We have great pleasure in presenting our Annual Report and Financial Statements for the year ending 30th September 2024.
It has been another busy and successful year for the Foundation. During the financial year, we distributed £236,473 to 35 community organisations, across a great variety of different causes.
It has never been our strategy to align ourselves with a particular need or challenge. We have instead sought to focus on the smaller charities and charitable organisations in the county, those without significant fund-raising abilities, who so often do such fantastic and important work, but find it really hard to raise the money which is so vital for their activities. We see it as our job to know as much as possible about these charitable entities and individuals, so that we can in turn help those who want to give, and make sure that they can direct their charitable donations in the most effective way.
This year we were particularly pleased to work with Worcestershire County Council to create the Strengthening Worcestershire Fund; we worked in partnership with the Council to support disadvantaged local communities continuing to experience the ongoing effects of the cost-of-living. Over the course of the summer, we raised £16,000 to combine with £100,000 from the Council, which was distributed after the close of the financial year to a broad range of charities doing some of the most vital and impactful work in the County, together with additional funding received and raised post the reporting date of £31,000 and £40,000 respectively.
In November 2023, we set up our Friends of the WCF membership scheme, to coincide with our 20th anniversary celebrations. The scheme is targeted at our generous donors – individuals, trusts and corporates, and the funds raised will be split between our new Community Fund and unrestricted funding.
As always, we were delighted to work in support of the High Sheriff Fund, with funds raised from a variety of events and initiatives. A total of £43,200 was distributed in small grants to eleven community groups selected by the High Sheriff.
In May 2025, David Shaw stepped down as Chair of the Board of the WCF, and I was appointed to take his place. I want to take this opportunity to thank David for his fantastic contribution as our Chair; his long and distinguished record of public service provided him with invaluable experience to guide the WCF, including through the challenging times of Covid, and I am most grateful that he has agreed to continue to serve as a Trustee.
May I also take this opportunity to thank our generous donors, without whom we would not be able to provide the support across the County which is so badly needed; our Ambassadors for continuing to promote the Foundation; our Trustees who give so generously of their time and wisdom; and not least our small executive team, who work so hard to help the WCF make the maximum impact across the County. We look forward to working with you all in the year to come.
The trustees present their annual report and financial statements for the year ended 30 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 Foundation'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)" (effective 1 January 2019).
The Foundation's objects are to channel endowments and other funds to local voluntary and community groups within the County of Worcestershire. We are an accredited member of UK Community Foundations, a national association which promotes and supports 47 community foundations across the UK.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Foundation should undertake.
The movements on the reserves managed by the Foundation are described in the notes accompanying the financial statements.
During the year, Worcestershire Community Foundation (WCF) achieved the following significant impacts to the benefit of our communities county-wide through the delivery of funding as follows:
We distributed £236,473 to 35 community organisations
We worked in partnership to deliver funding from the following endowment-based and flow-through funds:
Flow-through Funds
The Strengthening Worcestershire Fund - A new flow-through match fund set up in partnership with Worcestershire County Council to distribute excess funds from a Govt. community grant scheme. WCF received a total of £100,000 from WCC matched by funding of £16,000 raised from other charitable funders, corporates and individual donors. This was distributed after the close of the financial year together with additional funding received and raised post the reporting date of £31,000 and £40,000 respectively.
NHS Fund – A total of £163,000 to support mental health/wellbeing was distributed to a range of healthcare providers across Worcestershire, including Sandycroft, Worcs. Association of Carers, Young Solutions.
Endowment Funds
The High Sheriff Fund (HS Fund) - The fund generated income through fundraising events and initiatives to support the work of community groups selected by the HS; £43,200 was distributed in small grants to eleven local charities specialising in mental health, young people’s causes and homelessness, including Worcester Warriors Community Foundation and Wyre Forest NightStop.
Tom Jones Fund - In memoriam fund to commemorate a young student who tragically lost his life in 2018. This year we distributed £4,260 for projects relating to sport and young people, including a Festival of Sport and football kit.
WCF Community Fund - This fund is comprised of a number of small residual WCF funds which were combined in 2023 to create a new, more purposeful funding vehicle with a general remit, which is intended to support where other funds are unable to. It is recommended to distribute no more than 5% of its investment revenue value each year. In 23/24 it gave out a grant of £5k to support a Worcester Choral Society concert Mass in Blue.
Dr Carl Ellson Clinical Innovation Fund - An in memoriam fund commemorating Dr Carl Ellson, a much respected GP from the county. The fund was set up with the express aim of raising a certain level of income which will be allocated in an open bid process to a single healthcare organisation delivering the most innovative scheme to deploy the funding sustainably.
