TRUSTEES’ REPORT AND ACCOUNTS 2014 TRUSTEES’ REPORT AND ACCOUNTS 2014 CONTENTS TRUSTEES’ REPORT AND ACCOUNTS 2014 2

DONKEY SANCTUARY IN 2014 4

MESSAGE FROM THE CHIEF EXECUTIVE 6

TRUSTEES’ REPORT

VISION, MISSION AND VALUES 8

RESCUE AND REHOMING 10

DONKEYS IN THE COMMUNITY 12

HUMAN DONKEY INTERACTIONS 14

CONSIDERING THE FUTURE 16

FINANCIAL REVIEW OF 2014 18

THANK YOU 22

STRUCTURE, GOVERNANCE AND MANAGEMENT 24

STATEMENT OF TRUSTEES’ RESPONSIBILITIES 28

AUDITOR’S REPORT 29

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 31

BALANCE SHEETS 32

CONSOLIDATED CASH FLOW STATEMENT 33

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 34

REFERENCE AND ADMINISTRATIVE DETAILS 66

Pages 2&3 MESSAGE FROM THE CHAIR OF TRUSTEE DIRECTORS Knowing that we are making a difference to the lives of donkeys around the world, as well as to those who depend upon them, is what keeps us going…be that as trustees, staff, volunteers or supporters of The Donkey Sanctuary. For the trustees, the privilege of being in a position of governance brings with it the responsibility of ensuring that as an organisation we remain focused on making that difference.

As you will see from the pages that follow, the charity has had another remarkable year and, tempting though it is to concentrate on the figures, I encourage you to look behind and beyond the numbers and to read for yourself the stories and testimonials that show just how we are addressing a real need in the donkeys, as well as in those adults and children who benefit from their labours and companionship.

There is no shortage of need. Whether it is a working donkey overseas, or a neglected or abused donkey closer to home, we realise that our task will never be finished. However, we also know that with the wonderful staff and volunteers who deliver first-class donkey health and welfare through dedicated care and attention, and with the incredible support we receive from you, The Donkey Sanctuary can continue to make a real difference wherever it is needed most.

Stuart Reid

Left: A donkey taxi on the island of Santorini, Greece. We are furthering our understanding of donkey and mule welfare needs around the world and giving these animals a voice where they need it most. www.thedonkeysanctuary.org.uk THE DONKEY SANCTUARY IN 2014

30 project countries 4,725 animals were cared 1,575 donkeys were cared worldwide. The Donkey for at sanctuaries and holding for by supporters through our Sanctuary either worked bases across Europe. Rehoming Scheme in Europe. directly, or supported projects, to help donkeys and mules in 30 countries worldwide.

1 MILLION donkeys 1,600 volunteers gave us 280,000 people visited were reached in our five largest the precious gift of their time. our charity’s main Sanctuary in project countries alone (Egypt, Sidmouth, Devon. Ethiopia, India, Kenya and Mexico) and many more through our supported projects.

Pages 4&5 SINCE COMMENCEMENT 800 donkeys were rescued 40,000 donkey-assisted OF THE CHARITY IN 1969 or relinquished into our care therapy sessions were delivered during the year in Europe. to children with additional needs, 18,000 donkeys and and our first donkey-assisted mules in Europe have been therapy operation commenced provided with a sanctuary for life. in Africa.

OUR FOUNDER’S LEGACY The Donkey Sanctuary was founded in 1969 by Dr Elisabeth Svendsen MBE (pictured left). She dedicated her life to championing donkeys, and it is through her devotion that The Donkey Sanctuary grew to be the international charity it is today. Sadly Dr Svendsen passed away in 2011 but her memory lives on in our work, as does her eternal motto that, in everything we do, donkeys will always come first, second and third.

www.thedonkeysanctuary.org.uk MESSAGE FROM THE CHIEF EXECUTIVE,

Without our wonderful supporters and Ireland, and this trend has continued into 2015. sponsors we could not achieve all that we We therefore need to find many more homes that do, so a big big thank you to you all. Your can look after two or more of our donkeys. We generosity has enabled us to continue to also strive to find more partners around the world expand throughout every area of our work. so that we can provide more donkeys with better In January 2014 we refined our Vision and care and welfare. Mission aims around our three main values of Compassion, Collaboration and Creativity, In summary we are delighted to report that in 2014 evidence of which can be found in the we spent more than ever before on transforming activities described in our five-year Strategic donkeys’ lives. Our income was £32.4m, up Plan entitled “Our Journey Continues…”. £1.7m (5.5%) on 2013. Our expenditure, including capital, was £30.7m, an increase of £2.2m (7.7%). We achieved almost all of the growth objectives We are still spending less than 19 pence in the we set ourselves for the first year of that plan. I pound on fundraising and governance and as at will mention a few here but further detail can be 31 December 2014 we had a free cash reserves found within this annual review, or on our website position equivalent to 10 months’ expenditure. www.thedonkeysanctuary.org.uk. In 2015 growth and development of the charity We are now operating directly or indirectly in 30 will continue in accordance with our five-year countries around the world, providing resources to Strategic Plan, including seeking planning ensure we improve the lives of donkeys and mules permission for the construction of a purpose-built through care, welfare and community education, veterinary hospital. To date our main veterinary and by doing so also improving the lives of their facility has operated out of a building that cannot owners. Within our five major international accommodate large donkeys and mules and is projects alone our work touches the lives of one located right in the heart of the main Sanctuary million donkeys. in Sidmouth. The new facility will be relocated to another of our farms, together with the new In Europe we restructured our whole welfare arrivals unit, thereby significantly reducing the operation and then set about getting as many possibility of the transference of disease on donkeys in our care as possible out into new homes our main Sanctuary site. The resultant vacated under our rehoming policy. In December 2014 there premises in the centre of the main Sanctuary will were 4,725 donkeys and mules being looked after by be converted to enhance visitor engagement and us and a further 1,575 living with donkey guardians, communication of our work around the world. mostly in private homes but a growing number in schools and institutions, where the donkeys and Our aspiration to extend our work further their carers benefit from the daily contact. throughout the world is only possible due to your continued support. We are truly grateful. We have expanded our donkey-assisted therapy operation where human donkey interaction provides so much to humans with additional needs. One of these units has opened in Ethiopia through a joint project with Cheshire Homes. As well as benefiting donkeys and humans it also demonstrates to government, local authorities and local communities that the donkey is so much more than a beast of burden.

Unfortunately there is still a high number of donkeys being relinquished to us after being abandoned or because their owners cannot continue to care for them. In 2014 over 800 came Right: Our Chief Executive, David Cook with Ponk into our care from within the United Kingdom and at our main Sanctuary in Sidmouth, Devon.

Pages 6&7 www.thedonkeysanctuary.org.uk VISION, MISSION AND VALUES

OUR VISION COMPASSION The Donkey Sanctuary is above all else A WORLD WHERE compassionate. We never turn away from a DONKEYS AND MULES donkey in need. Donkeys and the people who rely on them for their livelihoods or to help them cope LIVE FREE FROM with physical, mental and emotional challenges, SUFFERING, AND THEIR lie at the heart of everything we do. We act as a global driving force for caring, both for suffering CONTRIBUTION TO donkeys and mules and for all those people whose HUMANITY IS FULLY lives they touch, generating understanding, VALUED. compassion and support all over the world. COLLABORATION OUR MISSION The Donkey Sanctuary is collaborative in all its To transform the quality of life for donkeys, activities, working through a worldwide network of mules and people worldwide through greater partner organisations, communities and individuals. understanding, collaboration and support, and We work inclusively with people frequently by promoting lasting, mutually life-enhancing marginalised within their own countries and relationships. communities, whether due to poverty, ignorance, race, gender or disabilities. We treat every OUR VALUES interaction as a two-way opportunity to learn and Compassion, collaboration and creativity are The to teach. We know that it is only together that Donkey Sanctuary values. They are the key to our we can help donkey owners and carers become journey as they represent what we stand for and donkey welfare ambassadors wherever they live what we measure ourselves against. and work.

CREATIVITY The Donkey Sanctuary’s goals are ambitious, but its resources are finite — which means that we must exercise creativity to meet the ambitious goals we set ourselves. Creative thinking underpins everything we do, whether adapting locally available materials for donkey-friendly harnesses across projects that span four different continents, developing donkey-assisted therapy activities tailored to the unique challenges of a child with additional needs, or reaching donkey-owning communities in the midst of man-made or natural disasters.

Right: Thanks to the generosity of our supporters and donors, we were able to rescue donkeys like April from terrible conditions across Europe in 2014.

