KFC FOUNDATION (WORKING NAME KFC YOUTH FOUNDATION) KFC YOVTII @kf cyouthfoundationuk www.kfcyf.org.uk Registered charity number1163560 in England & Wales and SC046098 for Scotland KFCYF Annual Report 2025
KFC YOVTH TE11(all[1[S FOUNDATION Period from 30 December 2024 to 31 December 2025 Off icers and Professional Advisors YOUTH Statements from Chair of Trustees Trustees, Report Independent Auditorfs Report 19 Statement of Financial Activities 22 Statement of Financial Position 23 Statement of Cash Flows 24 Notes to the Financial Ststements 25 Registered charity number1163560 in England & Wales and SC046098 for Scotland KFCYF Annual Report 21r25
Legal and Foundation Information Trustees Damon Boughen (appointed 2 April 20251 Daniel Mark Carr Jonathan Davies James Fletcher (Chairl Nichola Newman (Deputy Chair) Claire Owen lappointed13 February 20251 Ella Smith lappointed 24 November 20251 Clara Snow Michael Williams Secretary Louise Norris (Foundation Manager) Orion Gate, Guildford Road, Woking, GU22 7NJ Registered Off ice Registered Charity Number 1163560 in England and Wales SC046098 in Scotland Advlsors Principal Bankers National Westminster Bank PLC 23 Brunswick Place Brunswick Gate S015 2AQ Solicitors BDB Pitmans 50 Broadway London SWIH OBL Auditor Buzzacott Audit LLP 130 Wood Street London EC2V 6DL @kfcyouthfoundationuk www.kfcyf.org.uk KFCYF Annual Report 2025
KFC YOVTII STATEMENfFkllM (XOJR tFTrlLgtEES Period from 30 December 2024 to 31 December 2025 2025 was a year of purposeful growth and transition for the KFC Youth Foundalion. We operationalised our services throgh tfve opening of our first Hub, scaling Ironlline activity and bringing our employability programrne, Hatch, in-house. Alongside this, we strengthened our Community Grants Programme by aligning it more closely with our core impact priorities and invested significantly in the people, policies and systems needed lo deliver sale, high-quality youth work at scale. This progress IDok place against a challenging backdrop for the youth sectDr. Local aulhority spending on yDulh services remains severely depleted, falling by approximately 73 /0 in England since 2010, with hundreds ol council-run youth centres closed and substantial workforce losses. While recent government initiatives such as the Youth Guarante? and Youth Investment Fund signal renewed policy focus, the level of need remains high. In November 2025,13.7 /0 of16-24-year-olds - around 946,000 young people - were not in education, ernployment or training, underlining the coTrtinuing challenge of the transition from school to work. The KFC Youlh Foundation remains closely aligned with the Governmenfs National Youth Strategy through its commitment to place-based, comtllunily-led youth work, early intervention and youth empowerrnent. We invest in locally rooted organisations and deliver accessible youth spaces that prioritise trusted relationships, wellbeing and progression, ensuring our work complements and strengthens the wider youth system. In April, we opened the first KFC Youth Foundation Hub in Middlesbrough. The launch was marked by strong engagement from local sl8keholders, including MPS, youth organisations antt the Mayor. MDSI importantly, il was clear from the outset that young people were taking ownership of the space, wilh parents already recognising the Hub as a vital local resource. Although the Hub had been open for only nine months by the end ol the financial year, its irnpacl was already evident=1,895 engagements with young people through programmes,1,553 free meals provided, and 283 hours of youth work delivered. At the end 012024, the Foundation was given the opportunity to directly deliver an ernployabilily programme. We are grateful lo the Yuml Foundation and its Unlocking Opportunity Programme lor their generous support of approximately £500,000 across 2025126, enabling Hatch previously delivered in partnership with UK Youth - lo be brought into the Foundation. Hatch supports young people lacing barriers to sustainable employment by building skills and ollering paid work experience. Trustees agreed lo deliver the programme as a Iwo-year pilot, recognisin the 8dded value it brings to our overall offer. During 2025, we also began a partnership with the Department for Work and Pensions to deliver Hatch in three additional locations. Over the year,115 young people engaged ITh the prDgramme', 62 /. progressed into education, employment or training within three months ol completion, and 63 /0 were retained through to programme completiDn. Our Cornmunity Grants Programme was also reviewed and refined during the year, with revised criteria introduced to strengthen alignment with the Foundation's impact priorities. While 2026 will be the first year of delivery under the revised framework, 2025 was an exceptional year for the programme. We received T12 applicalions, around double the number seen in previous years, and concluded the grant round by investing £540,000 in180 organisalions. I remain deeply impressed by our grant partners, youth workers and, above all, the young people they support. In the face of these challenges, they continue lo demonslrale extraordinary agility, resilience and resourcefulness. Their advocacy lor young people and determination to create pmpDwering environments is both humbling and inspiring. To support the scale and pace of change across the Foundation, we grew our slafl team from four to twelve during the year. I would like to thank this dedicated group of change-makers, whose commitment and professionalism have made Ouf achievements possible. l am also delighted to recognise the exceptional support of KFC team members and the generosity of our wider cornmunity. Colleagues across restaurants, head office and our franchise network have shown extraordinary comtnitment through everything from quiz nights to skydiving, enabling the FoundatlDn to continue supporting inspirational orgallisalions across the UK. Inally, my sincere thanks go to our Board ol Trustees. Their commitment and leadership have helped drive the motllentum built over the past two years and underpinned the growth and transformation achieved in 2025. We were pleased to welcome Claire Owen, KFC Franchisee, to the Board in February., Damon Boughen in April, bringing income generation and safeguarding expertise., and Ella Smith, KFC Chief Legal Officer, in November 2025. James Fletcher Chair of frustees KFCYF Annual Report 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 Trnstett. Report The Trustees present their Annual Report and Accounts for the period ended 31 December 2025. In preparing ihis report and accounts the Trustees have complied with the Charities Act 2011, the Foundation's Constitution and Accounting and Reporting by Charities.. Statement of Recommended Praclicg ISORPI applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS1021. The KFC Foundation (working name KFC Youth Foundation) is registered with the Charity Commission in England and Wales Inumber11635601 and the OSCR in Scotland (number SC0460981. Legal and other information relating lo the Foundation set out above lists the Trustees and principal advisors of the Foundation and forms part of this report. Structure, Governance & Management Lganisational SlruElure The Foundation is constituted as a Charitable Incorporated Organisation and, therefore is governed by a Constitution and has no share capital. rn Trustees that have served through the period are natlled on page 3. The Trustee5 have been chosell for their comrnercial, community, lived experience and charitable expertise, as well as their comrnitmenl to the aims and philosophy of the Foundation. The Foundation is organised so that the Trustees meet five times annually to manage the Foundation's affairs. Trustees and new Trustees are aware ol their duties to further the purposes of the Foundation, to ensure that the Foundation carries out ils purposes for the public benefit and to act in the best interests of the Foundation by ensuring that resources are responsibly managed. The Trustees are a mix of senior leaders in Kenlucky Fried Chicken IGreat Britain) Limited I"KFC"I, from the Franchisee community and externals with charitable experience and Ihus have the appropriate skills and diligence to be acting as Trustees of the Foundation. New Trustees are appointed for a term of three years and, in accordance with the Foundation's Constitution, are provided with a copy of the current version of the Constitution and a copy of the Foundation's latest Trustees, Annual Report and statement of accounts Upon appointment, as well as a copy ol the Charity Comrnission's 'Essential Trustee. guidance and offered the opportunity lo complete a Trustee training course. In addition lo five annual Boaid meetings we also have three committees which play a crucial role in the governance and management of the Foundation., the Grant Making Committee, Finance Committee and Safeguarding Committee. Key tnanagemenl personnel of the Foundation comprise the Trustees, Louise Norris (Foundation Manager), Kelly Read (Finance Manager) and Jennie Barnes Ilncome Generator), who hold responsibility for the charitys