2023-06-30-accounts

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CARE International UK Annual Report 2022-23

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CARE International UK Annual Report 2022/23

Strategic Report	1
UN Sustainable Development Goals	2
Message from CARE International UK’s Chair	3
CARE International UK’s Goals	5
The Year in Focus	6
Lendwithcare: Changing Lives with Economic Opportunity	12
Business With CARE	13
Fundraising	15
Financial Performance	16
Plans for the Future	18
Objectives for 2024	20
Directors’ Report	22
Fundraising Compliance Statement	26
Public Benefit Statement	27
Internal Control Environment	28
Statement of Trustees’ Responsibilities in Respect of the Trustees’ Annual Report and
Financial Statements	34
Independent Auditor’s Report to the Members of CARE International UK	36
Consolidated Statement of Financial Activities	40
Group and Charity Balance Sheets	41
Consolidated Statement of Cash Flows	43
Notes to Accounts	44
Legal and Administrative Information	76

Strategic Report

Our Vision, Mission and Focus

Vision

A world of hope, inclusion, and social justice, where poverty is overcome, and all people live in dignity and security.

Mission

Save lives. Defeat poverty. Achieve social justice.

Focus

We cannot overcome poverty until everyone, everywhere has equal rights and opportunities – that’s why women and girls are central to our work.

CARE in Numbers

In 2022/23, we reached 874,433 people across:

42 countries
83 programmes

Numbers of people participating in each of our programmes:

Gender equality programming: 90,033

Humanitarian crisis: 530,314

Healthcare and support: 180,558

Food, water, and nutrition: 450,757

Women’s economic justice: 41,799

Climate justice: 57,097

UN Sustainable Development Goals

At CARE International UK, we look to understand the impact of our work by evaluating our programmes. This helps us measure our progress against our 2030 targets and track our contribution to the UN’s Sustainable Development Goals.

Evaluations done across CARE International UK programmes since 2020 show the number of people supported against the following Goals:

End poverty Zero everywhere hunger 1,116,114 291,201

Good health and wellbeing 172,442

Quality education 75,342

Gender equality 432,509

Clean water and sanitation 162,284

Decent work and economic growth 204,317

Reduced inequalities 864,069

Sustainable cities Climate and communities action 14,744 1,350

Peace, justice and strong institutions 135,475

Message from CARE International UK’s Chair

This annual report covers the 12 months from 1[st ] July 2022 to 30[th ] June 2023.

CARE International’s support to those whose lives have been severely affected by ongoing conflict and the climate crisis dominated much of our humanitarian work this year.

The climate crisis is causing more frequent, more extreme weather events, which increasingly drive CARE International’s humanitarian assistance. This was the case in August 2022, when devastating floods hit Pakistan. CARE International launched the Pakistan Floods Appeal alongside the Disasters Emergency Committee (DEC), raising £242,910 from over 2,900 donations. CARE Pakistan supported more than 11,000 people in the wake of the floods, working alongside national partner, Thardeep Rural Development Programme, to deliver emergency and rehabilitation work in the worst affected areas of Sindh district.

The devastating earthquakes that hit Turkey and Syria in February 2023 killed more than 50,000 people and displaced at least 2.2 million in the middle of a harsh winter. A DEC appeal raised an incredible £150 million, of which CARE International was awarded £3.3 million to support the relief effort. Alongside the DEC appeal, CARE International UK raised over £629,866 from 6,824 donations – one of the largest emergency appeal responses in our history. CARE International worked closely with local partners to support communities’ immediate needs – through food, water, and shelter – as well as their longer-term economic recovery. To help families secure their incomes, over 300 people were supported with ‘cash-for-work’ activities, while businesses were supported with grants to help revitalise local markets disrupted by the earthquake.

Unfortunately, large scale humanitarian disasters like those in Pakistan, Turkey and Syria are on the rise. As the number of people in need of humanitarian assistance reaches unprecedented levels, it’s critical that the needs of communities impacted by these events are heard in the design and delivery of humanitarian aid. This is particularly true for women and girls, who are often hit hardest by conflict and disaster but rarely involved in decisions around the humanitarian response.

CARE International UK’s Women Lead in Emergencies (Women Lead) approach responds to this: it shifts power and resources directly to women living through crisis and supports them to overcome barriers to participating in decision-making. Throughout 2022-2023, our Women Lead programming continued to scale up in conflict-affected contexts in Ethiopia, Mali, and Ukraine. Across these programmes, Women Lead is supporting women on the frontline of crisis to grow in confidence and skills – and to influence the decisions made about their lives.

At the end of this year, we bid farewell to our interim Chief Executive, Eamon Cassidy, after 12 months in the post and welcomed our new permanent CEO, Helen McEachern. Eamon was instrumental in leading the creation of CARE International UK ’s new three-year Strategy 2023-2026.

I want to extend sincere thanks to our generous supporters during this year. We are particularly grateful to individuals who have continued to support CARE International despite steep increases in the cost of living in the UK. Special thanks, also, to the People’s Postcode Lottery and their players, whose ongoing support means we can respond quickly and communicate widely when humanitarian crises hit. In addition, we are very grateful to our many corporate partners who have supported us this year.

As an organisation, we recognise that we must reflect the changes we want to see in the world. That means we must aim to become a more diverse, inclusive, and equitable organisation that is actively anti-racist, and bases its decisions, funding, and relationships on feminist leadership principles. To achieve this, I am pleased that our new three-year Strategy commits to a new set of principles that reflect our equity, diversity, and inclusion goals in everything we do.

Finally, I would also like to thank all staff, volunteers, and Trustees of CARE International UK. We continue to be motivated by working in solidarity with our global colleagues, local partners, and women activists to help them resolve challenges they face within their own communities. We are excited as we look to the implementation of our new Strategy, which aims to promote a new model for sustainable change with women’s leadership at its core.

Lyndall Stein Chair of the Board of Trustees

CARE International UK’s Goals

CARE International UK is a full member of the CARE confederation, working in 111 countries. Together, we work towards delivering CARE International’s Vision 2030, contributing to lasting large-scale impact in support of the Sustainable Development Goals. CARE International UK plays a major role in achieving the confederation’s goals by raising funds for work around the world and providing programme support and expertise, with particular emphasis on women’s voice and leadership in climate action and humanitarian crises.

Together, we work towards delivering work across six target areas in line with CARE International’s Vision, so that by 2030:

50 million women and girls experience greater gender equality.
At least 50 million people affected by major crises are supported with humanitarian assistance.
75 million people can better exercise their right to adequate food, water, and nutrition.
50 million women have more equitable access to, and control over, economic resources and opportunities.
50 million people exercise their right to health, including 30 million women.
25 million poor and marginalised people, particularly women and girls, strengthen their resilience to climate change.

The Year in Focus

Humanitarian Emergencies

Pakistan Floods

In August 2022, catastrophic floods hit five states in Pakistan, killing more than 1,700 people and destroying homes and livelihoods for 33 million more. The sheer scale of the disaster, which saw a third of the country underwater, led the government to declare a national emergency.

CARE Pakistan, alongside partner, Thardeep Rural Development Programme, carried out emergency and rehabilitation work in Dadu and Badin, the worst affected areas of Sindh district.

After identifying the most vulnerable households, 2,500 families were supported with a complete package of supplies including food baskets, temporary shelter, kitchen kits, and menstrual kits. To particularly support women and girls in the aftermath of the disaster, CARE Pakistan and Thardeep Rural Development Programme set up women and child-friendly spaces where users could easily access services including mental health support and advice on gender-based violence. In total, over 1,000 mental health sessions were delivered.

Children were encouraged to attend recreation and game playing sessions to help them process the effects of the disaster and experience a friendly environment for their wellbeing. Over 10,000 women and children attended the sessions, well above our original target.

Turkey-Syria Earthquake

A series of devastating earthquakes struck Turkey and Syria in February 2023, killing more than 50,000 people and displacing at least 2.2 million in the middle of a harsh winter. A DEC appeal raised an incredible £150 million, of which CARE International was awarded £3.3 million to support the relief effort.

Working across Hatay and Gaziantep provinces of Turkey, CARE Türkiye focused on the immediate priority of getting food to people. Three thousand food baskets were distributed to displaced households, and where local food markets were still functioning, we supplied vouchers to enable people to buy a month’s supply of food. In addition, 24,658 water containers were distributed to 3,648 households. Everyone we supported was also given information on protection and referral services for health, mental health, and gender-based violence services.

In Idlib and Aleppo, CARE Syria worked both directly and with local partners to support immediate needs and help people rehabilitate and rebuild. Cash-for-food activity distributed 4,200 ready-to-eat rations to 3,655 families. To help stop the spread of dysentery and other water-borne diseases, safe drinking water was trucked to 13,547 households, and sanitation services supported a further 9,270 people. In total, 76,320 people directly benefited from different water, sanitation, and hygiene interventions, delivered through our partner, IYD. And to help families rebuild an income, 308 people were supported with cash-for-work activities, while 83 more were supported with livelihood restoration activities.

Women Lead in Emergencies

Women and girls are amongst the hardest hit by conflict and disasters, and in ways that differ from men. Despite this, women affected by crisis often have little or no influence over the design and delivery of humanitarian assistance, and so are further disadvantaged after crisis hits.

CARE International UK's Women Lead in Emergencies approach (Women Lead) shifts power and resources directly to women in communities affected by crisis, supporting them to overcome barriers to their participation in humanitarian decision-making. In 2023, CARE International UK began new Women Lead programming in Ethiopia, Mali, and Ukraine.

Ethiopia

A two-year conflict in Tigray, Ethiopia, has had a huge impact on women and girls. Over half a million conflict-related deaths, large-scale displacement and widescale gender-based violence have left communities traumatised.

A Women Lead group in Tigray.

CARE International works with local partner, the Women’s Association of Tigray, to deliver Women Lead programming, aiming to support women on the frontline take the lead in meeting their own and their communities’ needs. Women have already drawn up plans to undertake literacy and financial literacy training and participate in demonstrations demanding an end to the block on humanitarian aid to the area.

Women who participate in the project have underscored the importance of trauma healing, the solidarity they find in women’s groups and Women and Girl Safe Spaces, as well as access to gender-based violence referral services.

‘’The project has increased our confidence, mental healing, and skills to influence our husbands and communicate freely about our participation in the group, where previously we would have been challenged for going out.’’ Women Lead group member, Tigray.

Ukraine

Yulia Hladka from Ukrainian NGO Winds of Change, one of CARE International’s partners working to implement Women Lead in Ukraine

By August 2022, an estimated 17.7 million people (54% women and girls) needed humanitarian assistance and protection. Despite being at the forefront of the response, women and women-led organisations experience significant barriers to meaningful participation in decision-making forums, and to accessing funding and capacity support. Women Lead in Ukraine seeks to change this.

Women Lead works alongside local partners to target support towards women and the organisations they lead, making sure that the voices and choices of women and marginalised groups can be heard at decision-making and leadership forums. This includes women directly affected by the conflict, internally displaced women, and women from marginalised groups such as the Roma community.

Women Lead also provides funding and support to continue delivering life-saving aid to women, girls, and vulnerable and marginalised people across Ukraine.

In the UK

We use our position in the UK to raise awareness of the issues that impact the communities we work with. By engaging a range of decision-makers, from the UK government to civil society, we help to influence and shape decisions that create better outcomes for people affected by poverty and crisis around the world.

In 2023, we saw years of collective campaigning pay off when the UK government committed that, by 2030, 80% of UK aid spend has the intention of addressing gender equality. In a year that has seen a devastating roll back on women’s rights globally, ensuring UK aid is fit for purpose has never been more important.

While the world is still reeling from the economic impacts of COVID-19 and contending with conflict and climate change, needs will continue to outstrip resources available. CARE International UK is committed to working with women, girls, and their communities to seek innovative ways to amplify their voices and bring solutions to the table to help the UK government meet the challenge and pursue gender transformative approaches across all its international development work.

#ChangetheStory

Did you know there are more entries on Wikipedia about football and male footballers than there are about women in their entirety? Ahead of the Women’s Euros in July 2022, it was time to #ChangeTheStory.

Because when we change the story about women, we change the story for women.

