CARETECH_CHARITABLE_FOUND - Accounts

Chairman’s Statement

This year has been an exciting one with significant developments, with the original intentions behind the Foundation’s establishment now starting to be realised. It is gratifying to see the impact of the Foundation now being felt by individuals, local communities and through a number of ground-breaking partnerships. As this report sets out, the Foundation’s support has now reached over 105,000 individuals since we started.

Delivering impact through our Partnership Grants

This report sets out the impact of our highly effective first wave of Partnership Grants. Over the course of this year, with increasing demand for the Foundation’s support, we have added new partnerships by which we expect to deliver even greater impact. These include:

• a powerful programme of employability support with the EY Foundation for young people, with a particular emphasis on care-experienced young people;

• support for young homeless people in the North East; and,

• support for the astonishing new Toddler Lab research facility at Birkbeck University of London investigating the early signs of autism and related conditions.

I am specially pleased at how much support in kind staff from CareTech plc has been able to contribute to our partnership programmes, the the company's additional support in kind for this year alone valued at over £15,000.

Big changes through our small grants

As important as these major grants are, our small grants funds remain powerful vehicles, delivering real impact to individuals and local communities. The community projects we have supported are doing amazing work and the feedback provided by grant recipients is testimony to the importance attached to these grants. Equally pleasing is the increasing number of staff of CareTech plc whose charitable fundraising activities we have been able to support through the Match-funding Grants.

We were pleased to establish a new Staff Hardship Fund this year with a restricted donation from CareTech plc and advice from our lawyers to ensure the Fund is properly structured. To ensure proper governance, the independent trustees are solely responsible for decision-making in respect of these grants. I am very grateful for the thoughtful way in which they and the staff team have undertaken their roles in respect of the management of this important, and often emotionally difficult, grant fund. This new fund now enables us to provide support to staff members of CareTech plc in significant financial hardship at times of often heart-wrenching life challenges.

Operating at the highest standards of governance

As a Board, we continue to place great store in ensuring the Foundation is based on the highest standards of governance and probity. Over the course of this year, we have:

• successfully secured registration with the Charity Commission for the new incorporated structure of the Foundation;

• undertaken a formal review of the Foundation’s compliance with the Charity Commission’s new Guidance for charities with a connection to a non-charity and are confident that the Foundation complies with this important new guidance;

• completed an assessment of the Foundation’s governance against the standards suggested in the Charity Governance Code; whilst we have agreed a number of ways by which we might make further improvements, we were reassured that the Foundation is substantially compliant with the high standards of the Code.

• published our new Diversity, Equity and Inclusion Statement, setting out the comprehensive approach by which we seek to ensure that our services are fully accessible to all; and,

• agreed an increase in the number of independent trustees, welcoming the appointments of Nash Jaffer and Jessica Taplin to the Board.

Measuring our impact

To ensure our work is focussed on areas of most need, we have this year put in place our new Theory of Change which now makes clear that the Foundation’s principal role must be to support and champion the social care sector, care workers and those living in care. This powerful Theory of Change is complemented by our new Impact Assessment Framework, ensuring that we can properly assess the full impact of our work, and this report accompanies an initial impact report on which we will build in future years.

Just the start

All of this work perhaps underlines why the Foundation is increasingly recognised as the leading corporate foundation in the social care sector. Wider recognition, such as through the Charity Times Awards 2019, gives us confidence that we are on the right tracks. I very much hope that where we lead others will follow.

I am hugely grateful to the contributions and commitment of my colleague trustees and our dedicated staff team. Unfortunately for them, I consider that we are only at the very beginning of a much longer journey and, whatever successes we have had to date, there is much to do to realise our long-term ambitions for the Foundation!

Haroon Sheikh

Chairman

The charity’s purposes

The following is a summary of the Foundation’s purposes as set out in full in its governing document (the Charitable Objects in full are annexed below):

What

• General charitable purposes

• Disability

• The prevention or relief of poverty

Who

• Children/young people

• Elderly/old people

• People with disabilities

• Other charities or voluntary bodies

• The general public/mankind

How

• Makes grants to Individuals

• Makes grants to organisations

The trustees have determined that the Foundation’s work by which to deliver public benefit in relation to its Objects should be focused on supporting and championing the social care sector, care workers and those living in care. In particular, the Foundation’s support is particularly targeted on the following three impact areas:

• Physical and learning disabilities and mental health. Supporting disabled people and those with long-term health difficulties, including those with mental health conditions and complex physical and learning disabilities.

• Skills development for the care sector, especially for those from deprived and disadvantaged backgrounds to equip them for careers in the care sector.

• Supporting communities, including the family and friends of CareTech plc employees facing significant financial hardship or for issues affecting local communities.

The trustees have further confirmed that the Foundation’s support should be devoted to supporting those in need in the UK and in developing countries overseas.

The main activities undertaken for the public benefit in relation to these Objects

The Foundation delivers its key objectives through the following key approaches:

• Partnership Grant-giving. The Foundation supports a small number of significant partnerships with credible and high-quality charities and social enterprises consistent with its three priority impact areas.

