1065 ACF annual report 2006 · 2015-11-19 · •Barrow Cadbury Trust ... Project. ACF ANNUAL REPORT 2006 And most especially, to all of the staff and trustees of our members who

ACF Annual Report

2006

Every year,

ACF members

across the UK

give grants of

over £1 billion

to a wide range

of charitable

causes

Association of Charitable Foundations

With thanks to...

We would like to record our thanks and appreciation to the many members andothers who provided additional support for ACF since January 2006:

For financial support for the posts of Deputy ChiefExecutive and Information and Communications Officer:

• The Atlantic Philanthropies

For their financial support for the work of Philanthropy UK

• Cabinet Office

For a core cost grant and consultancy support todevelop membership services, focused on ACF supportfor increased standards in grant-making:

• CAF (Charities Aid Foundation)

For their temporary secondment of a staff member to ACF:

• Big Lottery Fund

For support to consult with members and to implementthe redevelopment of ACF’s website:

• Bedford Charity

• Abbey Charitable Trust

For the cost of the publication of the Jargonbusterbooklet:

• City Bridge Trust

• Lloyds TSB Foundation for England and Wales

• Wates Foundation

For supporting the costs of a conference in Belfast fortrusts active or interested in funding in Northern Ireland:

•Barrow Cadbury Trust

For developing booklets for trustees of grant-makingtrusts:

• Carnegie United Kingdom Trust

• Tudor Trust

• Wates Foundation

For London Funders:

• London Development Agency

For support for Philanthropy UK including productionof the Philanthropy UK Newsletter:

• Baring Foundation

• Esmée Fairbairn Foundation

• Gatsby Charitable Foundation

• Lloyds TSB Foundation for England & Wales

• Tudor Trust

• Vodafone UK Foundation

For their voluntary contribution to the editing andproduction of the Philanthropy UK newsletter:

• Beth Breeze

• David Carrington

• Sue Wixley

For their pro bono support in drafting the guidance in SORP Made Simpler and for hosting the launch of the guide:

• Saffery Champness

For their financial support for the publication of SORP Made Simpler:

• Tudor Trust

For supporting publication of our Guidance on theCharities Act, and for hosting the subsequent event withthe Charity Commission:

• Abbey Charitable Trust

For hosting the annual meeting of chairs of membertrusts and foundations:

• Rensburg Sheppards

We would also like to:

acknowledge the contribution of Sara Howers whoworked with us a volunteer over three months.

thank Buzzacott Computer Services Limited for probono support in running a data matching pilotproject as part of the ACF’s Grant Risk ManagementProject.

ACF ANNUAL REPORT 2006

And most especially, to all of the staff and trustees of our members who supported our activities throughtheir voluntary work, including the convenors of our Issue Based Networks, presenters of our ProfessionalDevelopment Programme, and all those who served on our advisory committees, provided advice to othermembers or offered feedback on our activities.

Chairman’s & Chief Executive’s Foreword

1CHAIRMAN’S & CHIEF EXECUTIVE’S FORE WORD


Our foreword to the 2005 Annual Reviewreflected on the balance that has to bemaintained by any membership associationbetween serving its members’ needs directlyand simultaneously representing theirinterests externally. Ostensibly 2006, withthe long-awaited parliamentary approval ofthe Charities Act for England and Wales inNovember, saw evidence of a swing of thependulum towards external activities.

The completion of the legislative process brought to abroadly successful close the one of the most time-consuming pieces of lobbying work by the staff of ACFon behalf of its members – in particular, the newstatutory requirement for the Charity Commission to actin a way which is compatible with the encouragement ofall forms of charitable giving. Our involvement in thedebates surrounding the passage of the Charities Billalso delivered the additional benefit of theGovernment’s support for the recommendations of theBetter Regulation Commission which proposed that theCharity Commission should involve ACF in developing astrategy to reduce the regulatory burden on trusts witha view especially to encourage new philanthropists. Inaddition, 2006 saw us working with the Commission inother new ways such as through their support for ourguide to the new SORP. All these activities haveundoubtedly raised the public status of ACF, anachievement reflected in the confidence shown in us bythe Cabinet Office through the substantial funding it hasprovided this year for the development of thePhilanthropy UK project, gratifying support for a projectinitially funded by three members in 2001 and sincenurtured by ACF.

Satisfaction with these external achievements shouldnot mask the continuing development in ourmembership services, largely achieved through thegreater capacity provided by the two staff postsfunded by the Atlantic Philanthropies. Particularlynoteworthy have been the significantly strengthenedProfessional Development Programme, the greaternumber of Issue Based Networks meeting during theyear, our guide to the new SORP, the establishment ofthe Grant Risk Management Project, and thethorough reassessment of members’ needs for asubstantially upgraded website, all of which arereviewed more fully within this report. The posts havealso enabled ACF to continue responding moreefficiently to members’ queries and requests for help,to spend time raising the profile of grant-making

trusts and foundations, and to ensure that werepresent our members more effectively togovernment, regulators and the media. The greatercapacity of the Association through these posts hasemphasised the crucial importance for ACF staff ofmaintaining strong personal links with a broad cross-section of the membership, primarily to ensure weremain in touch with members’ needs and views, butalso to discuss possible seminar topics and findappropriate speakers for IBNs, seminars and debates.

The Atlantic Philanthropies grant apart, the funding ofthe Association continues to rely substantially uponmembers’ subscriptions, plus the modest surplusesgenerated by our events and activities. As the accountsreveal, we have been able gradually to increase ourreserves to £85,000, although this figure remains£15,000 below the prudent level that the ExecutiveCommittee wish to achieve.

This foreword provides us with an opportunity to thankmembers of the Executive Committee for the time andeffort they have devoted to ACF throughout the year.We are especially grateful to Andrew Muirhead of theLloyds TSB Foundation for Scotland who retired at thelast AGM. Andrew had provided support to us over twoterms of office and proved a valuable link with membersand other grant-makers in Scotland. In April we werevery pleased to welcome Jonathan Sheldon, FinanceDirector of the Paul Hamlyn Foundation as ourTreasurer. At the July AGM we welcomed onto theExecutive Committee Anne Burleigh (Northern RockFoundation), Simon Buxton (Noel Buxton Trust), FraserFalconer (BBC Children in Need Scotland) and LisaParker (Nationwide Foundation), four valuable additionsto our team.