We partnered with Wikipedia and the Women in Red movement – a group of editors reducing systemic bias across the Wiki world – to focus attention on the unequal representation of women, elevating their voices and celebrating achievements. Wikipedia pages featured a #ChangeTheStory banner, urging readers to join the conversation on social media. The campaign was hugely successful, with 1.4 million people engaging across our digital platforms, and a 4% increase in followers on our social media channels.

16 Inspirational Women

16 inspirational women from around the world helped us mark International Day for the Elimination of Violence against Women in November by sharing their stories in a social media campaign.

From countries as far apart as Fiji, Ecuador and Burundi, the women’s experiences of violence were all too similar. However, they had all turned their lives around and now lead their communities reducing gender-based violence.

“ I saw a lot of women were stressed, oppressed, and didn’t want to speak out. When CARE International trained us, we understood, got empowered and knew we had a right to report incidences of gender- based violence.” Janet, Democratic Republic of Congo (pictured right).

We hosted seven of the women at the International

Preventing Sexual Violence in Conflict Initiative Conference in London on 28 November 2022, so they could meet key Parliamentarians and discuss their recommendations face-to-face.

International Women’s Day

In celebration of 2023’s International Women’s Day on 8 March 2023, we encouraged people to #Walk4Women – providing thought-provoking entertainment to help them on their way. CARE International UK’s gender equality activist, Helen Pankhurst, and singer-songwriter, Sophie Ellis-Bextor, recorded a special hour-long “online rally” podcast, with performances by Beverley Knight, Imelda May, and Nikita Gill. “I was honoured to be asked to host this incredible podcast – the women featured are beyond inspiring and will be a tonic for anyone whose faith in humanity is flagging,” said Sophie.

The podcast features interviews with women working on the frontline of crisis in Ukraine, Somalia, Bangladesh, and Yemen, as well as the recent earthquake in Turkey and Syria. Listeners also heard messages from famous supporters including Neil Gaiman, Michael Sheen, David Tennant, and Lemn Sissay.

1,100 podcast listens
800 pledges to ‘walk’ across the UK
30 celebrity influencer endorsements across social media
280 media mentions

CARE International UK also worked in partnership with the Cherie Blair Foundation for Women to bring attention to the unpaid care work of women entrepreneurs. Together, we published an opinioneditorial in Conservative Home, a key political outlet in the UK. Our work on caring economies successfully influenced the inclusion of key women’s economic justice commitments in the UK Government’s women and girls’ strategy; including commitments to strengthen care economies, foster women's entrepreneurship, and provide social protection.

East Africa Cannot Wait

In November 2022, CARE International UK joined Action Against Hunger and others to urge Prime Minister, Rishi Sunak, to wake up to the looming famine in East Africa.

Against the backdrop of Big Ben, supporters including MPs, diaspora, and faith groups set off 80 alarm clocks to warn that time is running out to stop more people dying of hunger.

A petition of over 30,000 signatures and a letter from 12 leading aid agencies was handed in to No. 10 calling for urgent action on the crisis, where over 50 million people are now on the brink of starvation.

MPs and activists call for action.

Advocating for Women’s Voice and Leadership

In 2023, we embarked on work to raise Ukrainian women’s voices, influence the UK government on women’s voice and leadership, and share our own innovative model, Women Lead in Emergencies, with the sector.

In March, CARE International UK’s Senior Humanitarian Advocacy Advisor was deployed to Ukraine to meet women-led organisations and hear first-hand accounts of their priorities for the humanitarian response to the country’s ongoing conflict.

The women’s feedback was used as the basis for briefings with several teams at the UK Foreign, Commonwealth & Development Office, including the Ukraine humanitarian response team, the gender team, and the British Embassy in Kyiv.

The deployment also resulted in crucial advocacy around the Ukraine Recovery Conference, co-hosted by Ukraine and the UK in June. This included a joint paper to accompany a side-event at Chatham House, incorporating key points the women believe is necessary for a gender-just reconstruction.

Lendwithcare: Changing Lives with Economic Opportunity

Since 2010, thousands of supporters have helped boost small businesses across the world with microloans through our Lendwithcare scheme. Last year, life-changing loans provided through Lendwithcare totalled an incredible £6 million. Thousands of individual loans were made to support 12,000 hard-working small business owners, including Mary and Patricia (below).

These two small-scale farmers were supported through an innovative new partnership with Modern Farming Technologies in Malawi. The partnership provides women the opportunity to buy and install greenhouses.

Greenhouse farming not only produces better plant yield and quality, it also requires less land. In addition to tackling this critical barrier of land ownership, greenhouse farming also helps address issues women face around managing farm work alongside household and childcare responsibilities.

Over the course of the year, Lendwithcare also funded over 150 rural farmers in Nicaragua through a second new partnership. Loans provided farmers with the opportunity to increase their incomes by growing high-value organic spices including turmeric and ginger through Doselva, one of our local development partners. The farmers adopt agroforestry techniques, which means crops are grown under the shade of the existing forest canopy and in harmony with the natural environment.

The strategy Lendwithcare adopts through Doselva is particularly important as smallholder farmers in Central America must explore alternative farming strategies due to climate change. Rising temperatures, extended droughts, and irregular rainfall have combined to significantly reduce yields.

Business With CARE

Our Business with CARE team works hand-in-hand with our corporate partners to improve people’s lives the world over, delivering vital change for businesses and the community.

Twinings Sri Lanka Community Development Programme Together with Twinings and Chrysalis, an affiliate of CARE International and our partner in Sri Lanka, we supported over 30,000 marginalised tea workers and community members (80% women), across eight tea estates from 2021-2023.

Shashikala, 37, (left) attended training at her local CDF. After receiving a loan of £60, she set up a market garden business. After the first harvest, she made a net income of £300.

“I began to realise I can do something of my own and started believing in myself. I never did any job besides picking tea, and I always depended on my husband, but I was brave enough to come up with this decision which helped me maintain my family. I feel proud of myself.”

The programme was such a success that Twinings, Tazo/Liptons, Starbucks, and the Ethical Tea Partnership have supported the roll out of the Community Development Forum model over three years in Indonesia from 2023.

Sexual Harassment Prevention in Primark Supply Chain

Sexual harassment is sadly the norm for many women garment workers in Cambodia, but recognition of genderbased violence in the garment industry is low. Funded by Primark, CARE International has been implementing the Creating Safe and Respectful Workplaces project since 2021 across five garment factories.

The project works with factory management and Sexual Harassment Prevention Committees to prevent and respond to sexual harassment. So far, this has resulted in:

33 Sexual Harassment Prevention Committees set up, with sexual harassment prevention training rolled out for 2,810 workers.
Over 1,000 workers, 832 of whom were women, participating in awareness raising events across the five factories.
Three high-level meetings facilitated by CARE International with key policy stakeholders including the government, garment businesses, UN agencies, Better Factories Cambodia, and unions. This work resulted in a government sponsored agreement on a pathway towards the ratification of the ILO Violence and Harassment Convention in the garment sector.

Chariya’s Story Chariya[1 ] experienced sexual harassment from a male co-worker, including inappropriate names and

1 Name changed to protect identity.

unwelcome touches. Chariya shared that not only was this happening to her, but also to three other women. After gaining more awareness of sexual harassment and the Sexual Harassment Prevention Committee, Chariya reported her case.

“I pushed myself to be brave and report it because not only was he touching me, but other women as well...without their consent and making sexist jokes. The women seemed so afraid of him. That is why I had to report him.”

The Sexual Harassment Prevention Committee received the report and intervened immediately. The harasser was moved to another unit and issued with an official warning, which resulted in Chariya feeling much safer and happier at work.

“I am not afraid of him anymore and feel excited about going to work again. In the future, if I see or experience any forms of sexual harassment, I’ll report it and I will encourage the other women to do the same.”

InterContinental Hotels Group: IHG Hotels & Resorts

As a long-standing partner, IHG continued to support CARE International by donating to five emergency responses including: Pakistan floods, Turkey-Syria earthquakes, our Global Hunger Crisis Appeal, and Vanuatu following cyclones Judy and Kevin. IHG’s donations helped support over 23,540 people with shelter kits, hygiene kits, food, dignity kits, and tarpaulins for shelter.

We also continued our work on gender equality in the linen supply chain with one of IHG’s suppliers. Following research, we delivered recommendations and worked with the supplier, Welspun India, to strengthen their understanding of gender-related issues in their factories, co-developed a Gender Action Plan, and provided guidelines for them to implement in their factories.

“CARE International UK ’s expertise has been invaluable in improving our gender equality approach in our supply chain and understanding the specific needs of women workers.” Anett Kiss, Responsible Procurement Senior Manager, IHG.

Fundraising

We launched emergency appeals in the wake of two devastating events.

In August 2022, we launched the Pakistan Floods Appeal alongside the DEC, raising £242,910 from over 2,900 donations.

In February 2023, when two massive earthquakes struck Turkey and Syria, we quickly mobilised an appeal, again alongside the DEC. The appeal raised over £629,866 from 6,824 donations – one of the largest emergency appeal responses in our history.

We also ran appeals highlighting the global hunger crisis and the impact of conflict on women and girls. CARE International UK supporters generously gave more than £127,500 to these appeals.

We were pleased that 26 people created fundraising pages or took part in challenges to raise funds for our work. This included the amazing Dan Glastonbury, who raised over £6,000 by taking personalised design requests to paint on bins at Glastonbury Festival, and Ringwood Waldorf School, who held a 10mile group walk and raised £700. A huge thank you to each and every one of you!

Supporter Care

During 2022/23, our fundraising and engagement activities reached online, telephone, face-to-face, and print audiences. The Supporter Care Team:

Dealt with 3,591 emails and 321 telephone calls from supporters and others interested in our work.
Received 374 ratings through their Customer Thermometer email signature, 352 of which were green or gold stars. This means that more than 94% of supporters were happy with the team’s work.
Dealt with 1,286 live chat conversations through the websites, a 76% increase on last year.
Answered numerous comments and questions on social media.

Over the year, just two complaints were received (2021/22: 10 complaints). We continue to treat all complaints seriously and ensure thorough investigation and response.

Our active supporter numbers, (individuals who engaged, donated, or lent in the past two years), grew by 1% to just over 95,800 people.

Financial Performance

Income

Total income was £40.7m in the year ended 30 June 2023 (2022: £38.6m), of which £31m (2022: £27.8m) was restricted to international programmes. Whilst there was a decrease in available funding from our largest institutional donor, the FCDO, which dropped by £5.7m in the year ended June 2023, this was mitigated by the increase in other donors and funders, including the DEC, resulting overall in income being up £2.1m or 5%.

Unrestricted income was £9.6m in the year ended June 2023 (2022: £10.7m).

Expenditure

Total expenditure was £38.4m in the year ended June 2023 (2022: £31.4m), of which restricted spend on international programmes was £29.0m (2022: £22.3m). Humanitarian programme expenditure represented 50% of our charitable expenditure (2022: 49%).

We spent £3.7m, or 21%, in the year ended June 2023 to generate £17.2m from donations and legacies from individuals and corporate partners (2022: spent £3.7m to generate £15m).

Restricted Deficit, Unrestricted Surplus and Reserves

As of 30 June 2023, we carried forward £16.7m of restricted funds associated with multi-year grants for use in future years (2022: £14.7m).

Our unrestricted net surplus of £0.2m increased unrestricted reserves from £4.5m to £4.7m.

Free reserves are held to ensure continuity of the Charity’s ongoing and future activities, including:

Protection against fluctuations in income, particularly year-to-year changes in the portfolio of donor-funded programmes.
Mitigation against the financial risks arising from the changing nature of aid, especially the movement towards payments by results in both grants and contracts.
Investment in innovation to support CARE International’s strategic objectives.
To enable the orderly cessation of activities should it ever be required.
All charities are required to consider how much they need to hold in reserves. The extent varies depending on the scale and nature of the charity’s activities.

The Board has set its policy to maintain a minimum level of £1.5m to £2m unrestricted reserves. Given the current operating environment, it recognises that maintaining a higher level of free reserves may be prudent. Free reserves were £4.7m as of 30 June 2023, which is £2.7m above the higher end of the unrestricted reserves policy range.

Cash and Short-Term Deposits

Cash and short-term deposits increased during the year ended 30 June 2023, from £12.9m to £14m. Most of these funds represent cash received for donor-funded projects and are obligated against specific activities.

