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2023-12-31-accounts

Company Number: 02320712 (England & Wales) Charity Number: 800517

The Directory of Social Change

For the year ended 31 December 2023

The Directory of Social Change Report and Financial Statements for the year ended 31 December 2023

Contents

Message from the Chair

Message from the Chair 1
1. Achievements and Activities 2
8
2. Public Benefit 8
10
3. Regulatory and Administrative Details 10
12
4. Structure, Governance and Management 13
16
5. Finance Review 16
18
6. Strategic Report
 Plans for the Future 18
7. Auditors 18
19
20
22
Statement of Financial Activities 23
Balance Sheet 24
Statement of Cash Flows 25
Notes to the Financial Statements 26 - 42

The Directory of Social Change Report and Financial Statements for the year ended 31 December 2023

Message from the Chair

The challenges faced by the sector in 2022 continued unabated into 2023, with a ramping up of the culture wars, Local Authorities struggling to manage their finances and trusts and foundations facing unprecedented numbers of applications for funds. The year also saw more charity closures, downsizing of services and a huge increase in need from beneficiaries across the sector, all of which continue to reinforce the critical role that charities play in society.

While this all had a considerable impact on our revenue, and despite the additional cost to us, we continued to help the sector navigate its challenges through the provision of more free-to-end user services, such as webinars and advice. So although it was a tough year financially, to the best of our ability we sustained our mission to serve and support the sector.

However, notwithstanding the continued challenge of funding our work, we kept our eye on the future and the board agreed a new set of strategic priorities to further develop our reach, which we outline in this report.

We were also extremely pleased that our annual governance review demonstrated our improved performance, both as a board and a charity in all seven governance code areas. In addition, we were able to extend our conference offering, with new topics around governance, leadership and influencing policy and politicians, all of which were very well received.

Our books proved to be even more popular than ever, with a further eight new or revised print titles, and we were particularly pleased with the performance of our revised Charity Policies and Procedures publication, which provide templates of standard policies for charities to save them having to draft their own from scratch.

Towards the end of the year, we launched a project to enable funders to support their grantees with access to information and training in all areas, especially fundraising and governance. This got off to a very promising start and we expect to see it expand throughout 2024.

Our research team delivered five key research projects covering topics such as: changes in Local Authority Funding to the sector, the extent to which the needs of people affected by HIV in London have changed following the onset of the COVID-19 pandemic; what the available evidence tells us about small grants and small grants programmes; the funding landscape and grant-making support by charities for Armed Forces children and young people; and the annual COBSEO Members’ survey (the membership body for Armed Forces Charities) in addition to our continued partnership with Forces in Mind Trust (FiMT), which funds our research on Armed Forces Charities.

DSC is proud to continue to be a key part of the Civil Society Group, which is a loose collaboration of around 80 infrastructure bodies who work together to influence the sector and government policies. In addition to which our own policy work continued, with key contributions to the Social Media Guidance published by the Charity Commission for England and Wales and briefings on the new draft Code of Conduct for non-party campaigners. We also continued to be members of The Department of Culture, Media and Sport Cost of Living Advisory Board.

A particular shout out to the Jessa Family who continue to support us with their invaluable donations, and to our key partners in the year, including but not restricted to, The Forces In Mind Trust, Armed Forces Covenant Fund Trust, Benefact Group (previously Ecclesiastical), Lloyds Bank Foundation for England and Wales, the National Lottery Community Fund, Sayer Vincent and the Samworth Foundation.

William Butler Chair The Directory of Social Change

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The Directory of Social Change Report and Financial Statements for the year ended 31 December 2023

Report and Audited Financial Statements for the year ended 31 December 2023.

1. Achievements and Activities during 2023

3 we continued to work towards our Strategic

Objectives which underpin this vision:

Equip voluntary sector organisations with high quality services and products that support them.

Promote the value of a vibrant and diverse independent voluntary sector. Connect givers, influencers and social change makers.

An independent DSC, financially robust in self-generated revenue.

-arching aim to increase our overall reach by:

Regional : by increasing our range of services accessible throughout the UK

Expertise : through growing expertise and reaching more beneficiaries with specific and expert help. Digital : through online learning and provision of other information and support.

The activities delivered, which are outlined in the following sections, all contributed to DSC reaching over 35,000 beneficiaries in 2023.

During the year, following a full strategy review, the Board of Trustees set a new group of Strategic Priorities for 2024 and beyond. They are better:

Governance Leadership Fundraising Funding Speaking Out

These priorities shaped some key activities towards the end of the year, and were key to the planning carried out for 2024.

1.1 Regional

DSC undertook a range of activities in 2023 that were specifically aimed at supporting the widest number of charities across England and Wales, irrespective of their geographical location.

1.1.1 In house training

During the year we supported organisations including Bengali Workers Association; Berkshire Multiple Sclerosis Therapy Centre Ltd; Local Trust; Northfield Community Partnership; PEN International; Scripture Union; The Royal Society of Wildlife Trusts; WMCA and Zurich Community Trust.

Popular topics for in-house training delivery continued to be, governance and board development, finance, management development programmes, leadership, personal development and fundraising.

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The Directory of Social Change Report and Financial Statements for the year ended 31 December 2023

In 2023 we continued our work with Benefact Group, organising six webinars. The webinar was free to attend for Benefact customers and other small charities and covered the topics of, fundraising, volunteering, writing applications, challenge events, and impact measurements. The webinars are recorded and available to watch after the webinar has taken place.

1.1.2 Free content

DSC continues to publish a large amount of free content from voluntary sector experts including DSC staff, trainers and authors. We published 125 free content articles in 2023.

features electronic

channels.

We continued to send daily email bulletins (covering policy, news, free top tips and our products and services) to our all of our beneficiaries in 2023, as well as adding consistent conference follow-up emails and occasional marketing to Governance App users, resulting in 52,563 individuals clicking links in those emails.

@DSC_Charity Twitter followers stood at just under 19,800 followers at the end of the year.

In 2023 we did 6 episodes of Charity Questions Podcast which received 855 listens (142 listens on average per episode).

1.2 Expertise

In 2023 DSC undertook a range of activities designed to connect either our own expertise or that of others in the sector, with the charities that most need it.

1.2.1 Public Training Courses

Throughout 2023 we continued to deliver courses live online using a virtual platform, 215 courses were delivered and with over 1400 delegates attending. We are really pleased that we have been able to continue to support charities, and those that work within them, with our training.

We continued to deliver our free to attend DSC virtual online talks, DSC Sector Insights, which are one-hour sessions covering topical and current charity sector challenges. Speakers either from within DSC or invited guests shared their expertise or experience on a particular topic, with participants having the chance to ask questions and engage in conversations.

During 2023 we delivered three talks that covered subjects such as philanthropy, grant reports and community funding. All the talks were free to attend and were attended by over 300 participants.

1.2.2 Conferences

In 2023 DSC organised eight conferences which were all run live online, six of the conferences were one-day events and two were two days. Conferences run were, Going Green; Fundraising Now 2023; The Ultimate Guide to Marketing Your Charity; From Here to Di and The Charity Accountants' Online Conference 2023.

In total over 600 people attended the conferences throughout the year, the most well attended conference being The Charity Accountants Conference which is delivered in partnership with our long-time partners Sayer Vincent. Which was attended by a total of 146 people.

We worked with many people throughout the year to deliver the programme of conferences, which include DSC internal training associates and many guest speakers.

