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2026-03-31-accounts

Charity number: 327461 (England and Wales) Company registration number: 02132178

THE KARUNA TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

THE KARUNA TRUST

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2
Trustees' responsibilities statement 22
Independent auditors' report on the financial statements 23 - 26
Statement of Financial Activities 27
Balance Sheet 28
Statement of Cash Flows 29
Notes to the financial statements 30 - 48

THE KARUNA TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2026

Trustees Sundeep Grewal
Carolyn Milosevic MBE
Peter White (Chair)
Dishir Thakkar (appointed 1 April 2026)
Su Yen Tan (resigned 31 July 2025)
Charity registered 327461
number
Company number 02132178
Principal office 72 Holloway Road
London
N7 8JG
Secretary Darren Barrenger
Chief executive officer Louise Thomas
Independent auditors Bishop Fleming Audit Limited
Chartered Accountants
10 North Place
Cheltenham
GL50 4DW
Bankers Clydesdale Bank Plc
Studio B
146-158 Kensington High Street
London
W8 7RL
Solicitors Bates Wells & Braithwaite London LLP
10 Queen Street Place
London
EC4R 1BE

Page 1

THE KARUNA TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2026

The Trustees present their report and accounts for the year ended 31 March 2026.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s Deed of Trust, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102)” as amended for accounting periods beginning after 1 January 2016.

Objectives and Activities

Karuna works alongside the most excluded people in South Asia, overcoming poverty and discrimination with locally led education, gender equality and sustainable livelihood projects.

We support locally-led Civil Society Organisations (CSOs) to become more self-reliant and sustainable, fostering a cycle of empowerment and transformation within communities by focusing on both financial support and capacity building. This multi-faceted approach ensures a broad impact by addressing immediate needs while building long-term resilience and capability among partner organisations and communities.

International Development and Grant-Making

We make grants to a range of locally led partner CSOs in India, Nepal and Bangladesh. By providing people with access to tools, support and skills, they become champions of their communities and support others. Working with locally led organisations within the affected communities, we support self-reliance and sustainability. We facilitate the formation of networks between these organisations, enabling them to extend their impact to even more individuals and extend the cycle of transformation beyond their communities.

Over the past year, we have continued our strategy of broadening the geographical focus of our work by reaching out to more communities in Nepal and Bangladesh.

Building a Strong, Vibrant Community-led Voluntary Sector

Grassroots CSOs, particularly those led by historically marginalised communities, face significant barriers to sustaining and expanding their work. The effects of the pandemic, tighter government regulations for Indian non-profits and cuts to overseas development funding have left many struggling to continue, while larger funders are often unable to support them.

Alongside project funding, we help our partners and other grassroots CSOs become more effective and sustainable. We combine the expertise of local trainers, capacity builders and advisers with our own knowledge and networks, to provide the resources and support they need. Much of this work focuses on strengthening project management, strategic planning, financial management, monitoring and evaluation. We also provide mentoring and training in governance, leadership, safeguarding for children and vulnerable adults and fundraising from local and international sources. Through this approach, Karuna is helping to build a strong, vibrant, community-led voluntary sector that can empower marginalised communities and drive lasting local change.

Since 2007, Karuna has invested a small part of its unrestricted funds into the development of sister organisations in Germany and, more recently, in the US, opening access to new audiences and funding sources for our work with marginalised communities.

The Karuna Trust contributes to salary and running costs of these sister Karuna organisations, as well as providing technical support in Programmes, Communications, Legal and Fundraising. For this reason, we present figures that show the consolidated income and expenditure for all three organisations together within the Trustees’ Report, as this presents a picture of the actual income and costs of our fundraising and programmes work, taken as a whole.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Awareness-Raising

Through our website, annual review, social media channels, public talks, networks and other events, we aim to raise awareness of ways that poverty, inequality and discrimination in South Asia can be overcome.

Fundraising

Fundraising is conducted through several different streams: door-to-door campaigns, phone campaigns, digital platforms, one-off donations and grant applications to charitable trusts and institutional donors. In recent years, Karuna Germany has contributed significantly due to major grants from BMZ (the German Government’s agency for international development) and the EU.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what fundraising activities the charity should undertake.

Overall Impact of Karuna’s Work in 2025–26

Karuna's work is built on a simple conviction: lasting change takes more than delivering services or — transferring skills. It also depends on people believing a different life is within reach and on creating the conditions and opportunities that let them act on that belief in their daily lives.

Karuna understands change as something that happens at several levels at once, with each level depending on and reinforcing the others. While individuals need confidence, knowledge and agency to change their — lives, they also need an enabling environment quality schools, decent economic opportunity, supportive — institutions, strong local governance and effective legal protection to turn that potential into reality. A strong civil society, driven by effective, locally led organisations, can lay much of this foundation. By demonstrating what is achievable locally, they become catalysts for wider change.

– During the year 2025 26, Karuna supported its 22 CSO partners across India, Nepal and Bangladesh contributing to improved education, gender equality and livelihood resilience for some of South Asia’s most marginalised communities.

Karuna’s long-term, community-led approach brought transformative change to the lives of 146,048 direct and 362,785 indirect beneficiaries, delivering positive benefits to a wider community of more than 2.2 million people (this last figure includes the work of partner organisations not directly grant funded but supported through capacity building activities).

Across the region, projects delivered meaningful progress through three key drivers:

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Quantitative Indicators

These cumulative outcomes indicate a maturing of Karuna’s programmes. Earlier small-scale pilot projects have now been scaled into multi-state and multi-country initiatives, such as Pragya Community Climate Network, Maitri Network and Grassroots Resilience Initiative, extending our outreach and creating critical mass to influence wider state systems.

Comparing our reach to previous years

2023-24 2024-25 2025-26
Direct Beneficiaries
Reached		 151,000 115,000 146,000
Indirect Beneficiaries
Reached		 813,000 1,200,000 2,200,000

Qualitative Shifts: Changing Attitudes and Behaviours and Building Civil Society

— Across our projects, there is consistent evidence of behavioural and attitudinal shifts from passivity to participation, silence to advocacy and dependency to agency. With our support, communities are re-defining gender norms, educational priorities and their relationship with governance institutions. Across many projects, women are emerging as local leaders—from grassroots “barefoot lawyers” in India to women farmers driving organic entrepreneurship in Nepal.

Karuna’s emphasis on organisational capacity building has yielded significant secondary impacts. Through our support of the Grassroots Resilience Institute, 101 CSOs, with a combined outreach of 1.85 million people, have benefited from organisational capacity building support. 87% of supported Indian CSOs have introduced institutional HR, safeguarding and financial systems, while 71% improved fundraising capacity, mobilising over £1.4 million in additional resources from international and in-country sources.

This organisation-level strengthening ensures sustainability beyond direct project outcomes, building Karuna’s partner network into a robust and sustainable force for social justice and resilience.

Progress Towards our Three-Year Strategy in 2025/26 (Year 3)

In Year 3 of our three-year strategy (2025/26), we focused our grant funding on four priorities aimed at delivering lasting change for the most marginalised communities.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

We developed the strategy in close consultation with partners and in-country advisors, who helped us identify — the most urgent needs of historically excluded communities particularly in the ongoing recovery period following the Covid-19 pandemic.

