ANNUAL ACCOUNTS 2019 2020
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ANNUAL
ACCOUNTS
2 01 9 – 2 0 2 0
Embracing
cha llenge of
the
prevention
Contents
Reports Financial statements
4 Reference and administrative 38 Group statement of financial
information activities
6 Introduction 39 Charity statement of financial
activities
10 Trustees’ report
40 Balance sheets
16 Fundraising & communications
41 Group statement of cash flows
24 Financial review
43 Principal accounting policies
28 Structure, governance and
management 48 Notes to the financial statements
34 Independent auditor’s report
Administration
Patron HRH Princess Alexandra Registered and principal office Colechurch House
The Hon Lady Ogilvy KG GCVO 1 London Bridge Walk
London
Trustees Keith Leslie (Chair to July 2020)
SE1 2SX
Kyla Brand
Neil Caldicott (resigned July 2019) Website www.mentalhealth.org.uk
Linda de Caestecker
Twitter @mentalhealth
Jacqui Dyer OBE (resigned July 2019)
Ann John Facebook www.facebook.com/mentalhealthfoundation
Jenny Paton (Vice Chair) Company registration number 02350846 (England and Wales)
Aisha Sheikh-Anene (Chair from July 2020)
Chris Martin (Joined July 2019) Charity registration numbers England and Wales: 801130
Siobhan Sheridan (Joined July 2019) Scotland: SC 039714
Steve Workman (Joined July 2019) Auditor Buzzacott LLP
Jonny Jacobs (Joined November 2019) 130 Wood Street
Rosie Tressler OBE (Joined November 2019) London
Narayanan Vaidyanathan (Joined November 2019) EC2V 6DL
Bankers Coutts & Co
440 Strand
Secretary John Tyson (Resigned November 2019)
London
Adrian Lance (Appointed January 2020)
WC2R 0QS
President Professor Jacqui Dyer OBE (Appointed July 2019) Investment managers CCLA Investment Management Limited
COIF Charity Funds
Chair of the Friends of the Foundation Fiorella Massey Senator House
85 Queen Victoria Street
Vice Presidents Lord Dholakia OBE PC DL
London
Lady Euston
EC4V 4ET
Senior Management Team Mark Rowland, Chief Executive Solicitors Bates Wells Braithwaite London LLP
Anna Kingsley-Nyinah, Director of HR and Wellbeing 10 Queen Street Place
London
Antonis Kousoulis, Director for England & Wales
EC4R 1BE
Lee Knifton, Director for Scotland & Northern Ireland
Sarah Tite, Director of Fundraising & Communication
John Tyson, Director of Finance & Resources
(Resigned November 2019)
Adrian Lance, Director of Finance & Resources
(Appointed January 2020)
4 5
Introduction;
Making prevention Who we are
happen
Our vision
Our vision is good mental health for all.
‘Prevention is better than cure’ is a mantra that we often hear extolled and
yet is rarely put into practice. In fact, we know the opposite is often true. Our mission
The vast majority of resources of government, civil society and even the To help people understand, protect and sustain their mental health.
private sector are directed towards investing in treating illness, finding Since 1949, the Mental Health Foundation has been the UK’s leading charity for
cures and managing the symptoms of ill health. everyone’s mental health.
The COVID-19 pandemic has shone a light We need to move away from thinking With prevention at the heart of what we do, we aim to find and address the
on how health is not simply an individual, primarily about treating individuals or sources of mental health problems so that people and communities can thrive.
medical issue. Good health is a collective disorders, and focus on the skills and
endeavour which depends on each other resources needed to create mentally
and a society that supports people to
thrive. With life expectancy stalling for
healthy communities. It will require
sustained and radical action nationally,
The practical things we do
the first time in a generation, we cannot locally and individually if we are to achieve
afford, either socially or economically, to a transformation for the next generation to
continue to ignore the causes of ill-health reach their full potential. i
and expect to meet the health challenges
That is our charitable focus – to achieve a
we face in the twenty-first century. 1. Tell the world - why prevention is 3. Inform and empower - enable
step change in the prevention of mental
With mental health, this is especially true. health problems across the UK and support fundamental to effectively addressing mentally healthier lives through public
Our conviction is that the devastating mentally healthier lives. the mental health crisis information and engagement
impact of mental health problems of all
We have a cultural awakening and
kinds can be prevented.
increased political and academic concern
When you consider that depression is for mental health that makes this a better
already the leading cause of disability time than any before to realise this vision.
in the world and you understand the 2. Find solutions - innovate universal 4. Change policy and practice - build
Coming out of a physical health crisis in
contribution that poor mental health also and targeted evidence-informed alliances and champion prevention
COVID-19, in the coming year we aim to
makes to poor physical health, prevention community programmes for large in policies and changes to society
lead a movement for change to focus on
in mental health should be a national and numbers of people, generating and that are adopted by Government and
how we build a mentally healthier society.
global priority. sharing evidence of what works in organisations
We want to empower individuals to find
practice to prevent mental health
However, prevention requires empowering a way of living that brings mental health
problems, rooted in lived experience
individuals and communities to support dividends not simply deficits.
their mental health. It needs bold action
That will require us to reach out widely to
to address issues like poverty, racism,
persuade people to come together to work
economic inequalities that mean some
collectively towards good mental health for
in our society face much greater risk of
all.
mental ill-health than others.
7Introduction
We hope we will look back on 2019/2020 at its heart which, if heeded, would see a As the financial year drew to This report sets out our work in
as a seminal year for the Mental Health sustained reduction in levels and severity a close, the Foundation came more detail and we welcome the
In November 2019, the Foundation of mental ill-health and better mental to terms with the COVID-19 opportunity to work with new
celebrated its 70th year. It was a milestone health for all. pandemic. We moved quickly to partners and donors who share
that bore witness to the dedication and close our three offices and protect our vision and ambition for good
During the year, the executive have gone
passion that has driven the Foundation staff health. mental health for all.
to work to bring that vision to life through
in raising awareness and finding better
our ground-breaking research across Due to the generosity of our
answers to support our mental health. We
the UK, policy work and supporters, we were able to play
were delighted to be joined
applied work in prevention in a full part in the national effort to
by our fantastic supporters,
communities across the UK. support the mental health of the
our staff and board as well
Our subsidiary community nation, developing one of the UK’s
as our patron HRH Princess
interest company, Mental leading COVID-19 information
Alexandra, president, AISHA SHEIKH-ANENE
Health At Work, continues hubs and launching a major new
Jacqui Dyer OBE and our Chair of Trustees
to help businesses tackle longitudinal study on the impact of
chair of the Friends of the
stigma and enable COVID-19 on the UK population.
Foundation, Fiorella Massey.
workplaces to address
It was a special privilege to The Foundation has deepened its
mental health. It was also a
meet family members of our commitment to standing against
year where we strengthened
founder Derek Richter to racism and discrimination which
our work and commitment
mark this occasion with us. is so damaging to people’s mental
in Wales, Scotland and
health. We are striving to increase
But as well as celebrating Northern Ireland.
our own diversity as well as MARK ROWLAND
our significant achievements
Our work in public creating a sense of real belonging Chief Executive
of the past, we also took the
Derek Richter founded our engagement continues to through support for our staff’s
opportunity to look forward. organisation in 1949 to address grow. Our website is now wellbeing.
After nine months of work the imbalance in physical and one of the UK’s leading sites
and thought, the Foundation mental health funding. Our financial position remains
on mental health guidance
launched its new strategy, strong and we are investing our
and advice. When the
Making Prevention Happen. surplus in responding to the mental
Foundation first launched Mental Health
health needs of the UK population
See the full strategy on our website: Awareness Week (MHAW), few would have
and in line with delivering our
https://rebrand.ly/MHF-strategy envisaged how it has grown to a powerful
ambitious new strategy for 2020-
UK-wide week of events that millions of
The strategy outlines our commitments 2025. We are committed to
people get involved with. The 2019 theme
to achieve greater impact, influence and building a sustainable organisation
and report on Body Image addressed an
integrity in our work. It lays out a vision and a transformation in the
issue that is too often ignored but central
of a society which puts our mental health Foundation’s impact and reach.
to good mental health.
8 9Trustees’ report Our prevention
approach
The trustees (who are also the directors of the charitable company for the purposes Our strategy commits us to the development of prevention solutions – informed
of company law) present their statutory report together with the consolidated by the best evidence. We’re placing this search for solutions in three key frames
financial statements of the Mental Health Foundation (the “Foundation”) and its
subsidiary (Mental Health at Work) for the year ended 31 March 2020.
The report has been prepared in accordance with Part VIII of the Charities Act 2011
and constitutes a directors’ report for the purpose of company legislation. FOR
The financial statements have been prepared in accordance with the accounting EVERYONE
Because we all have
policies set out on pages 42 - 46 of the attached financial statements and comply
mental health, and with
with the charitable company’s memorandum and articles of association, applicable the right tools we can
laws and Accounting and Reporting by Charities: Statement of Recommended protect and promote this
Practice (SORP) applicable to charities preparing their accounts in accordance at every stage of life.
with the Financial Reporting Standard applicable in the United Kingdom and
Republic of Ireland (FRS 102).
The trustees confirm that they have had due regard to Charity Commission’s
guidance on public benefit.
FOR
SOCIETY
Because the
levers that enable FOR
prevention are bigger THOSE AT RISK
than individuals and Because the risk and
communities. They impact of mental health
require structural problems is greatest for
changes in our those who experience
world. inequality and
disadvantage.
10 11Our objectives
and achievements
1 Improving our understanding of how to prevent
2 Creating new evidence-based solutions
mental health problems
Last year: Last year:
• We published seminal reports • We published a three-year evaluation • We set up new projects across England • We continued running a big pilot project
summarising the evidence and knowledge of See Me, Scotland’s anti-stigma and Wales working with population across southern Wales supporting
on: programme, and presented at a groups who are at higher risk for mental older people living in supported
ͦ prevention and mental health conference of 100 delegates including health problems, which included: accommodation to build connections
Scotland’s Minister for Mental Health. ͦ young people whose parents live with and communities.
ͦ tackling social inequalities to address
mental health problems. • We published our hard-hitting study on mental health problems • We further developed our community
support for those bereaved by suicide in ͦ refugees leadership programme with refugees
• We published an important state-of-a-
Scotland. across Scotland.
generation report, providing the latest ͦ new university students
evidence on the mental health of young • We published academic articles and led • We established ‘We Can’ Scotland to
ͦ communities of men who are isolated.
people and how to prevent problems. a series of successful events marking the provide young people with long-term
• We continued running our big peer
end of our four-year international CRISP health conditions a platform to show how
• In partnership with Public Health Wales, education project in secondary schools,
(Citizenship, Recovery and Inclusive services can better meet their mental
we published a co-produced report on reaching over 20,000 students across
Societies Partnership) exchange with New health needs.
the mental health of farmers and their England, Wales and Scotland.
York, Yale and Illinois Universities.
families, summarising the evidence on
what programmes of support might work • We launched ‘Empowering people
for this population. through physical activity’, a participatory
research project with Queen’s University
Belfast.
Plans for the year going forward: Plans for the year going forward:
• We will publish a new important state- and best practice in prevention, with • We will set up a high-profile project, protect their mental health in university.
-of-a-generation report, providing the Universities Scotland. licenced and adapted from the United • We will set up a young leaders panel
latest evidence on the mental health of • We will publish reports from an exciting States, called ‘Becoming A Man’ to and a research community of experts
adults during key life transitions and how new research collaboration with provide a psychologically informed by experience to ensure that lived
problems can be prevented. Barnardo’s and Strathclyde University approach to support boys and young experience informs all our work at all
• We will complete a research trial in on strategic partnerships for young men who are experiencing challenges levels.