strategy, governance and operational management. The staff learn who SUPPDrts Louise has grown in the year, from three staff Members to12. Three ol these staff are contracted ID KFC with their salary recharged to the Foundation. Since 2022 only 55 % of Louise's salary costs are cross charged to the Foundation as a result of her managing projects for the KFC brand in addition to managing the Foundation. Objectives & Activities The Foundation's main purpose is to support charitable activities for Ihe public benefit, as deterrnined by the Trustees, with a particular focus on advancing in life and relieving the needs of young people. A summary of the activities that the Foundation has carried out in pursuance of ils principal objectives can be found below. KFCYF Annual Report I 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 The KFC Youth Foundation's vision is of a world where every young person is empowered to overcome barriers, raise their aspirations and fulfil their potential as the leaders ol the future. Our mission is to empower young people across the UK to build positive futures by creating sale and supportive spaces, helping them unlock talent, develop life skills, access mentoring and improve their chances ol gaining meaningful employment. We do this through grant making, operating youth hubs and delivering Hatch, our employability piogramme. In 2025, we also worked together as a team to develop a new set of organisatiollal values. fhese values now play an importanl role in shaping our culture and were ernbedded into the performance mana9ernent Irarnework we introduced, helping define not only what we want to achieve as an organisation, but how we work together to achieve it. Our values Colaboralive We work together by listening openly, sharing ideas generously and building relationships based on trust and respect. We make decisions with young people, not for them, and bring honesty, kindness and shared purpose to our work with colleagues, communities and young people alike. Ac¢ountable We take responsibility for our work and for the part we each play in achieving our shared goals. We create an environment where every voice matters, where people feel trusted and supported, and where everyone is encouraged to lead with honesty, purpose and care. Positive We bring energy and enthusiasm to everything we do, creating a workplace where people feel connected, supported and motivated. We celebr8le success, encourage one another and recognise that positivity helps build stronger teams and belter outcomes for young people. Enyowerimj We believe in giving both colleagues and young people the tools, support and opportullities they need to grow in confidence and fulfil their polenlial.11 is not about having all the answers, but about creating the conditions in which people feel seen, sUPPOrted and able lo thrive. These values can be seen in different ways across the organisation, whether people are learning, living, leading or championing them in their day-to-day work. Over the course of 2025, the KFC Youth Foundation experienced a period of significant growth and transformation. Having previously operated Solely as a grant-making charity, the Foundation took an important step forward by opening its first Youth Hub in Middlesbrough, expanding both ils reach and its direct support for young people. Alongside this, our grant making, Hatch programme and fundraising activity all continued to grow, reflecting a year of increasing arnbition, wider impact and a more diverse model ol delivery. To support this rapid development, the Foundation invested in building organisalional capability and capacity,. with new roles strengthening delivery across all areas of the Foundation and supporting the development of an executive team. We also tendered for alld implemented a new Salesforce CRM systern to improve data rnanagemenl and impact reporting for both the Youth Hub and the Hatch programme. supported by the appointment ol a temporary Senior Technology and Business Analyst to help ernbed the system successfully across the organisation. This prDgress has been made possible not Dnly by our slafl team, bul also by the many volunteers who support activity across the FoundatiDn, including sessional work in our youth clubs, and by colleagues from KFC who generously give their lime and expertise. Their support ranges froffl helping make grant decisions to advancing our use of Al, reducing adtninislrative burden and enabling us to focus more ol our resources on delivering meaningful impact. KFCYF Annual Report | 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 Community Grant Making Programme In 2025, the KFC Youth Foundation continued to grow as both a service delivery organisation and a financial partner to communities across the UK. While the Foundation expanded ils overall offer during the year, the Community Grants PrDgramme remained central lo our mission of supporting young people aged 11-25 who are experiencing economic disadvantage. The programme continues to focus on small, grassroots yDulh organisalions that are deeply rooted in their comrnunities and best placed lo respond lo local need. As the Foundation evolved, 2025 provided an important opportunity lo reflect on our existing programmes, including grants, and ensure they continued to align with our wider strategy, mission and Vision. This review reaffirmed the importance of grant rnaking as a vital form of financial partnership with local organisations, complementing our growing service delivery work and helping us reach young people where support is needed most. This was also a significant year of development for the Community Grants Programme. We delivered our first full year of two-year grants, giving funded Drganisalions greater stability and confidence lo plan ahead. At the sarne time, the annual grallt valup increased lo £3,000 in recognition of rising costs and the continued financial pressure lacing grassroots youlh organisalions. 800+ applications received 180 grants paid £540,000 paid out During the year, the Foundation paid a record-breaking £540,000 lo organisations across multiple grant cohorts. This included 34 organisalions receiving a £3,000 one-ye8r grant in 2025. A further 78 organisations received the first year of a new two-year grant, with £3,000 paid in 2025 and a further £3,000 committed for 2026, subject to satisfactory reporting. We also paid second-year instalments to organisations first funded in 2024, who received £2,500 in their first year and £3,000 in 2025. Together, this tnade 2025 the first year in which the Foundation delivered two-year grant funding at scale. Funded organisations supported young people facing financial disadvantage and reduced access lo opportunity, including those affected by poverty and wider structural inequalities. While c5elivery models varied, common themes included mentoring and trusted adult support, employability and skills development, and creating safe, inclusive spaces where young people could build confidence, skills and aspiration. Demand for the Community Grants Programme reached a record high in 2025, with more than 800 applications received. This level of demand reflects both the growing need among young people and the importance of flexible funding for small, CDmmunity-based organisalions. Applications once again lar exceeded available funding, underlining the need lor a robust and consistent assessment proce&%. Priority continued to be given to organisatlDns that could clearly demonstrate their understanding of the financial barriers lacing the young people they support. Alongside grant awards, we continued to strengthen the way we cornmunicate and engage with funded partners. Clear guidance, accessible information and transparent criteria remained a key parl of this work, helping organisalions understand both what the Foundation can fund and where we may not be the right lil. Feedback from grantees has reinforced the value of this approach, with one partner describing the Foundation as oflering'a modern, flexible approach to grant making.. KFCYF Annual Report | 7 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 Community 6rant MakiNJ Proyramm• Inunity Inunity were delighted to receive f unding f rom the KFC Youth Foundation. The flexibility of this grant has been particularly valuable, enabling us to respond quickly and appropriately to the emerging needs of young people. JPjoineLI Woodpecker Court 0118 ofler u long period of disengllgemenl fmm educolion. He wt7S withdrLTwn, locked confidence, Lrnd struggled to tlend or inlerocl, shoped by previous troumu ond low self-esteem. With a reduced tiffletuble, trusted one-to-one support ond close work with his family, JP grLTduolly re-engoged. He occessed counselling ond coreers guidunce, und o key turning point come through supported work experience in Woodpecker Cotjrys cofe, funded through field lo Fork. This helped him build confidence, routine ond sociol skills. JP progressed from Intry Level I to Entry Level 3 in English and Moths ond is now working lowords Level I quulifications. He is prepuring to study Computing ot college, demonstmling how the right environment con re-enguge