The Economist Charitable Trust Trustees. report and flnanclal statements For the yoar ended March 31sl 2021 R9gistgrgd with thg ChaTIty Commisslon: 293709
Tha Economist charitab Trust Tw8tees' annual report Contents Page Trustees, report Independent examinels report Statement of financial actimlies Balance sheet Notes lo the financial stslemenls 10 Pag¢ | I
Thg Economlst Charltable Trust Trustees, annual rnport Trustees, report The trustees present their annual report and financial slalements for the year endod March 31812021. The Trust is governed by a Tnst Dee¢J set up on 20 January 1986. Principal Adlvlty of the Trust and a revl•w (rf actlvltlgs durfng the year The principal actiwty of the Trust is Ihe disbursement of monies received from The Economist Newspaper Limited lo various charhles. 60-70% of the Trust's donations go lo charities in the fields of communication, education, literacy and re-training for iTrJividuals groups WIKJ afe disadvantsged in some way. Approximately 30-40% of funds afe used to match donations made by employees of The Economist Group_ Remaining funds are ulilised to make small donations lo small and Eocal charities. The average donation in the year was £1,32412020- £860). The Trust also ceIVeS smaller amounts from various other sources, whith are disbursed. Ai March 31st 2021 the Trust had a surplus of £012020.. £9,450). The pollcy of the Trust Is lo maintaln suffictent reserves to meet its liabilitiey. Donations recognised by the Trust from The Economist Newspapei Limited during the period were £111,950 {2020'. £104,000). Organisational structurg The Economist Newspaper Lbmlled has sel up an adwsory panel of Trustees determines how 670) of the funds are donated, based on projecis nominated by the staff. The trustees also tra¢* donations which are made via matching to employee donations. Connected transactions The Trust receives the majorlty of ils income from The Economist Newspaper Limited, which also pays some administration costs M the trustees, behalf. Wrth this eXptiOn, il has had no Iransactitsns wrth persons connected lo the Trust. Page12
Th• Economlst Charltablo Trugt Trn8tse8' annual report Unpald voluntews The Trust places no reliance on unpaid volunteers other than one ol the trustees who perfoms certain administrative responsibilities and who is reimbursed expenses by The Economist Group. The members of the advisory panel are employees of The Economist Group and receive remuneration as employees of The Economist Group. Publlc boneflts The trustee8 are aware of the charty commission 9uidanee on public beneffits reporting. They believe the chaTity has achleved a public t)eneffl by disbursing donations lo various good ¢auses. Achlevements and porfomlance 2020121 was a year mthed by Ihe covid-19 pandemic and a shrft lo entlrely remole working for all staff across The Economist Group. The Iruslees worked lo ensure Ifiat the Charitable Trust remained visible Imthin the Group during this period, although with so much change happening aCTOSS the business it was a challenge to raise the profile of the trust. This period of Change SUlted in a decrease in staff one-off donations. During 20121 £11,601 of staff donations were matched, compared lo £27,199 the previous year. This was despite internal efforts lo increase participation, noliceable a double-malching scheme Ihal was pul in place lo support he Red Cross after the Beirut explosion, and to help the WHO when the covid-19 pandemic first started. This decrease was offset slighuy by an increase in GAYE donatlons Irom UK staff. thich reached £19,105 lup from £17,103 the year before). The reduction in one-off donation matching resulted in a larger amount avallable for the project grants, and we were pleased to see high levels of engagement with this process from staff across the regions. The lolal donated to prOjeS was £82,147. A total of 13 charitS were nominated by the staff, which was redu to a shortlist of 6 by the Irustees based on which ¢harilies best reflected the mission of The Economist Group. Ml 6 charsties received a grant from the Trust, wf(h the total amunt donate(I baseLI on a staff vole. Those charities were.. Indigo Chlldren's Fund1£18.0001, Room to Read (£16,378), Yes Fulures1£8,138}, Village Enlefprlse (£13.2001. One Acre Fund1£18,0001, Build on Belief1£8,9061. For 20121 the planned activty and Strategy remains very similar. but with several trustees terms coming lo an end, as well as a gradual to the Offi for staff, we are hoping for a reinVIg&Ied focus on donation matching. Pas¢13