Manchester assessing the efficacy of a people’s mental health. and are at risk of being involved in youth
• We will develop our ‘Stress Less’
digital mental health tool for prevention. violence.
• We will launch the large-scale youth programme to support wellbeing during
• We will conduct comprehensive prevalence study for Northern Ireland • We will scale our work with training transitions to secondary schools for
research on the impact of the COVID-19 with Ulster and Queens Universities. refugees to be community leaders in young people.
pandemic on mental health in the UK. Wales.
• As joint lead partners we will help to
• We will lead a longitudinal study with • We will work with the University of renew our ‘See Me’ national anti-stigma
all of Scotland’s 18 higher education Sussex to co-produce resources and programme into a new five-year phase.
establishments on student mental health support programmes for young people to
12 13Our objectives
and achievements
3 Making practical support available 4 Be an advocate for change
Last year: Last year:
• We made advice and support available Scotland, which supported over 1000 • We published authoritative consistent advocate for the value of taking
through our multiple digital channels in people to access support. recommendations for improving body a public mental health approach in all
the form of articles, podcasts, blogs and image and mental health using measures policies.
campaigns. • We continued to deliver our long-
in policy and practice.
standing refugee mental health • We co-chaired the Scottish government’s
• We offered a variety of self-help guides programme, Community Conversation, • We published a manifesto for the UK policy group on body image and young
in print and online, including publishing in Scotland. government advocating for mental people and produced recommendations
new suicide prevention advice to help health equality, analysed the positions on for policy change.
people know where to start when they • We continued to host Voices of
mental health of all parties going into the
want to support a loved one. Experience, Scotland’s national • We used our research to effectively
general election, and lobbied for increased
mental health service-user advocacy influence Scotland’s national suicide
attention to mental health through
• We continued as leadership partners organisation supporting hundreds of prevention leadership group, to develop
meeting politicians and officers.
in Future Pathways, a £13m fund for members across Scotland. and fund a new approach to support
people who experienced abuse in care in • We responded to the Prevention Green families bereaved by suicide.
Paper consultation and were a strong and
Plans for the year going forward: Plans for the year going forward:
• We will curate a world-leading page • We will work with WWF-UK to publish • We will advocate for a role for kindness in • We will launch new research and a map to
with diverse advice on looking a comprehensive guidebook for mental public policy for Mental Health Awareness present suicide risks across England and
after your mental health during the health aiming to raise awareness and Week and publish comprehensive evidence signpost local authorities to interventions.
COVID-19 pandemic. It will include open conversations about mental on what kindness means.
• We will develop a high-impact manifesto
advice and support based on the latest health issues, while recognising the
• We will continue our advocacy for improving campaign for the Scottish parliamentary
evidence, and articles co-produced by increasingly important role that nature
the understanding around body image and elections.
people with lived experience, translated plays in supporting positive mental
mental health for young people.
in many languages spoken in the UK. wellbeing. • We will take on the leadership of Scotland’s
• We will publish a briefing on the role of Mental Health Partnership.
• We will publish a new “How to look
image-editing apps and how their negative
after your mental health” guide, • We will play an influential role in the
impacts on mental health can be mitigated.
including new evidence-based solutions formation of the Northern Ireland ten-year
for protecting and promoting good • We will advocate for the UK to maintain mental health strategy.
mental health based on rigorous public mental health as a priority in any
and transparent research led by our new national structures influenced by the • We will lead the ‘More than just a condition’
research team. pandemic. campaign for young people with long-term
health conditions in Scotland to highlight
• We will work to influence local election mental health during the pandemic.
manifestos to ensure a voice for mental
health.
14 15Fundraising &
communications D O N AT I O N S & L E G A C I E S
OUR APPROACH TO FUNDRAISING Royal Patron Unrestricted donations form Trusts and Legators
HRH Princess Alexandra Foundations (greater than £1,000)
We are grateful to all the people who
Supporters of the Mental Health The Hon Lady Ogilvy KG GCVO
Peacock Charitable Trust £27,000 chose to support the Foundation with
Foundation are at the heart of who we are
Hugh and Mary Miller Bequest £8,800 a gift in their Will. We have listed below
and what we achieve towards our vision of
Friends of the Foundation Martin Charitable Trust £5,500 all the legacies where a cash amount or
good mental health for all.
Salomon Oppenheimer Philanthropic quantifiable notification of more than
Fiorella Massey (Chair)
Foundation £5,000 £10,000 was received during the year
We are grateful not just for all the support Claire Beecham Scouloudi Foundation £3,000 2019/20
given but also the trust that is being gifted Sindy Capln White Oak Charitable Trust £2,000
to us with each donation we receive. Stephen Schick £1,250,000
Michaela Caraffa G M Morrison Charitable Trust £1,500
Sheila Jane Talbot £340,904
Every donation is helping to transform Janie Critchley
Walter Pearce £140,000
lives. We would like to extend our thanks to Caroline Bettaney Cruddance
Mavis Ramm £129,262
the following for their support. Georgina David
Angela Mary Dunn £100,000
Cindy Dawood
Mary Jane Morrison £59,000
Marianne De Giorgio
Margaret Wood £54,217
Mary Fitter
Evelyn Harrand £52,000
Kate Glick
John Stewart £21,189
Alison Goldberg
Sally Marshall £19,000
Fiona Grunschlag
John Bird £18,000
Susan Heller
Desdemona Jeeps £14,220
Candice Hurwitz
J W Barnes £12,751
Vanessa Jossel
Stella Mary Sanders £10,000
Marsha Lee
Jennifer Leigh
Maxine Leslau
Alison Lurie
Louise Nathanson
Riquita Newmark
Wendy Press,
Francesca Tait
16 17Fundraising &
communications
PUBLIC & COMMUNITY FUNDRAISING C O R P O R AT E P A R T N E R S H I P S
The Mental Health Foundation is committed to ensuring we uphold our duty of care At the heart of our work to expand our fundraising and engagement is an expansion of
to our supporters, and effective regulation lies at the heart of this. The Foundation’s our corporate partnerships programme.
fundraising and communications sub-committee of the board continues to have
Through our work with business, we look to achieve three things – Income, Impact, and
oversight the Foundation’s ethical policy and fundraising compliance.
Insight. We are delighted to work with partners that want to raise money for us through
We seek to uphold the highest standards of fundraising both of our staff and of the staff activities and reaching out to customers – but our interests are deeper than that.
organisations who work on our behalf. We are registered with the Fundraising Regulator Our partnerships also enable us to get our message to staff, to customers and to the
and a member of the Institute of Fundraising as well as the Public Fundraising Operational communities the business’ we serve.
Users Forum which oversees regulation of face-to-face activities. We have ensured that
We spend a third or more of our life at work – workplaces have a key role to play in
effective whistle-blowing policies in place to ensure any poor practice is reported.
protecting and improving our mental health. We’re delighted that partnerships often
We monitor calls and we train fundraisers about how to protect vulnerable people that enable companies to start a mental health programme for staff, that can include adapting
they engage with, as well as having commercial participator agreements in place with our evidence-based content, and bringing in the training and development programmes
corporate partners. Although we received no formal complaints this year, we continue we offer directly and through Mental Health at Work, our thriving subsidiary that
to monitor concerns that don’t necessarily become complaints. We recognise the specialises in delivering tailored programmes to business.
importance of complying with data regulations while also ensuring we continue to
This year we have worked with over twenty corporate partners in a range of different
innovate and invest for the future.
sectors including financial services, fashion, media, recruitment, and hospitality. As we are
a small team we can work in a personal way with our partners – tailoring partnerships to
Public fundraising Community fundraising meet the needs of small and large businesses.
We continue to engage by post, email We continue to see a growth in income Manolo Blahnik XPS Group PLC
and phone as well as face-to-face with from our community fundraising
hundreds of people across the UK. This activities; bringing people together in their In May 2019 we launched a partnership XPS Pensions Group selected the
helps us engage with a wider audience communities all having fun together and with luxury fashion brand shoe Manolo Foundation as its charity partner in January
and turn these conversations into action raising vital money by holding fundraisers, Blahnik. During Mental Health Awareness 2019. With 1200 staff in 15 locations across
by recruiting new regular supporters who walking, running, playing music and eating, Week 2019, Manolo Blahnik International the UK, the business marked Mental Health
help contribute to a strong sustainable with a shared belief that no one should face raised funds through sales of green shoes Awareness Week in offices across the UK
Foundation. mental health problems alone. in their London Boutiques and by donating by selling green ribbons, wearing green to
in return for likes on their Instagram feed, work, and by hosting Curry & Chaat and
We have also launched a new fundraising with 3.2m followers. This was the start of an Tea & Talk events. Alongside the fundraising
initiative, MHF Live. We recognise music as ongoing partnership which has flourished. events, we have also been supporting the
a powerful tool - not only can it lift moods, business in developing its mental health
but it can also help to break down stigma, programme, training over 150 managers in
encourage conversation and promote the business and providing monthly content
positive mental health for all. for the firm’s intranet.
18 19Fundraising &
communications
C O R P O R AT E F U N D R A I S I N G C O N T I N U E D C A M PA I G N S
Zizzi We would like to thank the following Mental Health Awareness Week (MHAW)
corporate partners, for their support,
In January 2020 we launched a major This MHAW proved to be the biggest yet in the 19 years we have hosted the campaign. This
direct and in kind.
national partnership with Italian restaurant year’s theme was body image – how we think and feel about our bodies. Our thoughts and
chain Zizzi, who hope to raise £1m for the • Agilent feelings about our bodies can impact us throughout our lives, affecting the way we feel
Foundation in a three-year partnership. about ourselves and our mental health and wellbeing.
• Brakes
At the core of our partnership with Zizzi During the week we hosted a parliamentary reception to raise awareness of our research
• XPS Group PLC report and policy asks among influential stakeholders and policy makers, including the
is the opportunity for every customer to
donate 25p to the Foundation as part every • Manolo Blahnik International Minister for Mental Health, Inequalities and Suicide Prevention. The report helped lead to a
card transaction, working with Pennies, the parliamentary inquiry into reality TV, Scottish governmental action and a meeting with the
• 3MonkeysZeno
digital charity box. Advertising Standards Authority.
• Brookfield We also launched a new body image module as part of our Peer Education Project, which
This feature went live in October 2019
• Pen Underwriting teaches young people in schools all about mental health, and shared 13 personal stories
and we have already had over 160,000
across the week bringing a new level of authenticity and warmth to our content.
donations this way – each one an • BMS Group
opportunity to bring the charity to a new There was four times as much media presence as last year, and ten times as much as a
• Autotrader few years ago, and major broadcasters supported the week – BBC/ITV, and The Guardian
person who could benefit.
• The Yogscast published a mental health supplement.
• Gatenby Sanderson Scottish Mental Health Arts Festival World Mental Health Day (WMHD)
• Gallagher Group (Glasgow) (SMHAF) How do we help people to feel hopeful about
Now in its 13th year, the Scottish Mental preventing suicide? That’s what we asked
• Morton Mortgages
Health Arts Festival is one of Scotland’s ourselves in the run-up to World Mental
• Hearst Group biggest and most diverse cultural events, Health Day on 10th October 2019, the
• Nielsen encompassing film, theatre, literature, visual theme of which was suicide prevention.
art, music, dance, storytelling and creative To show people how they can personally
• Zizzi workshops. Its unique approach ensures help with suicide prevention we produced a
• Interstate Hotels Group it connects with audiences that other arts ‘WAIT’ graphic and unveiled it at our ‘human
festivals often struggle to reach. green ribbon’ event in London’s Trafalgar
• Travel Weekly
The annual festival that we lead took place Square, on World Mental Health Day.
