impetus trust final accounts 2011/12

Company no. 04556227

Charity no. 1094681

Impetus Trust

Report and Financial Statements

30 June 2012

Report of the trustees

Contents

Page 1 Reference and administrative details

Page 3 Report of the trustees

Page 3 2011/2012 highlights 1

1.1

1.2 Vision and Mission

Page 7 1.3 Our approach

Page 8 2 Track record

Page 9 3 The Impetus investment portfolio

Page 14 4

4.1 Income

Page 15 4.1.1 Donations from our supporters

Page 16 4.2 Value delivered to portfolio charities

Page 17 4.3 Resources expended to achieve our impact

Page 19 4.4 Evaluation of Impact

0 4.5 Funding requirements

4.6 Reserves

4.7 Investment of funds

Page 21 5 Structure, Governance and Management

5.1 Structure

5.2 Governance and management

Page 23 5.3 Related parties and connected organisations

5.4 Risk and internal control

6 Plans for 2012/13

7 Statement of Trustees' Responsibilities

Page 24 8

9

Page 25 10

Page 26

Page 28

Page 29 Balance sheet

Page 30 Notes to the financial statements

Background and approach

Financial Review

The Trustees

Our Thanks

Statement of financial activities

Auditors

Independent auditors' report

Impetus Trust

For the year ended 30 June 2012

Objectives and Activities

Reference and administrative details

Status

Company number 04556227

Charity number 1094681

operational address London

WC1H 9PN

Trustees

Marc Boughton (appointed 9 October 2012)

Stephen Dawson

Craig Dearden-Phillips

Amelia Fitzalan Howard

Stephen Lambert (resigned 7 December 2011)

Principal staff Daniela Barone Soares (Chief Executive)

Principal bankers CAF BANK Ltd

PO Box 289

West Malling

Kent

ME19 4TA

Principal solicitors Macfarlanes

20 Cursitor Street

London

EC4A 1LT

Auditors Sayer Vincent

Chartered accountants and statutory auditors

8 Angel Gate

City Road

London

EC1V 2SJ

Louis Elson (Chair)

Nat Sloane (Vice-Chair)

Andrew Hinton

Chris Underhill

Ian Meakins

Impetus Trust


Registered office/

The organisation is a charitable company limited by guarantee,

incorporated on 8 October 2002 and registered as a charity on 19

November 2002.

Governing document The company was established under a memorandum of association

which established the objects and powers of the charitable company

and is governed under its articles of association.

20 Flaxman Terrace

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Impetus Trust


complying with the Commission’s general guidance on public benefit;

describing its significant activities undertaken to further its charitable purposes for the public

benefit.

The reporting narrative demonstrates that the charity is established for purposes which are for the

public benefit and explains how the trustees have operated the charity in furtherance of these

purposes. This report highlights that the charity carries out its aims by providing strategic funding and

expertise to enable ambitious charities and social enterprises to turn around more lives. In particular,

the report provides a summary of the charity’s objectives, an appraisal of the investment activity

including the impact on portfolio charities and an evaluation of its policy.

This trustees’ annual report is for a venture philanthropy organisation set up to work with ambitious

charities and social enterprises to tackle economic disadvantage. It meets the public benefit reporting

requirements by:

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Impetus Trust

Report of the trustees


The trustees present their report and the audited financial statements for the year ended 30 June

2012.

Highlights of the year

We are proud that during this past year we have been able to achieve even more to help the people

who need it the most. In doing so, we are actively seeking to break the cycle of poverty through our

key Initiatives: The Youth and Social Opportunity Initiative, The Early Years Initiative, The Impetus for

Reducing Reoffending Initiative, and The Education Endowment Foundation (“EEF”), which we jointly

manage with The Sutton Trust. The charities in our portfolio have delivered a compound annual

growth rate in the number of people helped of 39% and a compound annual revenue growth rate of

19%.

Here are some of the highlights:

1. Since inception, Impetus has raised a total of £28.9m in the form of cash, pro bono expertise,

partnership investment and additional funds raised for the portfolio. This year the value

delivered by Impetus to our portfolio charities exceeded £5 million.

2. A key element of the Impetus model is our ability to leverage our direct grants with additional

funding from partnership investors and expert pro bono support for our portfolio charities. For

every £1 of direct cash funding to our portfolio charities, Impetus has delivered an additional

£3.63 of value.

3. Our model remains very efficient as for every £1 expended by Impetus, whether in monetary

terms or pro bono services, we deliver 88p of value directly to our portfolio charities. Of the

12p remaining, 9p is spent on generating funds. This money spent on the cost of generating

funds helps us to raise more than six times as much in further funding to support our portfolio.

4. Our first public funding was received in the form of a grant from the Social Action Fund, which

is managed by The Social Investment Business on behalf of the Cabinet Office. This funding

will be used to recruit, match and deploy skilled professionals into charities that need their

help.

5. The Education Endowment Foundation, a £135m organisation overseen by Impetus and The

Sutton Trust and funded by the Department for Education to boost attainment of some of the

country’s most disadvantaged children, now has a high calibre team in place, with our CEO,

Chair and Vice-Chair sitting on the Board, plus money and expertise provided by Impetus and

The Sutton Trust. EEF has provided £12m in 21 investments to date. They are working in 940

schools and with over 245,000 children.

6. Impetus contributed to various government consultations, ensuring that our experience of

successful initiatives was shared across Whitehall, and is shaping policy. In particular, we

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informed the Cabinet Office’s work on Giving. We have also opened up our work to the Social

Justice team within the Department for Work & Pensions. Furthermore, our Advisory Council

presented to the Secretary of State on what the private sector could do to improve social

mobility in the UK, and on where the voluntary sector could provide innovative and high-

quality services.

7. Our Chief Executive, Daniela Barone Soares, joined the Advisory Board of Big Society

Capital, became a Non-Executive Director at Halma Plc, participated on a panel at the Times

CEOs Summit with 100 top business leaders across all sectors in the UK and also was a

judge in the Ben & Jerry's "Join the Core" initiative to find 25 of the most exciting new social

enterprises in Europe. She was also nominated in the Real Business First Women Awards

where she was shortlisted in the Public service category.

8. Impetus won the Institute for Turnaround’s prestigious Europe's Top Turnaround Award 2011

in the "Third and Public Sector" category, for our venture philanthropy work helping charities

and social enterprises to transform their organisations. We also won the runner-up prize for

the Institute of Chartered Accountants of England & Wales (“ICAEW”) Charity Online

Financial Reporting Awards.

9. Our partnership with PricewaterhouseCoopers LLP (“PWC”) was honoured when the PwC

Impetus team won the prestigious Chairman’s Award at the PwC Experience Awards, the top

award of the event, to celebrate the people and team who are doing things differently to bring

PwC’s brand promise to life.

10. We have also actively shared our knowledge with delegations from other countries, including

Vietnam, China and Japan, as well as other venture philanthropy organisations, notably, New

Profit Inc, LIFT Partners and Social Ventures Australia.

11. Achievements from our portfolio charities include:

- Rachel Carr, Chief Executive of Impetus portfolio charity IntoUniversity, received an OBE in

the New Year Honours List;

- Prominent individuals have become better acquainted with our charities and social

enterprises. The Archbishop of Canterbury visited National Prison Radio at HMP Brixton,

which he called “a wonderful idea”; Iain Duncan Smith visited Family Links; David Cameron,

along with Arsenal captain Robin van Persie, welcomed Street League staff and players to

Number 10 Downing Street and Prince William has chosen to become a Patron of St Giles

Trust;

- Prison Radio Association won gold and bronze awards respectively in the Sony radio

academy awards, for their powerful Restorative Justice programme and in the Best

Community Programming category;

- Camfed was featured in an article by award-winning author David Bornstein. As Bornstein

says, “Many believe that the most powerful way to bring lasting social change to a country is

to educate its girls”;

- Blue Sky launched its Friends Network at Speaker’s House. The evening was chaired by

Jonathan Aitken and featured speakers including Prisons Minister Crispin Blunt; Rt. Hon.

John Bercow, MP, Speaker of the House of Commons; Fiona MacTaggart, MP; as well as two

Blue Sky employees who reflected on how the charity has changed their lives for the better;

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- The Prime Minister hosted a reception for Blue Sky and its partners in January 2012 in

recognition of a successful year of Blue Sky being one of Number 10’s first Social Action

Partners;

- One of our alumni charities, beat, has been awarded £250,000 by Dove, to deliver self-

esteem workshops to 11-14 year olds. beat is also being featured in Dove's primetime

advertising;

- Shannon Trust, our charity which helps prisoners who struggle to read, was the focus of

Women’s Hour, on 4 May 2012;

- Students from IntoUniversity’s Haringey Centre had a private meeting at the Houses of

Parliament with David Lammy MP, former shadow Minister for Higher Education;

- The work of COUI - Teens & Toddlers was featured by the BBC, focusing on “How toddlers

teach troubled teens not to get pregnant”.

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Reference and administrative information set out on pages 1 and 2 forms part of this report. The

financial statements comply with current statutory requirements, the Memorandum and Articles of

Association and the Statement of Recommended Practice - Accounting and Reporting by Charities

(SORP 2005).

1. Objectives and Activities

1.1 Background

Impetus Trust was established in 2002, became operational in August 2003 and pioneered

venture philanthropy in the UK.

1.2 Vision and Mission

Impetus Trust’s vision is of a world in which people are not trapped in economic disadvantage, but

where they can get the help they need and want to lead independent and fulfilling lives. We believe

we can make a special contribution by boosting the impact of distinctive charities and social

enterprises, so they can help many more people gain education, jobs and skills. We are enabling

them to create transformational change and to become robust and sustainable.

The Board has agreed a broad set of strategic objectives:

1. Support from donors – raise funds to support a growing portfolio of charities and to safeguard

the long-term income sustainability for Impetus;

2. Work with partners to continue to secure and manage a steady stream of high-quality pro

bono experts;

3. Scale up our investment in new charities – including attracting partnership investment - and

demonstrate positive outcomes from those in the portfolio;

Venture philanthropy is an active approach to philanthropy, which involves giving skills

as well as money. It uses the principles of venture capital, with the investee organisation

receiving management support, specialist expertise and financial resources. The aim is

for a social, rather than financial, return.

Impetus carefully selects ambitious charities and social enterprises and works with them

to transform their impact. Impetus scales up winning social models that are effective in

breaking the cycle of poverty. The aim is for these organisations to be able to help many

more people gain education, skills and jobs.

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4. Link up – extend the reach of the organisation beyond itself through strategic partnerships

and collaboration;

5. Speak up – ensure that relevant policy makers, authorities and opinion formers are aware of

the effective social solutions being piloted by our charities and social enterprises, in order to

drive much needed change;

6. Commitment to evaluation, communication and excellence – keep our approach under review

and share learning, promote our venture philanthropy model and implement best practice in

charity leadership and management within Impetus.

1.3 Our approach

Our venture philanthropy model has three key components:

1. Strategic funding

We give long-term infrastructure funding to our charities and social enterprises so they can build their

capacity. This funding is linked to the organisation meeting pre-agreed milestones, which are tracked

on a quarterly basis.

In addition, an important part of the Impetus model is leveraging our funding with additional funding

from partnership investors.

2. Hands-on management support

A crucial component of our investment model is the hands-on management support given to the chief

executive and senior management of the charity by an experienced, in-house Impetus Investment

Executive. Our Investment team members have substantial consulting, financial and voluntary-sector

expertise, and the investment executive's support spans the entire investment period.

3. Specialist expertise

We have a pool of highly skilled experts, who offer their skills to our charities and social enterprises

on a pro bono basis. This expertise is deployed for specific, mutually agreed projects, with an agreed

brief and timetable before a project starts.

Impetus typically works with a portfolio charity or social enterprise for between four and six years. This is divided into three phases:

Planning phase - The main objective of this phase is to develop a growth plan. This phase may also involve refining the delivery model further and strengthening the organisation's capacity.

Scale-up phase - In this phase we support the organisation to implement the growth plan. Clear objectives are agreed, including targets for increasing income and the number of people helped. In addition, key performance indicators are agreed.

Transform phase - this year we have introduced this follow-on investment phase. This is aimed

primarily at investees already within the portfolio that show further potential for transformational scale

up and/or have the potential for social investment and major contracting work. The precise nature of

the investment, including the term and amount invested, will be reviewed on a case-by-case basis by

the Investment Committee.

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The Impetus investment process comprises three steps, with Investment Committee approval

required to move forward:

1. Screening: reviewing paper applications, meeting the chief executive/chair and visiting the

charity;

2. Assessment: for those charities considered strong prospects, a detailed due diligence

assessment covering all aspects of the charity’s operations;

3. Investment: the integrated aforementioned venture philanthropy package.

The venture philanthropy approach has parallels with the venture capital industry where partnership

and long-term collaboration help build the capacity of the organisations supported. We have led the

way in the development of venture philanthropy in the UK, winning recognition nationally and

internationally for this pioneering and innovative approach. We hope this will ultimately expand the

funding and people resources available to charities delivering innovation and excellence.

2. Track record

The success of the Impetus model in generating added value to our investments can be illustrated by

the metrics set out in the tables below and over the page. This shows the incoming resources

generated by Impetus since 2002 and includes: donations from individuals, grantmaking trusts,

statutory funders and corporate donors; donations from partnership investors who provide funds to

charities alongside Impetus; the value of pro bono services donated; and the additional funds raised

for our portfolio as a consequence of Impetus involvement.

In accordance with the requirements of "Accounting and Reporting by Charities: Statement of

Recommended Practice ("Charities SORP")”, donated services recognised in the financial statements

(“Statutory basis” in the table below) only include those services provided by an individual as part of

their trade or profession. This does not recognise the full value of pro bono services donated to both

Impetus and our portfolio charities. Hence, the “Full value” is also given in the tables.

Since inception to 30 June 2012, Impetus has generated the following incoming resources:

Incoming resources

Full value

Statutory basis

£m £m

Donations and investment income 13.1 13.1 Pro bono services donated* 12.9 9.9

26.0 23.0

Partnership investment** 1.8 - Additional funds raised for charities*** 1.1 -

28.9 23.0

*The full value of the pro bono services donated differs from the statutory basis as on a statutory basis we are only able to

include those values which relate to projects where the pro bono expert was undertaking a project in their area of expertise and

could reasonably have charged for this work.

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* *Partnership investment is not included in the accounts of Impetus because it is contractually agreed by the funder to be paid

directly to the charity.

** *Additional funds raised for charities are donations made directly to the portfolio charities where Impetus was instrumental in

obtaining those funds. These amounts are not included in Impetus Trust’s own financial statements because they are provided

directly to the charity by the funder.