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Some of the guest speakers included:

ACEVO Carla Whalen, Russell-Cooke Catherine Johnstone, Royal Voluntary Service CFG Charity Commission Danyele Higgins, National Trust Dr Sanjiv Lingayah, Reframing Race DSC External Training Associates Edward Garrett, CAF Enver Solomon, Refugee Council Fozia Irfan, Children in Need Grace Da Costa, Quakers in Britain Harriet Lamb CBE, Ashden Henry Swithinbank, Surfers Against Sewage (SAS) Joe Barrell, Eden Stanley Jonathan Bird, Delivered Social Kate Bratt-Farrar, Heart Research UK Kathy Evans, Children England Kunle Olulode MBE, Voice for Change England Louise Parkes, GOSH Lucy Rhodes, Bates Wells Malcolm John, Action for Trustee Racial Diversity UK NCVO Ndidi Okezie, UK Youth Nicole Sykes, Pro Bono Economics Nilesh Pandya, Cripplegate Foundation and Islington Giving Penny Wilson, Getting on Board Radojka Miljevic, Campbell Tickell Rosemary Forest, Bond Sayer Vincent Wanda Wyporska, Black Equity Organisation

1.2.3 Publishing

In 2023 nearly 8,000 copies of titles on the DSC website were sold and distributed to our customers in the UK and beyond in both print and digital formats. It was a year of variety for Publishing with new editions released of established DSC funding guides, core guidance texts and one publication representing a brand-new subject area for us.

T he Guide to UK Company Giving 2023/24 and The Guide to New Trusts 2023/24 were published in the spring and our flagship publication, The Directory of Grant Making Trusts 2024/25 in September all three were in high demand. in February 2023 we also released a new 2[nd] edition of our Charity Policies and Procedures Templates. Instantly popular when published during the COVID-19 pandemic in 2020, for the new edition we added a further 21 new templates to create a complement of 55 oven-ready templates for charities to apply or adapt for their own organisations. Later in the autumn, in October, we brought out a new 6[th] edition of Never out of print since it was first published back in 2002, the new edition was substantially revised by a a new lead author, Elaine Alsop, with expert support from original author Dr Gareth G. Morgan.

An exciting addition to our publishing list in February 2023, Advising Philanthropists, focused on the emerging profession of philanthropic advice and attracted widespread interest not just in the UK but in the US and much of Europe. The new title was written by Emma Beeston and Beth Breeze and was inspired by their well-regarded course at the University of Kent.

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The full list of new print titles from DSC in 2023 in order of publication was:

Advising Philanthropists

1.2.4 Civil Society Group

Since March 2020, DSC has been a major contributor of time and resources to an unprecedented collaboration between charity infrastructure organisations called the Civil Society Group ( CSG ). The CSG is supported by over 80 representative and membership bodies across the sector and its strategy has three themes:

Throughout 2023

and communications staff. DSC staff regularly chaired meetings, organised agendas and minutes, and authored or helped produce policy proposals and briefings. This has involved substantial and dedicated time by senior staff and trustees over an extended

The CSG is planning further work for 2024, in anticipation of a General Election at some point before January 2025.

1.2.5 Policy and public affairs

During the year DSC continued to respond to formal consultations and policy announcements affecting charities, particularly concerning the Charity Commission. Our Policy Principle of Responsible Regulation holds that the regulation of charities should be proportionate, appropriate and enabling, and we stressed these principles in relevant responses and communications.

response focused on practical ways to improve the draft that had been released earlier in the year, and we encouraged others to take part, including via the Civil Society Group. In September the Charity Commission released a revised version of the guidance and which clearly took on board the substantial feedback received from the sector and made many positive changes, including

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things that DSC recommended. The final version is more realistic in its expectations of trustees and more practical about what they need to put in place in terms of policies and procedures around social media.

In the autumn we assessed the regulatory environment for charities in light of the coming General Election. This included analysing the new draft Code of Conduct for non-party campaigners, which was approved by Parliament and then put in force by the Electoral Commission in December. We wrote a briefing article for the DSC website on the latest developments and updated delegates at

artic We know that many colleagues value our concise, freely available articles which cut through dense policy material to explain implications for charities.

ant

contribute content on the regulatory and policy environment for charities for the DSC website and in Civil Society Media.

1.2.6 Research on Armed Forces Charities

2023 marked the

site.

We have also completed several other related research projects for FiMT over the years.

Sector Insight: Armed Forces Charities 2020 , remains the definitive guide to that particular sub-sector of charities, and feedback shows that it continues to be used by senior policy- Focus On series of eight reports provide topical analysis on areas of charitable provision by Armed Forces charities, which continue to be downloaded and Sector Insight Armed Forces Charities , which is scheduled to be published in early 2024.

During 2023, DSC undertook a survey of Cobseo member organisations to provide up to date insight into how the cost-of-living e survey report was published on the DSC website, along with the accompanying which allow users to generate additional insights and graphics on survey response data.

-wide online Interactive Database of all Armed Forces Charities continued to be updated each month during 2023, providing regular analysis of key data on Armed Forces charities. Users can undertake custom searches and create tailored graphs to visualise the sector in different ways. We understand this has been used at Cabinet Office level and has become a definitive evidence tool to support strategic work on the Armed Forces charities sector.

The ongoing partnership with FiMT continues to be strategically important for DSC, and our expertise in this area has had a demonstrably positive impact on the sector.

1.2.7 Commissioned Research

DSC has a track record of providing high-quality impact evaluations, strategic reviews, data analyses, surveys, and other research consultancy for clients. During 2023 DSC successfully delivered five research projects, which had been planned or funded prior to 2023. These projects included:

Grants for Good: Exploring local authority grant-making to the VCSE sector (DSC, 2023). This research explored local authority grant-making to the VCSE sector, providing the clearest picture to date of the level of local authority grantmaking to the Voluntary, Community and Social Enterprise (VCSE) sector in the UK.

London's HIV voluntary and community sector: Responding and rebuilding after Covid-19 (FTCI Fast Track Cities Initiative, 2023). This report presents new research investigating the extent to which the needs of people affected by

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1.3 Digital

2023 saw DSC continue to extend its digital reach in a number of areas, increasing the help that we are able to offer online, and delivering information support in formats that are easier to access for a range of our beneficiaries.

1.3.1 Digital Publishing

We further extended the number of titles available in dual print and digital platforms. Most of our titles are now available digitally either as Kindle titles through amazon.co.uk or as viewable pdfs and epub formats through both www.dsc.org.uk and www.kortext.com. In 2023 we produced the following e-publications in digital formats from brand new books:

Charity Policies and Procedures Templates (2[nd] edition)

The Guide to New Trusts 2023/24

For our beneficiaries who may be sight impaired we provide our printed publications in scalable pdf format or e-pub formats to aid readability. Where they are not for sale on our website as part of our standard offering, they can be requested through our customer services department.

1.3.2 Funding websites

In 2023 Funds Online supported thousands of our beneficiaries looking for funding information.

The platform provided detailed funding entries from four main datasets to subscribers, made up of funding from trusts giving a combined total of £4.9 billion, companies giving £330 million in cash and in-kind contributions, £2.4 billion in funding from local, regional and central government and £383 million in funding to individuals for social welfare, education and training.

There was also significant progress made to improve functionality for subscribers, including enhanced search results and details of when entries had been last been updated. Internal processes were also reviewed and upgraded, which enabled our research team to significantly increase the speed in updating funder records. This increase in frequency, meant that those subscribers with saved funders and searches in their Dashboard received emails even more updates on funders. The dashboard allows subscribers to track activity, new funding opportunities, saved funders while also uploading documents including applications, enabling all information to be stored in one place.

Our monthly webinars delivered by our fundraising trainer, focused on highlighting the key features and benefits of the platform remained a popular and hugely beneficial addition to the platform.