Going Concern

The Charity has continued to manage its finances effectively with the above increase in unrestricted reserves to £4.7m.

In addition to the baseline projection, alternative scenarios have been modelled which consider the impact of potential declines in income of up to 20% in both programme and fundraising. A further scenario has been also prepared – a cumulative crystallisation of both scenarios at the same time – to assess the impact such a scenario would have on the financial sustainability of the Charity. In this scenario, the Charity would have sufficient unrestricted cash resources as well as reserves to continue its operations.

For this reason, the Trustees have concluded that there is no material uncertainty relating to going concern.

Trading Subsidiary

The Charity’s wholly owned subsidiary, CI Enterprises Limited, carries out trading activities for the Charity. These activities provided a profit before tax of £4k in the year ended 30 June 2023 (2022: £19k loss). No qualifying distribution in the form of gift aid was payable to CARE International UK as the profit was offset against prior year losses.

Plans for the Future

CARE International UK’s new strategy, developed in 2023, sets out six priority objectives for the next three-year period. By 2026, we aim to:

1. Support women to lead on the frontlines of crisis

For decades, we have pioneered new, sector-leading approaches to put women and girls’ needs and rights at the centre of crisis response. Over the next three years, we aim to increase the number of women taking on leadership roles in emergencies to drive better outcomes for communities. We will do this by scaling up our ground-breaking Women Lead in Emergencies model, putting women’s leadership at the forefront of our emergency shelter responses, and advocating for the UK to adopt a feminist foreign policy that supports women’s rights and leadership.

2. Build equitable, sustainable partnerships with local organisations to deliver more impact for people facing poverty and crisis

We will seek to work in solidarity with local partners to increase the sustainability of local organisations and the decision-making power they have in humanitarian and development work. We will work in equitable partnership with local organisations , particularly women-led organisations and women activists, and expect this to also increase the effectiveness and value for money of our work. By 2026, we aim for half our programmes to put control of design, delivery, and decision-making in the hands of local partners who have the best knowledge and relevant solutions. We will also increase the amount of funding going to local organisations and ensure their core costs are covered.

3. Raise our profile and influence for change in the UK

In order to support our country offices and partners to respond to challenges facing people all over the world, we aim to increase our profile and influence in the UK, becoming a leading champion for women in times of crisis. We expect this will increase the influence of women’s rights activists over UK development policy and empower people in the UK to express their solidarity and be part of a connected movement to defeat poverty and injustice.

4. Contribute to CARE International’s work in over 100 countries to save lives, defeat poverty, and

achieve social justice.

CARE International UK is a full member of the CARE confederation. Together, we work towards delivering on CARE International’s Vision 2030, contributing to lasting large-scale impact in support of the Sustainable Development Goals. CARE International’s six impact areas (see page 4) concentrate our expertise and drive progress towards our mission.

CARE International UK raises funds to support work across all impact areas, with a particular focus on women’s voice and leadership in climate action and humanitarian crises.

5. Increase the diversity and sustainability of our income

In this strategy period, we are committed to reviewing the way we raise and manage funds, so we can ensure we sustainably increase the resources available for women leading in crisis, locally-led programming, innovation, and scaling proven approaches. We’ll look to diversify our voluntary income, increase our unrestricted income, and seek new funding streams, including multi-sectoral partnerships, trusts and foundations, and testing new models to raise funds.

6. Become an anti-racist, diverse, inclusive, and equitable organisation

We must reflect on the changes we want to see in the world. That means becoming a more diverse and inclusive organisation that is actively anti-racist, and bases its decisions, funding, and relationships on feminist leadership principles (such as empathy, transparency, sharing power, challenging our behaviour, and being accountable, providing a supportive environment, creating collaborative models, and dismantling bias). To achieve this, we will commit to work that empowers women and reflects our equity, diversity, and inclusion goals in everything we do.

Objectives for 2024

Implementing CARE International UK’s New Strategy

As described above, in 2023 we finalised our new strategy, defining our role and contribution to delivering CARE International’s Vision 2030. The strategy takes into account our external commitments to equitable partnership through the Pledge for Change, as well as how we can best maximise the opportunities available to CARE International in the UK market for achieving its impact goals.

We will launch the strategy through a series of webinars during 2024. Our focus will lay foundations for strong monitoring of our plans, including setting key performance indicators and their baselines, as well as making a fast start to delivery. We have grouped our goals under the following four headings:

Programmes and Impact

We will refresh our approach to cross-organisational external communications and engagement planning to maximise opportunities to amplify our strategy messages. This will include increasing our engagement with UK donors on our sector-leading approaches to women’s leadership in crisis. As we expect a General Election in 2024, we will encourage all political parties to commit to a feminist foreign policy.

To promote greater local leadership, we will work with others across the confederation to pilot new models that promote greater local leadership, set a learning agenda to support our advocacy work, and design the required guidance and policy to provide “ICR for all” (indirect cost recovery for local partners). We will also create a new brand narrative that reflects our new strategy and improves our case for support with all donors and stakeholders.

Sustainable Funding and Finance

CARE International UK is implementing a new Restricted Funding Strategy that aims to increase the efficiency of our fundraising by focusing on larger, strategically aligned opportunities and improving cross-team working. In 2024, we will ensure this is delivered by all teams raising restricted funds.

We will also increase our investment in individual giving to grow our public support and refresh our approach to corporate fundraising in line with our new strategy. We will grow our staff focused on trusts and foundations, philanthropy and legacies to increase our ambition and income in this space.

People and Culture

CARE International UK began working from a new office in December 2022 and this, alongside more frequent in-person away days and meetings, has brought great benefits to improving team cohesion and strengthening organisational culture. In 2024, we will carry out a Future of Work consultation to reflect on the past year and design a new policy to ensure that our working practices fully support a positive culture and are fit for purpose in the post-pandemic world.

To support our ambition to become a more equitable, diverse, and inclusive organisation, we will review our key HR policies and agree cross-organisational definitions for anti-racism, feminist leadership principles, and equity, diversity, and inclusion. We will also reinstate three-day training on equity, diversity, and inclusion for all staff, alongside increasing our focus on employee wellbeing and reviewing our employee value proposition (pay and benefits).

Governance and Controls

A number of our current trustees are due to finish their terms this financial year. We will recruit new trustees who bring skills and experience that complement those of our existing trustees and support us to deliver the new strategy.

We will continue our strong focus on improving financial management, which has already led to significant gains for the organisation. We will also roll out improvements to our information management structure and strengthen our cyber-security.

Directors’ Report

Structure, Governance and Management

Legal Structure

CARE International UK is a registered charity (Number 292506) and a private company (Number 1911651) limited by guarantee. The objects of the company, as set out in the Memorandum and Articles of Association, are to relieve poverty and sickness, to promote the preservation and protection of health, and to advance education among the world’s poor.

Related Organisations

CARE International UK has a wholly owned subsidiary, CI Enterprises Ltd, a company registered in England and Wales (Company No. 02306212). CI Enterprises is used for trading activities to provide income for the Charity.

Board of Trustees, Governing Committees and Management Team

The governing body of the Charity is the Board of Trustees (as listed on page 76). The Board meets formally four times a year. Trustees delegate responsibilities to the Committees, CEO and Management Team in line with the approved Delegated Authorities Policy. In addition, there are two standing committees:

Finance and Audit Committee.
Ethics and People Committee (replacing the Ethics and Risk Committee and the Nominations and Remuneration Committee).

In 2023, the decision was taken to transition the Programme and Policy Committee into an Impact and Transformation Committee, with a remit to support and challenge CARE International UK to achieve its strategy mission related goals. This new Committee will start work in 2024.

The Committees are made up of members of the Board and other independent individuals with relevant experience under specific terms of reference from the Board.

CARE International UK held eight Board and 12 Committee meetings during 2022/23. Attendance at Board meetings was 92%, and attendance by individual Trustees at Committee meetings was 54/76 (71%).

Potential candidates for both the Board and Committees are recruited through an open and transparent process, including by advertisement in the press, online and through trustee recruitment organisations, as well as on the CARE International UK website. The Ethics and People Committee selects potential new members of the Board, who are then approved by the Board before appointment.

A formal HR induction process is followed for new Board and Committee members. We also introduce them to the Charity as a whole and help them form connections with our staff. We make sure they know about their legal duties, and check if they need any professional development to thrive in the role.

Members of the Board and Committees serve for a three-year period and may be re-elected for normally one and a maximum of two further three-year terms. None of the members of the Board received any remuneration for their work as Trustees. Reasonable expenses are covered, to ensure there are no socio-economic barriers to being a Trustee. The key management personnel of the Charity are the Senior Leadership Team (as listed under Organisational Details on page 76). The remuneration of the Chief Executive is set by the Ethics and People Committee, and the remuneration of the Senior Leadership Team is set by the same Committee in consultation with the Chief Executive.

CARE International UK has formal pay scales in place for all levels of staff. We benchmark our salaries each year against similar organisations in the NGO sector and pay at the median of salaries for each grade. We are a London living wage employer. Our pay ratio (the ratio between the highest paid member of CARE International UK and the median) is 3.0 (2021: 3.2), and this ratio is one of the indicators used to monitor the organisation’s approach to pay.

Governance and Trustee Duties

CARE International UK’s Board of Trustees has adopted the Charity Governance Code for larger charities, and regularly monitors performance against the Code.

The organisation takes equity, diversity, and inclusion issues seriously. CARE International UK has worked with external advisors and recruited a new interim Director of People from May 2023 to design and deliver a programme of work that will bring about the culture change needed to ensure all staff are treated equitably. CARE International UK works towards becoming an anti-racist organisation.

Statement of Compliance with Section 172

As a registered company, CARE International UK is also bound by the reporting requirements of company law and, as part of this, the Trustees are required to state how they have complied with their duties under Section 172(1) of the Companies Act 2006. Trustees must act in a way they consider, in good faith, would be most likely to promote the success of CARE International UK to achieve its charitable purposes in compliance with Section 172 of the Companies Act 2006.

The Board of Trustees delegate day-to-day management and decision-making to the Chief Executive and other members of the Senior Leadership Team, whose responsibility it is to ensure that the Charity’s activities are carried out in compliance with agreed plans and policies. Details of the structure and activities of the Board and its standing committees are provided above, and under the Legal and Administrative section at the end of this report.

The table below sets out the key decisions taken by the Board during the year, and how the interests of our stakeholders and the wider factors set out in Section 172 of the Companies Act 2006 were taken into account.

	Adoption of a new three-year strategy for CARE International UK	Following a strategy development process that involved the majority of staff in four working groups, and following revision and inputs from the Board, the Board decided to adopt CARE International UK’s new three-year strategy. The strategy gives the organisation a much clearer focus and ability to set cross- organisational objectives to increase our impact, improve prioritisation and better manage workloads. Strategy goals are set out in the section “Future Plans”.	Key considerations: • External context including the organisation’s value in the UK development sector, and the impact a UK general election could have on our work. • The requirements of local partners as expressed through the Pledge for Change and many other consultations on how INGOs should change their role for the future. • Our strengths and areas for development in relation to people management and organisational culture, governance and controls, and sustainable fundraisingapproaches.

In carrying out their duties the Trustees have regard, amongst other matters, to:

• The likely consequences of any decision in the long term

Optimising our support to poor and marginalised people and communities to overcome injustice and tackle poverty is the desired outcome of our operations. Consideration of sustainability and the long-term consequences of strategic proposals is part of the Board’s decision-making process. External circumstances sometimes change and, if necessary, we adapt our plans to respond to changing needs.

The interests of the Charity’s employees
Our people and culture are vital to the successful delivery of our strategic goals. We put equity, diversity, and inclusion at the heart of our new strategy, and include the long-term objectives of making CARE International UK a great place to work for all staff members, including increasing satisfaction and reducing turnover amongst staff from minoritized, ethnic groups. Our Board of Trustees maintains an active interest in our equity, diversity, and inclusion initiatives, and one of our Trustees participated in the foundational work of the equity, diversity, and inclusion core group.
The need to foster the Charity’s business relationships with suppliers, customers, and others We identify the following as the key stakeholders with whom we foster ongoing relationships:
Foreign, Commonwealth & Development Office.
Other institutional donors and trusts and foundations, for example the Postcode Lottery Trust.
Private sector potential and existing partners (not whole private sector).
British public potential and existing supporters (not whole British public).