• Match-funding. The Foundation provides match-funding to CareTech plc staff’s individual fundraising efforts for charitable causes in line with the Foundation’s Charitable Objectives.

• Community grants. This small grants programme provides support to the family and friends of CareTech plc staff facing financial hardship or for issues affecting local communities.

• Staff Hardship Fund. The Foundation receives a restricted donation from CareTech plc to enable us to provide small grants to CareTech plc staff and those who may recently have left the company who find themselves in significant financial hardship or at serious risk of becoming in significant financial hardship.

The Trustees well understand the imperative of ensuring that the work of the Foundation is undertaken entirely independently of its corporate founder and that its activities are focused exclusively on advancing the Foundation’s charitable purposes for the benefit of the public. We set out below the achievements made over this last year of the Foundation’s operations in delivering our charitable mission.

Charity Commission guidance on public benefit

The Trustees have complied with their duty pursuant to Section 4 of the Charities Act 2011 to have due regard to guidance published by the Charity Commission regarding Public Benefit, a copy of which is provided to all trustees on appointment.

Main achievements

Since its establishment in 2017, the Foundation has distributed approximately £910,000 in grants and donations. Increasingly, the Foundation is recognised as the leading corporate foundation in the social care sector.

Following the strong foundations put in place last year, this year has seen a strong year of achievements, notably:

• A powerful portfolio of Partnership Grant recipients is now in place, with major new partnerships with EY Foundation, Birkbeck University of London and DePaul having been added in this last year. We were particularly pleased with recognition of our partnership approach through the Charity Times Awards 2019.

• Growing demand for our small grants, enabling the Foundation to support a wide range of charitable causes and encouraging CareTech plc employees’ fundraising efforts.

• The development of a powerful new Theory of Change and supporting Impact Assessment Framework, placing the Foundation at the forefront of work in this area in the corporate foundation space.

• An increasingly strong external brand, with growing online and offline media recognition, enabling the Foundation to use its influence to further impact upon its core concerns; support of the first-ever Care Sector Fundraising Gala Dinner was a particular success on this front.

• The launch and successful implementation of a new Staff Hardship Fund by which to support CareTech plc staff facing significant financial hardship.

Incorporation of the Foundation, thereby ensuring that the charity is on the most robust possible organisational footing, has been an important achievement this year. The Board’s work in developing strong policies, processes and procedures has ensured that the Foundation is well-placed in terms of its governance and structures. This is demonstrated by its high level of compliance with the Charity Commission’s new Guidance for charities connected to non-charities and also with the Charity Governance Code.

Theory of Change

A Theory of Change is a powerful tool, particularly for social impact organisations, to describe the need an organisation is trying to address, the changes it wants to realise and the activities which it will deliver to create these changes. A good Theory of Change can provide a clear and succinct encapsulation of the purpose of the organisation and how every aspect of its work contributes to delivering its vision. Crucially, a Theory of Change should underpin a robust impact assessment methodology.

Whilst the Theory of Change methodology is widely accepted across the charity sector, it is less commonly used for grant-making foundations with multiple areas of focus and for corporate foundations. With a charity such as ours, with its objectives spanning a wide range of issues, providing this level of clarity and focus through the Theory of Change approach is undoubtedly trickier. But, as we have shown, far from impossible and the benefits are significant. Given that trustees expect our partnership grant applicants to have a Theory of Change in place, we simply did not feel it was acceptable not to apply our expectations to ourselves!

Working with Bean Research, we undertook an extensive consultation exercise with stakeholders, partners, trustees and staff to develop our new Theory of Change. The end result of this exercise is set out in the schematic below, which we feel provides a far better articulation of the value that the Foundation can provide, as summarised in our updated Purpose Statement:

“The CareTech Foundation delivers meaningful impact to communities in the UK and overseas by supporting and championing the social care sector, care workers and those living in care.”

The new approach has now been implemented for all current partnerships. Alongside this Annual Report, we are publishing a separate Impact Report based on the new Theory of Change. In future years, with the benefit of more data from partners, we will incorporate the Impact Report into our Annual Report.

Programme delivery

The Foundation now manages four grant-making funds by which to deliver its mission, actively overseen and managed by its trustee board. This last year has seen strong growth in applications for all funds, requiring trustees to make difficult decisions to remain focussed on the Foundation’s priorities and manage its resources effectively.

Partnership Grants

The Foundation supports a small number of significant partnerships with credible and high-quality charities and social enterprises consistent with its three key focus areas.

To be considered for the Foundation’s support, any partnership should:

• involve medium- to long-term investments in innovative and high-impact programmes that will deliver one or more of the Foundation’s objectives;

• demonstrate and be contingent upon on any investment by the Foundation leveraging additional investment; and,

• where appropriate, enable the Foundation to provide wider in-kind support through the expertise of CareTech plc staff, supply chain and wider network.

Over the period of this report, we entered into the following new partnerships:

• EY Foundation – promoting careers in the care sector and helping care leavers in to employment. Our partnership with EY Foundation will create programmes which promote careers within the care industry and help care leavers fulfil their potential by moving successfully into further education and employment. Our partnership with the EY Foundation is the first programme of its kind with a specific focus on the care sector and those in care.