Our four priorities were to:

Indicator of
progress		 Target
(Per
Year)		 Actual
(2024)		 Actual
(2025)		 Actual
(2026)		 Target (3
year
combined)		 Actual (3
year
combined)
1. Number of girls
supported to stay in
school and avoid
earlymarriage
14,000		 17,379 16,000 11,458 42,000 44,837
2. Number of
women and girls
protected from
violence and
trafficking		 34,000 31,000 35,000 61,344 102,000 127,344
3. Number of
migrants and people
from marginalised
communities
supported for
improved livelihoods
and access to
welfare entitlements.		 55,000 75,394 45,000 30,302 165,000 150,696
4. Number of
people from
vulnerable
communities
supported to adapt
to climate change		 18000 25,912 19,000 17,770 54,000 62,682

These results highlight the consistent outcomes Karuna has delivered over the three years of our strategy. By supporting thousands of girls to stay in school, protecting thousands of women and girls from violence and trafficking and helping vulnerable communities adapt to climate change, we have delivered real, measurable changes in the lives of those most at risk.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Analysis of Impact by Country (2025-26)

Country Partners Projects Direct Beneficiaries
India 11 18 108,011
Nepal 7 8 13,001
Bangladesh 4 4 25,036
Total 22 30 146,048

India

Karuna’s India programme in 2025–26 comprised 11 active partners working on education, livelihoods, gender equality, disability inclusion and climate resilience. India accounted for 74% of beneficiary outreach and generated some of the most sophisticated models of engagement with government and civil society.

At its heart, Karuna supports communities historically marginalised by social and gender discrimination to have power over their lives and choices. We reach out to those often overlooked by other NGOs, prioritising partnerships with local leaders and providing capacity-building support where needed. A primary focus is — supporting women-led and women-focused organisations through our Maitri network a platform where Dalit women-focused CSOs can come together to collaborate and share vital resources.

Key achievements and changes:

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Qualitative Impact

Beyond these results, our partners consistently report that projects foster a deeper sense of community engagement and agency, giving individuals confidence and peer support to overcome traditional taboos, develop their own solutions and access their rights.

A key learning from our work is that genuine community ownership of project activities through the formation of supportive grassroots structures such as women’s self-help groups, local school management committees or smallholder farmer collectives- are crucial in ensuring the sustainability of project benefits after project funding comes to an end.

Gender Equality Case Study: Surviving Assault and Seeking Justice

Anita (name changed), a 37-year-old woman from Dhule district, took on catering work to help support her family, travelling with her employer to wedding assignments across the region.

On the return journey from one such event, two men followed them, stopped them on the road and attacked her employer, before forcibly taking Anita to a nearby forest and assaulting her. Before abandoning her at a roadside, the men stole her phone, threatening her and her family with harm if she spoke out.

Terrified, Anita managed to reach her husband, who reassured her and urged her to come home safely. Together, they went to the police and registered a case against her attackers.

Jan Sahas learned of the case and visited Anita's home to offer support. Though frightened and hesitant at first, she was given trauma-informed counselling and care by the project and offered legal guidance. With the project’s sustained engagement, Anita and her family were able to withstand the shock and social stigma of the assault. In time, she gradually regained her confidence.

Today, Anita is pursuing her case in court with Jan Sahas' assistance. The organisation's lawyers hold rehearsal hearings to help her understand the proceedings and feel prepared to give her testimony. She has received ₹90,000 in compensation so far. While this is held in a fixed deposit for her health and recovery, the team have supported her in opening her first bank account. They also organised village-level meetings in order to counter the stigma survivors often face and rally community support around her family.

Reflecting on her journey, Anita shared: "I was scared to speak, but Jan Sahas gave me support. Now I am strong."

A Karuna grant to the Jan Sahas Voice of Women Project has supported 4,779 women and girls to access justice, resist violence and prevent child marriage.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Nepal

Karuna’s Nepal programme launched in response to the 2015 earthquake. Since then, our impact has grown through sustained grant funding from BMZ and various trusts and foundations. This multi-year support has allowed us to build enduring partnerships with community-based CSOs working in Nepal's most remote — regions areas where health and education services are hard to access. In these communities, systemic poverty and social marginalisation are increasingly intensified by climate change, which continues to disrupt traditional agricultural livelihoods.

— Over the past year, Karuna supported seven partners including ADWAN, FEDO, Green Tara, REED and — Pragya Solutions (Nepal) to strengthen community capacity. Together, we focus on the interlinked issues of gender equality, trafficking prevention, governance accountability and environmental resilience.

Key achievements and changes:

Livelihoods Case Study: Building Independence

Twenty-seven-year-old Laxmi lives with her young son on government land in a slum in Kalika Municipality, Nepal, in conditions of constant insecurity, with limited access to clean water, sanitation and basic services.

Married at seventeen and landless, she relied on her husband's irregular earnings from contract work in Qatar, which were rarely enough to cover food, clothing or her son's schooling, forcing her to work as a daily labourer on other people's farms.

In 2024, ADWAN project field staff identified her family as highly marginalised during door-to-door visits and introduced her to the Nabakiran Women's Group.

Through the group, Laxmi took part in off-season vegetable farming alongside training in skills development, financial literacy, women's rights and gender-based discrimination, learning to grow high-value crops and manage her household finances.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Laxmi's confidence has since flourished. She now runs the household independently, communicates with her husband on a more equal footing and writes and reads the minutes at her group's monthly meetings. No longer defined by survival alone, she says she feels able to face daily challenges "with greater strength and determination." Her ambition now is to become a successful entrepreneur, supporting her family through her own earnings.

A Karuna grant to the ADWAN project has supported 210 marginalised and Dalit women through — skills, financial literacy and rights-based training with 160 already running their own enterprises and earning independent incomes.

Bangladesh

Climate change is driving a massive migration crisis in Bangladesh. Rising sea levels and frequent cyclones displace nearly 500,000 people annually, with 2,000 arriving in Dhaka every day after losing their coastal livelihoods. Some migrate overseas, especially to the Gulf States, but most end up in the overcrowded slums of Dhaka, where over 40% live below the poverty line. These informal settlements lack clean water and sanitation, fuelling disease and extreme poverty. With one in seven Bangladeshis potentially displaced by 2050, Dhaka’s infrastructure faces collapse under the weight of this uncontrolled climate-driven urbanisation.

Karuna began working in Bangladesh in 2023 and, over the past year, consolidated our programme engaging with 4 partner CSOs. Our projects addressed both the causes and effects of climate-driven migration, engaging with coastal communities to strengthen climate resilience and working in the urban slums of Dhaka to promote access to education and livelihoods for women from slum-dwelling migrant communities.

Whilst our programme in Bangladesh is still relatively new and small-scale, accounting for only 17% of total beneficiary numbers, we are already seeing some significant impacts.