• Withers LLP in May as part of MHAW, with over 300 In Wales and Scotland, we marked
events across Scotland exploring the theme World Mental Health Day by projecting
of ‘Connected’. giant images of the green ribbon onto
This year the festival featured events prominent buildings in Cardiff and Glasgow
with asylum seekers, travellers, the LGBT respectively.
community, and families affected by suicide In Glasgow, the projections included
and other traumatic events, in a wide- messages about suicide awareness and
ranging programme that focused on the prevention.
importance of staying connected to each
other, and the impact of isolation on our
mental health.
20 21Fundraising &
OUR YEAR IN NUMBERS communications
D I G I TA L T R A N S F O R M AT I O N
Digital Transformation
over over Our new strategy requires our digital audience to grow from four to eight
40,000 15
million, our social community to grow to one million and total income to
stabilise at £13m, underpinned by sustained digital income.
To support this, we have created a strategic roadmap for digital to
programmes working with articulate what role it plays today, and the role it needs to play in delivering
Direct programme beneficiaries
vulnerable populations the Foundation’s new strategy. By describing our digital ambition and
establishing high-level objectives and goals for digital, we will have a better
sense of what direction we need to take, how we should do this, and what
our priorities will be (including a new website in 2021).
773 Supporters fundraising for us at events
81,332
Publications sold
131k
Green
1,996
Cash gifts
ribbons sold received
5,972,859 Website hits
23Financial review FINANCIAL REVIEW
(continued)
FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2020
The Foundation recorded a surplus of £6.1m compared to £4.5m the previous year. Expenditure – £6.5m (2019: £5.6m)
Income – £12.6m (2019: £10.1m) Due to the unprecedented increases in The total expenditure increase of £0.9m was principally due to the increased activity of
unrestricted income, restricted income
10+2412522D
The growth in the Foundation’s income the subsidiary Mental Health at Work CIC as they increased their output combined with
was only 12% of total income in the current increased investment into our information, education, dissemination and advisory service
was mainly due to the substantial increase
financial year, down from an average of programmes.
in digital fundraising income which grew
30% across the preceding 5 years.
to £5.8m (£5.2m after adjusting for The split of overall expenditure areas of the Foundation for 2020 and 2019 are shown
the under accrual from 2018/19). This However, the Foundation still recognises below.
growth continues to reflect the increased the importance of this income stream and
importance of mental health and in hence we maintain good relationships with Raising funds 22% MHAW CIC 10%
particular the Foundation’s approach of all of our grant funders.
prevention. FPLD (Learning
The split of overall income streams of the
Legacies again provided a significant Foundation, from the average for 2014- Information, education, £6.5m Disabilities) 2%
dissemination and advisory
income stream (£1.8m) with £1.25m of 2018, through 2019 to the current year can 25% Mental Health
this coming from the extremely generous be seen below and shows the significant 2020 programmes 41%
bequeathment of Stephen Schick (£2.5m impact of digital fundraising in the current
was received in the previous financial year). year and legacies across the last two years.
Whilst our digital fundraising income
especially has driven the notable increase in
income overall, other areas of fundraising, MHAW CIC 2%
events and individual giving especially, Raising funds 26%
continue to deliver important revenue FPLD (Learning
£12.6m Disabilities) 3%
streams.
45+242623D
Information, education,
dissemination and advisory
£5.6m
£10.1m
Other 24% Mental Health
programmes 45%
2019
Legacies
Grants
£4.9m
INCOME Digital fundraising
DEVELOPMENT Staff costs increased by 24% driven by the same increase in employees as we continue to
Donations invest in our staff base to drive forward our new five year strategy.
2014 - 2020 £m
2014-2018 average 2019 2020
24 25FINANCIAL REVIEW FINANCIAL REVIEW
(continued) (continued)
Balance Sheet be no less than three months expenditure 1. Office Purchases Fund £5.5m Investment Policy
Net Assets £13.3m (2019: £7.2m) and therefore this is a more than adequate Currently the Foundation leases offices
In light of the extremely generous donations
level of reserves. in all three of our locations which leads
The growth in the Net Assets is mainly we have had over the last two years, which
to high on-going operations costs. The
reflected in the increase in cash balances However, the trustees have decided that have given us significant surplus’ and
Foundation has identified that we want
of £8.6m due to the continued generous the Foundation should hold a specific hence a cash balance far in excess of what
to move to offices that provide better
unrestricted donations which is partially amount in readily available cash reserves is required under the reserves policy, the
working environments and have decided
offset by the decrease in debtors of £2.1m, due to the potentially uneven receipt of trustees have decided that an element of
we should look to see if purchasing
principally due to legacy accruals (£2.8m). funds from legacies and any other short- these should be invested.
property would be the right option,
term cash necessity.
The total net assets are represented by in terms of having an asset that will The rationale for this is that trustees have a
unrestricted funds of £2.3m, restricted As a result, in addition to a target of secure its long term future, whilst taking duty to use the charitable assets to further
funds of £1.0m, designated funds of minimum reserves the trustees have account of potential changes to office the charity’s aims, which in the case of
£10.0m, and permanent endowment funds decided to set a target level of cash working post-COVID-19. financial investments will usually involve
of £45k which are to be held indefinitely by reserves equal to at least three months’ seeking the maximum return consistent
2. COVID-19 Community Investment
the charity. total expenditure based on liquid funds with commercial prudence whilst ensuring
Fund £2m
available for immediate use, this equates to a diversified portfolio.