Pages 8&9 www.thedonkeysanctuary.org.uk RESCUE AND REHOMING

member states), which helped us to engage OUR AIM IS NEVER TO TURN on many fronts to promote donkey welfare AWAY FROM A DONKEY throughout Europe. • Working closely with the equine charity OR MULE IN NEED. World Horse Welfare, we participated in the In the UK and Ireland we never turn away a development of the European Commission’s donkey in need, and in mainland Europe a codes of practice for the transport of equines core element of our work is to find homing across Europe. solutions for donkeys and mules that would • We ran an advocacy campaign to highlight the otherwise be without food, care or shelter. donkey-welfare issues in Santorini, Greece and worked with the Greek government and tourism sector to seek improvements. In 2014 we took in as many as 16 donkeys or • We began researching the industry of donkey mules every week, and our comprehensive welfare milk farming to ascertain what welfare problems network responded to a disturbing increase in the face donkeys. number of cases of abandonment and neglect (see Spice, pictured right). Increasing the number of donkeys rehomed into But behind every donkey’s individual story of rescue private homes, schools and other institutions to and recovery lies an incredible journey of compassion 3,000 by 2018: • This year the number of donkeys and mules in our involving our charity’s team of welfare advisers, Rehoming Scheme increased to 1,575, of whom vets, nurses, grooms and trainers — all made 154 were placed in schools and other institutions. possible by our wonderful supporters and donors. PRIORITIES OF 2015 HIGHLIGHTS OF 2014 • We anticipate the arrival of a further 800 WE TOOK IN 836 DONKEYS AND MULES donkeys into the care of our sanctuaries, and IN NEED AND CONTINUED TO PROVIDE will make space for them by increasing the LIFELONG CARE FOR 4,725 AT OUR number of donkeys cared for in our Rehoming SANCTUARIES AND A FURTHER 1,575 Scheme to 1,800. THROUGH OUR REHOMING SCHEME. • We will take key recommendations from our research last year, and work collaboratively with Providing an appropriate structure to support like-minded organisations to help reduce the the welfare needs of our donkeys across Europe: number of unwanted donkeys in Ireland. • We undertook 2,486 visits to check rehomed • We will continue to monitor and track donkey donkeys, investigate welfare complaints and welfare issues and hotspots, and identify areas visit markets and fairs. within Europe and internationally where further • A new donkey reception unit was opened in partnerships could be established, based on the Ireland to alleviate space at our emergency health and welfare needs of the donkeys. holding bases, and we converted two storage • Our organisation will be present at the 2015 barns into donkey housing in the UK. El Rocio Pilgrimage in Spain, which attracts over • In response to such a high number of unwanted one million people and up to 20,000 equines donkeys, particularly in Ireland, we started a each year. We are there primarily to assess research project to help us better understand and improve the animal welfare standards why so many need to come in to our care. overall. We will provide veterinary assistance as required and will encourage the enforcement of Identifying, tracking and monitoring donkey- animal-welfare legislation. welfare issues and, in collaboration with other like-minded organisations, being at the forefront of developing solutions and best practice: Right: Spice was rescued along with 12 other donkeys • We became involved with Eurogroup For in the middle of violent storms in January 2014. All Animals (who lobby in the European Parliament the donkeys have made a full recovery thanks to the on behalf of animal-welfare organisations in intervention of The Donkey Sanctuary (see page 23).

Pages 10&11 www.thedonkeysanctuary.org.uk DONKEYS IN THE COMMUNITY

of back protectors, campaigning for reduced WE AIM TO REDUCE THE loads, and training Animal Health Workers in SUFFERING OF DOMESTIC these communities. • We participated in the 7th International AND WORKING DONKEYS Colloquium on Working Equids, building on DUE TO NEGLECT, ILL- our professional networks with vets, farriers, harness-makers and educators. TREATMENT, ILLNESS, • We brought representatives from our IGNORANCE AND INJURY. collaborating organisations in 12 countries to our headquarters in the UK to share our Many donkeys, like Neron (pictured right), strategy, strengths and successes, explore would have endured great suffering without models of networking, and map our knowledge the intervention of international charities of donkeys and their welfare country by country. such as The Donkey Sanctuary. We will develop an active network that addresses Throughout the developing world poor and the needs of working and feral donkeys: struggling families rely on donkeys like Neron to • We visited the Turks and Caicos Islands to progress help them earn a living and put food on the table. plans for managing feral donkey populations. For the donkey this can be a tough and demanding • We helped influence political change in Kenya, existence. They are the ultimate ‘all-terrain vehicle’, including the integration of animal welfare into carrying goods, transporting food and drinking the school curriculum. water to the family home, and even carrying the • We helped to establish a key donkey-welfare children to school. symposium event in California to promote our work worldwide and extend our networks Our work alleviates the suffering of sick and across the Americas and Caribbean. injured donkeys through veterinary intervention, and by empowering communities, through PRIORITIES OF 2015 training and education, to treat their hard-working • Through our international projects we will donkeys with kindness and respect. increase our reach to 1.2 million donkeys and mules in poorer communities, and collect HIGHLIGHTS OF 2014 stronger evidence of the impact of our work on WE REACHED ONE MILLION WORKING the welfare of donkeys worldwide. DONKEYS AND MULES IN OUR FIVE • We will develop an app for mobile devices to LARGEST OVERSEAS PROJECTS ALONE. support global donkey-welfare assessment and to assess every donkey we encounter in terms of Our aim is to increase the number of donkeys its life, behaviour, Body Condition Score, wounds, reached by us and our partner organisations lameness, and other signs of injury and disease. from one to two million by 2018: • We will work with our regional networks by: • Our work to support domestic and working holding a Partner Workshop in South Africa; donkeys expanded across 30 countries, playing a central role at the World Equine including the UK, Cyprus, Egypt, Ethiopia, India, Association Conference in Mexico; and carrying Ireland, Italy, Kenya, Mexico and Spain. out a strong collaborative advocacy campaign • We funded projects in collaboration with other around the brick kilns of South Asia. animal-welfare organisations in countries like • We will carry out scoping projects to launch into Morocco, Nepal, Portugal, Romania, South new countries and areas, including Brazil, where Africa and Tanzania. feral donkeys are a particular cause for concern.

Everything we do is an opportunity for Right: reflection, learning and sharing: Neron would have endured a lot of suffering as I did • We reduced the number of donkeys with back- not know how to treat him myself and there sore injuries at brick kiln sites in Ahmedabad are no local vets.” and Dholpur, India, by increasing the availability Eberado, Mexico

Pages 12&13 www.thedonkeysanctuary.org.uk HUMAN DONKEY INTERACTIONS

Delivering detailed research by 2015 into the WE AIM TO IMPROVE THE specific effects of donkey-assisted therapy on LIVES OF BOTH DONKEYS physical, mental, social and emotional outcomes, alongside the benefit to donkeys. AND PEOPLE THROUGH • We launched a formal study entitled “Clinical POSITIVE HUMAN outcomes of donkey-assisted therapy for children with autism”. DONKEY INTERACTIONS. • We presented the work of the charity, including Donkeys are affectionate and intelligent our donkey-assisted therapy activities, at creatures and, where possible, we encourage Medi’Asinus, the first symposium on donkey their interaction with people for mutually interaction in Biella, Italy, as well as at a donkey- beneficial purposes. Their contribution welfare symposium in California. to humanity is constantly demonstrated through our donkey-assisted therapy PRIORITIES OF 2015 programme, whereby thousands of children • We will set up two new mobile services, from with additional needs, like Josie (pictured our Belfast and Ivybridge sanctuaries. right with Monty), enjoy positive interactions • We will launch a new mobile service in the with donkeys taken into our charity’s lifelong London area, using specially trained donkeys care. The donkeys enjoy the interaction, too. from our Sidmouth and Ivybridge sanctuaries that will be stabled at a base in Hertfordshire. Through our six centres in the UK, we provided Over a 12-week trial period, we will regularly visit an incredible 40,000 therapeutic riding sessions seven schools, where children with additional during the year, and from these centres we also needs will take part in riding or grooming, and provided mobile assisted therapy services, taking learn about donkey care — in readiness for donkeys out to enable people living in nursing introducing a regular mobile service. and residential homes and hospices to have close • We will complete our research projects into contact with our donkeys. the effects of donkey-assisted therapy and share all findings with our staff, volunteers and HIGHLIGHTS OF 2014 other partners. • We will consolidate the pilot phase of an WE IMPROVED THE LIVES OF THOUSANDS innovative life-skills and donkey-assisted- THROUGH POSITIVE HUMAN DONKEY therapy project in Ethiopia, where we work in INTERACTIONS. collaboration with Cheshire Services; we are also carrying out a scoping project along similar Increasing our donkey-assisted therapy lines in Sri Lanka. operations to 31 by 2018: • Mobile services branched out from our centres in Leeds and Manchester to new catchment areas, including Halifax, Preston and Rochdale, making our donkey-assisted therapy accessible to 3,000 children with additional needs. • We carried out a scoping project for a mobile service in the London area, which would be our first in the south-east. • We established new donkey-assisted therapy projects in Belgium, Ethiopia, Romania Right: Josie receives donkey-assisted therapy at and Portugal. our Ivybridge Sanctuary. Josie was born with a chromosomal abnormality and has developmental delays that particularly affect her speech. Her interaction with donkeys has improved her confidence and social interactions, and the physical act of riding has improved her balance.

Pages 14&15 www.thedonkeysanctuary.org.uk CONSIDERING THE FUTURE

We expect to see continued demand 18,000 DONKEYS AND on our rescue and rehoming operations MULES HAVE BEEN across Europe during 2015. We remain focused on alleviating the suffering of GIVEN PERMANENT millions of donkeys and mules by providing REFUGE AT THE DONKEY vital veterinary and community education interventions to support some of the world’s SANCTUARY SINCE OUR poorest communities. INSPIRATIONAL FOUNDER, We aim to reach 1.2 million donkeys through DR ELISABETH SVENDSEN, our international projects in 2015. As there is STARTED THE SANCTUARY an estimated population of 55 million donkeys and mules in the world, we will continue to work OVER 45 YEARS AGO. tirelessly to reach and help every one of them in need, however long it takes.

Many donkeys and mules need care and protection from a life of suffering and neglect, whilst others have a vital role to play in human survival and happiness. They are at the heart of everything we do at The Donkey Sanctuary — we are their biggest champions, keen to give them recognition for their contribution to humanity.

Right: These donkeys look so wonderful because they’ve been adopted by the students of a Kenyan school we work closely with. The donkeys now have an important role to play in helping to demonstrate the basic needs of donkeys to the wider community.

