Institute of Philosophy The Royal Institute of Philosophy Trustees, Report 2023 - 2024
CONTENTS Page Charitable Company Information Real Philosophy, For Everyone Our purpose Our programmes Our audiences Publishing Our progress Financial Report & Review Financial Statements 10 10 17
Charitable Company Information President Baroness Onora O'Neill (March 2023) Jo Wolff (Appointed April 2023) Professor Lucy O'Brien C'hair of the Council Professor Ben Colburn Members of the Executii'e Committee. Professor David Edmonds who are also the trustees under chariti- lam. and Professor Fiona Ell is directors under compani- law Professor John Haldane Professor Susan James Appointed 2023 Professor Hallvard Lillehammer Appointed 2023 Professor Beth Lord Professor Lucy O'Brien Dr Lea Salje Professor Constantine Sandis Professor Sarah Sawyer Professor James Wilson Dr. Rachael Wiseman Resigned 2024 Managing Director & SecretarJ- Melanie Nightingale Joint Editors of Philosophi- Professor Maria Alvarez Professor Bill Brewer Academic Director. Professor Edward Harcourt Editor of Think Dr. Stephen Law Finance Director Rebecca Davis, CPFA Solicitors Blake Morgan LLP Seacourt Tower, West Way, Oxford OX2 OFB Independent Examiners KM Chartered Accountants. The Wharf, Manchester Road, Burnley BB111JG
Bankers HSBC, 16 King Street, London WC2E 8JF Registered C)ffice 7 Bell Yard, London, WC2A 2JR Telephone: 020 7664 4851 Registered Charit). Number 313834 Registered Compan). Number 205110 (A Company Limited by Guarantee)
Income 2023-2024
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7% [5%] a Donations
39%
| Charitable
Activities
i | Investment Income
49%
] Other Income
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Our Programmes Our programmes are designed to support, and offer philosophical material and activities, to those already engaged in philosophy, or to those discovering philosophy for the first time. We are pleased to report that in this financial year over 8,300 people attended an event or received a grant funded programme delivered by the Royal Institute of Philosophy. New Audiences PhilosophyAudiences PresidentialAiklres5 Book Prize schools1en1$ . LocalP8rtnerAudTence$ . Bursaries + Studentships PhD Conference Prisons Sthlthconfuence Philosoplryconfere London Lecture Season Ess8yPrizeSubmissionsThink . City Lectures Ess8y Prize Submissions Phi1080phy Bursar)- & Studentship programme. Followingan illness thalsetrreljy impactedmy sludies Ifoundmj'selfal theendofmj, thirdj'ear andmj'previousffundinghadended. 1] Jf&iouldnot haty beengTantedlheRoyalln51iluteoflJhilosophy fundinglvouldhavehadto quil my PhD to make endsmeet. IAO - Glasgow University With the support of the Jacobsen Foundation. this annual programme was able to support 16 PhD students from across 11 different UK academic institutions, studying across a broad spectrum of philosophical enquiry in 2023-2024. Three grants, totalling just over £5,000 were awarded to support graduate student conferences This annual programme enables graduate students to gain experience in organising conferences, in giving talks, and getting feedback from peers, and to hearing work from both other students and established philosophers from across the world.