The impact of COVID-19 upon the
£1.5m.
public’s mental health is profound and Therefore, the trustees have decided that
Reserves policy
Whilst the trustees recognise that the unequal. The Foundation has decided a mixed portfolio of property, investment
Charities hold reserves for a variety of Foundation’s general reserves and cash to invest £2m of its reserves over the fund(s) and cash is suitable for the
reasons - to manage the charity’s resources reserves, £12.1m as of 31st March 2020, next 2 years to support communities Foundation.
where income is subject to uncertainty in are currently significantly above their directly and disproportionately The selected investment fund needed to
terms of timing, to ensure that the charity reserves policy, they anticipate that based affected. The focus of this investment be in line with the Foundation’s aims, whilst
has sufficient financial resources to meet its on the planned designed fund usage, is in programmes (interventions) whilst providing a good risk/return profile.
upcoming liabilities, and to provide funds detailed below, these will be used during ensuring close links between the other
which enable the charity to take advantage the strategy period, whilst enabling the major areas of the Foundation’s work Based on this the CCLA Charities Ethical
of new investment opportunities when they Foundation to manage any impact from the (policy, research, communications and Investment Fund https://rebrand.ly/ccla-
arise. coming period of economic uncertainty fundraising). ethical-investment was selected and up
highlighted above. to £5m invested during the financial year
In addition, given the forecasted impact 3. Stephen Schick – Resourcing the 2020-21 based on current forecasts.
of the COVID-19 pandemic and the UK’s Strategy Fund £2.5m
exit from the EU, revenue streams could be With the implementation of the
Designated Fund Allocation
under significant pressure going forward, new strategy from 2020-2025, it
hence, a higher than usual reserve level will The Foundation is in the fortunate position has been identified that we need to
ensure we have stability for the coming that we are able to allocate recent surplus’ invest in the Foundation to achieve
years. to specific designated funds which the strategic aims. Therefore, we have
will secure the long-term future of the set aside £2.5m, which was from the
As noted above, the level of unrestricted
Foundation as well as being able to further Stephen Schick Legacy to finance the
reserves at 31 March 2020 was £2.3m.
the strategic objectives of the Foundation. strengthening regional presence of the
This represents about 4.3 months of
unrestricted expenditure. The trustees Therefore, the designated funds have been Foundation across the UK, to invest in
estimate that the charity’s reserves should allocated to the following three areas: fundraising, to develop programmes at
scale, and to ensure the future financial
and cultural sustainability of the
Foundation.
26 27Structure, STRUCTURE, GOVERNANCE
AND MANAGEMENT
governance & (continued)
management
Constitution Trustee recruitment and appointment Company law requires the trustees to The trustees are responsible for keeping
The Mental Health Foundation is The recruitment of trustees is carried out prepare financial statements for each proper accounting records that disclose
constituted as a company limited by by the Governance Committee which financial year which give a true and fair with reasonable accuracy at any time
guarantee, Company Registration No. recommends individuals to be appointed view of the state of affairs of the charitable the financial position of the charitable
2350846 (England and Wales), and is a by the Board as a whole. New trustees company and the group and of the income company and enable them to ensure that
registered charity, Charity Registration are sought through a number of different and expenditure of the charitable company the financial statements comply with
Nos. 801130 (England and Wales) and SC routes - from time to time trustee posts and the group for that period. the Companies Act 2006. They are also
039714 (Scotland). may be advertised. In preparing these financial statements, the responsible for safeguarding the assets
The Group’s subsidiary, Mental Health At trustees are required to: of the charitable company and the group
Work CIC, is a company limited by shares, Trustee induction and training and hence for taking reasonable steps for
• select suitable accounting policies and
Company Registration No. 10473373 the prevention and detection of fraud and
New trustees’ induction is carried out by then apply them consistently;
(England and Wales). other irregularities.
the chair and chief executive and they are • observe the methods and principles in
additionally invited to spend time with any Each of the trustees confirms that:
Accounting and Reporting by Charities:
Members’ liability department of the Foundation in which Statement of Recommended Practice • so far as the trustee is aware, there is no
In the event of the charitable company they are interested. Training is provided as applicable to charities preparing their relevant audit information of which the
being wound up during the period of required. accounts in accordance with the charitable company’s auditor is unaware;
membership or within the year following, Financial Reporting Standard applicable and
company members are required to Trustee Meetings in the UK and Republic of Ireland (FRS • the trustee has taken all the steps that
contribute an amount not exceeding £1. The trustees must hold at least four Board 102); he/she ought to have taken as a trustee
meetings each year. In addition, the Board • make judgements and estimates that are in order to make himself/herself aware
Trustees has four sub-committees which usually reasonable and prudent; of any relevant audit information and to
meet quarterly: Finance & Resources, establish that the charitable company’s
The trustees constitute directors of the • state whether applicable United
Fundraising & Communications, Delivery & auditor is aware of that information.
charitable company for the purposes of Kingdom Accounting Standards have
the Companies Act 2006 and are also Development and Governance. been followed, subject to any material This confirmation is given and should
members of the charitable company. departures disclosed and explained in be interpreted in accordance with the
the financial statements; and provisions of s418 of the Companies Act
Trustees are appointed for an initial Statement of trustees’ responsibilities
2006.
three-year term and may be re-elected The trustees (who are also directors of the • prepare the financial statements on
for a further two three-year periods. In the going concern basis unless it is The trustees are responsible for the
Mental Health Foundation for the purposes
exceptional circumstances the board may inappropriate to presume that the maintenance and integrity of the corporate
of company law) are responsible for
resolve that a trustee may serve one further charitable company will continue in and financial information included on the
preparing the trustees’ report and financial
term of a maximum of three years. At any operation. charitable company’s website. Legislation
statements in accordance with applicable
one time there must be a minimum of three in the United Kingdom governing the
law and United Kingdom Accounting
trustees preparation and dissemination of financial
Standards (United Kingdom Generally
statements may differ from legislation in
Accepted Accounting Practice).
other jurisdictions.