Pages 16 &17 www.thedonkeysanctuary.org.uk FINANCIAL REVIEW 2014

In 2014 The Donkey Sanctuary’s financial performance was extremely positive, with a record consolidated total income of £32.4m (2013: £30.7m), an increase of 5.5%. We increased total resources expended, including capital, to £30.7m (2013: £28.5m), an increase of 7.7%. We finish the year with free reserves coverage of 10 months of 2015’s planned expenditure. This represents a robust financial footing which enables us to extend our impact as we work towards the objectives of our five-year Strategic Plan.

INCOME It is important to recognise that The Donkey Sanctuary is reliant on the generosity of its supporters and the voluntary income they donate so that we can continue to help improve the quality of life for donkeys, mules and people worldwide. In 2014 our voluntary income grew by 7% compared with the previous year, in the form of both donations and bequests. We are extremely thankful to everyone who continues to support us.

2014 2014 2013 £’m £’m

Legacies 20.7 20.0 Donations 8.8 7.6 Investment income 0.5 0.6 Trading company income 1.3 1.1 Other 1.1 1.4 Total 32.4 30.7

WHERE OUR MONEY CAME FROM In 2014 our donation income grew by £1.2m (16%), reflecting our ongoing efforts to highlight donkey care and welfare issues and the benefits of donkey-assisted therapy to our supporters all over the world. During the year we built on the initial success of our new Adoption Scheme that was launched towards the end of 2013. We also worked very hard to introduce new supporters to the charity through fundraising efforts that aimed to inspire support and increase awareness and recognition of our impact.

Legacies continue to be a very important source of income for us and we are extremely grateful to all who have remembered us in their will. In 2014 legacy income grew to £20.7m (2013: £20.0m), an increase of 4%. This figure includes legacy income generated from all group entities including The Elisabeth Svendsen Trust for Children and Donkeys and The International Donkey Protection Trust.

Income generated from trading subsidiaries increased to £1.3m in 2014 (2013: £1.1m). During the year we were able to further develop our onsite events and activities so as to attract new audiences to our sanctuaries and centres. The resulting increase in visitor numbers helped to grow the income from our trading activities, including our restaurant and catering facilities, the sale of souvenirs from our visitor centres, and other events. All profits from our trading activities are donated back to the charity to further our objectives.

Pages 18&19 EXPENDITURE Total expenditure for the year, including investment in capital projects, grew to £30.7m (2013: £28.5m).

Following the first year of our new strategic plan we recognised the need to review and align the charitable expenditure categories in the Statement of Financial Activities to reflect our three operational strategic themes of Rescue and Rehoming, Donkeys in the Community, and Human Donkey Interactions. The result of updating the expenditure categories has been to slightly change the basis on which we allocate some of our support costs and therefore the comparative numbers for 2013 have been restated to remain consistent with the new basis of cost allocation. During the year operational expenditure on our charitable activities increased by over 5% to £24.1m (2013: £22.9m), with growth recognised across many areas of activity.

Across our sanctuaries in the UK and Ireland we have been coping with unprecedented levels of relinquishments, particularly in Ireland. While we continue to promote our Rehoming Scheme and find new homes for the donkeys and mules that come into our care, we have been accommodating the new arrivals across our farms and holding bases in the UK and in Ireland. This has had a related impact on the running costs of our Rescue and Rehoming activities.

Our activities involving Donkeys in the Community include many aspects of our wider European and international projects. During the year our costs increased slightly, reflecting the expansion of activities within our projects in Ethiopia, our collaboration and partnership activities with other like-minded organisations, and our professional networks with vets, farriers, harness-makers, educators and social workers. There was a slight reduction in the costs of our projects in Kenya and Mexico in 2014, as we reviewed local strategies in the context of the new charity-wide Strategic Plan.

During the year we increased our expenditure in Human Donkey Interactions, reflecting the early stages of growth in our donkey-assisted therapy activities, including the introduction of new mobile units to cover new catchment areas across the UK.

Our fundraising strategies are progressing. The Trustees recognise that, in order to secure the future success of the charity, there is a need to invest in new fundraising activity. This is reflected in the increase in the cost of generating voluntary income to £5.1m in 2014 (2013: £4.2m). By closely monitoring our fundraising campaigns we are well placed to direct our resources into those campaigns that generate the greatest returns and our progress during the year accorded with Trustees’ expectations. The proportion of our expenditure for fundraising and governance activities remains very low, at 18.7p (2013 (Restated): 16.6p) for every £1 of total expenditure.

HOW YOUR MONEY WAS SPENT:

2014 2014 2013 £’m £’m

Rescue and Rehoming 18.0 17.0 Donkeys in the Community 3.0 3.0 Human Donkey Interactions 3.1 2.9 Trading cost of goods sold 1.0 0.9 Cost of generating voluntary income 5.1 4.2 Governance costs 0.5 0.5 Total 30.7 28.5

www.thedonkeysanctuary.org.uk RESERVES The Trustees operate a reserves policy which they consider appropriate to ensure, barring unforeseen circumstances, the continued ability of The Donkey Sanctuary to meet its objectives. The Trustees are increasingly aware of the potential volatility of income levels and the significant proportion of our total income from legacies. In addition, due to the fact that we make considerable investment in projects outside of the UK, the Trustees and Executive Team are mindful of expenditure in local currencies funded by monies received in sterling. As far as it is possible, we aim to maintain free cash reserves to cover at least one year’s expenditure.

2014 2014 2013 £’m £’m

Restricted funds 2.5 2.6 Unrestricted Designated Funds — Fixed Assets 24.0 22.3 Unrestricted General Funds — Residual Legacies 11.7 10.9 Unrestricted General Funds — Free cash reserves 26.8 26.8 Total 65.0 62.6

Of the total reserves shown in the chart, £24.0m refers to fixed assets (most of which is land and donkey accommodation) and £11.7m is for legacies which have been advised to us but for which no cash has yet been received. In addition, £2.5m relates to funds earmarked by their donors for specific purposes, leaving free cash reserves of £26.8m which is equivalent to 10 months’ projected expenditure. Our aim is to maintain 12 months’ free cash reserves because, in the event of any economic downturn or other contingency, we still need sufficient funds to look after nearly 5,000 animals in our direct care.

Our reserves also reflect our funding requirement to meet our expansion plans within our strategic plan. This includes relocating our veterinary hospital, currently located within a building that cannot accommodate larger donkeys and mules, to a purpose-built hospital away from the heart of the main Sanctuary. The Donkey Sanctuary, which is recognised as a centre of excellence in the care and welfare of donkeys and mules around the world, requires a veterinary facility that can deal with any emergency that befalls an animal in our charge.

The new facility will be constructed at one of our nearby farms, thereby removing a bio-security hazard that has always been of concern, the existing hospital being right in the heart of the Sanctuary. Our new arrivals unit (for donkeys and mules) will also be moved to another farm for the same reason. The vacated facilities left behind will, amongst other things, be converted to enable us to enhance supporter engagement and communication of the breadth of our work around the world.

Right: One of our expert grooms, Joy Wilcox, with Tinker, Belle and foal Holly who were guaranteed a safe home for the rest of their lives, when their owner could no longer cope.

Pages 20&21 www.thedonkeysanctuary.org.uk THANK YOU

The Donkey Sanctuary relies entirely on RESCUE AND REHOMING donations to carry out its objectives. We are indebted to our supporters, donors, staff and quality-time volunteers, who have given such wonderful support and encouragement to our lifelong work. Without this unwavering support, we would not be able to strive towards a world where donkeys and mules live free from suffering through compassion, collaboration and creativity.

Here are just some examples of our successes from 2014 — thank you for all your support and generosity.

Young Worzel had been left to fend for himself and only by chance had he managed to find safety in a roadside field. His hooves were long and causing him discomfort, his unkempt belly showed all the tell-tale signs of neglect, and he was tatty and dirty. We trimmed his hooves, gave him a full veterinary examination, and he is loving life in our Northern Ireland base.

Pages 22&23 DONKEYS IN THE COMMUNITY HUMAN DONKEY INTERACTIONS

In India, we are working hard to improve the Five-year-old Cruz was a late developer and has welfare of donkeys employed at brick kilns, where significant physical and emotional challenges. He’s donkeys help their owners by carrying heavy loads a regular visitor to our Sidmouth Sanctuary where of bricks. However, wounds are common where he receives donkey-assisted therapy to help with his ill-fitting pack saddles rub the skin. Our project balance, core strength, speech and confidence. After is having a particularly positive impact at a kiln many visits watching his friends ride, Cruz plucked up in Ahmedabad. As a result of involving the local the courage to take his first ride, on Timothy, one of community in veterinary care and harness design, our wonderful adoption donkeys, and from that the donkeys now have better lives. moment Cruz’s confidence has soared.

