INKINDaccounts2011_V9colour.indd1 1 1/7/11 1:54

Transcription

report
and
financial
statements
INKINDaccounts2011_V9colour.indd1 1
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2010
Report
and Financial
Statements
for the year
ended 31
December
2010
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2010
Report and financial
statements for the year ended
31 December 2010
page
Reference and Administrative Details
6
Supporters
7
Vision, Mission and Key Achievements
9
11
Directors’ Report
Public benefit, objectives and activities
Achievements and performance
Financial review of 2010
Key lessons learned
Plans for the future
Structure, governance and management
Financial policies
Risk policy and management
Environmental policy
Directors and trustees
Independent Auditors’ Report
21
Statement of Financial Activities
22
Balance Sheet
23
Notes to the Financial Statements
24
Report and Financial Statements for the year ended 31 December 2010
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Reference and administrative details
Directors and Trustees
Christopher Hyman CBE (Chairman)
Stephen Howard
Allison Kirkby
Irwin Lee
Brian McBride
John Pattullo
Andrew Rubin
Sir Tom Shebbeare KCVO
G Truett Tate
Teresa Tideman
Principal and registered office
1st Floor
62-64 Cornhill
London
EC3V 3PL
Auditors
haysmacintyre
Fairfax House
15 Fulwood Place
London
WC1V 6AY
Bankers
Lloyds TSB
34 Moorgate
London
EC4N 8DL
Honorary Solicitors
Addleshaw Goddard
60 Chiswell Street
London
EC1Y 4AG
Honorary Solicitors
Mishcon de Reya
Summit House
12 Red Lion Square
London
WC1R 4QD
Tel: 020 7398 5510
Fax: 020 7398 5544
www.inkinddirect.org
Chief Executive
Robin Boles
Status
In Kind Direct is:
n
n
a company limited by guarantee, number 3155226.
a charity registered in the United Kingdom, number 1052679.
It is governed by a Memorandum and Articles of Association dated 16 January 1996,
as amended by subsequent Special Resolutions.
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Supporters
In Kind Direct gratefully acknowledges support in 2010 from many individuals and organisations by way of encouragement, donated
goods or services and direct funding. This support is provided by the people and organisations listed below:
Donated Goods
Clothing, Footwear & Sports
Goods
ACCO UK
adidas UK
Agent Provacateur
Andaz Hotel
Austin Reed Group
Banner Group
Barclays Bank
Berghaus
BG Group
Blacks Leisure Group
Boxfresh International
Dimensions
Douglas Read Shoes
Ellesse
Game Group plc
JD Sports
Luc Berjen
Mitre Sports International
MySpace
Next
Pentland Brands
Prerna Gupta
Rainbow Shoes
Silentnight Footwear
The North Face
Food & Other
Cafédirect
DS Smith
E C Group
Line Packaging and Display
Marsden Weighing Machine
Group (UK)
NHS Logistics Authority
Royal Devon and Exeter
Foundation Trust
Sara Lee Coffee & Tea UK
Single Source Portions
Tower Hamlets Homes
UK Biobank
Household Goods
Amazon.co.uk
Argos
Beiersdorf UK
Black & Decker
Bosch
British Thoracic Society
Bunzl Catering Supplies
Cavendish Textiles
Delphis Eco
Dexam International
Georgia-Pacific
Kimberly-Clark
McBride
Megaman UK
Meyer Group
National Mental Health
Development Unit
New Media Branding
Northmace & Hendon
Ocado
Pluswipes
Portmeirion Potteries
Procter & Gamble
Reckitt Benckiser
Richard Haworth
SCA Tissue Europe
Sunlight Service Group
The Meyer Group
The Royal Parks Foundation
Unilever UK
Vi-Spring
Wolseley
Office Supplies and
Equipment
Toys, Educational Products
& Books
Association of MBAs
British Blood Transfusion
Society
Demco Worldwide
Department for Education
Dr Richard Barnes
Dreamflight
Jiffy Packaging
Lloyds TSB
Microsoft
Newell Rubbermaid
No Smoking Day
Ricoh UK
SmartPool
South East England
Partnership Board
Classic Media
Frances Lincoln
Fuse
Godiva Chocolatier
JOI Group
Manhattan Toy
Mothercare
Paper Projects
Random House
The Disney Store
The Licencing Company
Topps Europe
Usborne Publishing
Vivid Imaginations
Toiletries, Personal & Baby
Products
Asda Stores
B3 International
Boots Group
Colgate Palmolive
General Welfare for the Blind
Gillette Group Europe
GlaxoSmithKline
Johnson & Johnson
KAO Brands Europe
L’Oréal
Lornamead
Lush
Mailway (Northern)
Molnlycke Health Care
Pacific Direct
Penhaligans
Sara Lee Home and Personal
Care
Wilkinson
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Donated Services
Addleshaw Goddard
Brunswick
Business in the Community
Lloyds Banking Group
Mischon de Reya
Mr & Mrs David Feld
Mr Chris Smart
Pentland Brands
Procter & Gamble
Ricoh
Salans
Secure Trading
Serco
The Walt Disney Company
Xerox
Financial Supporters
Andrew Bonar
Charitable Trust
Arnold Burton 1998
Charitable Foundation
Bank of America Merrill Lynch
Barr, Mr & Mrs Pat
Blackburn, Mr Jeffrey Michael
Bosenquet, Mr & Mrs Nick
Brown, Mrs Tanya Teasdale
Bunzl plc
Carpenter, Mr Oliver
Cecil Pilkington
Charitable Trust
Eranda Foundation
Esmée Fairbairn Foundation
Feld, Mr & Mrs David
Fidelity UK Foundation
Florence Turner
Charitable Trust
Lloyds Banking Group
Madeline Mabey Trust
Marsh Christian Trust
Maud Elkington
Charitable Foundation
McCormick, Mr & Mrs Roger
Morgan Charitable
Foundation
Mortimer, Ms Sarah
Nutt, Mr Anthony
Northwest Development
Agency
Ormsby Charitable Trust
Rooney, Mr Bryan
Rubin, Mr Andrew
Sainsbury’s
Santander UK Foundation
Serco
Simatos, Mr Benjamin
Our long-term partnership with In Kind Direct benefits P&G, the environment and
most importantly, those in need. Our support of In Kind Direct helps thousands of
charities and the millions of people they serve who might otherwise not benefit,
touching lives and improving life in communities that most need assistance.
Irwin Lee, Vice President & Managing Direct, P&G UK & Ireland
Sobell Foundation
The 29th May 1961
Charitable Trust
The Coutts Charitable Trust
The Jessie Spencer Trust
The John Pryor
Charitable Trust
The Reed Foundation
The Scotshill Trust
The Shears Foundation
The Walt Disney Company
The Whitaker Charitable
Trust
Trevellyan, Mr & Mrs Lance
Watkins, Mrs Mo
Wernick, Mr Lionel
Wilkinson, Mr & Mrs Nick
❛
❛
Gallacher, Mr Paul
Gallen, Mrs Carole
Gavshon, Mr & Mrs Rod
Gibbs, Mr Philip
Gillespie, Dr & Mrs Alan
Gill, Miss Sally
Grol, Mrs Tina
Hall, Mrs Celia
Hancock, Mr & Mrs Tim
Howard, Dr Dawn
Howard, Mr Stephen
Howell, Mr David
JR Corah Foundation
John Ellerman Foundation
Judge, Ms Julie
KPMG
Lalani, Mr & Mrs Sal
Langdon-Dixon, Ms Alison
Lintott, Mr & Mrs Tim
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Vision and Mission
Salvation Army – Scarborough
To improve the lives of millions of people as the leader in
the field of in-kind giving through matching surplus goods
in business to the needs of our growing network of charity
partners.