As part of the first stage of the three-year programme, 16-19 year olds are given intensive training in core employability skills and confidence to enable them to transition successfully from school to work or into further education. They receive quality paid work experience within the care sector to help them practise those skills and learn about careers in the care sector. They also receive one-to-one mentoring to ensure they have the support they need to take steps to thrive in the workplace.

CareTech plc employees are able to volunteer as mentors for the programme participants, guided by EY Foundation expertise and support. The Foundation was delighted that this exciting new initiative was shortlisted for the Cross-Sector Partnership of the Year Award at the Charity Times Awards 2019.

• Birkbeck University of London – understanding the development of autism. Breakthroughs in the understanding of the development of autism and other behavioural conditions could be made thanks to a new laboratory to study toddlers, funded in part by the CareTech Foundation.

Research at the £3.7m Wohl Wolfson ToddlerLab at Birkbeck, University of London will increase understanding of developmental disorders, hopefully leading to new interventions and transforming the outlook for people with these conditions. Using the latest wireless technologies, the ToddlerLab will enable the advanced scientific study of brain development for children from 18 months to three or four years in an environment simulating familiar surroundings for toddlers.

The new ToddlerLab will build on discoveries made at Birkbeck’s BabyLab, which has led to breakthroughs in the understanding of babies’ brain development but its facilities are less well suited to studying toddlers, who require more space as they carry out various daily activities, including walking and playing. Research previously carried out at the BabyLab has included a study showing that babies who react more strongly to sudden changes in light intensity may be more likely to be diagnosed with autism spectrum disorder. It is hoped that the ToddlerLab will lead to similar breakthroughs in the understanding of young children’s brain development, so that conditions can be identified and addressed earlier.

• DePaul UK – improving the mental health of homeless young people in North East. The Foundation entered an important new partnership with Depaul UK to transform the lives of young people experiencing homelessness in the North East. Depaul UK supports young people aged 16-25 who find themselves homeless by providing emergency accommodation, supported housing and other services which help young people rebuild their lives.

Young people who experience homelessness often struggle with a variety of different pressures, with poor mental health often being a major factor. The organisations will work together to improve the mental health and wellbeing of young people living in Depaul’s supported accommodation across the region. Part of the new grant will fund a specialist mental health worker who will be focused on helping young people grow their personal confidence and ability to cope. Through a number of workshops and activities, the programme will build resilience and offer techniques for maintaining positive wellbeing and mental health.

We have also continued to support the partnerships below, through which we have (directly and indirectly) supported over 105,000 beneficiaries by the end of this reporting period since the programmes’ inception:

• British Asian Trust - mental health and wellbeing for all in Pakistan. We partnered with the COSARAF Foundation to jointly invest in a £1million partnership with the British Asian Trust by which they will deliver a step change in mental health and wellbeing provision in Pakistan.

In the last year, the British Asian Trust has entered into partnerships with four local partners. These partners provide incredible access and support in leading community activities, engaging schools and businesses and providing training and recruitment opportunities for local communities.

In an effort to be more accessible and increase their impact, British Asian Trust and their partners have set-up community clinics using containers, carried out door-knocking engagement exercises, began building better relationships with and educating faith healers and set-up women specific groups to provide a safe and open environment to share and discuss their experiences.

The programme has now had 23,420 attendees at their awareness-raising sessions, supporting 104,660 individuals indirectly through their various engagement activities and improved access to support for 14,031 individuals. We were delighted that the programme is increasingly securing high-level support, including public backing from the Pakistan national cricket team, who are high profile ‘influencers’ across the country.

• Skills for Care - supporting care workers and promoting employment opportunities for care leavers. We have supported sector-leading charity Skills for Care to run pilot projects that explore different ways of supporting people from traditionally under-represented groups into training or employment in adult social care.

The Seeing Potential programme has been delivered by four delivery partners, one partner having dropped out early on in the programme. Preliminary results suggest the programme has been successful in encouraging wider recruitment, with delivery partners reporting higher than expected engagement results. Skills for Care engaged 123 individuals directly through the programme, with 105 receiving employability training and support. 26 individuals have been employed as a direct result of the programme.

The partnership also included support for Value Based Recruitment workshops for recruiting staff in the care sector and the I Care…Ambassadors programme, a voluntary role to promote working in the social care sector. We were pleased that, as part of the added value provided by the company to all Partnership Grant projects, CareTech plc staff participated in both the workshops and promotion of the I Care…Ambassadors programme.

• The Care Workers Charity - assisting the UK’s care workers. The Foundation is working with The Care Workers Charity to support two projects aimed at assisting the UK’s care workers. The Care Workers Charity continue to deliver a much-needed service for individual workers in the sector hitting hard times. The Foundation’s support for this Grant remains vital as the only Crisis Grants that covers the entirety of the sector. The Care Workers Charity Crisis Grant Fund supported over 274 care workers for an average of £372 per grant award in the first half of 2019 alone.

The Foundation also provided the charity with support for their Champions programme, a voluntary role for care sector staff to spread the word about the work of The Care Workers Charity and the support it is able to provide. The Care Workers Charity has been reviewing this programme over this period, recognising the difficulties of out-of-work volunteering roles for staff within the sector. Once this review is completed, we will assess the merits of the programme further.

• Barnardo’s - development of ‘Journey’, a Digital Resource for Care Leavers. We continue to partner with Barnardo’s on a £1 million project to develop a ground-breaking digital resource to support young people leaving care. Barnardo’s have begun to engage young people and Personal Advisers in the development and initial testing of the ‘Journey’ app, following some initial delays caused by the complexities of the new GDPR data protection regime.

The Barnardo’s team opted to bring development in-house which has allowed them to closely monitor, test and develop the App and thereby saving time. They have benefitted from CareTech plc’s resources, talking to staff and service-users relevant to the App, throughout this development period. With the support of the Foundation, Barnardo’s have expanded their engagement, testing and data collection nationally, attending multiple events and workshops in England and Scotland. Barnardo’s will begin to focus on the commerciality of the App, which has always been a key focus of the Foundation, leading to more robust testing as the App nears launching phase.

Beyond the financial support provided by the Foundation, the support in kind provided by CareTech plc staff to these partnerships is significant. Harnessing the expertise and skills of CareTech plc staff in this way often brings the partnership to life and our partners comment on how much they value this contribution. Over the course of this financial year, this support in kind equates to just over 41 days, at an estimated value of over £8,000.

Community Grants

The Foundation delivers a small grants programme to support the communities, families and friends of CareTech plc staff facing significant financial hardship or for issues affecting local communities.

These grants are open to staff members of CareTech plc to support the positive contributions they make to their communities and through volunteering. These grants must be in line with the Charitable Objects of the Foundation and cannot cover matters which are properly covered by the company by virtue of an individual’s employment status.

Over the period of this report, the Foundation has provided funding of £29,662 to 25 beneficiaries through this programme, including the following examples:

• Somerset Disabled Cricket Club. Somerset Disabled Cricket Club is a self-funded organisation which was established in 1997. It encourages children and adults with any form of disability to get involved in cricket. The Club supports play at a range of levels and, with the help of Somerset County Cricket Club and the England Cricket Board, run sessions for complete beginners and newcomers to the sport, training sessions for a squad which plays in the Super 9s County Championships and some of their players play regularly for England at venues like Lords and Old Trafford. With our support, the Club has been able to fund a coach and specific opportunities for a development team, the ‘Dragons Squad’, to train and play competitive matches across the county. A development squad will help to offer more opportunities in the community and increased visibility for the Club, thereby ensuring its longevity.

• The Friendship Café. The Friendship Café provides youth and community-based activities, focusing mainly but not exclusively on young people, children and families, in the inner city and surrounding areas of Gloucester. Since 2011, the Café has also managed the St. James City Farm and now runs a variety of activities, including archery, karate, and sewing classes. Our grant supported the Friendship Café’s developments for additional resources to their city farm project and to the café.

• The Bristol Sound Project. The Bristol Sound Project aims to get more young people and those with special educational needs involved in music. It offers music workshops that encourage self-development, increase confidence, challenge stereotypes and offer the opportunity to express their own voice and creative self. The project has been working in partnership with The You Foundation for over four years and have found that their music sessions bring great benefit to those taking part. The workshops promote positive mental health, with young people able to express their emotions and thoughts through the process of their own personal creative skills. Staple Hill, where the project is based, is among the 25% most deprived areas nationally. The project aims to run 48 sessions a year which will work with over 350 young people from a range of backgrounds, supporting their wellbeing, creativity and personal skills.

• Elderslie Play Park. We were thrilled to support Elderslie Community Council’s project to reinstate the play park in the centre of Elderslie village in Renfrewshire. The children of Elderslie currently have nowhere to meet and play in the village and the new park will offer a safe environment with brand new slides, swings and other play equipment for children to enjoy. The new play park will be in the centre of the village within walking distance of all the 1000 residents under 14 years old in Elderslie. The park will offer local children a fun and exciting place to play outdoors and get exercise. With so many distractions keeping young people indoors and away from physical exercise, the new park will include outdoor gym equipment and will contribute to the health of the village. The park will be a special benefit to children at Brandy Burn, giving them somewhere to go, have fun, and get fit. Thanks to our grant, the play park is one step closer to becoming a reality.

Match-Funding Grants

The Foundation provides match-funding to CareTech plc staff’s and service users’ individual fundraising efforts for charitable causes in line with its Charitable Objects. Any member of CareTech plc staff is eligible to apply for a match funding grant of up to £250 per year for their charity fundraising activity.

Over the period of this report, the Foundation has provided match-funding totalling 26 match funding grants to a total of £6,683.65 to support the charitable fund-raising efforts of 28 staff and service users of CareTech plc to help 25 charities, including the following examples:

• A team of 12 took part in the National Three Peaks 24-hour Challenge for CALM, the Campaign Against Living Miserably. The team, many of them of them Branas employees, took park in the challenge to help tackle depression and raise awareness to the help that is available. Sadly, their friend James took his own life after a battle with depression. Their aim was to raise awareness for CALM so that others who find themselves in need might know where to turn. If they could help just one person then it was all worth it. The team were not experienced walkers but with this challenge they took the blisters, smashed through the walls, pushed their limits and shared their memories of James. Their fundraising raised a fantastic £1,582 and we were pleased to match fund the whole amount, making a total of just over £3,000.

