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2024-12-31-accounts

The Graff Foundation

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2024

Registered Charity No: 1012859

CONTENTS For the year ended 31 December 2024

The Graff Foundation

Page(s) in
Report
Trustees and advisors 1
Trustees’ annual report 2-4
Statement of trustees’ responsibilities 5
Independent auditors’ report 6-8
Statement of financial activities 9
Balance sheet 10
Cash Flow Statement 11
Notes to the financial statements 12-15

The Graff Foundation TRUSTEES AND ADVISORS

TRUSTEES

Laurence Graff Francois Graff Alexander Molla

ADDRESS

28-29 Albemarle Street London W1S 4JA

INDEPENDENT AUDITORS

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors 1 Embankment Place London WC2N 6RH

BANKERS

Barclays Bank plc Level 25 1 Churchill Place London E14 5HP United Kingdom REGISTERED CHARITY NUMBER 1012859

The principal office is the same as the registered office.

Page 1

The Graff Foundation TRUSTEES’ ANNUAL REPORT

The trustees submit their report and the audited financial statements of The Graff Foundation for the year ended 31 December 2024.

The financial statements have been prepared in accordance with The Charities Statement of Recommended Practice (SORP under FRS 102) and the Charities Act 2011. It is a public benefit entity.

OBJECTIVES, STRATEGY AND ACTIVITIES

The Graff Foundation (‘the Foundation’) was registered with the Charity Commission (registration number 1012859) on 15 July 1992 as a charity for general charitable purposes and is governed by the Trust Deed dated 20 December 1991.

The objectives of the Foundation are to apply the income and such parts of the capital towards such charitable purposes and to make grants to such charitable institutions at such times and in such manner as the trustees in their absolute discretion think fit. The strategy for achieving these objectives is for the trustees to review various charitable organisations and decide which organisations should receive funding on an annual basis.

The trustees confirm that they have complied with their duty under Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit and seek to meet the Foundation’s purposes in following its objectives.

MANAGEMENT AND GOVERNANCE

The trustees who have served during the year and since the year end are set out on page 1. The Foundation is managed by a minimum of 3 trustees. The statutory power of appointing new or additional trustees is vested in Graff Diamonds Limited, a related party. All new trustees are provided with an induction pack which includes the constitution of the Trust and guidelines on how to perform their duties as Trustee. Further training is given as and when necessary. The day to day management of the charity is carried out by Robert Falk, the charity accountant.

RELATED PARTIES

The Foundation has a close relationship with Graff Diamonds Limited which provides funding to the charity. Francois Graff is a director of Graff Diamonds Limited, and Laurence Graff is the ultimate controlling shareholder of that company and all other companies in the Graff Group (‘the Graff Group’).

ACHIEVEMENTS AND PERFORMANCE

The trustees review various charitable organisations and decide which organisations should receive funding. Having reviewed various charitable organisations, the trustees have made ten (2023: twelve) grants during the year amounting to £776k (2023: £202k) to organisations as set out in note 4. These organisations are community charities which the trustees consider to be for the benefit of the public.

The grants were made in accordance with the aims of the trust as set out in the Trust Deed dated 20 December 1991.

The Foundation’s future strategy remains unchanged. There are no current commitments for any future grants.

DONATIONS

Donations are principally received from companies in the Graff Group by direct payment. A small donation was also received from an external organisation in the financial period. No professional fund-raisers are employed by the charity.

Page 2

The Graff Foundation TRUSTEES’ ANNUAL REPORT (Continued)

GRANT MAKING POLICY

The essential purpose of the Foundation is to aid in the generation of funds to various charitable organisations.

FINANCIAL REVIEW

The trustees set out the financial statements on page 9 to page 15. The net movement in funds for the year were £904k (2023: £596k).

RESERVES POLICY AND INVESTMENT POLICY

It is the policy of the trustees to maintain reserves at a level to enable it to be administered efficiently to meet its expenditure requirements and to have adequate resources to fund its charitable objectives. The level of reserves is currently £3,103k (2023: £2,199k).

