The trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, 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)" (effective 1 January 2019).
Action for Happiness is a charity which promotes mental health and wellbeing through the provision of information, evidence-based resources, public events, educational services, training and community activities.
Our vision is a happier and kinder society, with far fewer people suffering due to mental ill health or social isolation and far more people feeling good, functioning well and helping others. We are backed by leading experts and all of our activities are grounded in the latest scientific research.
Please note: The Action for Happiness project was originally launched in 2011, based within The Young Foundation (Registered Charity 274345). In 2017 Action for Happiness was established as an independent Company Limited by Guarantee (10722435) and registered charity (1175160) and on 31 December 2017 all assets, liabilities and Intellectual Property were transferred to the new entity.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Delivered the first year of our 5-year Strategic Plan agreed by Trustees for 2023-2027.
Grew our overall online reach to 25m people, with huge increases in social medial engagement and website traffic up 20% with 9.2m page views.
Grew our member community by a further 69,000 people to a total of 609,000 members.
Increased our in-year engagement to 65,000 people getting actively involved in activities.
Continued providing our successful action program of monthly calendars and daily action ideas, which have been used by over 40 million people.
Continued to grow our app community to 225,000 registered users.
Held 22 live events with guest speakers attracting over 65,000 participants.
Reached a new online program milestone of over 100,000 participants taking our ‘10 Days of Happiness’ program, delivering over 1 million personal actions.
Began development of a new platform which will allow new courses to be created and delivered more flexibly in future.
Launched a new suite of short video reels, creating and sharing over 100 new reels and reaching millions of new social media accounts.
Finalised and launched new self-directed online Volunteer Training program with new vetting and review systems and successfully recruited 1,500 new volunteers.
Scaled up delivery of our volunteer-led “Happiness Habits” 6-week community course with 80 courses delivered successfully.
Continued to support and deliver our network of volunteer-led online groups.
Continued to support primary schools with the ‘Keys to Happier Living’ Toolkit.
Continued to support on-going local hubs including in Northampton and Brighton.
Continued to provide education, resources and training for organisations.
Continued to embed our policy on Diversity, Equity, Inclusion and Belonging (DEIB).
Continued to provide and enhance Safeguarding support, signposting and reporting.
The year’s activities resulted in a small net surplus of £35,832 compared with a much larger deficit in 2022, slightly exceeding our expectations as we anticipated expenditure might exceed income again.
The total amount transferred by Gift Aid from the subsidiary company Action for Happiness Trading Limited for the year amounted to £15,216. Minimal funds are retained in the subsidiary, the operating expenses of which are paid by the charity.
The principal sources of income to Action for Happiness during 2022 were:
Philanthropic giving by Action for Happiness supporters
Voluntary donations made by people attending live events and local courses
Grant funding
Income from Educational Services provided to organisations
It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to at least six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charitable company’s current activities while consideration is given to ways in which additional funds may be raised. The level of reserves as a proportion of operating costs reduced in 2023 but remains slightly higher than usual. Reserves will continue to be put to use in 2024 and these are expected to return to the normal level of around six month’s expenditure over the next two years.
The charitable company maintains a Risk Register which is reviewed regularly by the Board. The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.
Outreach
Maintain our significant recent increases in social/website reach, by continuing to create and share new social media and video content.
Grow the AfH member community by a further 100,000 members, via various outreach activities including via new approaches to digital marketing.
Continue to deliver our interventions which have the strongest track record in reaching large numbers of people, notably our Website, Calendars with daily actions), Talks and App.
Engagement
Increase our levels of community engagement, helping more of our existing members to take the next step in terms of involvement and actions.
Enhance our systems and dashboards for tracking user engagement.
Maintain and enhance our existing 10 Days of Happiness online program.
Develop and try out a new online program using existing/proven content.
Community-Building
Continue to grow our volunteer community, aiming to recruit 1,800 new volunteers.
Deliver an additional 150-250 volunteer-led Happiness Habits courses during the year.
Continue to support our local Action for Happiness groups and local hubs.
Explore options for getting more people back to face-to-face courses/groups where possible.
General
Continue to provide and adapt our Safeguarding processes and support as needed.
Grow our team capacity to respond to increasing demand for services.
Raise additional funds to support our future scale-up plans.
The charitable company is a company limited by guarantee.
The trustees, four of whom are also the directors for the purpose of company law, and who served during the year were:
The Board of Trustees has overall responsibility for the fulfilling the charity’s aims.
The recruitment and appointment of Trustees was based on ensuring an appropriate balance of expertise, skills and commitment to the mission of the charity. One of the original Action for Happiness co-founding Trustees stepped down during the year as planned. The Board of Trustees also anticipates appointing one or more additional Trustees during the years ahead to bring in additional skills and expertise as required.
Day to day management of the operation of the charity is delegated from the Board to the Chief Executive (Mark Williamson). The Board of Trustees meets at least once per quarter and the Chief Executive reports regularly to the Trustees on the operations, plans and financial position of the organisation, as appropriate.
Action for Happiness is supported by a range of contractors and volunteers to fulfil its mission. Contractors are recruited on a fixed term basis with the skills required to fulfil specific needs. All volunteers are carefully screened and supported in fulfilling their roles, for example in running courses in their local communities.
Small company provisions
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Action for Happiness 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 charity 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 charity 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 charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the trustees on my examination of the financial statements of Action for Happiness (the charity) for the year ended 31 December 2023.
This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Action for Happiness is a private company limited by guarantee incorporated in England and Wales. The registered office is WeWork, 3 Waterhouse Square, 138 Holborn, London, EC1N 2SW.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements do not incorporate the results, assets and liabilities of the charity’s wholly owned subsidiary, Action for Happiness Trading Limited. Consolidated accounts have not been prepared as these would not be materially different from the single entity financial statements as presented.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
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 or grantors 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.
Cash donations are recognised on receipt. Other donations are recognised once the charity 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.
Resources expended are included in the Statement of Financial Activities on an accruals basis, once there is a legal or constructive obligation to make a payment.
Charitable activities include the cost of providing courses and hosting events, and include both direct costs and support costs relating to these activities.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
Support costs include central functions and have been allocated to charitable activities.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Investment in subsidiaries are measured at cost.
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.
The charity 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 charity's balance sheet when the charity 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.
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, 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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Irrecoverable VAT
The charity is not required to register with HMRC for VAT. All resources expended are recognised gross of VAT.
In the application of the charity’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.
Grants receivable
Event income
Course income
Educational services
Income from subsidiary
The charity owns 100% of the share capital of Action for Happiness Trading Limited which is a company limited by shares held for the purpose of delivering the charitable trading activities of the charity.
Costs of providing courses
Event costs
Educational services
Communication
Community development
Bank fees
General expenses
Online services
Printing and stationery
Travel
Rent
Insurance
Legal and professional
Independent examination
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year (2022: £nil). No trustees were reimbursed expenses during the year (2022: £nil).
The average monthly number of employees during the year was:
In addition to the 2 employees noted above, expenditure also includes payment to 2 subcontractors (2022: 2) giving a total workforce of 4 full time equivalents (FTEs)..
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
This represents the investment in the subsidiary company, Action for Happiness Limited, which is owned by the charity for the purpose of delivering charitable activities.
Details of the charity's subsidiaries at 31 December 2023 are as follows:
During the year the turnover of Action for Happiness Trading Limited was £65,246 and expenditure incurred was £50,030 resulting in a profit of £15,216. All of the profit was distributed up to the charity in the period.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Founders Pledge
Development and scale-up of new resources and services to support mental wellbeing for individuals and communities in response to the Covid pandemic.
The charity has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: