The Sanctuary trustees Report and accounts 2012 “I love everything about donkeys. They are noble, hard-working and loyal animals and yet at the same time humble. They have served mankind in so many ways for so long, asking very little in return. It pains my heart to know they are open to abuse.” Anna Reinbergen, supporter.

Trustees Report The Trustees present their report together with the audited financial statements of for the year ended 31 December 2012. The financial statements have been prepared according to the accounting policies section of the accounts and comply with current statutory requirements, the charity’s governing document and the Statement of Recommended Practice - Accounting and Reporting by Charities (issued in April 2005).

Our Work and Achievements in 2012 and Strategy for 2013 The following pages provide some of the highlights of our activities in 2012, our strategy for 2013 together with our thanks to our supporters who help us in so many different ways.

2 Our work and Achievements in 2012 and Strategy for 2013

Contents

Trustees Report Our Work and Achievements in 2012 and Strategy for 2013 Donkey Sanctuary facts and statistics (Pages 4 - 5) Message from the Chief Executive (Page 7) Rescue and Rehoming (Pages 8 - 9) Donkeys in the Community (Pages 10 - 11) Donkey Assisted Therapy (Pages 12 - 13) Veterinary Excellence (Pages 14 - 15) The Future: The Donkey Sanctuary’s Strategy for 2013 (Pages 16 - 17) Thank you (Pages 18 - 21) Financial Summary (Pages 22 - 23) Structure, Governance and Management (Page 24) Statement of Trustees Responsibilities (Page 30) Auditor’s Report (Pages 31 - 32) Consolidated Statement of Financial Activities (Page 33) Balance Sheets (Page 34) Consolidated Cash Flow Statement (Page 35) Notes to the Consolidated Financial Statements (Pages 36 - 65) Reference and administrative details (Page 66)

3 DONKEY SANCTUARY FACTS AND STATISTICS

27 project countries worldwide The Donkey Sanctuary supports projects to relieve the suffering of donkeys and mules in 27 countries worldwide; including sanctuaries across Europe and major projects in , , , and Mexico.

15,500 donkeys 5,500 donkeys and and mules provided mules currently in with a sanctuary for care at sanctuaries life over the last 44 and foster homes in years. the UK, Ireland and mainland Europe.

200,000 visitors 1,500 donkeys in each year to The caring foster homes. Donkey Sanctuary’s headquarters in .

4 46,000 Donkey 6 Donkey Assisted 530 volunteers Assisted Therapy Therapy Centres giving The Donkey Sessions held for open seven days a Sanctuary the children and adults week in Sidmouth, precious gift of time. with additional needs. , Birmingham, Manchester, Leeds and Belfast.

1,000,000 25 overseas mobile 5 overseas donkeys within reach teams working clinics providing of our international to alleviate the hospitalisation to sick projects every year. suffering of sick and injured donkeys. and injured donkeys through veterinary care and preventative treatment and working in partnership with donkey-owning communities to help them deliver better 5 care themselves. 6 MESSAGE FROM THE CHIEF EXECUTIVE

I would like to open by saying a big big thank you to all of our supporters and sponsors for their fantastic support during 2012. Despite the ongoing poor economic climate your continued generosity has resulted in The Donkey Sanctuary achieving its highest ever annual income total and consequently we have expended even more on our work worldwide. We had entered 2012 with some uncertainty. It was the first full year without our beloved founder, Dr MBE, who had sadly passed away the previous May; we had merged our smaller sister charity the Elisabeth Svendsen Trust for Children and Donkeys (EST) into The Donkey Sanctuary; the economy was poor and the survival of the Euro appeared in jeopardy. Yet despite all these concerns we were able to carry out all of our planned activities and in fact we feel confident enough about the future to expand our operations internationally. In summary our income for the year was £27.1 million, up £1.3 million (5%) on 2011 on a like for like basis. Our expenditure was £26.3 million versus £24.3 in 2011, with only 14 pence in the pound being spent on fundraising and governance. rewarding work of donkeys improving the lives of and Unfortunately in Ireland we continue to see a bringing so much enjoyment to children and adults with large number of donkeys being abandoned mainly by additional needs. The donkeys also benefit from the unscrupulous breeders and dealers. Whilst we still have activity they so obviously enjoy. some space to take in donkeys and mules in need it is Now entering a sixth year of economic hardship we getting tougher as this poor economic climate continues. have come to the conclusion that it is going to remain This has resulted in a push during 2013 to increase the difficult for some years to come and that our strategy number of donkeys going out to loving foster homes. going forward must recognise this. At the same time Surprisingly the number of donkeys relinquished to us on we look to expand our operations internationally, in an the continental European mainland has remained lower effort to grow our sphere of influence as the Centre of than expected. Excellence for donkeys and mules around the world. In Throughout 2012 we worked either directly, or with some areas we are also looking into how we can enhance like minded animal welfare partners, in 27 countries the value of the donkey by introducing donkey assisted around the world, most in the developing nations. Within therapy activities for children and adults with additional our own projects we reached over 400,000 donkeys needs in countries where severe hardship is already a through our fixed base and mobile veterinary clinics major part of everybody’s life. We do believe that donkey and through our community education programme we numbers being relinquished to us in the now believe that we reach areas where circa 1,000,000 and the rest of Europe will start to diminish as was seen donkeys can be found. All of our veterinary interventions in 2012 and was the experience prior to the economic and community education activities are treated as downturn that started towards the end of 2007. This will a teaching opportunity to veterinarians, veterinary enable us to concentrate on many more of the 50 million students, owners, handlers, children and the community plus donkeys and mules in need around the world. in general. We could not carry on helping hundreds of thousands Specific focus is being given to harnesses and harness of donkeys and mules worldwide each year without your making, hoof care and equine dentistry. The correct continued support and generosity, for which all of us here attention in these three areas alone can significantly at The Donkey Sanctuary sincerely thank you. We know improve the life of the donkeys and through this the lives it is all worthwhile when we read your letters, emails and of their owners and handlers. Facebook and Twitter comments and when others in The integration of the formerly named EST into the the world of animal welfare give you recognition for the work of the charity went very smoothly. We renamed contribution you make to improve the lives of animals the activities at the six centres in the United Kingdom worldwide. This was demonstrated recently when The “donkey assisted therapy” and rebranded each centre: Donkey Sanctuary was awarded the Carole Noon Award The Donkey Sanctuary – assisted therapy unit. All are for Sanctuary Excellence by the Global Federation of open seven days a week to the public, to enable people Animal Sanctuaries, the first time awarded to a United not only to visit the donkeys, but also to see the very Kingdom charity. Thank you so much. 7 RESCUE AND Case study 1: REHOMING Mules

Giving unwanted, neglected and abandoned donkeys the lifelong care they need At our farms and holding bases across the UK, Ireland, , , , , , and , donkeys and mules impacted by the economic crisis needed our help on an unprecedented scale in 2012. The trend of extensive abandonments in Ireland continued unabated, with donkeys left to fend for themselves on waste ground, roadsides and in industrial estates. Sadly the theme of donkeys being ‘surplus to requirement’ was reflected throughout Europe and the UK, with owners no longer able to care for their animals having no one to turn to but The Donkey Sanctuary. As a result we took a further 700 donkeys into our care this year, which presented a significant challenge, not least in terms of finding space to house them! We were forced to be creative, converting storage barns into donkey housing on our UK farms; no mean feat during Sophie Carter, with Ballymac the mule. the wettest summer the UK has seen in 100 years. Meanwhile in Spain we created two new Isolation Units to accommodate and rehabilitate the continuous flow Mules are so often misunderstood as stubborn, of new intakes who had frequently been traumatised by aggressive or unpredictable - but here at The Donkey neglect and abuse. Sanctuary we have come to love them, following over Happily, despite recession, storms, floods and even twenty years of getting to know them at our farm in a fire at our Cyprus sanctuary, we were able to care for Tedburn St Mary. In 2012 we took care of over 130 5,500 donkeys and mules throughout Europe in 2012, mules who would otherwise have been homeless, and and give a further 1,500 donkeys homes with caring the farm staff there have come to understand and value foster owners. these creatures’ sensitivity, intelligence and character. That said we also have a healthy respect for their individuality – football helmets and body padding have come to play a key role in training the animals to accept veterinary care and grooming! “Mules are challenging yet rewarding creatures to work with. They teach you the art of patience...... and once you have learnt this they let you in to their way of thinking.....Only then will they reward you with their trust. It’s well worth the wait!” Town Barton Mule Behaviour Trainer, Sophie Carter.

8 Case study 2: Case study 3: Fostering rescue - Betty

Pupils from St Edwards C of E School with Maco and Joop.

The Donkey Sanctuary’s fostering scheme is one of When our welfare officer accompanied an RSPCA officer our most important initiatives. Donkeys and mules are on a complaint following a tip off from a member of bright, inquisitive and playful creatures, and whilst we do the public, they found Betty in pain and alone, with no our best to keep them happy and engaged on our farms, access to shelter or water. Her hooves were extremely we know that they are best served by becoming part overgrown, and she was suffering with an infestation of of a family, receiving as much one on one attention as lice and painful rainscald. The RSPCA removed Betty possible. on welfare grounds and immediately signed her over to In 2012 Joop and Mary were fostered by St Edwards The Donkey Sanctuary, but for a while we feared that C of E School in Rochdale. The lives of both donkeys and her trauma would prevent her from ever being truly well children have been transformed as a result. again. Thankfully over the last nine months, thanks to Headteacher Lynne Coxell said: “Fostering Joop the loving care and expertise of our grooms and vets, and Maco is one of the best things the school has Betty has made a full recovery. Only seven years old we ever done. Not only does the animal contact help the hope she is at the beginning of a long and happy life. children learn and understand about empathy and the She is now ensured sanctuary for the rest of her days environment, but spending time with the donkeys is under our care; either in one of our farms, or if she is incredibly therapeutic for both staff and pupils. The especially lucky, with suitable foster owners. donkeys are so popular that we have no shortage of volunteers to groom and walk them each morning before school and even at weekends! Joop and Maco are a fantastic asset to our school and the children’s lives and we all love looking after them.”

9 DONKEYS IN THE COMMUNITY

With the current economic downturn hitting the developing world with devastating consequences, the work of our International Team was more pivotal than ever to donkey owning communities around the world this year. In the course of 2012, we reached over a million donkeys and mules via our permanent and mobile clinics, and community education programmes. It would be impossible to list all of the teams’ activities, but here are a few selected highlights. Our harness making workshops continue to make a dramatic difference to working donkeys across our major project countries. In Kenya in 2012 we took this concept even further, where in Nairobi, four donkey owners who had attended a harness training course in 2010, helped us to provide training to a further 24 owners. By training donkey owners to become experts in harness making and other important welfare issues, we are able to reach and save many more donkeys than if we were to depend on direct influence alone. In Ethiopia we have introduced, the community and schools education programme to influence owners and users to care better for their donkeys. It includes a variety of initiatives such as self-imposed legislation to restrict donkeys’ working hours and empathy development which are now incorporated into school exams. In Egyptian brick kilns good harness making became more widespread, as owners began to see the benefit of maintaining healthy, wound-free donkeys thanks to our harness workshops and welfare clinics over previous years. Meanwhile in rural communities in Egypt, owners continued to respond positively to the teams’ participatory educational approach. We met one young boy in Oussem who still had a leaflet from a school donkey welfare class three years earlier. He continues to handle his donkey gently and encourages his friends to do the same. In India, we trained donkey owners to identify and treat common illnesses themselves; preparing them to receive and use basic medical kit boxes like those we had installed in brick kilns in and around Ahmedabad. In 2012 we extended our reach to Bijapur, nearly 100km from our project in Solapur. Training of this kind is extremely important, especially after identifying that colic is a major concern in the area. In September the Solapur team conducted an in-depth session on the causes, prevention and treatment of colic with the local community. In 2012 The Donkey Sanctuary’s international teams worked either alone or in partnership with others in 27 countries around the world, and all our projects are vital to the lives of donkeys and the people who rely on them for their survival. Whilst working conditions can be challenging, and the problems we see or experience difficult to witness, every day we feel privileged to help these hard working donkeys, along with the people who depend on them so heavily.

10 Case study 1 Case study 2 Bullo reaching out in Romania

Bullo with Woyessa and his family. Misu recuperating, following the attack.

Bullo is a highly valued member of his Ethiopian There are an estimated 30,000 donkeys in Romania, the family, and it is thanks to ongoing Donkey Sanctuary majority of which are working donkeys, assisting their community education that he is viewed this way. His owners with vital farming and transport tasks. We run a owner, Woyessa, was one of the first donkey owners mobile veterinary service to help them, which goes out of his village to accept the advice of the Sanctuary. every week from our Cernavoda refuge. Veterinary care He is now the charity’s voluntary donkey-welfare club here is very hard to access and without the support of leader for his village, which has a population of about our mobile clinic these donkeys would almost definitely 180 working donkeys. He facilitates the Sanctuary’s receive no treatment at all. veterinary clinics at his homestead and provides training Two years ago our vets came across a donkey called to other owners including how to identify illness and Misu, who had tragically been stabbed behind his ears. disease, give simple treatments and improve pack saddles Misu’s owner Gheorghe was devastated. Misu was one and harnesses to reduce wounds. Woyessa and his family of the family to him, and is essential to their livelihood by have embraced a new way of caring for Bullo and as a selling cheese produced by a small number of goats that result he is a happy and healthy donkey. he keeps in the hills overlooking the Danube. Gheorghe explained that Misu brings food up the hill for the goats, saying “Without Misu we could not feed our animals. Without our animals, this family would starve.” Our vets have been checking Misu ever since they gave him his first desperately needed treatment for the damage to his head and ears, ensuring that his wounds are healed, his hooves are trimmed and his teeth are in good condition. Misu is now strong and healthy again, and Gheorghe and his family’s living is secure.