Key achievements and changes:

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Education Case Study: New Opportunities for a Child Waste Picker

Eleven-year-old Khaled Khan, a Class 4 student at Grambangla School, looks forward to a bright future. His parents migrated to Dhaka for a better life and work as informal waste pickers at the Matuail dumpsite, sorting through piles of filthy waste by hand and seeking items for re-sale.

Poverty forced Khaled’s elder brother into child labour and led to Khaled’s withdrawal from a school due to unpaid fees. Before Grambangla intervened, Khaled accompanied his mother to the hazardous dumpsite — daily. Today, the school provides him with a safe environment, free tuition and essential nutrition — including breakfast and mid-day meals that his family otherwise struggles to afford.

Beyond basic education, Khaled is learning computer skills, enjoys indoor games and receives a new school uniform every year. The impact extends toward his long-term goals. After primary school, he will transition to the neighbouring secondary school with a 50% tuition waiver. Now free from the hunger and health risks of the dumpsite, Khaled is determined to complete his school certificate and attend college.

A Karuna grant enabled 248 children like Khaled to attend the Grambangla school close by to the Matuail Dumpsite.

Partner and Project Summary

– Below is a list of all Karuna supported partners and projects in 2025 26 and a summary of the impact of each project.

India

----- Start of picture text -----
Partner Project Title Impact
Improved quality of life for 609 children and young
Celebrating Diversity through
Aaina people with disabilities through better access to
Inclusion
education, entitlements and livelihoods.
Aryaloka Computer Institute 237 students gained computer skills; 89 have secured
Aryaloka
2024-28 employment to support their families.
Engaged 25,000 migrant workers to access welfare
Entitlements for Migrant
Jan Sahas benefits and establish social security as an enforceable
Labourers 2025-26
right.
Built professional capacity for 101 CSOs (reaching a
Grassroots Resilience Institute
SoulScale combined total of 1.8m people) and mobilised over £1.4
2025-6
million in new funding.
Jan Sahas Child Rights Project Supported 4,551 children (2,354 girls, 2,197 boys) to
Jan Sahas
2022-26 complete education and access skills training.
Expanded network from 10 to 13 CSOs; achieved a
99.75% FIR registration rate for 1,579 cases,
Jan Sahas Maitri Network III
increasing access to justice for women survivors of
violence.
Empowered 4,779 women and girls through legal
Jan Sahas Voice of Women II knowledge to resist violence and prevent child
marriage.
Girls' Education in Rural Empowered 9,000+ girls in Pune, achieving a 96.89%
NISD
Maharashtra transition rate to higher education.
Educate and Empower NT-DNT Supported 2,225 children (1,259 girls, 966 boys) to stay
Nirman
Girls 2023-27 in school and improve community safety.
Sustainable Livelihoods through 260 women gained enhanced economic resilience by
Nirman
Kitchen Gardens diversifying income through kitchen gardening.
----- End of picture text -----

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

----- Start of picture text -----
Supported 950 girls to complete education via
Nishtha Natun Diganta 2022-26 community collectives and mother-led action against
child marriage.
Provided therapy/skills to 180 disabled children for
Nishtha Bhalobasha
Nishtha mainstream school entry; improved family financial
2024-27
stability.
Supported 1,090 girls to complete education, promoting
Nishtha Sikhai Hathiyar
Nishtha women's leadership and changing traditional mindsets
2024-28
in orthodox communities.
5,744 women and girls gained skills to prevent
Protection of Women and Girls
Pragya trafficking, respond to violence, and achieve
in TIP Hotspots 2023-26
independence.
Pragya Participatory Community-based 3,058 people adopted climate-smart agriculture and
PRAN Disaster Preparedness clean energy to manage livelihood challenges.
Sustainable Livelihood 1,941 people from Musahar and Scheduled Caste
SSEVS Intervention for Dalit families transitioned from child labour to education and
Empowerment smallholder farming.
TBMSG Empowered 1,758 women and girls to break social
Women Social Project 2022-26
Nagpur barriers and improve reproductive health awareness.
Runaway Girls Project Provided safe shelter and rehabilitation for 800 girls
Urja
2022-26 escaping domestic violence and abuse.
Nepal
Partner Project Title Impact
Improved Livelihood and 210 women trained for economic independence; many now
ADWAN
Economic Opportunity participate in local governance.
693 women saw a 10% increase in confidence, enabling
FEDO Mahila Saman Phase 2
them to hold authorities accountable.
Ensuring Safe Maternal,
Green Tara Strengthened health posts for 4,783 women; initiated a shift
Neonatal and Child
Nepal in attitudes toward women in leadership.
Healthcare
Offered 2,404 women safe menstruation opportunities and
Green Tara
Dignity for Women II (BMZ) secured commitment from local leaders to end the harmful
Nepal
practice of Chhaupadi.
Learning Champions - 733 Dalit/marginalised girls improved learning by 5%
REED Nepal
Strong Girls II annually; mothers achieved financial independence.
Transformed 2,536 members into "change agents" for
Strengthening Climate
REED Nepal climate resilience through organic farming and school-
Resiliency in Melamchi II
based eco-clubs.
----- End of picture text -----

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Future
Generation		 Child Trafficking Prevention Expanded awareness across 22 schools, reaching 1,000
duty bearers and thousands of parents.
Pragya PRAN Participatory Community-
Based Disaster
Preparedness		 5,651 farmers adopted regenerative practices and
participated in local disaster risk planning.
Pragya PRAN
arcpaory ommuny-
Based Disaster
Preparedness
5,651 farmers adopted regenerative practices and
participated in local disaster risk planning.
Bangladesh
Partner
Project Title
Impact
Grambangla
Unayyan
Healthy Futures for Child
Waste Pickers
Moved 248 children out of hazardous work on waste
sites and into school; shifted families toward
professional medical care.
Nari Maitree
Transforming Lives through
Inclusive Livelihoods
420 people developed a better understanding of
gender roles; provided daycare for 25 children.
OKUP
Resettlement of returning
migrants
5,201 returnee workers (mostly women) restored
their dignityandgained awareness to seekjustice.
Pragya PRAN
Participatory Community-
based Disaster
Preparedness
4,731 farmers shifted to climate-smart farming;
women and young people took on new leadership
roles.

The Karuna Family

Since 1980, Karuna (previously operating as Aid for India) has mobilised resources to support people to — transform their lives in South Asia. We have grown and now have two sister charities Karuna Germany (since 2007) and Karuna USA (since 2021). Together, we have built a network of organisations that work together and share resources and skills to support our programmes in South Asia. Collaborating in this way has enabled us to significantly expand the scale of the projects we fund and build new ones.

Karuna Germany

The Karuna Trust and Karuna Germany have a close working relationship and jointly fund and manage many of the same projects. We collaborate on funding applications and last year secured funding for a new phase of our Dignity for Women programme promoting menstrual dignity for girls and women in Nepal.

In 2025, Karuna Germany was able to invest a record sum of over €1.4 million (£1.2 million) into projects in India, Nepal and Bangladesh. These initiatives reached more than 95,000 people, making a significant difference in challenging areas, such as tackling violence against women and addressing the impacts of climate change. One project was aimed at building resilience to climate change in the vulnerable Ganges Delta region and spanned all three countries. By 2025, it had supported 13,400 people through climate resilient agriculture, protection against flooding and erosion and disaster risk reduction.