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1.3.3 DSC website www.dsc.org.uk

The user profile facility of our main website is an area where users register and set up their own space to download and store information including a range of free factsheets, downloadable publications, presentations, brochures and policy briefings.

At the end of 2023 we had approximately 24,500 registered users. Free downloads totalled 17,923 in the year (11,400 not including Look Insides).

1.3.4 Governance App

The Governance App continued to provide a simple and free way for Boards of trustees to assess their performance against the key elements of the Charities Governance Code. During 2023, 3,760 trustees from 1,412 organisations used the app to review their performance.

In 2023, with support from the National Lottery Community Fund, we launched new functionality enabling organisations to generate automatic reports and benchmark themselves against their previous reviews.

1.3.5 An independent DSC, financially robust in self-generated revenue

DSC generated 99.5% of its own funds in 2022 (2022 99.9%), the balance of 0.5% being provided by donations. There was a decrease in generated income of 11% to £1,448,243 from £1,627,759 in 2022.

Despite the current socio-economic issues facing UK, there was a further decrease in the defined benefit pension scheme deficit. The current value of the defined benefit pension scheme provision for 2022 was £3,118 (2022: £5,864).

In addition to the support we continue to receive from having taken the CBILS loan in 2020, we also continued to take advantage of the HMRC payment plans available for PAYE and VAT.

We invested in some new IT projects which were started in 2021. These projects covered changes and developments being made to improve our internal customer data managements and financial data. At the end of 2022 these projects had been completed and were b reserves and were with the aim of increasing the reach of DSC to its beneficiaries, and improving the support we provide to our beneficiaries.

Commissioned research has continued to bring in material income of £32,714 in 2023 (2022: £80,288) derived from a range of projects, including the Armed Forces Covenant Research. Our continuing experience with these types of projects provide a good record for developing these research income generating activities in the future.

2. Public Benefit

The Charitable Company has complied with the guidance on public benefit requirement in accordance to Section 17 of the Charities Act 2011.

at an be to

the public or a section of the public.

jects of The Directory of Social Change include the promotion and advancement of education and the promotion of efficiency and efficacy of other charities. It achieves this through its educational publishing, courses, conferences, exhibitions and electronic websites. In pursuing these objectives, the Trustees are mindful of and strive to achieve ways of minimising the impact of its activities and products on the environment.

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Although DSC aims principally to serve the charity sector, we also provide services to the wider not-for-profit sector and grade our level of charges specifically so as to remain affordable to smaller charities with limited resources.

In addition, we continued to make a number of facilities available free to our beneficiaries during the year.

2.1 Free content

Of the 35,000 people DSC reaches every year, by far the majority of them access our free services, information and advice.

This support includes:

maintain them.

This includes:

The Governance App:

Some of our more in-depth and expert-level support, which most people pay a fee for, are also available for free via intermediaries:

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The Directory of Social Change Report and Financial Statements for the year ended 31 December 2023

2.2 Publications

For those with severe mobility difficulties without access to a computer, we provide a free copy of our publication The Guide to Grants for Individuals in Need . Our website www.grantsforindividuals.org.uk can also be accessed free of charge by visitors to those public libraries that subscribe to the service.

For our beneficiaries who may be sight impaired we provide our printed publications in scalable pdf format or mobile and e-pub formats to aid readability. Where they are not for sale on our website as part of our standard offering, they can be requested through our customer services department.

3. Regulatory and Administrative Details

3.1 Regulatory Compliance Statements

The Directory of Social Change is registered in England and Wales as a company limited by guarantee (without share capital) with number 02320712 and as a charity no. 800517.

The Trustees are also the Directors of the Charitable Company for the purposes of the Companies Act. The Trustees in presenting their annual report and financial statements for the year ended 31 December 2023 for the Charitable Company confirm that they (effective 1 January 2017) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006

3.2 Who we are

Established in 1975, The Directory of Social Change (DSC) campaigns for an independent voluntary and community sector. DSC is the largest provider of information and training to the UK voluntary and community sectors.

The main activities of the organisation include:

Championing the needs of small and medium voluntary sector organisations

Visit our website for more information at www.dsc.org.uk

3.3 Where we are

DSC has its vacated its office in 2023 at its Liverpool premises, all of our staff work remotely. Our registered address is. c/o BWB, First floor 10 Queen Street Place London , EC4R 1BE E-mail: cs@dsc.org.uk

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The Directory of Social Change Report and Financial Statements for the year ended 31 December 2023

3.4 Trustees:

The following individuals acted as Trustees throughout the year and to the date of this report, except where otherwise stated: William Butler, Chair Third Sector Consultant Michaela Clark (appointed 20 November 2023) Capacity Building Manager, MK Community Foundation Joyce Fraser Chair, Black Heroes Foundation Matthew Hill Associate Director of IT, ReThink Mental Illness Emily Hughes Head of Volunteer Experience, Girlguiding, Trustee Garry Jones (appointed 20 November 2023) CEO, Support Staffordshire Anneka Kapadia (resigned 24 January 2024) Policy and Programme Officer, Greater London Authority Lizzie Kenyon Director of Services, Keep Britain Tidy Phyllida Perrett (resigned 24 January 2024) Third Sector Consultant Andrew Purkis OBE Charity Chair and Trustee, school governor and blogger Kashif Shabir (resigned 13 February 2023) CEO, Muslim Aid Dhillon Shenoy (appointed 20 November 2023) Student and Volunteer Nasrullah Tahir (appointed 20 November 2023) Head of Global Development, The Citizens Foundation Lesley Thornley Ex Chief Executive, Hull & East Riding, CAB Andrew Townend (appointed 20 November 2023) Chief Operating Officer, AfriKids

3.5 Chief Executive, Company Secretary and Senior Management:

Chief Executive

Chief Executive Debra Allcock Tyler Company Secretary Harry Wrafter (Appointed 25 January 2023)

The Senior Leadership Team during 2023 comprised:

Debra Allcock Tyler Chief Executive Ben Wittenberg Director of Development and Delivery Jay Kennedy Director of Policy and Research Annette Lewis Director of Services Yvonne Coleman Director of Finance and IT

3.6 Auditors, Bankers and Solicitors

Auditors:

Simpson Wreford & Partners 3rd Floor Suffolk House George Street Croydon CR0 0YN

Bankers:

National Westminster Bank Plc National Westminster Bank Plc PO Box 224 6 Grange Road West 9 The Broadway Charing Cross Stanmore Birkenhead Middlesex HA7 4XW Merseyside CH41 4DF

Solicitors:

Bates Wells & Braithwaite London LLP 10 Queen Street Place London, EC4R 1BE

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3.7 The Regulatory Environment

The regulatory environment within which DSC operates is considered to be the following:

Finance and Accounting

The Companies Act 2006

Human Resources

Employment Law

Operational Matters

Data Protection Legislation

Maintaining awareness of legislative and regulatory changes

-newsletters, updates and provide webinars on topical subjects.

DSC also receives updates from firms of accountants and solicitors with whom it has professional relationships.

A number of members of staff have professional qualifications whose professional institutes provide updates and information to their members. These organisations include The Chartered Institute of Personnel and Development, The Chartered Association of Certified Accountants.

Being a training organisation many of the trainers bring their professional expertise to bear and enable courses, training session and webinars to be put on by DSC and from which the organisation itself benefits.

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4. Structure, Governance and Management

4.1 Governing Document and Constitution

The Directory of Social Change is registered as a company limited by guarantee (without share capital) and as a charity. Its governing instrument is its Memorandum and Articles of Association last revised on 15th December 2004. All the Members of the Charitable Company are Trustees and undertake to contribute to its assets in the event of it being wound up while s/he is a member, such amount as may be required not exceeding £1. All the Trustees are also Directors of the Charitable Company for the purposes of the Companies Act.