THANK YOU FROM THE BOTTOM OF OUR HEARTS. Right: Spice has made a full recovery since being rescued in early 2014 and can enjoy a bright future at The Donkey Sanctuary.

www.thedonkeysanctuary.org.uk STRUCTURE, GOVERNANCE AND MANAGEMENT

The Donkey Sanctuary was founded in 1969 Refresher courses and updates are made available by Dr Elisabeth Svendsen MBE, became a to Trustees in order to ensure that they remain registered charity in 1973 and now operates aware of charity and governance developments. under the governance of a sole corporate The Trustees meet four times a year together trustee, The Donkey Sanctuary Trustee with the Executive Team members, at which time Limited. In 2014 the charity operated in strategic matters are discussed and considered. 30 project countries around the world Each Trustee meeting is planned to last a full day, through a combination of international with at least one meeting each year, wherever branches, subsidiary entities, holding bases possible, being held at one of the Sanctuary and collaborations with other like-minded projects away from the headquarters in Sidmouth, organisations. We carry out a range of Devon. This is so that the Trustees gain a better fundraising, donkey care and welfare and understanding of the differing types of work donkey-assisted therapy activities united under undertaken by the charity. one global The Donkey Sanctuary strategy. A Committee structure also operates to enable As a UK registered charity The Donkey Trustees and Executive Team members to provide Sanctuary incorporates overseas branches in a greater depth of direction and governance on Ethiopia and Mexico, as well as operating a network specific parts of the charity. Each Trustee will sit on of six UK donkey-assisted therapy centres. at least one of the Committees, although all can The Donkey Sanctuary’s charitable subsidiary attend all meetings if they so wish. The Executive undertakings operate in Ireland, Spain, Italy, Cyprus, Team members attend the meeting that is most Kenya and the Netherlands, whilst the charity’s UK appropriate to their role or specialism. The Chief trading subsidiaries, Donkey World Limited and Executive Officer attends all Committee meetings. The Hayloft (Donkey Sanctuary) Limited, provide To enable the Executive Team to operate additional income from the sale of goods and the effectively, the Trustees have put in place a operation of catering facilities for visitors to our schedule of devolved/delegated responsibility main Sanctuary in Sidmouth. which clearly sets out what the Chief Executive The charity has a sole corporate Trustee, The Officer and the Executive Team are authorised Donkey Sanctuary Trustee Limited, and the Board to act upon without recourse to the Trustees. consists of 10 Trustees (who are Directors for Any approval required for an item of expenditure, Companies Act purposes). The Trustees all have an contractual term or commitment that is outside interest in the care and welfare of animals but also the scope of this schedule must be put before the bring a mix of skills and knowledge necessary for a Board of Trustees for its approval. charity of this size. Trustees are appointed for a term of three OBJECTIVES AND ACTIVITIES years and can seek re-election. When a The charitable objects of The Donkey Sanctuary are: Trustee vacancy occurs, either as a result of the • For the benefit of the public, to relieve the departure of an existing member or when it is felt suffering of donkeys, mules and other such necessary to strengthen or enlarge the Board, animals in need of care and attention anywhere new members are sought that will replace or in the world and to provide and maintain rescue provide the necessary experience or expertise. homes or other facilities for the reception, care, The induction process for any newly appointed treatment and security of such animals. Trustee comprises an initial meeting with the • To promote humane behaviour towards such Chief Executive Officer, together with a series of animals by providing them with appropriate reviews with the appropriate Executive and Senior care, protection, treatment and security and to Management Team members to supplement educate the public in their welfare of and the information provided in the induction pack prevention of cruelty and suffering amongst and impart knowledge of the operational and such animals. administrative aspects of the charity. Details of • To benefit those persons whose lives are Trustees’ responsibilities are made available to new enhanced by working donkeys and mules by Trustees from Charity Commission publications. improving the health and welfare of such animals.

Pages 24&25 • To bring enjoyment and pleasure to enrich the would be incorporated within the charity. Under lives of children, young people and adults who this uniting direction, IDPT shall be treated as have additional needs, special educational needs, forming part of The Donkey Sanctuary for the disabilities or illnesses in order to enhance their purposes of Part 4 (registration) and Part 8 education and make their lives better through (accounting) of the Charities Act 2011. appropriate provision of facilities for riding, On 2 December 2011 the Directors of handling or coming into contact with such animals. The Donkey Sanctuary Trustee Limited (“The Company”) and the Incorporated Trustees of The Towards the end of 2013 the charity completed its Elisabeth Svendsen Trust for Children and Donkeys Strategic Plan, “Our Journey Continues...”, which (EST) agreed to proceed with the merging of EST’s incorporates our new vision, mission and values as activities into those of The Donkey Sanctuary, well as setting our strategic aims and objectives for with the intention that The Company would act as the five-year period to 2018, including an outlook Trustee of both The Donkey Sanctuary and EST. for the next ten to twenty years. On 21 December 2011 the Charity Commission Our goal is to bring care to two million donkeys granted a Scheme under which EST would be in 40 countries by 2018. Our Strategic Plan incorporated within The Donkey Sanctuary, and focuses on four areas: agreed to the new objects for the merged charity. The effective date of the Scheme was 1 January 1 RESCUE AND REHOMING 2012 and under this uniting direction EST is Aim: Never to turn away from donkeys and mules treated as forming part of The Donkey Sanctuary in need and provide lifelong care for them in the for the purposes of Part 4 (registration) and Part 8 UK and Ireland. (accounting) of the Charities Act 2011.

2 DONKEYS IN THE COMMUNITY SUBSIDIARY UNDERTAKINGS Aim: To reduce the suffering of domestic and The Donkey Sanctuary has 10 subsidiary working donkeys due to neglect, ill-treatment, undertakings. Full details in respect of the illness, ignorance and injury. subsidiaries’ activities and performance can be found in Note 24 of the accounts. 3 HUMAN DONKEY INTERACTIONS Aim: To improve the lives of both donkeys and INTERNAL CONTROLS AND people through positive human donkey interactions. RISK MANAGEMENT The Trustees have responsibility for the oversight 4 DEVELOPING THE ORGANISATION of risk management within The Donkey Sanctuary. Aim: All staff and partners embody our core In line with recommendations of the Statement values of professional competence, excellent of Recommended Practice for Accounting communication, team work, effective use of and Reporting by Charities, the Trustees have resources, and personal effectiveness, so acting as approved a risk-management process to assess valuable ambassadors for The Donkey Sanctuary. business risk and implement risk management strategies. A risk register forms the basis of the CONNECTED CHARITIES ongoing risk management process. The Elisabeth Svendsen Trust for Children The Trustees have reviewed the major risks and Donkeys. Charity Number 801070. Charity and the risk management processes within the objects: To bring together children and adults with charity and concluded that operational and additional needs with donkeys. financial controls, together with the internal audit The International Donkey Protection Trust programme, are sufficient to mitigate such risks. Charity Number 271410. Charity objects: To help Senior Managers and the Executive Team donkeys and mules anywhere in the world and review risk on a regular basis, assessing the impact to ease their suffering through by care and the and likelihood of individual risk, the actions that education of their owners. have been taken to mitigate or control risks, the On 21 December 2010 the Charity effectiveness of our risk management controls and Commission granted a Scheme under which The whether there are new risks for the charity that International Donkey Protection Trust (IDPT) need to be considered.

www.thedonkeysanctuary.org.uk Actions taken during the course of the year have GRANT MAKING served to either increase the strength of our risk The Donkey Sanctuary continues to provide management, or to reduce the probability of the grant funding to overseas organisations whose risk occurring. Following the implementation of objectives are similar to those of the charity. our enhanced risk register we have begun the Longstanding relationships exist with three process of embedding the management of risk overseas organisations: The Donkey Sanctuary, throughout the organisation. India and The Society for Protection and Welfare It is recognised that systems can only provide of Donkeys and Mules in Egypt were established reasonable, and not absolute, assurance that major by the charity for the furtherance of its objects risks have been adequately managed. in India and Egypt; The Faculty of Veterinary Medicine at the University of Ethiopia is an PUBLIC BENEFIT REQUIREMENT organisation with which the charity has operated The Trustees confirm that they have complied donkey health and welfare projects for many with the duty in Section 17 of the Charities Act years. Within all three of these projects, well- 2011 to have due regard to public benefit guidance established processes exist to monitor progress, published by the Charity Commission in determining including periodic detailed financial reporting to the activities undertaken by the charity. the Executive Team. The advancement of animal welfare is specified The charity receives numerous applications as an admissible charitable purpose within the for grant funding throughout each year from Charities Act and is taken to include any purpose individuals and organisations, and each application directed towards the prevention or suppression is given careful consideration by the Executive of cruelty to animals or the prevention or relief Team in the context of the charity’s overall of suffering by animals. Examples of the sorts of strategic objectives and also in terms of financial charitable purposes falling within this description resources available. All grant-funding agreements include: are subject to approval by the Executive Team and • Charities promoting kindness and to prevent or contain provision for regular reporting of progress suppress cruelty to animals. against set objectives, as well as providing suitable • Animal sanctuaries. financial reporting. • The provision of veterinary care and treatment. • Charities concerned with the care and re- INVESTMENT POLICY homing of animals that are abandoned, The Trustees have established an investment mistreated or lost. policy for the charity that covers: • Feral animal control (e.g. neutering). • an investment portfolio in equities, bonds and The relief of those in need, by reason of youth, other listed investments, long-term in nature age, ill-health, disability, financial hardship or and administered by investment managers on a other disadvantage is also an admissible charitable discretionary basis. purpose within the Charities Act and is taken to • cash held in term deposit accounts administered include our donkey-assisted therapy activities through a combination of fund managers and and our work in many parts of the world where the Executive Team. donkeys and mules transport goods and people. The charity’s listed investments are managed Improving the care and welfare of the animals through a discretionary fund management directly impacts on the lives of those that depend agreement with Investec Wealth & Investment on them. Limited (Investec). The agreement confirms the The Trustees are satisfied that the aims and stated investment objective to preserve and grow objectives of the charity and the sections that the invested sum through a balanced investment follow demonstrate how The Donkey Sanctuary portfolio of income and capital growth whilst met its charitable purposes in 2014, and how its adopting a medium-risk approach. principal achievements under its respective areas The investment policy includes the Trustees’ of charitable activity meet the public benefit approach to ethical investment. The Trustees requirements. have due regard for the underlying principle that their power of investment has to be used to further the purposes of the charity, and that those