and empoweryoung people. Woodpecker Wood This flexibility also enables our project workers lo be more responsive and adaplable to the changing needs of the young people we support. Rather than being constrained by rigid project budgets, unrestricted funding empowers us lo adjust our approach, offer timely interventions, and provide holistic, person centred support that reflects the real-world challenges young people lace 1125 CIC KFCYF Annual Report | 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 Youth Hub Middlesbrough The KFC Youlh Foundations Middlesbrough Youth Hub officially Dpened its doors in April 2025 following refurbishmenl. The opening was marked by a launch event attended by local MP Andy McDonald, councillors, community partners, local youth organisations and KFC representatives, followed the next day by a community celebration where the Hub welcomed young people and their families inlo the space. Since opening, the Hub has provided a safe, supportive and engaging environment for young people in the local community. Through a growing range of prDgrammes and parlnerships, il has created opportunities lor young people lo build confidence, develop life skills and access positive activities. One of the most important developments this year has been the creation of a Youth Leader Group, helping to ensure that youth voice is embedded across the Hubs Work. The group gives young people the opportunity to shape decision-making, share ideas and influence the activities on offer. This has strengthened participation and helped ensure that the Hub continues to reflect the interests and needs of the young people il serves. Our Monday Night Youth Club remains one Df the HubÈ core weekly offers and is now operating al full capacity, with up lo 32 young people attending each week. These sessions provide a structured but welcorning space where young people can take parl in sports, games, discussions and social activities while building positive relationships with their peers. We have also continued lo work closely with local schools lo deliver our Screen lo Spoon programme, encouraging young people to develop healthier habits through practical cooking and wellbeing activitie& Alongside this, the Hub has delivered a number of rnore largeled programmes designed to respond to different needs and interests. These include Level Up, a boys. group focused on idenlily, wellbeing and personal development, and Girls Rising, which has been delivered in three local schools as well as through a dedicated girls, youth club. Our BeyoTrd Mentorship programme has Continued to provide one-lo-one support fDr young people referred by social services, Early Help teams, schools, parents and carers. Through mentoring and tailored support, the programme works with young people facing additional challenges, helping them lo tsuild resilience, confidence and tllore positive pathways for the fL(ture. It can be dillicult raising teenagers in the area as thRre¥a lot going on in the community. Knowing my son has somewhere safe lo go where he's supported, having fun, and learning ew things gives me real peace of mind. The youth hub has become a place where he can grow and be himself. The Hub also hosted the Mic Drop programme in partnership with KFC and Bauer Academy, creating creative opportunities in media and cornmunication. As part of the programme, parlicipanls travelled lo London to visit the Kiss FM studios, offering an inspiring opportunity lo explore potential career pathways. In addition to stiuctureii programmes, the Hub has conlinued to offer drop-i wellbeing sessions and holiday activities and food provision during scho holidays. These ses510ns provide sale spaces lor young people to socialise, access support and take part in PDSltive activities. Our Stay and Play se&%iDns havp also crealEd opportunities for younger children and families to engage with the Hub in a welcorning community setting. KFCYF Annual Report | 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 Youth Hub Middlesbrough (continu) Over the course of the year, the Middlesbrough Youth Hub recorded more than1,895 interactions with young people and served1,553 meals through its programmes and holiday provision. We also worked in partnership with more than 60 Drganisalions, schools and community groups, helping to strengthen local support networks and widen opportunilies for young people. These achievements have been made possible through the commitment of stsff, VDlunteers and partner oryanisations, all working together to create a safe, inclusive and ernpowering environment. The FoundatlDn remains committed to building on this momentum and ensuring that young people in Middlesbrough can continue to access the support, opportunities and encouragement they need to thrive. 1,895 interactions 1,553 meals 60 partner organisations with young people served My daughter loves cuming to the hub, its a safe place for her to make new friends. I can have fun, learn new stuff, p and just be me. KFCYF Annual Report | 10 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 The Halch Programme Hatch supports young people who are not in education, employment 01 training to lake practical, supported steps towards work. Through employability training, workplace insight and strong employer partnerships, the programme helps young people build confidence, develop skills and access four weeks ol paid work experience. Originally established in 2D22 through a partnership between KFC and UK Youth, Hatch entered a new phase at the end of 2024 when the Foundation took on direct delivery of the programme. We are grateful to the Yum! Foundation and its Unlockintj Opportunity Programme for its generous support ol approximately £500,000 across 2025 and 2026, enabling Hatch to be brought into the Foundation. As a result, 2025 became a year of growth, learning and evolution as we built on the journey KFC had started and worked towards a sustainable Model for long-term impact. To strengthen consistency and quality across delivery, we invested in the core foundations of the programme. A dedicated Employability Co-ordinator was appointed to support young people, delivery partners and employers. We also worked with external learning and evelopment specialists to design our own employability workshops and resources. lrnportanlly, we sought feedback from delivery partners and former Hatch participants lo help shape the content, ensuring that sessions reflected real workplace experiences, challenges and aspiration& In 2025, we also implemented Salesforce Nonprofit Cloud to improve the way we manage progiammes and understand their impact. For Hatch, Ihis has streamlined programme management, irnproved data quality and reporting, and strengthened our ability to track longer- term outcomes lor young people. Further developrnent is planned in 2026 to make the system easier for external delivery partners to use as the programrne continues to grow. Hatch launched lor the year in June 2025, with cohorts delivered in Manchester, Blackburn, Burnley and Middlesbrough, alongside additional delivery in Liverpool, Essex and East London through our partnership with the Department for Work and Pensions IDWPI. Across 2024-25, 99 young people completed the piogramme. Feedback from participants has been especially encouraging= 98 1¢ rated Hatch as excellent or very good, young people rated KFC 4.2 out of 5 as a place to work, and self-reported wellbeing improved following the programme. At the three-month follow-up point, 62/. of young people had responded, 56 /0 were no longer NEET, and 44 /0 were actively seeking employment or other positive opportunities. These early outcomes are encouraging and reflect the value of practical support, trusted relationships and meaningful workplace experience. he people I work8d with wa*very friendly and I learnt a lol during my lime there, I honestly would love lo slay here Supporting young people into future opportunities has remained a priority throughout the year. Through Hatch, the Foundation has worked to CDnnect young people with employrnent opportunities while helping them develop the skills, confidence and experience needed to take their next steps. 