Mission
In Kind Direct significantly increases the flow of goods to UK
charities, through effective, efficient redistribution. We provide
an excellent, responsive service to our charity partners, and
through them help people in need both at home and abroad.
We inspire growth in corporate giving, promote responsible
business practices and divert usable goods from landfill.
Key Achievements 2010
11.9m in estimated retail value of goods distributed
£
to charities
n Equivalent to 3,681 pallets of goods donated for distribution
n 5,300 charities in the network – growth of 31%
n
The Salvation Army is an international charity and
in the UK is the largest most diverse provider of
social welfare services after the Government. The
Scarborough branch is one of 90 Salvation Army
branches registered with In Kind Direct and have
benefited from receiving toys, toiletries, nappies,
cosmetics and washing products for a wide range of
welfare projects.
❛
“The service of In Kind Direct and the
generosity of their donor companies are
crucial in helping us to support the most
vulnerable people in society. We receive a lot
of products from In Kind Direct in the run up
to Christmas - toothpaste, toothbrushes, soap
and small cosmetic items which we make up
into shoeboxes for homeless people. The toys
we receive are always really high quality and
great for our toddler group.”
Jackie Dartnall-Smith, Group Leader
Achievements to end of 2010
❛
Vision
101.7m in estimated retail value of goods distributed
£
to charities
n 8 ,400 charities registered to benefit from the service
n
Ceri Wootton, Community Affairs Manager, Home Retail Group ❛
❛
Home Retail Group receives hundreds of requests from charities wanting donations
of stock. By working with In Kind Direct at a national level, we know that our donations
can help many more charities than we could possibly hope to manage. We are proud
to be supporting In Kind Direct in making a difference to organisations that really
need our support.
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Directors’ report for the year ending 31 December 2010
The Trustees, who are also the directors of the charity for the
purposes of the Companies Act, present their annual report
and the audited financial statements for the year ended 31
December 2010.
Public benefit, objectives and activities
Founded by HRH The Prince of Wales in 1996, In Kind Direct
runs a unique service redistributing new surplus product from
manufacturers and retailers to UK charities. Since foundation,
we have been donated over £100 million of goods for
distribution from 850 different companies. Over 8,400 charities
have registered to benefit. In Kind Direct works for the public
benefit by ensuring that the expenditure of other charities
on essential goods is reduced, thus stretching their scarce
resources and enabling them to help millions of people in need
at home and abroad, while reducing environmental damage.
The trustees confirm that they have complied with the duty
in section 4 of the Charities Act 2006 to have due regard to
public benefit guidance published by the Charity Commission
on determining the activities undertaken by a charity. The
trustees are satisfied that the aims and objectives of the
charity, and the activities reported on can achieve the aims and
principles of public benefit.
Charities need a wide range of consumable goods to deliver
their essential services to disadvantaged people. Finding the
funds to pay for these goods is a huge struggle for many and
one which the economic downturn has only made harder
as available funding becomes more limited and demand for
services increases. At the same time as charities struggle,
manufacturers, retailers and wholesalers are sending the
very same perfectly usable goods that charities need to
landfill or external recycling, simply because they are surplus
to requirement, slight seconds or have small defects in the
packaging or branding.
In Kind Direct provides a single contact point for companies
with surplus goods to donate. We have the logistics
infrastructure to accept large quantities of goods, store and sort
and then deliver them directly to charities’ doors in response
to their needs and demands. We address brand protection
concerns by thoroughly vetting all charities within our network
and monitoring them to ensure they do not sell products
received. They must contractually agree to use goods received
in their operations or to give to the people they help. Charities
request goods via our online catalogue and the orders are
delivered to their doors. They pay a handling charge for our
service ensuring goods go only where needed, preventing
stockpiling, as well as providing an important contribution to
our costs.
The result is a practical, efficient solution which diverts usable
goods from being wasted and releases huge additional resource
into the voluntary sector. We are the only charity which
has taken on the administrative and logistical complexity of
providing this service for consumer goods across the UK.
In Kind Direct’s work currently touches the lives of over two
million disadvantaged people every year through our network
of charity partners, the vast majority of which are small and
work locally.
In Kind Direct’s impact is felt by charities in several ways:
S tretching limited budgets: By securing goods from In Kind
Direct, charities can stretch their budgets for the essential
goods they need by up to ten times.
n E
nabling charities to deliver additional and enhanced
services and projects: By securing goods for a handling charge
which is a fraction of the normal cost, charities are able
to carry out new services and improve those they already
deliver.
n R
educing charities’ need to fundraise: By saving funds,
charities reduce their need to fundraise and become more
financially resilient.
n
Achievements and performance
2010 was the third year of the ambitious strategic plan In Kind
Direct set out in 2008 for increasing the scale and sustainability
of our work. The plan focuses on four key areas: development
of our registered and active charity database; increasing the
flow of the right products; the efficiency and flexibility of
logistics; and a targeted fundraising & income generation
strategy.
Progress against objectives in each of these areas is set out
below:
1. Development of the registered and active charity database
In Kind Direct helps charities, voluntary organisations and social
enterprises of all sizes, tackling a huge range of issues. See
Fig 1 for analysis of the network at year end by focus area.
All charities benefiting are UK based.
In Kind Direct’s charity network grew by 31% over the course
of the year to stand at 5,300 partners by year end. More
charities used the service than ever before, 1,548 or 29% of our
network, up by 9% on 2009.
This growth demonstrates the demand and urgent need for
our service amongst charitable groups looking to save money
on core goods to deliver their work. This need is becoming
increasingly apparent as many charities are threatened with
both increasing demand for their services and reducing funding
brought about by the economic downturn and public funding
cuts.
11
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Women's support services (4%)
Alcohol/substance abuse (2%)
Arts, sport and heritage (5%)
Women's
Child sickness and disability 4%
Sickness and disability (11%)
Sickness a
Local com
Child/youth care (20%)
Local community initiatives (17%)
Job skills,
Housing a
Counselling (2%)
Elderly welfare (3%)
Family we
Emergency relief and development (3%)
Job skills, training and education (12%)
Environmental protection and animal welfare (2%)
Ethnic support groups (2%)
Housing and homelessness (7%)
Ethnic sup
Family welfare (6%)
Environm
Fig 1 Charities by focus area at 31 Dec 2010
Emergenc
Results from our survey of charity partners (Jan-Feb 2011
– 1,081 respondents) show the value that our partners attach
to the service:
communications materials. We improved the design of key
charity communications such as our weekly product email, and
introduced new targeted product-focused communications.
9 0% of charities said using In Kind Direct saved them money
n 96.7% of charities say they value our service
n 46% said that using In Kind Direct was helping them to
provide a better or enhanced service to the people they help
n 41% said that using In Kind Direct was helping them to
maintain services in the face of funding cuts
n 99% of charities would recommend In Kind Direct’s service
to other charities
To complement the product-focused communications we also
launched “Charity News” - a monthly e-newsletter to charity
partners which provides tips on getting the best out of product
donations and the In Kind Direct service as well as wider sector
news and features. Charities can also follow In Kind Direct
and receive product updates via our Twitter feed and we are
currently developing our Facebook presence.