Through deploying high-calibre, pro bono experts in the portfolio charities and through partnership

investment, we aim to more than double the value of our investment. To date, Impetus has

contributed the following value to charities:

Cumulative value generated for portfolio

charities

Full value

Statutory basis

£m £m Pro bono services donated to charities* 9.6 8.3 Value of Impetus Investment team 3.4 3.4 Partnership investment** 1.8 - Additional funds raised for charities*** 1.1 -

15.9 11.7 Grants paid to charities 4.4 4.4

20.3 16.0

Value generated for every £1 cash invested £3.63 £2.72

*The full value of the pro bono services donated differs from the statutory basis as on a statutory basis we are only able to

include those values which relate to projects where the pro bono expert was undertaking a project in their area of expertise and

could reasonably have charged for this work.

* *Partnership investment is not included in the accounts of Impetus because it is contractually agreed by the funder to be paid

directly to the charity.

** *Additional funds raised for charities are donations made directly to the portfolio charities where Impetus was instrumental in

obtaining those funds. These amounts are not included in Impetus Trust’s own financial statements because they are provided

directly to the charity by the funder.

In addition to looking at the overall value generated by Impetus for the benefit of our charities, we also

place great importance on the value of each £1 of unrestricted donations. These donations are vitally

important to our work as they allow us to employ the Impetus Investment team to assist our portfolio

charities in their work, manage an impressive pro bono network, obtain partnership investment and

additional funds for our portfolio and provide the resources to enable us to scale up our operations.

3. The Impetus investment portfolio

Impetus’ aim of breaking the cycle of poverty is reflected in the graphics overleaf which illustrate why

we exist and the opportunities for intervention the Impetus portfolio has for those people from an

economically disadvantaged background.

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www.impetus.org.uk2

www.impetus.org.uk

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Impetus has invested in 25 charities and social enterprises. We are actively working with 17 of these

organisations and 8 have "graduated" from our portfolio after the pre-defined investment period.

Impetus seeks to break the cycle of poverty using the venture philanthropy model. Within this model

we have four primary specialist initiatives which allow us to focus our work: Youth and Social

Opportunity*, Reducing Reoffending and Early Years Initiative. We are also co-managers of The

Education Endowment Foundation with The Sutton Trust.

a. Youth and Social Opportunity Initiative*

This initiative draws together our efforts to ensure that no young person falls through the net as they

are growing up. For children and young people growing up in disadvantage, there are key moments

which can determine their future life course. Our Youth and Social Opportunity portfolio organisations

reach out to young people at these points, and engage them in activities and learning which create

new futures and possibilities, and give thousands of people the ability to find their right path, and stay

on it.

b. Reducing Reoffending Initiative

This initiative was created to support organisations making a significant impact in reducing

reoffending rates. Impetus is committed to finding innovative solutions to the most pressing - and

often most challenging - issues of our time. Reoffending is one such challenge. The UK government

spends over £11bn annually on prisons, prisoners, offender management and reoffending costs.

Despite this, over 60% of adult prisoners are reconvicted within two years of their release.

c. Early Years Initiative

The Early Years Initiative was launched to invest in successful early years interventions specifically

working with disadvantaged parents and their children aged 0 to 5, with the goal of closing the gap in

school readiness for those children. It is looking to work with ambitious organisations that wish to

significantly enhance and improve their current impact. We partner with The Sutton Trust in this

initiative.

d. Education Endowment Foundation

Impetus and education charity The Sutton Trust were chosen last year to oversee the £140 million

Education Endowment Foundation (‘EEF’), established by the Secretary of State for Education, to

boost the attainment of some of the country's most disadvantaged children. The grant was awarded

through an open application process involving 14 other bidders. Subsequently the EEF was awarded

an additional £15m for interventions supporting children through transition from primary into

secondary schools. Please refer to www.educationendowmentfoundation.org.uk for more information

about the work of EEF.

The Education Endowment Foundation will be used to initiate grants and seek innovative and bold

proposals from schools, teachers, local authorities and charities to improve the performance of

disadvantaged pupils in England's lowest performing schools.

* Previously referred to as the ‘General Portfolio’.

http://www.impetus.org.uk/what's-special-about-impetus/we-focus-on-poverty/impetus-for-reducing-reoffending-initiative/

http://www.impetus.org.uk/what's-special-about-impetus/we-focus-on-poverty/impetus-sutton-early-years-initiative/

http://www.educationendowmentfoundation.org.uk/

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Impetus’ portfolio is as follows:

Organisation

Cumulative Impetus package to date

Grant funding (1) Pro bono services donated

Investment management

value (2)

Total audited funding package received to date

Impetus Social Opportunity Initiative

Scale-up phase investments

Camfed International £545,000 £272,941 £233,807 £1,051,748

COUI – Teens & Toddlers £835,306 £479,715 £191,013 £1,506,034

Fairtrade Foundation £500,000 £1,035,071 £214,695 £1,749,766

IntoUniversity £613,169 £432,328 £214,695 £1,260,192

Resurgo Trust £125,000 £268,698 £133,031 £526,729

Street League £722,800 £810,401 £191,013 £1,724,214

New transform phase investment - contractual agreement awaiting finalisation

£1,000,000 n/a n/a -

Post-investment period

Graduated investments £2,823,407 £3,044,731 £1,030,827 £6,898,965

Total Impetus funding for charities from the Impetus Social Opportunity Initiative

£6,164,682 £6,343,885 £2,209,081 £14,717,648

Education Endowment Foundation

Education Endowment Foundation £127,000 £184,232 £87,681 £398,913

Total Impetus funding for the Education Endowment Foundation

£127,000 £184,232 £87,681 £398,913

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Organisation

Cumulative Impetus package to date

Grant funding (1) Pro bono services donated

Investment management

value (2)

Total audited funding package received to date

Impetus for Reducing Reoffending Initiative

Planning phase investments

Blue Sky Development & Regeneration

£462,500 £170,611 £191,013 £824,124

Kainos Community £50,000 £33,181 £133,031 £216,212

Prison Radio Association £160,000 £236,337 £133,031 £529,368

Prisoners’ Education Trust £55,091 £197,681 £133,031 £385,803

Shannon Trust £100,000 £450,054 £133,031 £683,085

Working Chance £26,356 £59,883 £49,141 £135,380

Total Impetus funding for Impetus for Reducing Reoffending Initiative

£853,947 £1,147,747 £772,278 £2,773,972

Impetus Early Years Initiative

Planning phase investments

Family Links £50,088 £239,260 £87,681 £377,029

I CAN £54,594 £170,465 £87,681 £312,740

Ripplez £100,000 £122,371 £87,681 £310,052

New investment - contractual agreement awaiting finalisation

£100,000 £56,058 £49,141 £105,199

Total Impetus funding for Impetus Early Years Initiative

£204,682 £588,154 £312,184 £1,105,020

PRO BONO TOTAL FOR DUE DILIGENCE/CHARITY SUPPORT

- £1,356,275 - £1,356,275

TOTAL INVESTMENT ACROSS ALL FUNDS TO DATE (EXCLUDING AMOUNTS APPROVED NOT YET PAID)

£7,350,311 £9,620,293 £3,381,224 £20,351,828

(1) This includes grants from Impetus, partnership investment and additional funds raised.

(2) This is the value of time spent by the Impetus investment team in providing hands on management support.

(3) Our graduated investees are: Voice Ability (formerly Speaking Up), St Giles Trust, Acumen Development Trust, Leap

Confronting Conflict, beat, Naz Project London, Keyfund Federation and Furniture Resource Centre.

(4) This reflects direct funding from Impetus only. EEF has had £140m of funding to date.

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*We are grateful to Deutsche Bank (and also to Man Group on Street League) for its/their partnership investment to Blue Sky

Development & Regeneration, COUI – Teens & Toddlers and Street League over the past three years.