Once again, 2006 was a busy and challenging year forthe staff, and we are most grateful for commitment theyhave shown to the Association. To them, and to ourprofessional advisers, we express our sincere thanks.

David Emerson Chief Executive

Professor GeraldManners OBE –

Chairman

TRUSTEES’ ANNUAL REPORT – EXECUTIVE COMMIT TEE


2

CHAIR Professor Gerald Manners OBE Trustee City Parochial Foundation and Trust for London

VICE-CHAIRS Sue Nyfield Director Joseph Levy Charitable Foundation

Geoffrey Shepherd Chief Executive Guy’s & St Thomas’ Charity

TREASURER Jonathan Sheldon Finance Director Paul Hamlyn Foundation

OTHER Toby Blume Trustee Travellers Aid TrustMEMBERS

Mark Boleat Chairman Hillingdon Community Trust

John Bothamley Trustee Four Acre Trust

Anne Burleigh (from July 2006) Assistant Director Northern Rock Foundation

Simon Buxton (from July 2006) Trustee Noel Buxton Trust

David Cutler Director Baring Foundation

Stephen Duckworth Chairman Leonard Laity Stoate Charitable Trust

Alan Eagle Charitable Trust Manager Abbey Charitable Trust

Teresa Elwes Grants Administrator Bromley Trust

Fraser Falconer (from July 2006) Director, Scotland BBC Children in Need Appeal

Susan Jordan Chief Executive Charis Grants Limited

Lisa Parker (from July 2006) Chief Executive Nationwide Foundation

Anna Southall Trustee Barrow Cadbury Trust

The Executive Committee is responsible for the general management andsupervision of ACF’s work. Executive Committee members are the charitytrustees of ACF and are elected by the membership. The Committee met six times during the year.

EXECUTIVE COMMITTEE

Trustees’ Annual Report

From left to right:

Anne Burleigh, David Cutler, Stephen Duckworth,Anna Southall, Mark Boleat, Lisa Parker,Sue Nyfield, Professor Gerald Manners OBE,Alan Eagle, Toby Blume, John Bothamley,Susan Jordan, Simon Buxton and David Emerson.

Teresa Elwes, Jonathan Sheldon, Geoff Shepherd andFraser Falconer.

3TRUSTEES’ ANNUAL REPORT – EXECUTIVE / SPECIAL COMMIT TEES


The following member of the Executive Committee also served during 2006:

Andrew Muirhead Chief Executive Lloyds TSB Foundation for Scotland

SPECIAL COMMITTEESConference Advisory Committee CHAIR David Cutler Baring Foundation

John Bothamley Four Acre Trust

Mubin Haq City Parochial Foundation

Kevin Ireland London Housing Foundation

Roger Morris OBE P H Holt Foundation

Nick Perks Joseph Rowntree Charitable Trust

Ann Sturgess Lloyds TSB Foundation,for England and Wales

Remuneration CommitteeCHAIR Professor Gerald Manners OBE City Parochial Foundation and

Trust for London

Alan Eagle Abbey Charitable Trust

Anna Southall Barrow Cadbury Trust

Finance & Audit CommitteeJonathan Sheldon Paul Hamlyn Foundation

Stephen Duckworth Leonard Laity Stoate Charitable Trust

Alan Eagle Abbey Charitable Trust

Sue Nyfield Joseph Levy Charitable Foundation

Toby Blume Travellers Aid Trust

Income GenerationCHAIR Toby Blume Travellers Aid Trust

Mark Boleat Hillingdon Community Trust

Anne Burleigh Northern Rock Foundation

Simon Buxton Noel Buxton Trust

Lisa Parker Nationwide Foundation

Jonathan Sheldon Paul Hamlyn Foundation

Geoffrey Shepherd Guy’s & St Thomas’ Charity

Governance ReviewCHAIR Mark Boleat Hillingdon Community Trust

Anna Southall Barrow Cadbury Trust

Teresa Elwes Bromley Trust

Lisa Parker Nationwide Foundation

Sue Nyfield Joseph Levy Charitable Foundation

TRUSTEES’ ANNUAL REPORT


4


Marcia Roswell-JosephDevelopmentManager until 18 May 2007

Belinda BirchDevelopment

Officer

Tessa HallInformation andCommunicationsOfficer

Sue BensonPublications EditorPart-time, 2 days per week

Melanie GriffithsGrant RiskManagement ProjectOfficer, Part-time,2 days per week

Nick NealHead of Financeand Administration

Carol MackDeputy ChiefExecutive

Stephanie BrittanPA to the ChiefExecutive

David EmersonChief Executive

STAFF

M I S S I O NACF is a membership association which supports the work of independent charitable trusts andfoundations in the UK by:

• Influencing the law and public policy affecting grant-making charities, and providing relevantinformation to the membership;

• Enabling trusts and foundations to learn from each other’s experience, to discuss matters ofcommon concern, to confer with funders from other sectors, and to achieve good practice ingrant-making;

• Encouraging philanthropy and promoting the development of new grant-making foundations;

• Improving the understanding of trusts and foundations among grant-seekers and the general public.

LONDON FUNDERS

Susan MackenzieProject Director from 1 Feb 2007

PHILANTHROPY UK

Anja HubrathConferencePlanning andOrganisationPart-time, 3 days perweek, until Dec 2006

Jenny Gibson Administrative Assistant

5TRUSTEES’ ANNUAL REPORT


We have continued to improve our

services such as the extended Professional

Development Programme, the wider range of Issue

Based Network meetings, and the more extensive

reporting of relevant issues in the monthly Funders’

News. However behind this we have also continued to

overhaul our databases, information systems and

policies as well as to monitor the growing level of

individual enquiries to ACF. While such improvements

will not necessarily be obvious to members, they

substantially enhance our ability to respond to their

needs, and remain a prerequisite for any future

development of member services. But most

significantly during 2006, under the management of

Tessa Hall, we began to work closely with our members

to establish their needs for a new and enhanced ACF

website that will come to fruition during 2007.

2 ‘ Focus advocacy on matters of high priority to members,seeking a constructive influenceon the law and public policyaffecting grant-making.’

Charities Act 2006 (England and Wales)

2006 saw the successful culmination of one of ACF’s

most time-consuming pieces of lobbying work on

behalf of members with the parliamentary approval in

November of the Charities Act for England and Wales.

ACF’s submissions and work on the Bill throughout the

various stages of its parliamentary progress proved in

the event to be extremely worthwhile with the eventual

Act including for the first time important statutory

support for charitable giving. From the pioneering

distinction in law (or regulation) between grant-making

and service-providing charities in the 2004 report of the

Pre Legislation Scrutiny Committee (to which ACF gave

evidence), the consultation process alongside the Bill

enabled the distinct role of trusts and foundations to be

regularly emphasised. One very positive outcome is the

new requirement on the Charity Commission, in

performing its functions, to act in a way which is

compatible with the encouragement of all forms of

charitable giving. This is a valuable recognition of the

importance of trusts and foundations and mirrors the

1Achieving our objectives.

2006 was the third year of ACF’s 2004-6 Strategic Plan,

within which six strategic aims guided the Association’s

work. These embrace the key external influences

impacting on the grant-making sector, and build on

ACF’s work in previous years. They are to:

1 Focus advocacy on matters of high priority to

members, seeking a constructive influence on the

law and public policy affecting grant-making.

2 Encourage mutual support, the sharing of good

practice and development of skills.

3 Improve members’ access to our services,

particularly those in the English regions and

devolved UK countries.

4 Clarify and further develop strategic relationships

with networks of grant-making support

organisations.

5 Develop a shared understanding of the role of

grant-making trusts and foundations in society.

6 Extend the benefit of ACF membership to more

trusts and foundations, including new

philanthropists and established trusts and

foundations.

This year we report below against the first four of these

aims. In respect of the fifth aim, activities under this

heading were subsumed within ACF’s other work –

notably on the Charities Bill with the consequence of far

greater awareness by government in Westminster of

the role and potential of trusts and foundations – as

well as through our work with the Better Regulation

Task Force. This shared understanding is also

approached through direct engagement with a variety

of audiences, (the Chief Executive in particular

continued to address a wide variety of audiences,

including a substantial gathering of grant seekers and

operating charities, through the year). In respect of the

sixth aim, there is separate reporting below on ACF’s

membership development in relation to established

trusts and foundations, and the development of

Philanthropy UK.



6


thrust of ACF’s submission and will provide in time a

more supportive operating environment for members.

Other relevant elements within the Act include

extensions to the conditions in which endowed

charities can spend capital, changes to the rules

concerning permanent endowment in the context of

land, and provisions intended to support living settlors

of charitable trusts.The implications of the Act will start

to bite in 2007, although their full implications will only

be realised over a longer period.

While it is notoriously difficult to anticipate emerging

issues in the legal and regulatory

framework for trusts and

foundations, we

will continue to

r e p r e s e n t

members’ interests

to government and

regulators alike as

opportunities arise.

Already, towards the

end of 2006, the

Charity Commission

invited ACF to work

with them to develop

guidance specifically for

endowed trusts and

foundations with a living

settlor.

‘Better Regulation’

Alongside ACF’s work on the Charities Bill, in

conjunction with individual members we gave

evidence in 2005 to a review of regulation for civil

society by what was then the Better Regulation Task

Force (BRTF). This resulted in the recommendations of

the subsequent Better Regulation Commission (BRC)

designed to reduce the regulatory burden for the trusts

in order to encourage new philanthropy. During 2006

the Government published a response to the report

and endorsed many of our views; with ACF being

cited twice in its eleven responses to the BRC

recommendations. In particular, the government

accepted that any perception on the part of settlors and

grant-making trustees that the law would be applied as

if it contained an absolute duty of asset diversification,

could act as a deterrent to people thinking of setting up

such a trust. They therefore recommended that “The

Office of the Third Sector will explore with the Association

of Charitable Foundations, other grant-making trusts,

and the Charity Commission what can be done to combat

that perception and to explain the requirements of the

law more clearly”.

In addition the BRC had recommended that the Charity

Commission produce a guide for those considering

endowing trusts, setting out what regulatory

constraints they will face, and what freedoms endowed

trusts will enjoy. The Government accepted “… that

guidance designed specifically for endowed charities is

required, and believes that it would be enhanced in its

creditability if it bore the stamp of the Association of

Charitable Foundations. The Commission will work with

ACF to produce this guidance”.

This was a second major success for ACF’s lobbying

work and should again have significant benefits for a

number of existing members as well as for prospective

settlors.

Consultation Responses

A key ongoing mechanism for conveying the views and

perspectives of trusts and foundations to

governments, regulators and others is via responses to

formal consultations. ACF endeavours to respond to all

those with generic relevance to members’ interests,

and to gather and collate member input on these in

many instances. Towards the end of the year, ACF was

consulting with members prior to submitting

responses to the Office of the Third Sector on the Third

Sector Review.

3 ‘ Encourage mutual support,the sharing of good practice and development of skills.’

At the heart of this work is a professional development

programme, supported by key publications.

Professional Development Programme

This is a series of events elaborating key aspects of

good grant-making practice and other foundation

activities, and organised around the academic year.



Soloists IBN

Seminars draw very heavily on the knowledge and

experience of our members, who generously give of

their time by sharing their practical expertise. The

programme was significantly expanded for the 2006/07

year and was the most extensive and varied that ACF

has ever provided for its members.The programme was

a mixture of:

• those events successfully run in previous years,

informed by feedback from delegates’ evaluation

reports

• new seminars developed in response to member

feedback.