• Cillian Devlin completed the gruelling 100-mile Prudential RideLondon cycle ride in order to raise money for Save the Children. As a Financial Director at the Cambian Group, part of the CareTech family, Cillian sees the great work of children’s services every day and wanted to give back to children across the world facing terrible circumstances. He raised £450 and received a further £250 donation from the Foundation.

• The Foundation was delighted to support one of the young people in a CareTech plc service who wished to raise money for the Glasgow Children’s Hospital where she attends as an outpatient. The young person chose to do a sponsored walk around the Greenock Cut; as a 7-mile walk this was a big challenge for her, due to the physical restrictions she faces. The young person said that the event was hard and that she wanted to give up, but is now so pleased with herself that she had done it. She also said she could not have done it without the help of the staff and other young people who supported her on the day. The young person raised £217 which was matched by the Foundation.

Staff Hardship Grants

The Foundation receives a restricted donation from CareTech Holdings plc to enable us to provide small grants to CareTech Holdings plc staff and those who may recently have left the company who find themselves in significant financial hardship or at serious risk of becoming in significant financial hardship. All grant-making is overseen by the Foundation's external trustees alone to ensure appropriate independence and good governance.

In the first year of the Staff Hardship Fund’s operation, we provided grants totalling £25,000 to 19 staff facing significant hardship. Below is a selection of comments received from beneficiaries of the Fund, which reveal the impact these grants is making:

“I would like to say a massive thank you to the Foundation for offering me this support, words are just not enough to say what a difference this will make”

“Such a difference, really was not expecting so much help! Been amazing! Thank you again so much :)”

“Thank you once again. You have given me something I didn't think was possible... Hope”

Governance

Trustees

Ensuring good governance and the active engagement of the Foundation’s trustees remains a key priority, with trustees committed to providing strong leadership to the charity, protecting its independence and ensuring its activities are focussed on delivering public benefit.

As of February 2020, the Board of trustees comprised:

• Three suitable senior Directors of CareTech plc

Haroon Sheikh (Chariman)

Christopher Dickinson (Treasurer)

Farouq Sheikh

• Staff members

Mick Pratt - CareTech plc Care Awards 2019 Overall Winner

Lucy Arciuolo - CareTech plc Care Awards 2018 Overall Winner

• Non-Executive Director of CareTech plc

Mike Adams OBE

• Representative of the Sheikh family, the founders of CareTech plc

Akbar Sheikh

• Independent trustees

Nicholas Cheffings

Nashvir Jaffer (appointed September 2019)

Adriènne Kelbie

Jessica Taplin (appointed September 2019)

A key change this year has been the incorporation of the organisation, placing the Foundation on the strongest possible organisational footing. Following Charity Commission approval, the business of the former unincorporated trust was transferred to the new charitable company in March 2019 and the former body formally wound up.

Building on the governance framework established last year, the Foundation has continued to keep its governance arrangements under review. Over this last year, key governance developments include the following:

• Trustees agreed to increase the number of independent trustees to four, welcoming the appointments of Nash Jaffer and Jessica Taplin at the end of this financial year.

• Following the Foundation’s active engagement in the preceding consultation exercise, trustees undertook a formal assessment of its compliance with the Charity Commission’s Guidance for charities with a connection to a non-charity. Using the Charity Commission's recommended checklist, trustees were reassured that the Foundation meets the expectations of the Guidance. A number of improvements were implemented in the light of this review process, including finalising the formal Donations Agreement and Communications Protocol with CareTech plc as well as provision of this formal statement regarding trustees’ assessment of compliance which is expected to be included in future Foundation annual reports.

• Trustees also undertook a formal review of the Foundation’s compliance with the Charity Governance Code, which has been designed to help charities and their trustees develop high standards of governance. The Code is not a legal or regulatory requirement but is, rather, intended to be a tool for continuous improvement towards the highest standards. We have undertaken a review of the Foundation's compliance with the Code, using the recommended checklist. In general, we consider the Foundation to be well-placed in most areas of recommended practice. We have identified a number of areas for improvement, the majority of which were already planned. The principal areas for improvements we have identified through the review are:

  • Ensuring implementation of the Foundation’s new Impact Assessment Framework

  • Developing an Income Diversification Strategy

  • Benchmarking performance against other similar organisations

  • Reviewing effectiveness of Board

  • Providing unconscious bias training for trustees

  • Ensuring annual trustee review meetings

  • Placing our Complaints Policy on our website

• Trustees also completed the first annual review of policies and procedures, clarifying a number of policies in the light of best practice and external developments.

Staffing

The trustees were delighted to welcome Tariq Raja as Foundation Manager this year, following the departure on promotion of his predecessor Sara Smith. Tariq joined the Foundation from a successful consulting background with a range of grassroots community and charity backgrounds. The trustees also welcomed Clair Pike as Grants Officer, providing maternity cover for Karishma Patel.