4.2 Trustees Appointment, recruitment, training and induction

All Trustees are unremunerated and are voluntary. Trustees are appointed by resolution of the Trustees. At each Annual General Meeting one-third of the Trustees are subject to retirement by rotation but may offer themselves for re-election. No person other than a Trustee retiring by rotation may be appointed or re-appointed a Trustee at any general meeting of Trustees unless he or she is recommended by the Trustees.

Training of Trustees is given on new legislative issues affecting charity trustees and directors as needed. As a training organisation Trustees also have the right to attend any of DSC's courses as part of their duties to ensure that products being offered are within the objects of the organisation and of appropriate quality.

There is a specified Trustee Recruitment Policy and Procedure which outlines clearly our approach to recruiting trustees and has been amended to ensure it reflects diversity and inclusion.

There is a defined procedure for the induction of Trustees, which includes the provision of a detailed information pack upon each appointment which covers introduction to fellow Trustees, the leadership team and staff with organisation chart; Memorandum and Articles of Association; the history of the organisation, its objectives and policies, its work and products; recent Trustees minutes of meetings; the latest audited Trustees Report and Financial Statements; information on the role and responsibilities of a Trustee, access to training where required and a buddy system where existing trustees mentor new ones.

Annual Governance Review

available to any charity

that wants to carry out a free and comprehensive review of their governance against key elements of the Charity Governance Code.

There were a number of key highlights from the 2023 governance review, especially when compared with the results from the 2021 review. With the average scores improving in six of the seven governance areas:

----- Start of picture text -----
Section average scores 2023 2021
Organisational purpose 8.7 8.4
Integrity 9 8.8
Leadership 9 8.5
Board effectiveness 8 8.5
Equality, diversity and inclusion 7.7 7.5
Openness and accountability 7.7 7
Decision-making, risk and control 8.6 8.2
Average 8.4 8.1
----- End of picture text -----

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The overall average of all responses (trustees and executive) to all 70 Governance App questions increased from 8.1 in 2021, to 8.4 in 2023, and scores improved in 40 areas since the 2021 review. The top 20 scoring questions averaged 9.4 in 2023, up from 9.1 in 2021, and the lowest scores were higher with the lowest 20 scoring questions averaging 7.5 in 2023, up from 7.0 in 2021.

The range of responses and areas of improvement were discussed at the July Board meeting, with actions being fed into the

4.3 Organisation Structure and decision making

A voluntary Board of Trustees is responsible for the overall management and direction of the Charitable Company. The Board meets four times a year and at any other time as circumstances dictate.

The Board also has a number of working groups that consist of trustees and staff which focus on particular areas of interest. These h specific issues as and when needed. Others are more long-standing. The current working groups are: Wellbeing, Equity, Equality, Diversity and Inclusion; Policy; and one that meets between the main board meetings for general update on progress. Financial matters are dealt with by the Board as a whole.

A Senior Leadership Team meets monthly and reports to the Trustees. The members of the group are shown under section 3.5 above. The day to day running of the charity is delegated to the senior leadership team.

4.4 Relationships with other charities, organisations and individuals

We work with a very wide range of organisations. We are very grateful to all the members of the Civil Society Group who we worked alongside during the year.

We would also like to thank the following partners and sponsors for their support during 2023:

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4.5 Risk

We monitor risk on an ongoing basis and we examine three areas:

  1. Specific risks which are current e.g. daily cash flow

  2. e.g. decline in revenue streams, IT failures

  3. Unpredictable, large risks e.g. pandemics, collapse of the economy.

The Executive look at risk as part of normal monthly reporting. Trustees are updated quarterly.

Current areas of specific risk:

Charity closures due to rising inflation and the energy crisis impacting revenue streams

Actions taken to mitigate these risks are:

Live financial and operational information is reviewed weekly by the Executive Team

General risks:

These might include matters such as failure or poor performance of a specific product; damage to reputation from a specific instance of poor delivery or customer service, or a failed partnership that damages reputation or ability to deliver other services.

Actions taken to mitigate these risks are:

Risk management has been integrated into our monthly management reporting, with a clear assessment and escalation process. Managers are accountable for identifying and communicating risks in their own areas of the business. Following the monthly management reports, discussions about mitigating action with regard to any risk needing attention takes place either at the Leadership Team meeting, or with the relevant Senior Leader.

Specific Board Working Groups are set up to monitor high risk investments or projects eg, IT, as and when required.

Unpredictable, large risks:

Risks that emerge or occur quickly are assessed and referred immediately (along with a planned response where appropriate) to the relevant member of the senior leadership team.

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DSC adopts the Charity Finance Group approach to managing risk which is to identify current operational risks, emerging longer term risks and mitigating actions on a monthly basis as part of general management practices and trustees discuss this at quarterly board meetings.

Risks are reviewed by the Trustees from time to reflect the need to keep particular items under review, but also to respond to new or existing risks that are given public prominence concerning charities generally.

5. Finance Review

In 2023 DSC generated 99.5% of its own funds (2022 99.9%), the balance of 0.5% being provided by donations. The self-generated income arises through the sales of our books, websites, training, research services and events.

Overall charitable income in 2023 was £1,448,243 compared to £1,627,759 in 2022, a change of 11% from 2022 (2022: a 4.5% change from 2021). Income from publications, subscriptions and research has reduced by 18.4% compared to a reduction of 8.9% in 2022. Although there was a decrease in income from publications and dissemination of information including research projects, we continue to hold our online and face to face training programmes which have continued to be a success and have reflected in the 2023 training and events income increasing by 4.7% from 2022. (2022: an increase of 6.2% on 2021)

Expenditure on unrestricted activities was 1,437,051 in 2023 compared to £1,532,261 in 2022, a decrease of 6.2% (2022: 4.3% decrease compared to 2021), while expenditure on restricted activities decreased by 31% to £148,493 from £215,675 in 2022.

During the year our lease for our premises in Liverpool came to an end and it was decided not to have this renewed, this reduced our office and premises costs in 2023, although there were some dilapidation costs of about £6,000. The non-renewal of this lease will continue to save us a cost of about £31,000 annually. There were also reductions of 12.1% in governance and modest reduction of 1.5% in staffing costs.

In 2023 we have continued to adopt the policy of holding regular Board Working Group meetings to monitor the financial situation on a regular basis. This strategy has continued to pay off as decisions could be made rapidly as needed. In 2023 we have continued to hold regular Audit Board Working Group meetings, this was set up in 2022 to provide oversight on controls, risk management and financial reporting in the year and this is reflected in the Governance costs of £68,291 in 2023, (2022: £77,729). The analysis is shown in Note 6 to the Accounts.

We were able to complete the Forces in Mind (FiMT) grant activity in addition to other grant projects, thus at the end of 2023 we had no restricted reserves. (2022: £148,493).

There has been a 35% decrease in current assets in 2023 compared 2.5% decrease in 2022, and a 1.4% decrease in total liabilities (2022: 12.6% decrease). Overall, we had a 46.4% decrease in net assets in 2023 (2022: 3.4% decrease).

5.1 DSC Earned Income

We continue to work closely with a wide range of individuals and organisations, while at the same time ensuring that we are not financially dependent on any single funder, purchaser or provider for our operational programme. We received donations of £7,072 in 2023 (2022 - Nil).

Our financial structure enables us to continue to be independent, flexible and free to comment without fear or favour. This is a core value for us.

