The trustees present their annual report and financial statements for the period ended 13 September 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's 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).
Merger announcement
We are pleased to announce that, effective 13 September 2024, Pestalozzi International Foundation (PIF) merged with Pestalozzi World Children’s Trust (PW). PIF's assets have transferred to PW and the newly unified organisation will support PW’s existing programmes operating under the name Pestalozzi International.
Since 1995, PW has supported over 37,000 children in Zambia, Nepal, and India, with a particular focus on refugee communities and gender equality.
The merger represents a strategic decision to amplify our collective impact. By unifying resources and expertise, Pestalozzi International will be better positioned to provide holistic education and essential vocational skills to the brightest children from the most disadvantaged backgrounds globally.
Pestalozzi International will be the only international NGO in the World implementing a modern interpretation of Pestalozzian principles in the Global South, rooted in local cultures and relevant to their societies. Together we will honour the Swiss and UK Pestalozzian legacy.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Objectives
PIF promotes the educational philosophy of Johann Heinrich Pestalozzi (1746 - 1827), of which the principal component is the concept of a balanced programme of education 'for the head, heart and hands'.
PIF awards scholarships and educational opportunities to exceptional 16–19-year-olds who are academically bright, but have limited educational prospects. All these young people have demonstrated their enthusiasm for helping to make a difference in their communities and the wider world.
From 1997 until 2019 PIF students spent the two years of their scholarship residing in a multicultural, multi-faith community in East Sussex, UK. From the academic year 2019/20 to 2024/25 Pestalozzi scholars have been studying the International Baccalaureate as residential students at UWC Atlantic, South Wales and since 2022 at UWC Mostar, Bosnia and Herzegovina. The colleges are part of the United World Colleges International (UWCI) network. UWCI embraces a very wide range of nationalities within its student body helping them to understand and embrace their differences, breaking down cultural and religious barriers.
Since 2023, PIF has partnered with Samaanta Foundation in Nepal to provide scholarships to Secondary Education Examination graduates from poor socio-economic backgrounds, enabling them to complete a 2-year +2 programme. In Zambia, PIF partnered with Chipembele Wildlife Education Trust to employ a Zambian educator, whose primary focus is to support the students participating in the Aspiring Conservation Leaders (ACL) programme. Both programmes are reviewed regularly to evaluate their impact.
A PIF scholarship gives young people an opportunity they would not otherwise receive – the chance to develop their potential and make a real and lasting difference in the world. To facilitate this, in 2019 PIF’s trustees inaugurated the Pestalozzi Development Fund with the intention to provide seed funding to enable Pestalozzi alumni to set up their own projects or social enterprises. The trustees undertake a rigorous review of every application and award grants to those projects that they believe will deliver the real and lasting differences in the communities that Pestalozzi alumni serve.
UWC Updates and Successes
2023 – 2024 saw our fourth cohort graduate from UWC Atlantic with excellent outcomes achieved by each of the students. All the students gained higher education placements in the US:
Given College of the Atlantic, Maine
Tenzin Macalester College, Minnesota
Sayra Lake Forest, Illinois
Tashia Oberlin College, Ohio
Jugani St. Olaf, Minnesota
2024 also saw the graduation of the first 3 Pestalozzi-UWC Scholars from UWC Mostar, Bosnia and Herzegovina. They too gained scholarships to continue their higher education in the US:
Garang St. Olaf College, Minnesota
Desang Lake Forest, Illinois
Pringgo Lewis and Clark College, Oregon
We are extremely proud of the students and their achievements and look forward to following the next chapter of their educational journey.
PIF-UWC scholar, Aman, from Nepal, made possible through the Dare to Dream matching programme and UWC Atlantic, will conclude his studies in 2025. He is one of the students participating in the pilot Systems Transformations Programme at UWC Atlantic. Aman was also selected to attend the Villiers Symposium in Switzerland and the Yale Young Global Scholars Programme, US in the summer of 2024.
Aman and a fellow student received a $2,000 grant from the Go Make a Difference Fund for their H2Ope for Kachorwa project. They plan to install 4 vital hand pumps to benefit the 580-strong Kachorwa village community in Nepal.
Chipembele Wildlife Education Trust, Zambia
Chipembele Wildlife Education Trust is focused on the advancement of the education of children and young people in the conservation and preservation of the environment and its wildlife. PIF have provided an annual donation of £10,000 a year for 2 years to support CWET’s ongoing work in Zambia. The donation has been used to employ a Zambian educator, whose primary focus will be to support the students participating in the Aspiring Conservation Leaders (ACL) programme.
Samaanta Foundation, Nepal
Samaanta Foundation is a Nepal-based not for profit organisation that promotes equality and empowerment by providing higher education opportunities to meritorious Secondary Education Examination graduates from poor socio-economic backgrounds. The Foundation provides comprehensive fellowships to cover educational costs and helps create an enabling environment for their advancement. PIF has provided a donation of £15,000 (2023: £5,000) to support Samaanta Foundation’s ongoing work in Nepal. The donation has been used to support six fellows to complete a 2-year +2 programme.
Pestalozzi Development Fund Grants (PDF)
PIF continues to support alumni with seed funding via the PDF, scaling back to fund one project per year. The board scrutinises the longevity and sustainability of projects to ensure that the projects have a chance to either grow or sustain. Projects have in the main been successful; however, a few have encountered challenges. We remain keen on supporting projects that address the Sustainable Development Goals.
This year’s grant, amounting to £5,000, was made to the Oneureka Foundation, founded by alum Pravin (’11) will use the grant to expand its activities. This exciting initiative aims to transform the lives of rural students through skill-building and educational development workshops. The programme will empower first-generation learners in India to access higher education opportunities, ensure successful career transitions, and foster leadership development and academic excellence.
Achievements and performance
PIF provided scholarships for 5 students (2022-2024 from Belize, India, Tibet, Zambia, and Zimbabwe) to attend UWC Atlantic and 3 at UWC Mostar (Bhutan, Indonesia, Uganda – Sudanese refugee). All have completed their IB Diploma courses and secured full scholarships to continue their higher education in the US. College destinations include Lake Forest, St. Olaf, Macalester College, Oberlin, College of the Atlantic and Lewis and Clark.
The 6 students supported through the Samaanta Foundation partnership have completed the first year of their studies. In Zambia, the Youth Leadership Coordinator at CWET has supported 6 young people to successfully complete the Aspiring Conservation Leaders programme in November 2023. After a review of the programme structure and content, a new cohort of 12 has been selected and will pursue the ACL programme during 2024.
Regular reports and updates are received from alumni, via social media, thus helping the Trustees measure and monitor the outcomes of the scholarship programme and its impact on society. Measuring impact continues to be an important aspect of our work and demonstrates how our alumni are making a difference in the world. The ongoing contact with alumni has resulted in further applications to the Pestalozzi Development Fund and success stories for the Pestalozzi Newsletter and social media channels.
Pestalozzi alumni continue to secure undergraduate places at universities around the world as well as funding to study for Masters degrees and PhDs at institutions including London Metropolitan University, John Glenn College of Public Affairs at Ohio State University, University of Notre Dame (Australia), University College London, John Hopkins Bloomberg School of Public Health, and Memorial University Newfoundland.
Volunteers and fundraising
The trustees would like to record their thanks to the volunteers who have been able to support the charity. Furthermore, the trustees remain grateful for the ongoing support of all who provide PIF with much-needed funding in what continues to be a challenging time for many organisations.
The trustees are extremely grateful to trusts, foundations, regular givers, and alumni, along with trustees and staff for all their support during the year.
The trustees seek to ensure that all fundraising activities by PIF are undertaken with integrity and in a highly professional manner. PIF does not engage external professional fundraisers or commercial participators.
PIF’s focus is on providing its supporters and stakeholders with information about the students and alumni via regular newsletters, social media, and occasionally undertaking speaking engagements to groups. PIF seeks to develop new contacts as well as maintaining good relationships with existing supporters.
When individuals or groups raise funds for PIF, we seek to instil in these individuals and groups, standards of fundraising equivalent to those applied to its own campaigns. PIF strives to adhere to recognised fundraising standards as set by the government and related bodies, in particular The Charities (Protection and Social Investment) Act 2016.
PIF does not indulge in, nor tolerate, aggressive campaigning. Furthermore, to protect vulnerable people and other members of the public we do not share database information. We are pleased to report that no complaints about our fundraising have been notified to the trustees during the year.
Total income for the period amounted to £169,729 (2023: £187,792) and included £71,598 (2023: £112,653) received from legacies. There were total outgoings of £268,394 (2023: £676,127). A total of £261,554 (2023: £665,973) was expended on the student programme, representing 97% (2023: 98%) of expenditure. Net resources for the year showed a deficit of £98,665 (2023: £488,335).
On 13 September 2024, net assets amounting to £1,027,359 were distributed to the new unified entity, Pestalozzi International.
Following the merger with PW on 13 September 2024, and the distribution of all of the net assets of the charity to the new unified entity, Pestalozzi International, the trustees have resolved to wind up the charity. This is expected to happen within 12 months of the expected date of sign-off.
The accounts have therefore been prepared on a basis other than that of a going concern.
Reserves policy
The trustees have long recognised the need to hold reserves sufficient to ensure that the costs of each two-year scholarship or partnership commitment are fully covered. Changes to the scholarship programme ensure that student numbers can be flexed up or down to match resources.