Under the Trust Deed dated 20 December 1991, the charity has the power to invest its accumulated assets in the purchase, acquisition or improvement of any property if appropriate. Their current reserves policy is to accumulate reserves under this power. However, at this time the certainty of cash and cash deposits is deemed to be the most appropriate investment strategy. The policy is reviewed annually.

PRINCIPAL BUSINESS RISKS AND UNCERTAINTIES AND FINANCIAL RISK MANAGEMENT

The trustees have examined the major risks which the charity faces. The trustees confirm that systems have been established to ensure that any major risks are identified and as far as practicable adequately mitigated. The management of the Foundation and the execution of the Foundation’s strategy is subject to a number of risks that include liquidity and cash flow risk. The Foundation does not have a risk register. Policies relating to the management of these risks and how they are mitigated are described below:

Cash flow risk

Cash flow forecasting is performed on a regular basis which includes rolling forecasts of the Foundation’s liquidity requirements to ensure that the Foundation has sufficient cash to meet operational needs.

Liquidity risk

The trustees regularly review the Foundation’s financial position and actively discuss matters to ensure that there are sufficient funds available to continue in operational existence and meet liabilities as and when they fall due.

FUTURE DEVELOPMENTS AND FUTURE PLANS

The trustees will continue to apply the income and such parts of the capital towards such charitable purposes and to make grants to such charitable institutions at such times and in such manner as the trustees in their absolute discretion think fit.

SIGNIFICANT FACTORS AFFECTING THE CHARITY

Due to the nature of the charity, no positive or negative factors within or outside the charity’s control have significantly affected the achievement of its objectives or future plans during the year’ for the charity’s financial statements.

Page 3

TRUSTEES' ANNUAL REPORT (Continued)

The Graff Foundation

GOING CONCERN

The trustees consider the Foundation to be a going concern as it has £3,104k of cash, deposits and cash equivalents and a very small total of liabilities at 31 December 2024. The charity has no commitments in the next 18 months. There are no material uncertainties in these financial statements.

DISCLOSURE OF INFORMATION TO AUDITORS

As far as the trustees are aware, there is no relevant audit information of which the Foundation’s auditors are unaware, and they have taken all the steps that they ought to have taken as trustees, to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of the information.

INDEPENDENT AUDITORS

The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office.

On behalf of the trustees

Alexander Molla Trustee

Date: 28th May 2025

Page 4

The Graff Foundation STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

On behalf of the trustees

Alexander Molla Trustee

Date: 28[th] May 2025

Page 5

Independent auditors’ report to the trustees of The Graff Foundation

Report on the audit of the financial statements

Opinion

In our opinion, The Graff Foundation’s financial statements (the financial statements”):

Basis for opinion

We have audited the financial statements, included within the Trustees’ Annual Report and Financial Statements (the “Annual Report”), which comprise: the Balance Sheet as at 31 December 2024; the Statement of Financial Activities for the year then ended, Cash Flow Statement for the year then ended and the notes to the financial statements, which include a description of the significant accounting policies.

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charity’s ability to continue as a going concern.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Based on our work undertaken in the course of the audit, the Charities Act 2011 requires us also to report certain opinions and matters as described below.

Trustees’ Report

Under the Charities Act 2011 we are required to report to you if, in our opinion the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the audit

Responsibilities of the Trustees for the financial statements

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We are eligible to act and have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the charity/industry, we identified that the principal risks of non-compliance with laws and regulations related to Charities Act 2011 in respect of donations and expenditure, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Charities Act 2011 and relevant regulations made or having an effect thereunder, including The Charities (Accounts and Reports) Regulations 2008. We evaluated the incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) by the trustees and those responsible for, or involved in, the preparation of the financial statements, and determined that the principal risks were related to management posting inappropriate journal entries. Audit procedures performed included:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the charity’s trustees as a body in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act (Part 4 of The Charities (Accounts and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Charities Act 2011 exception reporting

Under the Charities Act 2011 we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 28 May 2025

The Graff Foundation STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2024


Note
INCOME AND ENDOWMENTS FROM
Donations and legacies
Interest receivable from bank accounts
Other income
2
3
Total income and endowments
EXPENDITURE ON
Charitable activities
Other expenditure
4
5
Total expenditure
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward
Unrestricted
2024
£’000
1,580
80
35
1,695
(776)
(15)
(791)
904
2,199
3,103
funds
2023
£’000
798
71
1
870
(202)
(72)
(274)
596
1,603
2,199

There are no recognised gains or losses other than those included within the Statement of Financial Activities for the financial year and the prior financial year.