11 DONKEY ASSISTED DAT case study 1: THERAPY De-Shai’s story

In January 2012 The Donkey Sanctuary was delighted to bring into its family six Donkey Assisted Therapy Centres in Sidmouth, Ivybridge, Leeds, Manchester, Birmingham and Belfast through merging with its sister charity, The Elisabeth Svendsen Trust for Children and Donkeys. Over many years we had watched the incredible impact Donkey Assisted Therapy (DAT) can have both on people with additional needs, and the rescued donkeys who work with them and knew that by bringing the two operations even closer we could add strength to each other whilst at the same time saving on operational costs and resources. During 2012, the centres have given an astonishing 46,000 therapy sessions to children and adults with additional needs. They have also shared their expertise with our international teams to help them launch outreach DAT initiatives in Romania, Portugal, Spain and elsewhere. For example in Mexico, our team helped develop a Donkey Assisted Therapy pilot project in San Luis Tepulco in partnership with the Mexican Association of Animal Assisted Therapy (AMTAE), to help children improve life skills by improving their interaction with donkeys. It has been inspirational this year to witness the tangible benefits that therapy with our gentle and patient donkeys can bring. We look forward to a long and productive future of promoting the important role that De-Shai at our Birmingham Donkey these remarkable creatures can give to humans in need if Assisted Therapy Centre. given the opportunity. Our DAT centres are open to the public 7 days a week – so come and see for yourselves! De-Shai has become a regular and much-loved guest at The Donkey Sanctuary’s Assisted Therapy Centre in Birmingham. De-Shai was involved in an accident and tragically lost his left leg at the age of three. When he first arrived we wondered if he would ever be able to ride, because without his leg it seemed unlikely that he would be able to balance in the saddle; but our team found a way for De-Shai to sit on the donkeys. Whilst De-Shai still needed a lot of help and support, we were so pleased when his core strength, posture and head-control began to improve. Now, through his incredible hard work and determination, with the riding instructors at his side, De-Shai is not only riding on the donkey as it walks – but he loves trotting too! Amber, De-Shai’s riding instructor told us “De-Shai absolutely loves riding our donkeys. One of his favourite games is a hand-to-eye coordination activity where he rides over to a letter box in the arena, and, with the support of staff, guides a letter through the slot. We print off his favourite characters from the children’s channel Cbeebies and sing some of the theme music for him. He doesn’t really speak but he will give us such beaming smiles that we know he is having fun.”

12 DAT case study 2: Foster donkeys bring hope

We feel incredibly lucky to be able to work with and help children like De-Shai, and our gentle riding-therapy donkeys love our little visitors even more than we do. The charity’s Donkey Assisted Therapy activities are not limited to people with additional physical needs. Our donkeys also bring joy and solace to those who have suffered stress, trauma and social isolation; whether it be to children in Romanian orphanages, the elderly in residential homes, young people trying to find their way in life, or soldiers suffering from injuries and post traumatic stress.

Micheal Leatham with Dottie and Spud.

Vision of Hope is a centre in Wales helping young people get back on their feet after having a difficult start in life. The centre is also a fully-fledged foster home to six of our donkeys; Dottie, Shadow, Spud, Rosie, Parsley and Henry, who literally help turn people’s lives around. Like many residents at Vision of Hope, Micheal has taken part in our donkey care courses to hone his skills; so much so that he now manages the care of all the donkeys at the centre. This brings him great joy, confidence and pride. Spud, in particular became a saviour to Micheal whenever he needed to feel less alone. Micheal told us; “I can honestly say if it wasn’t for the donkeys, especially Spud, I wouldn’t be here today. They helped me so much in my life, helped me turn my life around from drugs and crime, so all I want is to help these humble animals.”

13 Veterinary Case study: Excellence Coco

Keeping Donkeys Happy and Healthy The Donkey Sanctuary prides itself on being the international centre for excellence in aspects of donkey and mule-related health; improving knowledge and practice in the veterinary care of these animals. Throughout 2012 we continued to be active in our role spreading best practice amongst veterinary establishments and practitioners all over the world. A key theme for the year was educating owners, vets, equine dentists and farriers in the differences between donkeys and other equines. Non-invasive research into donkey health and welfare was a primary focus this year as we continued to seek new solutions to issues and disorders that have a negative impact on donkeys and mules. To progress this objective in 2012, we developed a dedicated area on our website tailored for veterinary professionals to serve as an information resource for best practice and cutting edge research. Specific Donkey Sanctuary funded research projects in the year included a study in to sarcoids in our donkey herd in Italy, lice prevention and treatment, parasite control and management in the UK, Italy and Ethiopia, African horse sickness in Kenya, and trypanosomiasis in The Gambia. Alongside our programmes of academic research, we Coco recovering at Brookfield Farm. worked to actively share expertise via our international projects and partners in Kenya, Ethiopia, India, Egypt and Mexico. Here we operated a strategy of continual Coco, a 10 day old orphan foal was relinquished to us professional development; evaluating global veterinary following the unfortunate death of her mother. Having competency and continually adjusting and refining received intensive treatment at a local practice prior approaches in order to increase the impact of our work. to her travel to she arrived at the hospital and For example in February we brought experts together continued on a regular 24 hour feeding programme. from three continents to develop a global strategy for To avoid Coco becoming too humanised, we promptly parasite control to cope with differing requirements introduced her to a surrogate donkey mare which has around the world, using data from applied research in worked out well. In time, Coco and her new mum will be Ethiopia and Kenya. discharged and will join our resident mare and foal group at Brookfield Farm. Finally, with a current population of over 5,500 resident donkeys and mules across our farms and holding bases in the UK and Europe, our surgery schedule was full in 2012 with an extensive programme of lifesaving care and treatments; including sarcoid removal and foot and eye surgery. Throughout September and October in particular our nursing team were kept busy with our annual resident herd vaccination programme. Approximately 1,700 equine influenza and tetanus vaccination boosters were given to provide our animals with cover against equine influenza which can be a very serious illness, especially for elderly donkeys. Tetanus in particular is an often fatal condition in unvaccinated animals.

14 Case study: Case study: Junior vets day Sharing best practice in China

Jason James enjoying some veterinary training. Ajide Tuohuti on his visit to The Donkey Sanctuary.

Junior Vet Days were a new venture for the Charity Ajide Tuohuti from the Xinjang province in China was in 2012, and the large waiting list of prospective sponsored by his government to spend six months participants is proof of their popularity. In 2012 The learning about donkey welfare and how we care for Veterinary Team hosted three days where groups of 15 and manage donkeys in this country. China has one of young people were given an insight into the work of our the world’s biggest donkey populations and, despite world-leading donkey veterinary department. Amongst the increasing mechanisation of farming, many families other activities, participants were taught how to give a in rural villages still depend on a donkey for transport. clinical examination, inspect dentition, as well as learning We’ve been working with The Chinese Agricultural about donkey bone structure and anatomy. As always, University to explore ways of improving welfare by however, the most effusive response from participants sharing our knowledge and experience with vets and was simply spending time with the donkeys! animal welfare experts. “I enjoyed the whole day especially the bandaging. I think the day couldn’t have been better. I particularly enjoyed finding out about the theatre.” Jason James aged 11.

15 The future: The Donkey of human beings. Proximity to these wonderful animals Sanctuary’s Strategy for 2013 is already transforming lives all over the UK and Ireland, and we very much hope to be able to introduce donkey At the same time as we look to expand our direct assisted therapy activities for children and adults with veterinary intervention and community outreach additional needs in countries where severe hardship is operations internationally, we will work to grow our already a major part of everybody’s life. sphere of influence as the Centre of Excellence for Given that we are now entering a sixth year of donkeys and mules in educational and governmental worldwide economic hardship, we understand that this establishments around the world. Partnership will expansion in our international operations must take continue to be core to our approach at home and place in an exceedingly challenging environment. We overseas, where we will promote the vital role that believe however that the number of donkeys coming donkeys play in the economic lives and development into our care in the United Kingdom, was seen prior to of countries with working donkey populations, thereby the economic downturn that started towards the end of beginning to influence governments and opinion leaders’ 2007. This, combined with the incredible generosity of attitudes to this most hard-working of beasts. our supporters, will enable us to reach out to many more We will also be further investigating and promoting of the 50 million plus donkeys and mules in need around the powerful impact that Donkey Assisted Therapy can the world. have on the physical, mental and emotional development

Vasile was starving with painful feet and dental problems until our vet Roxana gave him emergency treatments and brought him to the safety of our Romanian Sanctuary.

16 There are estimated to be over fifty million donkeys in the world, one million of which are currently within reach of our major projects. In 2013 The Donkey Sanctuary will undergo an extensive and rigorous process to develop its next five year strategic plan, including establishing an ambitious new vision for our work over the next ten years. The core aim of this plan will be to reach substantially more animals, wherever they are most in need.

17 THANK you One and all

2012 has been a year of achievement for The Donkey Sanctuary; a year in which we reached more donkeys and mules in need than ever before, along with the families and communities that depend on them for their very survival. We have only been able to do this thanks to the tremendous working spirit and support of our staff, our volunteers and all those involved in donkey welfare amongst our partners throughout the world, who all have one common aim... improving the lives of donkeys and mules in need wherever they may be. We could not do any of this without the support of so many, and so we want to say thank you; thank you to the donors and volunteers who gave their time, money and energy to help keep us going in 2012; thank you to the kind friends who remembered us in their wills, to our wonderful Rosette Group for their incredible generosity, and to the companies, trusts and foundations who helped us with vital grants. And so from all at The Donkey Sanctuary, both four- legged and two...... Thank you!

18 Case study 1: Case study 2: Wayne’ shocking shorts QTVs

Shocking Shorts in Yorkshire. Wendy Davenport at Sidmouth.

In 2012 Wayne Taylor raised £345 for our Donkey Anyone who has ever been lucky enough to come into Assisted Therapy Centre in Leeds by pledging to wear contact with a donkey will understand just how difficult ‘unbelievably shocking shorts’ to work every day in it is to walk past without stopping to give them a cuddle. the six months running up to Christmas. We thought The softness of their muzzles and their deep brown eyes Wayne was very courageous to carry out his ‘shocking are enough to melt anyone’s heart. The challenge lies shorts’ mission; not only for the strange looks he must when you try to multiply that by say, 388 - the number have received from co-workers, but also for braving the of donkeys we have at Paccombe Farm - we would never Yorkshire winter temperatures. Thank you Wayne! get any work done. So four years ago the Sanctuary set up a pilot scheme whereby volunteers could come along to one of our seven farms and spend valuable time giving donkeys what they crave the most... attention! The response was amazing and the trial went so well that it was renamed and the Quality Time Volunteer (QTV) scheme was born. At Paccombe Farm in 2012 we had 10 regular QTVs who devoted their free time to the donkeys; giving our donkeys an astronomical 999 hours of quality attention. Around all our farms in the UK and Ireland there are over 100 QTVs. Thank you!

19 Thank you to our Miss S M Ainsworth Mr J F Scott Rosette Group Ms V Alexander Mr J Shouler Members in 2012 Miss R Antrobus Mrs I Silvester Mr & Mrs D & G Archer Mr M Slade The Rosette Group is an exclusive Mrs I M Armitage Mrs R Smith-Levett group of higher level supporters Mrs M A Bamford Mr P Spivey who wish to be more involved in Mr R F Bean Mr A Staples the work of The Donkey Sanctuary Miss L Beesley Mrs M Sully and make a vital contribution to Miss M Beetham Mrs B E Thomas the rescue and welfare of donkeys Ms L Bilek Mrs P Thomas both in this country and overseas. Mrs J Bordeleau Mrs M Thompson This special group was created as a Mrs J Brice Mr M Thorne way for us to say thank you to our Mrs E M Burns Mrs S Tomlin most generous supporters and with Mr B Carpenter Mrs B J Vesey the hope of building a stronger Mrs P Cooper Mrs S Webster community of donkey enthusiasts. Mr & Mrs W H Crowley Mr & Mrs P S & M G Widdicombe Mrs J M De Raaf Mrs J B Williams Miss R Denby Mrs J Young Mr J L Duffield Mrs J Foster Mrs V Foy Miss P & Mr P French Mr R Fuller Mrs W M Furlong Mrs F Gloag Mr C & Mrs L Green Dr E S Harri-Augstein Mrs M F Hawkins Mr M Hay Miss R Hayward Miss A Howard Mrs J Hukins Mrs S E Ingram Mr & Mrs B Jacques Mrs S Jamieson Mrs E Jefferson Mr D Johnson Mr H Jones Mrs Kernighan and Family Mrs S Kettle Mrs M E Kimberley-Scott Mr J H Lanceley Miss N Lavenu Mrs A Masson Mrs J McKnight Mr S Miller Miss M Mills Mrs L Milne Mrs J M Nelis Mrs J Newman Mr R R Outten Miss D Parker Mrs S Pearman & Mr J Russell Miss S J Price Mrs E Ramsay Mrs J A Rule Miss K N Sage Mrs V R Saw Mrs H Schneider 20 Thank you to the charitable trusts and foundations who supported our work in 2012:

A S Butler Charitable Trust Adam C I Naylor Charitable Trust Andrew Browning Charitable Trust Bartlett Taylor Charitable Trust Betty and Stanley Abbett Charitable Trust Betty Woodrow Discretionary Will Trust Donald Byford D Charitable Trust Dziniak Charitable Trust for Animals Eastlands Homes Henrietta Kitching Will Trust J F H Wiseman Will Trust James J Fattorini Charitable Trust Jane Hodge Foundation Karen Hanton Charitable Trust Limoges Trust Loseley & Guildway Charitable Trust Marenjan Trust Miss Hanson's Charitable Trust Miss P L Russell Charitable Foundation Mr M E Knott 1998 Settlement Mrs B M Richards Will Trust Mrs C M Paxton Deceased Charitable Trust Mrs D M France-Hayhurst Charitable Trust Mrs D P Shakespeare Charitable Trust Mrs Jean S Innes Charitable Trust Mrs Norah Helen Spurway's Charitable Trust The John & Wendy Osorio Trust Mrs Pauline Thomson's Charitable Trust The Joyce Cater Charitable Trust Mrs S H Adlam Will Trust The Kathleen Patricia Underwood 2007 Discretionary Rock Charitable Trust Trust So Hum Foundation The Latimer Charitable Trust The 29th May 1961 Charitable Trust The Leigh Trust The Achurch Charitable Trust The Lord Austin Trust The Alexander Mosley Charitable Trust The Michael Testler Charitable Foundation The Ann Jane Green Trust The Mullion Trust The Anna Rosa Forster Charitable Trust The Myristica Trust The Annandale Charitable Trust The Night Garden Charity The Barbara Welby Trust The Pennycress Trust The Beryl Thomas Animal Welfare Trust The Professor D G Montefiore Charitable Trust The Betty Kensit Fund The Rimmer Memorial Charitable Trust The Bewley Charitable Trust The Ronald Miller Foundation The Broyst Foundation The Shirley Pugh Foundation The Calypso Browning Trust The Sir James Miller Edinburgh Trust The Coutts Charitable Trust The Smythe Kitson Trust The Diana Edgson Wright Charitable Trust The Sylvia Aitken Charitable Trust The Enfield Charitable Trust The Sylvia and Colin Shepherd Charitable Trust The Finderman Charitable Trust The Tyldesley Charitable Settlement The Foresters Charity Stewards UK Trust The Tyler Charitable Trust The Frederick and Phyllis Cann Trust The Valerie White Memorial Trust The Gerrard and Audrey Couch Charitable Trust The Walker 597 Animal Trust The Harry Bacon Foundation The Whaites Charitable Fund The H D and B Crompton Charitable Trust The White Foundation The Icthius Charitable Trust The Woodcote Trust The Jane Margaret Errington Charitable Trust The Yvonne Flux Charitable Trust The Jean S Innes Charitable Trust Tollemache (Buckminister) Charitable Trust The Joan Turner Foundation Westmount Trust 21 financial Review

The financial performance of the charity and its subsidiary undertakings during the year was extremely encouraging and accorded with the Trustees’ expectations. The position at the end of the year is regarded as very positive and provides a robust base from which the charity can extend its impact all over the world.

Income Generation Total income for the charity and its subsidiaries for the year ended 31 December 2012 was £32.2m which includes the exceptional one off donation of £5.1m representing the fair value of net assets donated by The Elisabeth Svendsen Trust for Children and Donkeys following the merger on 1 January 2012. After removing the effect of this exceptional item income for the year was £27.1m (2011: £23.6m). The charity continues to strive to grow its income in the face of a very challenging economic climate and during 2012, thanks to the generosity of our supporters, our income on a like for like basis grew by 5% compared with the previous year.

Where our money came from:

2012 12 Months to 12 Months to 31.12.2012 31.12.2011* £’m £’m

Legacies 18.0 17.3 Donations** 6.7 6.1 Investment income 0.5 0.6 Trading company income 1.1 1.1 Other 0.8 0.7 Total 27.1 25.8 ** Adjusted to exclude the 5.1m donation of net assets from The Elisabeth Svendsen Trust for Children and Donkeys * Restated for comparability on a like for like basis to include EST income (unaudited)

In 2012 our donation income grew by £0.6m (9%) on a like for like basis reflecting our continuing efforts to highlight donkey care and welfare issues to new audiences as we continue to develop new avenues of fundraising to increase our donation income. Legacy income increased to £18m in 2012 (2011: £17.3m) an increase of 4% which includes the impact of including those legacies relating to The Elisabeth Svendsen Trust for Children and Donkeys. We are extremely grateful to all who have remembered the charity in their will and whilst we acknowledge our success in generating legacy income we also understand the need to further develop this very important source of income. Income generated from trading subsidiaries remained consistent with 2012 at £1.1m (2011: £1.1m), there were limited opportunities for growth in trading during 2012 and we faced an extremely challenging summer season with the combined impact of the Olympics and some very poor weather conditions affecting trade.

Charitable Expenditure Expenditure on charitable activities accorded with the Trustees expectations and, after taking account of the newly incorporated donkey assisted therapy activities of £2.9m, total expenditure for the year including capital projects grew to £26.3m (2011: £24.3m). As we see the rate at which donkeys are being relinquished beginning to fall from the peaks of 2010 and 2011 the direct costs (before support costs) associated with our donkey care and welfare activities in the UK has remained consistent with 2011. We have added £2.1m of direct operational costs (before support costs) in respect of our donkey assisted therapy activities during the year and in terms of overseas expenditure 2012 saw the benefit of the weakness of the Euro against Sterling (hence making the Sterling equivalent cost of our European projects lower) combined with

22

some reorganisation of activity within our international projects which resulted in a slightly reduced cost of Working Worldwide. We have already begun to see one of the many benefits of the merger with EST, the synergistic effect attached to sharing costs in providing our charitable activities. Whilst direct costs of providing our charitable activities remain consistent with the prior year, the addition of donkey assisted therapy has the effect of spreading our support costs over a larger number of charitable activities and hence you will note below that in some areas there are some minor reductions in total costs when we make year on year comparisons with 2011.

How your money was spent:

2012 12 Months to 12 Months to 31.12.2012 31.12.2011 £’m £’m

Donkey care 5.7 6.1 Donkey welfare support 1.7 1.5 Training, education and awareness 0.6 0.5 Veterinary services and research 2.8 2.8 Working worldwide 8.0 9.1 Donkey Assisted Therapy* 2.9 - Fundraising trading cost of goods sold 0.9 1.0 Cost of generating voluntary income 3.4 3.0 Governance costs 0.3 0.3

Total 26.3 24.3 (* Adjusted to exclude transfer of tangible fixed assets from The Elisabeth Svendsen Trust for Children and Donkeys)

Reserves The Trustees operate a reserves policy which they consider appropriate to ensure, barring unforeseen circumstances, the continued ability of the Charity to meet its objectives. The Trustees are increasingly aware of the potential volatility of income levels and the significant proportion of the charity’s total income from legacies. In addition, due to the fact that the charity makes considerable investment in projects outside of the United Kingdom, the Trustees and Executive Team are mindful of the expenditure the charity incurs in local currencies funded by monies received in sterling. The Charity aims to maintain, as far as it is possible, a minimum of free reserves equivalent to at least one year’s expenditure coverage. As at 31 December 2012, the total value of unrestricted accumulated funds was £55.6m of which £19.9m related to unrestricted income funds that could only be realised by disposing of tangible fixed assets held for charity use. A further £1.1m of funds are allocated for committed capital projects and £0.7m to intangible assets. The resulting general fund of £33.9m includes £11.0m in respect of legacies of which we have been advised but for which no income has yet been received. £33.9m or £22.9m (after deduction of residual legacy income yet to be received) represents 17 and 11 months coverage respectively of the 2013 budgeted expenditure levels. The reserve reflects additional funding requirements of the Charity’s expansion plans over the coming five year period and forms part of its strategic plan.

23 Structure, Governance and Management The following pages describe the charity’s structure, how it is governed, its approach to internal controls and risk management together with its policies in respect of grant making and investments and how it meets the public benefit requirements set out in Charities Act 2011.

24

The Donkey Sanctuary was founded in 1969 by Dr a better understanding of the differing types of work Elisabeth Svendsen MBE, became a registered charity undertaken by the Charity. in 1973 and now operates under the governance of a A Committee structure also operates to enable sole corporate trustee, The Donkey Sanctuary Trustee Trustees and Executive Team members to provide a Limited. In 2012 the charity operated in 27 project greater depth of direction and governance on specific countries around the world through a combination of parts of the Charity. Each Trustee will sit on at least one international branches, subsidiary entities, holding bases of the Committees, although all can attend all meetings and collaborations with other like minded organisations. if they so wish. The Executive Team members attend They carry out a range of fundraising, donkey care and the meeting that is most appropriate to their role or welfare and donkey assisted therapy activities united specialism. The Chief Executive attends all Committee under one global Donkey Sanctuary strategy. meetings. As a UK registered charity The Donkey Sanctuary To enable the Executive Team to operate effectively incorporates overseas branches in Ethiopia and Mexico the Trustees have put in place a schedule of devolved/ as well as operating a network of 6 UK donkey assisted delegated responsibility which clearly sets out what the therapy centres following the merger with its sister Chief Executive and the Executive Team are authorised charity, The Elisabeth Svendsen Trust for Children and to act upon without recourse back to the Trustees. Any Donkeys, on 1 January 2012. The Donkey Sanctuary’s approval required for an item of expenditure, contractual charitable subsidiary undertakings operate in Ireland, term or commitment that is outside the scope of this Spain, Italy, Cyprus and the Netherlands whilst the schedule must be put before the Board of Trustees for charity’s UK trading subsidiaries Donkey World Limited their approval. and The Hayloft (Donkey Sanctuary) Limited provide additional income from the sale of goods and the operation of catering facilities to visitors to our main sanctuary in Sidmouth. The charity has a sole corporate Trustee, The Donkey Sanctuary Trustee Limited and the Board consists of eight Trustees (who are Directors for Companies Act purposes). The Trustees all have an interest in the care and welfare of animals but also bring a mix of skills and knowledge necessary for a charity of this size. Trustees are appointed for a term of five years and can seek re-election. When a Trustee vacancy occurs, either as a result of the departure of an existing member or it is felt necessary to strengthen or enlarge the Board, new members are sought that will provide the sphere of experience necessary to replace that of the departing member or where there is believed to be a need for a specific skill or speciality on the Board. The induction process for any newly appointed Trustee comprises an initial meeting with the CEO together with a series of reviews with the appropriate Executive and Senior Management Team members to supplement information provided in their induction pack so as to impart knowledge of the operational and administrative aspects of the Charity. Details of Trustees’ responsibilities are made available to new Trustees from Charity Commission publications. Refresher course updates are made available to Trustees in order to ensure that they remain aware of charity and governance developments. The Trustees meet four times a year together with the Executive Team members at which strategic matters are discussed and considered. Each Trustee meeting is planned to last a full day with at least one meeting each year, wherever possible, being held at one of the sanctuary projects away from the headquarters in Sidmouth, Devon. This is so that the Trustees gain 25 Objectives and Activities

Mission statement The Donkey Sanctuary’s mission is protecting donkeys and mules and promoting their welfare worldwide. The charitable objects of The Donkey Sanctuary are: • For the benefit of the public, to relieve the suffering of donkeys, mules and other such animals in need of care and attention anywhere in the world and to provide and maintain rescue homes or other facilities for the reception, care, treatment and security of such animals. • To promote humane behaviour towards such animals by providing them with appropriate care, protection, treatment and security and to educate the public in the welfare of and the prevention of cruelty and suffering amongst such animals. • To benefit those persons whose lives are enhanced by working donkeys and mules by improving the health and welfare of such animals. • To bring enjoyment and pleasure to enrich the lives of children, young people and adults who have additional needs, special educational needs, disabilities or illnesses in order to enhance their education and make their lives better through appropriate provision of facilities for riding, handling or coming into contact with such animals.

In continuing the Charity’s work towards achieving its mission and objects the Trustees have identified the following key strategic objectives within the Charity (Note: unless stated otherwise any reference to donkeys also includes mules): • to provide best care to donkeys and mules according to their need; • to provide sanctuary from suffering; • to advance knowledge, raise awareness, increase respect and promote humane behaviour towards the donkey and its needs; • to be a centre of excellence for donkey health and welfare; • to promote the practical, educational and emotional benefits of the donkey to society; • to raise funds and use them, effectively and responsibly, to fulfil our mission; • to be a responsible and caring organisation; and • to enrich the lives of children and adults with additional needs by the use of donkeys.

Following the merger of The Elisabeth Svendsen Trust for Children and Donkeys with The Donkey Sanctuary on 1 January 2012 the Trustees acknowledged that the current strategic plan, active since 2009, did not include any strategic objectives for Donkey Assisted Therapy. Since January 2012 an additional key strategic objective was temporarily added to recognise this activity and the Trustees have confirmed that as part of the current strategic review Donkey Assisted Therapy will be incorporated into the Charity’s plans for the next 5 years and beyond. 26 Internal Controls and Risk Management

Connected Charities The Trustees have responsibility for the oversight of risk management within The Donkey Sanctuary. In line with The Elisabeth Svendsen Trust for Children and recommendations of the Statement of Recommended Donkeys (EST) Charity Number: 801070 Practice for Accounting and Reporting by Charities, the Charity objects: To bring together children and adults Trustees have approved a risk management process to with additional needs with donkeys. assess business risk and implement risk management The International Donkey Protection Trust (IDPT) strategies. An enhanced risk register was successfully Charity Number: 271410 implemented in the first half of 2012 and forms the basis Charity objects: To help donkeys and mules anywhere in of the ongoing risk management process. the world and to ease their suffering by veterinary care The Trustees have reviewed the major risks and and the education of their owners. the risk management processes within the charity and concluded that operational and financial controls, together On 21 December 2010, the Charity Commission with the internal audit programme, are sufficient to granted a scheme under which The International mitigate such risks. Donkey Protection Trust would be incorporated within Managers and the Executive Team review risk on the Charity. Under this uniting direction, IDPT shall be a regular basis, assessing the impact and likelihood of treated as forming part of The Donkey Sanctuary for the individual risk/s, the actions that have been taken to purposes of Part II (registration) and Part VI (accounting) mitigate or control risks, the effectiveness of our risk of the Charities Act 1993. management controls and whether there are new risks On 2 December 2011 the Directors of The Donkey for the charity that need to be considered. Sanctuary Trustee Limited (“The Company”) and the Actions taken during the course of the year have Incorporated Trustees of The Elisabeth Svendsen Trust served to either increase the strength of our risk for Children and Donkeys (“EST”) agreed to proceed with management, or to reduce the probability of the risk the merging of EST’s activities into those of The Donkey occurring and following the implementation of our new Sanctuary with the intention that The Company would risk register we have begun the process of embedding act as Trustee of both The Donkey Sanctuary and EST. the management of risk throughout the organisation. On 21 December 2011 the Charity Commission granted a Scheme under which EST would be It is recognised that systems can only provide reasonable, incorporated within The Donkey Sanctuary and has and not absolute, assurance that major risks have been agreed to the new objects for the merged charity. The adequately managed. effective date of the Scheme was 1 January 2012 and under this uniting direction, EST is treated as forming part of The Donkey Sanctuary for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011.

Subsidiary Undertakings The Donkey Sanctuary has ten subsidiary undertakings and full details in respect of the subsidiaries’ activities and performance can be found in note 25 of the accounts.

27 Public Benefit Grant Requirement Making

The Trustees confirm that they have complied with the The Donkey Sanctuary continues to provide grant duty in section 17 of the Charities Act 2011 to have funding to overseas organisations whose objectives due regard to public benefit guidance published by are similar to those of the Charity. Long standing the Charity Commission in determining the activities relationships exist with four overseas organisations, undertaken by the charity. two of which (The Donkey Sanctuary India and The The advancement of animal welfare is specified as an Society for Protection and Welfare of Donkeys and admissible charitable purpose within the Charities Act Mules in Egypt) were established by the charity for the and is taken to include any purpose directed towards the furtherance of its objects in India and Egypt and two prevention or suppression of cruelty to animals or the (The Faculty of Veterinary Medicine at the University of prevention or relief of suffering by animals. Examples Ethiopia and The Kenyan Society for the Prevention of of the sorts of charitable purposes falling within this Cruelty to Animals) being organisations with whom the description include: charity has operated donkey health and welfare projects • Charities promoting kindness and to prevent or for many years. Within all four of these projects well suppress cruelty to animals; established processes exist to monitor progress including • Animal sanctuaries; periodic detailed financial reporting to the Executive • The provision of veterinary care and treatment; Team. • Charities concerned with the care and re-homing of The Charity receives numerous applications for animals that are abandoned, mistreated or lost; and grant funding throughout each year from individuals • Feral animal control (e.g. neutering) and organisations and each application is given careful consideration by the Executive Team in the context The relief of those in need, by reason of youth, age, ill- of the Charity’s overall strategic objectives and also in health, disability, financial hardship or other disadvantage terms of financial resources available. All grant funding is also an admissible charitable purpose within the agreements are subject to approval by the Executive Charities Act and is taken to include our Donkey Assisted Team and contain provision for regular reporting of Therapy activities. progress against objectives set as well as providing The Trustees are satisfied that the aims and suitable financial reporting. objectives of the charity and the sections that follow demonstrate how The Donkey Sanctuary met its charitable purposes in 2012 and its principal achievements under its respective areas of charitable activity meet the public benefit requirements.

28 Investment trustees policy Approval

The Trustees have established an investment policy for This report was approved by the Trustees on the charity that covers: • an investment portfolio in equities, bonds and other listed investments, long term in nature and administered and signed on its behalf by: by investment managers on a discretionary basis; and • cash held in term deposit accounts administered through a combination of fund managers and the Executive Team. The Charity’s listed investments are managed through a discretionary fund management agreement with Newton Investment Management Limited. The Robert Crawford agreement confirms the stated investment objective to Trustee preserve and grow the invested sum through a balanced The Donkey Sanctuary Trustee Limited investment portfolio of income and capital growth whilst adopting a medium risk approach. The Trustees do not have any policy precluding investment on the basis of any social, environmental or ethical concerns. However, if the Trustees were to become aware of any investment being placed with (or potentially being placed with) an organisation or company whose objectives were directly Stuart Reid opposed to the objects of the charity the Trustees would Trustee wish funds not to be placed in or if placed, removed from The Donkey Sanctuary Trustee Limited such an organisation. The Charity has highlighted to its fund manager that investment decisions must be made with an awareness of the Charity’s sensitivity to animal testing and animal related issues which may cause pain, suffering, distress or lasting harm. Periodic meetings are held between Newton and selected Executives of the charity and on at least one occasion during each financial year Newton meets with Trustees and Executives of the Charity. Any balance of surplus funds held by the charity and not managed by Newton continues to be invested in interest bearing deposits and Treasury accounts with selected banks and building societies.

29 STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RESPECT OF THE TRUSTEES ANNUAL REPORT AND THE FINANCIAL STATEMENTS

Under the trust deed and rules of the charity and charity law, the Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. Charity law requires the Trustees to prepare financial statements for each financial year. The group and charity's financial statements are required by law to give a true and fair view of the state of affairs of the group and the charity and of the group's excess of income over expenditure for that period. In preparing these financial statements, generally accepted accounting practice entails that the Trustees: • select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements; • state whether the financial statements comply with the trust deed and rules, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the charity will continue in business.

The trustees are required to act in accordance with the trust deed and the rules of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the Trustees to ensure that, where any statements of accounts are prepared by it under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the financial and other information included on the charity's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

30

KPMG LLP Plym House 3 Longbridge Road Plymouth PL6 8LT United Kingdom

Independent auditor's report to the trustee of The Donkey Sanctuary

We have audited the group and charity financial statements (the 'financial statements') of The Donkey Sanctuary for the year ended 31 December 2012 set out on pages 29 to 62. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).

This report is made solely to the charity's trustee as a body, in accordance with section 144 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustee those matters we are required to state to it in an auditor's 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 charity and its trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustee and auditor

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 26 the trustee is responsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditor under section 144 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act. 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.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.

Opinion on financial statements In our opinion the financial statements:

 give a true and fair view of the state of the group's and of the charity's affairs as at 31 December 2012 and of the group's incoming resources and application of resources for the year then ended;  have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and  have been properly prepared in accordance with the requirements of the Charities Act 2011.

TRUSTEES REPORT AND ACCOUNTS 2012 31

The Donkey Sanctuary Consolidated Statement of Financial Activities Year ended 31 December 2012

Unrestricted Restricted Endowment Total Total Notes Funds Funds Funds 2012 2011 Incoming Resources £’000 £’000 £’000 £’000 £’000 Incoming Resources from Generated Funds Voluntary income 2 24,005 707 - 24,712 21,242 Donated assets - The Elisabeth Svendsen Trust for 23,438 1,674 - 5,112 - Children and Donkeys Activities for generating funds 3 1,149 - - 1,149 1,143 Investment income 4 540 - - 540 561 29,132 2,381 - 31,513 22,946 Other incoming resources Gain on disposals of fixed assets 34 - - 34 12 Realised gain on disposals of fixed asset investments 496 - - 496 522 Other income 178 - - 178 162

Total incoming resources 29,840 2,381 - 32,221 23,642

Resources expended Costs of generating funds Cost of generating voluntary income 5 3,255 - - 3,255 2,960 Fundraising trading: cost of goods sold and other costs 6 871 - - 871 910 Investment management costs 82 - - 82 73 4,208 - - 4,208 3,943 Cost of Charitable activities 8 Donkey care 5,364 39 - 5,403 5,767 Donkey welfare support 1,673 1 - 1,674 1,507 Training, education and awareness 566 1 - 567 488 Veterinary services and research 2,778 6 - 2,784 2,752 Working worldwide 7,299 389 - 7,688 8,299 Donkey Assisted Therapy 2,481 284 - 2,765 - 20,161 720 - 20,881 18,813

Governance Costs 7 335 - - 335 315

Total resources expended 8 24,704 720 - 25,424 23,071

Net incoming resources before other recognised gains and 5,136 1,661 - 6,797 571 losse s

Unrealised gain/(loss) on revaluation of investment assets 500 - - 500 (1,415) Loss on foreign currency translation (114) - - (114) (124) Net movement in funds 5,522 1,661 - 7,183 (968) Fund balances brought forward at 1 January 50,123 920 54 51,097 52,065 Transfers between funds 21 54 - (54) - - Total funds carried forward at 31 December 21 55,699 2,581 - 58,280 51,097

All of the activities relate to continuing operations. The accompanying notes form an integral part of the financial statements.

TRUSTEES REPORT AND ACCOUNTS 2012 33

The Donkey Sanctuary Consolidated Cash Flow Statement Year ended 31 December 2012 Notes 2012 2011 £'000 £'000 £'000 £'000 Net cash inflow/(outflow) from operating activities (i) 3,309 (1,976)

Returns on investments Interest received 100 131 Income from securities 446 435 Net cash inflow/(outflow) from returns on investments 546 566 Capital expenditure and financial investment Purchase of fixed asset investments (4,677) (8,608) Purchase of intangible fixed assets (330) (396) Purchase of tangible fixed assets (769) (959) Receipts from sale of tangible fixed assets 40 24 Receipts from sale of fixed asset investments 4,324 8,968 Net transfer of fixed asset investments (to)/from short-term (408) 973 cash deposits Net cash inflow/(outflow) from capital expenditure and (1,820) 2 financial investment

Increase/(Decrease) in cash (ii) & (iii) 2,035 (1,408) Notes to the consolidated cash flow statement i) Reconciliation of net incoming resources to net cash inflow/(outflow) from operating activities

Net incoming/(outgoing) resources before other recognised gains and 6,797 571 losses Depreciation charges 963 929 Amortisation charges 96 4 Loss on disposal of tangible fixed assets 57 37 Loss on disposal of fixed asset investments 54 12 Currency translation account 1 (16) Gain on disposal of tangible fixed assets (34) (12) Gain on disposal of fixed asset investments (496) (522) Investment income (540) (561) Donated assets retained (3,522) (375) (Increase)/Decrease in Stock 118 (30) (Increase)/Decrease in Debtors (140) (1,494) (Decrease)/Increase in Creditors (45) (519) Net cash inflow/(outflow) from operating activities 3,309 (1,976)

ii) Changes in cash during the period Opening balance 5,530 6,938 Net cash inflow/(outflow) 2,035 (1,408) Closing balance 7,565 5,530

iii) Analysis of cash as shown in the group balance Change in year sheet 2012 2011 2010 2012 2011 £'000 £'000 £'000 £'000 £'000 Short-term deposits 5,085 3,153 4,744 1,932 (1,591) Cash at bank and in hand 2,480 2,377 2,194 103 183

7,565 5,530 6,938 2,035 (1,408) The accompanying notes form an integral part of the financial statements.

TRUSTEES REPORT AND ACCOUNTS 2012 35

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012 Notes to the Consolidated Financial Statements

1. Accounting Policies a) Basis of accounting These financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments to market value and are in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005) issued in March 2005, the Charities Act 2011 and applicable United Kingdom accounting standards.

The Trustees have confidence that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the group continues to adopt the going concern basis in preparing the financial statements.

The accounting policies adopted by the group are described below:

b) Consolidation These financial statements include the results of the charity together with the results of all the charity’s branches including those overseas, unless the results of those branches are not significant to the group. Consolidated accounts have been prepared for the year ended 31 December 2012 in accordance with FRS2 ‘Subsidiary Undertakings’.

The charity has taken advantage of the exemption contained in FRS8 ‘Related Party Transactions’, where disclosure is not required in consolidated financial statements of intra-group transactions and balances eliminated on consolidation.

The group has also taken advantage of s397 SORP2005 not to publish the Statement of Financial Activities and related notes for the parent charity (see note 26).

c) Incoming resources Incoming resources are included in the statement of financial activities when the group is legally entitled to the income and the amount can be quantified with reasonable accuracy.

i. Donations from supporters represent the amounts receivable by the charity from donors during the period. Gift aid on donations is accounted for on an accruals basis.

ii. Donated assets and other gifts in kind are included in donations at the value of the gift received. This is the reasonable estimate of the gross value to the charity.

iii. Legacy income: residuary legacy income is recognised when the charity is advised by the personal representative of an estate that payment will be made and the amount can be quantified; pecuniary legacy income is recognised on notification; and where a life tenancy exists income is deferred as disclosed in note 24. Payments on account of a legacy, whether received or advised by letter as forthcoming have been treated as incoming resources.

iv. Investment income represents interest arising in the UK and overseas on building society and bank deposits held by the group during the period, and have been included on an accruals basis, together with income from listed investments.

