Charity registration number 1141069
Company registration number 06581421 (England and Wales)
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr Michael Lewis
Mr Stuart Fiertz
Mr M Bergman
Dr Serra Kirdar
Mr Edward Williams
Mr Konstantin Von Unger
(Appointed 28 February 2023)
Mr Stephen Zinser
(Appointed 1 January 2023)
Charity number
1141069
Company number
06581421
Registered office
PO Box 75769
London
SW1P 9ER
Auditor
Landau Morley LLP
325-327 Oldfield Lane North
Greenford
Middlesex
UB6 0FX
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
CONTENTS
Page
Trustees report
1 - 8
Statement of Trustees responsibilities
9
Independent auditor's report
10 - 12
Statement of financial activities
13
Balance sheet
14
Statement of cash flows
15
Notes to the financial statements
16 - 25
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The Trustees present their annual report and financial statements for the year ended 31 December 2022.

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Institute for Strategic Dialogue (the company) for the year ended 31 December 2022. The Trustees confirm that the annual report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

 

STRUCTURE, GOVERNANCE AND MANAGEMENT

 

Constitution

 

The company is registered as a charitable company limited by guarantee (registered charity number 1141069) and was set up by a Memorandum of Association on 30 April 2008.

 

The charity is constituted under a Memorandum of Association and is a registered charity.

 

Method of Appointment or Election of Trustees

 

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

 

Organisational Structure and Decision Making

 

The Institute for Strategic Dialogue (ISD) has a Board of Trustees that meets twice a year (until 2022), moving to three times a year from 2023. There is a Chair of the Board and Treasurer. The Institute also has an active Finance Committee, made up of the Chair and Treasurer, which meets regularly and works closely with the Chief Executive Officer (CEO) and Chief Operating Officer (COO).

 

Responsibility for day-to-day management matters and the implementation of policy is delegated to the CEO, within a clearly understood framework of strategic control. The CEO is supported by a leadership team and senior management team responsible for the execution of the organisational objectives. All Trustees and Staff are required to report any potential or actual conflicts of interest immediately to the Chair and/or CEO.

 

Risk Management

 

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

 

Public Benefit

 

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’. All of the activities that are undertaken by the charity are for the advancement of the objectives and the activities that are undertaken by the charity to further its charitable purposes are for the public benefit.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Objectives and activities

 

The Institute for Strategic Dialogue (ISD) is an independent ‘think and do tank’ that studies and develops policy and operational responses to the rising challenges of hate, polarisation and extremism. Combining research and analysis of disinformation, hate and extremism with government advisory work, training, capacity building and educational programmes, ISD has been at the forefront of forging real-world, evidence-based responses to the challenges of disinformation, extremism and polarisation.

 

The principal objects of the charity and company are:

 

STRATEGIES & ACTIVITIES FOR ACHIEVING OBJECTIVES

 

Since its formation, ISD has been at the forefront of solutions that combat extremism, hate speech and disinformation. At a time when these pose immediate threats to safety, security and democratic civil culture and institutions, ISD is working to enable individuals, organisations and nations to turn the tide.

 

ISD’s work is delivered through three types of activity:

 

  1. RESEARCH & ANALYSIS - ISD combines sector-leading expertise and research in global extremist movements with advanced digital analysis that identifies and tracks disinformation, weaponised hate and extremism in real time. Our Digital Analysis Unit has been at the forefront of analysing audiences, networks and content to accurately interpret the threat of disinformation, hate and extremism online. This, combined with ISD’s ongoing anthropological research, has ensured that ISD has consistently been ahead of the curve in predicting developments at the nexus of disinformation and extremism. Our research informs responses to these emerging challenges, and shapes policy-makers’ and the public’s understanding of evolving threats.

  2. ACTION PROGRAMMING - ISD innovates, trials and scales cutting-edge interventions that empower cities, practitioners and civic leaders to mitigate hate, polarisation and disinformation. From our digital education and communications programmes, to our training and direct interventions with at-risk individuals, we build the resilience of communities on and offline. We work to empower and facilitate civil society, fostering networks of community groups and influencers to take the lead, applying their granular expertise and credibility in a way that delivers impact at scale. ISD has pioneered the application of data, technology and marketing tactics to mount a proportional response to extremist messaging.