Prior to the distribution of net assets to the new unified entity, Pestalozzi International, the charity held free reserves of £1,027,359. As at 13 September 2024, the charity has no reserves (31 August 2023: £1,126,024).
Investment policy
The liquid assets of PIF held prior to the merger comprised cash held in bank current and deposit accounts to meet the charity's short- and medium-term needs. Generally, the trustees adopt a low-risk investment strategy.
Risk
With most of the income derived from voluntary contributions, funding remained the principal challenge facing PIF during the period. In 2019 the estate in Sedlescombe was sold and PIF entered into an agreement with UWCI to provide fully funded scholarships for students meeting PIF’s selection criteria. The new scholarship programme requires a smaller team encompassing fundraising, marketing, alumni liaison, and student selection with some administrative support. The staff complement was a headcount of 3 people in 2024 (3 in 2023) delivering approximately 2 for the majority of 2024 (2 in 2023) full time equivalent hours.
The Board of Trustees were responsible for all matters that had previously been delegated to subcommittees. A risk register noted potential areas of risk and their severity. A rolling programme of review was undertaken by the staff and the Trustees and systems, and procedures were established to manage identified risks.
Pay policy for senior staff
PIF has sought to ensure that its remuneration policy and practices are compatible with effective risk management. This has been done done by embedding the following principles into its Pay Policy:
Remuneration is compatible with the risk management and risk tolerance of the charity
Remuneration supports the charity strategy, objectives, values, and long-term interests
Employees in senior positions have appropriate authority and are remunerated adequately in line with their roles.
This policy aims to attract and retain people with the right mix of skills and experience who share the charity’s values and are prepared to work together as a team. To put this policy into practice, appropriate levels of remuneration must be considered. The Trustees benchmark the pay of senior staff taking account of the nature and location of the charity's work.
The trustees maintained oversight and control over all staff salaries to ensure pay levels remain fair and reasonable. Full time staff received 36 days annual leave per calendar year, which included public holidays. This was adjusted pro rata as required for part time personnel and joiners/leavers. Staff were invited to join the organisation’s auto enrolment pension scheme when reaching the eligibility criteria.
The trustees approve and review annually the general principles of the remuneration policy. Salaries are reviewed annually, but must be affordable given the financial performance of the charity.
Constitution
Pestalozzi International Village Trust (PIVT) was constituted and incorporated in England and Wales on 12 June 2003 and on 1 September 2003 took over the activities, assets, and liabilities of the Pestalozzi Children's Village Trust (PCVT), which had been formed under a Trust Deed dated 30 November 1957. In April of 2019, following the sale of the Pestalozzi Village, the charity registered a change of name to Pestalozzi International Foundation (PIF) to reflect the nature of its operations more accurately. PIF is both a registered charity (1098422) and a limited company (04797376).
The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:
A minimum of four meetings of the Board of Trustees are held during the year. Additional meetings are scheduled as required.
The skills, interests and expertise of the Trustees are reviewed regularly, and any skills gaps are addressed through training and recruitment. The Board reviews applications for membership to the Board of Trustees. It considers the skill sets required for the sound governance of the charity and succession planning within the Board of Trustees. Each Trustee shall retire from the third annual general meeting following the commencement of his or her term of office. Trustees must step down from the Board when they have served for three consecutive three-year terms.
There is a formal induction and training programme for Trustees, and a regular review of governance procedures. All Trustees are made aware of relevant governance documentation and are provided with training opportunities as required.
The Trustees, who have overall responsibility for the charity, delegated the day-to-day operational management of PIF to the senior staff member i.e., the Chief Executive Officer for strategic planning and the Student Scholarship, Alumni Liaison and Development Fund Manager for Student Programme related matters. The Office Manager is responsible for administrative matters.
Restructuring has continued this year, with the selling or disposal of assets that are no longer needed by the organisation. From 16 April 2024 the organisation moved to a virtual office arrangement, with the last remaining member of staff moving to remote working.
The digitisation of historical documents is almost complete, with a few historical documents. It is hoped that these can be placed at The Keep, Lewes, where other documents are already held. Everyday spending has been reduced as far as possible whilst remaining compliant. The Office Manager, Lesley, left the charity on 13 June. A replacement has not been recruited.
Staffing
As Chief Executive Officer (part-time), Eddie West-Burnham continued to focus the future direction of the charity. Mags Alexander (SS, AL and DF Manager) continued to be responsible for the charity's marketing as well as other duties required to support the daily operations of the charity. Both employees have transferred to Pestalozzi International.
Lesley Russell-Dean, Office Manager (part-time) resigned from her post with effect from 13 June 2024 to pursue a career in surveying. We thank Lesley for her dedication and support during her second term with the charity. Joanna Mozley, Finance Officer (part-time) left the organisation on 13 September 2024.