The trustees took confidence in the underpinning systems and structures put in place, as well as the leadership provided by CEO Jonathan Freeman, that ensured that the Foundation’s business continued to be delivered successfully despite these staff changes in the small team.

As set out in the Foundation’s Financial Handling Manual, the CEO’s salary is reviewed annually by the trustees’ Remuneration Committee. The Remuneration Committee met during this period and agreed the CEO’s salary review in the light of his performance over the previous year. All other staff’s performance and salary is reviewed regularly, including an annual salary review, by the CEO.

Communications and Brand

The Foundation is increasingly recognised as the leading corporate foundation in the social care sector, supporting the Foundation’s mission to support and champion the sector. Successful Implementation of the Foundation’s Communications Strategy has resulted in strong growth in the Foundation’s social media presence, growing media mentions across a range of channels and, importantly, increased applications for funding across all grant funds.

The Foundation has a strong website in place with dynamic content which provides a good overview of the Foundation’s activities and developments in its work. We have used the website to host a series of thought leadership articles by our CEO, trustees and other supporters, such as the daily blog series to mark Mental Health Awareness Week and our CEO’s blog in Dementia Action Week.

Perhaps the key means by which the work of the Foundation is communicated externally is through our social media channels. Our Twitter, Facebook and LinkedIn presences are proving highly effective channels by which to communicate to a wide range of audiences and to support our delivery objectives. Our CEO’s personal blog on dementia released during Dementia Action Week was a particularly powerful example of using social media channels to increase awareness of the work of the Foundation and the issues on which we are focused. We have also launched our YouTube channel with a series of case study films to highlight the impact of the work of the Foundation and its partners.

With the support our communications agency, the Foundation’s work is also being increasingly recognised in more traditional media channels. Regional and local press coverage continues to be a popular route by which to highlight the impact of the Foundation’s Community Grants in local communities as well as the charitable fund-raising activities of CareTech plc staff which the Foundation has been able to match. The Foundation’s work is also regularly featured in the health and social care press as well as charity sector content providers. The Foundation’s support of the Care Sector Fundraising Ball was particularly useful in boosting wider awareness of our work and the causes we champion.

As recommended in The Charity Commission’s Guidance for charities with a connection to a non-charity, the Foundation agreed a formal Communications Protocol with CareTech plc to set out clearly how each organisation should refer to the other, as well as the processes to check any references to the other organisation or its work in external publications. This Protocol is designed to ensure that the distinct and independent nature of the CareTech Foundation, as well as its relationship with CareTech plc, is well understood publicly.

Effective engagement of CareTech plc is an important element of the Foundation’s work, both to promote applications for Community Grants and Match-Funding Grants, as well as our wider objective of stimulating charitable endeavour. With CareTech plc’s acquisition of Cambian Group during this reporting year, almost doubling the size of its workforce, the Foundation put in place a structured programme of engagement to build awareness of the Foundation’s work amongst staff in Cambian Group. We have been very pleased with the enthusiasm shown by Cambian Group staff in the work of the Foundation which quickly led to an increase in grant applications as well as offers of in-kind support for our work and that of our partners.

The Foundation also collaborated with CareTech plc to undertake the first baseline of its staff awareness of the Foundation and its work (prior to Cambian’s acquisition). The results revealed that 52% of CareTech plc staff are aware of the CareTech Foundation. Given that the Foundation is still relatively new and that many CareTech plc staff do not have access to online communications channels, these results represent a strong baseline on which to build and vindicates the strategy to date for the communications approach to date.

Values

The trustees and staff team have agreed the set of Values by which we wish our behaviours and actions to be guided; they are:

• INTEGRITY of people and process, ensuring that we always operate at the highest standards of probity and good governance.

• COLLABORATION with partners and stakeholders, proactively reaching out to forge new relationships and building alliances to deliver greater impact.

• EMPOWERMENT of our beneficiaries and people, pushing decision-making down to the lowest levels possible so that people are in greater control of their lives and careers.

• COMMITMENT to outcomes, focusing on delivering meaningful impact in all that we do.

Plans for the future

The trustees have established a Strategic Plan for the Foundation which will deliver the following three over-arching strategic aims:

• AIM 1: The Foundation will be a well-structured, ambitious and clear-sighted organisation, delivering meaningful impact to communities in the UK and overseas

• AIM 2: CareTech plc and its staff and service users will be strongly supportive of the Foundation

• AIM 3: The Foundation will be delivering a unique contribution to the charitable marketplace in the pursuit of its charitable objects.