This table does not include anticipated future commitments to any of our portfolio charities.

During the year we have screened 247 charities. Of these, 151 applied to us and a further 96 were

referred to us. Therefore applications have increased this year, from 106 in 2010/11 to 151 in

2011/12. These applications span all of our funds and reflect the desire to expand all of our initiatives.

Read more about our investments and specialist Initiatives on www.impetus.org.uk/investments.

4. Financial Review

4.1 Income

Impetus generated total income during the year of £5.9m (2010/11: £4.9m). This reflects another very

successful year, exceeding our targets and including another leap in income. Income was derived

principally from donations from corporations, grantmaking trusts and individuals, as well as donated

pro bono services and facilities. This does not include the partnership investment and additional funds

raised for our portfolio as these amounts are paid directly to the charities by the funders.

Grants from Foundations and

Statutory

Funding £1.4m (24%)

Donated services and

facilities £2.8m

(47%)

Cash donations from individuals and companies

£1.7m (28%)

Bank interest £0.04m (1%)

Analysis of income

http://www.impetus.org.uk/investments

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The value our pro bono experts contributed over the past year was £2.9m (2010/11: £2.8m). Of this

total, £2.8m (2010/11: £2.7m) represents services provided by individuals as part of their trade or

profession and is reflected in the accounts both in income and expenditure (mainly supporting

charities) as donated services. The remaining £87k (2010/11: £122k) is excluded from the accounts,

in line with the requirements of the SORP, but is nevertheless of great value.

4.1.1 Donations from our supporters

During the year we received generous financial and pro bono support (donated services) from four

main sources:

Individual donations

Corporate sponsors

Grantmaking Trusts and foundations

Public funding

Our staff love the fact that the charities progress. Returning to work

with a charity several years after you first meet and seeing that the

work you did set them on a successful path is just phenomenal.

David Krucik

Senior Partner, OC&C Strategy Consultants, Impetus pro bono

corporate supporter

Impetus has the ambition, focus and very particular experience to

make a huge difference to the charities it works with. I am totally

confident that my investment in Impetus will be put to really good use.

Hugh Lenon

Managing Partner of Phoenix Equity Partners and Impetus donor

The country faces a number of stubborn social problems that are

enormously expensive in both financial and human terms. I am a big

fan of Impetus Trust and believe that they, and organisations like them,

now have an increasingly important role to play.

Nick Hurd MP

Minister for Civil Society

Impetus’s combination of funding and targeted expertise, as well as

their commitment to measuring outcomes, generates superior results. I

have been a long-time supporter of Impetus and know that the

investment I am making through them is money very well spent.

Peter Englander, Trustee of the Tuixen Foundation and Ex-Partner and

Non-Executive Director of Apax Partners

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We could not possibly achieve all that we do without the steadfast support of our many supporters.

These are people and organisations who share with us the optimism that the cycle of poverty can be

broken, and the passionate belief that we must do all that we can to turn around more lives.

Read more about our supporters on www.impetus.org.uk/about.

4.2 Value delivered to portfolio charities

The chart below illustrates the value Impetus provides to portfolio charities, both in percentage terms

and value. In 2011/12, Impetus delivered £5.1m (2010/11: £4.5m) of value to its portfolio charities.

Pro bono support to

charities £2.7m

(52%) Grants to charities £1.1m

(22%)

Impetus Investment

Team support to

charities £0.8m (17%)

Partnership investment £0.1m (2%)

Additional funds raised for

charities £0.4m

(7%)

Value delivered to charities

Of the total value of £5.1m (2010/11: £4.5m) in the pie chart above, grants to charities of £1.1m

(2010/11: £855k), pro bono services donated of £2.7m (2010/11: £2.4m) and the value of Impetus

Investment Team of £835k (2010/11: £655k), totalling £4.6m (2010/11: £3.9m) are reflected in

Impetus Trust’s own financial statements as "Resources expended - Cost of Supporting Charities" –

see note 3.

Partnership investment (where an investor provides funds directly to the charity alongside Impetus) is

an important part of our overall funding strategy. Some donors are specifically interested in certain

http://www.impetus.org.uk/about

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charitable causes, and for them, partnership investment provides a way to focus on these causes

while still retaining the benefits of working with Impetus.

Read about our partnership investors on www.impetus.org.uk/partnershipinvestors

Additional funds raised for our portfolio charities also represent an integral part of the value Impetus

delivers to charities and reflect donations made directly to the portfolio charities where Impetus was

instrumental in obtaining those funds, through valuable introductions to suitable funders.

4.3 Resources expended to achieve our impact

To achieve the desired impact within our portfolio of charities, resources are expended in generating

funds, governance and supporting charities. The pie chart below illustrates how our total resources

(including the value of pro bono services donated) of £5.2m (2010/11: £4.4m), as set out in note 3 to

these financial statements, were expended during 2011/12.

Cost of generating funds

£0.5m(9%)

Supporting charities £4.6m

(88%)

Governance £0.1m (3%)

Total resources expended

Impetus Trust’s cost structure has been benchmarked against, and compares favourably with, other

leading international venture philanthropy funds. The ratio of value provided to charities to overheads

is set out on page [16].

http://www.impetus.org.uk/partnershipinvestors

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Including pro bono services

Supporting charities 88%

Cost of generating funds 9%

Governance costs 3%

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4.4 Evaluation of Impact

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Read more about our commitment to rigorous impact measurement on

www.impetus.org.uk/impactmeasurement

4.5 Funding requirements

We have now completed the second year of our three-year business plan in which we aimed to have

an active portfolio of 22 charities and raise £7.8m in funding by June 2013. As at 30 June 2012, we

have exceeded the annual income target in the business plan. In addition, we are on track to exceed

the number of active organisations in the portfolio and despite the tougher environment for charities,

our investees are achieving their operational, financial and social targets. We are now undertaking a

five-year strategic review which will assess the income and investment potential of Impetus beyond

our current business plan. Having exceeded our business plan targets to date, we have produced a

continuity case which shows our existing commitments from donors and to our portfolio through to

2017. This illustrates the need to raise £15.5m in the next five years to allow us to continue our

current growth path and as illustrated in the chart over the page:

Sources and uses of funding for the 5 years to 30 June 2017

Expenditure to 30 June 2017 of

£25.2m

Value to charities of £22.0m (Grants and

Investment Team support)

Core costs £3.2m

Donor commitments to 2017 of £3.5m

Free reserves of £3.1m

Sources of funding to

30 June 2017 of £25.2m

Funding requirement to 2017 of £18.6m

4.6 Reserves

Impetus has healthy reserves and a strong cash position at the balance sheet date. However, given

the longer-term nature of our investments, a substantial proportion of our funds are "reserved" to fulfil

existing funding commitments to charities. Further commitments to all our portfolio charities will be

drawn down over the next few years.

As Impetus has a five-year lease commitment with no break clause, our trustees have recommended

that a minimum reserve level of £650k be maintained. This is broadly equivalent to three months’

operating costs for Impetus plus half of the outstanding lease commitment.

4.7 Investment of funds

The charity does not operate an endowment fund. Given the need to be able to honour long-term

commitments to the charities it invests in, the Board has adopted a cautious investment strategy, with

funds received by Impetus invested in deposit accounts or bonds.