Th• Economrst Chariiablè Trn¥t Trustees, annual report Reserves poliGy The Trusfs charitable donations and activities are funded by The Economist Newspaper Limited. The policy of the Trust is to maintain suffieient reserves to etsver any liquidity issues caused by timing differences beiween reipt of income and payment of donations or other li8bilitses. There is a limited need lo hold reserves since other than donations payable, there are minimal li8bililies. The timing of making charitable donations 18 al the discretion of tfuslees and decisions taken on the timing of payments are based on the availabilty of fUlS. Flnan¢ial rgvlow The Trust finishe(J the year wth no surplus. All of the funds are unrestricted and wll be Used in line with the Trust's reserves policy Page14
Thè Economlst Charitable Tntst Tntsto08' annual report miatlon Professional and finanal advisors The Trust hohts a current arKI deposll bank account wlh 8arday5 Bank PLC. 1 Churchill Place. LONDON. E14 5HP. A Eplon has carried out an in(Jependent examination of the aecounls. His address is Goldwns Chartered Accountants, 75 Maygrove Road, West Hampslead, London, NW6 2EG. islered address The reglstereLI address of the Tnjsl is The Adelphi. 1-11 John Adam Street. London, WC2N 6HT. TTU The trustees tho seNed during the year arKI al the date the annual report W8s signed are set out bel(w. Trust99 Jamie Credland Ursula Eslin A alhe Demarais Nidhi Kohli Farheen Chino start date 1 March 2018 1 March 2018 1 Janua 2019 1 Janua 2019 1 Janua 2019 Current term end date 31 March 2022 31 March 2022 31 Janua 2023 31 Janua 2023 31 Janua 2023 Chair None of the trustees received remuneration or expenses from the Trust. Tru ee5' ies The trustees are responsible for the pparation of financial statements for each finanaal yeaT, which give a true and fair view of the Chari(able Trust's incoming reSoUrS and application of resources Ouring the year and of its slate of affairs al the end of the year. In preparing those financial stslements they are required to-. select suitable accounting polides and then appty them conssstently observe the methods and principles in the Chartties SORP make Judgments and estimates that are reasonable and prudent stale whelher applicable UK Accounting Standards and statements of ommended practi have been foll0v1, SLtbject to any material departures disdosed and explained in the financial statemen15 prepare the financial statements on Ihe goin9 COnM basis unless it is inappropriate to Presume that the Charrtable Tiusl will continue in operation Page15
The E¢onornist Charltable Trust rru¥tees' annual repori Their responsibilities as Injstees include keeping proper accounting recor(Is which disclose with reasonable accuraey at any tlme financial position of the Charitable Trust and enable them to ensure that the fin8ncal slalemenls comply th the Charilies Act 2011. Tly are also responsible for safeguarding the charity's assets ano hence for taking reasonable steps for the prevention and detection of fraud and breaches of law and regLflations. Approved by the trustees and signed on their behalf by.. J. Credland Trustee Dale". 2021 Page16