16

The Directory of Social Change Report and Financial Statements for the year ended 31 December 2023

5.2 Remuneration Policy

The overall policy on remuneration within DSC is as follows:

Trustees are voluntary and not remunerated. Out-of-pocket expenses paid to trustees are shown as part of Note 6 to the Financial Statements.

Executive Officer is specifically agreed by the Trustees following a performance assessment and recommendation by the Chair to the Trustees.

Staff remuneration is reviewed as an important but separate element of the annual budget process.

Each year the salary budget for the ensuing year is considered at a Trustees Board Meeting based on proposals put forward by the Senior Leadership Team and takes account of the cost of living, individual performance assessments and the need to retain the most appropriate staff for each post in the expected economic climate for the ensuing year. DSC has a clear and concise salary policy.

5.3 Reserves

Currently when determining the reserves position for the forthcoming year the Board considers whether the resources available for use in the planned activities of the Charitable Company within the year are sufficient before determining what should be the appropriate level of reserves for that particular year. During the year under review Trustees agreed that the medium to long term goal is to increase the level of unrestricted free reserves, as funds allow.

The full Board considers the reserves position of the Charitable Company on a quarterly basis when reviewing the management accounts with an analysis of the results by activity and the forecast results for the coming quarters; together with a review of management of debtors, statistical management indicators and cash flow analysis and forecasts.

In any one year, we may earmark Unrestricted General Funds for a particular project or to use as Designated Funds. The reasons for the setting up of such funds, the policy for any transfers between funds, and allocation to or from designated funds, will be stated in the notes to the accounts.

Funds are designated to an amount equal to the sum represented by the net book value of Fixed Assets comprising leasehold improvements, furniture and fittings and computer equipment. Our Designated Funds are reviewed annually.

Trustees continue to believe that the current policy of managing resources generally rather than just reserves in isolation is the right course to adopt in the current economic climate, however, this decision is continually reviewed including the ongoing level considered acceptable.

Total unrestricted reserves at the end of 2023 were £149,970 (restricted reserves were £Nil) and the Trustees are working to increase this level in 2024.

5.4 Investment Policy and Performance

At the Balance Sheet date, the Charitable Company only held cash investments. The Bank of England base rate was 3.5% from the beginning of 2023 rising to 5.25% by the end of December 2023.The continuing national policy of holding rates at such a low- level means that it is not viable to manage the movement of funds between current and investment accounts. All funds during 2023 were held on current account. Income generated in 2023 amounted to £538 (2022 - £61).

17

The Directory of Social Change Report and Financial Statements for the year ended 31 December 2023

5.5 Fundraising

The Charitable Company has not made any fundraising appeals to the general public during the year and is unlikely to do so in the future. Fundraising focusses on securing grants and donations from registered charities and business links. There has been no outsourced fundraising via professional fundraisers or other third parties. Consequently, the Charitable Company is not registered with the Fundraising Regulator and received no fundraising complaints in the year.

5.6. Restricted Funds

To the extent that Restricted Grants are liable to be returned to Grant Providers where they are unspent and it is not intended that they be spent, there was no grant due to be returned at 31 December 2023 (2022: £Nil).

6. Strategic Report - Plans for the Future

During 2023 the Trustees revisited the organisational strategy and decided that the overall aim of increasing reach remained unchanged but that the charity would target its resources at helping the sector to improve its governance, fundraising, leadership, voice and how funders do their work.

7. Auditors

The auditors, Simpson Wreford & Partners have been appointed in accordance with section 485 of the Companies Act 2006.

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the Trustees on

and signed on their behalf, by:

William Butler Chair

Lesley Thornley Trustee and Chair of Audit Board Working Group

18

The Directory of Social Change

For the year ended 31 December 2023

The Trustees (who are also directors of The Directory of Social Change for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company 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 charitable company's transactions and 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 charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

So far as each of the Trustees is aware at the time the report is approved:

19

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE DIRECTORY OF SOCIAL CHANGE

For the year ended 31 December 2023

Opinion

We have audited the financial statements of The Directory of Social Change (the for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, and the Cash Flow Statement and notes to the financial statements, 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable 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 of the trustees, other than the financial statements and our 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.

Opinion on other matters prescribed by the Companies Act 2006

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

20

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE DIRECTORY OF SOCIAL CHANGE

For the year ended 31 December 2023

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 19, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed auditor under the section 151 of the Charities Act 2011 and report in accordance with that Act.

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 a Report of the Independent Auditors 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:

21

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE DIRECTORY OF SOCIAL CHANGE

For the year ended 31 December 2023

Due to 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

John Millidge (Senior Statutory Auditor)

for and on behalf of Simpson Wreford & Partners, Chartered Accountants & Statutory Auditors Suffolk House, George Street, Croydon, CR0 0YN

3 May 2024

22

The Directory of Social Change

Statement of Financial Activities (incorporating the Income and Expenditure Account)

For the year ended 31 December 2023

Note
INCOME FROM
Donations and legacies
2
Charitable activities
3
- Training and events
- Publications
Investments
Total income
EXPENDITURE ON
Charitable activities
5
- Training and events
- Publications
Net income / (expenditure)
Transfers between funds
NET MOVEMENT IN FUNDS
Total funds at 1 January 2023
Total funds at 31 December 2023		 Restricted
Funds
2023
£
-
-
-
-
-
-
140,592
140,592
(140,592)
(7,901)
(148,493)
148,493
-		 Unrestricted
Funds
2023
£
7,072
547,346
900,897
538
1,455,853
538,730
906,221
1,444,951
10,902
7,901
18,803
131,167
149,970		 Total
Funds
2023
£
7,072
547,346
900,897
538
1,455,853
538,730
1,046,813
1,585,543
(129,690)
-
(129,690)
279,660
149,970		 Total
Funds
2022 (as
restated)
£
2,002
522,571
1,105,188
61
1,629,822
491,763
1,156,628
1,648,391
(18,569)
-
(18,569)
298,229
279,660

All amounts are from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year. There is no other comprehensive income in the year, or in the previous year.

The notes on page 26 - 42 form part of these financial statements.

23

The Directory of Social Change Balance Sheet

Registered number: 02320712 Charity number: 800517

For the year ended 31 December 2023

2023 2022 (as restated) 2022 (as restated)
Note £ £ £ £
FIXED ASSETS
Tangible assets 11 6,326 10,874
Intangible assets 12 282,186 118,299
288,512 129,173
CURRENT ASSETS
Stock 13 430,200 577,310
Debtors 14 81,705 256,849
Cash at bank 30,574 6,830
542,479 840,989
CURRENT LIABILITIES
Creditors: amounts falling due within one year 15 (632,856) (607,591)
NET CURRENT ASSETS (90,377) 233,398
Creditors:amounts falling due after more
than one year 15 (48,165) (82,911)
NET ASSETS 149,970 279,660
CHARITABLE COMPANY FUNDS
Restricted funds - 148,493
Unrestricted - designated funds 17 6,326 10,874
Unrestricted - general funds 17 143,644 120,293
149,970 279,660

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

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

were signed below on

William Butler Lesley Thornley Chair Trustee and Chair of Audit Board Working Group

The notes on page 26 - 42 form part of these financial statements.