For many attendees, this kind of experience is either rare or nonexistent in their lives, and the opportunity to engage with important questions, and explore ideas and arguments with others, is empowering and energising Local Partner Feedback 2023
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Schools Programme In addition to all our public philosophy lectures and events, we offer a dedicated schools programme delivering school conferences and schools philosophy programmes. Created in 1987 and supported by funding from the Jacobsen Foundation, this year 68 schools from across the UK successfully applied to receive a Royal Institute-funded 10-week philosophy programme delivered. Over 1,600 pupils receive a schools philosophy programme this year. Over 80Wo of these schools are currently unable to offer A level philosophy in their schools and these programmes, include many pupils from more deprived areas of the UK enjoying their first introduction to philosophy. Over half of these schools now report a desire to introduce philosophy A level into their school curriculum. 7hankYoUfortiingus Ihir opportunity lo learn somelhingwe vouldnevergel a chancelol Llieen" Louis, Programme Sludenl -Ilhink Ihal Ihesession wasprobobly Ihe most interestingand useful IhingYLye twdoneon site at school. Erlremely useful infomiation thankyour Exlremeljy welldelivered, thoughiprotTroking sessions.- School Teacheron Ihe 71UI)l)htlosophy in Schoolsprogramme This grant programme forms part of a wider support structure for students, including= a masterclass series of 26 videos specifically designed to support the A Level curriculum with over 82,000 views A Level guides that directly support the individual topics encountered on the course syllabus A working group including Royal Institute Council members working with A Level exam boards to optimize the curricular content and interest Partnerships with a number of parallel organisations working to deliver philosophy to students and training to philosophy teachers. Our highly accessible journal Thinkbecame an integral part of our schools programme this year, acting as an introduction to philosophy and offering students articles and essays covering wide ranging and stimulating topics. Research designed and funded to review current methods of delivery by the Royal Institute was undertaken. Research to review current methods of delivery. Our researcher worked with teachers and tutors to determine where improvements could be made, explored how to maximise the impacts and outcomes of our schools programmes, and when and how to share best practice. As a result, changes have been instigated with revised training programmes for our tutors, offering a new framework for best practice that we believe will offer enhanced programmes to our school students in the future. I liked the Jink betH'een philosophical concepts and topics from politics and sociolo&)'. Tth"s made a difference as it helped me see the connections betFi een the material l am learning for mJ:A el and current social and economic concern& The Conferen Tl'as T:eri" good in makingpI0SophTr- feel releT-ant to eT"eri"dai- life.. .4 t£i-el Student
I’ve learned a lot about me and some choices I’ve made in life and how things can have a spiral effect “I’ve learned a lot about me and some choices I’ve made in life and how things can have a spiral on life and lead to the next. It helped me look at myself and how I’ve done things in my past. Its let me effect on life and lead to the next. It helped me look at myself and how I’ve done things in my see others way of thinking. Courses like this can do more to change and help someone find themselves past. Its let me see others way of thinking. Courses like this can do more to change and help more than a lot of other course that I’ve done. A lot of life lessons learned. Prisoner HMP Pentonville someone find themselves more than a lot of other course that I’ve done. A lot of life lessons
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Volunteers In 2023-24 the Royal Institute began a proactive programme to offer an array of volunteering opportunities to academics already involved in philosophy and to those new to the subject. -I think ii'hat the Roi'al Institute of Philosophi" does is fantastic, fostering -aluable spaces for curious Jninds like mine ii-ho appreciate knoii'ledge and learning for its oii"n ,sake. I feel incredibli- fortundte for the time I'i'e spent so far olunteering" Sean H As a resulL over 50 volunteers from across the world are now actively involved in stewarding events, supporting research, developing projects and delivering results, all of which have substantially accelerated the output from the very small staff team at the Royal Institute and given the Royal Institute access to a group of highly experienced and professional individuals who freely give their time and skills to support the delivery of philosophy to their wider community and we extend our sincere thanks to each of them. Annual Survei, Results This year, for the first time, we surveyed our stakeholders. The results of this important survey will influence our programme design and delivery and will help ensure that our content and opportunities appeal to our audiences. The Royal Institute is committed to listening to our audiences, and to offering them high quality philosophy that is relevant, stimulating, and that enables them to expand their interest and knowledge in the subject, wherever they start. How do our audiences describe themsels'es? no formal education in philosophy under 3S years old b&88d outsideofth8 UK h8vè tr)een part of our work for over 11 years io