Of these new seminars, two were specifically for trustees,

with another three for Chief Executives, trustees and

other decision-makers focusing on performance

management, complaints procedures and reviewing

grant-making strategy. Over 340 people attended the 20

training events offered during 2006, events which were

open to non-members at a higher fee.

The published programme was supplemented by a

number of other well received events including two

special seminars organised by the Baring Foundation

with ACF on collaboration between funders, and on the

governance code for voluntary and community

organisations. Entitled Countdown to Meltdown and

hosted by the City Bridge Trust, another invited

Jonathon Porritt (co-founder of Forum for the Future,

and Chair of the government’s Sustainable

Development Commission) to set out the case for

sustainable development. Other occasional seminars

during the year were attended by a further 120 people,

addressing topics such as people at risk through

homelessness and the new SORP.

Issue Based Networks (IBNs)

In contrast to the Professional Development

Programme these networks are convened by members,

exclusively for members, and they bring together

diverse trusts that share an interest in specialist funding

areas. 22 meetings were held during 2006, attended by

over 400 members. There were 14 IBNs active during

the year, and reports of most meetings were included in

Trust & Foundation News so that all members can be

aware of the discussion themes. ACF is most grateful for

the time and effort put into the planning and

convening of these networks by the many members

who take on this role – their efforts

are greatly valued by all members of the

Association.

THE FOLLOWING NET WORKS WERE ACTIVE DURING 2006:

• Asylum, Refugee and Migration

• Business Trusts and Foundations

• Capacity Building

• Children and Young People

• Disability

• Domestic Abuse

• Financial Exclusion

• Faith Based Projects

• Grants to Individuals

• Health

• International

• Monitoring and Evaluation

• Older People

• Penal Affairs

• Soloists (for those who are the sole employee of a trust or trusts)

In 2006, ACF members who had an interest in funding

environmental issues also had the opportunity to

attend the Environmental Funders Network.



8


Chairmen’s Meeting

Our annual reception for Chairmen of member trusts

was held in November, and hosted once again by

investment managers Rensburg Sheppards. We know

that many Chairs greatly appreciate the opportunity to

explore issues of common concern with their peers and

this year’s meeting generated substantial discussion

and debate. We were fortunate to be addressed by

Professor Lord Richard Layard, whose book on

Happiness – Lessons from a New Science had recently

been published. He chose to focus on mental health

issues, stimulating many questions from the audience,

and drawing a number of appreciative comments after

the event.

‘Spend Out’ grant-makers meeting

As an example of occasional ‘one off’ activities in

support of members, a small group of CEOs of trusts

and foundations that have elected to spend their assets

in the short term, rather than relying solely on

investment income to support their philanthropic

endeavours long term, established an informal forum in

which to discuss the aspirations and practical concerns

of ‘Spend Out’ grant-makers. Some of their shared

experience has been written up for the benefit of

members of the group, as well as being published in

Trust & Foundation News.

Masters Degree in Grant-Making

Grant-making in the UK by charitable, public and

statutory funders amounts to more than £6 billion a

Chairmen’s Meeting

year and it directly employs around 5,000 people. The

establishment of academic qualifications for grant-

makers is therefore to be welcomed. Along with some

of our members, the Association has welcomed the

opportunity to sit on the steering committees of both

the post-graduate qualification in grant-making and

the Masters degree in Grant-Making Management at

the Cass Business School at City University.

Special Publications

During 2006, in further support of good practice and

skill development, ACF produced on its own a

publication entitled SORP Made Simpler, and in

association with others, a document entitled

Jargonbuster. As both were supported by additional

funding their role is more fully explained in Section 6

below on ‘Projects’.

4 ‘ Improve members’ access to services, particularly those in the English regions anddevolved UK countries.’

While we have continued to improve our services to

members overall, we continue to find that delivering

events regionally remains challenging because of the

greater dispersal of our members outside of the south

east of England. Other than our continuing events at

York, it is difficult to attract sufficient numbers to other

locations and, alongside the additional travel costs for

contributors, events to date have incurred costs per

head that required a considerable subsidy from

elsewhere in ACF. In itself this should not necessarily

prevent the development of additional events and

services located out of London, but it will require

additional planning and resources.

AC F ’ S M E M B E R S H I P

At the end of 2006 there were 296 members, with 27 new members having joined

during the year. This compares with 28 newmembers who joined in 2005.



Website Redevelopment

A great deal has changed since ACF was founded, not

least in respect of technology. It had become

increasingly clear to us, especially as an association of

geographically dispersed members, that our once

standard and largely static website which we populated

with information for members and the public to

download was no longer an appropriate model – or one

that could adequately support the work of our

members in future. It was time to rethink the role and

purpose of the website, and to refocus it more

appropriately for our current activities.

Consequently during 2006 we spent much time talking

with members about the website and seeking their

views, both informally and in more structured ways,

prior to planning the structure of a new website for the

Association. Taking on board members’ views about

what they would find most useful, the intention is that

the new site will facilitate a step-change in our services

to members, notably through enabling interaction

between them. After a rigorous tender process, a

company has been commissioned to work with us on

the site with a view to launching the new version in the

autumn of 2007. For the first time those members who

wish to do so will be able to communicate directly with

each other via the site, without having to be routed

through ACF staff. The information available to them

will be significantly enhanced and ACF will also be able

to present a more attractive ‘shop front’ to potential

members, many of whom discover us via the internet. In

contrast to many of the more ‘static’ sites of our

members, the technology required to develop such an

interactive membership association website has proved

complex and the redevelopment is

proving to be a major project for an

organisation of our size. It has already involved

significant input from all staff, but especially from Tessa

Hall who is leading the project.

Because of the scale of the work it was not possible to

fund it all from within ACF’s own resources and we are

most grateful to have received support at the feasibility

stage from the Abbey Charitable Trust and in the

development work from the Bedford Charity (The

Harpur Trust).

Meanwhile we have maintained and updated our

existing website which continues to act as an

important communication channel with all members,

wherever they are based. The password protected area

provides members with up-to-date event information,

special interest briefings, and member-only resources

such as downloadable copies of Funders’ News and Trust

& Foundation News. Usage of the website continues to

grow, with the average monthly number of visitors

rising from 16,000 in 2005 to over 20,000 during 2006.