TRUSTEES REPORT AND ACCOUNTS 2012 36

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

Accounting policies (continued)

v. Event income represents other fundraising activities carried out by the charity to generate incoming resources which will be used to undertake its charitable activities and includes fundraising events such as festivals and experience days.

vi. Trading income includes the sale of merchandise and catering income net of Value Added Tax. Goods donated for resale are included as income when they are sold and the cash received. d) Resources expended Expenditure is included on an accruals basis and incorporates provisions for known liabilities where a legal or constructive obligation existed at the balance sheet date that would commit the group to that expenditure. The purchase of goods and services has been treated as expenditure once the supplier has delivered the goods or performed the service.

i. Costs of generating funds The cost of generating voluntary income includes all costs incurred by the group in encouraging others to make gifts to it that are voluntary income. Such costs will typically include the costs of producing fundraising, advertising, marketing and direct mail materials. ii. Charitable expenditure The costs of charitable activities include the direct costs incurred on the activity, the direct costs of staff employed on the activity together with any grants payable in respect of that activity. Support costs are included in the costs of activities in the furtherance of the group’s objects, in order to present the full cost of those activities. iii.Support costs Support costs represent the head office costs of the Group. Support costs have been allocated between charitable activities, governance and the cost of generating funds on the basis of headcount, staff time, expenditure levels and the number of supported computer workstations. Details of the costs and basis of the allocations can be found in note 9 to the accounts. iv. Governance Governance costs relate to costs associated with the constitutional and statutory requirements of the group and include the costs of external audit, secretariat and other constitutional related costs. Further details of the items included in governance costs are included in note 7 to the accounts. v.Grant funding of activities Grants payable are accounted for when paid or charged to the statement of financial activities when a constructive obligation exists, notwithstanding that they may be paid in future accounting periods. e) Value added tax Irrecoverable VAT is included in the cost of the items reported in the financial statements. f) Taxation The Donkey Sanctuary is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

TRUSTEES REPORT AND ACCOUNTS 2012 37

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

Accounting policies (continued) g) Operating leases Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred. h) Foreign currency Transactions in foreign currencies are recorded using monthly average rates of exchange. Monetary assets and liabilities are translated into sterling at the exchange rates ruling at the balance sheet date. All exchange differences are taken to the Statement of Financial Activities.

The results of overseas subsidiary undertakings are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on the translation of the opening net assets and results of the overseas operations are reported in the Statement of Financial Activities under Other Recognised Gains and Losses. i) Pension costs A Group Personal Pension Scheme was introduced on 1 October 1997 and contributions to this scheme are charged in the accounting period in which they fall due. j) Intangible fixed assets and amortisation Intangible fixed assets are stated at cost less accumulated amortisation, and are recognised on the following basis:

i. Individual intangible assets of a value below £1,000 are not generally capitalised unless they form part of a larger asset; and

ii. Impairment reviews are undertaken when a development occurs that necessitates the replacement, disposal or otherwise of a particular asset or assets.

Amortisation is provided on all intangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:

Software 10% straight line k) Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less accumulated depreciation. Tangible fixed assets are recognised on the following basis:

i. Individual fixed assets of a value below £1,000 are not generally capitalised unless they form part of a larger project; ii. The group does not have any assets to capitalise of historic, scientific (including environmental) or artistic importance; iii. Impairment reviews are undertaken when a development occurs that necessitates the replacement, disposal or otherwise of a particular asset or assets; and iv. Assets under construction are held within freehold land and buildings; no depreciation charge is made until the period in which the asset is completed.

TRUSTEES REPORT AND ACCOUNTS 2012 38

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

Accounting policies (continued)

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:

Leasehold property Straight line over the lease term Freehold buildings 2% straight line Equipment, fixtures and fittings 20% reducing balance Vehicles – cars 33 ⅓% reducing balance Vehicles – tractors and other vehicles 20% reducing balance l) Investments Stocks and shares are included in the accounts at market value. Unrealised gains and losses arising on the revaluation of investments are shown in the consolidated Statement of Financial Activities as unrealised gains and losses on revaluation of investment assets. Realised gains on the disposal of fixed asset investments are disclosed separately in the consolidated Statement of Financial Activities. Investments in subsidiary undertakings are stated at cost in the charity’s balance sheet and eliminated on consolidation in accordance with FRS2. m) Stocks Trading stock Valued at the lower of cost and net realisable value less provision for obsolete and slow moving stock

Major bought in items are individually identified and valued at Stock of feed, straw and bedding the cost of purchase. Other bought in items are valued at the lower of cost and net realisable value.

Veterinary supplies and Valued at the lower of cost and net realisable value. equipment, stores and other stock n) Fund accounting

i. Unrestricted funds are expendable at the discretion of the trustee in furtherance of the charity’s objects. If part of an unrestricted fund is earmarked for a particular project it may be designated as a separate fund, but the designation has an administrative purpose only, and does not legally restrict the trustee’s discretion to apply the fund. Income generated from assets held in unrestricted funds has been treated as unrestricted.

ii. Restricted funds are funds subject to specific trusts, which may be declared by the donor(s) or with their authority (e.g. in a public appeal) or created through legal process, but still within the wider objects of the charity. Restricted funds may be restricted income funds, which are expendable at the discretion of the trustee in furtherance of some particular aspect(s) of the objects of the charity. Or they may be capital (i.e. endowment) funds, where the assets are required to be invested, or retained for actual use, rather than expended. Income arising from endowments and restricted income funds has been treated as restricted in its own right unless the terms of the trust allow otherwise.

iii. Transfers between funds - these may arise when there is a release of restricted funds to unrestricted funds or charges are made from the unrestricted to other funds.

TRUSTEES REPORT AND ACCOUNTS 2012 39

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

2. Voluntary income

Unrestricted Restricted Endowment Total Total funds funds funds 2012 2011 £’000 £’000 £’000 £’000 £’000 Donations 6,126 615 - 6,741 4,370 Donated assets - - - - 375 Donated assets - The Elisabeth Svendsen Trust 3,438 1,674 - 5,112 - for Children and Donkeys Legacies 17,879 92 - 17,971 16,497 27,443 2,381 - 29,824 21,242

On 1 January 2012 the Donkey Assisted Therapy activities of our sister charity The Elisabeth Svendsen Trust for Children and Donkeys were incorporated into The Donkey Sanctuary group. The transfer of net assets on 1 January 2012 of £5,112k has been separately disclosed here and on the face of the Statement of Financial Activities due to the exceptional nature of the transaction (see note 25 for details of the merger).

3. Activities for generating funds

Unrestricted Restricted Endowment Total Total funds funds funds 2012 2011 £’000 £’000 £’000 £’000 £’000

Rental income 14 - - 14 2 Sale of donated assets 2 - - 2 4 Trading turnover 1,133 - - 1,133 1,137 1,149 - - 1,149 1,143

4. Investment income

Unrestricted Restricted Endowment Total Total funds funds funds 2012 2011 £’000 £’000 £’000 £’000 £’000

Listed and unlisted investments 410 - - 410 435 NatWest charity investment bond 24 - - 24 20 Building society and bank interest 106 - - 106 106 540 - - 540 561

5. Costs of generating voluntary income

Unrestricted Restricted Endowment Total Total funds funds funds 2012 2011 £’000 £’000 £’000 £’000 £’000

Fundraising 3,239 - - 3,239 2,935 Legacies 16 - - 16 25 3,255 - - 3,255 2,960

TRUSTEES REPORT AND ACCOUNTS 2012 40

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

6. Fundraising trading: Cost of goods sold and other costs

Unrestricted Restricted Endowment Total Total funds funds funds 2012 2011 £’000 £’000 £’000 £’000 £’000

Cost of sales 162 - - 162 170 Trading costs of subsidiary undertakings 709 - - 709 740 871 - - 871 910 Included within the trading costs of subsidiary undertakings is £584k (2011: £611k) for Donkey World Limited and £125k (2011: £129k) for The Hayloft (Donkey Sanctuary) Limited (see note 25 for details of the trading activities of these subsidiaries).

7. Governance Costs

Unrestricted Restricted Endowment Total Total funds funds funds 2012 2011 £’000 £’000 £’000 £’000 £’000 Audit and other financial services Audit fees - external audit 24 - - 24 27 Audit fees - overseas audit 19 - - 19 12 Other financial services provided by the auditors Consultancy & financial advice 2 - - 2 9

Trustees Expenses 25 - - 25 23 Apportionment of costs supporting Governance 265 - - 265 244 activities 335 - - 335 315 The aggregate amount of reimbursed Trustee Director expenses was £10k (2011: £20k) in respect of travel accommodation and subsistence for eight (2011: seven) Trustee Directors during the year, and direct meeting costs of £15k (2011: £3k). There were no Trustee Director expenses outstanding for reimbursement at the end of the year.

TRUSTEES REPORT AND ACCOUNTS 2012 41

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

8. Total resources expended Grant Other direct funding of Support Total Total Staff costs costs activities costs 2012 2011 £’000 £’000 £’000 £’000 £’000 £’000 (Note 11) (Note 10) (Note 9) Cost of generating funds Cost of generating voluntary income Fundraising 412 2,268 - 559 3,239 2,935 Legacies - - - 16 16 25

Fundraising trading: Costs of goods sold and other costs

Cost of sales 150 (0) - 12 162 170 Trading costs of subsidiary undertakings - 709 - - 709 740

Inv e stme nt manage me nt costs - 76 - 6 82 73

Charitable activities Donkey care 2,264 1,966 - 1,173 5,403 5,767 Donkey welfare support 622 628 - 424 1,674 1,507 Training, education and awareness 64 19 - 484 567 488 Veterinary services and research 1,321 781 94 588 2,784 2,752 Working worldwide 2,912 3,413 518 845 7,688 8,299 Donkey Assisted Therapy 1,436 694 - 635 2,765 -

Governance costs - 70 - 265 335 315

Expenditure in Support of Activities 3,280 1,695 32 (5,007) - - 12,461 12,319 644 - 25,424 23,071

Unrestricted Restricted Endowment Total Total funds funds funds 2012 2011 £’000 £’000 £’000 £’000 £’000 Cost of generating funds Cost of generating voluntary income Fundraising 3,239 - - 3,239 2,935 Legacies 16 - - 16 25 Fundraising trading: Costs of goods sold and other costs

Cost of sales 162 - - 162 170 Trading costs of subsidiary undertakings 709 - - 709 740

Inv e stme nt manage me nt costs 82 - - 82 73

Charitable activities Donkey care 5,364 39 - 5,403 5,767 Donkey welfare support 1,673 1 - 1,674 1,507 Training, education and awareness 566 1 - 567 488 Veterinary services and research 2,778 6 - 2,784 2,752 Working worldwide 7,299 389 - 7,688 8,299 Donkey Assisted Therapy 2,481 284 - 2,765 -

Governance costs 335 - - 335 315

24,704 720 - 25,424 23,071

TRUSTEES REPORT AND ACCOUNTS 2012 42

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

9. Support costs allocation Finance, Information Human Direct Directorate legal & technology resources support admin. costs 2012 £’000 £’000 £’000 £’000 £’000 £’000 Cost of Generating Voluntary Income Fundraising 83 190 35 17 234 559 Legacies 9 - 7 - - 16 Fundraising trading: Costs of goods sold 2 8 - - 2 12 Investment management costs 1 4 - - 1 6 Cost of Charitable Activities Donkey care 101 236 38 142 656 1,173 Donkey welfare support 31 141 28 25 199 424 Training, education and awareness 2 4 23 11 444 484 Veterinary services and research 53 133 36 59 307 588 Working worldwide 194 371 116 66 98 845 Donkey Assisted Therapy 51 108 44 97 335 635 Governance Costs 148 116 - - 1 265

675 1,311 327 417 2,277 5,007

Basis of allocation: Estimated time & Estimated time & Supported Headcount Headcount & expenditure expenditure workstations expenditure

Finance, Direct legal & Information Human support Directorate admin. technology resource costs 2011 £’000 £’000 £’000 £’000 £’000 £’000 Cost of Generating Voluntary Income Fundraising 107 172 50 15 241 585 Legacies 16 - 9 - - 25 Fundraising trading: Costs of goods sold 3 8 - - 1 12 Investment management costs 1 4 - - - 5 Cost of Charitable Activities Donkey care 133 223 55 144 995 1,550 Donkey welfare support 40 113 36 25 39 253 Training, education and awareness 5 6 28 6 326 371 Veterinary services and research 67 113 81 63 288 612 Working worldwide 231 383 171 123 178 1,086

Governance Costs 151 93 - - - 244

754 1,115 430 376 2,068 4,743

Basis of allocation: Estimated time Estimated time Supported Headcount Headcount & & expenditure & expenditure wo rkst at io ns expenditure Direct Support Costs include the costs of health and safety, property maintenance services and central procurement and logistics, all of which provide support to operational, fundraising and governance functions.