Karuna Germany’s total income rose by 8% over the previous year, reaching €1,602,205. Most of the project funding is secured from the German Federal Ministry for Economic Cooperation and Development (BMZ). We received a total of €1,025,295.12 in funding from the BMZ (+10.68% compared to the previous year). Their general growth trend is also evident in the area of donations. In 2025, Karuna Germany received a total of €181,063.78 in one-off and recurring donations from private individuals and organisations. This is more than double the amount from the previous year.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

The Karuna Trust’s financial year runs from April to March, while Karuna Germany’s financial year is January to December. As a result, the figures presented in this section reflect different reporting periods for each organisation and direct comparisons should take these different financial year-ends into account.

Karuna USA

In 2021, we established Karuna USA with the purpose of widening our base, reaching new funders and generating more support for our work. Karuna USA attracted a highly skilled and innovative Board of Trustees and, having met the relevant legal requirements, was formally registered in November 2022.

Karuna USA aimed to identify resources and champions of our work and engage partners with similar operations to uplift marginalised groups in South Asia and eventually in the United States itself. In 2022, the focus of Karuna USA was establishing itself legally, creating a new website and social media presence, hiring staff and initial fundraising campaigns. It formally launched in November 2022.

Since then, Karuna USA (KUSA) has made £167,948 in grants to Karuna UK but at the same time has relied on financial support from Karuna UK to cover operational costs.

In the year 24/25, Karuna Trust made the difficult decision to reduce funding for Karuna US and ultimately transition to a minimal model. This decision followed a period of unprecedented upheaval in the global aid sector, triggered by the new US administration’s policies and the abrupt USAID funding freeze.

In this context, the Karuna Trust Board agreed to a four-month tapered reduction in support completing on 31 May 2026, since then KUSA has run as a much smaller organisation, keeping its US charity registration and ability to receive donations but with no paid staff.

Throughout this transition, the Karuna Trust has prioritised the stewardship of KUSA’s regular donors. Our team in the UK is also actively following up on promising leads and relationships with US-based trusts, while ensuring that donors stay informed and engaged. Looking ahead, the Karuna will continue to nurture these donor relationships and pursue new opportunities with new US-based partners.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

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THE KARUNA TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2026 CONSIX1￿lTEo BAlA￿E SHEET ASAT31 MARCH 2026 KJruna UK Karuna t Karuna L Total funds 2025126 Total furK15 20￿/26 2025126 202S126 2024125 R¥ed Assrt Tan Ib￿ assets 232.483 234483 230,216 Current AsXt¥ DebEiJr5 121,639 859,010 980,650 12L639 1,149,026 1,270.665 151,283 I,OM,544 1.155,827 sh at bank arKI in harml 281,1￿9 281869 8.141 .147 Creditors.. amcAJnts due within 86,799 8&799 73,962 Tot41 AJ•rts leM Current Uoblltles 1.126,333 281 .147 1,416,349 1.312,081 Fun& unfestr￿ed funds Resiricted furKIs 944,089 182.249 8.147 951235 464113 1,013,501 298,580 281,￿9 1,126,333 281 8,147 IAI4349 1.312,081 Note: F5gww DE & Karum USA •r• drawn from unaudited a(xounts prepared on a receipts & payments basis, contain inter-(wnIsat￿￿è1transart1onj and eXth•￿ rate e$iimates ond •r• pr<y4ided for kndlcatfve se5 Ll Page 15

THE KARUNA TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2026 Charitsble Actimties including Grants to Partner5 Karuna UK Karuna DE Karuna U&4 Total 2025126 Total 2024125 Grants to Indlan artner5 AAINA 362( 36,206 30.& 8.112 28,827 22.349 37.333 Adecom aloka Aryaloka - Chhath5garBh BH Amravati Oarabar Sahi ITBCI 34,103 10.927 3378 4324 4.121 34.103 10.927 5.091 4.324 4.121 1.712 a Sansad 4.443 6.356 fK)7,111 244.130 70.595 31.195 154.587 18.622 251.737 90.821 8.387 30,427 40,470 Jambudvipa lan Sahas 111,859 22.433 64.434 35.967 174Th 429.991 216.497 37.170 541.850 238.930 lo1.￿)3 35.967 174.tK)O Maitri Network Nirman NISD Nishtha PHIA Fouwiddtion Pragya )uLscd 95541 173.482 11978 28376 42,084 4324 104211 199,752 173,482 11,978 31,854 42,084 4,324 SSEVS Bihar TBMSG Na ur 3,478 Yuva Vikas Mandal Grants to Nepab05e partns ADWAN 27,022 33,784 19,595 642￿) 27.022 33.784 19.595 246.￿8 67.964 177.182 15,546 30,241 20,013 148,742 113,668 ?18,831 FEDO Future General￿n Green Tara Trust Ne al 182,618 67,964 108,107 Fa RFFD 69P76 Grant5 to Bangladeshl partnw5 IGrarrbargalry Umayan 30.122 6.125 31,114 30.122 6,125 31.114 34,(K)6 54.371 27.831 FL9nYo Pab 9ri Ma*r88 29.371 34,fy17 149,397 OKUP a Sduticfjs 54.371 Grants to German artners Kar￿a DE IBMZ match kndrYJl Grants U5 partners Kar￿8 USA ladust￿l SUFWt Costs & rociycral sTanll 29,4 29.480 14,019 5330 5.330 81,392 su￿1(￿al5 L207.482 LX6.118 2.413.599 1569.4 Gov8rronce & charIta￿e costs 66,174 L2TJ.655 5.286 1.211.4LS1 71,460 2,485,059 69,571 163&977 Totals Page 16

THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Financial Review

Income

The total income received by The Karuna Trust for the year ended 31 March 2026 was £2,165,276 (2025: £2,100,568), an increase of £64,708 year-on-year.

In the year to 31 March 2026, total income from Regular Giving was £1,417,211 (2025: £1,455,851). Our Regular Giving income is typically derived from door-to-door campaigns, give-as-you-earn, telephone upgrade campaigns and online giving. We rely heavily on volunteers to run most of these campaigns, all of whom are connected to the Triratna Buddhist community. Despite a challenging economic climate, we were able to run three door-to-door appeals and one telephone upgrade appeal together with a series of regional door-to-door appeals run by three individual fundraisers.

One-off donations from individual donors raised £136,474 (2025: £141,939).

Our Christmas Appeal 2025 raised a further £94,482 plus Gift Aid (2025: £78,967) for our "Missing, Not Lost" campaign to prevent the trafficking of children and young adults, rescue those who have been exploited and reunite survivors with their families.

We have been developing our online presence through digital campaigns, including via email, social media and the Global Giving platform which is based in the USA as well as Community Fundraising platforms like Just Giving. This year, income from these campaigns was £86,996 (2025: £35,430).

