notes to the financial statements Year ended 31 December 2023

2 Income from investments

Income from investments
Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£
Interest receivable on cash deposits
Income receivable from investment fund
2023 Total funds		 33,999
107,667		 -
-		 33,999
107,667
141,666 - 141,666
Unrestricted
funds
£
8,587
46,913
55,500		 Restricted
funds
£		 2022
Total
funds
£
Interest receivable on cash deposits
Income receivable from investment fund
2022 Total funds		 -
-
-		 8,587
46,913
55,500

3 Expenditure on charitable activities

----- Start of picture text -----
Unrestricted Restricted 2023
Unrestricted support Restricted support Total
direct costs costs direct costs costs funds
£ £ £ £ £
Communities 315,293 239,874 458,192 84,949 1,098,308
Research 411,293 319,831 238,652 - 969,776
Social Investment and Innovation 344,788 539,715 743,905 - 1,628,408
2023 Total funds 1,071,374 1,099,420 1,440,749 84,949 3,696,492
Unrestricted Restricted 2022
Unrestricted support Restricted support Total
direct costs costs direct costs costs funds
£ £ £ £ £
Communities 271,592 198,550 367,409 - 837,551
Research 330,386 555,919 565,177 - 1,451,482
Social Investment and Innovation 210,358 198,568 132,967 - 541,893
2022 Total funds 812,336 953,037 1,065,553 - 2,830,926
----- End of picture text -----

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

----- Start of picture text -----
2023 2022
£ £
Development, Administration, Finance and Human Resources 1,057,316 912,959
Information technology 3,465 1,535
Governance costs
. Auditor’s remuneration 15,950 16,650
. Staff costs 22,689 21,893
1,099,420 953,037
----- End of picture text -----

The Young Foundation 34

Notes to the financial statements Year ended 31 December 2023

Staff costs and remuneration of key management personnel
2023
£		 2022
£
Wages and salaries
Social security costs
Other pension costs		 1,531,166
167,860
184,252
1,883,278		 1,452,778
159,623
179,990
1,792,391

The average head count during 2023 was 36 (2022 – 35).

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

2023 2022
Charitable activities
Support		 25.7
7.5		 24.1
6.0
33.2 30.1

The number of higher paid employees was:

2023
No.		 2022
No.
£60,000 - £70,000
£80,001 - £90,000
£100,001 - £110,000		 2
2
1
5		 -
4
1
5

These employees are accruing retirement benefits under either a defined benefits or defined contribution scheme. Employer contributions made in respect of these individuals totalled £55,488 (2022 – £50,295).

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 £556,422 (2022 – £549,042). The cost of key leadership personnel employed as contractors on an interim basis during the year was £nil (2022: £nil).

No remuneration was paid to any trustee during the year. Trustees’ travel and accommodation expenses of £831 were reimbursed during the year to four trustees. (2022 – £288).

The Young Foundation 35

Notes to the financial statements Year ended 31 December 2023

5 Net expenditure for the year

This is stated after charging:

----- Start of picture text -----
2023 2022
£ £
----- End of picture text -----

£ £
Auditor’s remuneration (excluding VAT):
. Audit – current year 15,950 14,500
. Audit – prior year - 2,150
Depreciation 14,923 13,872

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

----- Start of picture text -----
IT Office
equipment equipment Total
£ £ £
Cost
-
At 1 January 2023 45,514 45,514
Additions 9,960 3,046 13,006
At 31 December 2023 55,474 3,046 58,520
Depreciation
-
At 1 January 2023 18,944 18,944
Charge for the year 14,669 254 14,923
At 31 December 2023 33,613 254 33,867
NBV at 31 December 2023 21,861 2,792 24,653
-
NBV at 1 January 2023 26,570 26,570
----- End of picture text -----

8 Investments

a)
Social investments
b)
Listed investments
Total at 31 December		 2023
£		 2022
£
128,885
2,822,736
2,951,621		 176,616
2,753,074
2,929,690

The Young Foundation 36

Notes to the financial statements Year ended 31 December 2023

8. Investments (continued)

a)
Social investments		 YAIF Social
Investment
2023
£		 YAIF Social
Investment
2022
£
Fair value at 1 January 2023
Impairment (charge)/reversal
Repayments
Fair value at 31 December 2023
Historic cost		 176,616
(25,832)
(21,899)		 423,866
(110,538)
(136,712)
128,885 176,616
744,000 806,918

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 2023, the split was as follows: 2023
£		 2022
£
Convertible loan notes/Equity
Revenue participation loans		 63,985
64,900
128,885		 63,985
112,631
176,616

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 2023, there was a reduction in the impairment provision of £39,590, representing a reversal of previously impaired assets, however this was offset by a further impairment provision of £65,422. 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.

The Young Foundation 37

Notes to the financial statements Year ended 31 December 2023

8 Investments (continued)

Listed investments (continued)

Listed investments(continued)
b)
Listed investments
Market value at 1 January 2023
Additions
Movement in cash
Unrealised Investment Gain/ (Loss)
Market value at 31 December 2023
Historic cost		 Cazenove
2023
£		 Cazenove
2022
£
2,753,074
374,208
(377,520)
72,974		 -
2,298,323
501,677
(46,926)
2,822,736 2,753,074
2,800,000 2,800,000

100% of the listed investment portfolio is held within the Cazenove Charity Responsible Multi Asset Fund.