  3. POLICY & ADVISORY SERVICES - ISD provides strategic advice, policy support and training to local and national governments and multilateral institutions worldwide, giving them the data, expertise and support needed to deliver evidence-based policy and programming. We lead inter-governmental policy initiatives on extremism, polarisation and digital regulation that optimise counter-extremism and integration policies and programming and safeguard democracy. ISD also provides high-level digital policy input to the tech sector to harmonise efforts with governments and civil society.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Achievements and performance

Polarisation, hate, extremism and disinformation continued to have a profound impact on society throughout 2022, presenting real and immediate threats to cohesion and democracy worldwide. We achieved our charitable objectives in the year through three core operating areas: research and analysis; policy and advisory services; and action programming.

During 2022, ISD’s research teams published work showing how extremists, conspiracy networks, hate groups and authoritarian states borrow from each other’s playbooks and amplify each other’s narratives. ISD’s work showed how profits are being made from hate and disinformation and how social media products and algorithms are supercharging everything from electoral disinformation to misogyny. In 2022, our teams helped safeguard elections in the US, France, Kenya, and Australia; protect targeted communities from harassment and violence, and countered conspiracy and disinformation on Ukraine, climate, migration and public health. Our digital policy team used this insight to move the needle on tech platform action and regulation. Where bad actors seek to exacerbate division and undermine trust, we worked to deliver programming to meet the evolving challenge.

The following areas of programming constituted particular highlights of the organisation’s work in 2022:

Research & Analysis

 

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

We continued research on the war throughout 2022, creating a resource page on the Ukrainian war to provide analysis of the evolving threat landscape to policymakers, the media and wider public. This included the first analysis of TikTok’s role in the info war; a dissection of pro-Kremlin operation IStandwithRussia; analysis of a Chinese-linked network supporting Russia; and numerous breakdowns of Russian state me dia’s circumvention of sanctions. Our expertise featured prominently in the media landscape, with Sasha Havlicek appearing on Sky’s prime-time programme The Great Debate and BBC Radio 4’s Today programme to discuss the war. We collaborated with the Washington Post to debunk viral misinformation on TikTok; had our investigation of atrocity denial in Bucha covered by the Guardian; worked with BBC News to analyse networks of Vladimir Putin ‘superfans’; spoke to Deutsche Welle about RT’s success in the Arabic-language information war; gave comment to Al Jazeera on the pro-Kremlin troll army Cyber Front Z; and helped the New York Times understand Russia’s information war past and present. Building on these insights, our teams have launched counter disinformation education and communications programming in countries heavily targeted by Russian propaganda.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -

Policy & Advisory

 

Outside the Western context, we produced impactful research on the influence of Salafi-jihadist groups and other extremist actors in the Middle East and Africa. Our report highlighting Facebook’s failure to remove terrorist content from their platform in Kenya was covered by AP News, and saw Amnesty International release a statement calling on both Meta and the government to take action. We also released one of the most comprehensive studies of Islamic State’s social media ecosystem completed to date, and ISD collaborated with the Syria Campaign on a report looking at the human costs of disinformation spread about the Syria conflict. Our Executive Director for Asia, the Middle East and Africa gave comment to POLITICO and Washington Post on the poor moderation of terrorist content in the region.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -

Action programming

 

In 2022, we continued fruitful collaborations with partners such as Nordic Safe Cities through our Together for Safety series, which focused on Safeguarding Local Democracies and Safe City Governance and Regional Alliances. We also worked with new partners, such as the University of Denver’s Colorado Resilience Collaborative, and with the Bertelsmann Foundation, a collaboration that produced a graphic animation of key mayoral decision points during and in the wake of the 2018 attack at the Tree of Life Synagogue in Pittsburgh, Pennsylvania. Stronger Than Hate, narrated by the former Mayor of Pittsburgh Bill Peduto, was one of five shorts nominated for Cannes Shorts’ Best Animation Film this year. The SCN and ISD were also represented at a range of events, including at the Summit of the Americas in LA, where the SCN hosted a roundtable on city-led violence prevention.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -

MEDIA AND COMMUNICATIONS

During 2022, ISD published 64 report-style publications along with 92 Digital Dispatches in order to inform the public, policy makers and other stakeholders on trends and analysis on hate, extremism and disinformation. In addition, we launched our Explainers section - a glossary on different extremist narratives, movements and actors - of which we published 16 entries covering topics from the 'Great Replacement' theory to the Reichsbürger movement behind the failed coup in Germany.

In 2022, international news outlets sought ISD experts and analysis during important moments such as Russia-Ukraine War, the global freedom/trucker’s convoys, multiple elections, Elon Musk’s Twitter takeover, the UN’s Climate Change conference (COP27), the coup plot in Germany, and more. In February, when Russia invaded Ukraine, we spoke to the New York Times, the BBC, the Washington Post, AP News, Al Jazeera, Politico, and others about the online war over information and the different pro-Kremlin tactics at play. We provided analysis to the Guardian and Slate on the Bucha atrocities, and CEO Sasha Havlicek featured on BBC Radio’s news and current affairs program, Today, and also joined Sky News’ the Great Debate answering the question, “can the West stop Vladimir Putin?”

Our analysis on the US elections featured in Bloomberg, the Washington Post, POLITICO, Axios, VICE News, and TIME, among others. Other US topics that garnered coverage included the overturning of Roe v. Wade, covered by Axios and Deutsche Welle; the Buffalo shooting, covered by NBC, ABC and BBC; and the FBI’s search of Donald Trump’s residence, covered by The Hill, ABC and NPR. A report we published exposing the state of Islamic State content on Facebook in East Africa prompted a response from Amnesty International and was covered by the BBC, Washington Post and AP. Work we did on anti-LGBTQ+ hatred was covered by VICE, CNN and Insider, and we spoke to NBC News, Metro Weekly and Washington Post, on the far right’s reaction to the Colorado LGBTQ+-bar shooting. ISD researchers provided commentary to Bloomberg, AP News, the Washington Post, Euronews, on Musk’s takeover later in the year, and featured in MIT’s Technology Review talking about the risk of losing Twitter’s digital and human history records. During COP27, we featured in Politico, and provided journalists with daily monitoring reports on mis- and disinformation trends through our participation in the Climate Action against Disinformation coalition. Our experts commented to Newsweek, Reuters, Vice News, and more, on the failed coup plot to overthrow the German government and its conspiratorial connections. ISD’s CEO Sasha Havlicek also delivered high-level appearances, including at Eradicate Hate 2022 and alongside world leaders at the Christchurch Call Leaders’ Summit, as well as being an expert panellist at Defence Disrupted and the Institute for Economics’ 2022 Global Terrorism Index presentation. Her interview for the new Paramount Plus docuseries Indivisible: Healing Hate also premiered in 2022.

OPERATIONS

2022 was a significant year for ISD’s institutional growth and operations. In addition to a number of exciting new hires to our UK team, we also achieved significant expansion of ISD’s sister organisations ISD US and ISD Germany. ISD recognises that our global impact is best achieved by effective co-working between ISD UK and all other ISD entities, and so ISD invested in the growth and training of these teams as well as improved inter-entity working across all ISD’s geographies.

During 2022, we actively managed approximately 45 concurrent projects valued at £14.2 million throughout their lifecycles, with £6.01 million generated in 2022 income. We made substantial improvements in project management, developing a versatile Project Management Toolkit and introducing dashboards for workstream oversight, promoting transparency, ownership, and accountability. Additionally, we strengthened business development oversight through focused weekly meetings and an improved automated system.

We recruited ISD’s first Managing Director in Spring 2022, mandated to drive a number of priority institutional projects including building our capacity for internal knowledge and information flow and boosting management processes to support our growth and internalisation. She also provided leadership and management support to our senior teams. Meanwhile, our COO expanded her team to bring on additional operations staffing to support this growth, including a Head of Finance and additional HR and finance staff in the UK, Germany and the US.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -

FUTURE PLANS

 

In 2023, ISD will continue to deliver its work internationally. We anticipate the start or continuation of many new multi-year grants and projects, particularly in relation to research and the Strong Cities Network. In fundraising, 2023 will see significant expansion of ISD’s work in the United States through its sister organisation, the Institute for Strategic Dialogue-US.