• The desirability of the Charity in maintaining a reputation for high standards of business conduct

We espouse the values we wish to influence, support, and sustain in our programmes in our engagement with our own donors, suppliers, partners, and other stakeholders. Our reputation and credibility are vital to the successful delivery both of our strategic goals and our day-today activities.

The need to act fairly as between members of the Charity

The Trustees are the only members of the Charity and their responsibilities relate to the objects of the Charity. The Charity is run to achieve its charitable purposes and not in the interests of its members. Issues of fairness between the members do not arise.

Fundraising Compliance Statement

CARE International UK seeks to maintain the highest possible standards in our fundraising and engagement activities, and we will never take the kindness and generosity of the British public for granted.

Individual supporters who have chosen to support our work – either through single or regular donations, participating in fundraising events, responding to an emergency appeal, or making a loan to an entrepreneur through our Lendwithcare scheme – all make it possible for us to continue to save lives, support women and girls, and be there for the world’s most vulnerable people. We are grateful to them every day and strive to keep earning their trust and their support by providing the highest standards of service and supporter experience.

CARE International UK strives to raise funds from organisations that share a commitment to our mission to save lives, defeat poverty, and achieve social justice.

We continue to be registered with the Fundraising Regulator and are an Organisational Member of the Institute of Fundraising. We adhere to the Code of Fundraising Practice across all public engagement and fundraising activities and continue to engage with both regulatory bodies to ensure all our fundraising activities are compliant and following best practice.

We have continued to review and update our consent and privacy policies to stay compliant with the General Data Protection Regulations (GDPR). It is important that our supporters are happy with how we communicate with them, that they understand when there is a legitimate interest for us to do so, and that they are clear on what we do and don’t do with their personal information.

We have continued to work closely with professional fundraising and marketing agencies over the last year, who have supported and helped deliver our fundraising activities. We undertake a rigorous due diligence and tender process before starting work with any suppliers, and have strict contracts in place with existing suppliers, which include clauses on GDPR, recognising and managing vulnerable circumstances, human trafficking laws, and the Modern Slavery Act. Close monitoring of all fundraising and marketing campaigns is essential, including regular spot checks and mystery shopping, as it is very important to us that the agencies we work with meet the high standards we set for ourselves.

Public Benefit Statement

The Trustees confirm that they have complied with the duty in the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’. That guidance addresses the need for all charities’ aims to be, demonstrably, for the public benefit. The objects of the Company, as set out in the Articles of Association, are to relieve poverty and sickness, to promote the preservation and protection of health, and to advance education among the world’s poor. CARE International UK’s approach to fighting poverty, addressing CARE International’s Vision 2030 impact areas (humanitarian response, women’s economic justice, health, food nutrition and water security, gender equality, and climate justice), and by advocating on behalf of the poorest and most vulnerable people, allows us to directly meet the following criteria for public benefit as defined by the Charity Commission guidance:

The prevention or relief of poverty.
The advancement of human rights, conflict resolution or reconciliation, or the promotion of religious or racial harmony, or equality and diversity.
The relief of those in need, by reason of gender, age, ill-health, disability, financial hardship, or another disadvantage.
The advancement of health and the saving of lives.
The advancement of education.
The advancement of environmental protection or improvement. We are clear in our aims and objectives and adhere to codes of governance that reach across the wider humanitarian sector, including the Sphere Handbook (a set of principles and standards agreed by the major humanitarian organisations, including CARE International), the Red Cross Code of Conduct, and the Core Humanitarian Standard on Quality and Accountability (CHS). The CARE confederation is externally verified against the Core Humanitarian Standard, following an external audit by the Humanitarian Quality Assurance Initiative in early 2020, and will be re-verified against this standard in 2024.

Our approach is to listen to the people we work for and take great care to ‘do no harm’. We aim to help the poorest and most marginalised members of society, and no person is excluded on the grounds of race, religion, gender, sexual orientation, or social position.

Internal Control Environment

Internal Control

The Trustees have overall responsibility for ensuring that the Charity has an appropriate system of control, financial and otherwise. They are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006.

The systems of internal control are designed to provide assurance against material misstatement or loss. They include:

Strategic plan and budgets approved by the Board.
Regular monitoring of Key Performance Indicators (KPIs) and progress against the strategic plan.
Quarterly consideration by the Board of financial performance and variance from budgets, as well as scenario planning in response to external drivers of uncertainty.
The use of Committees in meeting their duties and delegating certain functions of the Board.
Appropriate identification, management, and monitoring of risks.
Implementation of key policies and procedures.
Structured delegated and financial authorities signed off by the Board.
Internal auditing, carried out in accordance with the Audit Charter.

Trustees continue to review the adequacy of the Charity’s internal control systems with the Senior Leadership Team as part of the Risk Assurance Framework. Each risk area has a dedicated risk owner. The Trustees look at how the Charity has responded to previously identified incidents, weaknesses, or risks, as well as how the Charity approaches new incidents or emerging risks. As part of this, the Trustees consider whether the Charity has taken appropriate measures to respond to the issues, and whether the controls in place are sufficient for organisational purposes.

During the year, the Charity’s internal audit work focused on programme audits with the support of CARE USA. In addition, the Charity also focused on improving its controls and processes around cyber security and finance. The update of a finance improvement plan was undertaken to respond to challenges identified through delays in filing annual accounts in FY21 and FY22. This revised plan was approved in FY24, and implementation is underway.

The Board believes that the Charity’s other internal controls are adequate and meet the guidelines issued by the Charity Commission. The Board recognises that continuing to develop and strengthen CARE International UK’s internal controls is a key priority moving forward and has ensured that the resources and expertise are in place to do so.

Risk Management and Principal Risks

CARE International UK recognises the risks we face due to the nature and context of our work. The Board, as the ultimate risk owner, has an established risk management process. Strategic risks are reviewed and discussed quarterly by the Senior Leadership Team and the Finance and Audit Committee. The Senior Leadership Team is responsible for the management of the key risks, and ensuring effective mitigation is in place. CARE International UK uses recognised risk management protocols and standards assessing financial, operational, regulatory, external, and strategic risks.

Below are the identified significant risks for CARE International UK, as well as for the broader Charity and development sector, along with the Board’s plans to manage those risks:

Identified risk	Measures in place to manage the risks:

Financial stability and fundraising The organisation continues to be overly reliant on FCDO for programme funding, as well as subject to wider UK economic trends in terms of its unrestricted fundraising streams.	• Diversification strategies are in place including with UN and corporate donors, and increased focus on trusts and foundations, legacy, and face-to-face fundraising from individuals. • Careful monitoring of fundraising market and our financial performance. • Relationship building, advocacy and influencing FCDO priorities. • Ongoing strategic review of organisational priorities to ensure financial sustainability and appropriate investment strategy.
Systems and controls Failure to have appropriate systems and controls in place would leave us vulnerable to fraud, cyber-attacks, data breaches, or unable to meet the compliance requirements of our regulators and donors.	• Risk based internal audits and reviews carried out. • External IT assurance assessment performed, and actions largely completed to mitigate this risk. • Cyber security improvements continue to be implemented. • Finance Improvement Plan being implemented
Environments where we operate Increases our financial and operational risks including disruptions in programming; loss of access; delays in activities; loss of project documentation, physical threat, and safeguarding risks. In some countries, financial sanctions apply and have intensified during the past financial year as a consequence of conflict.	• Due diligence to implementing partners. • Systematic anti-terrorist checks on all suppliers and partners. • Situation monitoring in conflict areas and for incidents. • Appropriate training for staff for high-risk deployments. • Co-operation with country offices to support donor advocacy and mitigate impact on programme delivery. • Adjustments to financial budgets and forecasts following specific incidents. • Appropriate safeguarding training and policies inplace.

	Impact of operating environment on staff UK government aid budget cuts have resulted in reduced frequency of visiting programmes and less connection to the organisation’s purpose for staff. This poses a risk to the organisation as low morale may lead to higher staff turnover	• New three-year strategy has significantly increased understanding of CARE International UK’s purpose and motivation amongst staff has increased, supported by more regular staff interaction through away days, in-person meetings and social events. • Annual salary review process – recent salary increase brought most grades to the market median. • Flexible hybrid working approach implemented in response to staff feedback– further consultation on Future of Work policy will identify and address any ongoing concerns. • Regular one-to-one well-being checks with staff. • Investment in suitable working-from-home equipment for staff. • Continue exit interviews to identify and monitor causes of staff leaving the organisation and corrective action taken.

Anti-Fraud, Bribery, Corruption and Exploitation Policies and Serious Incident Reporting

Policies and Reporting

CARE International has global policies on Anti-Fraud and Corruption, Protection from Sexual Exploitation and Abuse, and Child Protection, which apply to all CARE members and operations. We have a Serious Incident Reporting protocol agreed with the UK Board.

The Anti-Fraud and Corruption policy requires all incidents or allegations of fraud, loss, and bribery to be reported to donors and the Finance and Audit Committee, regardless of financial materiality. This ensures a consistent approach to fraud awareness, prevention, reporting, and investigations across the confederation. In addition to these preventative measures, anti-fraud, corruption, and bribery controls are reviewed by internal audit. All UK staff are required to complete online anti-fraud training, reinforced through refresher training including during Charity Fraud Awareness week.

Serious Incidents

Despite our enhanced approach to fraud prevention, the reality is that from time-to-time we will be victims of fraud. During the year, nine suspicions of fraud and other incidents were reported to CARE International UK (2022: 13 fraud reports). Among these, seven related to our global programmes, and two related to our headquarters’ operations. Two of these suspicions remain under investigation, but all other suspicions were fully investigated. Two of these were found substantiated, and relevant actions have been taken. Among these incidents, the majority related to various procurement irregularities, one bribery, and one beneficiary complaint. These were reported to the relevant donors and the majority are now closed.

One headquarter-related incident was reported to the Charity Commission, in accordance with the CARE International UK Serious Incident Reporting protocol. The authority closed the case at the end of the financial year.

The continued downward trend in the amount of fraud reports can mainly be attributed to the closure of, and significant implementation delays in, our large programmes in Syria, Yemen, and Mozambique.

Other Policies and Statements

Safeguarding

CARE International UK recognises our responsibility to promote human dignity and social justice within our organisation. We know that some people are more at risk of abuse, due to social inequalities and vulnerabilities, in particular women and other vulnerable adults and children.

We take seriously our responsibility to keep children safe from harm and abuse, recognising the specific risks to children, and that abuse in all its forms can have significant life-long consequences. Read our Safeguarding Policy.

For CARE International UK, the protection of the people we support, our staff, and the partners we work with is paramount. Everyone in CARE, including each Trustee, is instrumental in making safeguarding core to everything we do.

In 2023, significant achievements in safeguarding include working closely with CARE France and CARE Germany to produce a safeguarding risk management strategy for partner organisations providing aid to refugees escaping the war in Ukraine. Each delivery partner (30 in total) in Ukraine, Romania, and Moldova produced a safeguarding risk management plan.

In 2023, a total of 83 staff members attended safeguarding training. This represents 93% of all staff eligible for training, which includes foundation training for new staff and a half-day refresher training for existing staff.

Equity, Diversity, and Inclusion

Our new three-year strategy was developed with equity, diversity, and inclusion at its heart. This includes a focus on anti-racism, feminist leadership principles, and an inclusive work culture. As stated above, there was investment in a Director of People role in May 2022 to lead and oversee strategic programmes including on equity, diversity, and inclusion.

Modern Slavery

We continue to monitor compliance with the Modern Slavery Act, and the broader issue of modern slavery, across the following areas:

Procurement, both UK-based and international.
Selection of programme partners.
HR policies and procedures.
Fundraising and communications.

We have supported changes to policies and procedures, incorporating the risks relating to modern slavery.