Pages 26&27

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

Under the trust deed and rules of the charity preparation and dissemination of financial and charity law, the Trustees are responsible for statements may differ from legislation in other preparing the Trustees’ Annual Report and the jurisdictions. 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; • 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

Pages 28&29

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 2014 set out on 31 to 66. 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 28 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 2014 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 2014 29

The Donkey Sanctuary

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 December 2014

Unrestricted Restricted Total Total Notes Funds Funds 2014 2013 Incoming Resources £’000 £’000 £’000 £’000 Incoming Resources from Generated Funds Voluntary income 2 28,966 568 29,534 27,576 Activities for generating funds 3 1,305 - 1,305 1,138 Investment income 4 502 - 502 565 30,773 568 31,341 29,279 Other incoming resources Gain on disposals of fixed assets 25 - 25 74 Realised gain on disposals of fixed asset investments 902 - 902 1,153 Other income 167 - 167 216

Total incoming resources 31,867 568 32,435 30,722

Resources expended Costs of generating funds Cost of generating voluntary income 5 5,128 - 5,128 4,210 Fundraising trading: cost of goods sold and other 6991 - 991 860 costs Investment management costs 82 - 82 79 6,201 - 6,201 5,149 Cost of Charitable activities 8 Rescue and Rehoming 16,722 93 16,815 16,188 Donkeys in the Community 2,657 309 2,966 2,922 Human Donkey Interactions 2,857 260 3,117 2,820 22,236 662 22,898 21,930

Governance Costs 7 368 - 368 348

Total resources expended 8 28,805 662 29,467 27,427

Net incoming/(outgoing) resources before other 3,062 (94) 2,968 3,295 recognised gains and losses Unrealised gain/(loss) on revaluation of investment (288) - (288) 847 assets Gain/(loss) on foreign currency translation (204) - (204) 135 Net movement in funds 2,570 (94) 2,476 4,277 Fund balances brought forward at 1 January 60,004 2,553 62,557 58,280

Total funds carried forward at 31 December 20 62,574 2,459 65,033 62,557

All of the activities relate to continuing operations.

The accompanying notes form an integral part of the financial statements.

TRUSTEES’ REPORT AND ACCOUNTS 2014 31

The Donkey Sanctuary

CONSOLIDATED CASH FLOW STATEMENT

Year ended 31 December 2014 Notes 2014 2013 £'000 £'000 £'000 £'000 Net cash inflow from operating activities (i) 1,861 3,475

Returns on investments Interest received 54 40 Income from securities 450 498 Net cash inflow from returns on investments 504 538 Capital expenditure and financial investment Purchase of fixed asset investments (6,277) (9,213) Purchase of intangible fixed assets (205) (105) Purchase of tangible fixed assets (912) (983) Receipts from sale of tangible fixed assets 68 125 Receipts from sale of fixed asset investments 5,968 8,730 Net transfer of fixed asset investments from/(to) (600) 50 short-term cash deposits Net cash outflow from capital expenditure (1,958) (1,396) and financial investment

Increase in cash (ii) & (iii) 407 2,617

TRUSTEES’ REPORT AND ACCOUNTS 2014 33

The Donkey Sanctuary Notes to the consolidated cash flow statement

i) Reconciliation of net incoming resources to net cash inflow from operating activities 2014 2013 £'000 £'000 Net incoming resources before other recognised gains and losses 2,968 3,295 Depreciation charges 910 943 Amortisation charges 76 64 Loss on disposal of tangible fixed assets 19 18 Currency translation account 41 44 Gain on disposal of tangible fixed assets (25) (73) Gain on disposal of fixed asset investments (902) (1,153) Non-cash asset transfers - 23 Investment income (502) (565) Donated assets retained - 187 Decrease/(Increase) in Stock 6 42 Decrease/(Increase) in Debtors (682) 164 Increase/(Decrease) in Creditors (48) 486 Net cash inflow from operating activities 1,861 3,475 ii) Changes in cash during the period 2014 2013 £'000 £'000 Opening balance 10,181 7,564 Net cash inflow 407 2,617 Closing balance 10,588 10,181 iii) Analysis of cash as shown in the group balance sheet Change in year 2014 2013 2012 2014 2013 £'000 £'000 £'000 £'000 £'000 Short-term deposits 5,800 6,362 5,084 (562) 1,278 Cash at bank and in hand 4,788 3,819 2,480 969 1,339

10,588 10,181 7,564 407 2,617

The accompanying notes form an integral part of the financial statements.

TRUSTEES’ REPORT AND ACCOUNTS 2014 34

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 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 2014 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 25).

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 23. 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 2014 35

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 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.

Following the completion of the first year of our new strategic plan we recognised the need to review and align the charitable expenditure categories in the Statement of Financial Activities to reflect our three operational strategic themes of Rescue and Rehoming, Donkeys in the Community and Human Donkey Interactions. The result of updating the expenditure categories has been to slightly change the basis on which we allocate some of our support costs and hence the comparative numbers for 2013 have been restated to remain consistent with the new basis of cost allocation. e) Value added tax Irrecoverable VAT is included in the cost of the items reported in the financial statements.

TRUSTEES’ REPORT AND ACCOUNTS 2014 36

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 Accounting policies (continued) 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. 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:

TRUSTEES’ REPORT AND ACCOUNTS 2014 37

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 Accounting policies (continued)

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.

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

Stock of feed, straw and bedding Major bought in items are individually identified and valued at 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

TRUSTEES’ REPORT AND ACCOUNTS 2014 38

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 Accounting policies (continued) n) Fund accounting

i. Unrestricted funds are expendable at the discretion of the trustees 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 trustees’ 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 trustees 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.

2. Voluntary income

Unrestricted Restricted Total Total funds funds 2014 2013 £’000 £’000 £’000 £’000 Donations 8,610 155 8,765 7,619 Legacies 20,356 413 20,769 19,957 28,966 568 29,534 27,576

3. Activities for generating funds

Unrestricted Restricted Total Total funds funds 2014 2013 £’000 £’000 £’000 £’000

Rental income 25 - 25 25 Sale of donated assets 2 - 2 1 Trading turnover 1,278 - 1,278 1,112 1,305 - 1,305 1,138

TRUSTEES’ REPORT AND ACCOUNTS 2014 39

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 4. Investment income

Unrestricted Restricted Total Total funds funds 2014 2013 £’000 £’000 £’000 £’000

Listed and unlisted investments 437 - 437 470 Charity investment bond - - - 18 Building society and bank interest 65 - 65 77 502 - 502 565

5. Costs of generating voluntary income

Unrestricted Restricted Total Total funds funds 2014 2013 £’000 £’000 £’000 £’000

Fundraising 5,112 - 5,112 4,195 Legacies 16 - 16 15 5,128 - 5,128 4,210

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

Unrestricted Restricted Total Total funds funds 2014 2013 £’000 £’000 £’000 £’000

Cost of sales 204 - 204 201 Trading costs of subsidiary undertakings 787 - 787 659 991 - 991 860

TRUSTEES’ REPORT AND ACCOUNTS 2014 40

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 7. Governance Costs

Unrestricted Restricted Total Total funds funds 2014 2013 £’000 £’000 £’000 £’000 Audit and other financial services Audit fees - external audit 25 - 25 32 Audit fees - overseas audit 20 - 20 20 Other financial services provided by the auditors

Consultancy & financial advice - - - 2 Trustees' Expenses 36 - 36 24 Apportionment of costs supporting Governance 287 - 287 270 activities 368 - 368 348

The aggregate amount of reimbursed Trustee Director expenses was £21k (2013: £13k) in respect of travel accommodation and subsistence for ten (2013: eight) Trustee Directors during the year, and direct meeting costs of £15k (2013: £11k). There were no Trustee Director expenses outstanding for reimbursement at the end of the year.

TRUSTEES’ REPORT AND ACCOUNTS 2014 41

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 8. Total resources expended

Other direct Grant funding Total Total Staff costs costs of activities Support costs 2014 2013 £’000 £’000 £’000 £’000 £’000 £’000 (Note 11) (Note 10) (Note 9) Cost of generating funds Cost of generating voluntary income Fundraising and Marketing 379 3,208 - 1,525 5,112 4,195 Legacies - - - 16 16 15

Fundraising trading: Costs of goods sold and other costs Cost of sales 166 13 - 25 204 201 Trading costs of subsidiary undertakings - 787 - - 787 659

Investment management costs - 72 - 10 82 79

Charitable activities Rescue and Rehoming 6,116 6,176 182 4,341 16,815 16,188 Donkeys in the Community 656 983 602 725 2,966 2,922 Human Donkey Interactions 1,509 594 2 1,012 3,117 2,820

Governance costs - 81 - 287 368 348

Expenditure in Support of Activities 4,615 3,287 39 (7,941) - - 13,441 15,201 825 - 29,467 27,427

Unrestricted Restricted Total Total funds funds 2014 2013 £’000 £’000 £’000 £’000 Cost of generating funds Cost of generating voluntary income Fundraising 5,112 - 5,112 4,195 Legacies 16 - 16 15 Fundraising trading: Costs of goods sold and other costs

Cost of sales 204 - 204 201 Trading costs of subsidiary undertakings 787 - 787 659

Investment management costs 82 - 82 79

Charitable activities Rescue and Rehoming 16,722 93 16,815 16,188 Donkeys in the Community 2,657 309 2,966 2,922 Human Donkey Interactions 2,857 260 3,117 2,820

Governance costs 368 - 368 348

28,805 662 29,467 27,427

TRUSTEES’ REPORT AND ACCOUNTS 2014 42

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 9. Support costs allocation