Friends of WCF – Our new WCF membership scheme was launched in November 2023 to coincide with our 20th anniversary celebrations. The scheme is targeted at individuals, other trusts and corporates, with the income raised divided between the Community Fund and unrestricted funding.
We are now actively working from a new 2024 -27 Development Strategy, with the aim of becoming a more resilient, inclusive and effective grant maker which can sustainably meet Worcestershire’s community needs. We are proactively developing existing and new funding relationships with donors and strategic partners to increase and improve our fundraising and grant-making impacts. This includes working with local agencies including Councils, the Police and the NHS, as well as corporate and individual donors and professional advisors. We have begun the process of developing a new legacy programme to support our endowment funding; at the same time, we must be cognisant of maintaining and developing strands of flow-through funding for immediate impacts to current challenges across the county.
The majority of the Foundation's income is obtained from donations, grant administration, and Government (Gift Aid and Grassroots).
Banking arrangements are placed with NatWest Bank plc.
The Foundation's endowment funds are managed by St James's Place and CCLA.
Incoming resources totalled £227,191 (2023 - £511,177) with expenditure of £341,121 (2023 - £496,367). The investment gains were £153,762 (2023 - gains £28,966) resulting in an increase in total funds of £39,832 (2023 - increase of £43,776) and total reserves of £1,855,835 - (2023 - £1,816,003) of which general reserves total £197,972 (2023 - £218,347).
It is the policy of the Foundation that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between six to twelve 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 Foundation’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the Foundation is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The Foundation is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 3 June 2003.
The Foundation acts as a conduit to local philanthropy, linking private and public funders with small community projects across Worcestershire. We are an accredited member of UK Community Foundations, a national association which promotes and supports 47 community foundations across the UK.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The Board engages in an ongoing and pragmatic scan of potentially suitable Trustees seeking (a) knowledge of the sector; and (b) contacts which have the potential to yield significant donations. New trustees undergo an induction process to brief them on the organisation and their statutory obligations under charity & company law. Training for Board members is undertaken on an ad hoc basis as appropriate in order to ensure that the Board represents relevant skill sets for the effective functioning of the Foundation.
Training for Board members is delivered through specific items included on Board agendas and special sessions to concentrate on important topics. All training seeks to develop both individuals and the organisation as a whole.
The nature of the roles of the 2 employees are Director and Grants Officer. The average number of employees during the year was one (FTE); both posts are part-time. Financing and accounting support is contracted on a freelance basis.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Worcestershire Community Foundation Limited 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 Foundation 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 Foundation 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 Foundation 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 Foundation 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 Worcestershire Community Foundation Limited (the Foundation) for the year ended 30 September 2024.
Having satisfied myself that the financial statements of the Foundation are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the Foundation’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
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 Foundation as required by section 386 of the Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements 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.
Investments
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Worcestershire Community Foundation Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Kingsway House, 40-41 Foregate Street, Worcester, Worcestershire, WR1 1EE.
The financial statements have been prepared in accordance with the Foundation's [governing document], 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 Foundation is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the Foundation 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 Foundation 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.
Incoming resources are recognised to the extent that there is a right to consideration and is recorded at the value of the consideration due.
Resources expended are recognised on an accruals basis and are summarised under functional headings on a direct cost basis, inclusive of any irrecoverable input VAT.
Expenditure relating to charitable activities comprise of all expenses that are incurred in the running of the company and all related activities.
Governance costs are costs that are directly attributable to the management of the company's assets, organisational procedures and legal procedures for compliance with statutory requirements.
Fixed asset investments are stated at market value.
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
The Foundation 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 Foundation's balance sheet when the Foundation becomes party to the contractual provisions of the instrument.
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. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Other charitable income represents fees received directly by the Foundation for management of funds on behalf of others.
Financial liabilities are derecognised when the Foundation’s contractual obligations expire or are discharged or cancelled.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the Foundation’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
Investments
Other costs
Grant funding
Other costs
Grant funding
Direct fund costs
Cost of events
Payments to other bodies
Fundraising and administration costs
Bank charges
Insurance
Independent examination and accountancy
Legal and professional fees
Governance costs includes payments to the Independent Examiner of £2,000 (2023 £2,370) for examination fees.
None of the trustees (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed for travelling expenses (2023- None).
The average monthly number employees during the year was:
The trustees, who receive no remuneration (note 8), together with the development director, and grants officer whose remuneration is shown above, are deemed to be the key management personnel.