Environmental Impact

Statement on Streamlined Energy and Carbon Reporting (SECR) FY23

CARE International UK did not have an office for most of 2022, therefore our carbon footprint for the financial year was nil. Our office lease at The Foundry, Vauxhall, commenced on 31 October 2022. Our rental charge is inclusive of energy usage. The landlord is not able to provide energy reports for each unit, however BREEAM – the world leading science-based certification system for sustainable built environments – rated The Foundry 'excellent' for its sustainability credentials, which was a key factor in our decision to lease at this location. The table below summaries our legally-obligated emissions reporting as required by SECR and includes a comparison to the previous year.

UK energysource	FY23	FY22
Electricity kWh (Scope 2, 100% renewable)	6,691.23 kWh	0 kWh
Associated gas emission kWh (biogas)	9,247.68 kWh	0 tonnes CO2e
Carbon intensity – tonnes CO2equivalent per full-time equivalent employee	24.464115 tCO2e	0 tCO2e
Methodology:CO2associated gas emissions have been calculated using UK governmentgreenhousegas conversion factors.

Flight Emissions

CARE International UK’s emissions, including RF (Radiative Forcing) from international flights, are presented below. This equates to 103.69 tCO2e in total, and 1.05 tCO2e per full-time equivalent employee. We increased our carbon footprint on flights in 2023 as we restarted our visits to country offices in order to complete due diligence on programmes that we fund. These activities were suspended during the pandemic.

pended during the pandemic.
	FY23	FY22
Flights tCO2inc RF	103.69 tonnes CO2e	54.34 tonnes CO2e
Flights tCO2per full-time equivalent employee	1.05 tonnes Co2e	0.55 tonnes Co2e

Energy Efficient Actions

We continue to travel overseas only when necessary. Electricity and gas usage at our office is based on information provided for the entire building by the landlord, and we have calculated the proportion attributable to CARE International UK based on our office size. The Foundry has an EPC rating of A and an EPC score of 24.

Anyone representing CARE International UK signs a Code of Conduct confirming they will demonstrate commitment to reducing our environmental impact. We contribute to the CARE International Global Climate Smart Report in terms of the action taken to reduce emissions, and to further CARE International’s global efforts to become a climate smart organisation.

We have committed to offset our emissions where we cannot reduce them through credible carbon offset projects that have high social impact and environmental integrity. In 2023, we contributed to CARE International’s carbon offsetting scheme with the Fair Climate Fund. We are very proud of our CARE joint offsetting programme and the steps the CARE confederation is taking to balance out unavoidable emissions from the work we do. The programme will empower women in rural communities, improve health and safety conditions for families, and contribute to climate resilience, all while reducing emissions.

Statement of Trustees’ Responsibilities in Respect of the Trustees’ Annual Report and Financial Statements

The Trustees are responsible for preparing the Annual Report, including the Strategic Report and the financial statements, in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period.

In preparing these financial statements, the Trustees are required to:

Select suitable accounting policies and then apply them consistently.
Make judgements and accounting estimates that are reasonable and prudent.
State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial statements are published on the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

Disclosure of Information to Auditors

In the case of each of the persons who are Trustee Directors of the company at the date when this report was approved:

So far as each of the Trustee Directors is aware, there is no relevant audit information (as defined in the Companies Act 2006) of which the company's auditors are unaware, and
Each of the Trustee Directors has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information (as defined) and to establish that the company's auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of S418 of the Companies Act 2006.

Approved on 14 March 2024 on behalf of the Board.

Lyndall Stein Chair of Trustees

Sribavan Srisathkurunathan Chair, Finance and Audit Committee

Independent Auditor’s Report to the Members of CARE International UK

Opinion

We have audited the financial statements of Care International UK (the “charitable company”) and its subsidiaries (the “group”) for the year ended 30 June 2023 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group’s and the charitable company’s affairs as at 30 June 2023 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustee's 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

the parent company has not kept adequate accounting records; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 34, 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:

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

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

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

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of grant and legacy income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Tara Westcott Senior Statutory Auditor Date: 15 March 2024

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2023

Note Income from: Donations and legacies 3 Charitable activities 4 Other trading activities 5 Investment income Other income Total income Expenditure on: Raising funds: 6 Trading subsidiary costs Costs of raising voluntary income Charitable activities 7 Total expenditure Net income Transfers between funds 16 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2023 £000 6,243 2,804 313 138 110 9,608 309 3,638 5,419 9,366 242 (10) 232 4,518 232 4,750	Restricted funds 2023 £000 10,999 20,063 - - - 31,062 - 14 29,026 29,040 2,022 10 2,032 14,681 2,032 16,713	Total funds 2023 £000 17,242 22,867 313 138 110 40,670 309 3,652 34,445 38,406 2,264 - 2,264 19,199 2,264 21,463	Total funds 2022 £000 14,972 22,837 178 - 579
				38,566
				197 3,658 27,530
				31,385
				7,181 -
				7,181
				12,018 7,181
				19,199

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 4 74 0 to 7 570 form part of these financial statements .

Page 36

CARE INTERNATIONAL UK (A Company Limited by Guarantee) REGISTERED NUMBER: 1911651

CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2023

Note Fixed assets Tangible assets 11 Investments 12 Current assets Debtors: Amounts falling due within one year 13 Cash at bank and in hand Creditors: Amounts falling due within one year 14 Net current assets Total assets less current liabilities Creditors: Amounts falling due within one year 15 Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds	2023 £000 11,755 14,037 25,792 (4,373)	2023 £000 20 39 59 21,419 21,478 (15) 21,463 16,713 4,750 21,463	2022 £000 11,487 12,912 24,399 (5,254)	2022 £000 58 39 97 19,145 19,242 (43) 19,199 14,681 4,518 19,199

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................

Sribavan Srisathkurunathan

...............................................

Lyndall Stein Chair of Trustees

Chair, Finance and Audit Committee

Date: 14 March 2024

Page 37

CARE INTERNATIONAL UK (A Company Limited by Guarantee) REGISTERED NUMBER: 1911651

CHARITY BALANCE SHEET AS AT 30 JUNE 2023

Note Fixed assets Tangible assets 11 Investments 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 15 Total net assets Charity funds Restricted funds 16 Unrestricted funds 16 Total funds	2023 £000 11,935 13,866 25,801 (4,357)	2023 £000 20 39 59 21,444 21,503 (15) 21,488 16,713 4,775 21,488	2022 £000 11,695 12,711 24,406 (5,232)	2022 £000 58 39 97 19,174 19,271 (43) 19,228 14,681 4,547 19,228

The Group has taken advantage of the exemption under s408 of the Companies Act 2006 and has not prepared a separate Statement of Financial Activities for the Charity.

The Charity's net movement in funds for the year was £2,260k (2022 - £7,201k).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................ Lyndall Stein Chair of Trustees Date: 14 March 2024

................................................ Sribavan Srisathkurunathan

Chair, Finance and Audit Committee

Page 38

CARE INTERNATIONAL UK

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023

Note Cash flows from operating activities Net cash used in operating activities 20 Cash flows from investing activities Investment income Purchase of tangible fixed assets 11 Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 21	2023 £000 993 138 (6) 132 1,125 12,912 14,037	2022 £000 (7,079) 17 - 17 (7,062) 19,974 12,912

The notes on pages 4 74 0 to 7 57 0 form part of these financial statements

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

1. General information

CARE International UK is a registered charity (Number 292506) and a private company (Number 1911651) limited by guarantee. The objects of the company, as set out in the Memorandum and Articles of Association, are to relieve poverty and sickness, to promote the preservation and protection of health and to advance education among the world’s poor.

2. Accounting policies

2.1 Basis of preparation of financial statements

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

CARE International UK meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

2.2 Going concern

The Charity has continued to manage its finances effectively throughout the financial year ending 30 June 2023, increasing unrestricted reserves from £4.5m to £4.6 [7] mduring the year.

In preparing the going concern assessment, income and expenditure projections have been extended to 30 June 2026 and cashflow projections to 30 June 2025. A baseline projection has been prepared based upon the Board approved latest forecast. In addition to the baseline projection, alternative scenarios have been modelled which consider the impact of potential declines in income of up to 20% in both programme and fundraising. A further scenario has been also prepared – a cumulative crystallization of both scenarios at the same time – to assess the impact such a scenario would have on the financial sustainability of the Charity. In this scenario the charity would have sufficient unrestricted cash resources as well as reserves to continue its operations.

For this reason, the Trustees have concluded that there is no material uncertainty relating to going concern.

Page 39

CARE INTERNATIONAL UK

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations, including regular giving and appeals, are recognised as income once CARE International UK has the right to receive the donation, when it is probable that the economic benefits will be received and that the amount of the donation can be measured reliably.

Income from sponsors is recognised on a receivable basis.

Legacies are accounted for as income once the receipt of the legacy becomes probable and quantifiable and the entitlement criteria have been met. Entitlement is taken as the earlier of the date on which either:

the charity is aware that probate has been granted,
the estate has been finalised by the executor(s) to the Trust that a distribution will be made, or when a distribution will be made, or
when a distribution is received from the estate.

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of granting of probate, and the criteria for income recognition has not been met, then the legacy is treated as a contingent asset and disclosed if material.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income earned under contracts with donors where payments are contingent on the achievement of specified results is recognised in the SOFA in proportion to the stage of completion of the project. Where it is probable that total contract costs exceed total contract income, the expected deficit is recognised immediately. Income and expenditure in relation to these contracts are recognised within restricted funds, with any resulting surplus or deficit shown as a transfer to or from unrestricted funds.

Contributions and donations in kind are recorded at fair values during the year of contribution and recorded as restricted income and expenditure in the SOFA.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Income from trading activities is accounted for on an accrual basis.

Page 39

CARE INTERNATIONAL UK

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Leasehold improvements	- over the remaining life of the lease
Office and other equipment	- 7 years
IT equipment	- 3 years

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

2. Accounting policies (continued)

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities 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.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.12 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.13 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight-line basis over the lease term.

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

2. Accounting policies (continued)

2.14 Pensions

Contributions to the defined contribution pension scheme are recognised in the SOFA when they are payable. The money purchase nature of the scheme assures there will be no funding deficit or surplus accruing to the Charity in the future. The pension scheme is independently administered. The assets of the scheme are held separately from those of the Charity.

The Charity also participates in the Pensions Trust Growth Plan. This is a multi-employer pension scheme where it is not possible to separately identify the assets and liabilities of participating employers. This is a money purchase arrangement with historical guarantees. The scheme is subject to the funding legislation outlined in the Pensions Act 2004. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out as of 30 September 2019, which showed a deficit. The pension trustees have asked for the participating employers to pay additional contributions to the scheme to eliminate this funding shortfall. These recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities. The liability recognised for this obligation is the net present value of the deficit reduction contributions payable under the plan and is held as a provision in the Balance Sheet. The current overall position of the fund and the assumptions made are provided in Note 23.

2.15 Taxation status

Care International UK is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter three Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. The Charity’s trading subsidiary will pay available profits to the Charity under the Gift Aid scheme, thereby eliminating or reducing their respective corporation tax liabilities.

The Charity is able to partially recover Value Added Tax (VAT). Expenditure subject to VAT that is not recoverable is recorded in the Accounts inclusive of VAT. The subsidiary trading company makes qualifying donations of taxable profit to the Charity to the full extent allowable. Unless material, any Corporation Tax liability arising in the subsidiary is included within the expenditure by the Group.

2.16 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 Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

2. Accounting policies (continued)

2.17 Areas of significant judgement and estimates

Significant accounting judgements and estimates

The Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These judgements and estimates are continually evaluated, based upon experience, reasonable expectations of the outcome of future event and professional and expert advice. The significant judgements and estimates that could impact the carrying amounts of assets and liabilities are detailed below:

Income recognition

Income recognition requires judgement to appropriately apply the income accounting policies across the many complex funding streams the Charity has. Note 2.3 details the accounting principles adopted and their application across the significant funding streams. The judgements are continually reassessed and where appropriate provision is made for contingencies or deferrals are made to account for conditions yet to be fulfilled.

Cost Allocation methodology

The cost allocation methodology requires a judgement as to the most appropriate basis to use to apportion Support Costs. These are reviewed annually to assess whether the basis adopted continues to be reasonable. Support Costs are allocated on a pro rata basis, based on their use as measured by direct expenditure.