24

The Directory of Social Change Statement of Cash Flows

For the year ended 31 December 2023

Cash flows from operating activities
Net deficit for the year
Amortisation of intangible assets
Depreciation of tangible assets
Interest receivable and similar income
Decrease / (increase) in stock
Decrease in debtors
Decrease / (increase) in creditors
Net cash generated from / (used in) operating activities
Cash flows from investing activities
Interest income
Purchase of tangible assets
Purchase of intangible assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
Analysis of net debt 2023
Cash at bank and in hand
Bank loan		 At
1 Jan 2023
£
6,830
(112,000)
(105,170)		 2023
£
(129,690)
47,177
4,548
(538)
147,110
175,144
22,519
266,270
538
-
(211,064)
(210,526)
(32,000)
(32,000)
23,744
6,830
30,574
Cash
Flows
£
23,744
32,000
55,744		 2022 (as
restated)
£
(18,569)
105,473
3,480
(61)
(152,257)
91,261
(79,131)
(49,804)
61
(668)
-
(607)
(32,000)
(32,000)
(82,411)
89,241
6,830
At
31 Dec 2023
£
30,574
(80,000)
(49,426)

25

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Statement of compliance

The financial statements have been prepared in accordance with current statutory requirements, the requirements of the Charitable Company's governing document and the provisions of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102 (second edition), the Financial Reporting Standard applicable in the UK and Republic of Ireland the Companies Act 2006.

The Directory of Social Change 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 note(s).

Company Status

The Directory of Social Change is registered in England and Wales as a company limited by guarantee (without share capital) no. 02320712 and a charity no. 800517. Its governing instrument is its memorandum and articles of association. The members of the charitable company are the trustees named on page 11. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company. The Charity's registered office is First Floor, 10 Queen Street Place, London, EC4A 1BE.

Preparation of accounts on a going concern basis

DSC had a difficult financial year in 2023, but at all times, Trustees were kept fully aware of the financial situation, how the economy was impacting the charity and how our cash was being managed. The evidence with which the charity were presented, and the prompt actions taken by the Executive Team to address the negative financial trends enabled the charity to continue to have confidence that DSC could continue to operate and that 2024 showed signs of improvement.

In addition to updates from the Executive Team, the Trustees assess risk as part of normal practice, and in order to ensure that the charity continues to be a going concern and will continue its operations for the foreseeable future, the Trustees review monthly management account forecasts and cash flow forecasts every 6 weeks. The Trustees also review the cash flow forecast prepared recast also identifies to the Trustees any potential low cash months and high cash months.

In addition, in the Autumn of 2023 the charity fruit and the charity has signed new contracts for delivery of more of these projects during 2024. The end of the charity's financial year is usually the lowest period of the its performance. Nonetheless the charity ended 2023 ahead of budgeted cash flow which translated into a better cash flow position for the start of 2024.

The financial information provided by the Executive Team indicates that the first quarter of 2024 has performed in line with expectations and that the future performance is currently predicted to do better than expectation. The cash position has improved in the first quarter and is forecasted to continue on its current trajectory over the next twelve months in line with expectation and improved income generation.

As is practice, forecasts and month end reports against budget, prepared by the Executive Team, include operational detail and -week intervals between board meetings by the Generic Board Working Group during the year to ensure that the financial performance and the charity's activities reflect the latest information. This regular oversight allows Trustees to assess risk areas and decide on actions to take to mitigate any identifiable risks in a timely way.

26

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

Income is expected to meet budget for the year overall based on our monthly forecasts which analyse booking trends and buying patterns. The expenditure is additionally carefully monitored to ensure that the cash balances are anticipated and properly dealt with in terms of timing and amounts.

Therefore, having carefully reviewed the financial forecast, cash flow forecast and performance to date for the current year for at least a period of twelve months from the date of approval of the financial statements, including expected income and anticipated expenditure, the trustees consider that there are no material uncertainties regarding going concern and therefore that the financial statements are appropriately prepared on the going concern basis.

Significant judgements and sources of examination uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Charity's accounting policies. The key judgements that have been applied by management relate to:

Income

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

Donations and legacies

Donations and gifts and are included in full in the Statement of Financial Activities when there is entitlement, probability of receipt and the amount of income receivable can be measured reliably. Gift Aid received or receivable in respect of donations is included where applicable.

Gifts in kind

Gifts in kind represent assets donated for distribution or use by the charity. Assets given for distribution are recognised as income only when distributed. Assets given for use by the charity are recognised when receivable. Gifts in kind are valued at the amount actually realised from the disposal of the assets or at the price the charity would otherwise have paid for the assets.

Grants

Grants are recognised in full in the statement of financial activities in the year in which the charity has entitlement to the income, the amount of income receivable can be measured reliably and there is probability of receipt.

Income from charitable activities

Income from charitable activities is recognised as earned as the related services are provided. Income from other trading activities is recognised as earned as the related goods are provided.

Subscription income

Subscription income is recognised on a straight line basis over the subscription term. This results in deferred income within creditors (refer Note 16).

Investment income

Investment income is recognised on a receivable basis once the amounts can be measured reliably.

27

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead support costs and are apportioned based on turnover as follows:

Allocation of costs

Staff costs are allocated between direct charitable expenditure and support costs based on the time spent on these activities. Other costs are allocated directly to the relevant heading.

Operating leases

Rental charges are charged on a straight-line basis over the life of the lease.

Intangible Fixed Assets

Intangible fixed assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

Software development costs are recognised as an intangible asset when all of the following criteria are demonstrated:

Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight-line method. During the year, the directors reviewed their estimate of the useful economic lives, and consequently they were extended from 4 years to 8 years. The intangible fixed assets are amortised over the following useful economic lives:

Software development costs 8 years

28

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

Tangible fixed assets

Fixed assets are stated at cost or deemed cost (donated valuation at estimated fair value) less accumulated depreciation and impairment losses. Assets costing more than £500 are capitalised.

Depreciation is calculated to write off the costs of the fixed asset by equal instalments as follows, all straight line:

Leasehold improvements 41 months, straight line (the life of the lease) Furniture, fittings and equipment 5 years straight line Computer equipment 4 years straight line

Financial instruments

The charity 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.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Debtors

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

Cash at bank and in hand

Cash at bank and cash 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.

Stock

Stocks are valued at the lower of cost and net realisable.

Publications

Book stocks and work in progress on forthcoming books are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes, in the case of books and publications produced by the charitable company, production costs and applicable overheads as reduced by the amount of any grant receivable; in the case of books bought in from other publishers, purchase cost only is included. A provision has been made for slow-moving items on the basis of expected future sales.

Subscription websites

The work in progress relates to the subscription websites for re-saleable items. Cost includes staff costs and associated overheads, which are amortised over the annual life of the subscriptions. This is continued on a rolling basis as the subscription websites are continually updated.

29

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

Electronic work-in-progress

The Work-in-Progress relates to work on the Funding Online website, live streaming work, and work for on-line learning. Cost includes staff costs, associated overheads and third-party supplier costs as incurred for these developments. Once live these will be amortised over 8 years.

Funds

Unrestricted funds are donations and other income receivable or generated for the objects of the charity.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor or trust deed.

Employee benefits

Short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits

Termination benefits are accounted for on an accrual basis and in line with FRS 102.

Pension scheme

The Directory of Social Change operates a defined benefit pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of The Directory of Social Change in an independently administered fund.

The pensions costs charged in the financial statements represent the contributions payable during the year. There was also a defined benefit pension scheme which was closed to new contributions on 30 September 2013. Further information is provided in note 10.

30

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

DONATIONS AND LEGACIES
Donations
INCOME FROM CHARITABLE ACTIVITIES
Training and events
Publications and dissemination of information		 Total
Funds
2023
£
7,072
Total
Funds
2023
£
547,346
900,897
1,448,243		 Total
Funds
2022
£
2,002
Total
Funds
2022 (as
restated)
£
522,571
1,105,188
1,627,759

2. DONATIONS AND LEGACIES

3. INCOME FROM CHARITABLE ACTIVITIES

Income from publications and dissemination of information includes restricted grant income of £Nil (2022: £157,208) relating to research projects. Further details are provided in note 17.