During the year we received £13,311 in legacy gifts (2025: £20,087). We deeply appreciate that Karuna is considered for gifts left in wills, no matter how large or small; they make a significant impact on our work.

Income from grant-giving trusts was £347,711 (2025: £264,641) of which £321,126 was restricted income. We are deeply grateful to our trust partners, with whom we work closely, for their ongoing support of our work in India, Nepal and Bangladesh.

Expenditure

Our expenditure for the year was £2,126,255 (2025: £2,209,906) a decrease of £83,651.

Funding of programme delivery in India was aided by a substantial increase in the value of Sterling against the Rupee enabling similar programme delivery year-on-year but for less Sterling investment. In addition to maintaining our level of grant funding in local currencies this exchange rate gain enabled us to make additional, year-end grants to partners in India totalling £44,919.

Over the past year, The Karuna Trust committed £1,211,160 to programmes delivery, a decrease of £101,613 from the previous year (2025: £1,312,773). Of this total, direct grants to partners totalled £896,241 for the year (2025: £983,942).

During the year, The Karuna Trust made grant payments to Bangladeshi partners of £75,011 (2025: £84,593) a slight decrease of £9,582.

We made grant payments to Nepalese partners during the year to £158,185 (2025: £215,096) a year-on-year decrease of £56,911.

Grant payments to partner organisations working in India were £634,567 (2025: £597,078) an increase of £34,287 year-on-year.

Programme management expenditure was £314,919 (2025: £328,285). This includes partner training, partner workshops, capacity building and awareness-raising activities carried out by in-country professional

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

consultants and UK and Germany-based programmes managers. Over the past couple of years, we have strengthened the support we give to partners, particularly emphasising financial management, compliance and the safeguarding of children and vulnerable adults.

We made grant payments of £6,666 to Karuna USA (2025 £76,674) a reduction year-on-year of £70,008 in line with our intention reported in 2025 to move to a minimal funding model in the wake of unprecedented upheaval in the global aid sector. We also made grant payments of £21,815 to Karuna Germany (2025 £10,508) as a contribution to match funding for projects.

During the year, Karuna USA made grants of £3,678 (2025: £20,905) to The Karuna Trust which were applied to our overall programme grants.

At the year-end, we carried £2,014,355 in future grant commitments to partners (2025: £1,109,260). These are contingent liabilities, not contractual, and therefore do not appear on our balance sheet and are not included in the reserve calculation. Nonetheless, they represent a very real responsibility for The Karuna Trust.

Combined charitable expenditure delivered by both The Karuna Trust and Karuna Germany totalled £2,485,059 (2025: £2,638,977), a decrease of £153,918.

The cost of generating funds for The Karuna Trust for the year was £848,920 (2025: £839,092). Of this figure, £521,847 (2025: £558,805) was incurred in direct fundraising costs and the balance of £327,074 (2025: £280,585) in administrative support costs (including IT, financial processing, and communications). This means that our direct fundraising costs this year were 24% of income (2025: 26.6%), a tremendous achievement by our fundraising team in what continues to be a challenging and unpredictable fundraising environment.

Governance costs for the year were £66,174 (2025: £58,050).

Overall, the charity recorded a surplus for the year of £39,021 (2025: £109,338 deficit), transferred to reserves.

Reserves Policy

At the end of the year, the charity had total reserves of £1,126,333 an increase of £39,021 against the previous year. An analysis of the reserve amount is as follows:

The charity’s reserves policy aims to maintain an operating reserve equivalent to 4 months’ costs, which, on 31 March 2026, equated to approximately £700,000.

Investment Policy and Performance

The charity’s surplus funds are held in interest-bearing accounts with our bankers. We continue to do all we can to obtain the best rates of interest.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Performance Against Our Three-Year Plan

In our 3-year strategy, 2023-26, we estimated that we would have invested £8.8 million in our programmes, strengthened our relationships with our sister charities in Germany and the USA and increased our income by reaching new audiences and deepening engagement with existing supporters. As of 31 March 2026, we have invested £7,552,883 million in charitable delivery, or 86% of our three-year target.

A significant contributing factor behind the shortfall has been the collapse of USAID funding and the consequent reduction in funds available.

Looking Ahead

In July 2025, we said goodbye to our CEO of 12 years, Ciaran Maguire, and welcomed Louise Thomas into the role. The change of leadership, alongside the completion of our previous strategy period, provides an opportunity to look afresh at Karuna’s long-term vision and contribution, focusing on our unique strengths and the insights gained from more than 40 years of working alongside some of the most marginalised communities in India, Nepal and Bangladesh.

During 2026/7, Karuna will be undertaking a review of our organisational mission, vision and long-term strategy, ensuring we remain able to be responsive to the needs of marginalised communities in a volatile economic and geopolitical landscape. In this context, it is critical that Karuna continues to listen to civil society partners who know the communities they work with best, to find new ways to hear the voices of those most in need and to communicate those needs – and our response - clearly and powerfully with current and future supporters.

While this review is underway, we remain committed to our existing priorities and to strengthening our approach. Our programme for 2026/7 continues to support thousands of girls to stay in school, protect women and girls from violence and trafficking, support migrants and vulnerable individuals to gain livelihoods and claim entitlements and to help vulnerable communities adapt to climate change.

How we work is important to us and supporting grassroots organisations remains at the heart of our approach. We will continue to support grassroots leaders and civil society organisations working from and within the most marginalised communities through grant-making, capacity building partnerships and seed funding. We will strengthen our monitoring, evaluation and learning function to better understand the impact of the activities we support. We will also continually improve our own processes to ensure our work promotes sustainability, growth and agency: in the communities touched by our projects, in partner organisations and in our own team.

Karuna’s dedicated team, strong planning and governance and Buddhist-inspired ethos remain great strengths. However, it is our relationships with our partners and our donors that allow us to play our part in a network of impact. Together, they enable us to weather uncertainty and deliver life-changing support to communities that are too often overlooked. As we look ahead, our commitment is unwavering: to continue reaching those facing the greatest barriers, to adapt with resilience and to ensure that Karuna’s work is a ray of hope in this increasingly complex world.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Structure, Governance and Management

The Karuna Trust is a company limited by guarantee and registered with the Charity Commission as a charity. The Trustees, who are also the directors for the purposes of company law and served during the year, were:

The Trustees give their time on a voluntary basis to the management and governance of the charity. They meet four times a year to review the progress of the charity in all its activities and to make major decisions about direction, policy, staffing and grants to partner projects. When needed, the Trustees establish working groups to address specific issues and report their findings to the full board.

The Trustees of The Karuna Trust are also Trustees of Aid for India (founded 1980), which is the original name for the Trust. All the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up. None of the Trustees has any beneficial interest in the company.

Through the CEO, the Trustees liaise closely with the Senior Management Team, Fundraising, Programmes and Finance Teams, who are paid staff and are responsible for ensuring that the standard of care required by the Trustees is carried out in the areas of grant management, governance, fundraising and publicity. The Trustees are all members of the Triratna Buddhist Order.