99 young people completed Hatch 98 /0 rated Hatch Yoseph storted Holch with low confidence in customer- focing work bul quickly grew in confidence, communicution, leumwork through his plocemenl. He became u reliable, molivuted leom member ond ochieved strong results, including generoting128 Google review& Hisjourney shows how support ond work experience con quickly improve confidence und employobility. excellent or v. good Improved wellbeing reported post Hatch HATCH KFCYF Annual Report l 11 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 The Hatch Programme (conlinuod) Alongside core Hatch delivery, we piloted a new model in partnership with the DWP. The DWP-lunded programme supported 26 young people across Liverpool, Essex and East London, with 52 /¢ securing employment after completing the prograrnme. The pilot yave us valuable insight into how Hatch can be delivered in different ways, how it might reach more young people cost-effectively, and how the rnodel can scale withoul losing quality or impact. Employer engagement continued to play a central role in Hatch's success. Encouragingly, 95 /0 ol Restaurant General Managers said they would recommend the programme. Reported benefits included pride in giving back lo the community, improved diversity and inclusion, stronger leadership development and the opportunity to build a future talent pipeline. Employer partnerships also led to tangible prDgression oulcornes. One young person who completed work experience with Daisy Communications went on to secure an apprenticeship with the business, demonstrating Hatch's potential lo support young people into sustained employment. Presley completed a work experience plocen7enl ot Iliddlesbrough Youth Hub, where she built her confidence and showed stmng polentiul in un odmin setting. The experience helped her feel fflore confident soci(Jlly onLI in her obilities, especiolly ofler being out of work forseverulyeors. Becouse of the positive impression she mLrde, she isjoining the teom in Lln Adfflinistrution Assistont role. Herjourney shows how the Holch pmgramme helps people gain confidence, workploce experience, and progress in employment. It was enjoyable and -helped build confidence and was a really nice work environmenL KFCYF Annual Report | 12 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 2025 marked a major milestone lor the KFC Youth Foundation=10 years of supportiny young people across the UK. It was a moment lo celebrate a IOMILLIOI,. -,,-,:,,. RAISEDIo' J Thanks to the continued generosity of customers, franchisees, learns and suppliers, the Foundation also reached an incredible achievemenL YEARS OF FEEDING POTENTIAL £10 million raised since it began. This anniversary year became our biggest fundraising year yet, with record-breaking support from colleagues, customers, franchise partners and suppliers. Together, these efforts helped us raise more funds than ever before and reach more young people across the UK. Customer giving remained a cornerstone of our fundraising success. The £1 on Buckets campaign once again played an important role, raising an additional £254,000 between15 and 21 September while also helping to build awareness ol the impact that small acts ol giving can have. Oonations made through the KFC app and in-reslaurant kiosks also continued to grow, with more customers choosing to add a contribution 81 checkout. These simple and accessible donation points are now an irnportanl part of our long-term fundraising model and continue to make a meaningful contribution lo annual income. Cash donations in restaurants also remained a valued source of support. WE'RE DONATING £1 FOR EVERY Our franchise partner5 played a vital role in reaching this year's rnilestone. Their contributions included product donations, such as 5p Irorn every bucket sold throughout the year, as well as a wide range of restaurant-led fundraising activity. From skydives and cricket matches ID walk-a-thons and other local challenges, franchisees and restaurant teams brought energy, creativity and commitment to supporting the Foundation. Their collective efforts helped push us past the £10 million mark and demonstrated the strength of the wider KFC community. Suppliers also continued to makE a valuable cnnlribution in 2025. Long-standing partners including Mccormick and Shoes For Crews supported the Foundation through a mixture of financial donations and gifts in kind. These included assets lor the Youth Hub such as coffee machines, podcasting equiprnent, maintenance contracts and uniforms for Hatch candidates. This support helps us strengthen delivery, extend our reach afid engage wider networks in backing young people. Restaurant Support Centre colleagues and restaurant tearns also played an important parl in fundraising throughout the year. Contributions came through KFC events including the Bolos, RGM Fest and the Franchisee Awards, as well as Tap ID Donate trials and leam-led initiatives such as sponsored challenges and bake sales. As well as raising important funds, these activities helped build awareness of the Foundations work and strengthened a shared culture of support across the KFC family. KFCYF Annual Report | 13 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 Plans for the Future 2025 was a year of siqnificant growth and transition IOT the Foundation. By expanding our service delivery, growing organisational capability and investing in strong foundations, we have put ourselves in a much slronger position for the future. As we move into 2026, one ol our first priorities is a trustee away day, creating space lor the Board to gel lo know one another belter and reflect on how trustees can best support the Foundation. This will include considering what the executive learn needs most frorn the Board, how trustees can contribute across support, stretch, stewardship, strategy and scrutiny, and how individual skills can be used most eflectively.11 will also be an DPPOrtunity lo agree clear ways of working for the future. For grant making, our locus in 2026 will be on continuing to streamline processes, reducing administrative burden and ensuring that funding continues lo go where it can have the greatest impact, in line with the Foundation's mission anl vision. This will help ensure that the Community Grants Programme continues lo reach the organisations, communities and young people who need it most. For Hatch, learning from the DWP pilot has already shaped an agreed delivery model and plan lor 2026, including direct delivery Of pre- employability modules by our learn, both in person and online, for young people identified through Jobcentre Plus. Meanwhile, the Middlesbrough Youth Hub is sel to expand its delivery, supported by National Lottery funding to increase youth worker hours. This will enable the development of new programmes and help us begin laying the groundwork for a second Hub in 2027. Our 2026 commitments: EXECUTION OF ROAD MAP FOR HUB OPENING
2 IN 2027
EXECUTION OF GRANTS & POSITIONING TIIE FOUNDATION AS A COrflllTTED FUNDER POSlmOllllilB k8TH£ PRO4IDER OF QUALI1¥ ¥OUIHS£RYICES LOCALLY 10 nlXllllSEIttPACI ONNOIING PEOPLEIN lllDDLESBROU6H DEVELOP ThE FOUNDA TION AS AN EnpLOYER OF CHOICE IN EnBEDDING YOUTH THE SECTOR PERSPECTINE INTO .- STRATEGY & DELINERY DEIIVERYAIID susr4111A8ILITYOF NA TCH1112027 ,1: UIIIFIED IIIPACT FRAnEWORKFOR TAEFOIIWDAriow KFCYF Annual Report I 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 The Trustees confirm that they have referred to the guidance set out in the Charity Commission's general guidance on public benefit when reviewing the Foundation's aims and objectives. The benefils are clearly sel out in the section above. The Trustees review Ihe Foundation's activilies against its aims and objectives on an ongoing basis and are satisfied that all activities continue to be related to the Foundation's purpose. The beneficiaries are vulnerable younq people, primarily from deprived backgrounds, who are at risk of dropping out of education, becoming involved in gangs, lack a stable role model, are slruqgling to find employment and are likely lo continue the cycle of poverty. The charities we make grants to and our own Service Delivery seek lo mitigate against these by providing safe spaces, rnentoring, counselling, training and education. Income increased significantly in the year to £2,219,16212024: £1,165,6421 reflecting a period of substantial growth. DDnat10ns included £512,933 from Yuml and £180,767 from KFC lo support the integration of the Hatch programme inlD the Foundation and inveslrnent in inlraslruclure lo enable this expansion. Product contributions increased by 26 /., tiriven by the increased contribution ol £1 per bucket sale during the fundraising week in September. Cash donations made at counters decreased by10 /, while donations via kiosks, the website and app increased by13Y., reflecting the continued shift away from cash-based Iransaclions. The Foundation also benefited from gilts in kind totalling £103,078 and increased income from fundraising events of £28,931 compared to the prior year. 32* Expenditure increased to £1,354,94612024= £579,6151 This reflects an extraordinary year of growth, including the opening of the charitls first youth hub, the integration Df the Hatch employability programrne, and the award of180 grants. In addition, staff nurnbers increased from four to twelve during the year, and investment Was made in strengthening internal operations and governance to support the Foundation's expanded activities and future growth. Investments The Foundation does not hold any long-term investments and funds are held prirnarily in Natwest bank accounts, in line with the trustees, approach to managing financial risk and maintaining apprDpriale liquidity. During 2025, the trustees held Dver £lm of the charitls cash reserves in a 95-day deposit account with Nalwesl, enabling the charity lo earn interest on surplus funds while retaining access to cash lo mpet planned expenditure. Looking ahead, during 2026 the trustees intend to place a greater proportion of available cash in deposit accounts with appropriate regulated institutions, with