Supporter Direct Finance, Information Human Directorate services & support legal & admin. technology resources comms costs 2014 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Cost of Generating Voluntary Income Fundraising 98 152 58 42 456 719 1,525 Legacies 10 - 6 - - - 16 Fundraising trading: Costs of goods sold 3 8 1 1 10 2 25 Investment management costs 2 3 - - 4 1 10 Cost of Charitable Activities Rescue and Rehoming 343 634 258 456 1,321 1,329 4,341 Donkeys in the Community 60 103 30 129 235 168 725 Human Donkey Interactions 54 95 54 151 217 441 1,012 Governance Costs 151 130 - - 5 1 287

721 1,125 407 779 2,248 2,661 7,941

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

Supporter Direct Finance, Information Human Directorate services & support legal & admin. technology resources comms costs 2013 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Cost of Generating Voluntary Income Fundraising 122 131 51 34 401 366 1,105 Legacies 10 - 5 - - - 15 Fundraising trading: Costs of goods sold 4 7 1 1 11 3 27 Investment management costs 3 3 - - 4 1 11 Cost of Charitable Activities Rescue and Rehoming 447 590 254 357 1,192 1,405 4,245 Donkeys in the Community 75 90 26 122 203 292 808 Human Donkey Interactions 73 88 45 114 198 282 800 Governance Costs 145 119 - - 5 1 270

879 1,028 382 628 2,014 2,350 7,281

Basis of allocation: Estimated time & Estimated time & Supported Headcount Estimated time & Headcount & expenditure expenditure workstations expenditure 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 2014 43

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 10. Grants and Donations

Donkeys in Human Rescue and the Donkey Rehoming Community Interactions 2014 2013 Institutional £’000 £’000 £’000 £’000 £’000 Overseas for the welfare of donkeys All About Animals - Gambia - 6 - 6 7 Animal Nepal - 42 - 42 40 Arusha Society for the Protection of Animals (ASPA) - 8 - 8 10 Bonaire Donkey Sanctuary - Dutch Antilles - - - - 9 Egyptian Society for the Protection and - 133 - 133 134 Welfare of Working Animals Ethiopia - NGO Regional Projects - 22 - 22 9 DHWP - Faculty of Veterinary Medicine - 128 - 128 101 at the University of Ethiopia Greek Animal Welfare Fund 19 - - 19 18 Kenya Small Grants Workshop - - - 38 Meru Animal Welfare Org (MAWO) - Tanzania - 17 - 17 - Moroccan Muleteers Outdoor Trekking Research - 12 - 12 14 Mwamfumba Cooperative - Zambia - 11 - 11 - Nicaragua Small Grants Projects - - - - 6 NSPCA - South Africa - 34 - 34 12 Romania Vet Projects - - - 7 T&C Society for the Prevention of - 9 - 9 - Cruelty to Animals - Turks & Caicos Tanzanian Animal Protection Organisation (TAPO) - 8 - 8 - TAWESO - Tanzania - 15 - 15 9 The Donkey Sanctuary - India - 136 - 136 142 World Horse Welfare - 8 - 8 - Items £5,000 or less 11 13 - 24 55 30 602 - 632 611

Donkeys in Human Rescue and the Donkey Rehoming Community Interactions 2014 2013 Institutional £’000 £’000 £’000 £’000 £’000 UK for the welfare of donkeys Royal Veterinary College (22) - - (22) - Progressive Ideas 8 - - 8 - Veterinary research grants: University of Bristol 47 - - 47 127 University of Glasgow 102 - - 102 98 University of Liverpool 13 - - 13 - Items £5,000 or less 4 - 2 6 2 152 - 2 154 227 Expenditure in support of activities - 39 - 39 29 Total 182 641 2 825 867

TRUSTEES’ REPORT AND ACCOUNTS 2014 44

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 10. Grants and donations (continued)

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 2014 include those made to the Association in Egypt (ESPWWA), 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 2014. All grants made are to institutions. Expenditure in support of activities comprises salary costs.

As at 31 December 2014 full provision has been made for the following grants for 2015 and beyond. These research projects had either started or were fully committed to before the period end:

£’000

Veterinary research grant – University of Bristol 92

Veterinary research grant – University of Glasgow 150

Veterinary research grant – University of Liverpool 13

11. Staff costs

2014 2013 £’000 £’000 Staff costs for the year were as follows: Salary costs 11,454 10,895 Social security costs 1,131 1,109 Pension contributions 856 772 13,441 12,776

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

2014 2013 No. No. Rescue and Rehoming 221 220 Donkeys in the Community 71 65 Human Donkey Interactions 69 66 Fundraising 12 11 Trading 8 8 Support activities 157 150

538 520

TRUSTEES’ REPORT AND ACCOUNTS 2014 45

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 11. Staff costs (continued)

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

2014 2013 No. No. £60,001 -£70,000 - - £70,001 -£80,000 6 5 £80,001 -£90,000 - 1 £90,001 -£100,000 - - £100,001 -£110,000 - 1 £110,001 -£120,000 1 - 7 7

Six of the above employees (2013: six) have retirement benefits accruing to them under money purchase pension schemes and the contributions in the year in respect of these were £70k (2013: £75k). 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.

12. Intangible fixed assets: Software

Group Charity £’000 £’000 Cost At 1 January 2014 827 794 Additions 205 202 Disposals - - At 31 December 2014 1,032 996

Amortisation At 1 January 2014 166 163 Charge for the year 76 73 At 31 December 2014 242 236

Net book value At 31 December 2014 790 760

At 31 December 2013 661 631

Assets under construction amounting to £140k (2013:£nil) have not been amortised.

TRUSTEES’ REPORT AND ACCOUNTS 2014 46

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 13. Tangible fixed assets

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 2014 1,567 23,743 3,911 3,563 32,784 Additions - 556 224 266 1,046 Disposals - - (359) (121) (480) Foreign currency translation adjustment - (250) (31) (45) (326) At 31 December 2014 1,567 24,049 3,745 3,663 33,024

Depreciation At 1 January 2014 68 4,920 2,877 2,638 10,503 Charge for the year 34 405 250 221 910 Adjustment for disposals - - (309) (110) (419) Foreign currency translation adjustment - (23) (26) (31) (80) At 31 December 2014 102 5,302 2,792 2,718 10,914

Net book value At 31 December 2014 1,465 18,747 953 945 22,110

At 31 December 2013 1,499 18,823 1,034 925 22,281

The net book value represents fixed assets used for: Direct charitable purpose Rescue and Rehoming - 16,602 617 770 17,989 Donkeys in the Community - 31 133 5 169 Human Donkey Interactions 1,465 1,952 122 61 3,600

Other purposes Fundraising - - - 7 7 Trading - - 80 13 93 Administration and support - 162 1 89 252 1,465 18,747 953 945 22,110

The leasehold property at the Birmingham Donkey Assisted Therapy Centre at Sutton Park is held on a 75 year lease granted on 30 January 1995 by Birmingham City Council (from 25 November 1993). The current rental is £3,750 per annum, payable half-yearly in advance and subject to a review every five years. The last review was due to take place on 25 November 2013.

TRUSTEES’ REPORT AND ACCOUNTS 2014 47

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 13. Tangible fixed assets (continued) The leasehold property at the Leeds Donkey Assisted Therapy Centre at Lineham Farm is held on a 50 year lease granted on 23 November 1998 by Leeds City Council. The lease rental is currently at the rate of £1,500 per annum, payable half-yearly in advance. A rent review has been agreed until the end of the year beginning 23 November 2017 as follows: 23 November 2014 £1,750 23 November 2015 £2,000 23 November 2016 £2,250 23 November 2017 £2,500

The leasehold property at the Manchester Donkey Assisted Therapy Centre at Debdale Park is held on a 50 year lease granted on 10 July 2003 by Manchester City Council. From 10 July 2013 the lease rental is £1,100 per annum payable quarterly in advance on the usual quarter days. The next rent review is due to take place on 10th July 2018.

Freehold land amounting to £3,567k has not been depreciated (2013: £3,637k) and assets under construction amounting to £327k (2013: £58k) are included within freehold land and buildings and equipment additions. These have not been depreciated.

TRUSTEES’ REPORT AND ACCOUNTS 2014 48

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 13. Tangible fixed assets (continued)

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 2014 1,567 20,091 3,048 2,629 27,335 Additions - 440 190 179 809 Disposals - - (278) (91) (369) At 31 December 2014 1,567 20,531 2,960 2,717 27,775

Depreciation At 1 January 2014 68 4,611 2,147 1,930 8,756 Charge for the year 34 350 196 153 733 Adjustment for disposals - - (228) (80) (308) At 31 December 2014 102 4,961 2,115 2,003 9,181

Net book value At 31 December 2014 1,465 15,570 845 714 18,594

At 31 December 2013 1,499 15,480 901 699 18,579

The net book value represents fixed assets used for: Direct charitable purpose Rescue and Rehoming - 13,425 521 544 14,490 Donkeys in the Community - 31 120 3 154 Human Donkey Interactions 1,465 1,952 123 61 3,601

Other purposes Fundraising and Marketing - - - 7 7 Trading - - 80 10 90 Administration and support - 162 1 89 252 1,465 15,570 845 714 18,594

Freehold land amounting to £2,594k has not been depreciated (2013: £2,594k) and assets under construction amounting to £269k (2013: 42k) are included within freehold land and buildings additions. These have not been depreciated.