TRUSTEES REPORT AND ACCOUNTS 2012 43

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

10. Grants and Donations

Veterinary services and Working research worldwide 2012 2011 Institutional £’000 £’000 £’000 £’000 Overseas for the welfare of donkeys ACK MBT DEV Office - Anglican Church of Kenya - - - 4 All About Animals - Gambia - - - 5 Amhara Regional Bureau - Ethiopia - - - 4 Animal Nepal - 19 19 19 Arusha Society for the Protection of Animals (ASPA) - Tanzania - 9 9 5 Association Humanitaria San Francisco De Asis - Peru - 3 3 3 Bonaire Donkey Sanctuary - Dutch Antilles - 9 9 - Circle of Animal Lovers - 8 8 8 Drought In East - Disaster Management - 12 12 20 Ethiopia - NGO Addis Ababa - - - 2 Ethiopia - Tigray Regional Bureau - - - 12 Faculty of Veterinary Medicine at The University of - 76 76 69 Ethiopia FAWCAM (Foundation for Animal Welfare, Cameroon) - 7 7 5 Gambia Horse & Donkey Trust - 3 3 - Greek Animal Welfare Fund - 15 15 11 Highveld Horse Care Unit - South Africa - 14 14 - Kenya Small Grants Workshop - 24 24 - Kenya S.P.C.A. - - - 260 McGregor (Eseltjiesrus) Donkey Sanctuary - S. Africa - - - 3 Moroccan Outdoor Trekking Research - 4 4 2 Mwamfumba Cooperative - Zambia - 4 4 9 NSPCA - South Africa - - - 5 Onderstepoort University - South Africa - 3 3 4 Peta Jones Donkey Power - South Africa - 2 2 - Society for Protection and Welfare of Donkeys and - 89 89 71 Mules in Egypt Sri Lanka Feral Donkeys - 1 1 - Student Research - Ethiopia - - - 2 Student Research - India - 2 2 - TAPO - Tanzania - 5 5 4 TAWESO - Tanzania - 5 5 5 The Donkey Sanctuary - India - 190 190 212 University of Vienna - Austria 48 - 48 - Vet-Care Organization - Sudan - 10 10 - ZAASO - Zanibar Animals Affection Society - Tanzania - 3 3 2 Items £1,000 or less - 1 1 3 566 48 518 749

TRUSTEES REPORT AND ACCOUNTS 2012 44

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

10. Grants and donations (continued)

Veterinary services and Working research worldwide 2012 2011 Institutional £’000 £’000 £’000 £’000 UK for the welfare of donkeys Veterinary research grants: The Royal Veterinary College, Hatfield - - - 15 University of Glasgow 46 - 46 - Items £1,000 or less - - - 1 46 - 46 16 Expenditure in support of activities 32 32 32 Total 94 550 644 797 Grants payable to UK and overseas organisations are considered to be part of the costs of activities in the furtherance of the objects of the charity because much of the charity’s development programme is carried out through such grants to organisations whose objectives mirror those of the charity. Grants and donations for 2012 include those made to the Association in Egypt (SPWDME), the Faculty of Veterinary Medicine at the University of Ethiopia and to the Trust in India (The Donkey Sanctuary – India). Committed grants are fully provided for as at 31 December 2012. All grants made are to institutions. Expenditure in support of activities comprises salary costs.

As at 31 December 2012 full provision has been made for the following grants for 2013 and beyond:

£’000

Veterinary research grant – University of Bristol 36

Veterinary research grant – University of Glasgow 46

Veterinary research grant – University of Veterinary Medicine, Vienna 24

TRUSTEES REPORT AND ACCOUNTS 2012 45

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

11. Staff costs

2012 2011 £’000 £’000 Staff costs for the year were as follows: Salary costs 10,687 9,470 Social security costs 1,059 986 Pension contributions 718 663 12,464 11,119

The full time equivalent average number of staff employed during the year was as follows:

2012 2011 No. No. Donkey care 99 97 Donkey welfare support 17 17 Training, education and awareness 3 4 Veterinary services and research 41 42 Working worldwide 138 124 Donkey Assisted Therapy 68 - Fundraising 21 19 Support activities 105 104

492 407

The number of employees whose emoluments amounted to over £60,000 in the year was as follows:

2012 2011 No. No. £60,001 -£70,000 1 - £70,001 -£80,000 5 5 £80,001 -£90,000 - 1 £90,001 -£100,000 1 1 £100,001 -£110,000 1 1 8 8

Seven of the above employees (2011: eight) have retirement benefits accruing to them under money purchase pension schemes and the contributions in the year in respect of these were £79k (2011: £81k). Emoluments include salary and benefits in kind but exclude pension scheme contributions.

No remuneration was paid to any trustee or to any person connected with them during the year.

TRUSTEES REPORT AND ACCOUNTS 2012 46

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

12. Intangible fixed assets: Software Group Charity £’000 £’000 Cost At 1 January 2012 415 395 Additions 330 322 At 31 December 2012 745 717

Amortisation At 1 January 2012 6 6 Charge for the year 96 96 At 31 December 2012 102 102

Net book value At 31 December 2012 643 615

At 31 December 2011 409 389

Assets under construction amounting to £19k (2011:£352k) have not been amortised.

TRUSTEES REPORT AND ACCOUNTS 2012 47

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

13. Tangible fixed assets Group Freehold Vehicles Equipment Leasehold land and and fixtures and Total fixed property buildings tractors fittings assets £'000 £'000 £'000 £'000 £'000 Cost At 1 January 2012 - 21,562 3,453 3,498 28,513 Additions 1,567 1,843 406 276 4,092 Disposals - (1) (85) (259) (345) Foreign currency translation adjustment - (102) (15) (19) (136) At 31 December 2012 1,567 23,302 3,759 3,496 32,124

Depreciation At 1 January 2012 - 4,117 2,587 2,516 9,220 Charge for the year 34 401 273 255 963 Adjustment for disposals - - (69) (212) (281) Foreign currency translation adjustment - (6) (7) (9) (22) At 31 December 2012 34 4,512 2,784 2,550 9,880

Net book value At 31 December 2012 1,533 18,790 975 946 22,244

At 31 December 2011 - 17,445 866 982 19,293

The net book value represents fixed assets used for: Direct charitable purpose Donkey Care - 11,661 264 383 12,308 Donkey Welfare Support - - 105 1 106 Training, Education and Awareness - - 1 - 1 Veterinary Services and Research - 225 48 93 366 Working Worldwide - 4,717 307 296 5,320 Donkey Assisted Therapy 1,533 2,018 156 72 3,779

Other purposes Fundraising - - - 8 8 Administration and support - 169 94 93 356 1,533 18,790 975 946 22,244 The leasehold property at the Birmingham Donkey Assisted Therapy Centre at Sutton Park is held on a 75 year lease granted by Birmingham City Council dated 25 November 1993. The current rental is £3,750 per annum, payable half-yearly in advance and subject to review every five years. The next review is due to take place on 25 November 2013.

The leasehold property at the Leeds Donkey Assisted Therapy Centre at Lineham Farm is held on a 50 year lease granted by Leeds City Council dated 23 November 1998. The lease rental is currently at the rate of £650 per annum, rising on a graduated basis until 23 November 2017 to £2,500 per annum.

TRUSTEES REPORT AND ACCOUNTS 2012 48

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

13. Tangible fixed assets (continued) The leasehold property at the Manchester Donkey Assisted Therapy Centre at Debdale Park is held on a 50 year lease granted by Manchester City Council dated 10 July 2003. The lease rental is currently at the rate of £725 per annum. The next review is due to take place on 10 July 2013.

Freehold land amounting to £3,630k has not been depreciated (2011: £3,377k) and assets under construction amounting to £37k (2011: £83k) are included within freehold land and buildings additions. These have not been depreciated.

Tangible fixed assets - Charity Freehold Vehicles Equipment Leasehold land and and fixtures and Total fixed property buildings tractors fittings assets £'000 £'000 £'000 £'000 £'000 Cost At 1 January 2012 - 18,096 2,638 2,597 23,330 Additions 1,567 1,727 336 233 3,863 Disposals - - (66) (191) (256) At 31 December 2012 1,567 19,823 2,908 2,639 26,937

Depreciation At 1 January 2012 - 3,927 2,003 1,948 7,878 Charge for the year 34 340 181 158 713 Adjustment for disposals - - (56) (175) (231) At 31 December 2012 34 4,267 2,128 1,931 8,360

Net book value At 31 December 2012 1,533 15,556 780 708 18,577

At 31 December 2011 - 14,169 635 649 15,453

The net book value represents fixed assets used for: Direct charitable purpose Donkey Care - 11,661 264 383 12,308 Donkey Welfare Support - - 105 1 106 Training, Education and Awareness - - 1 - 1 Veterinary Services and Research - 225 48 93 366 Working Worldwide - 1,483 112 58 1,653 Donkey Assisted Therapy 1,533 2,018 156 72 3,779

Other purposes Fundraising - - - 8 8 Administration and support - 169 94 93 356 1,533 15,556 780 708 18,577 Freehold land amounting to £2,603k has not been depreciated (2011: £2,319k) and assets under construction amounting to £37k (2011: nil) are included within freehold land and buildings additions.

TRUSTEES REPORT AND ACCOUNTS 2012 49

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

14. Fixed asset investments Group Charity 2012 2011 2012 2011 Valuation £’000 £’000 £’000 £’000 Opening balance 15,258 17,496 15,358 17,596 Additions 4,865 8,608 4,727 8,608 Disposals and withdrawals (3,883) (8,458) (3,883) (8,458) Transfers 408 (973) 408 (973) Unrealised gain/(loss) 501 (1,415) 501 (1,415) Closing balance 17,149 15,258 17,111 15,358

Fixed asset investments are detailed below: Investments in subsidiary undertakings Donkey World Limited - 150,000 Ordinary shares of £1 each - - 150 100 The Hayloft (Donkey Sanctuary) Limited - 4 Ordinary shares of £1 each - - - -

Indirect investment in UK listed securities UK fixed interest bonds 2,474 1,973 2,474 1,973 UK equities 5,391 5,147 5,391 5,147 Indirect investment in overseas listed securities International bonds 637 368 637 368 Overseas equities 4,607 3,881 4,607 3,881 Total listed investments 13,109 11,369 13,259 11,469

Other NatWest charity investment bond 1,000 1,000 1,000 1,000 Newton's Investment Cash Funds - 750 - 750 Newton's Investment Management - cash 436 143 436 143 account Building society deposits 1,204 1,004 1,016 1,004 Barclays Wealth 1,400 992 1,400 992

17,149 15,258 17,111 15,358 No individual investments held at 31 December 2012 or 31 December 2011 had a market value in excess of 5% of the total market value of listed investments.

TRUSTEES REPORT AND ACCOUNTS 2012 50

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

15. Stock Group Charity 2012 2011 2012 2011 £'000 £'000 £'000 £'000 Trading stock (including charity stock) 299 375 87 82 Stock of feed, straw and bedding 131 184 100 140 Veterinary supplies, equipment, stores and other 196 184 105 110 626 743 292 332

16. Debtors and prepayments Group Charity 2012 2011 2012 2011 £'000 £'000 £'000 £'000 Amounts due from subsidiary undertakings and - - 279 340 connected parties Other debtors 34 77 19 18 Income tax recoverable 207 110 185 110 Residual legacies 10,988 11,102 10,294 10,677 Prepayments 314 156 322 238 Accrued income 96 61 58 61 11,639 11,506 11,157 11,444

17. Creditors: amounts falling due within one year Group Charity 2012 2011 2012 2011 £'000 £'000 £'000 £'000 Amounts due to subsidiary undertakings and - 123 52 63 connected parties Accounts payable 624 393 530 350 Social security and other taxes 293 263 218 196 Other creditors 245 394 179 222 Accruals 424 318 272 206

1,586 1,491 1,251 1,037

18. Provision for liabilities Group Charity 2012 2011 2012 2011 Pension scheme - Section 75 debt: £'000 £'000 £'000 £'000 Balance at beginning of period 97 165 97 165 Amounts charged to SOFA during the period (97) (68) (97) (68)

Balance at end of period - 97 - 97

TRUSTEES REPORT AND ACCOUNTS 2012 51

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

18. Provision for liabilities (continued) Pension scheme – Section 75 debt As part of the winding up process of The Donkey Sanctuary’s 1988 Staff Retirement Benefits Scheme (‘The Scheme’) the Trustee of the scheme is required to make provision for recovery of any deficiency of liabilities over assets as well as for any expenses to be incurred in completing the winding up of the scheme from the sponsoring employer, known as the Section 75 debt. During the year the remaining Section 75 debt owed by the charity to the scheme was discharged.

19. Pension scheme Defined Contribution Scheme The charity provides a Group Personal Pension Scheme operated by AEGON Scottish Equitable. Six categories of employer contributions operate within the scheme which is based upon the seniority of each member. The cost for the accounting period is disclosed in note 11. No amounts were outstanding at the end of the year. A contribution by all staff is required, with the exception of the most senior category which is non-contributory. The defined contribution nature of the scheme, therefore, avoids the potential volatility of employer pension costs experienced by the previously operated defined benefit schemes.

20. Capital commitments At the end of the year the group had no contracts for capital commitments that have not been accrued within these accounts. At 31 December 2012 the group was committed to spend the following amounts in 2013 and beyond: 31.12.12 31.12.11 £’000 £’000

Authorised but not contracted at period end 1,171 580

21. Analysis of movement in funds The reserves of the group include restricted funds which comprise incoming resources held on trusts to be applied for those specific purposes as described in the table below. The group has sufficient resources held in an appropriate form to enable each fund to be applied in accordance with any restrictions.

The source of the incoming resources is represented by funds raised from: . local or national fundraising activities, all of which have been completed by the end of the period; or . specific donations or legacies requesting the funds be applied as specified by the donor

Tangible fixed asset funds represent funds received in respect of specific items of equipment, vehicles or capital building projects, all of the funding relating thereto having been spent by the end of the financial year. Each tangible asset fund is amortised so as to match the depreciation rate of the associated asset.

Current asset funds are funds received for which the associated project has yet to commence or had yet to be fully utilised by the end of the financial year. Funds are held in cash at bank and in hand until the project is complete.

Operating cost funds are funds relating to the operational projects (i.e. non capital projects) of the charity and ordinarily are spent before the end of the financial year.