the dual objectives ol earning improved interest returns on surplus funds and spreading counterparty risk, in line with the Foundation's treasury management policy. Reserves The trustees review the charitls reserves policy annually lo ensure it remains appropriate to the scale, nature and risks of the Foundation's activities. During Ihe year, the policy was reviewed and a target range for free reserves equivalent to between three and six months of budgeted expenditure was agreed. Based on the 2025 budget, this represents a target range of £412,00010 £824,000. At the year end, the Foundation's lotal funds amounted to £2,844,640, comprising restricted funds of £472,845 Isee note121, designated funds ol £931,000 (see nole131, and unrestricted general funds of £1,440,795.12024.. £1,980,424 total funds, comprising restricted funds of £16,140 and unreslricteé general funds £1,964,284) KFCYF Annual Report | 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 Designated funds of £931,000 have been set aside by the trustees lo support the Foundation's future strategic plans, including the second year Df operating the Middlesbrough youth hub, the provision of year two grant funding in 2026, and the planned opening of a second youth hub in 2027. After adjusting unrestricted funds ID remove fixed assets, the Foundation's free reserves at the year elld were £1,279,664, representing approximately nine months of expenditure based on current budgeted levels. The trustees recognise that this level of free reserves is above the agreed target range. However, they are satisfied that this position is appropriate in the context of the charit$ planned growth, and expect free reserves to be drawn Upon from 2027 onwards as expenditure increases following the opening ol the second youth hub The tTuslees consider this reserves position to be consistent with the Foundation's strategic plan and reflective of prudent financial management during a period ol continued expansion. The Trustees have considered the major governance, operational, financial, external, compliance and safeguarding risks, which the Foundation faces and ensured that those risks are regularly reviewed and mitigating steps taken as necessary. Thp risks that would have the highest impact ID the operation of the Foundatlon are.. Hiligating ActiS Decrease in income either as a result ol having one principle lunder or from the pressure ol high street sales. Recruited an IncoTne Generator ID explorp diversity uf income. Exploring other fundraising avenues that are Iw reliant on a donor physical presence in KFC reslauranls. Review donations made in every restaurant on 8 regular basis to identify trends l anomalies. Strict payment deadlines lor recovering donations from Franchisees. Inability lo separate charity funds from Franchisee lund& Financial sustainability DI operating yDUth hubs and the EmplDyment DI yDUth worker& Monitoring of monthly management accounts and cashllow forecasts. Monitor ol resprves policy. Reviewing income generation opportunities. Robust safeguarding policy in place and regularfy reviewed, including practices around recruilmenl ol stall and volunl8er& Regular training in safeguarding lor stall and voluntper Establishment ol a safeguarding commiitee and appointment ol a Designaied S8leguarding Lead. Salequarding policy ol organisalions we fund reviewed. Salequarding incident& KFCYF Allnual Report i 16 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 The Foundation's approach lo fundraising is to predominantly use its relationship with KFC, ils employees and guests lo raise funds through the sale of products and fundraising activities. The Foundation does not carry Dul street fundraising, nor does it undertake fundraising rnail shots or telephone canvassing. The Foundation does not engage professional fundraisers or commercial participators other than KFC and its franchisees, and no fundraising activities are carried out on behalf of the charity by third parties. The Foundation works closely with KFC to ensure that all fundraising activities comply wilh best practice and are carried oul in a responsible and ethical manner. Fundraising activity is monitored by the trustees of the Foundation, and any fundraising complaints are reviewed by them. No fundraising complaints were received during the financial year 2024125. The FoundatlDn is committed to protecting the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches or any undue pressure lo donate. Although the Foundation is not a member ol a voluntary fundraising regulatory scheme, the trustees ensure that fundraising activities adhere lo recognised best practice and relevant legal and ethical standards. Product contributions are charged to KFC and its franchisees in respect of all sharing buckets sold. All franchisees operate under a franchise agreement with KFC and are required lo sell core menu iterns in their restaurants. It has been agreed belweeTh KFC and its franchisees that a donation of 5p is made to the FoundatioTh for each sharing bucket sold. Under the terms ol the franchise agreement, KFC has certain rights where debts are due lo KFE or other suppliers and partners. The Foundation has direct access to KFC'S reporting systems, which provide data relating lo sharing bucket sales, customer kiosk onations, customer donalions via the KFC website and app, and the amounts banked frorn countertop donation boxes. Countertop onations are monitored by the Foundation to ensure that all restaurants are banking customer donations appropriately, and KFC and its fianchisees are followed up regularly where necessary. Stalement of Trustees. respDnsibililies The Trustees are responsible lor prepaiiny the Trustees. report and accounts in accordance wilh applicable law and United Kingdom Accounting Standards (United KingdDm Generally Accepted Accounting Practicel. The law applicable lo charities in England and Wales requires the Tnjslees to prepare accounts for each financial period which give a true and fair view of the stale Of affairs ol the charity and of the income and expenditure of the charity for that period. In preparing the accoullts the Trusteps are required to- select suitable accounting policies and then apply thern consistenlly., observe the methods and principles of Accounting and Reporting by Charities: Statement of Recommenéed Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS1021, make judgements and estimates that are reasonable and prudent., stale whether applicable United Kirbgdom Accounting Standards have been followed, subject lo any material departures disclosed and explained in the accounts., and prepare the accounts on the going concern basis unless it is inappropriate to presume Ihal the charity will continue in operation. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy al any time the financial position ol the charity and which enable them lo ensure that the accounts comply with the Charities Act 2011, applicable charity (Accounts and Reports) Regulations, and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. KFCYF Annual Report | TI 2025
KFC YOVTII TrusREPoRT Period from 30 December 2024 to 31 December 2025 Provision of inforniation lo audilor So lar as each Trustee is aware: there is no relevant audit information ol which the Foundation's auditor is unaware., and the Trustees have taken all steps that they ought lo have taken lo make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Approval This report was approved by the Trustees on 30 June 2026 and signed on its behalf. JAMLS Fldd James Fletcher Chair of Trustees For further information contact-. KFC FOUNDATION Orion Gate, Guildford Road, Woking, GU22 7NJ @kfcyouthfoundationuk www.kfcyl.org.uk Registered charity number1163560 in Enqland & Wales and SC046098 for Scotland KFCYF Annual Report | 18 2025
KFC YOVTII INDEFfNDDifAULVttffs roiJRTTOIHE 11 Period from 30 December 2024 to 31 December 2025 Opinion We have audited the accounts of KFC Foundation (the 'charitll for the period ended 31 Decernber 2025 which comprise the statement of financial activities, th8 balance sheet, the slalemenl ol cash flows, the principal accounliny policies and the notes lo the accDunts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard102 The Financial Reporting Standard applicable in the UK and Republic ol Ireland, Iunited Kingdom Generally Accepted Accounting Praclicel In our opinion, the accounts.. give a true and fair view of the stale ol the chariws affairs as at 310ecember 2025 and of its incoming resources and application of resources for the period then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investmenl Iscotlandl Act 2005, and regulation 8 01 the Charities Accounts IScDllandl Regulations 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our rEsponsibilitlES uThder those standards are further described in the auditorfs responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRfs Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these iequirernents. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the accounts, we have concluded that the trustees, use of the going concern basis ol accounting in the preparation of the accounts is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the charitfs ability to continue as a going concern for a period of at least twelve months from when the accounts 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, including the trustees, report, Dther than the accounts and our auditorfs report thereon. The trustees are responsible lor the other information Contained within the annual report. Our opinion Dn the accounts does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsislenl with the accounls 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 misstaternents, we are required to determine whether this gives rise to a material misslalemenl in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other inforrnation, we are required lo report that fact. We have nothing lo report in this regard. KFCYF Annual Report 1 19 2025