Overwhelmingly our community reported that the Royal Institute of Philosophy provides information and understanding that enables them to apply philosophical concepts in real life situations. opportunities to engage with thought-provoking ideas that challenge thinking clear explanations of philosophical ideas a welcoming environment for sharing ideas opportunities to bond with like-minded people to explore philosophical ideas together Publishing th Now in its 99 year, the highly respected journal Philosophi- continues to publish excellent articles. Published in four issues per year. the journal appeals to both university and individual subscribers across the world Professors Maria Alvarez and Bill Brewer, co-editors of the journal, oversee the publication of peer reviewed articles, reviews, the Philosophy Annual Essay prize, and articles based on our City Lectures. Submissions come from early career researchers to well established academics. They are selected, and worked on through the editorial process, ensuring the journal remains an important one for an extensive international audience. Our journal Think continues to offer philosophy for all. For the first time, we launched the Think Essay Prize, open to 16-18 year old students. Our panel of judges were overwhelmed by the quality of the hundreds of submissions received. They were delighted to award the prize to college student, Claudia Wong for her submission "Is it morally wrong to eat meat?" Na)-ef Al-Rodhan International Book Prize in Transdisciplinar)- Philosoph)- This annual &20,000 Prize was established in 2023as the first of its kind in the UK. The prize rewards work in trans-disciplinary philosophy= work that transcends academic boundaries, furthering our understanding of the key challenges facing the world today. The prize is now in its second year. With a panel of judges taken from across the humanities and sciences, this prize is becoming firmly established as a unique opportunity to bring together books that demonstrate rigorous original and quality transdisciplinary research are accessible and engaging to read are original, innovative, and impactful intend to advance and contribute to the understanding of human behaviours. li
Our Progress Activities". 2023124 has been another year of growth for the Royal Institute, with new publications, programmes, partners, activities and audiences. We continue our academic mission to produce publications (Philosophy and Think) and to curate events (the London Lectures, the City Lectures, the Symposium) that are both philosophically excellent and accessible. These publications and events enable authors and researchers to bring their work to the wider academic and public audiences. We continue our further outreach work through our partners programme, and our teaching in prisons and schools. This year we have secured high levels of engagement from a variety of audiences. We have been working more closely with the Institute of Philosophy and have moved a number of our events to London University's Senate House. These are proving to be popular. People.. Professor Jo Wolff FBA has been very actively engaged in his first year as a new President. He gave his brilliant Presidential Address on the theme of 'Ceremony and Ritual,. The lecture was filmed and is on YouTube. We welcomed Professors Hallvard Lillehammer, and Sue James on to the Executive Committee this time last year. Melanie Nightingale has continued in the role of Managing Director. She is assisted by Anisa Almjbarae. Rebecca Davis continues as our new Finance Director, assisted by Mark Heaton and Helen Watson. Professor Edward Harcourt is into his third year as Academic Director. Edward has agreed to serve for a second term, to secure continuity across the Centenary. Dr Stephen Law, and Professors Maria Alverez and Bill Brewer continue in Editorial roles on our journals. Hannah Laurens has stepped down as Editorial Assistant. Beatrice Giovanardi left the role as digital marketing off icer and has been replaced by Sebastian Leyton Blanco. We also have had over 50 volunteers actively involved in our work,. we have been able to offer work experience for school students alongside relevant projects to expand and develop the skills and abilities of philosophy PhD students. Money.. Both careful spending, and investment are essential to us creating stability for the future. Our current priority is to make sure we have a clear strategy to protect the core activities of TRI P and our journals into the long term. We have made a number of cost cutting changes to the delivery of our programmes alongside increasing their reach. We have agreed a budget that spends no more than our projected income. We will continue to avoid new unfunded proposals in the coming year. We have moved a significant proportion of our reserve funds, that have been held in cash, into CCLA managed investment funds, in an effort to secure long term growth. We are planning an endowment suff icient to secure the continuity of our journals should CUP income drop in the long term. We have invested in our digital communications, both in software and person hours, with the aim of increasing the awareness of, and access to our activities, our valuable archive, our 12