Impetus has continued to hold significant amounts in fixed-term bonds that matured during the year

and were re-invested. These appear as short-term deposits on the balance sheet.

http://www.impetus.org.uk/impactmeasurement

21

5 Structure, Governance and Management

5.1 Structure

Impetus Trust is a registered charity and a company limited by guarantee. The governing document is

a Memorandum and Articles of Association incorporated 8 October 2002, and amended 4 December

2003, 15 February 2010 and 30 May 2012. The objects of Impetus Trust as stated in the

Memorandum and Articles of Association are:

“the advancement of such exclusively charitable purposes as the trustees shall determine and in

particular to advance the efficient and effective administration of charities by the provision of:

a) financial grants, loans and guarantees; and

b) advice and services of people who have experience and skills appropriate to meet the

requirements of charities which are in need of development or extension.”

In setting our objectives and planning our activities, our trustees have given careful consideration to

the Charity Commission’s general guidance on public benefit.

5.2 Governance and management

The governing body of the charity is the Board of Trustees which, as of 30 June 2012, comprised

eight members. The annual Board away day took place in March 2012 and was focused on looking at

Impetus’ unique insights to develop our future strategy, from which we will build a business plan for

the next five years.

The appointment of a new trustee to the Impetus Board of Trustees takes place after due

consideration from both parties, the prospective trustee generally having been invited to participate in

a Board meeting prior to appointment. This is vital to ensuring a good “strategic fit” for the Board and

the prospective trustee. Having accepted the appointment, new trustees are taken to meet a number

of the Impetus portfolio charities, to gain a good understanding of our work. New trustees are also

briefed on their legal obligations under charity and company law, the content of the Memorandum and

Articles of Association, the committee and decision-making processes, the business plan and recent

financial performance of the charity. During their induction they will meet key members of the Impetus

team and any other trustees whom they had not previously met. Trustees are eligible to attend

appropriate external training events where these will facilitate the undertaking of their role, and a

small budget is set aside to fund this. During the year a more formal induction procedure has been

implemented to ensure that new trustees receive all necessary information and training.

Trustees are typically elected for three-year periods and may be re-elected for a further three-year

period. Annually, the Chair conducts an appraisal of the Board’s performance and composition and

the functioning of its committees, and a designated trustee conducts a review of the Chair’s role and

performance.

The Board sets strategy and reviews policy. Day-to-day responsibility is delegated to the Chief

Executive, who works closely with the Chair and Vice-Chair.

There are four sub-committees to the Impetus Board: the Investment Committee; the Governance and

Remuneration Committee; the Finance and Audit Committee and the Policy and Public Affairs

Committee. The purpose of these sub-committees is to ensure in-depth review and oversight of

critical parts of our activities. Collectively, these committees seek to ensure that the specific areas of

focus are led, where possible, by trustees. We also have an Advisory Council which is composed of

leaders from the private and voluntary sectors. The expertise of our Advisory Council will play a

22

crucial role in helping us achieve our vision and we are very fortunate to have secured the support of

such a preeminent group.

Read more about the structure and members of all of these committees at

www.impetus.org.uk/about/trustees/impetus-committees.

Investment Committee

The committee is responsible for ensuring a balanced portfolio and recommends the direction of the

portfolio in terms of its mix, growth and overall strategy. In determining new inclusions to our portfolio,

the committee scrutinises and recommends which charities should be taken through to due diligence;

ensures that the due diligence process provides the appropriate level of appraisal to safeguard

investment; and makes recommendations on charity investments to achieve a balanced portfolio.

Beyond the initial investment, the committee also reviews the funding and milestones of the portfolio

and conducts status reviews of the portfolio as well as scrutinising and recommending reinvestments

and graduations from the portfolio.

Governance and Remuneration Committee

The committee has a strategic role in defining the role of the Board as well as how the Board interacts

with the various sub-committees. Alongside this, the committee directs the trustee recruitment

process and trustee responsibilities and defines the link between the Advisory Council and the Board.

In its fiduciary capacity, the committee is responsible for conducting the Chair evaluation annually as

well as advising on trustee/Board development and an evaluation of the other sub-committees.

Finally, staff remuneration and benefits policies are overseen by the committee.

Finance and Audit Committee

The committee scrutinises and approves the draft annual budget, and reserves and investment

policies to put before the Board. The committee monitors the integrity of the charity’s financial

statements and the effectiveness of the external audit process and systems of internal control. It is

also responsible for ensuring that an appropriate relationship between Impetus and the external

auditors is maintained, including reviewing non-audit services and fees.

Policy and Public Affairs Committee

The committee drives Impetus Trust’s ability to influence policy, practice, and drive systemic change

by deciding upon priorities, strategies and partners for advocacy work. This advocacy work will always

arise from those areas where we have hands-on experience, and the ability to provide unique

expertise. These areas include the potential of venture philanthropy, capacity within the voluntary

sector, and issues arising from our specific investment funds, including reoffending and early years.

Advisory Council

The Advisory Council was created in order to engage a broad range of individuals, from backgrounds

such as private equity, charity, finance, entrepreneurs and the media, to offer support to Impetus by

advising the Chief Executive and the Senior Management Team on strategic issues. The Advisory

Council meets twice per year to debate issues of strategic importance to society, consider how

financial and political trends may affect the Impetus portfolio and explore options for maximising the

impact of Impetus Trust.

Read more about the members of our Advisory Council on

www.impetus.org.uk/about/advisorycouncil.

http://www.impetus.org.uk/about/advisorycouncil

23

5.3 Related parties and connected organisations

Our Vice-Chair sits as the Chair of the CVC Foundation, one of our major corporate funders, and is

excluded from discussions concerning Impetus. He is also the England Committee Chair of the Big

Lottery Fund, which does not conflict with this trustee’s work with Impetus. If these organisations were

asked to provide funding to Impetus, he would not be involved in the decision-making exercise.

Finally, our Chair, Vice-Chair and CEO sit on the Education Endowment Foundation Board although

as a separate organisation the potential for conflict with their work with Impetus is limited.

5.4 Risk and internal control

The trustees are responsible for ensuring that the charity has an appropriate system of controls,

financial and otherwise. They are also responsible for safeguarding the assets of the charity and

hence for taking reasonable steps for the prevention of fraud and other irregularities.

The Board last formally reviewed the risk profile and action plan in December 2011 and satisfied itself

that the major risks to which Impetus is exposed have been discussed and that systems have been

established to mitigate those risks. These will be reviewed again during the coming financial year.

6 Plans for 2012/13

In the coming year we will seek a broad spread of investments, continuing development of our

Reducing Reoffending and Early Years Initiatives but at the same time looking at promising

opportunity across our wider programme of Youth and Social Opportunity.

Read more about the Impetus portfolio and selection criteria for applying to join our portfolio at

www.impetus.org.uk/charities-we-work-with.

In order to fulfil our ambition of a world in which people are not trapped in poverty, but where they can

get the help they need and want to lead independent and fulfilling lives through the implementation of

our four initiatives, there is an ongoing need to raise funds to allow us to invest in more dynamic

organisations. We believe Impetus can make a special, high-impact contribution by accelerating the

growth of distinctive charities and social enterprises, so they can help many more people gain

education, jobs and skills. We are extremely grateful to the individuals, companies and grant making

trusts and foundations that continue to support us and have pledged to do so in our new financial

year. This continued support is vital in helping us to grow year on year as we welcome new donors

into our charity.

7 Statement of Responsibilities of the trustees

The trustees are required to prepare financial statements for each financial year, which give a true

and fair view of the state of affairs of the charitable company and of its incoming resources and

application of resources, including the net income or expenditure, for the period. In preparing those

financial statements the trustees 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 and statements of recommended practice

have been followed, subject to any material departures disclosed and explained in the

financial statements; and

24

prepare the financial statements on the going concern basis unless it is inappropriate to

presume that the charity will continue in operation.