KFC YOVTII INDEFfNDDifAULVttffs roiJRTTOIHE 11 Period from 30 December 2024 to 31 December 2025 Matters on which we are required to report by exception In the light ol the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstalemenls in the trustees, report. We have nothing to report respect of the following matters in relation to which the Charities (Accounts and Reportsl Regulations 2008 and the Charities Accounts Iscotlandl Regulations 2006 require us lo report to you if, in our opinion: the information given in the Iruslees, report is inconsistent in any material respect with the accounts; or sufficient and proper accounting records have not been kept., or the accounts are not in agreement with the accounting records., or we have not received all the information and explanations we require for our audit. Responsibilities of trustegs As explained more fully in the trustees, responsibilities statement set out on page17, the trustees are responsible for the preparation of the accounts and lor 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 accounts that are free from malprial misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the charills ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charity or to cease operations, or have no realistic alternative bul lo do so. Auditorfs responsibilities for Ihe audit of the accoun1$ We have been appointed as auditor under section 144 of the Charities Act 2011 and section 4qIXcl of the Charities and Trustee Investment (Scollandl Act 2005 and report in accordance with those Acts and relevant regulations made or having effect thereunder. Our objectives are lo obtain reasonable assurance about whether the accounts as a whole are free from material misstaternent. whether due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material rnisstatement when it exists. Misslalemenls can arise frorn fraud or error and are considered rnaterial if, individually or in Ihe aggregate, they could reasonably be expected to inlluence the economic decisions of users taken on the basis of these accounts. Irregularities, including fraud, are instances of non-campliance with laws and regulation& We design procedures in line with our responsibilities, outlined above, to delect material misstaternents in respect Df irregularities, including fraud. The exlenl to which our procedures are capable of detecting irregularities, including fraud is detailed below= In identifying and assessing the risks of material rnisslatement in respect of irregularities including fraud and non-compliance with laws and regulations, our procedures included the following: We Dblained an understanding ol the legal and regulatory frameworks applicable to the charity. We determined that the following laws and regulations were most significant: Charities Act 2011 & 2022, the Charities and Trustee Investment Iscollandl Act 2005, and regulation 8 of the Charities Accounts (Scotlandl Regulations 2006. We assessed the susceptibility of the charitls financial statements to material misstalemenl, includiny how fraud miyht occur, by= Makiny enquiries to manayernent as to their knowledge of actual, suspected and alleged fraud. We corroborated these views by our review of Trustees, minutes. Considering the internal controls in place to mitigate the risks of fraud and non-compliance with laws and regulation To address the risk of fraud through management bias and override of controls, we.. Performed analytical procedures lo identify any unusual or unexpected relationships., and Tested journal entries to identify any unusual transactions. KFCYF Annual Report | 20 2025
KFC YOVTII INDEFfNDDifAULVttffs roiJRTTOIHE 11 Period from 30 December 2024 to 31 December 2025 In response to the risk of irregularities and non-compliance with laws and regulatiDns, we designed procedures which included, but were not limited to: Reading the minutes ol meetings of those charged with governance., and Enquiring with managernent as to the presence of any aclual or potential litigalions or claims. There are inherent lirnitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required lo identify non-compliance with laws and regulations lo enquiry ol the trustees and other management and the inspection ol regulatory and legal correspondence, if any. Material misstatements Ihat arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council's website at www.frc.org.uklaudilorsresponsibilitie& This descriptioTh forms part of our auditorfs report. Use of our report This report is tllade solely to the charitls trustees, as a body, in accordance with Part 4 Df the Charilies (Accounts and Reports) Regulations 2D08. and Regulation10 of the Charities Accounts (Scotlandl REgulalions 2006. Our audit work has been undertaken so that we might slate lo the charitls trustees those matters we are required to stale to them in an auditorfs report and lor no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charitys trustees as a body, for our audit work, for this report, or for the opinions we have formed. Buzzacolt Audit LLP Statutory Auditor 130 Wood Street London EC2V 6DL 01 July 2026 Buzzacolt Audit LLP is eligible to act as an auditor in terms of section1212 of the Companies Act 2006 KFCYF Annual Report I 2025
YOVTH STATEMENtOFHIIIPIWACTivmES Period from 30 December 2024 to 31 December 2025 FniiNnATIfiN Period from 30 Dec 2024 to 31 Dec 2025 Noles Unr8strict8d Funds RestflCt8d Fund$ Unrestrictod Restricted Funts Funds Total Funds Total Funds Income from Donations 1,464,964 7D6,168 1171,132 31,8n 16,159 ,i62 1,134,440 16,480 1,150. 7,617 7,105 16,480 1,165 IVestment incorne 31,871 7,617 Other incorne 16,159 7,105 TOTAL INCOHE 1,511994 70B,168 I,VTr9,162 Expenditure on Raising Funds Charitablo Activilies 50,1 33,258 83,429 12,822 11822 Grant programmes 635,077 13,922 648,999 421,900 340 422,240 Youth Hub Pfogrammes 290,546 47,066 337,612 144,553 144,553 Employability prDgrarnme 129,689 155,217 284,906 TOTAL EXPENDITURE 1,105,483 249,463 1,354,946 579,275 340 579,615 NET nOVEllENT IN FUNDS 407,511 456,705 864,216 569,887 16,140 586,OZI Reconciliation of Funds: Fund balances al 29 Decemtier 2024 1,964,284 16,140 1,980,424 1,394,397 1,394,397 Fund balances at 31 December 2025 2,371,795 472,845 2,Wi,640 1,964,284 16,140 1,980,424 Therp were no recognised gains or losses in the current or precediny periods other thall those disclosed in the statement of financial activities. The notes on pages 25-33 form part of these financial statements. KFCYF Annual Report 122 2025
KFC YOVTII STATEMENtOFHII4JIQIIFINlloN At 31 December 2025 Nole$ 31 Dec 2025 29 Do¢ 2024 FIXED ASSETS Tangible assets TOTAL FIXED ASSETS IBI,131 2,524 CURRENT ASSETS Debtors 267,201 207,127 Short term deposits Cash at bank and in hand 1,039,488 506,085 1,465,575 1,346,431 TOTAL CURRENT ASSETS Im,264 1059,643 LIABILITIES Creditors falling due within one year 10 188,7551 181,7431 TOTAL NET ASSETS 2.844.640 1.980.424 FUNDS: Restricted Funds 472,845 16,140 Unrestricted Funds- Designated Funds General Fund 12 931,000 13 1,440,795 1,964,284 TOTAL UNRESTRICTED FUNDS 1,964,284 TOTAL FUNDS 2,844,640 1,980,424 The financial statements were approved and authorised lor issue by the Board of Trustees on 30 June 2026 alld signed on ils behalf= JthLS FLdd Chair ol Trustees- James Fletcher Registered charity number1163560 in England & Wales and SC046098 for Scotland The notes on pages 25-33 form part ol these financial slalemenls. KFCYF Annual Report 123 2025
KFC YOVTII stAThIENt(f rAg1 FL Period from 30 December 2024 to 31 December 2025 Period from 30 Dec 2024 to 31 DBC 2025 PorlDd from 25 Doc 21123 to 29 Dfrc 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income for the reportiny period (as pgr the Stat¢menl rinancial Activities) Adjustments lor: Depreciation Interest received 864,216 586,027 36,104 131,8711 160,0741 7,012 276 17,6171 47 Ilncreasel I decrease in debtors Increase in creditors 58,155 Net cath 0VIded by op•ratin9 aclivltlgs 8.587 CASH FLOWS FROM INVESTING ACTIVITIES Purchase DI tangible fixed assets Purchase DI short term deposits Interest received 1194,7111 1533,4031 51,871 1696,243) IIBOOI 1506,0851 7,617 1501,2681 Net cash lded by Inve911ng acllvhl•$ Change in cash and cash equivalents in the reporting period 119.144 135.62D CASH AT START OF THE PÈRIOD CASH AT END OFTHE PERIOD 1,346,431 1.210,8111 1,465,575 1,346,431 The notes on pages 25-33 forrn parl of these finaTrcial statements. The following accounting policies form part of these financial statements. KFCYF Annual Report 124 2025