Elderly w
Disability
n
n
Progress against our specific plans for 2010 was as follows:
n
Launch new website and e-commerce platform
A key achievement this year was launching a new website
and e-commerce system, along with updated integrated
business management software. The new site brings together
our public site and catalogue at www.inkinddirect.org . With
increased capacity and stability, the new catalogue is much
faster and easier for our charity partners to use, improving
their experience of finding and requesting products. The new
site includes a wide range of new functions which is helping us
further improve charities’ experience.
n
Rebrand and refresh all charity communication materials
With pro bono support from Pentland Group, we refreshed
our logo and branding and rolled this out across all of our core
12
Counselli
Commun
Child/you
Marketing to umbrella groups and parent charities
Child sick
Working with charity umbrella groups and parent charities
is an effective means for publicising our service to potential
partners. Among those we worked with in 2010 were: The
Small Charities Coalition, London Funders, City.comm, the
Foundation for Social Improvement and Local Giving. We also
began to target sub-sections of the third sector that will benefit
most from our service via organisations such as The National
Association of Toy Libraries and Homeless Link.
n
Arts, spor
Alcohol/s
utreach to new charity partners via events, mailings and
O
media work
We also continued to approach large charities with branches
already in our charity network to encourage additional
branches to join such as Action for Children, Groundwork, and
Age UK. We attended a variety of CVS charity fairs to increase
awareness of our service.
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Charity-facing marketing messages and collateral were
developed to make our third sector communications more
appropriate for a charity audience and the economic climate.
n
arket research on charity ordering behaviour and
M
requirements
We continued our programme of visits to charity partners
over the course of 2010 with over 60 visits undertaken by
staff, with a particular focus on meeting the 50 top-ordering
charities. As well as playing a role in monitoring charities to
ensure that goods are being used in line with our terms and
conditions, these visits allow us to gain a better understanding
of our charity partners’ work and needs both for reporting
back to donors and for ongoing development of our service.
n
2500
2000
1500
1000
500
0
Less than
£50,000
£50,000 £100,000
£100,000 £500,000
£500,000 £1 million
£1 million £5 million
Over £5 million
Fig 2 2010 charities by annual income band
Continue Retail Donation Initiative with Disney
Through our Retail Donation Initiative charities are
matched with UK Disney Stores. Charities collect in-store
surplus directly from their local Disney Store, building strong
partnerships with the stores and Disney employees which often
extend well beyond the receipt of surplus goods. In 2010 we
matched thirty Disney Stores, an increase from twenty-four in
2009.
n
3000
ontinue work in Burnley with other of The Prince’s
C
Charities
In Kind Direct is one of seven of The Prince’s Charities working
in partnership with Burnley Borough Council, local businesses
and other government and voluntary organisations to
regenerate Burnley. Before the start of the project in 2008, In
Kind Direct only had one Burnley charity in our network; today
we are working with fourteen charities including Burnley Shop
Mobility and Action for Autistic Spectrum Disorder.
2. Increase the flow of the right products
In Kind Direct solicits and accepts goods from a wide range of
manufacturers, retailers and other organisations. We develop
mutually beneficial multi-level relationships with our donor
companies, help them to identify where surplus may exist and
strive to be front of mind for any company which has product
to donate. We engage companies in the value of in kind giving
and aim to secure a range of the essential goods required by
charities. For a breakdown of the range of goods distributed,
see Fig 4.
In 2010 we received donations equivalent to 3,681 pallets from
114 companies. Whilst this was substantially behind the level of
donations received in 2009, this was in large part due to two
very large one-off product donations made in that year. 2010
donation levels were still above 2008 levels and represent our
second best year ever.
We were delighted that many of our longstanding donors
continued their steadfast support of our work in 2010 including
Procter & Gamble, Unilever, Colgate Palmolive, Home Retail
Group and Kimberly-Clark. More donors donated than ever
before in 2010 and 52 companies donated in 2010 which had
not donated in the previous year. Some examples of new
company donors were Asda, Lush, Austin Reed, McBride and
North Face.
Despite some promising opportunities for growth, we do
remain concerned that it is increasingly challenging to secure
quantities of products within core categories of need for our
charities (such as toilet tissue or laundry products). In large part
this is because companies are quite rightly looking to improve
efficiency within their operations and, at the same time,
maximise cash flow by prioritising making a commercial return
from residual stock that might otherwise be donated. Reduced
stock donations in our core categories is the key factor affecting
handling charge income received from charities.
We continue to work both to expand our reach with
companies not currently donating and to engage companies in
the value of donating surplus stock for charitable benefit.
Progress against our original plans was as follows:
n
Rebrand and refresh all donor marketing materials
Providing reports to donor companies on the impact of their
donations is an important way in which In Kind Direct highlights
the benefits of donating and builds relationships with donors.
We integrated the new branding and “brand icons” designed
by Pentland Group into all our communications materials. We
continued to improve these reports in 2010 and received good
feedback from donor partners.
13
1/7/11 1:54:43 pm
We also launched a new publication marking In Kind Direct
reaching the £100 million in value of goods redistributed to
charities milestone, which has been well received by goods
donors and funders alike.
n
Outreach to new donor companies via events, networking,
mailings, media work and work with intermediary
organisations such as trade associations
We carried out a range of outreach projects to new donor
companies. Encouraging referrals is perhaps our most effective
recruitment route and we were delighted to have opportunities
to speak and attend events held by existing donor partners
such as Disney and Pentland. We also took part in various trade
fairs and trade associations.
with appropriate “champions” to socialise the concept within
Government.
n
Implement office supplies affiliate scheme and explore
additional affiliate projects
In 2010 we launched our first affiliate scheme with Staples
Advantage through the trading subsidiary, enabling our charity
partners to access preferential pricing on a wide range of
office supplies – products which we generally find difficult to
source through donations alone. 527 charities signed up to
benefit from the scheme during the year. After making various
Cumulative Value of Goods Donated for Distribution £m
£m
n
F inalise report on the compelling economic, social and
environmental case for a company tax incentive
120
Following the change in Government and published reduction
in corporate tax rates, New Economics Foundation finalised
our third piece of research and report on the case for a
company tax incentive for product donations. This work was
funded by Bank of America Merrill Lynch. The report addresses
all the issues raised and questions asked during our stakeholder
consultation and includes a cost benefit analysis. Bringing in an
enhanced US style tax incentive would trigger a sea change in
company giving and would likely provide over a billion pounds
worth of goods to the charitable sector and the millions of
people they serve over a ten year period. Work now begins
100
80
60
40
20
0
2005
2006
2007
2008
2009
2010
Fig 3 Cumulative value of goods distributed
Work & Office
Toys
Sports
Nursery & Maternity
Household
Health & Beauty
Entertainment
Clothing & Footwear
£ million
1
2
3
4
5
6
Fig 4 Deemed value of goods distributed in 2010 by classification
14
1/7/11 1:54:45 pm
strategies required to deliver an efficient service for both our
donor and charity partners.
The Springboard Scotland Trust
The Springboard Scotland Trust in Motherwell
provides training to unemployed school leavers and
adults. The charity offers a variety of services, from
media courses and pre-vocational training to work
placements in fields such as construction or logistics.
In 2010, we improved performance against all our key
logistics measures. Our average handling cost per order fell to
£36.35 (2009: £39.46), ahead of our original target of £37.99.
Utilisation of warehouse space fell within our target of 80%
over the entire year. The cost per order improved because of
efficiencies implemented by the picking staff combined with
improved pricing negotiated with delivery companies.
“We’d normally have to wait months to afford
what we receive from In Kind Direct and our
core funding just does not cover. The items
help us to maintain and improve our service
to help unemployed people get the skills
and confidence they need to undertake
a work placement or succeed at
an interview.”
Liz Bryan, Manager
❛
❛
Our warehousing, pick and pack operation and courier
management is provided by a third party contractor, The
Service Business. We have a very strong relationship, working
together to continually improve performance.
improvements to the scheme with Staples, we plan to increase
this substantially in 2011 and look for other company partners
Cumulative
Value of Goods Donated for Distribution £m
in product areas which are difficult to source.