Over the course of FY2019/120, the Foundation’s Business Plan sets out a comprehensive set of objectives by which to support delivery of these strategic aims. Key priorities include:

• to continue to effectively manage a portfolio of major partnerships, ensuring that they deliver the impact expected and that there is a strong and trusting relationship between the Foundation and its partners;

• to continue to grow the number of applications to the Foundation’s small grants schemes, with a spread across all areas of CareTech plc’s operations;

• to ensure rigorous reporting and effective management of all current Partnerships, with well-evidenced impact evaluation plans and reports using the new Impact Assessment Framework informed by the updated Monitoring & Evaluation Report;

• to undertake the first annual review of the Foundation using the new Impact Assessment Framework;

• to effectively manage the demand for new Partnerships, ensuring that the Foundation has a pipeline of powerful and innovative opportunities;

• to continue to build the Foundation’s profile among its core audiences;

• to ensure that all necessary changes in the light of the Foundation’s incorporation run smoothly;

• to implement the action plan by which to further improve compliance with the Charity Commission’s Guidance for charities associated with non-charities; and,

to implement the action plan by which to further improve compliance with the Charity Governance Code.

Financial review

The charity’s financial position

The Foundation remains well-placed financially to deliver its long-term objectives, thanks to the funding agreed by CareTech Holdings plc as set out in the Donation Agreement between CareTech plc and the Foundation settled in July 2019.

Providing the Foundation with sufficient clarity as to the likely funds at its disposal over at least the medium-term ensures the best possible opportunity for it to deliver impact. The Board of CareTech plc, in establishing the Foundation, fully accepted the importance of settling clearly the funding basis for the Foundation moving forward, enabling it to focus on delivering impact and reinforcing its independence.

CareTech plc complements its financial donations by supplying significant in-kind support, such as office accommodation, back office systems and staff expertise. We have established systems to capture and attribute the full value of CareTech plc’s support to the Foundation, which includes:

• the value of all in-kind support provided (accommodation, back-office support, staff salaries for seconded staff, etc.)

• the value of employee volunteering hours

• any other value added/leveraged support provided by the Foundation

In this current year this in-kind support has been valued at £15,568.63.

The Foundation does not currently seek to raise funds from wider fundraising activities nor does it engage a professional fundraiser or commercial participator for such purposes. The trustees have, however, recognised that, as important as CareTech plc’s commitment to long-term financial support is, the charity should seek over time to diversify its income.

The benefits of diversification of income go far beyond simply achieving an income surplus; diversification also gives organisations the security needed to focus more on long-term strategies and ultimately have more impact for their beneficiaries. The proposed aims of the Foundation’s income diversification strategy, therefore, are:

• to increase the capacity of the Foundation’s grant-making capacity

• to reduce its reliance on a single income stream (however reliable)

• to provide greater certainty on future income levels to encourage longer-term investment

A formal budgeting process, scrutinised by the Trustees’ Audit & Risk Committee and approved by the full board of trustees, in in place. The Foundation uses the xero.com accountancy system, with additional accountancy and payroll support provided by Sue Cater Accountants Ltd, to manage the Foundation’s finances and monitor performance against budget. The trustees have also approved a Financial Handling Manual which sets out all necessary financial systems for the Foundation. Trustees are provided with a monthly financial report as part of the CEO’s regular report and further scrutiny is undertaken by the Audit & Risk Committee as well as the full Board of trustees.

Reserves policy

As a medium-sized charity, the trustees recognise that we need to invest our funds wisely and safely but have also agreed that we wish to back innovative programmes. With innovation comes higher potential impact but also, of course, higher risk. As trustees, we have agreed that we have:

• a reasonably high risk appetite in respect of the projects we support, although will always seek a balanced portfolio of projects of varying risk levels;

• a low risk appetite in respect of the reputation of the organisations with which we partner, preferring to work with credible and respected partners; and,

• a low risk appetite in terms of process, having put in place rigorous due diligence procedures to safeguard the Foundation’s funds and reputation.

In line with the above risk statement, the Foundation maintains free unrestricted reserves:

• to provide a level of working capital that protects the continuity of its core work;

• to provide a level of funding for unexpected opportunities; and,

• to provide cover for risks such as unforeseen expenditure or unanticipated loss of income.

The Foundation confirmed a formal long-term Donation Agreement with CareTech plc to provide the Foundation with the required confidence as to the quantum of donations to ensure that the Foundation could meet its long-term commitments. The trustees budgeting is currently based on conservative estimates and a small in-year reserve, in line with the Reserves Statement above, to allow for any significant unforeseen expenditure.

Amount of reserves held

Trustees budgeted for a surplus of £7000 for the full year ending September 2019 (i.e. spanning the operations of the current company and the previous unincorporated body) to allow for unforeseen expenditure.

Reasons for holding zero reserves

Not applicable

Details of fund materially in deficit

None

Explanation of any uncertainties about the charity continuing as a going concern

Not applicable

Additional information

Following a review of governance by the trustees, and with advice from our legal advisers, trustees agreed that an incorporated structure was more appropriate for the Foundation. As noted elsewhere, these new structures were concluded in March 2019 with the assets of the previous unincorporated body transferring to the new company limited by guarantee and the winding up of the previous body. This report covers the full year of operation ending September 2018 in terms of performance; the accounts however cover the period of the year from April 2019, reflecting the value of the assets transferred from the previous body.