Trust & Foundation News (TFN)

During 2006 we published four editions of our flagship

magazine keeping readers up to speed with grant-

making trends, and especially offering the opportunity

for both staff and trustees to share the experience and

perspective of other foundations.



10


Inevitably, as the Association representing grant-

makers, we get a continuous flow of enquiries about, or

seeking, funding from the UK and abroad. Although

this is not part of our core role we try to respond

helpfully to such requests with, as far as is possible,

standard replies. Other non-member enquiries include

those seeking information about trusts and

foundations, and individuals considering establishing a

grant-making trust. For example we were contacted by

a consultant working with a leading community

regeneration company who wanted advice about

establishing a company trust. We set out the different

ways that this could be approached and referred them

to some key resources; a few months later, the

company created a foundation which is now running

as a community investment programme funded by 1%

of annual profits.

Hotdesk and place to meet

We have continued to provide our free hotdesk

facility for members based outside London, together

with access to our library of books and journals.

We are gratified that more members are using this

service, not only for the benefits for them but for the

increased contact with members that this provides

for the ACF staff team. Our office is very near Euston

and King’s Cross St Pancras stations, and our

meeting room is available for hire at a very

competitive rate.

Funders’ News

Our monthly news

bulletin, Funders’ News,

provides staff of

member trusts

particularly with a

regular update of

information about

legislation, regulation,

and the wider

voluntary sector,

summarising what

they need to know

in an accessible

n e w s l e t te r - s t y l e,

format. Targeted at trust directors and their staff,

Funders’ News remains a popular core service

to members.

Support and advice

Throughout 2006 we continued to benefit from two

members of staff supported by the grant from the

Atlantic Philanthropies which enables us to deal much

more effectively and efficiently with member queries.

During 2006, ACF responded to over 300 individual

requests for help or advice on a wide range of topics

including:

• grant-making policy and practice

• legislative and regulatory issues

• staff and premises management concerns

• developments and trends in the sector.

When appropriate, we endeavoured to answer many of

these questions ourselves, or else signpost members to

other organisations or other members who might help.

We are very appreciative of the support such members

offer to other members in this way.

Sometimes the enquiries serve as our own ‘eyes and

ears’ and suggest additional support for members that

we could provide. For example, a member sought

information about others who were active in funding in

Northern Ireland and wanted to examine possible

models for a Northern Ireland IBN; we discussed

different options and following a note in Funders’ News

seeking members’ views, a few months later a meeting

in Belfast was being planned and the prospect of a new

Issue Based Network became a reality.



under the Charities SORP 2005.

Entitled SORP Made Simpler this key piece of

guidance for members was written by John Shuffrey of

Saffery Champness, edited by Carol Mack, supported

by a small group of members and financially

underwritten by the Tudor Trust in respect of the

printing and design costs.

The guide is a clear example of ACF’s role in (i)

providing specific, expert and authoritative advice for

members – it was endorsed by the Charity Commission

– while also (ii) raising the profile of members and their

work with bodies such as the Commission, the Charity

Finance Directors Group, and others; in consequence

(iii) it helped to improve the professional environment

in which trusts and foundations operate.

SORP Made Simpler was

launched at a reception in

June hosted by Saffery

Champness, with guest

speaker Andrew Hind, Chief

Executive of the Charity

Commission. The guide

itself achieved widespread

press coverage, including

favourable comments in

Third Sector, Voluntary

Sector Magazine, Charity

Finance and reports from

the Institute of Chartered

Accountants. The Charity

Commission featured

the guide on their

website, and it was also noted on other

websites including that of Amazon. Perhaps as a

consequence, ACF’s website saw a significant increase

in visitor traffic during June and July 2006. The report

itself is being sold and distributed by the Directory of

Social Change since ACF’s experience is that this is a

specialist task for which the Association is not well

equipped and does not have appropriate publicity or

sales systems.

Jargonbuster

The lack of clarity about the meaning of such terms as

output, outcome and impact causes problems for

grant-seekers and had been an issue identified as a

5 ‘ Clarify and further strategic relationships withnetworks of grant-makingsupport organisations.’

In addition to work with our own members, it is vital for

ACF to look outwards, maintaining and developing co-

operation with other bodies that share many of our

aims. These activities can provide valuable links for our

members, and sometimes afford access to experience

elsewhere that can facilitate their thinking and work.

We continued our strategic relationship with the

Community Foundation Network, maintained close

links with the Association of Charity Officers and

(particularly since it was our own project) with London

Funders, and collaborated with some of the other

Funders Forums in the UK. We continued to benefit

from the CAF Collaborative Grant awarded to ACF in

2005 which included an award of up to 30 days of

consultancy support and which enabled us to continue

reviewing our structures and approach towards

commercial sponsorship.

Grant-making worldwide

Outside of the UK, our principal contact has been with

the European Foundation Centre, and its satellite

body of grant-maker associations, bodies playing an

equivalent role to ACF across the other countries of

Europe. The CEO maintains regular contact with his

counterparts in Australia, Canada and New Zealand,

where there are comparable charitable and

philanthropic structures from which we in the UK can

learn. ACF continues to receive regular philanthropic

visitors and delegations from around the world.

6 Projects.

Publications

SORP Made SimplerThe principal publication during the year was a 114

page guide for grant-making charities on reporting



priority concern by members. Consequently ACF

chaired the Jargonbuster Steering Group throughout

2005, a collaboration that aimed to encourage the

definition and more consistent use of such terms. Work

on this continued into 2006 and led to a website hosted

by the Charities Aid Foundation (CAF) containing an

interactive and ‘download to print’ version of an interim

document. There was on-line consultation until June, in

which website visitors were asked to respond with

comments about both the concept and contents of the

Jargonbuster document.

The hard copy of the final publication was supplied to

all ACF members. It received good publicity, occupying

the number two spot on the Sector News section of

the Charity Commission website homepage for two

weeks, as well as having a short report in Third Sector

magazine.