 

In September 2023, ISD’s co-Founder and CEO Sasha Havlicek will move from London to Washington DC to drive the growth of the global group of organisations from there. Once she is no longer an employee of ISD UK, responsibility for day-to-day management matters and the implementation of policy will be delegated from the Board directly to Sarah Kennedy, the Chief Operating Officer, and Arabella Phillimore, the Managing Director, within a clearly understood framework of strategic control.

Financial review

The results for the year show that there was net expenditure of £788,258 (2021: £100,960). The total incoming resources for the year were £6,014,739 (2021: £6,829,100).

 

The charity has been able to achieve its objectives as reserves have been maintained to enable it to do so.

 

At 31st December 2022, the unrestricted reserves amounted to £402,343 and restricted reserves amounted to £479,465.

Reserves Policy

The Trustees closely monitor the level of free reserves available to ensure there is sufficient financial flexibility in place. It is the Trustees’ policy to accumulate reserves for future activities. The free reserves (net of restricted funds) available as at 31st December 2022 were £359,083 (2021: £167,244) -  providing in excess of 3 months’ administration costs in the following financial year at projected expenditure levels.

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to support the current level of expenditure and to continue in operational existence for the foreseeable future.

 

Going Concern

 

After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees report was approved by the Board of Trustees.

Mr Michael Lewis
Chair of Trustees
17 October 2023
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF TRUSTEES RESPONSIBILITIES  
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -

 

The Trustees, who are also the directors of Institute for Strategic Dialogue for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the Trustees are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in operation.

 

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF INSTITUTE FOR STRATEGIC DIALOGUE
- 10 -

Opinion

We have audited the financial statements of Institute for Strategic Dialogue (the ‘company’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year 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 Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

-

the information given in the financial statements is inconsistent in any material respect with the Trustees report; or

-

sufficient accounting records have not been kept; or

-

the financial statements are not in agreement with the accounting records; or

-

we have not received all the information and explanations we require for our audit.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF INSTITUTE FOR STRATEGIC DIALOGUE
- 11 -
Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, the Trustees, who are also the directors of the company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

 

 

 

 

 

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

 

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF INSTITUTE FOR STRATEGIC DIALOGUE
- 12 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mike Haberfeld FCA (Senior Statutory Auditor)
for and on behalf of Landau Morley LLP
25 October 2023
Chartered Accountants
Statutory Auditor
325-327 Oldfield Lane North
Greenford
Middlesex
UB6 0FX

Landau Morley LLP is eligible for appointment as auditor of the company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2022
2022
2022
2021
2021
2021
Notes
£
£
£
£
£
£
Income from:
Charitable activities
3
1,512,851
4,501,888
6,014,739
699,797
6,129,303
6,829,100
Expenditure on:
Charitable activities
4
1,373,927
5,429,070
6,802,997
841,646
6,088,414
6,930,060
Net incoming/(outgoing) resources before transfers
138,924
(927,182)
(788,258)
(141,849)
40,889
(100,960)
Gross transfers between funds
28,377
(28,377)
-
(16,779)
16,779
-
Net income/(expenditure) for the year/
Net movement in funds
167,301
(955,559)
(788,258)
(158,628)
57,668
(100,960)
Fund balances at 1 January 2022
235,042
1,435,024
1,670,066
393,670
1,377,356
1,771,026
Fund balances at 31 December 2022
402,343
479,465
881,808
235,042
1,435,024
1,670,066

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 14 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
43,260
67,798
Current assets
Debtors
11
1,100,016
1,312,387
Cash at bank and in hand
303,805
864,113
1,403,821
2,176,500
Creditors: amounts falling due within one year
12
(565,273)
(574,232)
Net current assets
838,548
1,602,268
Total assets less current liabilities
881,808
1,670,066
Income funds
Restricted funds
13
479,465
1,435,024
Unrestricted funds
402,343
235,042
881,808
1,670,066

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2022, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 17 October 2023
Mr Michael Lewis
Trustee
Company registration number 06581421
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
17
(537,215)
(433,779)
Investing activities
Purchase of tangible fixed assets
(23,093)
(34,226)
Net cash used in investing activities
(23,093)
(34,226)
Net cash used in financing activities
-
-
Net decrease in cash and cash equivalents
(560,308)
(468,005)
Cash and cash equivalents at beginning of year
864,113
1,332,118
Cash and cash equivalents at end of year
303,805
864,113
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
1
Accounting policies
Charity information

