The trustees present their annual report and financial statements for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the 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) " (effective 1 January 2019 ).
Action for Happiness is a charity which promotes mental health and wellbeing through the provision of information, evidence-based resources, public events, educational services, training and community activities.
Our vision is a happier and kinder society, with far fewer people suffering due to mental ill health or social isolation and far more people feeling good, functioning well and helping others. We are backed by leading experts and all of our activities are grounded in the latest scientific research.
Please note: The Action for Happiness project was originally launched in 2011, based within The Young Foundation (Registered Charity 274345). In 2017 Action for Happiness was established as an independent Company Limited by Guarantee (10722435) and registered charity (1175160) and on 31 December 2017 all assets, liabilities and Intellectual Property were transferred to the new entity.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Below is a summary of the key Action for Happiness achievements in 20 21 :
Completed a successful fourth full year of operation as an independent charity.
Scaled up our on-going response to the Covid crisis through our campaign to support community wellbeing and associated resources for use in lockdown.
Continued our successful series of monthly themed calendars with daily action ideas, which were used by over 2 million people during the year.
Scaled up our successful online webinar series holding 23 online events during 2021, with over 120,000 people taking part.
Continued to support and deliver our network of volunteer-led online Action for Happiness groups. Over 110 local groups were supported with 8,000 people signing up to take part.
Grown our “10 Days of Happiness” coaching program for challenging times. Over 80,000 people have signed up to take part, with measurable increases in participant wellbeing.
Delivered significant growth in the Action for Happiness smartphone app and grew the community to over 170,000 registered users.
Invested in communication and promotion reach new audiences, focusing on those in need of support for their wellbeing and mental health during the Covid pandemic.
Increased team capacity to respond to increasing demand, including new Head of Operations.
Grew the online/social media community to over 1.57 million followers and also added 47,000 more Action for Happiness members, taking the total to 277,000 people.
Reached a total of over 7.7 million website visitors to date at www.actionforhappiness.org
Completed development of a new digital platform to replace the current Action for Happiness website, due to be launched early in 2022.
Completed development of our new, enhanced Action for Happiness course for community groups, due to be launched in 2022.
Continued to support primary schools with the ‘Keys to Happier Living’ Toolkit.
Developed and published our policy on Diversity, Equity, Inclusion and Belonging (DEIB) and took further steps to put this into practice throughout the organisation.
Supported on-going expansion of the Action for Happiness hub in Northamptonshire.
Continued to provide education, resources and training for organisations and schools.
Created a new peer-to-peer network to bring together our community of volunteer leaders.
The year’s activities resulted in a surplus of £217,082 compared with a surplus of £ 166,206 in 20 20 .
The total amount transferred by Gift Aid from the subsidiary company Action for Happiness Trading Limited for the year amounted to £ 629 (20 20 : £ 22,380 ). Minimal funds are retained in the subsidiary, the operating expenses of which are paid by the charity.
The princip al sources of income to Action for Happiness during 20 21 were:
Grant funding
Donations made by Action for Happiness supporters
Income from Educational Services provided to organisations and schools
Reserves policy
It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to at least six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year and the charity ended the year with a higher than usual level of reserves due to receiving additional grants during the year which are eligible to support on-going activity next year.
Risk management
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Future plans
Over the past two years, Action for Happiness’ activities have been significantly impacted by the Covid-19 crisis. At the time of writing, the majority of face-to-face course, events, cafes and other activities continue to be delivered online. While many online activities will continue, it is also hoped that it will be possible to restart more face-to-face activities during 2022 in line with public health guidance and taking into account the preferences of volunteers and participants.
Plans for 2022 now include:
Completing a strategic review of Action for Happiness activities and priorities
Expanding and diversifying our Trustee Board
Launching the new Action for Happiness website and associated online resources
Launching new Action for Happiness course to be run by volunteers in their communities
Recruiting a new Community Wellbeing and Safeguarding Manager
Continuing to grow the overall reach of the Action for Happiness community
Continuing to support local Action for Happiness groups
Continuing to engage large audiences via regular events/webinars
Continuing to grow team capacity to respond to increasing demand for services.
Engaging with new potential funders to support scale-up plans
The charitable company is a company limited by guarantee .
The trustees, who are also the directors for the purpose of company law, and who served during the year were:
The Board of Trustees has overall responsibility for the fulfilling the charity’s aims.
The recruitment and appointment of Trustees was based on ensuring an appropriate balance of expertise, skills and commitment to the mission of the charity. The majority of appointed Trustees had either been cofounders of the original Action for Happiness or long-standing members of its Advisory Board. The Board of Trustees also anticipates appointing two or more additional Trustees during the coming year to bring in additional skills and expertise as required.
Day to day management of the operation of the charity is delegated from the Board to the Chief Executive (Mark Williamson). The Board of Trustees meets at least once per quarter and the Chief Executive reports regularly to the Trustees on the operations, plans and financial position of the organisation, as appropriate.
Action for Happiness is supported by a range of contractors and volunteers to fulfil its mission. Contractors are recruited on a fixed term basis with the skills required to fulfil specific needs. All volunteers are carefully screened and supported in fulfilling their roles, for example in running courses in their local communities.
The trustees' r eport was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Action for Happiness (the charity) for the year ended 31 December 2021.
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 ICAEW, 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.
Donations and grants
Action for Happiness is a private company limited by guarantee incorporated in England and Wales. The registered office is WeWork, 3 Waterhouse Square, 138 Holborn, London, EC1N 2SW.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The trustees consider that it is appropriate to prepare the accounts on a going concern basis as the charity will be able to meet its liabilities as they fall due. In making this assessment the trustees have considered the impact of the Coronavirus which is prevalent at the time of approval of these accounts and are confident that they have adequate resources to continue to operate having taken account of current and future income streams and expenditure commitments.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Resources expended are included in the Statement of Financial Activities on an accruals basis, once there is a legal or constructive obligation to make a payment.
Charitable activities include the cost of providing courses and hosting events, and include both direct costs and support costs relating to these activities.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
Support costs include central functions and have been allocated to charitable activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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 p aymen ts 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.
Irrecoverable VAT
The charity is not required to register with HMRC for VAT. All resources expended are recognised gross of VAT.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Donations and grants
Grants receivable
Event income
Course income
Educational services
Income from subsidiary
The charity owns 100% of the share capital of Action for Happiness Trading Limited which is a company limited by shares held for the purpose of delivering the charitable trading activities of the charity.
Costs of providing courses
Event costs
Educational services
Communication
Community development
Operations
Bank fees
General expenses
Online services
Printing and stationery
Travel
Rent
Insurance
Legal and professional
Independent examination
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year (2020: £nil).
During the year, the trustees received a total of £nil (20 20 : £nil) in expenses from the charity.
The average monthly number of employees during the year was:
This represents the investment in the subsidiary company, Action for Happiness Limited, which is owned by the charity for the purpose of delivering charitable activities.
Details of the charity's subsidiaries at 31 December 2021 are as follows:
During the year the turnover of Action for Happiness Limited was £30,614 and expenditure incurred was £29,985 resulting in a profit of £629. All of the profit was distributed up to the charity in the period.
Founders Pledge
Development and scale-up of new resources and services to support mental wellbeing for individuals and communities in response to the Covid pandemic.
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The charity has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.