TRUSTEES’ REPORT AND ACCOUNTS 2014 49

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 14. Fixed asset investments

Group Charity 2014 2013 2014 2013 Valuation £’000 £’000 £’000 £’000 Opening balance 19,394 17,149 19,544 17,111 Additions 6,277 9,213 6,277 9,213 Disposals and withdrawals (5,066) (7,765) (5,066) (7,577) Transfers 600 (50) 600 (50) Unrealised gain/(loss) (288) 847 (288) 847 Closing balance 20,917 19,394 21,067 19,544

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

Indirect investment in UK listed securities UK fixed interest bonds 2,221 1,946 2,221 1,946 Property backed fund 946 150 946 150 UK equities 7,332 7,051 7,332 7,051 Cash funds 120 400 120 400 Alternative assets 519 155 519 155 Indirect investment in overseas listed securities International bonds 263 329 263 329 Overseas equities 5,386 5,252 5,386 5,252 Total listed investments 16,787 15,283 16,937 15,433

Other Programme-related investments - 80 - 80 Investment management cash accounts 138 652 138 652 Building society deposits 1,042 1,029 1,042 1,029 Cash-based investment deposits 2,950 2,350 2,950 2,350

20,917 19,394 21,067 19,544

No individual investments held at 31 December 2014 or 31 December 2013 had a market value in excess of 5% of the total market value of listed investments.

TRUSTEES’ REPORT AND ACCOUNTS 2014 50

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 15. Stock

Group Charity 2014 2013 2014 2013 £'000 £'000 £'000 £'000 Trading stock (including charity stock) 326 280 68 61 Stock of feed, straw and bedding 123 163 72 110 Veterinary supplies, equipment, stores and other 130 142 74 92 579 585 214 263

16. Debtors and prepayment

Group Charity 2014 2013 2014 2013 £'000 £'000 £'000 £'000 Amounts due from subsidiary undertakings and - - 473 277 connected parties Other debtors 106 40 10 60 Income tax recoverable 64 345 64 345 Residual legacies 11,789 10,949 11,038 10,612 Prepayments 175 135 170 141 Accrued income 48 33 47 28 12,182 11,502 11,802 11,463

17. Creditors: amounts falling due within one year

Group Charity 2014 2013 2014 2013 £'000 £'000 £'000 £'000 Amounts due to subsidiary undertakings and - - 90 131 connected parties Accounts payable 676 794 476 568 Social security and other taxes 340 297 231 209 Other creditors 468 396 384 334 Accruals 649 560 420 406 2,133 2,047 1,601 1,648

TRUSTEES’ REPORT AND ACCOUNTS 2014 51

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 18. Pension scheme

Defined Contribution Scheme

The charity provides a Group Personal Pension Scheme operated by AEGON Scottish Equitable. Three categories of employer contributions operate within the scheme which are tiered according to seniority. 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 some senior staff who have remained on a non- contributory category. The defined contribution nature of the scheme avoids the potential volatility of employer pension costs experienced by the previously operated defined benefit schemes.

19. 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 2014 the group was committed to spend the following amounts in 2014 and beyond: 2014 2013 £’000 £’000

Authorised but not contracted at period end 3,342 1,643

20. 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 2014 52

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 20. Analysis of movement in funds (continued)

Analysis of movement in funds - Group Transfers Other Balance at Incoming Outgoing Between recognised Balance at Group 01.01.14 Resources Resources funds gains 31.12.14 £'000 £'000 £'000 £'000 £'000 £'000 Restricted funds Tangible fixed asset funds Donkey Sanctuary: Farm Buildings (UK) 332 46 (8) - - 370 Veterinary & Isolation Facilities 399 - (9) - - 390 Veterinary Equipment 19 - (4) - - 15 Farm Equipment and Machinery 15 18 (7) - - 26 Education & Activities Vehicles 4 - (4) - - - Donkey Assisted Therapy (Formerly EST): DAT Centres 1,432 - (33) (7) - 1,392 DAT Centre Equipment 28 - (17) - - 11 DAT Centre Vehicles 35 - (10) - - 25 Education & Activities Vehicles 40 - (8) 2 - 34

Current asset fund Donkey Sanctuary: Turks & Caicos 187 - (9) - - 178 Donkey welfare UK 10 - (10) - - - Donkeys in the Community - 3 - - - 3 Donkey Assisted Therapy (Formerly EST): DAT Centres 17 - (17) - - - DAT Centre Equipment 32 - (24) 7 - 15 Education & Activities Vehicles 2 - - (2) - -

Operating cost funds Donkey Sanctuary: Rescue and Rehoming - 43 (43) - - - Donkeys in the Community - 308 (308) - - - Donkey Assisted Therapy (Formerly EST): DAT Centres 1 150 (151) - - Total restricted funds 2,553 568 (662) - - 2,459

Unrestricted funds General Fund 37,723 31,867 (27,612) (2,891) (492) 38,595 Designated funds 22,281 - (1,193) 2,891 - 23,979

Total unrestricted funds 60,004 31,867 (28,805) - (492) 62,574

Total group funds 62,557 32,435 (29,467) - (492) 65,033

TRUSTEES’ REPORT AND ACCOUNTS 2014 53

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 20. Analysis of movement in funds (continued)

Analysis of movement in funds - Charity Transfers Other Balance at Incoming Outgoing Between recognised Balance at Charity 01.01.14 Resources Resources funds gains 31.12.14 £'000 £'000 £'000 £'000 £'000 £'000 Restricted funds Tangible fixed asset funds Donkey Sanctuary: Farm Buildings (UK) 332 46 (8) - - 370 Veterinary & Isolation Facilities 399 - (9) - - 390 Veterinary Equipment 19 - (4) - - 15 Farm Equipment and Machinery 15 18 (7) - - 26 Education & Activities Vehicles 4 - (4) - - - Donkey Assisted Therapy (Formerly EST): DAT Centres 1,432 - (33) (7) - 1,392 DAT Centre Equipment 28 - (17) - - 11 DAT Centre Vehicles 35 - (10) - - 25 Education & Activities Vehicles 40 - (8) 2 - 34

Current asset fund Donkey Sanctuary: Turks & Caicos 187 - (9) - - 178 Donkey welfare UK 10 - (10) - - - Donkeys in the Community 3 - - - 3 Donkey Assisted Therapy (Formerly EST): DAT Centres 17 - (17) - - - DAT Centre Equipment 32 - (24) 7 - 15 Education & Activities Vehicles 2 - - (2) - -

Operating cost funds Donkey Sanctuary: Rescue and Rehoming - 43 (43) - - - Donkeys in the Community - 308 (308) - - - Donkey Assisted Therapy (Formerly EST): - - - - - DAT Centres 1 150 (151) - - - Total restricted funds 2,553 568 (662) - - 2,459

Unrestricted funds General Fund 37,570 29,323 (25,901) (2,732) (288) 37,972 Designated funds 18,265 - (767) 2,732 - 20,230 Total unrestricted funds 55,835 29,323 (26,668) - (288) 58,202

Total charity funds 58,388 29,891 (27,330) - (288) 60,661

TRUSTEES’ REPORT AND ACCOUNTS 2014 54

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 21. Designated funds

Designated fund movements - Group

Balance at Additional Depreciation Balance at 01.01.14 Transferred approved Released and disposals 31.12.14 £'000 £'000 £'000 £'000 £'000 £'000

Intangible fixed assets fund 1,048 - 209 - (76) 1,181 Tangible fixed assets fund 21,233 - 2,682 - (1,117) 22,798 22,281 - 2,891 - (1,193) 23,979

Designated fund movements - Charity Balance at Additional Depreciation Balance at 01.01.14 Transferred approved Released and disposals 31.12.14 £'000 £'000 £'000 £'000 £'000 £'000

Intangible fixed assets fund 1,018 - 206 - (73) 1,151 Tangible fixed assets fund 17,247 - 2,526 - (694) 19,079 18,265 - 2,732 - (767) 20,230

Intangible Fixed Assets Fund – this fund represents the amalgamation of: a) Unrestricted income funds that could only be released by disposing of intangible 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.

Tangible Fixed Assets Fund – this fund represents the amalgamation of: a) Unrestricted income funds that could only be released by disposing of tangible 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 19.

TRUSTEES’ REPORT AND ACCOUNTS 2014 55

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 22. Analysis of net assets – Group

Total group Intangible Tangible fixed Current Current net assets at fixed assets assets Investments assets liabilities 31.12.14 £'000 £'000 £'000 £'000 £'000 £'000

Restricted funds - 2,263 - 196 - 2,459

Unrestricted funds: General funds - - 20,917 19,811 (2,133) 38,595 Designated funds 790 19,847 - 3,342 - 23,979

790 22,110 20,917 23,349 (2,133) 65,033

22. Analysis of net assets – Charity

Total charity Intangible Tangible fixed Current Current net assets at fixed assets assets Investments assets liabilities 31.12.14 £'000 £'000 £'000 £'000 £'000 £'000

Restricted funds - 2,263 - 196 - 2,459 Unrestricted funds: General funds - - 21,067 18,506 (1,601) 37,972 Designated funds 760 16,331 - 3,139 - 20,230

760 18,594 21,067 21,841 (1,601) 60,661

23. Legacies receivable

At the end of the year the group was entitled to receive an estimated £4,970k (2013: £5,666k) from residual legacies subject to life tenancies. These mainly comprise shares in properties and investments held in trusts.

24. 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.

TRUSTEES’ REPORT AND ACCOUNTS 2014 56

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 24. Subsidiaries and Related Party Transactions (continued)

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: John Akers Executive officer of The Donkey Sanctuary David Cook Executive officer of The Donkey Sanctuary Andy Foxcroft Executive officer of The Donkey Sanctuary Marianne Steele Executive officer of The Donkey Sanctuary (appointed 17 March 2014) Margaret Taylor Welfare officer of The Donkey Sanctuary (resigned 17 March 2014) Chris Young Executive officer of The Donkey Sanctuary

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.