All income and expenditure relate to continuing operations for both the current and prior year.

REGISTERED CHARITY NUMBER 1012859

Page 9

The Graff Foundation BALANCE SHEET As at 31 December 2024

Note 2024 2023
£’000 £’000
CURRENT ASSETS
Debtors 6 7 9
Short term deposits & cash equivalents 7 3,032 2,051
Cash at bank and in hand 72 146
TOTAL CURRENT ASSETS 3,111 2,206
CREDITORS: Amounts falling due within one year 8 (8) (7)
NET ASSETS 3,103 2,199
THE FUNDS OF THE CHARITY
Unrestricted funds 10 3,103 2,199
Total charity funds 3,103 2,199

The notes on pages 12 to 15 are an integral part of these financial statements.

The financial statements on pages 9 to 15 were approved by the board of trustees on 28th May 2025 and were signed on its behalf by:

Alexander Molla Trustee

Page 10

The Graff Foundation CASH FLOW STATEMENT for the year ended 31 December 2024

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES:

RECONCILIATION OF NET MOVEMENT IN FUNDS TO
NET CASH FLOW FROM OPERATING ACTIVITIES:
Net movement in funds
Interest received
Decrease/(increase) in debtors
Increase in creditors
Foreign exchange (gains)/losses
Net Cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Bank interest received
Increase in short-term deposits purchased
Net cash used by investing activities
CASH AND CASH EQUIVALENTS IN THE
REPORTING YEAR
Change in cash and cash equivalents due to
exchange rate movements
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
2024
£’000
904
(80)
2
1
(34)
793
80
(1,410)
(1,330)
(537)
34
(503)
1,412
909
2023
£’000
596
(72)
(6)
4
57
579
72
(785)
(713)
(134)
(57)
(191)
1,603
1,412

Page 11

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2024

The Graff Foundation

1.ACCOUNTING POLICIES

1.1 BASIS OF ACCOUNTING

These financial statements have been prepared on the going concern basis under the historical cost convention and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the financial reporting standard applicable in the United Kingdom and the Republic of Ireland (‘FRS 102’) and the Charities Act 2011. The principal accounting policies which have been consistently applied and adopted in the preparation of the financial statements are as follows:

1.2 FUND ACCOUNTING

The charity holds an unrestricted general fund. This can be used in accordance with the charitable objectives at the discretion of the trustees.

1.3 DONATIONS AND LEGACIES

Donations are accounted for in the period in which they are receivable or received.

1.4 EXPENDITURE

Expenditure is included in the statement of financial activities on the accruals basis. Grants made by the charity to beneficiaries are provided for on approval of the trustees and upon payment to the recipient.

1.5 INTEREST RECEIVABLE

Income from investments is accrued to the date of the balance sheet. All interest receivable from bank deposits is credited to the Statement of Financial Activities.

1.6 GRANT POLICY

The charitable company accrues for grants payable when a written commitment is made to the charity. To apply the income and such parts of the capital towards such charitable purposes and to make grants to such charitable institutions at such times and in such manner as the trustees in their absolute discretion think fit. The strategy for achieving these objects is for the trustees to review various charitable organisations and decide which organisations should receive funding on an annual basis.

1.7 FOREIGN CURRENCIES

Within the charity, monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rates of exchange ruling at the date of the transaction. These translation differences are dealt with in the Statement of Financial Activities.

1.8 IRRECOVERABLE VAT

Any irrecoverable VAT is charged to the Statement of Financial Activities.