The trustees are responsible for keeping accurate accounting records that disclose with reasonable

accuracy at any time the financial position of the charity and that enable them to ensure that the

financial statements comply with the Companies Act 2006. The trustees are also responsible for

safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and

detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial

information included on the Impetus Trust website. Legislation in the United Kingdom governing the

preparation and dissemination of the financial statements may differ from legislation in other

jurisdictions.

Each of the trustees confirms that to the best of his/her knowledge there is no information relevant to

the audit of which the auditors are unaware. The trustees also confirm that they have taken all

necessary steps to ensure that they themselves are aware of all relevant audit information and that

this information has been communicated to the auditors.

8 Our Thanks

We would like to take this opportunity to express our warm thanks to the staff and trustees of our

portfolio charities, and to the donors, volunteers, pro bono experts and staff who have helped Impetus

to achieve the progress it has made so far.

9 The Trustees

The trustees, who are also members under company law, who served during the period and up to the

date of this report, were as follows:

Louis Elson (Chair)

Nat Sloane (Vice-Chair)

Marc Boughton (appointed 9 October 2012)

Stephen Dawson

Craig Dearden-Phillips

Amelia Fitzalan Howard

Andrew Hinton

Stephen Lambert (resigned 7 December 2011)

Ian Meakins

Chris Underhill

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the

charity in the event of winding up. The total number of such guarantees at 30 June 2012 was two

(2009/10: 2). The trustees are members of the charity but this entitles them only to voting rights.

25

10 Auditors

Sayer Vincent were reappointed as the charitable company's auditors during the year and have

expressed their willingness to continue in that capacity.

Approved by the trustees on 6 December 2012 and signed on their behalf by:

Louis Elson – Chair and Chair of the Stephen Dawson – Trustee



To the members of

Impetus Trust

Respective responsibilities of trustees and auditors

Scope of the audit of the financial statements

Opinion on financial statements

In our opinion the financial statements:

have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

We have audited the financial statements of Impetus Trust for the year ended 30 June 2012 which

comprise the statement of financial activities, balance sheet and the related notes. The financial

reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company's members, as a body, in accordance with

Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we

might state to the charitable company's members those matters we are required to state to them in

an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept

or assume responsibility to anyone other than the charitable company and the charitable company's

members, as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the information given in the report of the trustees for the financial year for which the

financial statements are prepared is consistent with the financial statements.

As explained more fully in the Statement of Trustees’ responsibilities set out in the report of the

trustees, the trustees (who are also the directors of the charitable company for the purposes of

company law) are responsible for the preparation of the financial statements and for being satisfied

that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with

applicable law and International Standards on Auditing (UK and Ireland). Those standards require us

to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

An audit involves obtaining evidence about the amounts and disclosures in the financial statements

sufficient to give reasonable assurance that the financial statements are free from material

misstatement, whether caused by fraud or error. This includes an assessment of: whether the

accounting policies are appropriate to the charitable company’s circumstances and have been

consistently applied and adequately disclosed; the reasonableness of significant accounting

estimates made by the trustees; and the overall presentation of the financial statements. In addition,

we read all the financial and non-financial information in the report of the trustees to identify material

inconsistencies with the audited financial statements. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice; and

give a true and fair view of the state of the charitable company’s affairs as at 30 June 2012 and

of its incoming resources and application of resources, including its income and expenditure, for

the year then ended;

26


To the members of

Impetus Trust

Matters on which we are required to report by exception

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Catherine L Sayer (Senior statutory auditor)

10 December 2012

for and on behalf of Sayer Vincent, Statutory Auditors

Sayer Vincent, 8 Angel Gate, City Road, LONDON EC1V 2SJ

We have nothing to report in respect of the following matters where the Companies Act 2006

requires us to report to you if, in our opinion:

adequate accounting records have not been kept or returns adequate for our audit have not

been received from branches not visited by us; or

27

Statement of financial activities (incorporating an income and expenditure account)

2012 2011

Restricted Unrestricted Total Total

Note £ £ £ £

Incoming resources

2a 1,329,110 4,556,859 5,885,969 4,890,652

- 42,549 42,549 38,382

Total incoming resources 1,329,110 4,599,408 5,928,518 4,929,034

Resources expended

Costs of generating funds:

Fundraising and investor relations 3 6,000 487,209 493,209 417,260

Charitable expenditure:

3 1,316,879 3,261,621 4,578,500 3,869,353

Governance costs 3 - 154,233 154,233 141,061

1,316,879 3,415,854 4,732,733 4,010,414

Total resources expended 3 1,322,879 3,903,063 5,225,942 4,427,674

6 6,231 696,345 702,576 501,360

201,837 (201,837) - -

Funds at the start of the year 13 136,497 2,862,217 2,998,714 2,497,354

Funds at the end of the year 13 344,565 3,356,725 3,701,290 2,998,714

Reconciliation of funds

Investment income

Grants and donations for supporting

charities and capacity building

Supporting charities and capacity

building

Activities in furtherance of the charity's

objects:

Impetus Trust

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than

those stated above. Movements in funds are disclosed in Note 13 to the financial statements.


Net incoming resources/net movement

in funds

Transfer between reserves

28

Balance sheet

2012 2011

Note £ £ £

Tangible fixed assets 9 34,391 31,358

Current assets

Debtors 10 71,918 65,095

Short term deposits 3,198,672 2,823,634

Cash at bank and in hand 1,064,283 717,642

4,334,873 3,606,371

Creditors: amounts due within one year 11 (580,974) (465,015)

Net current assets 3,753,899 3,141,356

Creditors: amounts due after more than one year 11 (87,000) (174,000)

Net assets 12 3,701,290 2,998,714

Funds 13

Restricted funds 344,565 136,497

Unrestricted funds 5 3,356,725 2,862,217

Total funds 3,701,290 2,998,714

Louis Elson – Chair and Chair of the Stephen Dawson - Trustee


Approved by the trustees on 6 December 2012 and signed on their behalf by

Impetus Trust (Limited by Guarantee)

Company no. 04556227

As at 30 June 2012

29

Notes to the financial statements

3. Charitable expenditure

2012 Total 2011 Total

Restricted Unrestricted Total Restricted Unrestricted Total Restricted Unrestricted Total Restricted Total

£ £ £ £ £ £ £ £ £ £ £ £ £ £

Staff costs (note 6) - 236,635 236,635 449,098 132,852 581,950 - 82,584 82,584 - 51,063 51,063 952,232 583,156

Recruitment - 31,253 31,253 2,800 - 2,800 - - - - - - 34,053 3,000

Travel & subsistence - 4,845 4,845 13,038 3,259 16,297 - 14,156 14,156 - 1,600 1,600 36,898 23,450

Volunteer expenses - - - 3,621 905 4,526 - - - - - - 4,526 8,375

Consultancy & due diligence (a) - - - 34,970 2,582,641 2,617,611 - - - - - - 2,617,611 2,271,679

Office overheads - 36,083 36,083 68,481 20,257 88,738 - 107,025 107,025 - 7,785 7,785 239,631 256,989

Marketing & communications 6,000 118,118 124,118 1,962 - 1,962 - - - - - - 126,080 190,261

Advocacy - - - 16,800 26 16,826 - - - - - - 16,826 -

Legal and professional (b) - - - - - - - - - - 73,728 73,728 73,728 218,393

Audit (note 5) - - - - - - - - - - 7,050 7,050 7,050 6,840

Depreciation (note 5) - 4,411 4,411 8,371 2,477 10,848 - 1,539 1,539 - 952 952 17,750 10,871