2014 2013 £’000 £’000 Total incoming resources 960 991

Total cost of charitable activities (925) (981) Governance cost (4) (5) Total resources expended (929) (986)

Net incomin g resources for the year 31 5

As at 31 December 2014, El Refugio Del Burrito had net assets of £1,893k (2013: £1,995k). This comprised assets of £1,977k (2013: £2,025k) and liabilities of £84k (2013: £30k)

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).

TRUSTEES’ REPORT AND ACCOUNTS 2014 57

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 24. Subsidiaries and Related Party Transactions (continued)

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

John Akers Executive officer of The Donkey Sanctuary David Cook Executive officer of The Donkey Sanctuary Andy Foxcroft Executive officer of The Donkey Sanctuary Marianne Steele Executive officer of The Donkey Sanctuary Chris Young Executive officer of The Donkey Sanctuary

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.

2014 2013 £’000 £’000 Total incoming resources 738 663

Total cost of charitable activities (702) (693) Governance cost (2) (2) Total resources expended (704) (695) Net incomin g/(outgoing) resources for the year 34 (32)

As at 31 December 2014, Il Rifugio Degli Asinelli O.N.L.U.S had net assets of £1,449k (2013: £1,499k). This comprised assets of £1,652k (2013: £1,647k) and liabilities of £203k (2013: £148k). 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:

John Akers Executive officer of The Donkey Sanctuary David Cook Executive officer of The Donkey Sanctuary Andy Foxcroft Executive officer of The Donkey Sanctuary Chris Young Executive officer of The Donkey Sanctuary

TRUSTEES’ REPORT AND ACCOUNTS 2014 58

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 24. Subsidiaries and Related Party Transactions (continued)

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.

2014 2013 £’000 £’000 Total incoming resources 278 302

Total cost of charitable activities (298) (342) Governance cost (2) (2) Total resources expended (300) (344) Net outgoing resources for the year (22) (42)

As at 31 December 2014, The Donkey Sanctuary (Cyprus) Limited had net assets of £47k (2013:73k). This comprised assets of £59k (2013: £87k) and liabilities of £12k (2013: £14k).

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:

Noel Carton Operations Manager of The Donkey Sanctuary (Ireland) Limited David Cook Executive officer of The Donkey Sanctuary Sally Cush Of independent status Eric Dempsey Of independent status Andy Foxcroft Executive officer of The Donkey Sanctuary Denis Healy Of independent status Chris Young Executive officer of The Donkey Sanctuary

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.

TRUSTEES’ REPORT AND ACCOUNTS 2014 59

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 24. Subsidiaries and Related Party Transactions (continued)

2014 2013 £’000 £’000 Total incoming resources 2,939 2,443

Total cost of charitable activities (3,010) (2,786) Governance cost (6) (7) (3,016) (2,793) Total resources expended Net outgoing resources for the year (77) (350)

As at 31 December 2014, The Donkey Sanctuary (Ireland) Limited had net assets of £174k (2013: £195k). This comprised assets of £394k (2013: £326k) and liabilities of £220k (2013: £131k).

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:

John Akers Executive officer of The Donkey Sanctuary David Cook Executive officer of The Donkey Sanctuary Marianne Steele Executive officer of The Donkey Sanctuary Chris Young Executive officer of The Donkey Sanctuary

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.

2014 2013 £’000 £’000 Total incoming resources 1,188 468

Total cost of activities (1,182) (461) Governance cost (3) (6) Total resources expended (1,185) (467) Net incomin g resources for the year 3 1

As at 31 December 2014, Stichting The Donkey Sanctuary Nederland had net assets of £4k (2013: £nil). This comprised assets of £136k (2013: £141k) and liabilities of £132k (2013: £141k). TRUSTEES’ REPORT AND ACCOUNTS 2014 60

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 24. Subsidiaries and Related Party Transactions (continued) 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: Stephen Blakeway Executive officer of The Donkey Sanctuary (appointed 1 January 2015) David Cook Executive officer of The Donkey Sanctuary James Duncan Director of The Donkey Sanctuary Trustee Limited Jean Gilchrist Of independent status Robert Nichols Officer of The Donkey Sanctuary (resigned 1 January 2015) Vijay Varma Of independent status

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.

2014 2013 £’000 £’000 Total incoming resources 359 412

Total cost of charitable activities (355) (413) Governance cost (3) (1) Total resources expended (358) (414) Net incomin g/(outgoing) resources for the year 1 (2)

As at 31 December 2014, The Donkey Sanctuary Kenya Limited had net assets of £45k (2013: £43k). This comprised assets of £46k (2013: £44k) and liabilities of £1k (2013: £1k).

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.

TRUSTEES’ REPORT AND ACCOUNTS 2014 61

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 24. Subsidiaries and Related Party Transactions (continued)

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

2014 2013 £’000 £’000 Total incoming resources 617 330 Amount donated to The Donkey Sanctuary (555) (603) Net incomin g/(outgoing) resources for the year 62 (273)

As at 31 December 2014, The International Donkey Protection Trust had net assets of £335k (2013: £273k). This comprised assets of £335k (2013: £273k).

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 of EST relates to legacy and donation income generated for the charitable objectives of The Donkey Sanctuary. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.

TRUSTEES’ REPORT AND ACCOUNTS 2014 62

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 24. Subsidiaries and Related Party Transactions (continued) 2014 2013 £’000 £’000 Total incoming resources 524 320 Amount donated to The Donkey Sanctuary (185) (410) Net incoming/(outgoing) resources for the year 339 (90)

As at 31 December 2014, The Elisabeth Svendsen Trust for Children and Donkeys had net assets of £417k (2013: £78k). This comprised assets of £417k (2013: £78k).

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:

David Cook Executive officer of The Donkey Sanctuary John Dale Of independent status Marianne Steele Executive officer of The Donkey Sanctuary Chris 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. On this basis charitable donations amounting to £203k (2013: £206k) were accrued in the consolidated results of The Donkey Sanctuary for the year.

TRUSTEES’ REPORT AND ACCOUNTS 2014 63

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 24. Subsidiaries and Related Party Transactions (continued) The following are extracts from Donkey World Limited’s financial statements: 2014 2013 £’000 £’000 Turnover 855 736 Cost of sales (343) (265) Gross profit 512 471 Other income 11 11 Administration and other costs (319) (275) Taxation - - Net income 204 207 Amount gifted to The Donkey Sanctuary (203) (206) Retained profit 1 1

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 2014, Donkey World Limited had net assets of £164k (2013: £163k). This comprised assets of £648k (2013: £544k) and liabilities of £484k (2013: £391k).

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:

John Akers Executive officer of The Donkey Sanctuary David Cook Executive officer of The Donkey Sanctuary Marianne Steele Executive officer of The Donkey Sanctuary Chris 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 £39k were accrued in the consolidated results of The Donkey Sanctuary for the year ended 31 December 2014 (2013: £3k).

TRUSTEES’ REPORT AND ACCOUNTS 2014 64

The Donkey Sanctuary NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 24. Subsidiaries and Related Party Transactions (continued) The following are extracts from The Hayloft (Donkey Sanctuary) Limited’s financial statements:

2014 2013 £’000 £’000 Turnover 419 357 Cost of sales (307) (279) Gross profit 112 78 Other income 1 - Administration and other costs (74) (75) Taxation - - Net income 39 3 Amount gifted to The Donkey Sanctuary (39) (3) Retained profit/(loss) - -

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 2014, The Hayloft (Donkey Sanctuary) Limited had net assets of £nil (2013: £nil). This comprised assets of £79k (2013: £40k) and liabilities of £79k (2013: £40k).

25. 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:

2014 2013 £’000 £’000 Total incoming resources 29,891 29,198

Costs of generating funds (5,211) (4,169) Costs of charitable activities (21,773) (20,573) Governance cost (345) (323) Total resources expended (27,329) (25,065) Net incomin g resources before other recognised gains and losses 2,562 4,133

TRUSTEES’ REPORT AND ACCOUNTS 2014 65

The Donkey Sanctuary TRUSTEES’ REPORT AND ACCOUNTS - 2014

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: Natalie Cook (appointed 16 September 2014) Robert Crawford Jim Duncan Rosemary Gillespie Susan Griffin (appointed 1 August 2014) David Howarth Christine Purdy (appointed 1 August 2014) Stuart Reid (Chair) John Sewell-Rutter Bill Tetlow

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:

John Akers Director and Solicitor Stephen Blakeway Director International Operations David Cook Chief Executive Andy Foxcroft Director Care & Welfare Gill Minns Director Management Services Marianne Steele Director Fundraising & Marketing Chris Young Director of Finance

Investment Managers Investec Wealth & Investment Limited, 2 Gresham St, London, EC2V 7QN 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 2014 66 www.thedonkeysanctuary.org.uk OUR JOURNEY CONTINUES...

THE DONKEY SANCTUARY Slade House Farm, Sidmouth, Devon EX10 0NU T [44] (0)1395 578222 F [44] (0)1395 579266 E [email protected] www.thedonkeysanctuary.org.uk

The Donkey Sanctuary was founded by Dr Elisabeth Svendsen MBE in 1969. The Donkey Sanctuary (registered charity number 264818) and its sole corporate trustee, The Donkey Sanctuary Trustee Limited (Company number 07328588), both have their registered office at Slade House Farm, Sidmouth,EX10 0NU. Incorporating: The Elisabeth Svendsen Trust for Children and Donkeys (EST); The International Donkey Protection Trust (IDPT). 0015_15_DS