The day-to-day management of the charity is delegated to the Chief Executive Officer, who serves as the primary liaison with the Trustee body. The CEO ensures the effective implementation of the charity's strategic plans and policies, providing regular updates and feedback to the Trustees. This role is crucial in maintaining a cohesive and transparent relationship between the operational team and the governance structure.

New Trustees attend induction meetings with the Chair and CEO and the Governance and HR Manager ensures they receive briefings on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the Business Plan and the current financial situation as set out in the latest published accounts. During the induction, the Trustee may also meet other senior staff. Trustees consent to Enhanced checks with the Disclosure and Barring Service (DBS) and attend Safeguarding training from an external provider. They are encouraged to attend appropriate external training events so they may keep abreast of their duties and current developments.

Risk Management

The Trustees have carefully assessed the major risks facing the charity and are confident that systems and procedures are in place to mitigate these risks effectively.

Karuna’s Management Team conducts a comprehensive annual review of all significant risks supplemented by regular interim assessments throughout the year. The findings are reported to the Trustees, and the risk register is updated accordingly. The risk review for the year 2025/26 was completed and approved by the Trustees in May 2025, with the next full review scheduled for July 2026, with an emphasis on strategic risks and those operational risks evaluated with high-risk profiles. Reports on Safeguarding and Health and Safety are mandatory agenda items at every Board meeting, presented by the Governance and HR Manager.

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THE KARUNA TRUST

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

Auditor

In accordance with the company’s articles, a resolution proposing that Bishop Fleming Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

The trustees’ report was approved by the Board of Trustees.

Peter White (Chair) Carolyn Milosevic MBE

Trustee Trustee

Date: Date:

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THE KARUNA TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2026

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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THE KARUNA TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KARUNA TRUST

OPINION

We have audited the financial statements of The Karuna Trust (the 'charitable company') for the year ended 31 March 2026 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of 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:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

OTHER INFORMATION

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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THE KARUNA TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KARUNA TRUST (CONTINUED)

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Companies Act 2006 and Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which 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.

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THE KARUNA TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KARUNA TRUST (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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:

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We have also obtained understanding of the legal and regulatory frameworks that the charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities Act 2011, Charity SORP 2019, FRS 102 and the terms and conditions attaching to material grants received by the charitable company. In addition, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate or avoid a material penalty. These included data protection regulations, health and safety regulations and employment legislation.

Our procedures to respond to risks identified included the following:

We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit.

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THE KARUNA TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE KARUNA TRUST (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

USE OF OUR REPORT

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

David Butler FCA DChA (Senior Statuatory Auditor)

for and on behalf of

Bishop Fleming Audit Limited Chartered Accountants Statutory Auditors 10 North Place Cheltenham GL50 4DW

Date:

Bishop Fleming Audit Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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THE KARUNA TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2026

Note
Income from:
Donations and legacies
3
Investments
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
8
Total expenditure
Net (expenditure)/income
Transfers between funds
17
Net movement in funds
17
Reconciliation of funds:
Total funds brought forward
Net movement in funds
17
Total funds carried forward		 Unrestricted
funds
2026
£
1,740,452
65,414
1,805,866
837,670
1,041,460
1,879,130
(73,264)
11,246
(62,018)
1,006,103
(62,018)
944,085		 Restricted
funds
2026
£
359,410
-
359,410
11,250
235,875
247,125
112,285
(11,246)
101,039
81,209
101,039
182,248		 Total
funds
2026
£
2,099,862
65,414
2,165,276
848,920
1,277,335
2,126,255
39,021
-
39,021
1,087,312
39,021
1,126,333

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing activities.

The notes on pages 30 to 48 form part of these financial statements.

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THE KARUNA TRUST

BALANCE SHEET AS AT 31 MARCH 2026

Note
Fixed assets
Intangible assets
13
Tangible assets
14
Current assets
Debtors
15
Cash at bank and in hand
20
Current liabilities
Creditors: amounts falling due within one
year
16
Net current assets
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 121,640
859,010
980,650
(86,799)		 2026
£
10,800
221,682
232,482
893,851
1,126,333
182,248
944,085
1,126,333		 151,283
779,773
931,056
(73,959)

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

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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

Peter White (Chair) Trustee Date:

Carolyn Milosevic MBE Trustee

Date:

The notes on pages 30 to 48 form part of these financial statements.

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THE KARUNA TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026

Note
Cash flows from operating activities
Net cash used in operating activities
19
Cash flows from investing activities
Purchase of intangible assets
Purchase of tangible fixed assets
Investment income received
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
20		 2026
£
23,942
(4,877)
(5,242)
65,414
55,295
79,237
779,773
859,010		 2025
£
72,367
-
(12,094)
82,845
70,751
143,118
636,655
779,773

The notes on pages 30 to 48 form part of these financial statements

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THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

1. GENERAL INFORMATION

The Karuna Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 72 Holloway Road, Holloway, London, N7 8JG.

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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Karuna Trust 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.

2.2 GOING CONCERN

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3 INCOME

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

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charitable company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charitable company, can be reliably measured.

Grants are included in the 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.

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THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

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 charitable company to raise funds for its charitable purposes and includes costs of all fundraising activities events and noncharitable trading.

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

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

2.5 INTEREST RECEIVABLE

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

2.6 INTANGIBLE ASSETS AND AMORTISATION

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the charitable company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

The estimated useful lives are as follows:

Trademarks - Straight line over 10 years

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THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

2. ACCOUNTING POLICIES (continued)

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.

At each reporting date the charitable company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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:

2.8 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.

2.9 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.

2.10 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 charitable company 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 Statement of financial activities as a finance cost.

2.11 FINANCIAL INSTRUMENTS

The charitable company 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.

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THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

2. ACCOUNTING POLICIES (continued)

2.12 OPERATING LEASES

Rentals paid under operating leases are charged to the Statement of financial activities on a straightline basis over the lease term.

2.13 PENSIONS

The charitable company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charitable company to the fund in respect of the year.

2.14 RETIREMENT BENEFITS

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.15 FUND ACCOUNTING

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

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company 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 33

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

3. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2026
Restricted
funds
2026
£
£
Donations
1,727,141
359,410
Legacies
13,311
-
1,740,452
359,410
TOTAL 2025
1,747,159
270,564
4.
INVESTMENT INCOME
Unrestricted
funds
2026
£
Rental income
37,776
Interest receivable
27,638
65,414		 Total
funds
2026
£
2,086,551
13,311
2,099,862
2,017,723
Total
funds
2026
£
37,776
27,638
65,414

Page 34

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

5. EXPENDITURE ON RAISING FUNDS

COSTS OF RAISING VOLUNTARY INCOME

Unrestricted
funds
2026
£
Bank Charges
14,995
Newsletters, printing & postage
20,488
Fundraising Expenses
180,615
Rent and hire
30,565
Staff Costs
585,366
Depreciation, impairment and amortisation
5,641
837,670
TOTAL 2025
839,092		 Restricted
funds
2026
£
-
-
-
-
11,250
-
11,250
-		 Total
funds
2026
£
14,995
20,488
180,615
30,565
596,616
5,641
848,920
839,092

6. ANALYSIS OF GRANTS

Grants to institutions
TOTAL 2025		 Grants to
institutions
2026
£
896,241
983,942		 Total
funds
2026
£
896,241
983,942

Please see note 7 for further detail.