3. Efficiency and flexibility of logistics
Because of the quantity, nature and complexity of the products
we handle, we have unique challenges in processing stock
for distribution. Over our fourteen year history, we have
developed a deep understanding of the specific processes and
Our Warehouse & Logistics Liaison Manager, funded by Esmée
Fairbairn Foundation, continued to enhance our ability to
process more complex donations and broaden the range of
products available on the catalogue. A new apprentice scheme
has also improved our capacity in this area.
4. A targeted fundraising & income generation strategy
Fundraising
2010 was another strong year for In Kind Direct in terms of
fundraising and we exceeded our original year target of raising
£402,720. However we did not meet our key target of raising
sufficient funds to end the year with three months’ expenditure
in reserve because operational income from handling charges
fell significantly short of expectations.
individuals
Restricted funds
government
Unrestricted funds
business
trust
£0
50,000
100,000
150,000
200,000
Fig 5 In Kind Direct sources of funding
15
1/7/11 1:54:46 pm
Oxford Homeless Pathways
Oxford Homeless Pathways runs housing services
covering emergency accommodation, day services,
resettlement and second stage housing. Last year
the organisation helped around 400 people, not
just through providing accommodation but also
helping clients to re-establish a routine, rebuild their
confidence and access services such as
training courses.
❛
❛
“We need so many of the basic things
like toothbrushes and toothpaste. If we are
short of something I always turn to In Kind
Direct first.”
Nell Wimpenny, Administrator
Our programme of applications to trust and company donors
was the core of our funding success. Substantial trust donors
continuing to show confidence in our work included: The John
Ellerman Foundation, The Eranda Foundation, 29th May 1961
Trust, The Sobell Foundation, Esmée Fairbairn Foundation,
The Madeline Mabey Trust and Ormsby Charitable Trust.
Among company donors were Serco, Bunzl, Santander and
The Walt Disney Company. We also received the final tranche
of a three year grant from the North West Development
Agency (£37,500) towards development of our service in the
northwest region. We are developing various new ways of
engaging trusts and particularly companies in funding our work
in 2010.
We also received funding from various individuals inspired by
the impact of our work and, once again, took part in the Big
Give Matched Funding Challenge which helped us to attract
additional public donations as well as matched funding of
£13,505 from The Reed Foundation.
We are grateful to Anne and David Feld who hosted a musical
evening in aid of In Kind Direct in June raising valuable funds for
our core work.
Trading Company/Alternative Income
In Kind Direct’s wholly-owned trading subsidiary (Trading IK
Limited) commenced business at the start of 2010. We ran
several income generation projects within the company over
the year, with mixed results.
In January, we launched an eBay sales project selling goods
donated to In Kind Direct which are not suitable for
distribution to our charity partners (charities are always our
first priority) but which do have a commercial value. Example
products are industrial-size printer consumables or specialist
drill accessories. No product is considered for this route
without the explicit permission of the donating company.
Income from this initiative is being received into Trading IK Ltd
with all net profits being donated to In Kind Direct. The project
raised funds ahead of target at £21,000.
Our affiliate marketing scheme with Staples Advantage
generated commission below target. However, with various
improvements having been made, we anticipate an increase in
2011.
An exciting development has evolved from work we undertook
with Boston Consulting Group Germany. We have supported
the development in Germany of a new charity, the first
accredited member on the In Kind Direct Global Network, the
President of which is HRH The Prince of Wales. The licensing
and affiliate agreement to create another instance of our IT
system along with use of our other intellectual property was
signed in March 2011 and includes a substantial payment to
Trading IK Limited.
5. Cost and overhead management
At the end of 2007 (before the economic climate had
changed), In Kind Direct took the decision to reduce costs in
order to become more financially self-sustaining. This included a
reduction in headcount from a planned 20 to 14. In Kind Direct
actually delivered savings of £43,983 against the 2010 overhead
budget (£39,209 saving in 2009), while spending a total of
£1,131,373 on its logistics and support operations (2009:
£1,130,495). Costs will continue to be kept under tight control
as the charity increases its operational income and decreases its
reliance on fundraising.
6. HR Management
In Kind Direct has a very experienced, stable staff team and
enjoys high levels of retention.
In 2010 we made the decision to change our performance
management framework with support from Serco for
implementation in 2011.
In September all staff took part in a day’s active volunteering
and teambuilding with a Let’s Get Cooking group from a school
in Southwark.
We ran two short-term volunteer internships during the year
providing valuable additional support for our charity, marketing
and business development teams.
16
1/7/11 1:54:46 pm
Financial review of 2010
Almost £12 million of In Kind Direct’s expenditure was
the value of the goods distributed to our charity partners.
A further £1.3 million related to the costs of our logistics
operation; the costs of maintaining our online ordering system;
and the costs of In Kind Direct employees engaged in sourcing
goods and servicing charity partners, as well as warehouse,
distribution and office expenses.
The financial results for 2010 show that the charity suffered
a set back in moving towards achieving our aim of financial
self-sustainability. By building the network to a larger scale,
and through increased product donations in future years,
the financial contribution achieved from the charity’s logistics
operation and trading company’s activities will grow and thus
reduce the need to cover operational expenditure through
fundraising activities.
£402,720 of funding was received by In Kind Direct during
2010, of which £259,834 was unrestricted and £142,886 was
restricted. Charitable trusts and foundations continued to
provide a significant proportion of In Kind Direct’s funding.
They accounted for 38%, whilst the contribution from the
corporate sector increased from 16% in 2009 to 26%.
The 2010 overhead expenditure budget was £778,179, while
actual operational expenditure decreased by £43,983 during
the year (to £734,196). In addition to unrestricted grants and
donations, £134,788 was released from restricted funds to
the general fund. This provided total unrestricted funding of
£394,622 towards our operational costs.
Key lessons learned
In recent years, ecommerce has become absolutely central to In
Kind Direct’s work and, like many organisations, we have had to
adapt quickly to this fast moving, technology-driven medium. As
Good Companions
Good Companions is a Bolton based group run by
disabled people for disabled people. The charity gives
independence and confidence to people with a range
of disabilities who plan and take part in a range of
regular activities.
❛
‘In Kind Direct has definitely helped us save
money. We can get toys to give out at
Christmas, and order things to use to run
the group – the computers particularly
have been great.’
❛
During 2010, In Kind Direct’s logistics operations generated
handling charge income of £621,073 (2009: £772,068) and
Retail Donation Initiative registration fees of £3,300 (2009:
£2,357). Handling charges decreased by £150,995 mainly
due to the fall in volume of donated product experienced in
2010; and a decrease in the amount of handling charge income
generated per order. Variable costs of our logistics operation
consequently decreased (by £36,206).
well as bringing in new skills to the staff team and Board, we’ve
sought advice from leading web experts to help us develop our
systems and processes. We’ve learned that our charity partners’
expectations are set by their wider experiences of ecommerce.
In 2010 we put in place a step-change improvement to our
ecommerce platform and back-end integrated business systems
which will give us the flexibility and capacity to grow and
continue to improve our service in future.
Plans for the future
2010 was the third year of the business plan In Kind Direct set
in place in 2008 aimed at increasing the scale and sustainability
of our work. Our key strategic objective remains to grow
our service such that we increase our operational and trading
company income, reducing our funding requirement and making
the organisation more sustainable for the long term. We are
aware that this objective is dependent on our ability to secure
increased product donations in core categories and we suffered
a setback in this regard during 2010. We are optimistic that
investment in marketing to donors will bear fruit in the form of
new product donors and increasing donation levels in 2011.
As we progress towards our long term objective, we continue
to develop our fundraising and alternative income streams
and to consider new ways of putting the organisation on a
sustainable footing and increasing our impact for UK charities
working at home and abroad.