Independent Examlnfrr's Report To the Trustees of The Economlst Charltable frust I report on the Fin8ncial Statements of The Economist Charitable Trust for the year ende(I 31 March 2021. Responslbllitie5 and basls of rgport As the tharity trustees of the TIu81 you are responsible for the prepaialion of the accounts in accordance with the requirements of Ihe Charities Aci 20111'lhe Ad,). I report in respect of my examination of the Trustee's accounts carried out under se¢tlon 145 of the 2011 Act and in carrying out my examination I have followed 811 the applicable Diredions glven by the Chanty Commlssion under section 145151{b) of the 2011 Act. Independent gxaminèrfs statgmgnt I have completed my examination. I confimi that no m8leri81 matters have come to my atlenlior¢ in connection with the examination giving me cause lo believe that in any material respect.. accounting records were not kept in respèct of the Trust as reoulred by sedion 130 of the Act., or (21 the aountS do not accord with those records., or {31 the accounts do not comply with the applicable requirements conceming the fomi and content of a¢counts sel out in the Charities (Accounts and Reports) Reyulations 2008 other than any requirement that the accounts give a 'lrue and fair viev/ which is not a matter considered as part of an iNlependenl examination. I have no concems and have come across no otheT matters in connectlon wlh the examination lo vthich attention should be drawn in this report in order lo enable a proper understandirig of the accounts to be reached. Anthony Epton BA, FCA, CTA. FCIE Goldwlns Chartergd A¢countants 75 Maygrove Road West Hampstead London NW6 2EG Date: 9 December 2021 Page17
The EGonomlst Charltable Trust Statement of financial activities For the year ended March 31 st 2021 2021 Total 2020 Total unftrIcted R•8tr4¢ted In¢om• from- Donations 111,950 111,950 104,000 Total Incomfr 111,950 111,950 104,000 ExpenUre on: Charitable actiMtie5 121,400 121,400 95,505 Total exptsnd4ture 121,41XI 121,400 95,505 N•t mov•m•nt in funds 19,4501 19.4501 8,495 Ro¢on¢sliatlon of funds- Total funds brought forward 9,450 955 Total funds carri forward l otthe above SuIts are derwed frorn coniinutng activrties. Ther8 were no oth8r r8cogni58d gaifts or lossès othor than those stated above. The attached rKrtÈs foFm part ol thesè linarrial statements. Pagel 8
The Economist Charitabl• Trust Balance sheet As at March 31st 2021 2tr21 2021 2020 2020 Note Currènt ass•ts: Debtors Cash at bank and in hand 90,115 12,038 102.153 62,925 6,629 69,554 11 Llabilities- Creditors.. amounts falling due within (ma year 8 102,153 60,104 Total net assets 9.450 Funds Restricted fund5 Unrèstritted funds.. General funds Totsl unrestricted funds 9,450 9,450 Total funds Th8 tinancial statements w818 approved and aulhorised for issu8 by thè Trustees on ................ and slgned on th8ir thalff by.. 2021 J P Cr•dland TTus¢o& The attached notes fomi part of the financial statements. Page19
The Economlst Charitable Trust Statement of cash flows For the year ended March 31st 2021 2021 2021 2020 2020 Ca$h flow5 from op8ratln9 activities- N81 cash used in operating adivities 10 5,409 1,042 Chang0 In cash and ¢ash 8wlvalont5 in th• year 1,042 Cash and cash equivalents at the beginning of th8 y8ar 5,587 Cash and cash equfvalents at tho end of tho y 11 12,038 6,629 Pagel 10
The Economist Charltable Trust Notes to the financial statements For thè year ended March 31st 2021 1 Accountlng polScles al Basls of preparation The financial slaièments have been prepared in 8(Lordance Thith Accounting and Reporting by Charities.. Statement ol Recommended Practice applicab lo charities preparing their accounts in accordance with Ihe Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 102- effective 1 January 20151- {Charit$ SORP FRS 1021. Th8 Charitable Trust rn8els the defi'nition of a pyblic benefit entity under FRS 102. Assets and 118bilitS are initially recognised at historical ¢ost or transaction value unless otherwi8e ststed In the relevant accounlina policy or ntste. bl Going eon¢ern The TnJsig8s consider Ihat thère ar8 material unc8rtaintl8s about the Charitable Tru5fs abilw to continue as a goirng COnrTr. The Trustees do not consider that there ar8 any sour¢e5 of 8Stimaiion uncertainty al the reporting date that have a significant risk of causing a material adju51rnent to th& carrying amounts ol assets and liabilities within Ihe next reporting peri¢xJ. cl Ineome Income is recognised when the Charitable Trust has 8ntitlemeni to the funds, any pertormanc8 Tlditions aiiached to the incorne have been mèt. r( is probable that the income will be re¢eNed and that the arnount can be measured r81i8bly. dl Interest