Page 35

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

7. GRANTS TO PROGRAMME PARTNERS GRANTS TO PROGRAMME PARTNERS
Charitable Activities Unrestricted Restricted Total
Support &		 Total Total
grants grants grants development funds funds
costs 2026 2025
£ £ £ £ £ £
Grants to Indian partners
AAINA 26,792 - 26,792 9,414 36,206 30,806
Aryaloka 25,236 - 25,236 8,867 34,103 28,827
Aryaloka - Chhattisgarh 7,978 108 8,086 2,841 10,927 22,349
BH Amravati 2,500 - 2,500 878 3,378 24,682
Darabar Sahitya Sansad 3,200 - 3,200 1,124 4,324 -
ITBCI 50 3,000 3,050 1,072 4,121 4,443
Jambudvipa - - - - - 6,356
Jan Sahas 33,916 48,858 82,774 29,085 111,859 154,039
Maitri Network 16,600 - 16,600 5,833 22,433 17,831
Nirman 40,930 6,750 47,680 16,754 64,434 59,762
NISD 11,787 14,828 26,615 9,352 35,967 31,195
Nishtha 68,768 59,989 128,757 45,242 174,000 154,587
PHIA Foundation - - - - - 3,402
Pragya 46,864 23,835 70,699 24,842 95,541 93,476
SoulScale 128,374 - 128,374 45,108 173,482 90,821
SSEVS Bihar 8,864 - 8,864 3,115 11,978 8,387
TBMSG Nagpur 20,998 - 20,998 7,378 28,376 25,181
Urja 15,756 15,386 31,142 10,942 42,084 40,470
Yuva Vikas Mandal 3,200 - 3,200 1,124 4,324 -
Grants to Nepalese partners
ADWAN 19,996 - 19,996 7,026 27,022 15,546
FEDO 25,000 - 25,000 8,784 33,784 30,241
Future Generation Nepal 7,300 7,200 14,500 5,095 19,595 20,013
Green Tara Nepal 14,243 33,331 47,574 16,716 64,290 84,507
Pragya - - - - - 46,839
REED 34,115 17,000 51,115 17,961 69,076 89,832
Grants to Bangladeshi partners
Grambangla Unnayan
Committee		 22,265 25 22,290 7,832 30,122 27,831
Hamro Palo 4,533 - 4,533 1,593 6,125 -
Nari Maitree 23,024 - 23,024 8,090 31,114 29,371
OKUP 25,164 - 25,164 8,842 34,006 34,047

Page 36

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

GRANTS TO PROGRAMME PARTNERS (CONTINUED)

Grants to Bangladeshi
partners (continued)
Pragya Solutions
Grants to DE partner
Karuna DE
Grants to US partner
Karuna USA
Totals		 -
-
-
-
-
21,614
5,000
16,815
21,815
7,665
29,480
14,010
6,666
-
6,666
2,342
9,008
102,297
649,117
247,124
896,241
314,919
1,211,160 1,312,764

8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Unrestricted
funds
2026
£
Support Costs
314,920
Governance Costs
66,174
Grant funding of activities
660,366
1,041,460
TOTAL 2025
1,370,814		 Restricted
funds
2026
£
-
-
235,875
235,875
-		 Total
2026
£
314,920
66,174
896,241
1,277,335
1,370,814

Page 37

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Support costs
Governance costs
Grants to institutions
TOTAL 2025
ANALYSIS OF SUPPORT COSTS
Staff costs
Depreciation
Training and development
Rent and service charges
Consultancy
Travel and subsistence
Programmes communications and publicity
Audit fees
Legal and professional
Office costs
Bank charges
Other costs
TOTAL 2025		 Grant
funding of
activities
2026
Support and
Governance
costs
2026
£
£
-
314,920
-
66,174
896,241
-
896,241
381,094
983,942
386,872
Support
Costs
2026
Governance
Costs
2026
£
£
202,091
34,785
1,970
241
6,094
-
6,449
-
45,863
71
14,480
1,545
5,498
-
-
18,900
-
701
-
9,877
-
54
32,475
-
314,920
66,174
328,822
58,050		 Total
funds
2026
£
314,920
66,174
896,241
1,277,335
1,370,814
Total
funds
2026
£
236,876
2,211
6,094
6,449
45,934
16,025
5,498
18,900
701
9,877
54
32,475
381,094
386,872

Page 38

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

10. NET MOVEMENT IN FUNDS

The net movement in funds is stated after charging/(crediting):

2026 2025
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 15,500 19,179
Depreciation on owned tangible fixed assets 6,871 9,662
STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2026
£
741,751
72,496
19,245
833,492

11. STAFF COSTS

Included in wages and salaries are ex-gratia termination costs totalling £24,300 (2025: £Nil). These have been funded from unrestricted funds.

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

Grant management
Fundraising
Governance		 2026
No.
5
17
1
23

There were no employees whose annual remuneration was more than £60,000 (2025: Nil).

12. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2025 - £NIL).

During the year ended 31 March 2026, expenses totalling £701 were reimbursed or paid directly to 2 Trustees (2025 - £2,496 to 3 Trustees).

Page 39

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

13. INTANGIBLE ASSETS
Trademarks
£
COST
At 1 April 2025 -
Additions 4,877
Disposals (2,829)
Transfer from tangible fixed assets 9,735
At 31 March 2026 11,783
AMORTISATION
At 1 April 2025 -
Charge for the year 981
On disposals (2,829)
Transfer from tangible fixed assets 2,831
At 31 March 2026 983
NET BOOK VALUE
At 31 March 2026 10,800
At 31 March 2025 -

Page 40

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

14. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 April 2025
Additions
Transfer to intangible assets
At 31 March 2026
DEPRECIATION
At 1 April 2025
Charge for the year
Transfer to intangible assets
At 31 March 2026
NET BOOK VALUE
At 31 March 2026
At 31 March 2025
DEBTORS
DUE WITHIN ONE YEAR
Other debtors
Prepayments and accrued income		 Land and
buildings
£
295,100
-
-
295,100
79,138
2,101
-
81,239
213,861
215,962		 Plant and
machinery
£
42,305
5,242
(9,735)
37,812
28,052
4,770
(2,831)
29,991
7,821
14,253		 Fixtures,
fittings and
equipment
£
35,582
-
-
35,582
35,582
-
-
35,582
-
-
2026
£
65,248
56,392
121,640

15. DEBTORS

Page 41

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other taxation and social security
Other creditors
Accruals and deferred income		 2026
£
14,116
2,845
69,838
86,799		 2025
£
9,438
15,451
49,070
73,959