28 29STRUCTURE, GOVERNANCE
STRUCTURE, GOVERNANCE
AND MANAGEMENT
AND MANAGEMENT
(continued)
(continued)
Management arrangements Remuneration policy Projects are delivered through a either have been, or will be, taken in
The trustees delegate the management The Mental Health Foundation is combination of in-house and external mitigation.
of the Foundation to the staff team led committed to ensuring a fair and equal research, practice development, The on-going impact of COVID-19 has
by the chief executive and the senior remuneration process for all staff so publications and other dissemination changed the nature of some risks and
management team (SMT). The chief that we can ensure all staff are paid activities. Projects are supported by highlighted new ones. Some of these risks
executive has been in place since October appropriately for the work they do for us. advisory committees of experts, if required. have been more short-term in nature,
2018 and the full current SMT has been in The key management personnel of the The Foundation has well-developed links e.g. how we move overnight from an
place since January 2020. charity comprise the trustees and the with central government, the Scottish organisation that is office based to one
senior management team (SMT). The and Welsh governments, health, local that is remotely based and are being
Appointment policy overall responsibility of the charity lies with government, housing and social services managed, whilst others will prove to be
The Mental Health Foundation is an the trustees who have delegated the day- bodies across the United Kingdom, as well more enduring. The Foundation is in
equal opportunities employer and applies to-day management of the charity to the as professional bodies, academic research the fortunate position that the impact
objective criteria to assess merit. It ensures SMT. centres and voluntary sector organisations. on income felt by so many of our peer
that no job applicant or employee receives Responsibility for setting salaries for the It is committed to partnership work organisations has not been felt in the same
less favourable treatment on the grounds CEO and members of the SMT rests with wherever this will maximise effectiveness way so the need for short-term financial
of age, race, colour, nationality, religion, the trustees; responsibility for setting other and impact. business continuity adjustments has not
ethnic or national origin, gender, marital salaries has been delegated to the SMT and The Foundation has working relationships be necessary, although we will continue to
status, sexual orientation or disability. CEO. with many organisations, as described monitor this going forward.
Selection criteria and procedures The Foundation implemented a pay and above. These are carefully curated in order The principal risks currently facing the
are reviewed regularly to ensure that benefits system in 2016 which provides to add value to the nature and content of organisation are:
individuals are appointed and promoted a clear structure for salaries for new the programmes as effectively as possible.
• Reputation and trust, including GDPR
on the basis of their relevant merits and appointments and for salary progression and fundraising regulation contravention
abilities. for existing staff as well as clear criteria Risk management and other legal claims
for evaluating and benchmarking new and The senior management team takes the
• Failure to ensure the health and
Wellbeing, Diversity and Inclusion changing roles for equitable pay. lead in reviewing the key risks facing the
wellbeing of employees especially during
The Foundation is dedicated to the holistic Mental Health Foundation on a regular
the COVID-19 crisis but also relating to
wellbeing of colleagues and provides both Pension arrangements basis, after considering input from across
wider issues and beyond
traditional and bespoke support for staff The Foundation operates a non- the organisation. These are documented
such as an employee assistance scheme in a risk register, which is reviewed by the • Failure to deliver on the new strategic
contributory individual money-purchase
and in-house training for managers on finance and resources committee and plan
scheme for all eligible members of staff,
mental health in the workplace. We are contributing 10% of pensionable salary approved by the trustees at least annually. • A vulnerable person is exploited or
deepening our understanding of how to to each employee’s fund. Employees can The risk register is updated to reflect harmed
fully embrace and celebrate all differences additionally choose to make employee recent operational and financial The plans and strategies for managing
in our people and striving to create a contributions to their pension. The scheme developments, strategic annual these risks are:
sense of real belonging. A staff-informed is fully compliant with auto-enrolment organisational objectives, and changes in • Comprehensive induction process
process of continuous improvement is at regulations. the external environment. Each risk item where all staff are trained on all legal
the heart of developing action plans that is analysed according to its perceived requirements and the Foundation’s
demonstrate these commitments and potential impact and likelihood of values. Enhanced cybersecurity
we have recently signed up to the race at occurrence, together with actions that processes including information security
Work Charter and the Disability Confident
Project delivery
Scheme.
30 31STRUCTURE, GOVERNANCE
AND MANAGEMENT
(continued)
policies and procedures and advanced been strengthened in the leadership
email protection. team within the organisation but also
• Communication to and feedback from by the recruitment of a number of new
staff on plans and strategies during the trustees
COVID-19 pandemic. Review of what • Throughout the year as the
provisions employees need with the new understanding of the important
working arrangements. As offices have digital fundraising revenue stream has
been reopened full risk assessments, developed, we have ensured we are
consultation and implementations plans engaging with donors and understanding
have been in place. how we can try and sustain this for the
• Regular review by the senior long term.
management team and trustees of •
progress against the strategic plans. The trustees have confirmed that there
Clear identification of internal and are procedures in line with key risks
external risks and issues as they arise and other identified risks to prevent or
and flexibility of approach. Careful manage their effects. These procedures
communications strategy with include implementation of control systems
contingency arrangements. and processes throughout the entire
• Our safeguarding policy includes organisation, the transfer of risk to external
provision for a designated safeguarding insurers, and the management of risks that
officer who has responsibility for cannot be avoided.
ensuring all staff who have contact with
vulnerable adults and children are aware
Approved by and signed on behalf of the
of their responsibility under the policy
trustees
and the law.
Relating to the principal risks listed last
year these are the main actions the charity
has taken:
AISHA SHEIKH-ANENE
• The new five-year strategy has been
implemented following staff and other Chair of Trustees
stakeholder consultation including the
vision and mission and our new aims and
values. Image: As part of our World Mental Health Day events, we formed a ‘human green ribbon’ in Trafalgar Square
• The stewardship of the Foundation has
32Independent INDEPENDENT AUDITOR’S REPORT
auditor’s report (continued)
OPINION TO THE TRUSTEES AND MEMBERS OF THE MENTAL HEALTH FOUNDATION
We have audited the financial statements Basis for opinion Other information Opinions on other matters prescribed by
of the Mental Health Foundation (the
We conducted our audit in accordance the Companies Act 2006
The trustees are responsible for the
‘charitable parent company’) and its
with International Standards on Auditing other information. The other information In our opinion, based on the work
subsidiary (the ‘group’) for the year ended
(UK) (ISAs (UK)) and applicable law. Our comprises the information included in undertaken in the course of the audit:
31 March 2020, which comprise the group
responsibilities under those standards the Annual Report and Consolidated
statement of financial activities, the group • the information given in the trustees’
are further described in the auditor’s Financial Statements, other than the
and charitable parent company balance report, which is also the directors’
responsibilities for the audit of the financial financial statements and our auditor’s
sheets, the group statement of cash report for the purposes of company law
statements section of our report. We are report thereon. Our opinion on the financial
flows, the principal accounting policies and includes the strategic report, for
independent of the group in accordance statements does not cover the other
and the notes to the financial statements. the financial year for which the financial
with the ethical requirements that are information and, except to the extent
The financial reporting framework that statements are prepared is consistent
relevant to our audit of the financial otherwise explicitly stated in our report,
has been applied in their preparation with the financial statements; and
statements in the UK, including the FRC’s we do not express any form of assurance
is applicable law and United Kingdom • the trustees’ report including the
Ethical Standard, and we have fulfilled our conclusion thereon.
Accounting Standards, including Financial strategic report has been prepared
other ethical responsibilities in accordance
Reporting Standard 102 ‘The Financial In connection with our audit of the financial
with these requirements. We believe that in accordance with applicable legal
Reporting Standard applicable in the UK statements, our responsibility is to read
the audit evidence we have obtained is requirements.
and Republic of Ireland’ (United Kingdom the other information and, in doing so,
sufficient and appropriate to provide a
Generally Accepted Accounting Practice). consider whether the other information is
basis for our opinion.
materially inconsistent with the financial Matters on which we are required to report
In our opinion, the financial statements:
Conclusions relating to going concern statements or our knowledge obtained by exception
• give a true and fair view of the state in the audit or otherwise appears to be
We have nothing to report in respect of the In the light of the knowledge and
of the group’s and of the charitable materially misstated. If we identify such
following matters in relation to which the understanding of the group and the
parent company’s affairs as at 31 March material inconsistencies or apparent
ISAs (UK) require us to report to you where: charitable parent company and its
2020 and of the group’s income and material misstatements, we are required
expenditure for the year then ended; • the trustees’ use of the going concern to determine whether there is a material environment obtained in the course of
basis of accounting in the preparation misstatement in the financial statements the audit, we have not identified material
• have been properly prepared in misstatements in the trustees’ report
of the financial statements is not or a material misstatement of the other
accordance with United Kingdom including the strategic report.
appropriate; or information. If, based on the work we
Generally Accepted Accounting
Practice; and • the trustees have not disclosed in the have performed, we conclude that there We have nothing to report in respect of the
financial statements any identified is a material misstatement of this other following matters in relation to which the
• have been prepared in accordance with information, we are required to report that Companies Act 2006 and the Charities
material uncertainties that may cast
the requirements of the Companies fact. Accounts (Scotland) Regulations 2006 (as
significant doubt about the group’s or
Act 2006, the Charities and Trustee amended) requires us to report to you if, in
the charitable parent company’s ability We have nothing to report in this regard.
Investment (Scotland) Act 2005 and our opinion:
to continue to adopt the going concern
regulation 8 of the Charities Accounts
basis of accounting for a period of at
(Scotland) Regulations 2006 (as
least twelve months from the date when
amended).
the financial statements are authorised
for issue.
34 35INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT
(continued) (continued)
USE OF OUR REPORT
• proper and adequate accounting preparation of financial statements that are A further description of our To the fullest extent permitted by
records have not been kept by the free from material misstatement, whether responsibilities for the audit of the law, we do not accept or assume
charitable parent company, or returns due to fraud or error. financial statements is located on the responsibility to anyone other than the
adequate for our audit have not been Financial Reporting Council’s website at charitable company and the charitable
In preparing the financial statements,
received from branches not visited by www.frc.org.uk/auditorsresponsibilities. company’s members as a body, for our
the trustees are responsible for assessing
us; or This description forms part of our audit work, for this report, or for the
the group’s and the charitable parent
auditor’s report. opinions we have formed.
• the charitable parent company financial company’s ability to continue as a going
statements are not in agreement with concern, disclosing, as applicable, matters This report is made solely to the
the accounting records and returns; or related to going concern and using the charitable company’s members, as a
going concern basis of accounting unless body, in accordance with Chapter 3 of
• certain disclosures of trustees’
the trustees either intend to liquidate the Part 16 of the Companies Act 2006
remuneration specified by law are not
group or the charitable parent company and to the charity’s trustees as a body,
made; or
or to cease operations, or have no realistic in accordance with Section 44(1)(c) of Amanda Francis
• we have not received all the information alternative but to do so. the Charities and Trustee Investment Senior Statutory Auditor
and explanations we require for our (Scotland) Act 2005 and Regulation
audit; or 10 of the Charities Accounts (Scotland) For and on behalf of Buzzacott LLP,
Auditor’s responsibilities for the audit of Regulations 2006. Statutory Auditor
• the trustees were not entitled to
the financial statements 130 Wood Street
prepare the financial statements in Our audit work has been undertaken
accordance with the small companies Our objectives are to obtain reasonable so that we might state to the charitable London
regime and take advantage of the small assurance about whether the financial company’s members those matters EC2V 6DL
companies’ exemptions in preparing statements as a whole are free from we are required to state to them in
the trustees’ report and from the material misstatement, whether due to an auditor’s report and for no other Buzzacott LLP is eligible to act as an
requirement to prepare a strategic fraud or error, and to issue an auditor’s purpose. auditor in terms of section 1212 of the
report. report that includes our opinion. Companies Act 2006.
Reasonable assurance is a high level of
assurance, but is not a guarantee that
Responsibilities of trustees an audit conducted in accordance with
As explained more fully in the trustees’ ISAs (UK) will always detect a material
responsibilities statement, the trustees misstatement when it exists. Misstatements
(who are also the directors of the charitable can arise from fraud or error and are
company for the purposes of company considered material if, individually or in
law) are responsible for the preparation the aggregate, they could reasonably
of the financial statements and for being be expected to influence the economic
satisfied that they give a true and fair view, decisions of users taken on the basis of
and for such internal control as the trustees these financial statements.
determine is necessary to enable the
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