Institute for Strategic Dialogue is a private company limited by guarantee incorporated in England and Wales. The registered office is PO Box 75769, London, SW1P 9ER.The members of the company are the Trustees named on legal and adminstrative page. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to support the current level of expenditure and to continue in operational existence for the foreseeable future.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the company.
1.4
Income
Income is recognised when the company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

 

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

 

All expenditure is inclusive of irrecoverable VAT.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
20% straight line method
Fixtures and fittings
25% reducing balance method
Computer and office eqipment
33.33% straight line method

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
3
Charitable activities
2022
2021
£
£

Programmes

4,501,888
6,129,303

Core

1,512,851
699,797
6,014,739
6,829,100
Analysis by fund
Unrestricted funds
1,512,851
699,797
Restricted funds
4,501,888
6,129,303
6,014,739
6,829,100
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
4
Charitable activities

Programmes

Programmes

2022
2021
£
£
Staff costs
3,394,871
2,269,923

UK travel and hospitality

12,093
14,170

Travel costs (staff)

216,365
185,091

Travel costs (participants)

296,506
53,211

Occupancy costs and room rental

59,368
27,760

Outside professional services

959,301
1,716,451

Communications and technology

39,809
51,852

Grants and awards to other organisations

825,182
1,052,027
5,803,495
5,370,485
Share of support costs (see note 5)
999,502
1,559,575
6,802,997
6,930,060
Analysis by fund
Unrestricted funds
1,373,927
841,646
Restricted funds
5,429,070
6,088,414
6,802,997
6,930,060

Direct Costs include the following:

 

Outside Professional Services: Includes technical and specialist consultants and suppliers such as filmmakers, content producers, educational resource specialists, trainers, researchers and translation services.

 

Communications and Technology: Includes telecommunications equipment, telephone calls, IT hardware, software, webhosting, social media and digital costs.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
5
Support costs
Support costs
Governance costs
2022
Support costs
Governance costs
2021
£
£
£
£
£
£
Staff costs
392,915
-
392,915
900,437
-
900,437
Depreciation
6,591
-
6,591
558
-
558

UK travel and hospitality

881
-
881
3,234
-
3,234

Travel costs (staff)

4,401
-
4,401
10,711
-
10,711

Occupancy costs and room rental

322,701
-
322,701
313,198
-
313,198

Outside professional services

181,005
-
181,005
162,713
-
162,713

Office costs and communications

60,419
-
60,419
88,461
-
88,461

Exchange loss/(gain)

(10,451)
-
(10,451)
24,815
-
24,815

Depreciation

41,040
-
41,040
55,448
-
55,448
999,502
-
999,502
1,559,575
-
1,559,575
Analysed between
Charitable activities
999,502
-
999,502
1,559,575
-
1,559,575

In respect of the year ended 31 December 2022, of the total Exchange gain of £10,451 (2021: Loss £24,815), a gain of £1,040 (2021: Loss £18,249) is attributable to unrestricted funds and a gain of £9,411 (2021: Loss £6,566) is attributable to restricted funds.

 

Outside professional services costs include £20,000 (2021: £21,000) in respect of auditor's remuneration.

 

6
Auditor's remuneration
Fees payable to the company's auditor and associates:
2022
2021
£
£
Audit of the company's annual accounts
12,750
12,750
Other services to the group
- Audit of the company's subsidiaries
7,250
8,250
Total audit fees
-
-
7
Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the company during the year.
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
8
Employees

The average monthly number of employees during the year was:

2022
2021
Number
Number
51
48
Employment costs
2022
2021
£
£
Wages and salaries
3,787,786
3,170,360

Responsibility for day-to-day management matters and the implementation of policy is delegated to the Chief Executive Officer. Remuneration paid to the key management personnel of the charity in 2022 was £154,745 (2021: £150,208).

 

Of the employees whose emoluments exceed £60,000, 14 have retirement benefits accruing under defined contribution pension schemes, totaling £56,773 (2021: £42,811).

