Charlty registratlon number NIC105105 THE COMMUNITY FOUNDATION FOR NORTHERN IRELAND ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 The Community Foundation Northern Ireland THE COMMUNITY FOUNDATION FOR NORTHERN IRELAND LEGALAND ADMINISTRATIVE INFORMATION Truslees David Mccurley Mary McKee DrAdrian Johnston Dr Jane Wlde Ciaran Moynagh John Gordon Suzanne Lagan Dr Sophie Long Rhyannon Blythe Caolan Ward Justin Kouame Gerard Deane Charity number NIC105105 Registered office Communty House Citylink Business Park Albert Street Belfast BT12 4HQ Auditor Harbinson Mulholland Centrepoint 24 Ormeau Avenue Belfast Co. Antrim Northem IrelarKI BT2 8HS Bankers AIB University Road Belfast BT7 1NH Sollcltors E(frwards & Co Solicitors 28 Hill Street Bettast BT12LA Investmont advisors Investec Weallh & Investment Limited 15th Floor, city Quays 3 92 Donegall Quay Belfast BT13FE THE COMMUNITY FOUNDATION FOR NORTHERN IRELAND CONTENTS Page Trustees, report Independent auditors report 8-11 ststement of financial activities 12 Statement of financial postti 13 SLitement of cash flows 14 Notes to the financial statements 15-31 THE COMMUNITY FOUNDATION FOR NORTHERN IRELAND TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their annual report and financial statemerrts for the year ended 31 March 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's goveming document, the Charities Act 2008 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charits.es preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102>" {effective 1 January 2019). ObJeGtives and actlvltles The Community Foundation for Nl is a local. independent charitable trust that provides grants and support to local communities in Northem Ireland. We help communtbes in need, drtve social change and change lives, through impacttul grant-making. fesearch. strategic partnerships and delivering innovative programmes. Supporting bespoke giving and providing philanthropic advice we are a trusted. secure means through which donors choose how. Ythen and where to give and we t￿0VIde a range of management and grantarnaking seNices for charitable furKIs. Vision Our vision is a fair and equitable society for everyone. The Community FoLJnd8tion wants to see a place where generosity and faimess changes lives. communities flourish, and everyone feels they belong. Mlsslon Our mission is working hand in hand wtth communities to build a better future. Working collaboratively to influence policy. advocating for communities, and using impact and knowledge to inform practice and policy, V¥411 be the key drivers, enabling us to make the changes V￿ want to see. Strategy and Key Objectlves The Board approved a new three-year strategy in March 2023. covering the period April 2023 to March 2026. We are committed to being true to our values ofAmbition, Passion and Integrity and to continually adapting to meet our Gommunity's needs. We believe that involves working on the following priorities= Engaging and supporting communities and promoting community voice.. Advancing diversty, equity and inclusion for our sector., Improve well-being., Encouraging and securing diverse funding streams, particularly independent and transfomiational fvnding into the VCSE Sector. Grant-rnaking Strategy As a grant-making charity, ￿r fO￿S is to make grants that help support important causes in Northem Ireland. We rnanage grant funds from a range of donors and funders. and listen to their views on how they want their funds to be used. Our vision for our grant making is to develop trust-based relationships that are strong. connected, listened to. and served. Our grant making is underpinned by the following values: Flexibility Agility Relational Risk taking Inclusion Influencing Our grant processes set out Ihe decision-making authority for different funds and ensure that all grant applicants are treated fairly and equitably. THE COMMUNITY FOUNDATION FOR NORTHERN IRELAND TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 We sit on the IVAR {Instrtute for Volurrtary A¢tion Research) Steering Group which encourages fijnders lo adopt flexibility and a more open and trusting approach to grant making. From this our grant making strategy outlines a number of commitments. We have listened to vthat our grantees are telling us through our Grantee Network. and we continue to review and Ljpdate our processes to be as flexible a funder a5 we can be. In addition, continue to advocate for longer term support for core costs for the sector and participate as much as possible in extemal forums to inffluen￿ funding priorities and prO￿sSes. Public beneflt The Community Foundation for Northem Ireland provides grants and communty developfflent support to local communities to enable them to address issues of sc¢ial justice. All grants are awarded on the basis of evidence that the funding will have a postbve impad on the local community and the beneficiaries. The prevention or rellef of poverty: Grants to disadvantaged cornmunities will provide support and facilities in these areas, providing local people with improved ￿ to benefits advice and support arKI training to develop their skills to gain employment. The advancement of education: Grants to individuals and organisations will enable them to access training and skills to develop their learning and improve their employment prospects. The advancement of health or the saving of lives: Grants to organisations will enable l¢xal people to access activities suth as physical activities and healthy eakn'ng awareness wogrammes that will improve their health and well-being. The advancement of cltlzenship or comrnunlty development". Grants to communities will bring local people together to develop facilities and services in their Iccal area that will improve their well-being and