TRUSTEES REPORT AND ACCOUNTS 2012 52

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

21. Analysis of movement in funds (continued) Transfers Other Balance at Incoming Outgoing Between recognised Balance at Group 01.01.12 Resources Resources funds gains 31.12.12 £'000 £'000 £'000 £'000 £'000 £'000 Endowment funds These are included in investments shown in the balance sheet and were legacy bequests as follows: G S Roberts 40 - - (40) - - Dr. J P Mandelstam 1 - - (1) - - The Charity of A U Broom 13 - - (13) - - Total endowment funds 54 - - (54) - -

Restricted funds Tangible fixed asset funds Donkey Sanctuary: Farm Buildings (UK) 279 43 (8) - - 314 Veterinary & Isolation Facilities 415 4 (10) - - 409 Veterinary Equipment 29 - (6) - - 23 Farm Equipment and Machinery 2 2 (1) - - 3 Education & Activities Vehicles 6 - - - - 6 Donkey Assisted Therapy (Formerly EST): DAT Centres - 1,479 (33) - - 1,446 DAT Centre Equipment - 14 (3) 24 - 35 DAT Centre Vehicles - 55 (11) - - 44 Education & Activities Vehicles - 48 (11) - - 37

Current asset fund Donkey Sanctuary: Turks & Caicos 189 - (2) - - 187 Donkey Assisted Therapy (Formerly EST): DAT Centres - 3 - - - 3 DAT Centre Equipment - 87 (1) (24) - 62 Education & Activities Vehicles - 17 (5) - - 12

Operating cost funds Donkey Sanctuary: Donkey welfare UK - 26 (26) - - - Donkey welfare overseas - 382 (382) - - - Donkey Assisted Therapy (Formerly EST): DAT Centres - 221 (221) - - - Total restricted funds 920 2,381 (720) - - 2,581

Unrestricted funds General Fund 30,475 28,707 (23,994) (1,610) 386 33,964 Subsidiaries - 1,133 (710) (423) - - Designated funds 19,648 - - 2,087 - 21,735

Total unrestricted funds 50,123 29,840 (24,704) 54 386 55,699

Total group funds 51,097 32,221 (25,424) - 386 58,280

TRUSTEES REPORT AND ACCOUNTS 2012 53

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

21. Analysis of movement in funds (continued) Transfers Other Balance at Incoming Outgoing Between recognised Balance at Charity 01.01.12 Resources Resources funds gains 31.12.12 £'000 £'000 £'000 £'000 £'000 £'000 Endowment funds These are included in investments shown in the balance sheet and were legacy bequests as follows: G S Roberts 40 - - (40) - - Dr. J P Mandelstam 1 - - (1) - - The Charity of A U Broom 13 - - (13) - - Total endowment funds 54 - - (54) - -

Restricted funds Tangible fixed asset funds Donkey Sanctuary: Farm Buildings (UK) 279 43 (8) - - 314 Veterinary & Isolation Facilities 415 4 (10) - - 409 Veterinary Equipment 29 - (6) - - 23 Farm Equipment and Machinery 2 2 (1) - - 3 Education & Activities Vehicles 6 - - - - 6 Donkey Assisted Therapy (Formerly EST): DAT Centres - 1,479 (33) - - 1,446 DAT Centre Equipment - 14 (3) 24 - 35 DAT Centre Vehicles - 55 (11) - - 44 Education & Activities Vehicles - 48 (11) - - 37 ------Current asset fund Donkey Sanctuary: Turks & Caicos 189 - (2) - - 187 Donkey Assisted Therapy (Formerly EST): DAT Centres - 3 - - - 3 DAT Centre Equipment - 87 (1) (24) - 62 DAT Centre Vehicles ------Education & Activities Vehicles - 17 (5) - - 12 ------Operating cost funds Donkey Sanctuary: Donkey welfare UK - 26 (26) - - - Donkey welfare overseas - 382 (382) - - - Donkey Assisted Therapy (Formerly EST): DAT Centres - 221 (221) - - - Total restricted funds 920 2,381 (720) - - 2,581

Unrestricted funds General Fund 30,055 27,513 (22,857) (2,095) 501 33,117 Designated funds 15,561 - - 2,149 - 17,710 Total unrestricted funds 45,616 27,513 (22,857) 54 501 50,827

Total charity funds 46,590 29,894 (23,577) - 501 53,408

TRUSTEES REPORT AND ACCOUNTS 2012 54

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

22. Designated funds

Designated fund movements - Group

Depreciation Balance at Additional and Balance at 01.01.12 Transferred approved Released disposals 31.12.12 £'000 £'000 £'000 £'000 £'000 £'000

Intangible fixed assets fund 507 - 281 - (101) 687 Tangible fixed assets fund 19,044 - 3,062 - (1,058) 21,048 Pension reserve 97 - - (97) - - 19,648 - 3,343 (97) (1,159) 21,735 Designated fund movements - Charity

Depreciation Balance at Additional and Balance at 01.01.12 Transferred approved Released disposals 31.12.12 £'000 £'000 £'000 £'000 £'000 £'000

Intangible fixed assets fund 487 - 278 - (102) 663 Tangible fixed assets fund 14,977 - 2,726 - (656) 17,047 Pension reserve 97 - - (97) - - 15,561 - 3,004 (97) (758) 17,710 Tangible Fixed Assets Fund – this fund represents the amalgamation of: a) Unrestricted income funds that could only be released by disposing of fixed assets held for charitable use. b) Unrestricted income funds designated for specific future capital projects for which the Trustee has authorised but not contracted the related expenditure as set out in note 20.

The pension reserve fund was created in prior years and the Trustees have released the designated funds following the discharge of the remaining Section 75 debt in 2012 as disclosed in note 18.

23. Analysis of net assets – Group Total group net Intangible Tangible Current Current assets at fixed assets fixed assets Investments assets liabilities 31.12.12 £'000 £'000 £'000 £'000 £'000 £'000

Restricted funds - 2,317 - 264 - 2,581

Unrestricted funds: General funds - - 17,154 18,395 (1,586) 33,963 Designated funds 643 19,927 (5) 1,171 - 21,736

643 22,244 17,149 19,830 (1,586) 58,280 Minority interests ------643 22,244 17,149 19,830 (1,586) 58,280

TRUSTEES REPORT AND ACCOUNTS 2012 55

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

23. Analysis of net assets – Charity (continued) Total charity net Intangible Tangible Current Current a sse ts a t fixed assets fixed assets Investments assets liabilities 31.12.12 £'000 £'000 £'000 £'000 £'000 £'000

Restricted funds - 2,317 - 264 - 2,581 Unrestricted funds: General funds - - 17,111 17,256 (1,251) 33,116 Designated funds 615 16,260 836 - 17,711

615 18,577 17,111 18,356 (1,251) 53,408

24. Legacies receivable At the end of the year the group was entitled to receive an estimated £5,690k (2011: £4,903k) from residual legacies subject to life tenancies. These mainly comprise shares in properties and investments held in trusts.

25. Subsidiaries and related party transactions

The Donkey Sanctuary’s subsidiaries, El Refugio Del Burrito, Il Rifugio Degli Asinelli O.N.L.U.S, The Donkey Sanctuary (Cyprus) Limited, The Donkey Sanctuary (Ireland) Limited, Stichting The Donkey Sanctuary Nederland, The International Donkey Protection Trust, The Elisabeth Svendsen Trust for Children and Donkeys, The Donkey Sanctuary Kenya, Donkey World Limited and The Hayloft (Donkey Sanctuary) Limited are incorporated into the consolidated accounts in accordance with FRS2 using the acquisition accounting method.

El Refugio Del Burrito El Refugio Del Burrito (an Association registered in Spain whose registered office is at Avda. Ricardo Soriano, 12, Edif. Marques de Salamanca, 2nd floor-office 8, 29600 Marbella – Malaga (Spain)) qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).

The Directors of El Refugio Del Burrito are:

Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr C. Young Executive officer of The Donkey Sanctuary Mr J.E. Akers Executive officer of The Donkey Sanctuary Mrs M.E.A. Taylor Welfare officer of The Donkey Sanctuary Mr P.A. Svendsen Executive officer of The Donkey Sanctuary (Resigned 25 May 2012)

The income and costs of El Refugio Del Burrito relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.

TRUSTEES REPORT AND ACCOUNTS 2012 56

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

25. Subsidiaries and Related Party Transactions (continued) 2012 2011 £’000 £’000 Total incoming resources 889 906

Total cost of charitable activities (909) (910) Governance cost (5) (4)

Total resources expended (914) (914)

Net outgoing resources for the year (25) (8)

As at 31 December 2012, El Refugio Del Burrito had net assets of £1,962k (2011: £2,018k). This comprised assets of £1,995k (2011: £2,047k) and liabilities of £34k (2011: £29k)

Il Rifugio Degli Asinelli (O.N.L.U.S.) Il Rifugio Degli Asinelli O.N.L.U.S (an Association registered in Italy whose registered office is at Via Per Zubiena 62, 13884 Sala Biellese, Italy) qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).

The Directors of Il Rifugio Degli Asinelli O.N.L.U.S are:

Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr P.A. Svendsen Executive officer of The Donkey Sanctuary (Resigned 25 May 2012) Mr J.E. Akers Executive officer of The Donkey Sanctuary Mr C. Young Executive officer of The Donkey Sanctuary Mrs M. Steele Executive officer of The Donkey Sanctuary (Appointed 6 August 2012)

The income and costs of Il Rifugio Degli Asinelli O.N.L.U.S relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.

2012 2011 £’000 £’000 Total incoming resources 580 576

Total cost of charitable activities (564) (565) Governance cost (2) (2)

Total resources expended (566) (567)

Net incoming resources for the year 14 9

As at 31 December 2012, Il Rifugio Degli Asinelli O.N.L.U.S had net assets of £1,492k (2011: £1,560k). This comprised assets of £1,614k (2011: £1,683k) and liabilities of £122k (2011: £123k).

TRUSTEES REPORT AND ACCOUNTS 2012 57

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

25. Subsidiaries and Related Party Transactions (continued)

The Donkey Sanctuary (Cyprus) Limited The Donkey Sanctuary (Cyprus) Limited (a Company registered in Cyprus whose registered office is at Georgiou Gennadiou, 10A, Agathangelos Court, 2nd Floor, Flat 203, Limassol, Cyprus) qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).

The Directors of The Donkey Sanctuary (Cyprus) Limited are:

Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr P.A. Svendsen Executive officer of The Donkey Sanctuary (Resigned 25 May 2012) Mr J.E. Akers Executive officer of The Donkey Sanctuary Mr C. Young Executive officer of The Donkey Sanctuary

The income and costs of The Donkey Sanctuary (Cyprus) Limited relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.

2012 2011 £’000 £’000 Total incoming resources 507 458

Total cost of charitable activities (506) (478) Governance cost (2) (2)

Total resources expended (508) (480)

Net outgoing resources for the year (1) (22)

As at 31 December 2012, The Donkey Sanctuary (Cyprus) Limited had net assets of £104k (2011:127k). This comprised assets of £116k (2011: £143k) and liabilities of £12k (2011: £16k).

TRUSTEES REPORT AND ACCOUNTS 2012 58

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

25. Subsidiaries and Related Party Transactions (continued)

The Donkey Sanctuary (Ireland) Limited The Donkey Sanctuary (Ireland) Limited was incorporated on 21 January 2011 (a company limited by guarantee and registered in Ireland (Registered Charity CHY11617) whose registered office is Liscarroll, Mallow, County Cork, Ireland). The company commenced its charitable activities on 1 September 2011 and qualifies as a subsidiary undertaking by virtue of the degree of management and control exerted by The Donkey Sanctuary.

The Directors of The Donkey Sanctuary (Ireland) Limited are:

Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr P.A. Svendsen Executive officer of The Donkey Sanctuary (Resigned 25 May 2012) Mr E. Dempsey Of independent status Mr D. Healy Of independent status Ms S. Cush Of independent status Mr C. Young Executive officer of The Donkey Sanctuary (Appointed 30 July 2012) Mr N. Carton Operations Manager of The Donkey Sanctuary (Ireland) Limited (Appointed 20 March 2013) Mr A. Foxcroft Executive officer of The Donkey Sanctuary (Appointed 20 March 2013)

The income and costs of The Donkey Sanctuary (Ireland) Limited relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.

12 4 Months to Months to 31.12.12 31.12.11 £’000 £’000 Total incoming resources 2,779 1,094

Total cost of charitable activities (2,541) (957) Governance cost (7) (2) (2,548) (959) Total resources expended

Net incoming resources for the period 231 135

On 1 September 2011 The Donkey Sanctuary’s Irish branch transferred its operating assets and liabilities (except freehold land and buildings) to The Donkey Sanctuary (Ireland) Limited to enable the continuation of its long standing charitable activities within the newly formed charitable limited company and the carrying value of those net assets transferred amounted to £236k. As at 31 December 2012, The Donkey Sanctuary (Ireland) Limited had net assets of £512k (2011: £333k). This comprised assets of £582k (2011: £453k) and liabilities of £70k (2011: £120k).

TRUSTEES REPORT AND ACCOUNTS 2012 59

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

25. Subsidiaries and Related Party Transactions (continued) Stichting The Donkey Sanctuary Nederland Stichting The Donkey Sanctuary Nederland was incorporated on 3 June 2010 (a Foundation registered in Holland whose registered office is Polarisavenue 83 I, 2132 JH Hoofddorp, Holland). The foundation commenced its charitable activities on 1 February 2011 and qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).