Reallocation of support costs - 55,864 55,864 57,256 80,129 137,385 - (205,304) (205,304) - 12,055 12,055 - -

6,000 487,209 493,209 656,397 2,822,546 3,478,943 - - - - 154,233 154,233 4,126,385 3,573,014

Grants payable to charities (note 4) - - - 660,482 439,075 1,099,557 - - - - - - 1,099,557 854,660

Total resources expended 6,000 487,209 493,209 1,316,879 3,261,621 4,578,500 - - - - 154,233 154,233 5,225,942 4,427,674

For information purposes the above amounts include the following pro bono resources

Donated services (c) - (95,284) (95,284) - (2,643,549) (2,643,549) - - - - (75,457) (75,457) (2,814,290) (2,718,373)

Total cash resources expended 6,000 391,925 397,925 1,316,879 618,072 1,934,951 - - - - 78,776 78,776 2,411,652 1,709,301

(d) The value delivered by Impetus to our portfolio charities is made up of:

2012 2011

£ £

Donated services to charities 2,643,549 2,359,506

Grants to charities (see above) 1,099,557 854,660

Value of Investment Team (including pro bono support) 835,394 655,187

Total as set out above 4,578,500 3,869,353

Partnership investment (see note 2) 100,000 275,000

Additional funds raised (see note 2) 375,960 353,542

Total value generated for charities 5,054,460 4,497,895

Impetus Trust

Unrestricted

Costs of generating funds Supporting charities (d) Support costs Governance

(c) Pro bono services delivered to charities of £2,643,549 includes an allocation of office overheads of £63,191 to the cost of the investment team.

(a) Increase is due primarily to the significant expansion of our pro bono experts network and reflects the scaling up of our operations.

(b) Decrease in legal and professional costs relates to the value of pro bono work in connection with the contract for the Education Endowment Fund required for the Fund's set-up last year did not reoccur.


30


1. Accounting policies

a)

b)

c)

d)

2012 2011

88% 87%

9% 10%

3% 3%

2012 2011

80% 82%

17% 15%

3% 3%

Supporting charities & capacity building

Governance costs

No recognition is contained in the accounts in respect of future donor commitments.

Donated services and facilities are recognised as income and expenditure in the financial

statements when companies or individuals offer their professional expertise pro bono. The value

of these donated services and facilities is an estimated figure based upon the valuation the

professional individual or organisation places upon the time, services and facilities they have

provided to Impetus Trust. Individuals offering their time to work in areas where they are not

undertaking their profession are classified as volunteers and their time is not quantified in the

accounts, but is recognised in the trustees' report. All of these amounts are treated as

unrestricted donations.

Resources expended are allocated to the particular activity where the cost relates exclusively and

directly to that activity. In addition, an allocation of salary and overhead costs of the central

function is made and is apportioned based upon staff estimates of time spent on each activity

(including the time of the executives who offer their services on a pro bono basis). Including the

value of donated services, the apportionment of the costs of the central function are as follows:

Supporting charities & capacity building

Fundraising & investor relations

Fundraising & investor relations

Impetus Trust


Grants to Impetus Trust are recognised in full in the statement of financial activities in the year in

which they are receivable, or in the case of grants with associated eligibility criteria, in the year in

which those criteria are satisfied.

The financial statements have been prepared under the historical cost convention and in

accordance with applicable accounting standards and the Companies Act 2006. They follow the

recommendations in the Statement of Recommended Practice, Accounting and Reporting by

Charities (issued in March 2005).

Voluntary income is received by way of donations and gifts and is included in full in the statement

of financial activities when received.

Where entitlement to grants receivable is dependent upon fulfilment of conditions within the

charity's control, the incoming resources are recognised when there is sufficient evidence that

conditions will be met. Where there is uncertainty as to whether the charity can meet such

conditions recognition of the incoming resource is deferred.

Resources expended are recognised in the period in which they are incurred. Resources

expended include attributable VAT which cannot be recovered.

Governance costs

On a cash basis (ie. excluding the value of donated services), after the apportionment of the costs

of the central function, the split of costs is as follows:

31


Impetus Trust


1.

g)

h)

i)

j)

k)

l)

m)

Grants payable to charities are charged in the year when the offer is conveyed to the investee

charity except in those cases where the offer is conditional, which is typical of investee charities of

Impetus. Funding is usually offered over a period of up to five years, which is reviewed on a

regular basis throughout the funding relationship. Continued funding is conditional upon the

charities meeting specified milestones. Conditional grants are recognised as expenditure when

the conditions are fulfilled. If the conditions have not been met at the year end, the grants are

noted as a future commitment but are not shown as expenditure.

3 yearsComputer equipment

Items of equipment are capitalised where the purchase price or the cost of the capital project

exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the

related assets in those activities. Assets are reviewed for impairment if circumstances indicate

their carrying value may exceed their net realisable value and value in use.

The charitable company operates a defined contribution pension scheme. The assets of the

scheme are held separately from those of the charitable company in an independently

administered fund. The pension cost charge represents contributions payable under the scheme

by the charitable company to the fund. The charitable company has no liability under the scheme

other than for the payment of those contributions.

Office equipment

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure

which meets these criteria is matched to the restricted funds, together with a fair allocation of

overheads and support costs, if appropriate.

The costs of generating funds relate to the costs incurred by the charitable company in raising

funds for the charitable work. This includes an allocation of salary and overhead costs of the

central function and is apportioned based upon staff estimates of time spent on fundraising

activity.

Short term deposits represent cash on deposit and fixed-term bonds.

Fixtures and fittings

Unrestricted funds are donations and other incoming resources receivable or generated for the

objects of the charity.

Accounting policies (continued)

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated

residual value over its expected useful life. The depreciation rates in use are as follows:

5 years

5 years

32


Impetus Trust


2. Activities in furtherance of the charity's objectives

a) Incoming resources

2012 2011

Restricted Total Total

£ £ £ £

Grants 925,110 483,138 1,408,248 558,884

Donated services - 2,814,290 2,814,290 2,718,373

404,000 1,259,431 1,663,431 1,613,395

1,329,110 4,556,859 5,885,969 4,890,652

Interest income - 42,549 42,549 38,382

Total incoming resources 1,329,110 4,599,408 5,928,518 4,929,034

b)

2012 2011

Total Total

£ £

Partnership investment 100,000 275,000

Additional funds raised for portfolio charities 375,960 353,542

475,960 628,542

Donated services represent pro bono services and facilities received by Impetus Trust. These

services relate both to work performed for Impetus and for our portfolio charities and are included

as expenditure under note 3 as follows: Consultancy (2011/12: £2,402,482), Due diligence

support (2011/12: £177,874), Legal and Professional (2011/12: £69,913), Fundraising (2011/12:

£69,589) and Office overheads (2011/12: £94,432).

Cash donations from individuals and

companies

Additional funds raised for charities are donations made directly to the portfolio charities where

Impetus was instrumental in obtaining those funds. These amounts are not included in Impetus's

own financial statements and differs from partnership investment as there is no contractual

commitment between Impetus and the funder.

Total additional funds generated by

Impetus for portfolio charities

Partnership investment does not flow through the accounts of Impetus but is contractually agreed

between Impetus and the funder to be paid directly to the charity, as a direct result of Impetus's

involvement.