Pensions Trust scheme deficit

The assumptions underpinning the measurement of the Pension Trust liability depend upon significant judgements and estimates. Details of the potential liability relating to withdrawal from the Pensions Trust scheme are set out in Note 23. The Trustees consider the probability of this liability crystallising to be remote.

Lendwithcare

Lendwithcare funds are not presented as part of CARE International UK’s assets. To ensure this remains appropriate, legal advice has been obtained and is updated on a regular basis. Any updates to the terms and conditions are scrutinised to ensure that it continues to be appropriate for CARE International UK to operate and disclose that the scheme is an agency arrangement.

The Trustees do not consider there to be any other areas of significant judgement or estimates.

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

3. Income from donations and legacies

Donations and Grants Individual and corporate donors including legacies Disasters Emergency Committee (DEC) Gifts & Contributions in Kind Total 2023 Donations and Grants Individual and corporate donors including legacies Disasters Emergency Committee (DEC) Total 2022	Unrestricted funds 2023 £000 5,738 505 - 6,243 Unrestricted funds 2022 £000 5,737 125 5,862	Restricted funds 2023 £000 3,405 6,232 1,362 10,999 Restricted funds 2022 £000 5,230 3,880 9,110	Total funds 2023 £000 9,143 6,737 1,362 17,242 Total funds 2022 £000 10,967 4,005 14,972

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

4. Income from charitable activities

Foreign, Commonwealth & Development Office European Commission including Directorate for Humanitarian Aid and Civil Protection Other Donors and Funders Foreign, Commonwealth & Development Office European Commission including Directorate for Humanitarian Aid and Civil Protection Other Donors and Funders	Unrestricted funds 2023 £000 1,558 39 1,207 2,804 Unrestricted funds 2022 £000 2,015 36 2,464 4,515	Restricted funds 2023 £000 10,932 87 9,044 20,063 Restricted funds 2022 £000 16,165 172 1,985 18,322	Total funds 2023 £000 12,490 126 10,251 22,867 Total funds 2022 £000 18,180 208 4,449 22,837

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

5. Income from other trading activities

Income from trading subsidiary

The trading income from the wholly owned subsidary, CARE International Enterprises Limited, derives from:

Providing IT support to seven European CARE International members and their respective country offices
Fees charged to corporate partners for use of the CARE name and logo
Royalty income from book sales

Total trading income Total 2022	Unrestricted funds 2023 £000 313 178	Total funds 2023 £000 313 178	Total funds 2022 £000 178

6. Expenditure on raising funds

Costs of raising voluntary income

Individuals Institutional donors Corporate donors Media & Communications Support costs	Unrestricted funds 2023 £000 1,841 269 720 460 348 3,638	Restricted funds 2023 £000 1 - - - 13 14	Total funds 2023 £000 1,842 269 720 460 361 3,652

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

6. Expenditure on raising funds (continued)

Individuals Institutional donors Corporate donors Media & Communications Support costs	Unrestricted funds 2022 £000 1,922 321 357 613 350 3,563	Restricted funds 2022 £000 55 - 17 - 23 95	Total funds 2022 £000 1,977 321 374 613 373 3,658

Expenditure on Trading Activities

The trading costs incurred by the wholly owned subsidiary, CARE International Enterprises Limited, comprise:

	Unrestricted	Total	Total
	funds	funds	funds
	2023	2023	2022
	£000	£000	£000
Trading subsidiary costs	309	309	197

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

7. Analysis of expenditure on charitable activities

Summary by fund type

Humanitarian response Development work Advocacy Humanitarian response Development work Advocacy	Unrestricted funds 2023 £000 2,487 2,591 341 5,419 Unrestricted funds 2022 £000 2,385 2,640 309 5,334	Restricted funds 2023 £000 14,848 14,046 132 29,026 Restricted funds 2022 £000 11,144 10,950 102 22,196	Total 2023 £000 17,335 16,637 473 34,445 Total 2022 £000 13,529 13,590 411 27,530

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

8. Analysis of expenditure by activities

Humanitarian response Development work Advocacy	Activities undertaken directly 2023 £000 15,756 15,123 430 31,309	Support costs 2023 £000 1,579 1,514 43 3,136	Total funds 2023 £000 17,335 16,637 473 34,445

Humanitarian response Development work Advocacy	Activities undertaken directly 2022 £000 12,220 12,276 371 24,867	Support costs 2022 £000 1,309 1,314 40 2,663	Total funds 2022 £000 13,529 13,590 411 27,530

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

9. Support costs

Support costs in 2023 amounted to £3.5m (2022: £3.0m) and a breakdown by area of expenditure is provided in the table below. The allocation of support costs to fundraising and charitable activity has been provided in Notes 6 & 8.

Management Office costs Finance & IT Human resources Governance Management Office costs Finance & IT Human resources Governance	Unrestricted funds 2023 £000 678 204 1,560 420 510 3,372 Unrestricted funds 2022 £000 1,143 60 725 367 556 2,851	Restricted funds 2023 £000 - 4 - 121 - 125 Restricted funds 2022 £000 - 10 13 162 - 185	Total funds 2023 £000 678 208 1,560 541 510
			3,497
			Total funds 2022 £000 1,143 70 738 529 556
			3,036

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

109. Support costs (continued)

Support costs (continued)
	2023	2022
	£000	£000
Included within Unrestricted Support Costs are the following:
Fees payable to the Charity's current auditor for the audit of this set of
Accounts	69	65
Fees payable to the Charity's current auditor for tax compliance work	6	6
Fees payable to the Charity's previous auditor for prior years' audit and tax
compliance work, not previously reported	163	53
Account preparation fees relating to this set of Accounts	7	-
Depreciation charges	44	64

10. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes Remeasurement of defined benefit pension schemes	Group 2023 £000 4,637 469 215 - 5,321	Group 2022 £000 4,646 447 229 (132) 5,190	Charity 2023 £000 4,637 469 215 - 5,321	Charity 2022 £000 4,646 447 229 (132) 5,190

Included within Wages and salaries costs are termination costs of £124k (2022: £34k) and other staff costs of £124k (2022: £282k). Termination costs relate to a limited number of redundancies and settlement agreements paid during the year.

In addition to full-time permanent staff, CARE International UK employed temporary staff at a cost of £48k (2022: £189k). This was due to some positions being filled on an interim basis. These costs are included in other staff costs.

The Charity participates in a multi-employer defined benefit pension scheme adminstered by The Pensions Trust (TPT). The Charity recognises a liability in relation to the agreed deficit funding arrangement, and the amount recognised is the net present value of the deficit reduction contributions payable.

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

10. Staff costs (continued)

The average number of persons employed by the Charity during the year was as follows:

Charitable activities Fundraising Support	Group 2023 No. 41 39 19 99	Group 2022 No. 48 32 18 98

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

	Group	Group
	2023	2022
	No.	No.
In the band £60,001 - £70,000	-	4
In the band £70,001 - £80,000	3	-
In the band £80,001 - £90,000	1	1
In the band £100,001 - £110,000	1	-
In the band £130,001 - £140,000	-	1

The highest paid individual in the organisation is the Chief Executive Officer. In 2023 the Chief Executive’s remuneration (pay and pension) placed them in the £100,001-£110,000 band (2022: £130,001-£140,000 band).

Employer contributions are made to a defined contribution pension scheme in respect of 5 higher paid employees (2022: 6). Total employer contributions in respect of higher paid employees during the year amounted to £16k (2022: £26k).

The Key Management Personnel of the Group are the Trustees and the senior management team. The short-term employee benefits for the senior management team for 2023 was £443k (2022: £526k).

Trustees' remuneration and expenses

None of the members of the Board received any remuneration for their work as trustees (2022: Nil).

Expenses reimbursed to trustees for travel undertaken on the Group's behalf in 2023 totaled £275 (2022: £1,092). The Group paid £25.2k (2022: £21.6k) for Combined Liability insurance, which includes trustees' indemnity insurance cover. Trustees’ donations were £5.8k (2022: £2.6k).

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

11. Tangible fixed assets

Group and Charity

Cost or valuation At 1 July 2022 Additions Disposals At 30 June 2023 Depreciation At 1 July 2022 Charge for the year On disposals At 30 June 2023 Net book value At 30 June 2023 At 30 June 2022	Office equipment £000 3 - - 3 1 - - 1 2 2	Computer equipment £000 257 6 (30) 233 201 44 (30) 215 18 56	Total £000 260 6 (30) 236 202 44 (30) 216 20 58

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

12. Fixed asset investments

Group and Charity Cost or valuation At 1 July 2022 At 30 June 2023 Net book value At 30 June 2023 At 30 June 2022	Unlisted investments £000 39 39 39 39

The Unlisted Investment represents a cash investment in CARE International Revolving Loan Fund (see paragraph b below).

a) Subsidiary company investments held by the Charity include a £2 (2022: £2) investment in the subsidiary company at cost. The Charity holds 100% of the issued share capital of CI Enterprises Limited, which is registered in England and Wales. The Company's principal activity is to undertake trading for the Charity. A summary of the subsidiary's results and its financial position as at 30 June 2023 is given in Note 18.

b) During the year CARE International participated in the Revolving Fund established with other members of the CARE International Confederation, maintaining its investment of €45,500. The Fund, which is administered by the CARE International Secretariat in Geneva, is used to provide short-term interestbearing loans to finance cash flow needs of members for projects across CARE International, where funds are received from donors after they are needed for implementation.

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

13. Debtors

Due within one year Receivable from donors and funders Due from subsidiary undertaking Other debtors Prepayments and accrued income Program advances to CARE country offices and partner	Group Group 2023 2022 £000 £000 348 4,583 - - 454 420 2,311 2,217 8,642 4,267 11,755 11,487	Charity 2023 £000 348 201 436 2,308 8,642 11,935	Charity 2022 £000 4,583 292 336 2,217 4,267
			11,695

Program advances to CARE country offices and partners represent funds transferred to enable program implementation, which have not yet been utilised.

14. Creditors: Amounts falling due within one year

Provision for pension plan recovery Trade creditors Payable to donors and funders Funds due to CARE country offices and partners Other creditors Accruals and deferred income	Group 2023 £000 29 260 12 3,193 199 680 4,373	Group 2022 £000 29 1,688 12 2,652 164 709 5,254	Charity 2023 £000 29 260 12 3,193 200 663 4,357	Charity 2022 £000 29 1,688 12 2,652 164 687
				5,232

Funds due to CARE country offices and partners represent funds utilised for programme implementation for active awards, which have not yet been transferred by CARE International UK.

Page 39

CARE INTERNATIONAL UK

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

14. Creditors: Amounts falling due within one year (continued)

Deferred income at 1 July Amounts released from previous periods	Group 2023 £000 - - -	Group Charity 2022 2023 £000 £000 25 - (25) - - -	Charity 2022 £000 25 (25) -

Deferred income represents income relating to multi-year contract payments and performance related grants paid in advance.

15. Creditors: Amounts falling due after more than one year

Creditors: Amounts falling due	after more than one year
	Group	Group	Charity	Charity
	2023	2022	2023	2022
	£000	£000	£000	£000
Other loans	15	43	15	43

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

16. Statement of funds

Statement of funds - current year

Unrestricted funds General Funds Restricted funds Donations & Legacies Individual and corporate donors including legacies Disaster Emergency Committee (DEC) Charitable Activities Foreign, Commonwealth & Development Office European Commission including Directorate for Humanitarian Aid and Civil Protection Other donors and miscellanous restricted funds Total of funds	Balance at 1 July 2022 £000 4,518 6,540 2,143 3,681 303 2,014 14,681 19,199	Income £000 9,608 4,767 6,232 10,932 87 9,044 31,062 40,670	Expenditure £000 (9,366) (2,538) (7,368) (13,570) (232) (5,332) (29,040) (38,406)	Transfers in/out £000 (10) 16 12 - - (18) 10 -	Balance at 30 June 2023 £000 4,750
					8,785 1,019 1,043 158 5,708
					16,713
					21,463

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

16. Statement of funds (continued)

The restricted funds represent unexpended balances on donations and grants given for specific purposes, for which conditions have been imposed as to their use. The funds have been grouped by donor as the project restrictions are set by the donors. Within each grouping, there are numerous restricted programmes for which the funding can only be spent in specific geographical areas and on specific activities. The material balances are further explained below:

• Individual and corporate donors including legacies represent donations raised by CIUK and legacies left to the Charity which are for our restricted appeals. A significant proportion of this restricted funding relates to the Turkey/Syria earthquake appeal, the Pakistan Floods appeal and the Ukraine appeal and is to be spent on providing aid to those impacted by these emergencies.