rvtsivablo Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charitable Tfust, this is norrnally upon notification of the interest paid or payable by the ¢1 Fund aeeountin9 UnrestrlGted funds 8r8 available tts spend on activities that fLtrther any of the purposes ol charity. Designated funds are unrestricred funds of the charty whieh the Trvstees have decided al their discretion to set aside to use lor a specific purpD5e. Restricted lunds are donations which the donor has spècifi8d are to be solety used for particular a¥ea5 of tha charivs worf( or for sp8crfic projeths being undertaken by the Charitable Trust. fj Expenditure and Irre¢overabla VAT Expendilure is iecognised once there is a legal or constructive obligation to make a payment to 8 third party, il is probab18 that settlement will be r8quir8d and the &tnounl of Ihe obligation ¢arTr be measured reliably. Expenditure is classrfie(5 under the following aciivity headitbg5'. Costs of ralsing funds comprises of costs Incurréd by th8 charty in induong third parhes to make voluntary ¢onlribulions lo it, as well as the cost ol any activslios th a lundiaising purpose. Expend¥tuie on Charitable actNitièS includ85 the costs of dalivering servKes to fllrth8r the purposes of the Charrtable Trust and their associated support costs. Other expenditure reptysents thos8 items noi [lIng into any other h8adlng. Irrecoverabl8 VAT 18 ¢h8rged as a cost againsi the activity lor whid) tha endIture was incurred. g) Debtors Trade and other debtors are recogn15ed at the sethement amount due aft8r anytrade discount offered. Pr8paymerTrts are valued ai th8 amount prepaid net of any trade di$wunts due. Page | I I
The Economlst Charitable Trust Notes to the financial statements For the year ended March 31st 2021 Accountlng poli¢l•s {¢ontinued> h) Cash ai bank and In hand Cash at bank and cash in hand includes 8h and short tÈmi highly liquid investments with a short maturity ol three Months or less from the dale ot acquisitron or opening of Ihe deposii or similar account. 11 CTeditors and provisions Credilots and provisions are r8cognised where the Charitabla tsust has a Pre$t obligation resulting from a past 8vent that will probably result in the transfer of funds to a third party 8nd the amount due to Settle the c4)ligation can be measured or esrimaled r8lk2bly. Creditors and wovisions are noitnally reeognised at their settlerngnt amount after allowing forÈny tracle discounts due. Page 112
The Economist Charitabl¢ Trust Notes to the financial staternents For the year ended March 31st 2021 2 Detai18d tomparativ•s for the statement of flnan¢ial actlvllles 2020 Unr8strlctod Restrlcted 2020 Total Income from: Donations Investments 104.(MJ) 104,(MX) Total Income 104.000 10 Expendllwe on.. Chaiitable acttvitie5 95,505 95.505 Total expanditure 95.505 Nei movement in funds 8,49S Total funds brought forward Totsl funds carri•d forward 955 9ASO 955 3 In¢om•lrom donatlons 2021 Total 2020 Total UnTe*ltthd Restricted Donations from The Econornist Newspap8r Ltd 111.950 1,950 111,950 111,950 104,000 Page113
The Econorni5t Charitable Trust Notes to the financial statements For the year ended March 31 st 2021 4 Analysls of •xp8ndltur• Charltsb Activiiles Oonations made to Gov•manco Inslltutlons costs Basis of allocation 2021 Total 2020 Total Indigo Children's Fund Room to Read Yes, Futures Village Enl8rprise One Acre Fund Build on Belief Slatt Matching Others (including GAYEI Donations and Project Giants- various Direct Direct Direct Direct Dir8ct Direct Direct Direct 17,524 16,378 8.138 13,200 18,000 8,g07 19,201 20,1)07 17,524 16.378 8,138 13,200 18.000 8.907 19,201 20,052 95,50S 121,355 45 121,400 95,505 GOrnan¢t eost {451 Total 8xp•ndlturè 121,4(Kl 121,400 95,505 All expenditure was uniestrttted12020". all unrestrKtedl. Page114