17
1/7/11 1:54:47 pm
Our key strategic aims along with our key objectives and initiatives are set out in the table below:
Strategic Aim
Objectives and Plans
Development of registered and active
charity database
n
Key measures
6,400 charities in the network at year end
1,515 unique charities (24%) ordering during
year
Increasing the flow of right products
Key measures
11% increase in volume donated on 2010
Ensuring that current charity partners gain maximum return from the
service through improved digital communications
n Continue research into charity partners’ core product needs and other
requirements from the service
n Targeted recruitment of more charity partners using new video and
print materials
n Digital and social media strategy to deepen engagement with charity partners
Media campaign based around In Kind Direct reaching £100 million in value of
goods redistributed to charities
n Event to engage new donor companies
n Continuing improvements to reporting and impact measurement for donors
n Digital and social media strategy to engage new donor companies
n
Efficiency and flexibility of logistics
n
Key measures
n
No donations not looked at after six weeks
in warehouse
Average handling cost per order of £35
Targeted fundraising and alternative
income streams
Key measures
End year with three months’ operating
reserves (£186,761)
Raise funding for 2011 (£416,645)
Secure net profit from trading company
of £201,280
Trial enhanced delivery option
Continue improvements to warehouse layout and processes in response to
changing donation mix
n Pilot volunteer opportunities at the warehouse
Continue programme of rolling applications to trust, corporate and
individual funders
n Pilot new fundraising initiatives
n Support third party fundraising efforts
n Continuing development of affiliate and eBay sales schemes
n Provide continuing support for our first member of the In Kind Direct
global network
n
Structure, governance and management
In Kind Direct was founded in 1996 by HRH The Prince of
Wales. It is one of The Prince’s Charities, has signed a brand
license and is subject to operating protocols as are all of The
Prince’s Charities, as well as having its own independent
memorandum and articles of association.
There are ten trustees, who meet quarterly as a Board as
do the Marketing Committee and the Finance and Audit
Committee. With the addition of the Chairman of the charity,
the latter Committee also constitutes the Remuneration
Committee. There is also a Nominations Committee which
meets as required.
18
New trustees are recommended by the Nominations
Committee and appointed by the members in general meeting.
The Board may appoint trustees to hold office until the
next annual general meeting where the appointment must
be approved by the members. All trustees are subject to
retirement by rotation except the chief executives of Business
in the Community and The Prince’s Charities respectively.
New trustees are given copies of the charity’s legal documents,
management information and accounts, together with general
reading material about the charity and Charity Commission
literature. This is followed by meetings with the Chief Executive
and/or Chairman as part of the induction process. Trustees are
sent training updates as appropriate throughout the year. New
trustees are invited to attend an in-depth induction training day
with trustees of the other Prince’s Charities.
1/7/11 1:54:48 pm
Day-to-day management of the charity is delegated to the
Senior Management Team led by the Chief Executive. Formal
reporting by the Chief Executive to Trustees takes place
regularly throughout the year. At the end of the period under
review there were twelve full-time and two part-time staff.
Financial policies
Reserves policy
In 2009, the Board’s review of the reserves policy concluded
that the charity should aim to achieve reserves equivalent to
three months’ operational cashflow until such time that the
charity reaches financial self-sustainability. The longer term
aspiration of the Board is that the charity achieves six months’
reserves.
Restricted reserves
Unrestricted reserves
Total reserves as at 31 December 2010
£63,126
£91,423
£154,549
£35,000 of a £37,500 grant received from the NWDA (a
restricted fund); and £22,587 of a £39,833 restricted grant
received from the Esmée Fairbairn Foundation will be released
to the unrestricted fund over the course of the next financial
year. Therefore the total funds available for operational
expenditure are £149,010 being £91,423 of unrestricted
reserves plus the £57,587 from the NWDA and Esmée
Fairbairn Foundation that will be transferred. This £149,010
equates to 10 weeks’ of operating costs and represents a
decrease of £92,057 compared to the previous year.
Investment policy
In Kind Direct’s investment policy is to place funds in excess
of short-term commitments on monthly deposit leaving a
sufficient balance in the current account which is coupled with
a nightly sweep to a higher interest deposit facility. It is the
opinion of the Board of Trustees that the interest earned is
paid at a competitive market rate and that these investments
perform to a satisfactory level.
In Kind Direct’s policy with regard to donated shares is that
they will generally be sold at the earliest opportunity subject
to any restrictions on sale. Staff seek concurrence prior to any
proposed disposal from a member of the Finance and Audit
Committee before either proceeding with the sale or give an
explanation for not realising the value as soon as the restriction
has lapsed. Currently no donated shares are held.
Women’s Aid - Fortalice
Women’s Aid is a national charity that supports a
network of services for women and children who
have experienced domestic abuse. Women’s Aid
Fortalice, based in Bolton, is one of 100 Women’s Aid
projects using In Kind Direct’s service for products
like cleaning products, washing powder, toiletries
and clothing.
❛
“Many of the essentials, particularly things like
nappies and washing powder, become hugely
expensive in the quantities that we need
them. We save a lot of money on running
the service by using In Kind Direct.” Arlene Cochrane, Director
❛
In Kind Direct is also a company limited by guarantee. When a
term of appointment as trustee/director ceases, membership
of the company also ceases. In the event of winding up,
the liability of each member of In Kind Direct is limited by
guarantee to £10.
Risk policy and management
The Trustees review the assessment of major risks to which
the charity is exposed. The Senior Management Team has
compiled a risk register, which they regularly monitor and
amend as necessary. Management of risks with strategies to
minimise and mitigate them is an ongoing task of the Senior
Management Team. Changes are reported to the Board at
quarterly meetings with the full risk register being reviewed by
the Trustees annually.
Example risks identified include: overreliance on top donor
companies, the loss of infrastructure support and operational
and reputational risk surrounding potential misuse of donated
products by charity partners.
Environmental policy
In Kind Direct, a registered charity, redistributes surplus
product from manufacturers and retailers to UK charities
working at home and abroad. As well as helping charities, our
work has a positive impact on the environment by diverting
goods that might otherwise go to waste as landfill or external
recycling, generating greenhouse gases.
We recognise our obligation to comply with the law and
to carry out our work in an as environmentally sound
manner as possible. In 2009 we set out a new policy as part
of our commitment to minimising the negative impact of
our operations on the environment to as low a level as is
practically and economically feasible. The full policy is available
on our website and sets out what we commit to do in terms of
monitoring and minimising our impact where possible.
19
1/7/11 1:54:48 pm
Directors and trustees
The directors and trustees of In Kind Direct during the year
and up to the date the accounts were approved were as
follows:
Christopher Hyman (Chairman)
Stephen Howard
Irwin Lee
Appointed 1 November 2010
Allison Kirkby
Brian McBride
John Pattullo
Cindy Rose
Retired 21 September 2010
Andrew Rubin Sir Tom Shebbeare KCVO
G Truett Tate
Teresa Tideman
Appointed 23 March 2010
We would like to thank Cindy Rose who retired in the past
year for her efforts and enthusiasm for In Kind Direct over
several years.
Changes in fixed assets
The Navision accounting and CRM system was upgraded
during 2010, along with In Kind Direct’s on line catalogue
and website. The cost of this was £45,650 and was funded
by a company foundation. In addition, extra shelving for the
warehouse was purchased at a cost of £4,684 funded by the
grant from the Esmée Fairbairn Foundation. The entire cost of
both purchases has been capitalised and is being amortised in
line with In Kind Direct’s stated accounting policy (see note 1).