KFC YOVTII TOTHEFllldJlt14LsfAIEMEHrs Period from 30 December 2024 to 31 December 2025 I. ACCOUNTING POLICIES The following accounting policies have been applied consislenlly in dealing with items that are considered material in relation to the financial slalemenls.. Basls of preparallon of flnanclal statements KFC Foundation is a Charitable Incorporated Organisation registered wilh the Charity Cornmission in England and Wales Inumber11635601 and with OSCR in Scotland (number SC0460981. These financial statements have been prepared lor the extended accounting period from 30 December 2024 10 31 December 2025. This accounting period has been adopted to align the financial year end with the calendar year, in line with the Charitls entitlement under the Charities Act 2011 and Charity Commission requirements to amend its accounting reference dale. Comparative information is presented for the period from 25 December 2023 10 29 December 2024, and, as the current period is longer, the results should be interpreted in this context., however, the difference in period length is minimal and is not considered to have a material impact on comparability. The financial sl8lemenls have been prepared in accordance with Accounting and Reporting by Charities.. Staternent of Recomrnended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting S13ndard applicable in the United Kingdom and Republic ol Ireland IFRS102IICharilies SORP FRS102 lupdaled 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 and the Charities Act 2011. The financial staternents have been prepared under the historical cost convention. The KFC Foundation is a public benefit entity. The financial statements are presented in steding and are rounded to the nearest pound. Critical accounting estimates and areas of judgement Other than the assessment of going concern below, the preparation of the financial statements did nol require the Tiuslees to make any significant judgempnls Dr estimates. Fund ¥xountin General funds are those givell freely lo Ihe Foundation and can be applied at the discretion of the Trustees for the advancement of the Charitls objectives. Designated funds are those which have been set aside by the Trustees out of general funds to cover specific future projects. See note12 for further details. Restricted funds are those to be used ill accordance with specific instructlDns imposed by donors or have been raised by the chaflty for specific purpose& See note11 for further details. Income recognition Income is recognised when the charity has entitlement lo the funds, any perlorrnance conditions attached to the income have been mel, it is probable that the income will be received and the amount can be measured reliably. Other income relates to the rental of roorns at the Middlesbrough Youlh Hub lo other organisalions. Donated un7ices and lacililies Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt ol economic benefit from the use by the charity ol the item is probable and that economic benefit can be measured reliably. In accordance with Charities SORP IFRS1021, the general volunteer lime ol KFC stall is not recognised. Expenditure recognilion Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that the settlement will be required and the amounl ol the obligation can be measured reliably. All expendilure is accounted for on an accruals basis. KFCYF Annual Report 1 25 2025
KFC YOVTII TOTHEFllldJlt14LsfAIEMEHrs Period from 30 December 2024 to 31 December 2025 I. ACCOUNTING POLICIES (CONTINUED) Expenditurg rgcognition (continued) Expenditure cornprises grants payable in furtherance of the Foundation's charitable activities, costs associated wilh youth programmes including the OPEratiDn of the Middlesbrough Youth Hub, costs incurred in delivering the Hatch employability programme, and governance and adtninistrative costs relating to the charity and ils operations. Grants payable are included in the statement ol financial activilies when approved and when the intended recipient has either received the funds or been informed of the decision lo make the donation and has satisfied all ¥elaled conditions. Grants approved bul not paid at the end of the financial period are accrued for. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued lor but are noted as financial comrnitmenls in the notes lo the financial statements. See note14. All grants are made to organisatlDllS. Governance costs comprise the cosls involving the public accountability of the charity and costs in respect to ils compliance wilh regulation and good practice. Direct staff salaries have been allocated to the actlvlty based on an estimate ol lime spent. Support and governance costs have been apportioned between Raising Funds and Charitable Activities based on an estimate of staff time spent on each of these areas. They have been apportioned as follows: 2tr25 2024 io/. 5/ 20/. 40/ 35/. 55/ 35/. Raising Funds Grant programmes Youth Hub programmes Employability prograrnme Tangible fixed assets Tangible fixed assets costing more than £1,000 are capitalised and stated at cost less depreciation. Depreciation is calculated to write off the cost of tangible fixed assets by equal instalments over their expected useful lives as follows.. Leasehold improvements Fixtures, fittings and computer equipment Over the terrn ol the lease 33% 13years Cash al bank and in hand Cash at bank and in hand includes cash in hand and cash held in the bank current account. Deposits for more than three months but less than one year have been disclosed as shorl-lerm deposits. Debtors Debtors are recognised at the settlement amount, less any provision lor non-recoverability. Credilors Creditors are recognised when the charity has a present obligation resulting from a past event that will probably resull in the Iransler of funds lo a third party and amount due to settle the Dbligation can be measured or estimated reliably. Operating lease paymenls Total payments under operating leases are charged lo the Statement of Financial Activities on a straight-line basis over the term of the lease. rinancial inslruments The KFC Foundation only has financial assets and financial liabililies of a kind that qualify as basic financial instrumenls. Financial instruments are initially recognised at transaction value and subsequently measured at their setllernent value. KFCYF Annual Report 1 26 2025
KFC YOVTII IlEsTo1HEF111fj}l(I4LsTAIEMDi[s Period from 30 December 2024 to 31 December 2025 I. ACCOUNTING POLICIES (CONTINUED) Going concern The Trustees have reviewed the financial position ol the Foundation and concluded that there are no material uncertainties related to events or conditions that may cast significant doubl on the ability of the charity lo prepare these financial slalemenls on a going concern basis. The Trustees are ol the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The financial statetllents do not iaclude any adjustments that would rEsuIt frotn this basis of preparation being inappropriate. 2. RELATED PARTY TRANSACTIONS AND TRUSTEE> EXPENSES AND REMUNERATION The Trustees all give freely of their time and expertise without any form DI remuneration or other benefit in cash or kind. During the period, there were expenses of £1,029 reimbursed lo three Trustees12024.. £123 to two Trustees) and these were in relation to travel lor Trustee meetings and ID our youth hub in Middlesbrough. During the period the Foundation received a £213.50 donation from one Trustee12024.- £40 from one Tiusleek During the period the Foundation received £34,45612024.. £nill and had debtors outstanding at period end ol £1,82912024: £nill lor Kefco Sales Limited which was owned in the period by one of the KFC Foundation Trustees. This represents incorne frorn Producl Contributions, Countertop Donations, Kiosk Donations and a one off donation. There are no other related party transactions that require disclosure in the financial statements. 3. DONATIONS Income has been split into donations by KFC and its franchisees as follows.. 30 D9¢ 2024 to 31 De¢ 2025 Unrestricted Re$tricled Tolal KFC - product contribution Franchises of KFC- product contribution KFC countertop donalions Franchises of KFC- countertop donations KFC - kiosk donations 259,024 259,024 676,294 676,294 27,577 27,577 63,545 83,545 77,931 71,931 Franchises of KFC kiosk donations 223,128 223,128 Brand donations (see note111 Fundraising evenls Other donations 4,181 693,700 697,881 25,430 3,501 8,967 28,931 4,T76 13,743 Gifts in Kind 103,078 103,078 ITll,u2 Gifts in Kind include the equivalent ol one emplDyee's salary contributed by KFC UK&I for the Hatch programme, along with the donation ol Hatch uniforms, a coffee machine and podcasting equiprnent. KFCYF Annual Report 127 2025