The work on Jargonbuster was supported by a CAF

collaborative grant together with funding from the City

Bridge Trust, the Lloyds TSB Foundation for England and

Wales, and the Wates Foundation, together with some

project funding for the evaluation of the results of the

on-line consultation. Jargonbuster is now available on

the Performance Hub website.

London Funders

Following the successful award of a three year grant in

October 2003 from the London Development Agency

to support the work of Funders in London, London

Funders (LF) has continued to develop and implement

a full programme of events aimed at highlighting good

practice in funding. Previously named the London

Funders Group, LF was successfully incorporated as a

company in 2005 and as a charity in 2006. LF’s full

programme of events has been expanded to include

project groups that focus on either key London issues

such as the 2012 Olympics/Paralympics or on good

funding practice and implementation. LF continues to

attract a wide range of members who now support its

work as subscribing members.

Grant Risk Management Project

From March 2006 ACF ran a one year Grant Risk

Management Project that had been set up following

the exposure of a number of ACF members to

suspected fraudulent grant applications. The project

aims to raise awareness of the issue amongst member

trusts and foundations, and to help share and develop

good practice in this area. The project was supported

by a consortium of members and was led by a part-

time project officer, Melanie Griffiths.

During the year, the project started to promote the

good practice that already exists amongst many trusts

and foundations. Advice and guidance was also sought

from other sectors, including the financial services

industry, on issues such as verifying identities. Liaison

was also established with the Charity Commission, the

Metropolitan Police, the Fraud Advisory Panel and

others actively involved in the prevention and

detection of fraud.

As part of the project, a series of events was held for

members, including a specially adapted training course

run in London and York as part of ACF’s Professional

Development Programme, Grant Fraud Awareness for

Trusts and Foundations. Written guidance is being issued

to all members, and several have contacted the project

officer for support and guidance on specific queries.

In conjunction with Buzzacott, the UK agents for the

GIFTS grant-making software, ACF initiated a pilot data

sharing project with some members to explore the

potential for data sharing with a view to highlighting

joint, and possibly duplicate, funding.

Philanthropy UK

ACF’s original Philanthropy UK Project ran under the

direction of Theresa Lloyd from 2001 to mid 2004, and

has continued under the guidance of a voluntary

steering group that continued to publish the quarterly

Philanthropy UK Newsletter.

12



New and improved resources In November 2006 Philanthropy UK launched The

Philanthropy Directory, the comprehensive guide to

the wide range of charitable services and products for

UK givers. Whatever their level of giving, this new

online resource connects donors to the information

and support they need to give effectively and to feel

confident about their giving – from databanks of

possible charities they can support, to advisory services

specially tailored to the individual donor. It also

includes detailed profiles of many of these

organisations.

Meanwhile, the Philanthropy UK Newsletter

continues to grow rapidly. Readership doubled in

2006, with subscribers representing 48 different

countries around the globe. The Newsletter – which

has been hailed as “lively, interesting and professional”,

“inclusive and highly readable”, and “a first-class

publication” – is the leading publication on UK

philanthropy. It is free, available only online

www.philanthropyuk.org, and published quarterly. Its

community of contributors and subscribers includes

philanthropists and their professional advisors, grant-

making foundations, corporates, social entrepreneurs,

academics, government and regulatory officials,

various press, as well as charity trustees, executives

and fundraisers. Guest contributors have included

Sarah Brown, Jon Snow, Anthony Tomei, Julia Unwin

and Geraldine Peacock.

Donor advocacyPhilanthropy UK has also begun to engage more

actively with government as an advocate for

individual givers. As part of these efforts Philanthropy

UK hosted site visits to several charities funded by A

Glimmer of Hope, the foundation run by David Gold,

Chair of the Philanthropy UK Advisory Board. Senior

civil servants at HM Treasury and HM Revenue &

Customs were able to see first hand the impact small

charities can have, as well as the challenges they face,

such as sustainable funding, and administrative and

regulatory burdens.

For more information about Philanthropy UK, contact

Susan Mackenzie, Director or visit the dedicated

website at www.philanthropyuk.org

In April 2006 the Office of the Third Sector in the

Cabinet Office awarded ACF a three-year, strategic

grant to fund Philanthropy UK’s work promoting

effective giving. We are one of five strategic partners

selected for this new funding stream, which we believe

underscores Government’s commitment to promoting

charitable giving, as laid out in its manifesto on

A Generous Society.

Crucial to securing this funding was the hard work and

dedication of the voluntary Editorial Board of the

Philanthropy UK Newsletter, chaired by David

Carrington. We are especially grateful to David and his

team – Beth Breeze, Susan Mackenzie, Bernard Mercer

and Sue Wixley. The support of several ACF members

who have provided interim funding has also played an

important role in ensuring Philanthropy UK’s

continuing development.

New mission and brandingFollowing the grant award, an advisory board of leaders

from philanthropy development bodies and others

across the sector was established to oversee the

initiative, and Susan Mackenzie was appointed as

Project Director. A strategy review resulted in a

refreshed mission and objectives, as well as a re-

branding. Today Philanthropy UK has three main aims;

they are to:

• inspire new givers;

• inform and share knowledge and best practice

with all those involved in giving; and

• connect givers to charities, networks and sources

of advice and information.

It is the starting point for people who wish to give

effectively, develop their knowledge and share

experience.



14


“ With no exceptions, A Guide to Giving is the

most useful and insightful publication that

I have ever possessed. It is an absolute boon

for me in my charity work.”David P Coombe of the Coombe Trust

7Future Plans.

Our priorities continue to be to ensure we have the

resources and capacity to deliver our services for

members. The ending of our development grant from

the Atlantic Philanthropies in 2007 certainly brings this

into sharper focus and will require a much greater

emphasis on income generation for ACF in the

immediate future.