Nigel Ford has continued to provide support as the IT and Database volunteer when required, for which we are incredibly grateful.
In April 2024, Mark Stanton was re-elected to the Board of Trustees.
Associated organisations
The Trustees are indebted to the organisations and individuals who have supported PIF with the delivery of its aims and objectives, particularly UWCI for facilitating the implementation of the scholarship programme, as well as Samaanta Foundation and Chipembele Wildlife Education Trust for their partnership.
The Trustees are especially appreciative of the generous support of PIF's Patron, HRH The Duke of Gloucester KG GCVO and for the active and informed interest that he and the Duchess continue to take in the work and development of PIF.
Future Plans
No further students have been selected to attend UWC colleges with the last student intake graduating in 2025. While the partnership with UWCI has provided access to a world-class education and a transformational experience for the Pestalozzi-UWC Scholars, the cost of this opportunity per student was deemed to be very high and would be difficult to sustain without a significant increase in charitable income.
The merger with Pestalozzi World Children’s Trust brings four important strategic advantages
Unified Resources: By consolidating our resources, we can operate more efficiently and effectively, ensuring that more funds go directly to the children and communities we serve.
Enhanced Impact: The merger will allow us to expand our programmes, reaching more children in more regions, particularly where the socio-economic need is most acute.
Continued Excellence: We will continue to provide high-quality education through our established programmes, such as the Future Leaders Programme and SkillsHub, ensuring that our students receive the support they need to thrive.
Collective strength of our alumni: Our alumni are the best custodians of Pestalozzian values and ethos. Blending the lived experience of PIF and PW alumni will provide new opportunities for alumni to take up positions of leadership to define the future direction of Pestalozzi International in serving its mission.
Pestalozzi International will honour and preserve the legacy of both PW and PIF. PIF, established in 1957, operated the renowned Pestalozzi Children’s / International Village in Sedlescombe, Sussex until 2019. This offered scholarships in the UK to children from the Global South, and subsequently at United World Colleges in Europe and the UK. Since 1995, PW has supported over 37,000 children in Zambia, Nepal, and India, with a particular focus on refugee communities and gender equality.
The merger is underpinned by a rich history of collaboration and cooperation as PIF alumni have been instrumental in shaping PW’s initiatives across Asia, exemplifying the altruistic spirit that defines children raised in the Pestalozzian ethos.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Pestalozzi International Foundation (the charity) for the period ended 13 September 2024.
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.
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.
The statement of financial activities includes all gains and losses recognised in the period. On 13 September 2024, the charity merged with another charity, with net assets distributed to the new merged entity at the date of the merger. Pestalozzi International Foundation will be dissolved within 12 months of the expected date of approval of the financial statements, therefore all activities are discontinued.
Pestalozzi International Foundation is a company, limited by guarantee
The charity's registered office is F8 Worth Corner Business Centre, Turners Hill Road, Crawley, RH10 7SL.
The charitable activities of the charity is to promote the educational philosophy of Johann Heinrich Pestalozzi, by awarding scholarships to exceptional 16-19 year olds who are academically gifted by have limited educational prospects in their home countries.
The financial statements have been prepared for the 379-day period to 13 September 2024, whereas the comparative period for the year to 31 August 2023. This is due to the charity merging with another charity on 13 September 2024 (for more information, see note 11). As a result, the comparative period amounts presented in these financial statements will not be entirely comparable.
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Pestalozzi International Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
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 £1.
On 13 September 2024, the charity merged with another charity, Pestalozzi World Children's Trust, with a name change for the combined entity to Pestalozzi International. The net assets of the charity have been distributed to the new merged entity as at the date of the merger, and Pestalozzi International Foundation will be dissolved within 12 months of the expected date of approval of the financial statements.
The accounts have therefore been prepared on a basis other than that of a going concern.
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
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.
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 are allocated on the portion of the asset’s use.
Cash and cash equivalents include cash in hand and deposits held at call with banks.
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.
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.
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.
Costs of fundraising events
Other direct costs
The average monthly number of employees during the period was
The trustees and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the charity are considered to be key management personnel. As noted in note 13, no Trustee received any remuneration during the year (2023: £Nil) and the total remuneration in respect of the Senior Management Team is £91,247 (2023: £35,910).
On 13 September 2024, the charity merged with another charity, Pestalozzi World Children's Trust, with a name change for the combined entity to Pestalozzi International. Both entities share the same charitable aims, and all assets, liabilities and funds have been combined via a distribution of net assets to the new combined entity.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
During the year, no trustees received any remuneration or other benefits (2023: £Nil).
During the period ended 13 September 2024, trustee expenses have been incurred of £346 (2023: £386), being travel and parking costs for 1 (2023: 1) trustee.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The charge to profit or loss in respect of defined contribution schemes was £2,720 (2023: £2,816).
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.