study materials, to our annual grant programme. We aim to use our increased digital engagement to improve take up of membership. The Centenary year of 2025 is fast approaching, and we are building a fundraising launch around our Centenary activities. We need to make the most of the opportunity to ensure a long term f ina ncial resilience that will see the Royal Institute into its second century. This will involve launching a new membership scheme, special interest groups, and attracting donations, and support. We are committed to sustaining programmes that ensure that high quality philosophical work is made accessible and relevant to our audiences over the long term. We will continue to develop a funding model that can underpin that work. Structure and Governance The 50-70 Council members are The Royal Institute's members (in effect custodians of The Royal Institute's charitable object) and a smaller body of10-15 members appointed by the Council serve as trustees within an Executive Committee, executing policy as determined by Council. The governing document is the Memorandum and Articles. All new trustees are briefed and receive copies of the Institute's key policies and procedures, guidance on the structure and governance of the Royal Institute and the Charity Commissions key documents, including 'The Essential Trustee, and the 'how to, guides. Each trustee completes a conflict of interest questionnaire and eligibility declaration in advance of taking on their role. The Executive Committee is supported in its work by a Finance sub-committee that meets two times a year ahead of the relevant Executive Committee meetings to scrutinise all aspects of the financial activity associated with the Royal Institute and during this year commissioned the Finance Director to undertake a robust examination of the Institutes investment and risk policy management. Resulting recommendations from the Finance sub-committee to the Executive Committee are expected to recommend robust policies that maximise return on all the Royal Institute's investment decisions. A Nominations Committee makes recommendations to Council for new Council and Executive Committee members all of whom are elected for an initial term of five years. The Nominations Committee is comprised of members of the Executive Committee and a member of Council. The day-to-day management of The Royal Institute has been delegated by Council, to those holding the roles of Editors, Academic Director, Managing Director & Secretary and Finance Director. The off icers operate within an annual budget approved by the Executive Committee. Their employment and remuneration is determined by the Executive Committee. FAnancAal Report The Statement of Financial Activities of The Royal Institute is set outon page13. The principal funding sources are income from the sale of the journal"Philosophy via Cambridge University Press, 13
which is received annually, investment income and restricted donations. The publication accounts run on a calendar year January to December. The Institute's annual accounts, therefore, always include the income for the previous calendar year plus an estimate for the period January- July of the current year less estimate made the previous year. During the year, income of £576,113 (2023: £494,996) was recognised and total resources of £554,728 (2023: £515,155) were expended, of which £28,729 {2023: £33,260) was on governance costs. There was also an unrealised loss from investment assets of £410 (2023: £19,302) and no realised loss {2023.. £Nil) giving a net increase in funds for the year of £20,975 (2023-. £39,461 reduction). The total funds of The Royal Institute at 31st July 2024 amounted to £1,633,417 (2023.. £1,612,442), being held in a Designated Fund of £1,249,178 {the'Core Activities Reserve Fund,, primarily held in investments and cash), the General Fund of £362,187 (primarily held in cash and working capital) and a Restricted Fund of £22,052 Notes 17 and 18 show the detail of these holdings. Policy on Reserves The Royal Institute retains funds from year to year- these are called reserves. The majority of the Institute's funding is released once a year in the second half of the financial year, and the majority of its expenditure commitments are made at the start of the financial year. Accordingly, Council considers that a designated reserve fund is necessary in orderto protect a core activities programme, which includes production of its journals, bursaries, grants to local partners, and the conference and lecture series in real terms for a period of up to three years, in case of a significant fluctuation in income. The Executive Committee reviewed the purpose and size of the Core Activities Fund at its June 2021 meeting. In the succeeding two financial years, the value of the Core Activities Fund has been maintained at its real terms value by transfers from the General Fund (a) to cover activity expenditure and (b) to make the CAF up to its real terms value. The General Fund value of £362,187 is equivalent to over 12 months of unrestricted expenditure. Investment The Institute's investments form part of the Core Activities Fund and Council has previously set out the permitted type and weighting of investments in order to achieve a balance of low risk and return. The General Fund is held in working capital (current assets less current liabilities). In the new financial year, the Institute is conducting a review of its investment strategy with the aim that its longer-term investments will maintain their real terms value year on year, and that the yield on cash held at bank will be maximised, subject to maintaining the low risk stance. The liability of each of the members of the Royal Institute in the event of a winding-up is limited to £1. This liability applies to all members whilst they are members and for one year after they cease to be members. At 31" July 2024, there were 55 members of the Royal Institute. 14
Statement of Trustees, Responsibilities The Charity's trustees, who are also the directors of The Royal Institute of Philosophy for the purposes of company law, are responsiblefor preparing the trustees, annual report and the financial statements in accordance with applicable lawand United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Company law requires the Charity trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources. including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to Select suitable accounting policies and apply them consistently Observe the methods and principles in the Charities SORP (Statement of Recommended Practice) Make judgements and 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 operation The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Small companies provision statement This report has been prepared in accordance with the small companies regime under the Companies Act 2006 Approved by the Executive Committee on 5 December 2024 And signed on their behalf by= Ih Professor Lucy O'Brien Chair of the Executive Committee 15
Independent Examiners Report to the Trustees of the Roi"al Institute of Philosophj I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 July 2023 which are set out on pages 19 to 33. Responsibilities and basis of report As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act,). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011 {'the 2011 Act,). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act Independent examiner's statement Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of the Association of Charity Independent Examiners, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect.. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records,. or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination," or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [8pplicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. 16
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Signed.. Mark Heaton FCCA FCIE DChA KM, Chartered Accountants 1st Floor, Block C, The Wharf, Manchester Rd Burnley, BB111JG th 5 December 2024 17
The Royal Institute of Philosophy Statement of Financial Activities for the Year Ended 31 Jul)" 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) The funds breakdown for 2023 is shown in note 17. The notes on page 23 to 33 form an integral part of these financial statements. 18
The Royal Institute of Philosophy Statement of Financial Activities for the Year Ended 31 July 2024 (I ncluding I ncome and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Restricted funds Total 2024 Unrestricted funds Restricted funds Total 2023 Note Income from: Donations 1,005 281,792 40,758 29,219 223,339 224,344 281,792 40,758 29,219 188,261 188,261 260,462 27,024 19,249 Charitable activities 260,462 27,024 19,249 Investment income Other income Total income 352,774 223,339 576,113 306,735 188,261 494,996 Expenditure on= Charitable activities 1343,4321 1211,2961 1554,7281 1336,4421 1178,7131 1515,1551 Total expenditure 1343,4321 1211,2961 1554,7281 1336.4421 1178,7131 1515,1551 Net income/(expenditurel Transfers between funds 9,342 1461) 12,043 461 21,385 129,707) 9,548 120,159) Other recognised gains and losses Other gains/losses 1410) 1410) 119,3021 119,3021 Net movement in funds 8,471 12,504 20,975 149,009) 9,548 139,4611 Reconciliation of funds Total funds brought forward 1,602,894 9,548 1,612,442 1,651,903 1,651,903 Total f unds carried forward 17 1,611,365 22,052 1,633,417 1,602,894 9,548 1,612,442 All of the charity's activities derive f rom conti nuing operations during the above two periods. The notes on page 23 to 33 form an integr31 part of these f inanci81 st8tements 19
The Ro)-al Institute of Philosoph)" (Registration number: 20illO) Balance Sheet as at 31 Jul)- 2024 2024 2023 Note Fixed assets Intangible assets Investments 12 26,383 33,921 14 117,867 292,229 144,250 326,150 Current assets Debtors 15 493,118 159,129 Cash at bank and in hand 1,041,700 1,195,752 1,534,818 1,354,881 Creditors= Amounts falling due within one year 16 (45,651) 168,589) Net current assets 1,489,167 1,286,292 Net assets 1,633,417 1,612,442 Funds of the charity= Restricted income funds Restricted f unds 22,052 9,548 Unrestricted income funds Unrestricted f unds 1,611,365 1,602,894 Total funds 17 1,633,417 1,612,442 For the financial year ending 31 July 2024, the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors, responsibilities.. The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476." and The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts_ The financial statements on pages 2 to 15 were approved by the trustees, and authorised for issue on 12 December 2024 and signed on their behalf by Professor L O'Brien, The notes on page 23 to 33 form an integral part of these financial statements. Trustee 20