In parallel, a growing issue for ACF is how far we must

balance our resources in providing information in the

form of publications and mailings – which is a benefit

going to all members – compared with supporting our

events and meetings – which just benefit those that

attend. This issue is compounded by the growing

number of individual requests for advice and

information, a service that members value in principle

but one that is not sustainable if the enquiries continue

to grow, and if we wish to serve all members equally

well. In the light of the increasing demands of

members, and the changing financial circumstances in

which ACF finds itself, it will be necessary to review

further in 2007 the services that the Association can

realistically provide.

Some initiatives likely to be taken forward in 2007

include a combination of the outcome of the Better

Regulation Task Force and ACF’s work on the Charities

Act; this has led to the formation of a working group

involving the Charity Commission to undertake

further interpretation of Commission guidance

directed primarily at those trusts with living settlors. A

guide to the Charities Act for England and Wales

specifically for grant-making charities is planned.

It is also anticipated that 2007 will see the

considerable development of Philanthropy UK with

plans that include the launch of a new website and a

new fortnightly e-bulletin to

keep givers abreast of current

philanthropy news. This is

running on from the existing

wording which I have lined to

the next sentence now: We will

also be publishing the findings

of new research exploring

attitudes toward and

experiences in giving by

Britain's wealthy, as well as

the type of support private

clients are seeking for their

philanthropy, which builds

upon Why Rich People Give

published in 2004. With the

excellent feedback we

have had for A Guide to Giving, (see below left)

we also look forward to beginning work on a third

edition of this essential, free handbook for anyone

who would like to support charities and good causes

effectively.

8 Financial Review.

Principal funding sources

ACF’s principal sources of funding are membership

subscription and fees from conferences, seminars and

other meetings held throughout the year.

ACF’s financial position improved marginally in 2006,

largely as a result of a further increase in subscription

income together with additional income received from

seminars and other meetings.

Members pay an annual subscription on a sliding

scale, which is based on their grant expenditure in

the previous year. For the first time in three years

2005 saw the trend of reducing membership

subscription income reversed, a trend we are pleased

to report continued throughout 2006. The further

increase of just over £8k this year over 2005 mirrored

the fact that the rate for each subscription band

increased by an average of 3% over the same period.

Bank Interest also rose sharply in 2006 contributing



some £6.5k more to unrestricted income than in the

previous year. There was no residential conference in

2006 which makes comparison between the two

years difficult but the Professional Development

Programme and other seminars contributed £4.5k

towards overall unrestricted income for 2006.

Unrestricted income from member subscriptions, as

well as voluntary income from other sources was used

to provide services to members and others in support

of our key objectives, as set out above. The absence of

funds from the conference together with the increased

cost of Members’ Services (£7.5k) and the increased

costs of servicing accommodation in Central London

(£5.5k) has meant that there was a reduction in the

surplus this year to £5,554.

Reserves Policy

The Trustees have reviewed the unrestricted reserves

the Association requires to sustain its operations. They

concluded that a target general reserve equivalent to

approximately three months unrestricted fund

expenditure should be set. This would provide

sufficient funds to cover management and

administration and support costs of the Association for

that length of time.

Our current level of unrestricted reserves stands at

£84,812, up from £79,258 in 2005. It continues to be our

aim to build up our reserves until our target level,

currently £100,000, is reached.

Less than£150,000(117)

More than£4,000,00 (26)

£1,000,001 -£4,000,000 (45)

£500,001 -£1,000,000(31)

£150,001 -£500,000(77)

Total grant expenditure of members during financial years ending in 2006: £1,721,731,010

9 Legal & Administrative Details.

Status

ACF is a registered charity, with registration number

1105412. A company limited by guarantee, we are

registered in England and Wales, with company

registration number 5190466. The address of ACF’s

principal office and registered office is: Central House,

14 Upper Woburn Place, London, WC1H 0AE

ACF has a wholly owned trading subsidiary, ACF

Conferences and Seminars Limited, a company limited

by share capital and incorporated on 5 January 2000,

registration number 3902450.

Charitable objects

ACF’s objects are “to further the work of charitable

grant-making trusts and institutions for the public

benefit by:

• advancing the education of the public in such

trusts and institutions and carrying out research

and publishing the results of such research;

• promoting the collective and individual

effectiveness of such trusts and institutions and

better methods of administration and

management of their resources”

Governance

The Executive Committee comprises at least nine and at

most 15 members, including the Honorary Officers, but

excluding co-opted members. (There was a total of 17

members in 2006.) Most Committee members are

nominated and elected by full member organisations

and the normal term of office is three years; re-election

for one further term is permitted. The Committee has

powers to co-opt additional members for an initial term

of one year. New members of the Executive Committee

receive an information pack about ACF as part of their

induction and have the opportunity to meet with the

Chairman, Chief Executive and staff.

The Executive Committee decides key strategic and

operational issues, while responsibility for the day to day

management of the association is delegated to the Chief



16


Executive. For example, decisions about the location and

timing of ACF’s biennial conference are taken by the

Executive Committee. A strategic plan for the period

2004-06 was adopted by the Executive Committee,

together with a workplan for the current financial year.

Progress against this workplan is reported to the

Executive Committee by the Chief Executive in his

regular Management Reports. ACF operates within an

annual budget agreed by the Executive Committee and

any variances of expenditure over a pre-determined

limit have to be approved by them.

The Association’s Executive Committee has reviewed

the major risks to which the Association may be

exposed and is taking reasonable steps to mitigate

them. ACF has a Risk Register, now updated by a

working group from the Executive Committee, with

timescales added where relevant, although many of

the strategies used for managing risk are part of ACF’s

ongoing operations. Under consideration is a more

formal mechanism to incorporate EC members’ views

into the Register.

Directors’ responsibilities

Company law requires the directors to prepare

financial statements which give a true and fair view of

the state of the company’s affairs and of the profit or

loss for the period reported on. In preparing these

financial statements, the directors are required to:

• Select suitable accounting policies and then

apply them consistently;

• Make judgements and estimates that are

reasonable and prudent;

• State whether applicable accounting standards

have been followed, subject to any material

departures disclosed and explained in the

financial statements;

• Prepare the financial statements on the going

concern basis unless it is inappropriate to

presume that the company will continue in

business.