KFC YOVTII TOTHE FIPI4NtJALSTAThIDirs Period from 30 December 2024 to 31 December 2025 3. DONATIONS (CONTINUED) 25 Doc 2025 to 29 Doc 2024 Lknrestrfclod Res1rfed Totsl KFC- product contribution Franchisees of KFC- product contribution KFC countertop donations Franchisees of KFC- countertop donations KFC- kiosk donations 162,592 1,380 163,972 575,806 575,806 25,197 23,197 78,214 78,214 48,949 48,949 Franchisees of KFC- kiosk donations 215,883 215,883 Brand donations 6,941 6,941 Fundraising events Other donations 9,465 9,465 10,593 15,100 25,693 Gifts in Kind 2,800 l.W•,440 2,800 i.N,920 Iwo 4. RAISING FUNDS 30 Dec 2024 to 31 Dec 2025 25 Dgc 2023 to 29 Dgc 2024 Direct fundraising costs Direct slafl costs Isee note 71 Allocation of support costs (see note 61 16,684 7,891 54,342 12,403 4,931 13h29 5. CHARITABLE ACTIVITIES rant Programmes 30 Dec 2024 to 31 Dec 2025 25 Doc 2023 to 29 Dec 2024 Grants lo orgallisations- under £3,000 £IOO donalions to Stage two applicants Payments to organisations that assist with shortlisting Workshops to support organisations Other direct grant costs IIT software, travel elcl Direct slafl costs (see note 71 AIIDcation of support costs (see nole 61 541,040 325,309 5,700 5,630 5,020 3,500 1,872 1,164 10,057 60,504 47,187 24,806 39,450 KFC Foundation provided180 grants of £3,000 to Youth organisations in the period Ilasl period129 grants of £2,500- £3,0001 KFCYF Annual Report 128 2025
KFC YOVTII 11]TESTOThEHNJJItWSTATEMDirs Period from 30 December 2024 to 31 December 2025 5. CHARITABLE ACTIVITIES (CONTINUED) Youth Hub Programm 30 Dec 2024 10 31 Dec 2025 25 Dec 202310 29 Dec 224 Youth Programrnes Middlesbrough hub runniTrg costs Irent, service charges, utilities, depreciation etcl Other direct Youth Hub costs (IT software, travel elcl 13,037 3,043 143,798 35,389 37,837 Direct staff costs (see note 71 99,529 51,878 Allocation of support costs (see note 61 43,411 54,243 Wi mm 30 Dec 2024 to 31 Dec 2025 25 Dec 202310 29 Dec 2W24 Hatch programme development and delivery Other direct Hatch costs (IT software, travel, recruitment etcl Direct staff costs (see note 71 Allocation of support costs (see note 61 90,630 36,074 114,791 43,411 284,9( 6. SUPPORT AND GOVERNANCE COSTS 30 Dec 202410 31 Dec 2025 25 Dec 2023 to 29 21r24 Direct slalf costs (see note 71 HR and recruitment 57,049 48,g91 62 2,274 Slaff training and wellbeing Slaff Iravel and subsistence 5,104 2,714 3,614 4,351 IT and telephones Depreciation Legal and professional fees Insurance 2,752 9,448 2,235 276 3,567 1,780 992 Bank charges Other expenses 995 714 7,022 9,286 KFCYF Annual Report 129 2025
KFC YOVTII TOTHE FIPI4NtJALSTAThIDirs Period from 30 December 2024 to 31 December 2025 6. SUPPORT AND GOVERNANCE COSTS (CONTINUED) Governance costs 30 Dec 2024 to 31 2025 25 Dec 21r23 to 29 Ilec 21r24 Dirpct slafl costs Isee note 71 Tiuslee travel, training and meeting costs Audit lees- current period Audit fees- prior period 21,888 6,490 2,483 15,480 13,020 68 TDTAL SUPPORT AND GOVERNANCE COSTS 124ml £3S,708 support and governance cos15 relate to restricted funds in the period12024.. £nill. This relates to KFC UK&I funding towards support slafl salaries and Yuml funding towards a Business and Technology Analyst. Support and governance costs have been apportioned between activities based on estimate ol staff time. Reconcilialion of apportionment of support and governance cosl 30 Dec 2024 to 31 Dec 2025 25 Dec 2tr2310 29 Dec 2tr24 Raising Funds Isee note 41 Grant programmes (sep note 51 Youth Hub programmes (see note 51 Employability programme (see note 51 12,403 4,931 24,806 39,450 43,411 54,243 43,411 124,051 98,624 7. SALARIES AND WAGES DISCLOSURES (a) Staff costs Staff costs durinq the period were: 30 Doc 2024 to 31 Dgc 2025 25 Doc 2023 to 29 Doc 2024 Wages and salaries Social security costs Pension costs 351,705 130,588 30,281 12,563 26,117 11,395 154,546 At the year end, there were a total of12 staff12024.. Four). Three staff members costs were cross charged from KFC12024: Two) and nine stall members were employed directly by the charity 12024.. Two). KFCYF Annual Report 130 2025
KFC YOVTII TOTHE FIPI4NtJALSTAThIDirs Period from 30 December 2024 to 31 December 2025 7. SALARIES AND WAGES DISCLOSURES (CONTINUED) Ib) Staff numbers The average number of persons employed during the period ended 31 Decetnber 2025 was lline12024.. four). 1¢) Higher paid $taff No employees earnt over £60,000 in the period12024.' none). Id) Key management personnel The key management personnel of the Founéation comprise of the Trustees and three staff members rnaking the executive team. The total amount of employee benefits lincluding ernployer pension contributions and employer national insurance contributions) received by key management personnel for their services to the Foundation was £164,84412024: £43,332). le) Apportionment of slaff costs Direct staff costs have also been apportioned based on an estimate of staff time. 30 Dec 202410 31 De¢ 2025 25 De¢ 2023 to 29 De¢ 2024 Raising Funds (see note 41 Grant programmes (see note 51 Youth Hub programmes (see note 51 Employability programme (see note 51 Support costs (see note 61 Governance costs (see note 61 54,342 60,504 47,187 99,529 51,878 114,791 57,049 48,991 21,888 6.490 408,113 ,546 8. FIXED ASSETS Leasehold improvements Fuiniluie & Fittinys Computer Equipmenl Total Cosl Al 29 December 2024 2,800 181 194.711 Additions 166,390 21,321 7,000 At 31 December 2025 166,390 21,321 9,800 Depreciation At 29 December 2024 276 Charge lor the period 28,325 5,544 2,235 36,104 At 31 December 2025 28,325 5,544 2,511 36.1 Not book Va05 At 29 December 2024 2,524 2,524 At 31 Doc•mbff 2026 ,7n KFCYF Annual Report I 2025
KFC YOVTII TOTHE FIPI4NtJALSTAThIDirs Period from 30 December 2024 to 31 December 2025 g. DEBTORS 31 Dec 2025 29 Dec 224 Trade debtors 188,008 129,003 Amollnls due from KFC 21,256 29,737 Prepayments and accrued incorne Other éebtors 56,355 35,837 1,582 12,550 10. CREDITORS 31 Dec 225 29 De¢ 2024 Trade creditors 3,027 4,170 Amounts due lo KFC 54,619 54,754 Accruals 21,675 17,000 Tax and social security Other creditors 7,783 5,314 1,651 505 11. RESTRICTED FUNDS Period Irom 30 Dec 2024 to 31 Dec 2025 Perfod fmm 25 Dec 2023 to 29 Dec 21r24 Balance 30 Dec 2024 Balance 31 Dec 2025 Balance 25 Dec 2023 Income Expendfture Balance 29 Dec 2024 Income Expendlture Comic Relief 1,040 11,0401 14,9991 1,380 13401 1,040 ThDrnlree Academy Middlesbrough Hub programmes 15,100 10,101 15,100 15,100 6,468 14,0531 2,415 Hatch programme Irotal assets 698,700 1239,3711 16,140 70IM 1249h63) 4T1845 460,329 Comic Relief: This was the final payment to Comic Relief from our previous partnership. Thorntree Academy: Money was raised and matched by KFC UK&I in 2024 to be spent on Thornlree Academy, for celebrations, activities and youth programtnes with the school. Middlesbrough hub programmes: This includes £3,500 lor our youth club in school holidays, £2,493 for food programmes and £475 towards an inlergenerational cafe. Hatch proyramme: £512,933 was received from Yuml and £IBO,767 Irorn KFC UK&I to fund delivery of the Hatch employability programme during 2025 and 2026. The restriction covers the direct deliv8ry of the programme, support Eosts, and the development of the charitls infrastructure, including impact measurement and CRM development. £6,000 was received from Shoes lor Crews towards the programme. KFCYF Annual Report 132 2025
KFC YOVTII TOTHE FIPI4NtJALSTAThIDirs Period from 30 December 2024 to 31 December 2025 12. DESIGNATED FUNDS Designated funds represent unrestricted funds which the trustees have sel aside for specific future purpose& At the balance sheet dale, total designated funds amounted to £931,00012024- £nill made up as follows- £234,000 designated for Year 2 granl funding commitments, expected to be paid during 2026. £170,000 designated towards the renovation of a second youth hub, planned for 2027. £200,000 desiqnated for first-year Dperaling costs of the second youth hub, relating to the 202712028 financial yeaf. £327,000 designated for second-year operating costs ol the Middlesbrough Youth Hub. These designations reflect the trustees, current intentions and may be re-designated should circumstances change. 13. ANALYSIS OF NET ASSETS BETWEEN FUNDS 31 Dec 2025 29 D•c 2024 Unrestricted General fund Unrestricled De$ignaled fund Restricted Total funds funds 31 Dec 2025 Unr8stricl8d Restricted Total funds General fvnd lund$ 29 Dec 224 Fund balances al period end are represented by.. Fixed assets 161,131 161,131 472,845 ITf2.264 2,043,503 (88,755) 181,7431 181,7431 471845 1844M 1*4284 I98 2,524 2,524 Current assets 1,368,419 931,000 16,140 2,059,643 188,7551 14. GRANT COMMITMENTS Multi-year gran15 are subject lo additional reporting and due diligence requirements being met by the recipients. They are therefore not included as a liability in the financial slalemenls until the requirements are met. Future grants for the next financial period total £234,000.12024: £210,000) 15. OPERATING LEASE The Foundation entered a live-year lease on 30 July 2024 for the Middlesbrough Youth Hub at Resource Cenlre, Meath Street, Middlesbrough, TSI 4R Y. There is an annual break clause on 30 July each year. At 31 December 2025 the total commitment is as follDWS- 30 De¢ 2024 to 31 De¢ 2025 25 2023 to 29 D•c 2024 Leasehold buildings- up to l year 33,252 27,692 @kfcyouthfoundationuk www.kfcyf.org.uk KFCYF Annual Report 133 2025