Statement of trustees’ responsibilities
The trustees (who are also directors of In Kind Direct for the
purposes 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 charitable company and of the
incoming resources and application of resources, including the
income and expenditure, of the charitable company for that
period. In preparing these financial statements, the trustees
are required to:
Select suitable accounting policies and then apply them
consistently;
n Observe the methods and principles in the Charities SORP;
n Make judgements and estimates that are reasonable and
prudent;
n State whether applicable UK Accounting Standards have
been followed, subject to any material departures disclosed
and explained in the financial statements;
n Prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the charitable
company will continue in business
n
The trustees are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time of
the financial position of the charitable 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 charitable company and hence
for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
In so far as we are aware:
There is no relevant audit information of which the charitable
company’s auditor is unaware; and
n The trustees have taken all steps that they ought to have
taken to make themselves aware of any relevant audit
information and to establish that the auditor is aware of that
information.
n
Related Parties
None of In Kind Direct’s trustees are employed by a company
with which In Kind Direct has a commercial relationship. Two
trustees of In Kind Direct are employed as Chief Executive
/ Director of two other organisations forming part of The
Prince’s Charities. These are detailed in Note 16, page 33, to
these accounts
Auditors
haysmacintyre was reappointed as auditor at the Annual
General Meeting held on 21 September 2010.
By order of the Board
Allison Kirkby
Director and Trustee
20
1/7/11 1:54:50 pm
Independent Auditors’ report to the members of In Kind Direct
We have audited the consolidated financial statements of In
Kind Direct for the year ended 31 December 2010 which
comprise the Statement of Financial Activities, the Balance
Sheet, and the related notes. The financial statements have
been prepared under the accounting policies set out therein.
This report is made solely to the charitable company’s
members, as a body, in accordance with Section 495 of the
Companies Act 2006. Our audit work has been undertaken
so that we might state to the charitable company’s members
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 charitable company and the charitable
company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Respective responsibilities of Trustees and auditors
The Trustees’, who are also the directors of the company for
the purposes of company law, responsibilities for preparing
the Annual Report and the financial statements in accordance
with applicable law and United Kingdom Accounting Standards
(United Kingdom Generally Accepted Accounting Practice)
and for being satisfied that the financial statements give a
true and fair view are set out in the Statement of Trustees’
Responsibilities.
Our responsibility is to audit the financial statements in
accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view, have been properly
prepared in accordance with United Kingdom Generally
Accepted Accounting Practice, and have been prepared in
accordance with the Companies Act 2006. We also report
to you whether in our opinion the information given in the
Trustees’ Report is consistent with those financial statements.
In addition we report to you if, in our opinion, the charitable
company has not kept adequate accounting records, if the
charitable company’s financial statements are not in agreement
with the accounting records and returns, if we have not
received all the information and explanations we require for
our audit, or if certain disclosures of trustees’ remuneration
specified by law are not made.
We read the Trustees’ Report and consider the implications for
our report if we become aware of any apparent misstatements
within it.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test
basis, of evidence relevant to the amounts and disclosures in
the financial statements. It also includes an assessment of the
significant estimates and judgements made by the trustees in
the preparation of the financial statements, and of whether the
accounting policies are appropriate to the charitable company’s
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable
assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity
or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of Information in the financial
statements.
Opinion
In our opinion
n the financial statements give a true and fair view of the
state of the group’s and charitable company’s affairs as
at 31 December 2010 and of its incoming resources
and application of resources, including its income and
expenditure, for the year then ended;
n the financial statements have been properly prepared in
accordance with United Kingdom Generally Accepted
Accounting Practice;
n the financial statements have been prepared in accordance
with the Companies Act 2006; and
n the information given in the Trustees’ Report is consistent
with the financial statements.
Richard Weaver (Senior Statutory Auditor)
for and on behalf of haysmacintyre
Fairfax House
Registered Auditors
15 Fulwood Place
London WC1V 6AY
27 May 2011
21
1/7/11 1:54:50 pm
Consolidated Statement of Financial Activities for the year ended
31 December 2010
Notes
Unrestricted
Funds
Restricted
Funds
Totals
2010
Totals
2009
£
£
£
£
INCOMING RESOURCES
Incoming Resources from generated funds
Value of donated goods distributed
3
10,023,137
1,966,166
11,989,303
16,129,940
Other voluntary income
2
259,834
142,886
402,720
507,757
Donated goods & services for own use
3
309,939
-
309,939
188,187
Income from trading activities
4
22,268
-
22,268
-
393
-
393
231
Registration fees
3,300
-
3,300
2,357
Handling charges
621,073
-
621,073
772,068
1,068
-
1,068
1,289
1,217,875
142,886
1,360,761
1,471,889
11,241,012
2,109,052
13,350,064
17,601,829
Investment income
Incoming resources from charitable activities
Other income
Total incoming resources excluding value
of donated goods distributed
Total incoming resources
RESOURCES EXPENDED
Costs of Generating Funds
5
57,577
11,115
68,692
62,297
Costs of Trading Activities
5
7,631
-
7,631
-
65,208
11,115
76,323
62,297
10,023,137
1,966,166
11,989,303
16,129,940
Costs of Generating Funds
Cost of Charitable activities
Distribution of donated goods
5
Other Charitable Costs
5
1,179,017
137,438
1,316,455
1,195,005
11,202,154
2,103,604
13,305,758
17,324,945
66,771
9,485
76,256
65,245
66,771
9,485
76,256
65,245
11,334,133
2,124,204
13,458,337
17,452,487
(93,121)
(15,152)
(108,273)
149,342
-
-
-
-
Net Movement in funds
(93,121)
(15,152)
(108,273)
149,342
Funds brought forward at 1 January
184,544
78,278
262,822
113,480
91,423
63,126
154,549
262,822
Total Cost of Charitable Activities
Governance Costs
Total resources expended
5
5
Net Income for the Year
Other Recognised Gains/Losses
Net gain/(loss) on investment assets
Funds carried forward at 31 December
10
13
The financial activities above relate wholly to the continuing activities of In Kind Direct.
The notes on pages 24 to 33 form part of these financial statements.
There are no recognised gains or losses other than those dealt with in the above statements.
22
1/7/11 1:54:51 pm
Company number: 3155226
Balance Sheet at 31 December 2010
Group
Charity
Total Unrestricted
Funds
Restricted
Funds
Total
2010
Total
2009
£
£
£
£
36,599
36,599
-
36,599
-
-
1
-
1
1
-
58,752
60,474
-
60,474
87,497
63,126
128,944
62,478
63,126
125,604
265,664
63,126
187,696
122,952
63,126
186,078
353,161
(69,746)
-
(69,746)
(68,129)
-
(68,129)
(90,340)
Net current assets
54,824
63,126
117,950
54,823
63,126
117,949
262,821
Total assets less
current liabilities
91,423
63,126
154,549
91,423
63,126
154,549
262,822
Balance at 1 January
184,544
78,278
262,822
184,544
78,278
262,822
113,480
Movement in Funds
(93,121)
(15,152)
(108,273)
(93,121)
(15,152)
(108,273)
149,342
91,423
63,126
154,549
91,423
63,126
154,549
262,822
Unrestricted
Funds
Restricted
Funds
£
£
£
9
36,599
-
10
-
-
11
58,752
65,818
124,570
Notes
Fixed assets
Tangible assets
Investments
Current assets
Debtors
Cash at bank and in hand
Creditors: amounts falling
due within one year
12
Funds
Balance at 31 December
13
The financial statements were approved and authorised for issue by the directors on the 26 May 2011
and were signed on its behalf by:
Allison Kirkby
Director and Trustee
The notes on pages 24 to 33 form part of these financial statements.
23
1/7/11 1:54:52 pm
Notes to the Financial Statements – year ended 31 December 2010
1. Principal accounting policies
Basis of Preparation
The financial statements have been prepared under the
historical cost convention, as modified by the revaluation of
certain investments, and in accordance with the Statement of
Recommended Practice (SORP) – “Accounting and Reporting
by Charities” – published in March 2005 and applicable
accounting standards.