The directors are responsible for keeping proper

accounting records which disclose, with reasonable

accuracy at any time, the financial position of the

company and enable them to ensure that the

financial statements comply with the Companies Act

1985. They are also responsible for safeguarding the

assets of the company and hence for taking

reasonable steps for the prevention and detection of

fraud and other irregularities.

Advisers

Bankers Cater Allen Private Bank9 Nelson Street, Bradford, BD1 5AN

Close Brothers Limited

10 Crown Place, London EC2A 4FT

Solicitors Farrer & Co, 66 Lincoln’s Inn Fields,

London WC2A 3LH

Russell-Cooke, 2 Putney Hill, Putney,

London, SW15 6AB

Auditors Kingston Smith LLP

Devonshire House

60 Goswell Road

London EC1M 7AD.

Approved by the Executive Committee on

28 August 2007 and signed on its behalf by:

Professor Gerald Manners OBE – Chairman

Jonathan Sheldon – Treasurer



Summarised Accounts

Independent Auditors’ Statement to the Executive Committee of theAssociation of CharitableFoundations

We have examined the summarised financial

statements of the Association of Charitable

Foundations set out on pages 18 and 19.

Respective responsibilities of theExecutive Committee and Auditors

The Executive Committee is responsible for

preparing the summarised financial statements in

accordance with the recommendations of the

charities SORP.

Our responsibility is to report to you our opinion on

the consistency of the summarised financial

statements with the full financial statements and

Executive Committee’s Annual Report. We also read

the other information contained in the summarised

annual report and consider the implications for our

report if we become aware of any misstatements or

material inconsistencies with the summarised

financial statements.

Opinion

In our opinion the summarised financial statements

are consistent with the full financial statements and

the Executive Committee’s Annual Report of the

Association of Charitable Foundations for the year

ended 31 December 2006.

Kingston Smith LLP

Chartered Accountants

Devonshire House

60 Goswell Road

London EC1M 7AD

28 August 2007

for the year ended 31 December 2006

Trustees’ ReportThese summarised accounts are extracted from the

full unqualified audited accounts approved by the

Executive Committee (who are the Association’s

trustees) on 28 August 2007and will be submitted to

the Charity Commission and Companies House by 30

September 2007. They may not contain sufficient

information to allow a full understanding of the

financial affairs of the Association. For further

information on the detailed notes to the accounts

and the auditors’ report, the full accounts should be

consulted. Copies of these can be obtained from the

Association of Charitable Foundations, Central

House, 14, Upper Woburn Place, London, WC1H 0AE.

Signed on behalf of the Executive Committee on 28 August 2007

Jonathan Sheldon – Treasurer Professor Gerald Manners OBE – Chairman

SUMMARISED STATEMENT OF F INANCIAL ACTIVIT IES


18

Summarised Statement of Financial Activities

year ended 31 December 2006

Unrestricted Restricted Total Total

Funds Funds 2006 2005

£ £ £ £

INCOMING RESOURCES

Grants, Gifts & Donations – 178,978 178,978 109,725

Bank Interest 15,556 – 15,556 9,091

Members’ Subscriptions 337,218 – 337,218 329,099

Conferences and Meetings 28,845 – 28,845 142,075

Fees and Grants – 261,379 261,379 133,794

Sale of Publications 2,139 – 2,139 3,568

Earned Income 32,632 – 32.632 31,870

Rent and Services 30,858 – 30,858 35,799

Total Incoming Resources 447,248 440,357 887,605 795,021

RESOURCES EXPENDED

Members' Services 299,213 – 299,213 291,730

Conferences and Meetings 24,329 – 24,329 102,567

Rent and Services 109,996 – 109,996 104,365

Project Expenditure – 388,066 388,066 223,188

Governance Costs 8,156 – 8,156 9,420

Total Resources Expended 441,694 388,066 829,760 731,270

Net incoming resources 5,554 52,291 57,845 63,751

Reconciliation of Funds

Total funds brought forward at 1.1.06 79,258 114,977 194,235 130,484

Total funds carried forward at 31.12.06 84,812 167,268 252,080 194,235

19SUMMARISED BALANCE SHEET


Summarised Balance Sheet

as at 31 December 2006

2006 2005 £ £

TANGIBLE FIXED ASSETS 38,109 50,391

INVESTMENTS 2 2

38,111 50,393

CURRENT ASSETS

Debtors 93,512 134,922

Cash at Bank and In-Hand 315,484 141,882

408,996 276,804

Creditors: due within one year (187,027) (128,962)

Net Current Assets 221,969 147,842

Provisions (8,000) (4,000)

TOTAL NET ASSETS 252,080 194,235

FUNDS

Restricted Funds 167,268 114,977

Long Term Reserve & Contingency Fund 70,000 70,000

General Fund 14,812 9,258

252,080 194,235

ACF is the leading membership associationfor grant-making charities in the UK.We provide help and support for thedistinctive role of grant-making trusts andfoundations, while respecting – andprotecting – their independence. Throughour services to members we provide aframework in which trusts and foundationscan learn from each other's experience,explore matters of common concern andachieve good practice in grant-making.We have a strong track record ofrepresenting the common interests ofgrant-makers to government, regulators,the media and other stakeholders onissues that affect all independent trustsand foundations.

To join ACF or find out more about the services we offer, contact us now on020 7255 4499 or [email protected]

Association of Charitable Foundations is a company limited by guarantee registered in England and Wales.

Company Registration No 5190466. Registered Office: Central House, 14 Upper Woburn Place, London WC1H 0AE.

Registered Charity No 1105412.

Central House, 14 Upper Woburn PlaceLondon WC1H 0AE

Telephone 020 7255 4499Facsimile 020 7255 4496

Email [email protected] Website www.acf.org.uk

Designed by: Patrick Mahony – 01273 245045 Printed by: The Russell Press – 0115 9784505

Association of Charitable Foundations

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1065 ACF annual report 2006 · 2015-11-19 · •Barrow Cadbury Trust ... Project. ACF ANNUAL REPORT 2006 And most especially, to all of the staff and trustees of our members who