social inclusion. The advancement of the arts, culture. heritsge or science." Grants to individuals arKI organisations will enable people to access the arts and take part in music. drama. craft workshops and other activities that will improve their social indusion, skills and well-being. The advancement of human rlghts, conflict resolutlon or reconclllation or the promotion of racial hamiony or equality and diversty: Grants to organisations will enable these organisations to address issues of social justice and human rights in their communib'es and engage in capacity building to address contentious issues in interface communities. This will improve the safety and well-being of local people. The advancement of envlronmentsl protectlon or improvement: We are committed to play our part in tackling the causes and impacts of Climate change through our own actr.ons as an organisation. and by providing grants and support to organisations addressing this issue. The rnlief of those in need by reason of youth. age, illthealth. di$ablllty. financial hardship or other disadvantage: Grants to individuals and organisations will enable local people to access support and activities which address their needs. thus reducing their isolalion, improving their SOCAal inclusion and well-being. The above benefits are demonstrated through researth, feedback arKI evaluations taken from our donors, funders and grante88 and the 9aneral community. There is no ham or potenti81 for ham as a result of our purposes. Network and other relationships The Community Foundation is active in the Northem Ireland Fundets Forurn and grants and policy subgroups. Philanthropy Ireland and the UK Community Foundations network as well as being a member of the ACF (Association of Charitable Foundations) and FFP (Foundations ft>r Pea￿). The Community Foundal'on is also a member of the Northem Ireland Equality Coalition. UK Digital Poverty Alliance. Ihe Northern Ireland Assembly Joint Forum, and the Northem Ireland Civic Initiative. The Community Foundation believes tt)at active involvement in both local and international nelN40rks provides important shared leaming as well as reciprocating the support that Northem Ireland has gleaned from intemational interest and donors over past years. THE COMMUNITY FOUNDATION FOR NORTHERN IRELAND TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Rlsk Management The Trustees have a risk management strategy which comprises". identification and ￿gUlar review of the risks the Foundation may fa￿.. the estsblishment of systems and procedures to mitigate those risks identified in the plan-. the implementstion of procedures designed to minimise any potential impact on the Foundation should those risks materialise. The Trustees have identified the followng risks and have acti¢Jn plans in pla￿ to manage the risks". Failure to deliver community impact through our grant-making and proJrammes" Failure to retain and attract new donors" Failure to listen to communtties and understand community needs: Inadequate or ineffective govemance structures and strategy.. Failure to comply with legislation., Ineffective or inefficient management of stsff and resources". The impact of extemal factors such as the cost-of-living crisis. the pandemic, cyber threats and climate change on our activities and our beneficiaries. The task of monitoring the Foundation's financial control systems and prrtedures is delegated to the Finance and Resources Committee. Achievements and performance We are a grant-making charity with a focus on making grants that help the most marginalised and vulnerable people in Northem Ireland. We provide support to ￿MmunitieS in Northem Ireland through small and large revenue grants across a range of themes arKf issues. as well as providing grants and support to community groups through a range of different grant-making and support models. Our Team We feel very fortunate to have a fantastic team of stsff who are committed to making a differents to local people in Northern Ireland and to living our values of Ambition, Passion and Integrity. We are continuing to develop our culture of workplace wellbeing and encourage our staff to have a posits.ve VKJrk-life balan￿ and to prioritise their health and wellbeing. Please click here for a link to our report on our achievements and impact for 2023124. Financial review The Foundation received income from various sources, induding other Foundations and Trusts, private donors and the statutory and private sectors. In addition, the Foundation utilises some of the income from its (invested) endowment funds to meet some of its core costs. In 2023124, the principal sources of income came from the Department of Health, Community Foundation Ireland (for all island related partnerships), Intemational Fund for Ireland, Oak Foundation, The Sigrid Rausing Trust. Baring Foundation and private indNiduals. The Statement of Financial Activities on Page 12 indicates that the Foundation had income of £6,700.555 which was exceeded by expenditure of £16.962,602 by £10,262.047. Gains on investments were £1.787.955, therefore the net movement on funds was £8,474,092 0￿going. The Balan￿ Sheet on Page 13 shows that the Foundation had total funds of £30,586.104 at 31 March 202412023.. £39,060,196). Unrestricted funds available to the Foundation at the Balance Sheet date totalled £792,182 {2023.' £922,982). Unrestricted funds include £50.953 of designated funds. Restricted funds amounted to £6,813,996 (2023: £18.738,569). The Foundation's capitsl endowment funds were £22,979,926 at the year end 12023.. £19,398,645). THE COMMUNITY FOUNDATION FOR NORTHERN IRELAND TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Reserves Policy The Trustees tske a risk-based approach to setting our reserves requirements