Basis of Consolidation
Group accounts have been prepared for In Kind Direct and
its wholly owned subsidiary Trading IK Limited. The accounts
have been consolidated on a line by line basis. In accordance
with section 408 of the Companies Act 2006, no separate
Statement of Financial Activities is presented for the 12 months
ended 31 December 2010 as the charity’s result was the same
as the group.
Income of the charity (parent company) amounted to
£13,342,433. Net outgoing/incoming resources after gains and
losses in investments amounted to (£108,273).
Fixed Assets
Fixed assets are capitalised in the balance sheet at cost or, for
donated goods, at estimated market value, except for items
costing less than £2,000, which are expensed in the year of
purchase. Depreciation is calculated so as to write off the cost
of tangible fixed assets, less the estimated residual values, on
a straight-line basis over the estimated economic lives of the
assets concerned. Computer equipment is written off over
three years and computer software is written off over two
years. Other capital equipment such as items purchased for use
at the warehouse is also written off over three years.
Investment
Investments are stated at market value at balance sheet date.
Market value is taken to be bid price ruling at the balance sheet
date. The SOFA includes the net gains and losses arising on
revaluations and disposals throughout the year. It is the Charity’s
policy to keep valuations up to date at the balance sheet date.
Leased assets
The charity has no finance leases. All operating leases and rental
expenses are charged to the SOFA as incurred.
Fund Accounting
Incoming resources
Unrestricted funds includes funds and goods donated for
distribution. Unrestricted funds 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.
All incoming resources are included in the SOFA when the
charity has entitlement to the income, there is reasonable
certainty of receipt and the amount can be measured. Event
income and handling charges are treated as income of the
period to which they relate. Registration fees are generally
non-refundable and are applied to income at the beginning of
the year to which they relate. Interest receivable is treated as
income of the period in which it accrues.
Restricted funds are funds and goods donated for distribution,
which are to be used in accordance with specific restrictions
imposed by donors or which have been raised by the charity
for particular purposes. The cost of raising and administering
such funds is charged against the funds. The aim and use of
each restricted fund is set out in the notes to the financial
statements.
24
Goods and services donated for the charity’s own use
Goods, office facilities and logistics services donated for the
charity’s own use are recognised in the Statement of Financial
Activities as both income and expenditure or capitalised if it is a
capital item at the market value.
1/7/11 1:54:53 pm
Goods donated for onward distribution
Goods donated for onward distribution are included as
both income and expenditure, at the time of distribution,
at a reasonable estimate of their original market value, less
adjustments to reflect condition where the goods are not in
their original pristine condition.
Taxation
As a registered charity, the company is potentially exempt from
taxation of its income and gains to the extent that these are
applied to its charitable objects. The company is registered for
VAT. Income Tax recoverable under Deeds of Covenant and
Gift Aid is accounted for on a receivable basis.
Cash flow statement
In Kind Direct qualifies as a small company under the terms of
section 247 of the Companies Act 1985. As a consequence it is
exempt from the requirement to publish a cash flow statement.
Pension costs
Contributions to group personal money purchase pension
schemes are charged to the Statement of Financial Activities on
an accruals basis.
Identification of potential donors, obtaining donated goods
for onward distribution, the processes for distributing,
reporting and accounting for those goods; the recruitment and
registration of charities and maintenance of data relating to
those charities.
Governance Costs – The costs remaining which include:
Financial, legal and administrative expenses incurred in
connection with enabling the charitable company to comply
with external regulations, constitutional and statutory
requirements; and in providing support to the trustees in the
discharge of their statutory duties.
Costs of Generating Funds – The costs incurred to obtain
voluntary contributions to the charity including expenditure
on increasing In Kind Direct’s general resources other than
through obtaining registration income or goods for distribution
and for improving general awareness of In Kind Direct within
the overall community.
Support Costs – Expenditure incurred on activities falling
directly within one expenditure classification is charged directly
to that classification. Expenditure incurred on activities falling in
more than one cost category is apportioned as follows:
Resources Expended
Expenditure is classified in accordance with the Statement of
Recommended Practice as shown below:
Staff costs: According to the time spent by each member of
staff on activities within that category.
Charitable Activities – all expenditure directly relating to the
objects of the charity including the direct cost of supporting
charitable activities and covers the following activities as
incurred:
Office expenses: In the same overall ratio as staff costs.
Depreciation: In the same overall ratio as staff costs
25
1/7/11 1:54:53 pm
notes 2–3
2. Other Voluntary Income
Restricted
Funds
Unrestricted
Funds
Total
2010
Total
2009
£
£
£
£
Charitable Trusts
39,833
111,455
151,288
363,426
Business donations
63,553
39,793
103,346
82,294
Government
37,500
-
37,500
37,500
2,000
108,586
110,586
24,537
142,886
259,834
402,720
507,757
Goods
donated for
distribution
restricted
Unrestricted
Funds
Total
2010
Total
2009
£
£
£
£
1,966,166
10,023,137
11,989,303
16,129,940
-
309,939
309,939
188,187
1,966,166
10,333,076
12,299,242
16,318,127
Donations by individuals
3. Donated goods and services
Donated goods and services were applied
to the activities of the charity as follows:
Value of donated goods distributed
Services donated for own use
26
1/7/11 1:54:54 pm
note 4
4. Trading activity
Trading IK Limited is a wholly owned subsidiary trading company of the charity, established on 2 July 2009.
Its principal activity is generating alternative sources of income such as eBay sales and affiliate marketing agreements.
The company gift aids its taxable profits to the parent company. The results for the trading company for the 18 month period
ended 31 December 2010 were:
18 months ended 31 December 2010
£
Turnover
22,268
Cost of sales
-
Gross profit
22,268
Distribution costs
(2,124)
Administration costs
(5,507)
Profit for the period
14,637
Gift Aid to In Kind Direct
(14,637)
Profit for the period after Gift Aid
-
Administration costs relate to audit fees, set up costs and other professional fees from In Kind Direct
to Trading IK Limited for the use of staff and resources. These have been eliminated on consolidation.
£
Current assets
Creditors and accruals
3,618
(3,617)
Net Assets
1
27
1/7/11 1:54:54 pm
notes 5–6
5. Total Resources Expended
Direct
cost
Support
cost
Total
2010
Total
2009
£
£
£
£
11,989,303
-
11,989,303
16,129,940
405,741
910,714
1,316,455
1,195,005
12,395,044
910,714
13,305,758
17,324,945
Fundraising activities
1,955
66,737
68,692
62,297
Trading activities
7,631
-
7,631
-
Governance Cost
9,225
67,031
76,256
65,245
12,413,855
1,044,482
13,458,337
17,452,487
Cost of Charitable Activities
Other charitable costs
Cost of Generating Funds
Total Resources Expended
6. Support costs
Support costs are the costs of premises, facilities, staff and office overheads and are allocated to the activities of the charity
as follows:
Cost of
Charitable
Activities
Costs of
generating
funds
Governance
Costs
Total
2010
Total
2009
£
£
£
£
£
Management/Other
208,759
42,417
21,952
273,128
277,237
Finance & IT
145,713
2,327
19,241
167,281
172,711
Logistics
173,887
-
2,946
176,833
154,274
Charities
103,901
-
2,455
106,356
101,429
8,209
2,189
547
10,945
19,571
270,245
19,804
19,890
309,939
188,187
910,714
66,737
67,031
1,044,482
913,409
Fundraising
Premises
Support costs are included in the expenditure reported in the SOFA and have been allocated on the basis of time spent.
The cost allocation includes an element of judgement and the charity has had to consider the cost benefit of detailed
calculations and record keeping. Therefore, the support costs shown are a best estimate of the costs that have been so
allocated.