Description of the charity

Type of governing document:     Memorandum & Articles of Association dated 18 March 2019

How the charity is constituted:     Company limited by guarantee, number 11651094

Additional governance issues

In selecting individuals for appointment as trustees, the trustees are required by virtue of the Articles to have regard to the skills, knowledge and experience needed for the effective management of the Foundation. This has been complemented by undertaking a Trustee Skills Audit to inform future recruitment priorities.

Terms of Reference for the Board of Trustees are in place as well as Role Descriptions for the Chair, Treasurer and all trustees. All Trustees have also signed up to the Foundation’s Trustee Code of Conduct.

The Foundation was founded by and is principally funded by CareTech plc. Trustees are made fully aware of the independent nature of their role and a Conflicts of Interest Policy is in place and actively monitored to ensure that any potential conflicts of interest – particularly those concerning the Foundation and CareTech plc – are appropriately managed.

As well as participation in bespoke and paid-for training for trustees, the Foundation is a member of the Association of Charitable Foundations (ACF) and the National Council of Voluntary Organisations (NCVO) to ensure that trustees and staff are up to date on best practice aware of developments and are well networked with other leaders within the sector.

Management of Risks

A Management of Risks Policy is in place and an Audit & Risk Committee provides detailed oversight of the effective management of risk. The principal risks recognised over this period in the Foundation’s Risk Register were:

• the need for an incorporated legal structure for the Foundation, which was closed following the completion of the incorporated structures now in place;

• income diversification, With the result that the trustees have recently agreed an Income Diversification Strategy to be implemented in FY2019/20 and beyond; and,

• poor delivery of grant-funded programmes due to partner issues and/or in-kind support provided by CareTech plc, which is assessed as a moderate level risk and continues to be monitored.

Monthly reports from the CEO to trustees highlight the current top three risks, following internal review. The full Risk Register is reviewed regularly by the Audit & Risk Committee as well as the full Board of trustees.

Annex: The Foundation’s charitable objects

The Objects of the charity are for the public benefit:

1. To promote the education (including social and physical training) of people with special needs and people in need by reason of ill-health, disability, financial hardship or other similar disadvantage anywhere in the world, by awarding to such persons scholarships, maintenance allowances or grants:

a. to underwrite the cost of attending any tenable place of learning;

b. to prepare for entry into any occupation, trade or profession;

c. to assist in developing their mental, physical and moral capabilities including assistance to find employment; or

d. to develop the competencies and life skills of people precluded from obtaining any form of employment by virtue of their impaired mental or physical capacities;

2. To relieve the physical and mental illness of persons anywhere in the world in need, in particular by the provision of counselling and support;

3. To provide support and activities which develop the skills, capacities and capabilities of people of any age anywhere in the world who might otherwise be unable to access such support and activities by reason of ill-health, disability, financial hardship or social barriers such as discrimination with a view to equipping them to participate in society as mature and responsible individuals;

4. To relieve financial need and suffering among victims anywhere in the world of war or natural disaster, trouble, or catastrophe in the form of:

a. money (or other means deemed suitable) for persons, bodies, organisations and/or countries affected; or

b. the supply of medical aid to such persons; to prevent or relieve poverty anywhere in the world by providing or assisting in the provisions of education, training, healthcare projects and the necessary support designed to enable individuals to generate a sustainable income and be self-sufficient; and

5. To advance such other charitable objects or purposes as the trustees may from time to time determine.

Declaration

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees

Signature:                

Full name:        Haroon Rashid Sheikh                

Position:            Chair of Trustees        

Date:            6 February 2020                

Signature:                

Full name:        Christopher Dickinson                

Position:            Treasurer

Date:            6 February 2020        

I report to the trustees on my examination of the financial statements of CareTech Charitable Foundation (the charity) for the period ended 30 September 2019.

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

The statement of financial activities includes all gains and losses recognised in the period.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the period ended 30 September 2019.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

CareTech Charitable Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 7th Floor, Metropolitan House, 3 Darkes Lane, Potters Bar, Hertfordshire, EN6 1AG.

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Expenditure is recognised in the statement of financial activities on an accrual basis as a liability is incurred. Expenditure includes any VAT which can not be fully recovered.

Costs of generating funds comprise the costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Other income represents the transfer at fair value of the assets and liabilities of CareTech Charitable Foundation, registered charity number 1173154, upon its merger with the charity on 3 April 2019 as follows:

Cash at bank and in hand

Debtors

Creditors

Management fees

Bank charges

General expenses

Insurance

Printing and stationery

Website costs

Staff training

Travel

PR costs

Advertising and marketing

Independent examiner fees

Other accountancy services

None of the trustees (or any persons connected with them) received any remuneration during the period, but one of them was reimbursed a total of £59 of travelling expenses.

The average monthly number of employees during the period was:

The income funds of the charity include restricted funds comprising the following donations and grants held on trust for specific purposes:

Gifts in kind

The gifts in kind comprise the rentable value of property and the apportioned salary costs of workers for services provided free of charge.

Staff hardship fund

The Foundation receives a restricted donation from CareTech Holdings plc to enable us to provide small grants to CareTech Holdings plc staff and those who may recently have left the company who find themselves in significant financial hardship or at serious risk of becoming in significant financial hardship.

The remuneration of key management personnel is as follows.