1.9 TAX

The Foundation is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the its primary objectives, if these profits and surpluses are applied solely for charitable purposes

1.10 DEBTORS

Debtors are recognised and carried at the lower of their original invoiced value and recoverable amount.

1.11 SHORT TERM DEPOSITS AND CASH EQUIVALENTS

Bank deposits held with terms greater than 3 months are classified as short term deposits. Bank deposits held with terms less than 3 months are classified as cash equivalents.

1.11 PRESENTATIONAL AND FUNCTIONAL CURRENCY

The functional and presentational currency is GBP as the majority of cash held is in GBP bank deposit accounts and the majority of grants made are in GBP although the largest single grant in 2024 was in USD.

Page 12

The Graff Foundation

NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 31 December 2024

2 INTEREST RECEIVABLE FROM BANK ACCOUNTS 2024 2023
£’000 £’000
Bank interest receivable 80 71
3 OTHER INCOME 2024 2023
£’000 £’000
Foreign exchange gains 34 -
Governance costs 1 1
35 1
2024 2023
£’000 £’000
4 CHARITABLE ACTIVITIES
Grants paid:
Facet Foundation - 81
Reuben Foundation ($870K) 688 -
Chabad Jewish Community of Central London 10 20
Make a Wish Foundation 5 15
Lady Garden - Foundation 5 2
Jewish Care 10 25
Community Security Trust 30 -
Sandy’s Row Synagogue 10 -
Battersea Dogs Home 6 -
Action Innocence Gala - 5
London’s Air Ambulance - 2
Weizmann UK - 5
Bradfield Foundation - 10
JW3 - 2
Tate Foundation - 10
Guggenheim Museum - 25
Bfami (Relief Art classes) 2 -
Centrepoint 10
-
776
202
5 OTHER EXPENDITURE 2024 2023
£’000 £’000
Foreign exchange losses - 57
Governance costs 15
15
15
72

Page 13

The Graff Foundation NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 31 December 2024

5 OTHER EXPENDITURE (continued)

Governance costs are the administrative services of £1k (2023: £1k), which are provided by Robert Falk, the charity accountant, and audit fees for the year were £14k (2023: £14k).

Net foreign exchange gains arose in the year, upon revaluation of the USD bank, and USD funds held on deposit, at 31 December 2024. The pound moved favourably against the dollar over the year.

6 DEBTORS 2024 2023
£’000 £’000
Prepayments and accrued income 7 9
7 SHORT-TERM DEPOSITS & CASH EQUIVALENTS
2024 2023
£’000 £’000
Short-term deposits 2,195 785
Cash equivalents 837 1,266
3,032
2,051
At December 2024, three short-term deposits had maturity dates greater than 100 days. Interest on these
deposits were 4.13% on average. In addition, a further cash deposit (cash equivalent) had a maturity of
92 days. The interest on this deposit was 4.26%.
8 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023
£’000 £’000
Accruals and deferred income 8 7

9 TRUSTEES’ EMOLUMENTS

No trustees received any remuneration or reimbursement of expenses for their services to the charity during the year (2023: £nil). There are no other employees within the charity (2023: none).

Page 14

The Graff Foundation

NOTES TO THE FINANCIAL STATEMENTS (Continued) for the year ended 31 December 2024

10
UNRESTRICTED FUNDS
Fund balances brought forward
Income
Expenditure
Fund balances carried forward
2024
£’000
2,199
1,695
(791)
3,103
2023
£’000
1,603
870
(274)
2,199

No funds are due to Graff Diamonds Limited (2023 £Nil). Francois Graff is a director of Graff Diamonds Limited. No trustees represent the board of any recipient charities apart from Facet Foundation (see below).

The charitable company received a donation of £1,580k (2023: £798k) from Graff Diamonds Limited during the year.

The charity paid no grants to Facet Foundation during the year. (2023: £81k). Laurence Graff, Francois Graff and Alexander Molla are also trustees of Facet Foundation. The Foundation is a stand-alone entity.

Facet Foundation financial statements and reports are publicly available from Companies House.

Page 15