• CIUK are a member of the Disaster Emergency Committee and we receive restricted funding to run programmes resulting from their emergency appeals. This fund grouping relates to funds received from the DEC as a result of their emergency appeals for Pakistan Floods, Turkey/Syria earthquake, Ukraine, Afghanistan, and their coronavirus appeals for Syria and India, which must be spent responding to those emergencies.

• The Foreign, Commonwealth & Development Office (FCDO) fund grouping represents the balance of funds received from FCDO & UK Government sub-awards towards a number of restricted programmes. These include the Yemen Food security Safety Net Programme, Adolescent Girls’ Education in Somalia programme, Building Local Resilience programmes in Syria, Gender Equality programme in the West Bank and the Recover, Reintegration and Resilience programme in Afghanistan.

• The other donor and miscellaneous restricted funds includes all other restricted programmes, including grants from the START network, other CARE International members, the UN and trusts and foundations, which are restricted in terms of the geographical area and purpose that they can be spent on. The restricted funds generating the most income in FY2023 are the 'Education Cannot Wait - Somalia Response' programme and the' Lifesaving Water Sanitation and Hygene (WASH)' programme in Yemen.

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds General Funds Restricted funds Donations & Legacies Individual and corporate donors including legacies Disaster Emergency Committee (DEC) Charitable Activities Foreign, Commonwealth & Development Office European Commission including Directorate for Humanitarian Aid and Civil Protection Other donors and miscellanous restricted funds Total of funds	Balance at 1 July 2021 £000 2,943 3,967 73 2,391 186 2,458 9,075 12,018	Income £000 10,738 5,225 3,880 16,163 166 2,394 27,828 38,566	Expenditure £000 (9,094) (3,319) (1,810) (14,405) (208) (2,549) (22,291) (31,385)	Transfers in/out £000 (69) 667 - (468) 159 (289) 69 -	Balance at 30 June 2022 £000 4,518 6,540 2,143 3,681 303 2,014 14,681 19,199

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

16. Statement of funds (continued)

Transfers between funds in the year ended 30 June 2022 are summarised as follows:

£260k was transferred from Restricted to Unrestricted funds, in relation to the clearing of remaining balances on restricted fund codes and awards which had ended prior to 1 July 2022, where the Charity had confirmed that no obligations to donors or partners remained. In most instances, these remaining balances occured as a result of expenditure incurred to implement the awards being coded elsewhere in advance of receiving and recording the corresponding income.

£95k was transferred from Unrestricted to Restricted funds to correct the treatment of cost recovery relating to prior years.

£234k was transferred from Unrestricted to Restricted funds following legal advice sought by the Charity regarding the classification of funds.

Transfers between the restricted fund categories were processed to ensure that the ending fund balances by donor group, as presented in this note, agree to the sum of the ending fund balances by donor group as per our ledger system. As such:

£433k was transferred in to the 'Individual and corporate donors including legacies' fund category,
£220k was transferred in to the 'European Commission including Directorate for Humanitarian Aid and Civil Protection' fund category,
£409k was transferred out of the 'FCDO/DFID' category, and
£244k was transferred out of the 'Other donors and miscellaneous restricted funds' category.

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year Total Analysis of net assets between funds - prior year Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year Total	Unrestricted funds 2023 £000 20 39 6,040 (1,334) (15) 4,750 Unrestricted funds 2022 £000 58 39 5,659 (1,195) (43) 4,518	Restricted funds 2023 £000 - - 19,752 (3,039) - 16,713 Restricted funds 2022 £000 - - 18,740 (4,059) - 14,681	Total funds 2023 £000 20 39 25,792 (4,373) (15) 21,463 Total funds 2022 £000 58 39 24,399 (5,254) (43) 19,199

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

18. Subsidiary

The Charity owns the whole of the issued ordinary share capital of CI Enterprises Ltd, a company registered in England and Wales (Company number 02306212) and whose registered address is c/o Ashurst LLP, London Fruit and Wool Exchange, 1 Duval Square, London, England, E1 6PW.

The subsidiary is used for trading activities to provide income for the Charity. The activities during the year were the provision of IT support to seven European CARE International Member offices and their respective country offices, fees charged to corporate partners for use of the CARE name and logo and receiving royalty income from book sales.

Total trading income Cost of Sales Gross profit Administrative expenses Profit / (Loss) before qualifying charitable donation and taxation Taxation Profit / (Loss) after taxation	2023 £000 313 (294) 19 (15) 4 - 4	2022 £000 178 (173) 5 (25) (20) - (20)

. The aggregate of the assets and liabilities were:

Assets Liabilities (Deficit)	2023 £000 190 (215) (25)	2022 £000 285 (314) (29)

CI Enterprises Limited has entered a binding deed of covenant to pay all its taxable profits to its parent charity, CARE International UK, as a qualifying charitable donation. Ordinarily these taxable profits transferred to the parent entity are recognised through equity rather than as an expense through the profit and loss, and therefore an operating profit exists at the balance sheet date. If the qualifiying distribution is made within 9 months of the year end, no corporation tax is due on the profits.

For the year ended 30 June 2023 no qualifying distribution (2022 - £NIL) was made to CARE International UK as the profit made in the year has been offset in full against accumulated prior year losses.

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

19. Lendwithcare

Lendwithcare is a peer-to-peer lending relationship between individuals and organisations based in the UK and people in low-income countries. It is an innovative way of raising microfinance to help entrepreneurs in developing countries to lift themselves out of poverty.

The total number of lenders, since the scheme’s inception in April 2010, is 79,920 (2022: 74,864) with 51,772 (2022: 49,524) active lenders as at 30 June 2023. Active lenders are defined as a lender who has logged in, made a loan, or received a repayment in the last 12 months.

The total value of loans made to entrepreneurs since the inception of the scheme has been £45.,6m. This has supported 182,573 (2022: 170,670) entrepreneurs since the beginning of the scheme. In compliance with the Charities SORP (FRS102), the Charity, as agent, discloses the value of funds added to the scheme; funds loaned to entrepreneurs through microfinance partners, which includes both new funds from lenders and funds repaid to lenders and then re-loaned to another entrepreneur; together with the balances held at 30 June 2023.

Funds received

The value of new funds added to the scheme during the year, by existing and new lenders, is:

Added to the scheme Withdrawn	2023 £000 1,709 (254) 1,455	2022 £000 2,109 (199) 1,910

. Funds paid

The total value of loans (from new funds and funds re-loaned) during the year is:

Loans during the year	2023 £000 5,961 5,961	2022 £000 6,048
		6,048

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

19. Lendwithcare (continued)

Balance held as agent

The amount of lenders funds held:

Amounts held by CIUK at year-end as agent	2023 £000 2,864 2,864	2022 £000 2,941 2,941

Lenders’ funds do not form part of the assets of CARE International UK and are therefore not consolidated within the financial statements. They are not available for use by the Charity.

The operating costs of the scheme of £0.95m (2022: £0.9m) are included in expenditure on raising funds (individuals) within the financial statements and in Note 6. These are the costs of managing the scheme and raising new funds for the scheme.

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

Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges 11 Investment income Decrease/(increase) in debtors 13 Decrease in creditors 14 Net cash provided by/(used in) operating activities	Group 2023 £000 2,264 44 (138) (266) (911) 993	Group 2022 £000 7,181 64 (17) 181 (14,488) (7,079)

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

21. Analysis of cash and cash equivalents

Cash in hand Total cash and cash equivalents	Group 2023 £000 14,037 14,037	Group 2022 £000 12,912 12,912

22. Analysis of changes in net debt

Cash at bank and in hand Debt due within 1 year Debt due after 1 year	At 1 July 2022 Cash flows £000 £000 12,912 1,125 (41) - (43) 28 12,828 1,153	At 30 June 2023 £000 14,037 (41) (15) 13,981

23. Pension commitments

All new employees are auto-enrolled into a Group Personal Pension Plan with Royal London (formerly Scottish Life) comprising a 5% employer contribution and 3% employee contribution.

Contributions to the scheme for the year were £350k (2022: £438k) and at the end of June 2023 there were 89 members in the scheme (2022: 79).

The Charity also participates in a multi-employer defined benefit scheme administered by The Pensions Trust. This scheme was closed to new members at the end of April 2014, and existing members continue to benefit from a 7.5% employer contribution against a 4% employee contribution.

Contributions to the scheme for the year were £45k (2022: £50k) and at the end of June 2023 there were 7 members in the scheme (2022: 9).

Contributions to the multi-employer scheme paid into The Pensions Trust’s Growth Plan ("the Plan”) up to and including September 2001 have been converted to defined amounts of pension payable from Normal Retirement Date. From October 2001, contributions were invested in personal funds which have a capital guarantee, and which are converted to pension on retirement, either with the Growth Plan or by purchasing an annuity.

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

23. Pension commitments (continued)

Following a change in legislation in September 2005, there is technically a potential liability to CARE International UK, applicable to employers with pre-October 2001 liabilities in the Plan. When an employer withdraws from a pension scheme which is in deficit, the employer is required by law to pay its share of the deficit, calculated on a statutory basis (known as the buy-out basis). If Plan liabilities exceed assets, a buy-out debt will exist if CARE International UK withdraws all employees from the scheme. The leaving employer’s share of the buy-out debt is the proportion of the Plan’s pre-October 2001 liability attributable to employment with the leaving employer compared with the total amount of the Plan’s pre-October 2001 liabilities. Given the number of factors to be considered in determining the liabilities the debt can fluctuate over time.

The Pensions Trust’s most recent estimate of the cost of withdrawal from the Plan is £417k based on the financial position of the Plan at 30 September 2022 (2020: £1.17m). The next estimate based on the financial position as at 30 September 2023 is expected to be released in July 2024. The Pensions Trust has advised that an employer will only be deemed to have withdrawn if it has no active members remaining in the Plan and no eligible employees to whom to offer membership to the Plan. The chance of this debt crystallising is therefore considered remote. CARE International UK has no intention of withdrawing from the scheme and will continue to make a provision for the recovery of pension deficit amounts.

Under the Pensions Trust recovery plan, deficit contributions made by CARE International UK during the year were £29k (2022: £65k). This recovery plan is intended to run to 2025. In compliance with the Charities Statement of Recommended Practice (FRS102), the provision for the net present value of the future contributions to the deficit recovery plan is held on the Balance Sheet. Details of this provision are given in Notes 14 & 15, Creditors.

24. Operating lease commitments

At 30 June 2023 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

			Group	Group
			2023	2022
			£000	£000
Not later than	1	year	74	-

The following lease payments have been recognised as an expense in the Statement of Financial Activities:

	Group	Group
	2023	2022
	£000	£000
Operating lease rentals	48	-

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

25. Related party transactions

The Charity is a member of the Disasters Emergency Committee (DEC) and in the year paid a subscription of £34.6k (2022: £34.7k). As an automatic part of membership, CARE International UK’s Chief Executive is a trustee of the DEC. The Charity receives funds from DEC appeals and amounts received and receivable in the year were £6.2m (2022: £4.0m).

Page 39

CARE INTERNATIONAL UK (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

26. Donor funding

The information in the table below is provided to meet special conditions in restricted grant agreements requiring CARE International UK to disclose cash received from these grants in the Annual Financial Accounts.