Transfers include management fees as permitted by the agreements made with donors on the receipt of funds for distribution. Total fees transferred for the year were £39,606 (2023 - £70,478) together with expenditure of £nil (2023 -£29,844).
In the prior year, on 27 April 2023, the Trustees sought to consolidate various existing funds in order to create the Community Fund, it was felt that this would ensure better use of the restricted funding available. The total value of the transfers from existing restricted funds to the Community Fund was £316,785. The trustees were satisfied that the use of the transferred funds complied with the remit of the original donations/funds.
The Foundation operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Foundation in an independently administered fund.
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.
Movements on investments
* Operated on a flow-through basis.
Glencora - this fund is used to promote activities that benefit the environment, enhance lifestyles of the older generation and further the arts with a particular emphasis on music
Comic Relief - a community grant of which 50% must be spent on sports projects that increase access to sport and exercise for people who face social exclusion and isolation. The remaining funds will be used to support community groups running projects that work towards the following outcomes:
increase local services build skills of local people
increase community cohesion
respond to local economic needs
Surviving Winter - Represents monies received to enable individuals to meet energy bills in the winter months.
High Sheriff - Funds raised by events held by the High Sheriff to support a wide range of community based projects.
Mazak, Core Services, and Worcester Arts Fund - These monies were given to the charity under the government matching scheme. Funds are held to promote the activities of the charity and arts in the Community.
Youth social action fund - The Youth Social Action Fund, now referred to as the iWill Fund is sponsored by a number of bodies and charities - Step Up To Serve, Big Lottery Fund and the Government Office for Civil Society. Community Foundations strive to match this investment, which Worcestershire Community Foundation have done, with the support of funds raised through the Worcestershire Ambassadors.
The idea of this initiative is to provide opportunities for young people to develop their personal skills and, in particular, engage with their local communities; the programme particularly supports opportunities where the initiatives are inspired and led by the young people themselves.
Other - Funds given by a number of donors for use in the Community rather than core services pooled together into other funds. This includes the 100 Club, a fund developed as a way of local businesses providing financial support to the Charity over a fixed term up to five years. The fund will be used to support a wide range of community based projects, but does not have any specific priorities.
Tampon Tax - funds received from the Tampon Tax fund for distribution to local groups and charities.
Mental Health - The establishment of a Mental Health Fund to help those in need in Worcestershire.
Salary Fund - monies received to fund the post of development director.
Covid-19 - Fund - comprises of funds received via the National Community Foundation for distribution to those in the region in need as a result of the Covid-19 pandemic, and funds raised from businesses and individuals in the community through a community appeal.
Green Canopy Queen's Jubilee - A UK wide tree planting project for the Queen,s Jubilee
Tom Jones Memoriam Fund- Set up to celebrate the memory of a young student Tom Jones.
The main emphasis will be on helping to provide sports-related opportunities to all children and young adults in schools, colleges and universities and working closely with local sports groups – reflecting Tom’s passion for sport.
Ukraine Welcome Fund - Supporting Ukrainian refugees who are being hosted by local families across the county.
Arts Council England Jubilee Fund - supporting voluntary and community groups to develop
creative and cultural activities as part of the Queen’s Platinum Jubilee celebrations.
Queen's Commemoration Fund- supporting a range of community projects across Worcestershire.
October Half Term Grant Fund- supporting those in need over the half term break from school.
the Community Fund - This is an endowment-based fund which is formed from an amalgamation of former funds/donations. Its broad remit is to fund community projects which cannot be funded by other available funds.
Inclusive Communities Fund - A flow-through fund developed in partnership with West Mercia Police & Crime Commission to fund projects addressing minority and marginalised groups. See the report of the trustees for further detail.
Community in Crisis Fund - National funding via UKCF to support food/warm spaces & white goods provision for small community groups.
NHS Trust - Funding from the Worcestershire Acute Hospitals NHS Trust supporting infrastructure development of the new VCSE Alliance for Worcestershire alongside some mental health services.
Friends of Worcestershire Community Foundation - launched in November 2023, targeted at individuals, other trusts and corporates, with a portion of the income attributable to the Community Fund.
Strengthening Worcester - a collaboration with Worcestershire County Council to distribute excess funds from a Government community grant scheme.
At the reporting end date the Foundation had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
During the year the Foundation entered into the following transactions with related parties:
Donations are received from trustees to support the work of the Foundation. These are freely given.
In 2023 a donation was pledged by one of the Trustees’ charitable trusts and was included in debtors. The pledge was satisfied in 2024.
The Foundation had no material debt during the year.