The Ro)-al Institute of Philosoph)" Statement of Cash Flows for the Year Ended 31 JulJ- 2024 2024 2023 Note Cash flows from operating activities Net cash incomellexpenditure) 20,975 139,4611 Adjustments to cash flows from nO¢3$h items AmortlS2tion 7,538 {40,7581 Investment income 127,024) 19,302 {47,183) Revaluation of investments 410 {11,8351 Working capital adjustments Ilncreaselldecrease in debtors Decrease in creditors 15 (333,989) (22,938) 23,790 1210,3481 16 Roundings Net cash flows from operating activities 1368,762) 1233,7421 Cash flows from investing activities Interest receivable and similar income 40,758 27,024 {15,1301 3,769 Purch2se of intangible f ixed assets Sale of intangible fixed assets Sale of investments 12 173,952 Net cash flows f rom investing activities 214,710 15,663 Net decrease in cash and cash equivalents {154, 0521 1218,0791 Cash and cash equivalents at 1 August 1,195,752 1,413,831 Cash and cash equivalents at 31 July 1,041,700 1,195,752 All of the cash flows are derived from continuing operations during the above two periods. The notes on page 23 to 33 form an integral part of these financial statements. 21
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 I Chariti" status The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. The address of its registered off ice is.. 7 Bell Yard London WC2 2JR These financial statements were authorised for issue by the trustees on 12 December 2024. 2 Accounting policies Summary of significant accounting policies and key accounting estimates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Statement of compliance The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Basis of preparation The Royal Institute of Philosophy 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 notes. Going concern The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. 22
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 Income Income is recognised when the charity has entitlement to the funds, any performance conditions attached have or can be met and it is probable that the income will be received, and the amount can be measured reliably. Incomes are recognised as being attributable to an accounting period with a corresponding accrual if the income relates to the current period e.g. the CUP accounting period is a calendar year so the income for the period January to July in the current year is estimated as seven twelfths of the yearly amount. An assessment is made by management regarding the estimated income for the last seven months of the Rl P financial year based on the CUP actual income from their previous calendar year results and a forecast (if available) of their following calendar year, pro rata (using 7112) to establish a trend of income and hence accrual. Members, subscriptions (net of transaction costs) are recognised as being for the twelve months following the date of receipt and accordingly a deferred income is recognised, income on sale of "Philosophy and "Think" are recognised when invoiced, funds from the Jacobsen Trustees are recognised when due in respect of an accounting period, and interest receivable is accounted for on a receivable basis. Dividend income is recognised in the period when the investment goes "ex-dividend Other incomes are treated as income of the period in which they are receivable. Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required, and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings, they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Othei support costs are allocated based on the spread of staff costs. Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including an independent examination, strategic management and trustees meetings and reimbursed expenses. Taxation The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or 23
capital gains received within categories covered by Chapter 3 Part 11 of the 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. Intangible assets Intangible assets are stated in the Balance Sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives. The annual rate used for this purpose is 2590. Tangible fixed assets Tangible fixed assets are stated in the Balance Sheet at cost less accumulated depreciation and impairment. They are depreciated on a straight line basis over their estimated useful lives. The annual rate used for this purpose is 25%. 24
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 Fixed asset investments Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. Trade debtors Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. Fund structure Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the charity. Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. Pensions and other post retirement obligations The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. 25