4. OTHER INCOME

There was no other income in the year or in the prior year.

5a ANALYSIS OF EXPENDITURE
Training and events
Publications and dissemination of information		 Staff
Costs
£
390,124
636,518
1,026,642		 Amortisation
& Depreciation
£
19,656
32,069
51,725		 Other
Costs
£
54,901
257,409
312,310		 Support
Costs
£
74,049
120,817
194,866		 Total
Costs
£
538,730
1,046,813
1,585,543

The staff costs for each expenditure type shown above comprise the staff costs from each charitable activity, together with the staff costs allocated to activities as part of governance costs and support costs as detailed in Notes 6 and 7 respectively.

31

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

5b COMPARATIVE ANALYSIS OF EXPENDITURE (2022)

Training and events
Publications and dissemination of information		 Staff
Costs
£
329,140
699,421
1,028,561		 Amortisation
& Depreciation
£
34,865
74,088
108,953		 Other
Costs
£
58,831
236,648
295,479		 Support
Costs
£
68,927
146,471
215,398		 Total
Costs
£
491,763
1,156,628
1,648,391
GOVERNANCE
Staff costs
Other costs
Audit and accountancy		 Total
Funds
2023
£
47,741
1,850
18,700
68,291		 Total
Funds
2022
£
48,181
10,018
19,530
77,729

6. GOVERNANCE

During the year, no Trustees received any remuneration (2022: £Nil) or any benefits in kind (2022: £Nil).

During the year 2 Trustees were reimbursed £151 for out-of-pocket expenses for travel and subsistence (2022: 2 Trustees were reimbursed £176).

7a SUPPORT COSTS ALLOCATED TO ACTIVITIES
Training and events
Publications and dissemination of information		 Staff
Costs
£
20,533
33,501
54,034		 Office
Costs
£
18,747
30,588
49,335		 Premises
Costs
£
8,818
14,388
23,206		 Governance
Costs
£
25,951
42,340
68,291		 Total
Costs
£
74,049
120,817
194,866

Support costs are the costs of central management. These costs are apportioned to activities based on total and direct costs.

32

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

7b COMPARATIVE SUPPORT COSTS ALLOCATED TO ACTIVITIES (2022)

Training and events
Publications and dissemination of information		 Staff
Costs
£
17,323
36,812
54,135		 Office
Costs
£
16,296
34,629
50,925		 Premises
Costs
£
10,435
22,174
32,609		 Governance
Costs
£
24,873
52,856
77,729		 Total
Costs
£
68,927
146,471
215,398
8. NET INCOME FOR THE YEAR 2023 2022
£ £
This is stated after charging:
- Depreciation of tangible fixed assets 4,548 3,480
- Amortisation of intangible fixed assets 47,177 105,473
- Auditors' remuneration for audit services 16,200 17,030
- Auditors' remuneration for non-audit services 2,500 2,500
9.
STAFF COSTS AND NUMBERS
Wages and salaries
Social security costs
Pension costs		 2023
£
1,004,335
100,391
23,691
1,128,417		 2022
£
1,015,440
90,393
25,044
1,130,877

An amount of £182,819 (2022: £200,838) of the above was allocated to work in progress at the year end.

There were no redundancy payments made in the year (2022: none). There were no payments made in the year for agreed early termination notice period (2022: none).

The average number of employees during the year were as follows:
Training
Publications
Accounting and administrative support
Full time equivalent		 No.
10
13
8
31
29		 No.
12
13
8
33
30

1 employee received remuneration of between £90,000 - £100,000 (2022: 1 employee between £90,000 - £100,000). The employer pension contributions for this employee were £1,321 (2022: £1,321).

The total employee remuneration of the key management personnel of the Charitable Company was £352,483 (2022: £330,072).

33

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

10. PENSION COMMITMENTS

The company participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2019 to 30 September 2025: £11,243,000 per annum (payable monthly and increasing by 3% each on 1st April)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

34

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

10. PENSION COMMITMENTS (continued)

Present values of provision
Present value of provision
Reconciliation of opening and closing provisions
Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at end of period
11. TANGIBLE FIXED ASSETS
COST
At 1 January 2023
Additions
Disposals
At 31 December 2023
DEPRECIATION
At 1 January 2023
Charge for the year
Disposals
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 2023
£
3,118
Furniture
& Fittings
£
2,243
-
-
2,243
2,243
-
-
2,243
-
-		 2022
£
5,864
2023
£
5,864
212
(2,953)
(5)
-
3,118
Computer
Equipment
£
86,279
-
(62,000)
24,279
75,405
4,548
(62,000)
17,953
6,326
10,874		 2021
£
10,071
2022
£
10,071
88
(4,078)
(217)
-
5,864
Total
£
88,522
-
(62,000)
26,522
77,648
4,548
(62,000)
20,196
6,326
10,874

35

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

12. INTANGIBLE FIXED ASSETS

INTANGIBLE FIXED ASSETS
Total
£
COST
At 1 January 2023 678,412
Additions 211,064
At 31 December 2023 889,476
DEPRECIATION
At 1 January 2023 560,113
Charge for the year 47,177
At 31 December 2023 607,290
NET BOOK VALUE
At 31 December 2023 282,186
At 31 December 2022 118,299
Material intangible assets include the following:
Carrying value as at 31 Remaining amoritsation
December 2023 period
(£)
Funding website 46,089 5 years
Online Learning Platform 55,001 6 years
Governance App 43,600 8 years
Internally generated integrations 137,496 8 years
282,186

36

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

13. STOCKS AND WORK IN PROGRESS
Publications
Work in progress
Finished books
Subscription websites
Work in progress
Electronic
Work in progress
14. DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
Within other debtors is an amount of £nil (2022: £nil) which is due after more than one year.
15. CREDITORS: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals
Deferred income (see note 16)
Pension provision
Bank loan
CREDITORS: amounts falling due after more than one year
Bank loan
Pension provision		 2023
£
172,162
99,061
22,979
135,998
430,200
2023
£
37,741
2,608
41,356
81,705
2023
£
86,054
147,205
19,139
14,173
331,332
2,953
32,000
632,856
48,000
165
48,165		 2022
£
151,168
100,738
29,251
296,153
577,310
2022 (as
restated)
£
47,870
2,852
206,127
256,849
2022 (as
restated)
£
83,675
128,986
18,889
20,725
320,363
2,953
32,000
607,591
80,000
2,911
82,911

Bank loans are repayable in instalments over the full term of 6 years, of which 3 years are remaining. Interest is payable at 1.90% over base rate.

37

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

16. DEFERRED INCOME
Balance at the start of the year
Less: Amounts released to income
Add: Amounts deferred in the year
- Subscriptions
- Training income		 2023
£
320,363
(320,363)
291,062
40,270
331,332		 2022 (as
restated)
£
405,268
(405,268)
287,145
33,218
320,363
17. STATEMENT OF FUNDS 2023
Designated funds
General funds
Restricted funds
Total funds
STATEMENT OF FUNDS 2022 (as restated)
Designated funds
General funds
Restricted funds
Total funds		 Brought
Forward
£
10,874
120,293
131,167
148,493
279,660
Brought
Forward
£
13,686
77,583
91,269
206,960
298,229		 Incoming
Resources
£
-
1,455,853
1,455,853
-
1,455,853
Incoming
Resources
£
-
1,472,614
1,472,614
157,208
1,629,822		 Resources
Expended
£
-
(1,444,951)
(1,444,951)
(140,592)
(1,585,543)
Resources
Expended
£
-
(1,532,261)
(1,532,261)
(116,130)
(1,648,391)		 Transfers
In / (Out)
£
(4,548)
12,449
7,901
(7,901)
-
Transfers
In / (Out)
£
(2,812)
102,357
99,545
(99,545)
-		 Carried
Forward
£
6,326
143,644
149,970
-
149,970
Carried
Forward
£
10,874
120,293
131,167
148,493
279,660

Designated funds

The fixed asset fund reflects the net book value of tangible fixed assets tied up in unrestricted funds at the year end. During the year £4,548 (2022: £2,812) was transferred out of this fund into general reserves to match the movement in net book value of these assets for the year.