	Cash received	Cash received
Project Name	FY2023	FY2022
Foreign Commonwealth and Development Office(FCDO)
GENRE+ Phase II (Mali) Gender-transformative and Equitable Natural REsource Management for Resilience, Social Cohesion and Peace Phase II	315	-
MEPPCSSF: Gender Equalityin the Occupied Palestinian Territories	-	874
Developing Resilience of households and communities affected by conflict in Northern, Central and Southeren Syria	-	3,541
Steps tow ards Afghangirls, Educational Success Phase 2(STAGES II)via Agha Khan Foundation	761	1,019
Kobcinta Waxbarashada Gabdhaha - Somali Girls Education Promotion	879	1,095
IGATE - Transition via World Vision	-	337
DFID WASH Reconstruction Intervention Track 3	150	220
Adolescent Girls' Education Somalia - AGES via Pricew aterhouseCoopers	5,688	3,915
COVID-19 secondaryimpact Resilience Response in Phase 2, 5 and Karnali via Save the Children	-	142
Afghanistan Recovery, Reintegration and the Resilience Programme (R3) via Norw egian Refugee Council	1,292	682
Building Resiliency and Gender Equality of the Most Marginalised Communities through Multi-Sector Approaches to Delivering Quality Sexual and Reproductive Health and Rights via Marie Stopes International	-	469
Piloting Gender-transformative approaches to Natural Resource Management in a time of Climate and Environmental Stress	-	431
Women Lead in Emergencies: StrengtheningGBV Response in Tigray	741	38
BuildingLocal Resilience in Syria(BLRS)	5,380	-
Department for Enviroment , Food and Rural Affairs(DEFRA)
Achieving Sustainable Forest Management through Community Managed Protected Areas in Madagascar	265	44
Disasters Em ergency Committee(DEC)
Pakistan Multi-sector Integrated Flood EmergencyEarlyRecovery2022(Phase 2)2023	371	-
Syria Coronavirus Appeal(Phase 2)	20	720
India Coronavirus Appeal	90	368
Afghanistan Multi-sector Integrated EmergencyResponse 2022-2023(Phase 1)	-	736
Humanitarian Response to Ukrainian Crisis(Phase 1)	-	2,096
Afghanistan Multi-sector Integrated RecoveryResponse(Phase 2)	702	-
Humanitarian Response to Ukrainian Crisis(Phase 2)	4,388	-
Pakistan Multi-sector Integrated Flood EmergencyResponse 2022 - 2023(Phase 1)	391	-
Earthquake Response in Türkiye and Northw est Syria(Phase 1)	850	-
European Commission (EC)
Syria Resilience Consortium	-	1,117
Wanbel Wantaim (Peace Together) in Papua New Guinea's Highlands	147	255
Education Cannot Wait
Somalia Drought Response 2022	3,356	-
James Percy Foundation
India Gujarat Nutrition Programme (Vruddhi)	79	141

Page 39

(A Company Limited by Guarantee)

CARE INTERNATIONAL UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

The Pow er of Nutrition
India Gujarat Nutrition Programme (Vruddhi)	223	245
Jersey Overseas Aid Comission
My Healthy Schools - Guatemala	-	28
WASH services of vulnerable and displaced population, especially for w omen and children in Bani Sa’ad district, Al Mahw it governorate in Yemen	14	120
Horn of Africa Humanitarian Response 2022 in Kenya	200	-
WWF USAID Governance
Documenting Community Score Cards and other Social Accountability Mechanisms	-	6
START Network
Alert N-11, Response-Coldw aves in Nepal	107	-
Alert 679 – Zambia Flooding via World Vision	66	-
Nepal - Anticipation Tool Development Cold-Hot Wave Extension	8	-
Alert 684 South Sudan (Displacement due to Conflict)	235	-
Pakistan DRF Heatw ave - Multan	-	35
Pakistan DRF Jacobabad - Multan	-	33
Alert N-02 Humanitarian Response to Flood Affected Communities in Mid and Western Nepal 2021 via Mercy Corps	-	30
Alert N-03 Nepal (Flooding)	-	150
Alert 564 - Emergency response in health/nutrition, w ater, sanitation and hygiene (WaSH) and protection for Cameroonian refugees in Farcha Malezi settlement, N'Djamena via Solidarities International	-	66
Alert N-04 Nepal (Anticipation of Cold Wave) via Save the Children	-	200
Alert 589 - Emergency response to Magw i post-conflict displacement via Christian Aid	-	-
Alert 591 Uganda (Cross-Border Displacement due to Conflict)	-	282
Nepal pilot: responding to humanitarian emergencies (Phase 2)	262
Alert 006 Tool Development Nepal Cold Waves	-	35
Alert SRF Pakistan Heatw ave 2022 (Sibi only)	-	57
Alert 621 Guatemala (Food insecurity)	300	-
Alert 630 Tuvalu (Drought)	41	-
Alert 631 Yemen (Flooding)	400	-
Alert 632 India (Flooding)	130	-
Alert 637 Sierra Leone (Flooding)	300	-
Alert 638 Chad (Flooding)	300	-
Alert 642 Syria (Cholera Outbreak)	300	-
Alert 630 Tuvalu (Drought) – Learning Grant	20	-
Alert 675 Philippines (Flooding)	350	-
Madagascar Cyclone 2023 Season	121	-
Alert 690 Vanuatu (Cyclone)	89	-
Alert 693 Malaw i (Cyclone)	186	-
Alert 695 Peru - flooding	70	-
United Nations Peace Building Fund (UNPBF)
Gender and Youth Promotion Initiative 2020 - Cote d'Ivoire	298	333
UKAID Match
Help Her Live Learn and Earn (HELP)	-	5
	29,882	19,865

Page 39

Legal and Administrative Information

Trustees

Lyndall Stein (Chair) 1 [appointed Chair of Board of Trustees 1 August 2022] Nigel Chapman (Acting Chair from 6 October 2021 to 31 July 2022) 1, 2 [resigned 6 December 2023] Edward Bickham 1 [resigned 8 December 2022] Esther Kwaku 1, 3 [resigned 6 December 2023] Nadine Nohr 3 Edward Sparrow 2, 3 Khalid El Ansari 2, 3 Desiree D’Souza 2 Anita Yuen 2 Sribavan Srisathkurunathan 2 [appointed 29 March 2023 - appointed Vice-Chair of the Board on 6 December 2023] Maliha Khan 1 [resigned 7 April 2023] Stephen Oxley 2 [resigned 4 July 2023]

Additional committee members

Wendy Fenton 1 - (resigned 14 March 2023) Nasra Ismail 1 (no longer a PPC member, as the committee did not have a quorum and was dissolved)

1 Programme and Policy Committee – Dissolved - last meeting was on 14 March 2023 2 Finance and Audit Committee 3 Ethics and People Committee

Senior Leadership Team

Eamon Cassidy Interim Chief Executive Officer [from 4 July 2022 to 6 July 2023] Helen McEachern Chief Executive Officer [from 22 August 2023] Dallan Cunniffe Interim Finance Director [from 6 June 2022 to 5 December 2022] Leo Skyner Finance Director [from 14 November 2022 to 30 September 2023] Bill Chidgey Interim Finance Director [from 30 September 2023] Erin Segilia Chase Director, Fundraising, Partnerships & Comms [to 18 February 2023] Laura Griffin Interim Director, Fundraising, Partnerships & Comms [from 18 February 2023] Helen Thompson Director of Programme and Policy [from 1 July 2022] Interim Chief Executive Officer [from 7 July 2023 to 25 August 2023] Joanna Lloyd-Jones Interim Director of People [from 22 May 2023]

Registered Office

C/o Ashurst LLP London Fruit and Wool Exchange 1 Duval Square, London E1 6PW

Auditors

Crowe U.K. LLP 4th Floor St James House St James Square Cheltenham GL50 3PR

Bankers

Barclays Bank plc Level 28 1 Churchill Place London E14 5HP

Solicitors

Ashurst LLP London Fruit and Wool Exchange 1 Duval Square, London E1 6PW

Thank you to everyone who supported CARE International UK in the last year.

This includes all those people who have made one-off or regular donations, taken part in fundraising events and campaigns, or made a loan through Lendwithcare. Thanks also to our generous anonymous donors. All of your support is invaluable in helping us save lives, defeat poverty, and achieve social justice around the world.

We couldn’t do it without you.

Statutory Donors

Conflict, Stability and Security Fund through the Foreign and Commonwealth Office (CSSF)

Disasters Emergency Committee (DEC)

European Commission (EC)

Foreign, Commonwealth and Development Office (FCDO)

Guernsey Overseas Aid

Jersey Overseas Aid

United Nations Development Programme (UNDP)

United Nations Office for Project Services (UNOPS)

United Nations Peacebuilding Fund (UNPBF)

Trusts, Foundations, Organisations, and Charities

ActionAid UK

Aga Khan Foundation UK

Thani Bin Abdullah Bin Thani Al-Thani Humanitarian Fund

Better Cotton Initiative (BCI)

Corcoran Foundation

The Big Give

Equality and Human Rights Commission (EHRC)

Ethical Tea Partnership (ETP)

The Fawcett Society Ford Foundation

Global Challenges Research Fund

Grace Trust

Heald Charitable Trust

International Rescue Committee UK (IRC)

The IPSOS Foundation Islamic Relief Worldwide (UK) Jimmy Choo Foundation

Joseph Rowntree Reform Trust The MacDaibhidh Charitable Trust Marie Stopes International Megan Van’t Hoff Charitable Trust Mercy Corps Europe Norwegian Refugee Council Oxfam GB Oxford Brookes University Plan International UK People’s Postcode Lottery The Positive Action for Children Fund Power of Nutrition Results for Development Save the Children Solidarites International Souter Charitable Trust St Clare & St Francis Trust START Fund START Network The Tanzania Fund Tony Blair Institute TS Catto Trust VIIV Healthcare World Vision UK

Companies Apple (UK) Ashurst LLP AVIVA Bank ABC Bordelle Brown and Green Café Diageo Flutter Entertainment Hargreaves Lansdown Heathrow

GlaxoSmithKline (GSK)

Goldman Sachs Hogan Lovells IHG (InterContinental Hotels Group)

Leigh Day Maxis GBN

M&G

Microsoft Rewards/Give with Bing Mondelēz International, Inc.

N Brown Group

Ooni

PKP and Company Primark Stores (Ltd) Revolut

Sage

Société General

Spectris

Third Bridge Group Torstone Technology

Twinings

Unilever

White Cube

WISE

Contents

Strategic Report

Our Vision, Mission and Focus

Vision

Mission

Focus

CARE in Numbers

UN Sustainable Development Goals

Message from CARE International UK’s Chair

CARE International UK’s Goals

The Year in Focus

Humanitarian Emergencies

Pakistan Floods

Turkey-Syria Earthquake

Women Lead in Emergencies

Ethiopia

In the UK

#ChangetheStory

Because when we change the story about women, we change the story for women.

16 Inspirational Women

International Women’s Day

East Africa Cannot Wait

Advocating for Women’s Voice and Leadership

Lendwithcare: Changing Lives with Economic Opportunity

Business With CARE

Sexual Harassment Prevention in Primark Supply Chain

InterContinental Hotels Group: IHG Hotels & Resorts

Fundraising

Supporter Care

Financial Performance

Income

Expenditure

Restricted Deficit, Unrestricted Surplus and Reserves

Cash and Short-Term Deposits

Going Concern

Trading Subsidiary

Plans for the Future

1. Support women to lead on the frontlines of crisis

2. Build equitable, sustainable partnerships with local organisations to deliver more impact for people facing poverty and crisis

3. Raise our profile and influence for change in the UK

4. Contribute to CARE International’s work in over 100 countries to save lives, defeat poverty, and

achieve social justice.

5. Increase the diversity and sustainability of our income

6. Become an anti-racist, diverse, inclusive, and equitable organisation

Objectives for 2024

Implementing CARE International UK’s New Strategy

Programmes and Impact

Sustainable Funding and Finance

People and Culture

Governance and Controls

Directors’ Report

Structure, Governance and Management

Legal Structure

Related Organisations

Board of Trustees, Governing Committees and Management Team

Governance and Trustee Duties

• The likely consequences of any decision in the long term

• The desirability of the Charity in maintaining a reputation for high standards of business conduct

Fundraising Compliance Statement

Public Benefit Statement

Internal Control Environment

Internal Control

Risk Management and Principal Risks

Policies and Reporting

Serious Incidents

Other Policies and Statements

Safeguarding

Equity, Diversity, and Inclusion

Modern Slavery

Environmental Impact

Statement on Streamlined Energy and Carbon Reporting (SECR) FY23

Flight Emissions

Energy Efficient Actions

Statement of Trustees’ Responsibilities in Respect of the Trustees’ Annual Report and Financial Statements

Disclosure of Information to Auditors

Independent Auditor’s Report to the Members of CARE International UK

Opinion

Basis for opinion

Conclusions relating to going concern