Partnership investment and additional funds raised for portfolio charities

Unrestricted

Total incoming resources in furtherance of the

charity's objectives

33


4. Grants payable

Grants paid to portfolio charities in the year were as follows:

2012 2011

£ £

St Giles Trust 8,000 8,000

beat - 5,000

NPL - 5,000

Keyfund Federation 7,154 3,660

Camfed International 5,000 13,000

Fairtrade Foundation 100,000 130,000

IntoUniversity 13,169 25,000

Street League 137,800 250,000

Blue Sky 87,500 75,000

COUI - Teens & Toddlers 100,306 140,000

FRC Group 5,000 12,500

Resurgo Trust 62,500 37,500

Prisoners' Education Trust 17,591 37,500

Kainos Community 12,500 37,500

Prison Radio Association 122,500 37,500

Shannon Trust 62,500 37,500

Education Endowment Fund 127,000 -

Ripplez 100,000 -

I CAN 54,594 -

Family Links 50,088 -

Working Chance 26,355 -

1,099,557 854,660

£

2012/13 589,500

2013/14 449,000

2014/15 190,000

2015/16 90,000

Total 1,318,500

Continued funding of portfolio charities is conditional upon the charities meeting specified milestones.

Conditional grants are recognised as expenditure when the conditions are fulfilled. If the conditions

have not been met at the year end, the grants are noted as a future commitment but not shown as

expenditure.

The total amount of grants that are authorised but not accrued as expenditure at 30 June 2012 was

£1,318,500 (2010/11: £1,329,500). This amount relates solely to the charities listed above and

excludes any amounts in respect of new investees. It excludes potential scale-up phase investments

for those charities currently in the planning phase of investment. Scale-up investment needs to be

approved by our Investment Committee. If all current charity investees progress as envisaged, the

phasing of future commitments is estimated as follows:

Impetus Trust


Impetus Trust now adopts a three-phase approach to its investment in charities. Typically, in the first

phase of the investment programme (planning phase), grant payments are lower than in the second

phase (scale-up phase). The third phase, the transform stage, has been introduced this year. During

this phase we invest in investees already within the portfolio who show further potential for rapid scale

up and/or have the potential for social investment and major contracting work. The precise nature of

the investment including term and amount invested will be reviewed on a case by case basis by the

Investment Committee. As a result, total annual payments to charities can vary significantly depending

on the phase of the investment programme.

34


Impetus Trust


5. Grants payable (continued)

6. Net incoming resources for the year

This is stated after charging:

2012 2011

£ £

Trustees' remuneration - -

Trustees' expenses 229 1,322

Depreciation 17,750 10,871

Auditors' remuneration: audit 7,050 6,840

7. Staff costs

Staff costs were as follows:

2012 2011

£ £

Salaries and wages 829,728 507,801

Social security costs 106,907 64,308

Pension contributions 15,597 11,047

952,232 583,156

2012 2011

3 1

£70,000 - £80,000 1 -

1 -

1 1

The employer's pension contributions for staff earning more than £60,000 per annum amounted to

£8,200 (2011: £2,652).

Pension contributions outstanding at the year end were £nil (2010/11: £981).

Staff numbers

There are no expenses for trustees' expenses in relation to travel and subsistence costs incurred in

connection with their work supporting our portfolio charities (2010/11: two). There are, however, travel

costs for two (2010/11: two) other trustees.

Salary band

£60,000 - £70,000

£80,000 - £90,000

£100,000 - £110,000

The salary breakdown by employee is shown in the table below (where applicable).

All grants made by Impetus Trust are for the furtherance of its charitable objectives, to advance the

efficient and effective administration of charities.

In addition to the commitments mentioned in note 4, Impetus has also approved but not contractually

committed to a planning phase investment for one charity in the Impetus Early Years Initiative totalling

£100,000, as well as a transform phase investment in the Social Opportunity Initiative has been

approved for an investment of £1,000,000.

No of employees

The average weekly number of employees (full-time equivalent) during the year was 14.5 (2010/11:

9.7). Owing to the small staff complement, further breakdown of staff by function is not included.

The above conditional grant commitments to charities are underwritten by existing reserves of

£3,701,289 (see note 13) and future donor commitments to Impetus Trust which are not recognised in

these accounts.

35


Impetus Trust


8. Taxation

9. Tangible fixed assets

Fixtures &

fittings

Office &

computer

equipment 2012 2011

£ £

Cost

At the start of the year 27,368 26,422 53,790 45,105

Additions in year 15,935 4,848 20,783 8,685

Disposals in year (1,648) (2,097) (3,745) -

At the end of the year 41,655 29,173 70,828 53,790

Depreciation


Charge for the year 9,577 8,173 17,750 10,871

Depreciation on disposals (1,648) (2,097) (3,745) -

At the end of the year 16,733 19,704 36,437 22,432

Net book valueAt the end of the year 24,922 9,469 34,391 31,358


10. Debtors

2012 2011

£ £

Other debtors 58,811 43,607

Prepayments 13,107 21,488

Provision for bad debts - -

71,918 65,095

Impetus Trust is exempt from corporation tax as all its income is charitable and is applied for charitable

purposes.

36


Impetus Trust


11. Creditors: amounts due within one year

2012 2011

£ £

Trade and other creditors 3,151 2,905

Tax and social security 38,878 25,857

Accruals 153,582 83,703

Deferred income 385,363 352,550

580,974 465,015

2012 2011

£ £

Creditors: amounts due after more than one yearDeferred income 87,000 174,000

12. Analysis of net assets between funds

Restricted

funds

General

funds Total

£ £ £

Tangible fixed assets - 34,391 34,391

Net current assets 431,565 3,322,334 3,753,899

Long Term Liabilities (87,000) (87,000)

344,565 3,356,725 3,701,290

Amounts treated as deferred income represent grants received from the JP Getty Jnr Charitable Trust,

The Indigo Trust (one of the Sainsbury Family Charitable Trusts), The Henry Smith Charitable Trust

and the Esmée Fairbairn Foundation, in respect of the Impetus for Reducing Reoffending Initiative and

from The Monument Trust (one of the Sainsbury Family Charitable Trusts) in respect of the Impetus -

Sutton Early Years Initiative. These amounts will be recognised as income in line with contractual

arrangements with the charities selected for inclusion in our portfolio and other performance

milestones.

Net assets at the end of the year

37


Impetus Trust


13. Movements in funds

At the

start of

the year Transfers

£ £ £ £ £

39,850 358,500 (326,838) 6,038 77,550

61,600 326,800 (438,416) 195,416 145,400

35,047 491,250 (404,682) - 121,615

- 152,560 (152,943) 383 -

136,497 1,329,110 (1,322,879) 201,837 344,565

2,862,217 4,599,408 (3,903,063) (201,837) 3,356,725

Total funds 2,998,714 5,928,518 (5,225,942) - 3,701,290

Purposes of restricted funds

14. Operating lease commitments

15. Related party transactions

Total restricted funds

At the end

of the year

Outgoing

resources

Purpose of general funds

Impetus Trust receives donations for specific charities, amounts for events and for specific

expenditure. These are treated as restricted donations.

Social Opportunity Restricted

Projects

One trustee, Nat Sloane, provides support directly to Impetus. The value of his work is included in

donated services (see note 2).

At 30 June 2012 the charitable company had annual commitments under operating leases of £41,512

(2010/11: £31,134).

Incoming

resources

Impetus for Reducing Reoffending

Initiative

Impetus - Sutton Early Years

Initiative

Total unrestricted general

funds

Restricted funds

The general fund will be used to support Impetus's operations and a significant proportion of the

conditional grant commitments made to portfolio charities of £1,318,500 referred to in note 4.

Social Action Fund

38

impetus trust final accounts 2011/12

Documents

charity number

report highlights

trusteescontents page

trustees annual report

charitable purposes

financial statements30

impetus trustreport

administrative detailspage