THE ECONOMIST CHARITABLe TRUST Not•s to the financlal ototèmènts for th• yeargnded March 31st 2021 Purpos• of th& Projects The Trust supported Indigo Children's Fund wth a donaUon of £18.000. This tnoney will be Used to build a new school In Mae Sot, a town in north west Thailand on the border wilh Myanmar. It wll support child migrants and refugees in tre area who have crossed border from Myanmar. Room to Read is 8 charty supporting girts. education in Bangladesh. Their education pr(gramme focuseg on ensuring girls cotnplete sectsndary school wth the relevant knobthedge, life skills, ond capacity to negoliate key life decisions. The Trust's donation of £16,378 allowed the charity to support more than 77 gills an enliie sthool yeai. YesF The Trusl donated £8.138 to Yes FLrtures. a UK-based chafity that empowers young people to believe in themselves and discover their personal potential. The money will be used to recruit and train 175 volunteer coaches, who will go on to PTOVKle support lor 700 young people. e Enior rise 111age Enterprise wort(s in ruTal East Africa to serve the exlreme poor who have very limited nufferacy and lilei8cy. and who also lack access lo capital. Formal banking, and maik6ts. Theif comrnunity-based, participatory prc4r8m reflect5 a bottom-up approach to mi¢roenterpri$e development. The Trts5l donatecl £13,200 10 SUPPDrt these efforts, which would enable the charity lo scale their work in Uganda. trainin9 75 new entrepieneur5 160 women). ¢reatiNJ 3 bu$ine5s saMThJs groups, and atIng a pathway oui of poverty foi more than 500 people. ne Acre F nd The Trust supported One Auè Fund wth 3 donation of £18,000. This charity piovides farrn familles in East Africa with servi¢e5 induding financing and agricultural training. The donation 11 support the charity's project in Rwanda. setving over 2.000 farrn families during the 2021 season. Build on Build on Bellef designs and Funs socially-b88ed 5erwces in the UK for people are stiugglino wrth, or in recovery from, sutr8tan Use whether drLKJS or alcohol. The TfUSI gave a grant of £8,906 to the charity lo provide online acbvilies and COUTses given that fa¢e- to-face support was not posslbk during the Covid-19 pandemi¢. This sUPPOrted a programrne of 40 workshops running 7 days a week from the charty. Page115
The Economist Charitable Trust Notes to the financial statements For the yoar onded March 31 st 2021 Analysls of Staff ¢osts, Irustoè remuneratlon and ?xp8n58s, and the cost of k¢y man4 Dgtsonn•l The charity trustees thtre not or ieceived any other benefits from empSoJTnent the Charitable TtU8t or its subsidiary in the year 12020.. £niry neither tre they reimbursed expense5 the year12020.. £nill. No charity trustee received payment for profession81 or other semces supplied to the ¢harity12020.. £nlll. Staff numbor8 The Charitsble Trust employed no empl¢)yees durfng the year. Taxation The Charitable Tst is exempt trom corporatron tax 85 all its income Is ¢haritable and i applled for tharilable purposes. Dèbtors 2021 2020 Accrued income 90,115 90,115 62,925 62,925 CradliOts- amounts fallln9 du8 wlthln yèar 2021 2020 Accruals 102.153 60.104 60,104 Movements In funds Al thg Incomlng Outgoing start of r050urces resources the year & galns & los$•s At the gnd of th• yr Unrostrlcted funds- General funds Total un*estrficted funds 9.450 9,450 111,950 111.950 121.4001 121,4001 Total fund$ 10 R8toneiliaison of net Income I lexpanditurnl to nel cash flow from operating activitie$ 2021 2020 Net incomè I loxndItreI for tho rèportlng poriod las per the gtatèmènt of financlal activities) 19,4501 8.495 Decreasel{incaseI in debtors IDerxea5elllnEa$e in creditors N•t ¢ash us•d In operatlng actlvltlgs 127,1901 42,049 5,409 24,312 31,765 1,042 Page 116
The Economist Charltable Trust Nolgs to the financlal statements Forthe ear ended March 31st 2021 11 Anatysls of cash and ¢a6h ¢qulval•nts Al 1 Aprfl 2020 Cash OW5 At 31 March 2021 Cash at bank and in ha 6,629 5,409 12,038 Total cash and cash oquivalonts 6,629 5,409 12,038 12 Related party tran8OCtlons The Charitable Trusl'recewed a donation Irorn The E¢onomist Newspaper Limited in the year of £111.950 12020.. £104,000). The Economist Newspaper Limited also pays some of the costs on behalf of the Charitable Trust. At the end of the finanual year the Charitable Trust has an amount due from The Economist Newspaper Litnited of £90.115 12020.. £fj2,Q251 relating lo large donats'ons lo be paid Wfth this excèption there tre no other relateil party trans8th"ons. Pagel 17