for the followng year. Income projections are considered in tems of value and ¢ertainty- Income that is deemed high or medium risk is 'uncertain° and is Iherefore provided for in our reserves. If we do not meet our income targets for high and ffledium risk income for 2024-25, we have identified the shortlall in funding that may exist and designated £145,000 from our Community Foundation Endowment Funds as a general reserve to cover the next year's expenditure requirernents. The balance on unrestricted reserves at the year end vfts £792,182. This indudes a designated fund of £50,953 to meet the costs of redundancy payments in the event of staff on fixed-tem) contracts being made redundant. The balance of unrestricted funds once this designated fijnd is deducted is £741,229. These funds have been eamarked for unrestricted grant-making and a number of projects over the next year. Res8Nes Policy- Restricted Funds It is the policy of the Trustees to hold any fvnds received for a specific purpose as restricted funds. Reserves Pollcy- Capital Endowment Fund It is the policy of the Trustees to hold the capf(al fund as a restricted fund viith the aim of ensuring a suitable future income stream to finance the ongoing work of the Foundation. The capital fund is represented by a portfolio of investrnents in equities. borKls. managed fijnds. property and cash products. During 2022123 we launched a match funding initiative to support legacy donations to the Foundation. We have ring-fenced match funding of £300.000 from our endowment for the legacy match funding initiative. To date (March 20241. we have designated £245,000 of the malch fvnding towards £790,000 of fiJture donations in wills. This is shown in the accounts as a designated endowment fund. The investment objective for the main portfolio is to generate a total retum of 5.5% per annum over the long term, after investment rnanagement fees. In 202>24, the total retum after investment management fees was 11.8% {2023.' 0.6 % ). Following a difficult year for investments in 2022-23 due to Y￿￿d and economic events. Trustees welcomed the strong recovery in 2023-24. The Trustees have wide investment powers and retain overall responsibility for the management of the Foundation's investments. The Trustees have delegated authority to the Finance and Resources subcommittees reports directly to the Board, which approves all major strategic decisions and has overall responsibility for all the Foundation's activities. Al Trustees and Advisory Panel members senie in a voluntary capacity. The Chief Executive. Roisin Wood. manages the day-t(Fday operations of the Foundation wth support from the senior management team and wider staff team. THE COMMUNITY FOUNDATION FOR NORTHERN IRELAND TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The Trustees who served during the year and up to the date of signature of the financial statements were.. David Mccurley Mary McKee DrAdrian Johnston Dr Jane Wilde Ciaran Moynagh John Gordon Suzanne Lagan Dr Sophie Long Rhyannon Blythe Caolan Ward Justin Kouame Gerard Deane Recruitment and appointment of twstees When Trustee vacanaes arise. we advertise these on our website and vÉa social media. We also consider recommendations from existing Trustees. The Nominations Comfflittee (a small group of Trustees plus the CEO) is appointed by the Board to interview potential candidates for the role of Trustee and to bring a shortlist of recommendations to the Board for decision. Candidates are considered in the context of skills. diversity, geographical and sectoral balance. Trust*es are appointed for a term of 3 years IrenevRble for a further &year temil Ail Trustees parti￿pate in an annu81 appraisal with the Chairperson of the Board. This involves an annual review of the Trustee's own performance and the perfomiance of the Chairperson and the Board. The Vice-chairperson carries out the appfaisal of the Chairperson. The Board conducts an annual review of skills and diversity needs and maintains the personal competence of Board members through relevant training. Trustee Induction and Training New Trustees receive a comprehensive induction pack thich includes the Foundation's Governan￿ Manual. The manual ￿-0videS detsils on policy and practice- the Foundab'on's strategy. aims and activities,. management and go¥ernance and what is exFeded of Trustees urKler charity law. with reference to the Charities Acts. New Trustees are also provided with opportunities to meet stsff and grantees to leam about the worf( undertaken by tha Foundation. THE COMMUNITY FOUNDATION FOR NORTHERN IRELAND TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Statement of Trustees. respofisibilitles The Trustees are responsible for preparing the Trustees, Report and the finanoal statements in accordanc8 With applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in Northem Ireland 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 the incoming resources and application of resources of the Charity for that year. In preparing these financial ststements. the Trustees are required to.. - select suitable accounting Folicies and then appty them consistenlly,. - observe the methods and principles in the Charities SORP: - make judgements and estirnates that are reasonable and prudent. state whether applicable accounting standards have been followed, subj.ect to any material departures disdosed and explained in the financial statements., and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping suffioent accounting records that disclose wth reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with 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 I￿egular1ties. The Trustees, report was approved by the Board of Trustees. DrAdrian Johnston Trustee 27 September 2024