The Directors of Stichting The Donkey Sanctuary Nederland are:

Mr P.A. Svendsen Executive officer of The Donkey Sanctuary (Resigned 25 May 2012) Mr J. Van der Vlies Of independent status (Resigned 7 November 2012) Mr J.E. Akers Executive officer of The Donkey Sanctuary Mr D.A.H. Cook Executive officer of The Donkey Sanctuary (Appointed 10 July 2012) Mr C. Young Executive officer of The Donkey Sanctuary (Appointed 10 July 2012) Mrs M. Steele Executive officer of The Donkey Sanctuary (Appointed 10 July 2012)

The income and costs of Stichting The Donkey Sanctuary Nederland relate to fundraising for the charitable objectives of The Donkey Sanctuary. Transactions have been included within the consolidated costs of generating voluntary income for The Donkey Sanctuary. 12 4 Months to Months to 31.12.12 31.12.11 £’000 £’000 Total incoming resources 455 284

Total cost of activities (485) (248) Governance cost - -

Total resources expended (485) (248)

Net (outgoing)/incoming resources for the period (30) 36

As at 31 December 2012, Stichting The Donkey Sanctuary Nederland had net assets of £2k (2011: £35k). This comprised assets of £2k (2011: £62k) and liabilities of £nil (2011: £27k).

The Donkey Sanctuary Kenya Limited The Donkey Sanctuary Kenya Limited was incorporated on 5th March 2010 (a Company limited by guarantee and registered in Kenya whose registered office is at Kenya Society for the Protection & Care of Animals (KSPCA) – Karen office, Langata Road, PO Box 24203-00502, Nairobi). The company commenced its charitable activities in October 2010 and qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).

The Directors of The Donkey Sanctuary Kenya Limited are: Mrs J. Gilchrist Of independent status Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr J.L Duncan Director of The Donkey Sanctuary (Trustee) Limited Mr R.C Nichols Officer of The Donkey Sanctuary

TRUSTEES REPORT AND ACCOUNTS 2012 60

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

25. Subsidiaries and Related Party Transactions (continued)

The income and costs of The Donkey Sanctuary Kenya Limited relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.

2012 2011 £’000 £’000 Total incoming resources 459 101

Total cost of charitable activities (386) (85) Governance cost (1) (2)

Total resources expended (387) (87)

Net incoming resources for the period 72 14

As at 31 December 2012, The Donkey Sanctuary Kenya Limited had net assets of £74k (2011: £13k). This comprised assets of £76k (2011: £17k) and liabilities of £2k (2011: £4k).

The International Donkey Protection Trust Since 1 October 2000, when the objects of The Donkey Sanctuary were amended by the Charity Commission, The Donkey Sanctuary has taken the responsibility for all overseas work previously carried out by the International Donkey Protection Trust (IDPT) and the Trustees of IDPT resolved to pass all funds received by IDPT to The Donkey Sanctuary. However, IDPT still exists as a “shell” charity with the full knowledge and agreement of the Charity Commission.

On 21st December 2010, the Charity Commission granted a scheme under which The International Donkey Protection Trust would be incorporated within the Charity. Under this uniting direction, IDPT is treated as forming part of The Donkey Sanctuary for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011. The income of the International Donkey Protection Trust relates to legacy and donation income generated for the charitable objectives of The Donkey Sanctuary. Transactions have been included within the consolidated voluntary income of The Donkey Sanctuary.

2012 2011 £’000 £’000 Total incoming resources 490 511

Amount donated to The Donkey Sanctuary (369) (462)

Net incoming resources for the year 121 49

As at 31 December 2012, The International Donkey Protection Trust had net assets of £546k (2011: £425k). This comprised assets of £546k (2011: £425k).

TRUSTEES REPORT AND ACCOUNTS 2012 61

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

25. Subsidiaries and Related Party Transactions (continued)

The Elisabeth Svendsen Trust for Children and Donkeys (EST) On 2 December 2011 the Trustees of The Donkey Sanctuary Trustee Limited (“The Company”) and the Incorporated Trustees of The Elisabeth Svendsen Trust for Children and Donkeys (“EST”) agreed to proceed with the merging of EST’s activities into those of The Donkey Sanctuary with the intention that The Company would act as Trustee of both The Donkey Sanctuary and EST.

On 21 December 2011 the Charity Commission granted a Scheme under which EST would be incorporated within The Donkey Sanctuary and has agreed to the new objects for the merged charity. The effective date of the Scheme was 1 January 2012 and under this uniting direction, EST is treated as forming part of The Donkey Sanctuary for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011. EST still exists as a “shell” charity with the full knowledge and agreement of the Charity Commission.

As part of the agreement EST transferred the fair value of its net assets, amounting to £5,112k, to The Donkey Sanctuary on 1 January 2012 and all subsequent Donkey Assisted Therapy activity has been consolidated into the accounts of The Donkey Sanctuary in accordance with Financial Reporting Standard No 2.

The income and expenditure of The Elisabeth Svendsen Trust for Children and Donkeys relates to its donkey assisted therapy activities. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary. 12 Months to 31.12.12 £’000 Total incoming resources 1,124 Total cost of activities (143) Amount donated to The Donkey Sanctuary (5,912) Net outgoing resources for the year (4,931)

As at 31 December 2012, The Elisabeth Svendsen Trust for Children and Donkeys had net assets of £180k (2011: £5,112k). This comprised assets of £180k (2011: £5,245k) and liabilities of £nil (2011: £134k).

As part of the accounting process connected with the incorporation of EST’s activities into The Donkey Sanctuary the Trustees are required to evaluate the fair value of the net assets acquired. The summary balance sheet for EST as at 31 December 2011 is given below, and in accordance with Financial Reporting Standard No7 ‘Fair Values in Acquisition Accounting’ the Trustees have undertaken a fair value evaluation of each element of the balance sheet including the commissioning of independent valuations of certain tangible fixed assets to be transferred. In order to most fairly reflect the value of the land and buildings transferred, it was decided that the historical cost less accumulated depreciation was the most fair and accurate form of valuation, due to the specialised nature of the assets and the restrictions placed on their usage. Other tangible fixed assets were reviewed in terms of the market value compared with carrying value and adjustments made where appropriate to mark down the value of those assets. Other net assets were transferred at the carrying value as at 31 December 2011. All EST assets were donated to the Donkey Sanctuary in the form of donated assets.

TRUSTEES REPORT AND ACCOUNTS 2012 62

The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

EST Balance Sheet Summary At 31 December 2011 2011 £'000 £'000 Fixed assets Tangible assets 3,334 Investments 50 Total fixed assets 3,384

Current assets Stocks 34 Debtors 293 Short term deposits 1,233 Cash at bank and in hand 302 Total current assets 1,862

Creditors: amounts falling due 134 within one year

Net current assets 1,728

Net assets 5,112

Note: In the valuation carried out for the transfer of assets from EST to The Donkey Sanctuary no fair value adjustments were identified.

Donkey World Limited Donkey World Limited “The Company” was incorporated on 30 May 2002 and commenced trading on 1 October 2002 to conduct trading activities in support of the charitable objects of The Donkey Sanctuary and The Elisabeth Svendsen Trust for Children and Donkeys. The principal activity is the sale of merchandise by mail order through a catalogue and the internet and sales at our Visitor Centres.

The Donkey Sanctuary holds 150,000 Ordinary Shares of £1 each in Donkey World Limited, the shares representing a holding of 100% in the company.

The Directors of Donkey World Limited are:

Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr J.T. Carroll Of independent status (Resigned 13 June 2012) Mr J. Dale Of independent status Mrs M.J. Steele Executive officer of The Donkey Sanctuary Mr C. Young Executive officer of The Donkey Sanctuary (appointed 13 June 2012)

The Directors have agreed that the Company, by virtue of its principal objects, will distribute by way of charitable donations the majority of its retained profit for the year to its 100% parent undertaking – The Donkey Sanctuary. On this basis charitable donations amounting to £203k (2011: £144k – based on 67% shareholding) were accrued in the consolidated results of The Donkey Sanctuary for the year.

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The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

25. Subsidiaries and Related Party Transactions (continued)

The following are extracts from Donkey World Limited’s financial statements: 2012 2011 £’000 £’000 Turnover 781 769 Cost of sales (292) (286)

Gross profit 489 483 Administration and other costs (285) (261)

Taxation (1) (5)

Net income 203 217

Amount gifted to The Donkey Sanctuary (203) (217)

Retained profit/(loss) - -

The Elisabeth Svendsen Trust for Children and Donkeys held a ⅓ share of the investment in Donkey World Limited which was transferred to The Donkey Sanctuary on 1 January 2012 as part of the transfer of net assets upon the merger of EST’s activities into those of The Donkey Sanctuary.

Income and expenditure generated by Donkey World Limited has been incorporated into the appropriate section in the consolidated Statement of Financial Activities, relating to the relevant department.

As at 31 December 2012, Donkey World Limited had net assets of £162k (2011: Net assets £162k). This comprised assets of £536k (2011: £717k) and liabilities of £373k (2011: £555k).

The Hayloft (Donkey Sanctuary) Limited The Hayloft (Donkey Sanctuary) Limited was incorporated on 2 February 2009 and commenced trading on 1 April 2009 to conduct trading activities in support of the charitable objects of The Donkey Sanctuary. The principal activity is to provide a restaurant and other catering facilities.

The Donkey Sanctuary holds 4 Ordinary Shares of £1 each in The Hayloft (Donkey Sanctuary) Limited. This represents a holding of 100% in the company.

The Directors of The Hayloft (Donkey Sanctuary) Limited are:

Mr D.A.H Cook Executive officer of The Donkey Sanctuary Mrs M.J. Steele Executive officer of The Donkey Sanctuary Mr J.E Akers Executive officer of The Donkey Sanctuary Mr C. Young Executive officer of The Donkey Sanctuary

The Directors have agreed that the Company, by virtue of its principal objects, will distribute by way of charitable donations the majority of its retained profit for the year to its 100% parent undertaking – The Donkey Sanctuary. Charitable donations of £14k were accrued in the consolidated results of The Donkey Sanctuary for the year ended 31 December 2012 (2011: £26k).

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The Donkey Sanctuary Notes to the Consolidated Financial Statements Year Ended 31 December 2012

25. Subsidiaries and Related Party Transactions (continued)

The following are extracts from The Hayloft (Donkey Sanctuary) Limited’s financial statements:

2012 2011 £’000 £’000 Turnover 329 351 Cost of sales (251) (270)

Gross profit 78 81 Administration and other costs (64) (57)

Taxation - -

Net income 14 24

Amount gifted to the charity (14) (21)

Retained profit/(loss) - 3

Income and expenditure generated by The Hayloft (Donkey Sanctuary) Limited has been incorporated into the appropriate section in the consolidated Statement of Financial Activities, relating to the relevant department.

As at 31 December 2012, The Hayloft (Donkey Sanctuary) Limited had net assets of £nil (2011: net assets of £ nil). This comprised assets of £38k (2011: £55k) and liabilities of £38k (2011: £55k).

26. Parent charity The charity has taken advantage of the provisions of paragraph 397 of SORP2005 not to publish its own Statement of Financial Activities and related notes. Details of the charity’s own income and results are as follows:

2012 2011 £’000 £’000 Total incoming resources 29,894 21,690

Costs of generating funds (3,367) (3,016) Costs of charitable activities (19,895) (18,696) Governance cost (315) (305)

Total resources expended (23,577) (22,017) Net incoming/(outgoing) resources before other recognised gains 6,317 (327)

TRUSTEES REPORT AND ACCOUNTS 2012 65

The Donkey Sanctuary Trustees’ Report and Accounts - 2012 Reference and administrative details

Governing instrument The Donkey Sanctuary is registered with the Charity Commission as a charity and the first Trustees were appointed by a trust deed dated 10 September 1974. The power of appointing a new Trustee is invested in the surviving or continuing Trustees, for the time being. The sole corporate Trustee is The Donkey Sanctuary Trustee Limited, a company limited by guarantee. The Donkey Sanctuary Trustee Limited is governed by its Memorandum and Articles of Association.

Charity Registration Number 264818 Corporate Trustee Company Registration Number 07328588 Registered Office Slade House Farm, Sidmouth, EX10 0NU

Board of Trustees (who are Directors for Companies Act purposes) The Trustees who served throughout the year and up to the date of the approval of the Trustees Report and Accounts comprised: Robert Crawford Jim Duncan Stuart Reid John Sewell-Rutter Bill Tetlow Cathy Thompson Rosalind De Wesselow (retired 31/01/2013) David Howarth (appointed 30/11/2012) Rosemary Gillespie (appointed 30/11/2012)

Chief Executive and Executive Management Team The Executive Management Team to whom day to day management of the Charity is delegated by the Trustees and who served throughout the year and up to the date of the approval of the Trustees Report and Accounts comprised:

David Cook Chief Executive Stephen Blakeway Director International Operations Marianne Steele Director Fundraising & Marketing Paul Svendsen Director Care & Welfare (resigned 25 May 2012) Andy Foxcroft Director Care & Welfare (appointed 1 November 2012) Andrew Trawford Director Veterinary Policy (retired 31 January 2013) Chris Young Director of Finance Gill Minns Director Management Services John Akers Director and Solicitor

Investment Managers Newton Investment Management Limited, Mellon Financial Centre, 160 Queen Victoria Street, London, EC4V 4LA

Bankers Barclays Bank plc,40 High Street, Sidmouth, Devon, EX10 8EB

Solicitors Gilbert Stephens, 7 Broad Street, Ottery St Mary, Devon, EX11 1BS

Auditor KPMG LLP, Plym House, 3 Longbridge Road, Plymouth, PL6 8LT

TRUSTEES REPORT AND ACCOUNTS 2012 66