38

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

17. STATEMENT OF FUNDS 2022 (continued)

Restricted funds

Restricted funds represent grants received to enable specific areas of charitable activities to be undertaken.

The restricted funds held at the year end of £nil (2022: £148,493) related to Forces in Mind Trust (FiMT) of £nil (2022: £140,592) and the National Lottery Community Fund of £nil (2022: £7,901). The FiMT funding was granted in 2021 to cover the continued operation of the Armed Forces Charities Website (www.armedforcescharities.org.uk) for 2021 - 2023, and expenditure in the year amounted to £140,592 (2022: £66,368).

During the prior year, a grant was recevied from the National Lottery Community Fund towards the development of the governance app, for an amount of £107,446. Of this, £7,901 (2022: £99,545) was spent, and is held on the balance sheet as work in progress, pending completion of the project. A transfer was undertaken to move this value to unrestricted funds as at the year end, as a reflection that the asset itself is held for general purpose rather than restricted purpose.

18. ANALYSIS OF NET ASSETS
BETWEEN FUNDS 2023
Tangible fixed assets
Intangible fixed assets
Stock
Debtors
Cash at bank
Creditors: amounts falling due within one year
Creditors: amounts falling due after more than one year
Amounts spent in advance of monies received on restricted funds
ANALYSIS OF NET ASSETS
BETWEEN FUNDS 2022 (as restated)
Tangible fixed assets
Intangible fixed assets
Stock
Debtors
Cash at bank
Creditors: amounts falling due within one year
Creditors: amounts falling due after more than one year
Amounts spent in advance of monies received on restricted funds		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
Restricted
Funds
£
-
-
-
166,149
-
-
-
(17,656)
148,493		 Unrestricted
Funds
£
6,326
282,186
430,200
81,705
30,574
(632,856)
(48,165)
-
149,970
Unrestricted
Funds
£
10,874
118,299
577,310
90,700
6,830
(607,591)
(82,911)
17,656
131,167		 Total
Funds
£
6,326
282,186
430,200
81,705
30,574
(632,856)
(48,165)
-
149,970
Total
Funds
£
10,874
118,299
577,310
256,849
6,830
(607,591)
(82,911)
-
279,660

39

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

OPERATING LEASE COMMITMENTS
Less than 1 year
Between 2 and 5 years		 2023
£
-
-
-
Land and		 2022
£
14,984
-
14,984
buildings		 2023
2022
£
£
-
-
-
-
-
-
Other		 2023
2022
£
£
-
-
-
-
-
-
Other
-

19. OPERATING LEASE COMMITMENTS

Committed rent and service charges payable for 2023 under the lease of the offices at One Old Hall Road, Liverpool (which expired on 3 September 2023) amounted to £nil (2022 - £14,984).

20. TAXATION

As a registered charity, no tax arises on trading surpluses (since all the trading is carried out in pursuit of the charitable company's primary purposes), voluntary income or interest. The charity is exempt from corporation tax.

21. RELATED PARTY TRANSACTIONS

Emily Hughes, a Trustee of the Charitable Company, is also Head of Volunteer Experience Girlguiding, whose organisation sent a delegate to attend a training course at £209, and purchased books totalling £38; a close family member, who is a Director of Detention Action, whose organisation sent delegates to attend training courses at £1,112, purchased an inhouse course at £875 and books at £20. In 2022, Emily Hughes purchased books at £51 during the year. A close family member, who is a Director of Detention Action, whose organisation sent two delegates to attend a training course at a cost of £518.

Other than as stated above there were no transactions between the Charitable Company in the year and any entity with which any of the Trustees was connected.

In 2022 the following activity took place with no equivalent in 2023.

Lizzie Kenyon, a Trustee of the Charitable Company, is also Director of Services, Centre for Social Innovation, Keep Britain Tidy, which organisation purchased a subscription for Funds Online for £395. In 2021 purchased two in-house Ethnicity, Diversity and Inclusiveness workshops paying £1,000 and £800 respectively, and purchased a book have charities

Lesley Thornley, a Trustee of the Charitable Company, Ex Chief Executive, Hull and East Riding Citizens Advice Bureau, whose organisation purchased a training course for one delegate to attend. There was no equivalent activity in 2021.

Lesley Thornley, a Trustee of the Charitable Company, Ex Chief Executive, Hull and East Riding Citizens Advice Bureau, whose organisation paid for research work for DSC to complete an evaluation of a 5-year Lottery project (specification was shared widely within the Sector for a competitive selection process). There was no equivalent activity in 2021.

40

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

22. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES (2022)
INCOME FROM
Donations and legacies
Charitable activities
- Training and events
- Publications
Other income
Investments
Total income
EXPENDITURE ON
Charitable activities
- Training and events
- Publications
Net expenditure
Transfers between funds
NET MOVEMENT IN FUNDS		 Restricted
Funds
2022
£
-
-
157,208
-
-
157,208
-
116,130
116,130
41,078
(99,545)
(58,467)		 Unrestricted
Funds
2022 (as
restated)
£
2,002
522,571
947,980
-
61
1,472,614
491,763
1,040,498
1,532,261
(59,647)
99,545
39,898		 Total
Funds
2022 (as
restated)
£
2,002
522,571
1,105,188
-
61
1,629,822
491,763
1,156,628
1,648,391
(18,569)
-
(18,569)

41

The Directory of Social Change Notes to the Financial Statements

For the year ended 31 December 2023

23. PRIOR PERIOD RESTATEMENT

The comparative amounts in the prior period as presented have been restated as detailed below:

Current assets
Trade debtors
Prepayments and accrued income
Current liabilities
Deferred income
Net assets
Charitable Company Funds
Unrestricted - general funds
Total funds
Reconciliation of changes in funds
Equity as prevoiusly reported at 1 January 2022
Adjustments to prior periods
Correction to subscription income recognition
Equity as restated at 1 January 2022
Unrestricted movements in funds as previously reported
Correction to subscription income recognition
Equity as restated at 31 December 2022		 Previously
reported
Adjustments
As restated
£
£
£
43,888
3,982
47,870
208,352
(2,225)
206,127
(298,881)
(21,482)
(320,363)
299,385
(19,725)
279,660
140,018
(19,725)
120,293
299,385
(19,725)
279,660
89,233
(11,650)
77,583
50,785
(8,075)
120,293
At 31 December 2022		 Previously
reported
Adjustments
As restated
£
£
£
43,888
3,982
47,870
208,352
(2,225)
206,127
(298,881)
(21,482)
(320,363)
299,385
(19,725)
279,660
140,018
(19,725)
120,293
299,385
(19,725)
279,660
89,233
(11,650)
77,583
50,785
(8,075)
120,293
At 31 December 2022
279,660
120,293
279,660
89,233
(11,650)
77,583
50,785
(8,075)
120,293

A prior period adjustment has been made to rectify the recognition of subscriptions income which were previously being recognised on a different basis/method over the years ended 31 December 2020, 2021 and 2022.

The overal impact of these adjutments is to reduce subscription income and undrestricted reserves by £19,725.

42