----- Start of picture text -----
At 31 December 2023, the split of the fund’s assets was as follows: 2023 2022
£ £
Fixed interest 329,450 273,765
UK equities 80,170 84,549
Overseas equities 1,872,211 1,540,401
Property 137,588 149,912
Alternative investments 279,160 202,770
Cash 124,157 501,677
2,822,736 2,753,074
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The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review section of the Trustees’ Annual Report. The main risk to the Charity from financial instruments in the future lies in the combination of uncertain investment markets and volatility in yield, which is mitigated through the Charity’s investment policy.

8 Debtors and prepayments

Debtors and prepayments
2023
£		 2022
£
Trade debtors
Prepayments and accrued income		 257,948
654,864
912,812		 337,548
812,314
1,149,862

9 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2023
£		 2022
£
Trade creditors
Other creditors
Accrued expenditure
Deferred income		 114,817
153,316
137,125
232,544
637,802		 115,412
121,111
73,229
172,445
482,197

The Young Foundation 38

Notes to the financial statements Year ended 31 December 2023

9 Creditors: amounts falling due within one year

Included in creditors is deferred income as set out below:

2022
£		 2022
£
Deferred income at 1 January 2022
Resources deferred in the year
Amounts released in the year
Deferred income at 31 December 2022		 172,445
232,544
(172,445)
232,544		 99,598
172,445
(99,598)
172,445

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

10 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.

11 Movement in funds

Movement in funds
Balance at
1 January
2023
£
Net
income/
(expenditure)
£		 Transfers
£		 Balance at
31
December
2023
£
Restricted funds
Unrestricted funds
. General fund
Designated funds
. YAIF Management Fund
. Property fund
Total funds		 1,728,046 (1,039,348)
332,549
(265,903)
64,980
(8,828)
2,900,000
-		 5,215
494,785
-
(500,000)		 693,913
561,431
56,152
2,400,000
3,297,529
(274,731)		 (5,215) 3,017,583
5,025,575 (1,314,079) - 3,711,496

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 was designated by the trustees for possible future use in the purchase of a property. During 2023, the trustees amended this designated sum to £2.4 million.

During 2022, UBS allowed its YAIF restricted funds to be reclassified as unrestricted. £100,000 of these funds were designated to fund the future management costs of the YAIF investments.

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

The Young Foundation 39

Notes to the financial statements Year ended 31 December 2023

11 Movement in funds (continued)

Balance at
1 January
2022
£		 Net
income
£		 Transfers
£		 Balance at
31 December
2022
£
Restricted funds
Unrestricted funds
. General fund
Designated funds
. YAIF Management Fund
. Property fund
Total funds		 1,602,822
702,729
-
2,900,000		 385,452
(530,408)
(35,020)
-		 (260,228)
160,228
100,000
-		 1,728,046
332,549
64,980
2,900,000
3,602,729 (565,428) 260,228 3,297,529
5,205,551 (179,976) - 5,025,575

The Young Foundation 40

Notes to the financial statements Year ended 31 December 2023

12 Restricted fund analysis

The movement in restricted funds in 2023 was:

----- Start of picture text -----
Balance at Net Balance at
1 January Income Expenditure investment Transfers 31 December
2023 loss 2023
£ £ £ £ £ £
Research
EU Horizon 20 20- Clever Cities 14,039 - (107,891) - - (93,852)
NCS Trust CIC Civic Journey 277,808 (30,738) (259,950) - 12,880 -
EU Horizon 20 20- UPLIFT 25,596 18,856 (44,452) - - -
Kings' College London -
Undisciplined Spaces 55,528 3,000 (35,677) - - 22,851
Spirit of 2012 - 39,535 (37,011) - - 2,524
University of Birmingham - Excite - 17,677 (17,677) - - -
Total Research 372,971 48,330 (502,658) - 12,880 (68,477)
Communities
Nuffield Foundation Net Zero 89,318 64 (74,184) - - 15,198
Power To Change Legacy Grant 34,107 - (16,185) - - 17,922
Power to Change Strategic Grant 11,163 11,250 (11,250) - - 11,163
Power to Change Dashboard Grant 8,845 - (133) - - 8,712
DCMS Volunteering Journeys 45,640 - (30) - - 45,610
Research England-Sheffield Hallam
University- National Civic Impact - 155,902 (155,902) - - -
Accelerator
British Academy Place Sensitive
Participatory Policy - 24,996 (21,450) - - 3,546
Total Communities 189,073 192,212 (279,134) - - 102,151
Social Innovation and Practice
The Young Academy Social
Incubator Fund Grant 96,851 - - (9,041) (7,665) 80,145
- -
UKRI Community Grant Fund 990,000 254,849 (742,426) 502,423
Cabinet Office BOOST 50,804 - (1,480) 49,324
- - - -
YA Revenue Participation 13,260 13,260
- - - -
BEIS COP26 Climate Challenge Cup 15,087 15,087
Total Social Innovation and
Investment 1,166,002 254,849 (743,906) (9,041) (7,665) 660,239
Total Restricted Funds 1,728,046 495,391 (1,525,698) (9,041) 5,215 693,913
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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 a transfer of £12,880 was made from unrestricted funds to the NCS Trust CIC Civic Journey restricted fund to support the work of that fund. A transfer of £7,665 was made from The Young Academy Social Incubator restricted fund to unrestricted funds, following agreement from one of the original grantors of The Young Academy Incubator Fund that funds relating to its original grant may be used for the general purposes of The Young Foundation.

The Young Foundation 41

Notes to the financial statements Year ended 31 December 2023

12 Restricted fund analysis (continued) The movement in restricted funds in 2022 was:

----- Start of picture text -----
Balance at Net investment Balance at
1 January gain 31 December
2022 Income Expenditure £ Transfers 2022
£ £ £ £ £
Research
EU Horizon 20 20- Clever Cities 31,191 - (17,152) - - 14,309
NCS Trust CIC Civic Journey 461,421 160,000 (343,613) - - 277,808
YFF Kickstart 3,502 11,544 (15,046) - - -
DWP Kickstart 7,161 43,173 (50,334) - - -
EU Horizon 20 20- UPLIFT 172,912 (20,105) (127,211) - - 25,596
Calouste Gulbenkian Foundation
- Battersea Arts Centre 589 - - - (589) -
UPP Foundation - Civic University 4,316 - (4,210) - (106) -
Kings' College London -
Undisciplined Spaces - 60,000 (4,472) - - 55,528
Bexley NRPF Ethnography - (4,500) - - 4,500 -
Trust for London - 7,127 (7,127) - - -
Total Research 681,092 257,239 (569,165) - 3,805 372,971
Communities
Nuffield Foundation Net Zero 233,478 - (144,160) - - 89,318
Power To Change Legacy Grant 26,900 50,000 (42,793) - - 34,107
Power to Change Strategic Grant 3,750 45,000 (37,587) - - 11,163
Power to Change Dashboard
Grant - 9,000 (155) - - 8,845
DCMS Volunteering Journeys - 141,267 (135,007) - 39,380 45,640
Total Communities 264,128 245,267 (359,702) - 39,380 189,073
Social Innovation and
Investment
The Young Academy Social 96,851
Incubator Fund Grant 423,866 - - (51,501) (275,514)
UBS AG - Young Academy Fund
- -
Management 18,143 10,000 (244) (27,899)
- - - -
UKRI Community Grant Fund 990,000 990,000
Cabinet Office BOOST 171,345 - (120,541) - - 50,804
- - - -
YA Revenue Participation 13,260 13,260
BEIS COP26 Climate Challenge
- - -
Cup 30,988 (15,901) 15,087
Total Social Innovation and
Investment 657,602 1,000,000 (136,686) (51,501) (303,413) 1,166,002
Total Restricted Funds 1,602,822 1,502,506 (1,065,553) (51,501) (260,228) 1,728,046
----- End of picture text -----

The Young Foundation 42

Notes to the financial statements Year ended 31 December 2023

13 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Restricted
£		 2023
Total
£
General
£		 Designated
£
Tangible fixed assets
Social Investments
Listed Investments
Net current assets		 24,653
48,739
366,584
121,455		 -
-
2,456,152
-		 -
80,146
-
613,767		 24,653
128,885
2,822,736
735,222
561,431 2,456,152 693,913 3,711,496
Unrestricted Unrestricted Restricted
£		 2022
Total
£
General
£		 Designated
£
Tangible fixed assets
Social Investments
Listed Investments
Net current assets		 26,570
79,764
-
226,215		 -
-
2,753,074
211,906		 -
96,852
-
1,631,194		 26,570
176,616
2,753,074
2,069,315
332,549 2,964,980 1,728,046 5,025,575

14 Related party transactions

During the year a trustee donated £1,000 (2022 - £Nil) to The Young Foundation’s event to celebrate 70 years since the foundation of The Institute of Community Studies.

15 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 £140,111 (2022 – £143,143). This includes £Nil (2022 – £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 2023 (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 Young Foundation 43

Notes to the financial statements Year ended 31 December 2023

The 2023 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 £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion. An alternative way of expressing the position is that the Scheme’s assets were sufficient to cover 111.3% of its liabilities – this percentage is known as the funding level of the Scheme.

The surplus has been determined taking into account a number of changes which took effect from 1[st] April 2022.

Previous benefits in the Scheme

The Young Foundation 44

Notes to the financial statements Year ended 31 December 2023

15 Commitments (continued)

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.

Defined benefit liability numbers for the scheme for accounting purposes have been produced using the following assumptions as at 31 March 2022 and 2023:

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

These projections are made on the basis that:

----- Start of picture text -----
2023 2022
----- End of picture text -----

Scheme assets
Total scheme liabilities
FRS 102 total scheme surplus/ (deficit)
FRS 102 total funding level		 £73.1bn
£65.7bn
£7.4bn
111%		 £88.9bn
£91.0bn
(£2.1bn)
98%

The Young Foundation 45