28
1/7/11 1:54:55 pm
notes 7–8
7. Employees
Total
Total
2010
2009
£
£
Salaries and wages
518,007
531,719
Social security costs
51,530
59,191
Other pension costs
35,296
38,511
604,833
629,421
2010
2009
13
12
Staff costs comprise:
The average number of employees during the year, analysed by function, was:
1
1
14
13
* £110,000 - under £120,000
-
1
* £120,000 - under £130,000
1
-
Governance
The number of employees earning in excess of £60,000 is as follows:
* includes use of company leased car
In Kind Direct contributes to a money purchase Group Personal Pension Scheme on behalf of all members of staff. Contributions
of £35,296 (2009: £38,511) were paid during the year to this scheme including £12,230 ( 2009 : £12,230) in respect of the
highest paid member.
The trustees did not receive remuneration for their services to the company during the period (2009: £nil).
Expenses incurred by the directors were not reimbursed by the company.
In Kind Direct purchased insurance, at a cost of £617 (2009: £624), for the trustees and officers of the company during the year to
indemnify them against possible liabilities incurred in relation to the performance of their duties.
8. Net expenditure for the year is stated after charging:
2010
2009
£
£
Auditor remuneration - audit fee
9,225
9,300
Operating Lease payments - other
6,179
6,118
Provision for bad debts (VAT reclaim)
(330)
2,264
13,735
-
Depreciation
29
1/7/11 1:54:56 pm
notes 9–10
9. Tangible Fixed Assets
(Group & charity)
Computer Equipment
Unrestricted
Funds
Warehouse Equipment
Restricted Unrestricted
Funds
Funds
Restricted
Funds
Total
2010
Total
2009
£
£
£
£
£
£
-
30,085
-
-
30,085
30,085
Additions during year
45,650
-
4,684
-
50,334
-
Cost as at 31 December 2010
45,650
30,085
4,684
-
80,419
30,085
Cost as at 1 January 2010
-
(30,085)
-
-
(30,085)
(30,085)
Charge for year
(12,174)
-
(1,561)
-
(13,735)
-
Depreciation as at 31 December 2010
(12,174)
(30,085)
(1,561)
-
(43,820)
(30,085)
-
-
-
-
-
-
33,476
-
3,123
-
36,599
-
Unrestricted
Funds
Restricted
Funds
Total
2010
Total
2009
£
£
£
£
Shares - subsidiary company Trading IK Ltd
1
-
1
1
Market value at 31 December 2010
1
-
1
1
1
1
Depreciation as at 1 January 2010
Net book value as at 1 January 2010
Net book value as at 31 December 2010
10. Investment (Charity)
Historical value at 31 December 2010
30
1/7/11 1:54:57 pm
notes 11–12
11. Debtors
Group
2010
Group
2009
Charity
2010
Charity
2009
£
£
£
£
9,294
28,168
9,294
28,168
13,563
-
13,563
-
-
99
-
99
35,895
59,230
37,617
59,230
58,752
87,497
60,474
87,497
Group
2010
Group
2009
Charity
2010
Charity
2009
£
£
£
£
Trade creditors
(10,916)
(21,311)
(10,916)
(21,311)
Accruals
(29,182)
(25,226)
(27,565)
(25,226)
-
(20,000)
-
(20,000)
(29,648)
(23,803)
(29,648)
(23,803)
(69,746)
(90,340)
(68,129)
(90,340)
Prepayments
Trade creditors
Loan to wholly owned subsidiary (Trading IK Ltd)
Other debtors
12. Creditors: amounts falling due within one year
Deferred Income
Taxation and social security
31
1/7/11 1:54:57 pm
note 13
13. Reserves
Movement in Resources
Balance at
1 Jan 2010
Restricted Funds:
1
KPMG
2
NWDA
3
Pret à Manger Foundation
4
Disney
£
Transfers
between
funds
£
Incoming
Grants
Expenditure
Balance at
31 Dec 2010
£
£
£
-
1,000
(1,000)
-
37,400
37,500
(37,400)
37,500
600
-
(600)
-
-
10,440
(10,160)
280
21,524
39,833
(38,770)
22,587
2,583
-
(2,583)
-
-
45,650
(45,650)
-
6,425
-
(6,425)
-
-
2,000
(2,000)
-
5
Esmee Fairbairn Foundation
6
BMW UK
7
Fidelity UK
8
Rubin CT
9
Mr & Mrs Feld
10
Bank of America
-
6,463
(6,463)
-
11
Frances Bleasdale legacy
5,317
-
(2,558)
2,759
12
Abbey National
4,429
-
(4,429)
-
13
Value of goods distributed
-
-
1,966,166
(1,966,166)
-
78,278
-
2,109,052
(2,124,204)
63,126
Unrestricted Funds
184,544
-
11,241,012
(11,334,133)
91,423
Total Funds
262,822
-
13,350,064
(13,458,337)
154,549
Total Restricted Funds
Details
(1) Funds towards promotion costs.
(2) - (4) Funds (2) to (4) are for the purpose of enabling charities in a particular sector or geographical location to benefit from the
In Kind Direct Service. Benefit is generally given by subsidising the handling charges of individual charities.
(5) Fund to enable hiring and first 3 years’ salary and related costs of Warehouse Liaison Manager.
(6) Fund (6) relates to prior year funds to be spent in respect of promotional materials.
(7) Fund to enable upgrade of Navision system and website.
(8) Funds contributed in respect of e-commerce marketing activities.
(9) Funds relating to a fundraising event held at the Felds’ home.
(10) Funds contributed towards research and work relating to tax incentives for product donations.
(11) Funds contributed in respect of in kind health benefits to In Kind Direct staff.
(12) Funds contributed towards the cost of packaging machinery and materials at In Kind Direct’s warehouse.
(13) These are goods which the donor company has specified must go overseas, or that have been restricted by the donor in some
other way.
32
1/7/11 1:54:58 pm
notes 14-17
14. Donation of services for own use
(Group & Charity)
The financial statements exclude some intangible services (mainly legal and human resources services) as they were immaterial in
value. However, the accounts do include the following donated services that are of material value:
2010
Office accommodation, printing & postage charges
2009
£
£
309,939
183,644
-
4,543
309,939
188,187
IT system consultancy
15. Obligation under operating lease
(Group & Charity)
The amount payable on one motor-vehicle within the next twelve months on leases expiring :
Length of lease remaining
Less than 1 year
2-5 years
Other
Total
2010
Total
2009
£
£
£
3,106
3,106
-
-
-
6,118
3,106
3,106
6,118
Lease payments of £6,179 (2009: £6,118) were charged to the Statement of Financial Activities during the year.
16. Related party transactions
In Kind Direct is one of The Prince’s Charities, a group of not-for-profit organisations, of which HRH The Prince of Wales is
President. Stephen Howard, Chief Executive of Business in the Community, another of The Prince’s Charities is a trustee of
In Kind Direct.
Sir Tom Shebbeare, Director of Charities to TRH The Prince of Wales and The Duchess of Cornwall, is also a trustee of
In Kind Direct.
17. Capital commitments
(Group & Charity)
There were no contractual obligations to purchase items of capital expenditure at 31 December 2010.
(2009: Nil ).
33
1/7/11 1:54:58 pm
IN KIND DIRECT
(a company limited by guarantee)
Registered Company no: 3155226
Registered Charity no: 1052679
1/7/11 1:54:58 pm
1/7/11 1:54:59 pm
IN KIND DIRECT
(a company limited by guarantee)
Registered Company no: 3155226
Registered Charity no: 1052679
1/7/11 1:55:00 pm

INKINDaccounts2011_V9colour.indd1 1 1/7/11 1:54

Transcription

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