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 3 Income from donations Unrestricted funds General Restricted funds Total 2024 Total 2023 Donations 1,005 1,005 223,339 223,339 224,344 224,344 188,261 188,261 4 Income from charitable activities Unrestricted funds General Total 2024 Total 2023 Income on sale of"Philosophy" Income on sale of"Think" 247,946 247,946 232,880 33,846 33,846 26,027 Royalties income 1,555 260,462 281.792 281,792 "Philosophy and "Think" are published by Cambridge University Press (CUPI as a joint arrangement whereby they account for gross subscription and norFsubscription revenues, printing, distribution, commissions, overheads and other costs_ CUP then remit the net result to The Royal Institute following the issu2nce of an invoice. As such, the income on sale of Philosophy" and Think" stated above is the net amount. 5 Investment income Unrestricted funds Designated Total 2024 Total 2023 Dividend income Interest income 25,834 25,834 8,058 18,966 27,024 14,924 40,758 14,924 40,758 6 Other income Unrestricted funds General Total 2024 Total 2023 hAembers' subscriptions Other income 18,243 18,243 12,509 10,976 29,219 10,976 29,219 6,740 19,249 26
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 7 Expenditure on charitable activities Unrestricted funds Designated General Restricted funds Total 2024 Total 2023 Note Charitable activities 54,650 171,117 211,296 437,063 377,613 Governance costs 28,729 28,729 33,260 Staff costs 88,936 88,936 104,282 54,650 288,782 211,296 554,728 515,155 In 2ddition to the expenditure analysed above, there are also governance costs of £28,729 {2023 £33,260) which relate directly to charitable activities. See note 8 for further details. 8 Analysis of governance and support costs Governance costs Unrestricted funds General Total 2024 Total 2023 Note Staff costs Examination of the financial 25,959 25,959 30,067 statements 10 1,750 1,020 28,729 1,750 1,020 28,729 2,000 1,193 33,260 Other governance costs 27
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 9 Staff costs The aggregate payroll costs were as follows: 2024 2023 Staff costs during the year were= Wages and salaries Social security costs Pension costs 96,201 2,851 111,403 5,392 15,843 114,895 17,554 134,349 The monthly average number of persons {including senior management I leadership team) employed by the charity during the year expressed as full time equivalents was as follows.. 2024 2023 Ful l-time staff (1) Part-time staff (4) No employee received emoluments of more than £60,000 during the year. 10 Independent examinevs remuneration 2024 2023 Examination of the financial statements 1,750 2,000 11 Taxation The charity is a registered charity and is therefore exempt from taxation. 28
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 12 Intangible fixed assets Website Total Cost At 1 August 2023 37,690 37,690 At 31 July 2024 37,690 37,690 Amortisation At 1 August 2023 Charge for the year 3,769 7,538 3,769 7,538 At 31 July 2024 11,307 11,307 Net book value At 31 July 2024 26,383 26,383 At 31 July 2023 33,921 33,921 13 Tangible fixed assets Furniture and equipment Total Cost At 1 August 2023 27,009 27,009 At 31 July 2024 27,009 27,009 Depreciation At 1 August 2023 27,009 27,009 At 31 July 2024 27,009 27,009 Net book value At 31 July 2024 At 31 July 2023 29
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 14 Fixed asset investments 2024 2023 Other investments 117,867 292,229 Other investments Listed investments Total Cost or Valuation At 1 August 2023 Revaluation 292,229 292,229 (410) (410) (173,952) (173,952) Disposals At 31 July 2024 117,867 117,867 Net book value At 31 July 2024 117,867 117,867 At 31 July 2023 292,229 292,229 15 Debtors 2024 2023 Trade debtors 320,765 172,353 493,118 461 Prepayments 158,668 159,129 16 Creditors: amounts falling due within one year 2024 2023 Taxation and social security Other creditors 36,986 47,833 4,466 16,290 68,589 Accruals 8,665 45,651 30
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 17 Funds Other recognised gains/(loss Balance at es) 31 July 2024 Balance at 1 August Incoming Resources 2023 resources expended Transfers Unrestricted funds General Funds 380,606 312,016 (288,782) (41,653) 1,222,288 40,758 (54,650) 41,192 362,187 Designated Funds (410) 1,249,178 Total unrestricted funds 1,602,894 352,774 (343,432) (461) (410) 1,611,365 Restricted funds Jacobsen Scheme 9,548 195,300 (182,796) 28,039 (28,500) 9,548 223,339 (211,296) 22,052 NAR book prize 461 461 22,052 Total funds 1,612,442 576,113 (554,728) (410) Other recognised gains/(loss Balance at es) 31 July 2023 1,633,417 Balance at 1 August Incoming Resources 2022 resources expended Transfers Unrestricted funds General Funds 507,440 1,144,463 279,711 (114,888) {291,656) 27,024 (221,554) 291,656 380,607 1,222,287 Designated Funds (19,302) Total unrestricted funds 1,651,903 306,735 (336,442) (19,302) 1,602,894 Restricted funds Jacobsen Scheme 188,261 {178,713) 9,548 Total funds 1,651,903 494,996 (515,155) (19,302) 1,612,442 31
The Ro)-al Institute of Philosoph)" Notes to the Financial Statements for the Year Ended 31 JulJ- 2024 18 Analysis of net assets between funds Total funds at 31 July 2024 Unrestricted funds General Designated Restricted funds I ntangible f ixed assets Fixed asset investments 26,383 26,383 117,867 1,534,818 (45,651) 117,867 1,131,311 Current assets 381,455 (45,651) 22,052 Current liabilities Total net assets 362,187 1,249,178 22,052 1,633,417 Total funds at 31 July 2023 Unrestricted funds General Designated Restricted funds I ntangible f ixed assets Fixed asset investments 33,921 33,921 292,229 1,354,881 (68,589) 292,229 936,650 (6,591) Current assets 407,383 (60,698) 10,848 {1,300) Current liabilities Total net assets 380,606 1,222,288 9,548 1,612,442 19 Related party transactions No trustees received any reimbursement of expenses during the year (2023.. £286 was reimbursed to four trustees for travel). There were no related party transactions in the year. 32