Page 42

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

17. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
General unrestricted fund
Unrestricted fixed asset reserve
RESTRICTED FUNDS
Aryaloka - Chhattisgarh
B.H Gujarat
ITBCI
Jan Sahas
Nirman
NISD
Nishtha
Pragya
Urja
Responsible Netism
Future Generation
Green Tara Trust Nepal
REED
Grambangala Unnayan
Committee
Karuna DE
TOTAL OF FUNDS		 Balance at 1
April 2025
£
775,887
230,216
1,006,103
-
14,500
3,000
27,000
-
-
36,709
-
-
-
-
-
-
-
-
81,209
1,087,312		 Income
£
1,805,866
-
1,805,866
108
-
-
89,389
23,550
14,828
83,876
23,835
16,386
54
8,000
45,544
27,000
10,025
16,815
359,410
2,165,276		 Expenditure
£
(1,871,278)
(7,852)
(1,879,130)
(108)
-
(3,000)
(48,858)
(6,750)
(14,828)
(59,989)
(23,835)
(15,386)
-
(7,200)
(33,331)
(17,000)
(25)
(16,815)
(247,125)
(2,126,255)		 Transfers
in/out
£
1,127
10,119
11,246
-
-
-
(1,550)
(1,800)
-
(6,096)
-
(1,000)
-
(800)
-
-
-
-
(11,246)
-

Page 43

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

17. STATEMENT OF FUNDS (CONTINUED)

The specific purposes for which funds are to be applied as follows:

Restricted funds

Aryaloka Chhattisgarh – IT training centre for children from Raipur slums.

BH Gujarat – Funding for a residential educational hostel for earthquake affected children.

ITBCI – Library and visitors’ centre for Tibetan refugee school.

Jan Sahas – Education, livelihoods and prevention of gender based violence.

Nirman – Education and livelihood support for marginalised tribal communities.

NISD – Supporting girls in rural Maharashtra to stay in school.

Nishtha – Supporting girls in rural West Bengal to stay in school and avoid child marriage.

Pragya – Capacity building in agriculture and disaster preparedness for climate change affected communities.

Urja – Funding for a shelter and rehabilitation home for runaway girls in Mumbai.

Responsible Netism – Online safety training for children to prevent online abuse.

Future Generation Nepal – Prevention of child trafficking and exploitation in rural Nepal.

Green Tara Nepal – Funds for a safe birthing centre for mothers in rural Nepal.

Reed – Promoting education for girls in rural Nepal.

Grambangla – Funding for a school for children of waste pickers in Dhaka.

Karuna DE – Match funding payment for BMZ project preventing gender based violence.

Page 44

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

17. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

In the current year, restricted funds have been analysed by individual project to improve transparency. The unrestricted fixed asset reserve has also been split out from general unrestricted funds. Prior year figures have been re-presented on a consistent basis. This change is presentational only and has no impact on total funds or net movement in funds.

UNRESTRICTED FUNDS
General Unrestricted Fund
Unrestricted fixed asset reserve
RESTRICTED FUNDS
B.H Gujarat
Nirman
ITBCI
Jan Sahas
NISD
Nishtha
Pragya
Urja
Future Generation
Green Tara Trust Nepal
REED
Karuna DE
Other restricted funds
TOTAL OF FUNDS		 Balance at
1 April 2024
£
875,496
227,784
1,103,280
14,500
-
-
33,731
-
45,139
-
-
-
-
-
-
-
93,370
1,196,650		 Income
£
1,830,004
-
1,830,004
-
12,035
6,330
55,658
6,898
72,795
3,943
10,684
2,143
37,392
7,530
10,508
44,648
270,564
2,100,568		 Expenditure
£
(1,917,519)
(9,662)
(1,927,181)
-
(12,035)
(3,330)
(62,389)
(6,898)
(81,225)
(3,943)
(10,684)
(2,143)
(37,392)
(7,530)
(10,508)
(44,648)
(282,725)
(2,209,906)		 Transfers
in/out
£
(12,094)
12,094
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Page 45

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
Restricted		 Unrestricted
Restricted		 Unrestricted
Restricted		 Unrestricted
Restricted		 Unrestricted
Restricted		 Total
funds
funds		 funds
2026
2026		 2026
£
£		 £
Tangible fixed assets 221,682
-		 221,682
Intangible fixed assets 10,800 - 10,800
Current assets 798,402
182,248		 980,650
Creditors due within one year (86,799)
-		 (86,799)
TOTAL 944,085
182,248		 1,126,333
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Unrestricted
Restricted		 Total
funds
funds		 funds
2025
2025		 2025
£
£		 £
Tangible fixed assets 230,215
-		 230,215
Current assets 849,847
81,209		 931,056
Creditors due within one year (73,959)
-		 (73,959)
TOTAL 1,006,103
81,209		 1,087,312
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING
19. ACTIVITIES
2026 2025
£ £
Net income/expenditure for the year (as per Statement of Financial
Activities) 39,021 (109,338)
ADJUSTMENTS FOR:
Investment income recognised in statement of financial activities (65,414) (82,845)
Depreciation and amortisation charges 7,852 9,662
Decrease in debtors 29,643 246,818
Increase in creditors 12,840 8,070
NET CASH PROVIDED BY OPERATING ACTIVITIES 23,942 72,367

Page 46

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

20. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash and bank in hand
TOTAL CASH AND CASH EQUIVALENTS		 2026
£
859,010
859,010		 2025
£
779,773
779,773

21. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand At 1 April
2025
£
779,773
779,773		 Cash flows
£
79,237
79,237

22. CONTINGENT LIABILITIES

Karuna Trust had contingent liabilities of £2,014,355 (2025: £1,109,260) for charitable projects at the financial year end. These are contingent liabilities, not contractual but legally defined as donations, and therefore do not appear on The Karuna Trust's Statement of Financial Position and are not included in the reserve calculation. The contingent liability figure is rooted in Funding Agreements - usually of four-year duration - negotiated with The Karuna Trust's partners operating in South Asia. A commitment to funding is matched against operational outcomes, linked to a measurable uplift in the lives of specific numbers of targeted beneficiaries. Quarterly grant payments are contingent on the successful and verifiable achievement of milestones set out in the Funding Agreement.

23. PENSION COMMITMENTS

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £19,245 (2025: £20,955).

The balance in creditors at year end in relation to this scheme was £1,916 (2025: £14,455).

Page 47

THE KARUNA TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

24. OPERATING LEASE COMMITMENTS

At 31 March 2026 the charitable company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2026
£
28,020
28,020
56,040		 2025
£
26,265
-
26,265

25. RELATED PARTY TRANSACTIONS

The charitable company is controlled by the trustees who are all directors of the company.

The Trustees of the The Karuna Trust are also the Trustees for Aid for India.

During the year, management fees of £2,000 (2025: £2,000) were charged by The Karuna Trust to Aid for India. In addition, Aid for India made grants totalling £5,000 (2025: £Nil) to The Karuna Trust during the year.

At the year end, £2,000 (2025: £2,000) of management fees remained outstanding and was payable by Aid for India to The Karuna Trust.

Whilst Karuna USA Inc. and Karuna Deutschland e. V. operate with their own boards of trustees and management they have both signed collaboration agreements with the Karuna Trust enabling them to use some of Karuna Trust's intellectual property under licence.

Page 48