The number of employees whose annual remuneration was more than £60,000 is as follows:
2022
2021
Number
Number
In the band £60,001 - £70,000
8
6
In the band £70,001 - £80,000
2
2
In the band £100,001 - £110,000
-
1
In the band £120,001 - £130,000
1
-
In the band £160,001 - £170,000
-
1
9
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
10
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computer and office eqipment
Total
£
£
£
£
Cost
At 1 January 2022
39,226
25,479
157,899
222,604
Additions
-
-
23,094
23,094
Disposals
-
(4,692)
(22,620)
(27,312)
At 31 December 2022
39,226
20,787
158,373
218,386
Depreciation and impairment
At 1 January 2022
21,623
16,666
116,516
154,805
Depreciation charged in the year
7,845
5,197
27,998
41,040
Eliminated in respect of disposals
-
(3,526)
(17,193)
(20,719)
At 31 December 2022
29,468
18,337
127,321
175,126
Carrying amount
At 31 December 2022
9,758
2,450
31,052
43,260
At 31 December 2021
17,603
8,813
41,382
67,798
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
688,737
726,751
Other debtors
68,356
78,720
Prepayments and accrued income
342,923
506,916
1,100,016
1,312,387
12
Creditors: amounts falling due within one year
2022
2021
£
£
Other taxation and social security
94,854
81,241
Trade creditors
254,072
258,532
Other creditors
36,947
36,785
Accruals and deferred income
179,400
197,674
565,273
574,232
INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
13
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Balance at
1 January 2021
Incoming resources
Resources expended
Transfers
Balance at
1 January 2022
Incoming resources
Resources expended
Transfers
Balance at
31 December 2022
£
£
£
£
£
£
£
£
£
Restricted Funds
1,377,356
6,129,303
(6,088,414)
16,779
1,435,024
4,501,888
(5,429,070)
(28,377)
479,465

Restricted funds are funds donated to the charity to aid its work as an independent 'think and do tank' for the study and development of policy and operational responses to the challenges of hate, polarisation and extremism.

 

The transfers from restricted funds to unrestricted funds totalling £28,377 (2021: £16,779) relate to activities and funds that have ceased to meet the conditions required for Institute for Strategic Dialogue to continue to retain these funds in restricted funds.

 

INSTITUTE FOR STRATEGIC DIALOGUE
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
14
Analysis of net assets between funds

Unrestricted funds

Restricted funds

Total

Unrestricted funds

Restricted funds

Total
2022
2022
2022
2021
2021
2021
£
£
£
£
£
£
Fund balances at 31 December 2022 are represented by:
Tangible assets
43,260
-
43,260
67,798
-
67,798
Current assets/(liabilities)
359,083
479,465
838,548
167,244
1,435,024
1,602,268
402,343
479,465
881,808
235,042
1,435,024
1,670,066
15
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
237,823
237,823
Between two and five years
64,506
302,329
302,329
540,152
16
Related party transactions

Donations of £74,000 (2021: £60,049) were received during the year from the Trustees and from entities connected with the Trustees.

17
Cash generated from operations
2022
2021
£
£
Deficit for the year
(788,258)
(100,960)
Adjustments for:
Loss on disposal of tangible fixed assets
6,591
558
Depreciation and impairment of tangible fixed assets
41,040
55,449
Movements in working capital:
Decrease/(increase) in debtors
212,371
(475,562)
(Decrease)/increase in creditors
(8,959)
86,736
Cash absorbed by operations
(537,215)
(433,779)
18
Analysis of changes in net funds

The company had no debt during the year.

2022-12-312022-01-01falseCCH SoftwareiXBRL Review & Tag 2022.2065814212022-01-012022-12-3106581421bus:Director12022-01-012022-12-3106581421bus:Director22022-01-012022-12-3106581421bus:Director32022-01-012022-12-3106581421bus:Director42022-01-012022-12-3106581421bus:Director52022-01-012022-12-3106581421bus:Director62022-01-012022-12-3106581421bus:Director72022-01-012022-12-31065814212022-12-31065814212021-12-31065814212021-01-012021-12-3106581421bus:FRS1022022-01-012022-12-3106581421bus:Audited2022-01-012022-12-3106581421bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP