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2023-04-05-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS

5 APRIL 2023

The Peak 5 Wilton Road London SW1V 1AP

4/8/20Thursday, 09/11/23 3:47 PM

CONTENTS CONTENTS PAGE
1 Legal and Administrative 1
2 The Trustees’ Report 2 - 12
3 Independent Auditor's Report 13 - 15
4 Statement of Financial Activities 16
5 Balance Sheet 17
6 Cash Flow Statement 18
7 Notes to the Accounts 19 - 27

Legal and Administrative

The J J Charitable Trust (No. 1015792) was established under a Trust Deed dated 9 December 1992 and became a registered charity on 17 December 1992.

Trustees
Registered
Office
Principal
Officers
Bankers
Solicitors
Auditor
Investment
Advisers		 Mr J J Sainsbury
Ms L Guard
Mr M L Sainsbury
Ms C Gonella
The Peak
5 Wilton Road
London SW1V 1AP
Mrs K Everett
Chief Operating Officer
Mr M Woodruff
Executive (until July 2022)
Mrs S Ferguson
Executive
Mrs E Beresford
Executive (from September 2022)
Mr A Shah
Senior Finance Partner
All the Principal Officers are employed on a part-time basis.
Royal Bank of Scotland
119 - 121 Victoria Street
London SW1E 6RA
Portrait Solicitors (until 31 July 2022)
21 Whitefriars Street
London EC4Y 8JJ
BDB Pitmans LLP (from 1 August 2022)
1 Bartholomew Close
London EC1A 7BL
Sayer Vincent LLP
Invicta House
108 - 114 Golden Lane
London EC1Y 0TL
Schroder & Co. Limited
12 Moorgate
London EC2R 6DA

Report and Accounts – 5 April 2023

The Report of the Trustees

The trustees present their report and the audited financial statements for the year ended 5 April 2023.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Trust deed, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objects

The objects of the Trust as given in the Trust Deed are for general charitable purposes.

The Trust’s charitable purposes

Catalysing Change for a truly sustainable future

The Trust wishes to support organisations tackling deep rooted systems of education, economics and culture (values, beliefs and narratives) to help catalyse a fundamental paradigm shift towards a truly sustainable future.

Literacy

The Trust seeks to improve the effectiveness of literacy teaching in primary and secondary education for children with learning difficulties, including dyslexia.

Climate Change Collaboration

The Trust works closely with the Aurora Trust and Mark Leonard Trust on the Climate Change Collaboration, which supports projects seeking to stabilise global temperatures to 1.5 degrees, restore our natural world and support a regenerative economy. The Trust is also a supporter of Divest Invest.

Immediate Relief

The Trust wishes to support grass-roots organisations helping refugees, people in need and suffering mental health problems, and front-line communities safeguarding sustainable livelihoods and critically important habitats. It focuses primarily on women-led organisations which directly benefit women.

Grant Making Policy

Proposals are generally invited by the Trustees or initiated at their request. Unsolicited applications are discouraged and are unlikely to be successful, unless they are closely aligned to the Trust’s areas of interest. Grants are not normally made to individuals.

Charity and Public Benefit

Trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to it. They consider the full information, which follows in this annual report, about the Trust’s aims, activities and achievements in the many areas of interest that the Trust supports, demonstrates the benefit to its beneficiaries and, through them, to the public, that arise from those activities.

Report and Accounts – 5 April 2023

Achievements and Financial Review

The Trustees held three formal board meetings during the year to make grants and review investments. Trustees also considered and made decisions on grants at regular management meetings and by email.

During the year the total asset value of the Trust decreased from £53.1m at 5 April 2022 to £50.1m at 5 April 2023, a decrease of 5.6%. The net unrestricted income of the Trust for the year after charging grant related support costs was £507,811 compared to £403,144 for the year to 5 April 2022.

The Trustees have reviewed the Trust’s investment performance since the end of the financial year and seen material falls in our investments in line with global markets. The Trustees are aware of investment risks and remain confident that the portfolio will enable the Trust to continue with its charitable activities.

The Charity has adopted a total return basis to budget for its annual income. The endowment assets of the Trust remain significant, and the Trust will continue to pay out to its beneficiaries in accordance with the Trust’s objects.

During the year the Trustees approved 47 grants totalling £1,467,238 some of which are payable over more than one year. Grants approved during the year may be analysed by number and by value in the categories set out below. Payments made relate to grants approved in this and earlier years.

Environment
Literacy Support
General		 New Grants Approved New Grants Approved New Grants Approved Payments Made Payments Made
Number £ % £ %
38
1
8		 1,289,538
120,000
57,700		 87.9
8.2
3.9		 1,492,406
40,000
64,011		 93.5
2.5
4.0
47 1,467,238 100.0 1,596,417 100.0

Reserves Policy and Going Concern

The Trust holds both expendable endowment and unrestricted income funds.

It is the policy of the Trustees to approve grants for payment over a period of years, subject to the fulfilment of certain conditions over the life of the grant. Commitments to be paid within twelve months are accrued in the accounts. Shortfall in the availability of unrestricted funds will be met from the Trust’s expendable endowment and a transfer of £973,467 was made during the year.

The need for unrestricted income funds will vary from year to year and the Trustees will continue to review the position. As at 5 April 2023, the Trust held total funds of £50.0m (2022: £53.1m) which includes expendable endowment of £50.0 m (2022: £53.1m).

Having assessed the Trust’s financial position and plans for the foreseeable future, the trustees are not aware of any material uncertainties that would prevent the financial statements from being prepared on a going concern basis.

Report and Accounts – 5 April 2023

Investment Powers, Policy and Performance

The Trust Deed empowers the Trustees to appoint investment advisers who have discretion to invest the funds of the Trust within guidelines established by the Trustees.

Trustees are aware of the new Butler-Sloss judgment on charity investment duties. This clarified that trustees’ primary fiduciary responsibility is towards the charitable purposes and they should balance investments which potentially conflict with the charity’s work against relevant factors including financial return. The Trustees regularly meet the investment managers to discuss strategy and review performance and will begin to review their investment policy in light of this during the next reporting period.

Trustees are committed to using some of the Trust’s expendable endowment for impact investing that seeks a financial return, as well as produces social and environmental benefits in accordance with the Trust’s objectives. The Trustees are interested in sharing their experience in impact investing with other investors, to improve their own knowledge, as well as to encourage more investors to adopt the same approach. A specialist has been appointed by the Trustees as adviser on investment opportunities in this field.

During the year the return on the discretionary portfolio was -1.4%, underperforming the benchmark of -1.0%.

The Trust is a signatory to Divest Invest which commits the Trustees to sell any shares in fossil fuel holdings and invest a proportion of the endowment in ‘climate solutions’, such as renewable energy, energy efficiency and clean tech. This decision has not had a detrimental financial impact on the value of the Trust’s investment portfolio.

The Trust is due to examine how it can better reflect the objectives of the Trust in its investment portfolio.

Risk Assessment

The Trustees have examined the major strategic, business and operational risks to which the Trust may be exposed. Through the joint office of the Sainsbury Family Charitable Trusts, adequate systems are in place to manage such potential risks as the Trustees have identified. The Trustees continue to be vigilant and to keep processes under review.

The Trustees identified the uncertainty of financial returns to constitute the charity’s major financial risk. This is mitigated by having a diversified financial portfolio under the management of a major investment house. The Trustees regularly review investment strategy and monitor financial performance. They also operate a grant distribution formula that helps to ensure the stability of resources available for grant awards in any given year.

Another major risk is a misuse of funds by a beneficiary. To mitigate this risk, the Trustees normally restrict grants to charities registered with the UK Charity Commission, or equivalent bodies for charitable purposes. The awards are made following thorough assessment, and grants are regularly monitored. Multi-year grants are paid only on receipt of satisfactory progress reports.

Report and Accounts – 5 April 2023

Organisation

The Trust is one of the Sainsbury Family Charitable Trusts (SFCT), which share a common administration.

The Trustees are appointed by existing Trustees and are provided with relevant information relating to their responsibilities as Trustees. They are responsible for the overall direction and supervision of The J J Charitable Trust; they set the Trust’s strategy, review proposals and approve grants. The Trustees delegate day-to-day operations to the Trust’s executive staff.

Trustees are aware of the Charity Governance Code published in 2017 (updated in December 2020) which sets out the principles and recommended practice for good governance within the sector. The Charity has reviewed its governance arrangements against the principles within the code and believes that it is compliant with the code whilst maintaining its need to operate its governance efficiently.

The remuneration of the senior staff (including SFCT management personnel) is reviewed by the Trustees on an annual basis, considering the requirements of their role and performance during the year. From time to time, the SFCT Management Committee benchmarks pay levels against the comparable positions in similar organisations. The Committee completed a reward evaluation process during 2022/2023 to ensure that the Trusts fully meet their responsibilities and aspirations for fair and equal pay for employees.

The Trustees are fully aware of the requirements and duties set out in the Charities (Protection and Social Investment) Act 2016. The Trust does not undertake fundraising from the general public and does not use professional fundraisers or commercial participators.

The income of the Trust is not bound by any regulatory scheme, and the Trust does not consider it necessary to comply with any voluntary code of practice relating to fundraising. We have received no complaints in relation to any fundraising activities. As we do not approach individuals for the purpose of raising funds, we do not have specific requirements related to fundraising activities, nor do we consider it necessary to design specific procedures to monitor such activities.

Grants and activities to deliver the Trust’s charitable objects

Catalysing Change for a truly sustainable future (total £1,005,025)

The Trust works with organisations to tackle deep rooted systems of education, economics and culture (values, beliefs and narratives) to help catalyse a fundamental paradigm shift towards a truly sustainable future. In addition, the Trust supports social and community experimentation around regenerative and circular economies.

There are four closely linked pillars of this work: education, economics, culture and regenerative and circular economies. These pillars are interconnected through the overarching aim of fostering and provoking culture change to bring about system change.

The Trust seeks to deliver this area of work through a combination of grant-making and Trust-led activities such as convening and project delivery.

Report and Accounts – 5 April 2023

For the education pillar, the Trust has a double focus: embedding natural world systems thinking into early years education; and promoting ecological economics at secondary and higher education level.

An example is the Harmony project which enables primary school children to learn in and from Nature in a joined-up way, and work on ‘big questions’ across all subjects such as ‘Where do we get our food from?’. Within higher education, Students Organising for Sustainability (SOS-UK) trialled a new international league table for courses in key subjects (economics, law, politics, health and engineering). It guided students to see which courses will help them to understand and prepare to tackle the climate emergency and ecological crisis rather than just teaching ‘business as usual’.

The Trust has several areas of focus under the culture pillar. The first is to help organisations working to change narratives and mindsets from inside the finance and advertising industries. This includes Purpose Disruptors whose project the GoodLife 2030 is helping the advertising industry use its creativity to shape new visions and develop business models for a sustainable future. In finance, the University of Cambridge Sustainable Finance team is working with large pension funds to address the wider societal risks of their investments using the concept of ‘universal ownership’.

Also within culture, the Trust supports communications practitioners seeding new narratives and mindsets in mainstream audiences. The Local Storytelling Exchange has journalists working with communities across England to publicise real stories of local action on climate change and new economic systems, that other people can relate to. Climate Visuals is piloting an image library of more diverse, relatable and empowering images for communicators to use in stories about climate change and help people imagine a sustainable future.

At the World Congress of Science and Factual Producers in November, the Trust managed a workshop for producers and commissioners, ‘New Visions and Stories: A Lifeline out of the climate crisis’. The interactive workshop was led by experts from Purpose Disruptors and Heard, in partnership with the Trust. The Trust created a brief for keynote speaker Liz Bonnin, wildlife and environmental TV presenter, to talk about the need for wider economic and societal change and the role of science and factual communicators in helping audiences to embrace change and stay focused on bigger, systemic issues.

For the economics pillar, the Trust is exploring ways to support new economic models that allow a shift towards an economy oriented around regeneration and which is in service to life.

Trustees have begun a process to recruit expert advisors to facilitate this area of work alongside the culture pillar.

The fourth pillar supports community experimentation in regenerative and circular projects. An example is Homegrown/Homespun, a community regeneration project in Blackburn, Lancashire combining sustainable agriculture, brownfield site regeneration, green skills, and fashion. The local community is growing flax and woad on several unused sites in Blackburn, to revive local skills in the manufacture of linen and create a sustainable clothing line.

Accounting for Sustainability (A4S) - £50,000

To subsidise 15 places from the 2023 cohort, for delegates from public sector, emerging markets, and SMEs to join its sustainability Academy programme for finance professionals

Ashden Climate Solutions - £50,000 Core costs

Report and Accounts – 5 April 2023

British Academy of Film & Television Awards (BAFTA) - £135,000

To support the Screenwriters’ Lecture Series over three years

Climate Outreach - £55,000

For Climate Visuals to run a pilot for Britain Sees Climate over six months from January 2023

Climate Safe Lending Network (CSLN) - £60,000

Core costs

Environmental Funders' Network - £38,250

To support Regen Narratives Community over two years

Global Action Plan - £54,275

To develop its strategy and national advocacy campaign to reorient the English education system

Harmony Project - £180,000

To recruit two new part-time staff members over three years

Homespun - £20,000

To increase the Community Engagement Officer’s role from one day per week to full time

Purpose Disruptors - £110,000

Towards the GoodLife2030 project

Regenerative Viticulture Foundation - £2,500

Towards employment costs

Students Organising for Sustainability - £20,000

For the 1.5 Degrees league table.

The Social Change Nest - £50,000

To support the expansion of the Local Story Telling Exchange into new regions of the UK

University of Cambridge Department of Land Economy - £90,000

Core funding over three years for the Sustainable Finance Team.

WCSFP (World Congress of Science and Factual Producers) Budget - £90,000

Funding for JJC partnership with WCSFP for a keynote speaker and workshop on climate storytelling.

Literacy (total grants £120,000)

The Trust seeks to improve the effectiveness of literacy teaching in primary and secondary education for children with learning difficulties, including dyslexia. The work has a particular focus on areas of social need and those who are at risk of non-inclusion in society and the world of work.

In February, the Trust launched a small grants scheme which supports charities and community organisations that help children and young people deliver literacy skills, with a focus on supporting those with learning difficulties. The Trust will review applications four times a year in March, June, September, and December.

Report and Accounts – 5 April 2023

Schoolreaders - £120,000

To support reading mentors for schools in areas of deprivation and post-pandemic educational deficit over three years.

Climate Change Collaboration (CCC) of JJ Charitable Trust with the Aurora and Mark Leonard Trusts (total grants £234,513)

The JJ Charitable Trust is part of the Climate Change Collaboration (CCC) with two other Sainsbury Family Charitable Trusts (The Aurora Trust and The Mark Leonard Trust). The CCC’s mission is to support efforts which help stabilise global temperatures to 1.5 degrees, restore our natural world, and support a regenerative economy. The Trusts support a wide range of interventions, including strategic communications and campaigns, legislation, litigation, research, policy work, and changing investment practice.

The CCC trusts continue to fund the global Divest Invest movement; getting private, foundation, faith, pension, and sovereign wealth investors to remove fossil fuel investments from their portfolios. Investors with assets under management of over $40.5 trillion have committed to divest from fossil fuel investments since 2015. The three Trusts continue to support UK Divest (Friends of the Earth, Friends of the Earth Scotland, and Platform London) and People & Planet to encourage governmental and educational institutions to divest from fossil fuels. They maintain support to The Big Shift Global campaign. This supports African civil society campaigns make demands that the World Bank and Regional Development Banks stop funding fossil fuel development in Africa and increase support for renewable energy. The CCC provided funding for a new initiative by the National Council of Voluntary Organisations (NCVO) to encourage English and Welsh charities to divest from fossil fuels.

CCC trustees recognise that law and regulation can be used to support efforts to implement the Paris Agreement. The Collaboration continues to support Peers for the Planet and Client Earth.

The Global Legal Action Network (GLAN) is a multi-year grantee and the CCC supports several of its initiatives, including the Youth Climate Case. GLAN has made significant progress with this legal action case against 33 European states in the European Court of Human Rights with a September hearing date confirmed. The CCC funded GLAN’s new communications coordinator, who is building public and media interest in the case.

For the first time, the CCC supported South Lakes Action on Climate Change (SLACC), a small charity in Kendall, that is challenging the Secretary of State’s approval for a new coal mine in Cumbria, England. SLACC appealed the decision in January 2023, and now have a three-day hearing at the High Court later in October 2023. The three trusts also began supporting the Good Law Project, a legal advocacy organisation, to develop new legislation which would confer legal duties on judges to consider the environment within their decision-making. This work builds and supports the growing advocacy and academic work around the ‘rights of nature’ and why it is needed within national and international legal systems.

Carbon Tracker - £8,259

To contribute to its project to challenge the flawed advice that is endangering people’s pensions.

Clarifying trustee investment duties – £20,000

To support activities to ensure that the Butler-Sloss judgment is accurately reflected in Charity Commission guidance and integrated into charities’ Statement Of Recommended Practice (SORP).

Report and Accounts – 5 April 2023

Friends of the Earth Charitable Trust - £1,044

A small additional grant to enable the charity to manage unexpected costs because of high inflation.

Friends of the Earth Scotland - £371

A small additional grant to enable the charity to manage unexpected costs because of high inflation.

Global Legal Action Network (GLAN)

£11,667 – To contribute to a communications coordinator role.

£18,333 – To contribute to its consortium of trans-national litigation organisations.

Good Law Project - £10,000

To contribute to its work to develop new legislation which would oblige judges to consider and protect the environment when adjudicating cases and/or interpreting legislation.

Influence Map - £15,000

To contribute to its investigation into lobbying against biodiversity and land use policies in Europe and globally.

National Council for Voluntary Organisations (NCVO) - £20,000

To contribute to its fossil fuel divestment campaign for the UK voluntary sector.

People and Planet - £600

A small additional grant to enable the charity to manage unexpected costs because of high inflation.

Platform

£33,334 - To contribute to its Kick Fossil Fuels out of Football campaign.

£1,071 - A small additional grant to enable the charity to manage unexpected costs because of high inflation.

PR Budget - £20,000

Towards PR and Communications.

South Lakes Action on Climate Change - £10,000

For its legal work in challenging the development of a coal mine in Cumbria.

Legal Budget – £1,500

A budget to bring together the legal teams of South Lakes Action on Climate Change and Friends of the Earth, who are both bringing legal challenges against a new coal mine in Cumbria, England.

The Social Change Nest - £63,334

To contribute to core funding for Uplift.

Immediate relief grants (total grants £107,700)

Trustees generally wish to focus on the root causes of environmental degradation and society’s problems. However, as was the case in 2022, the impacts of Covid-19 and the cost of living crisis continue to be felt across society, often exacerbating underlying problems caused by climate change and environmental degradation. In recognition of these difficulties, trustees made 15 grants to 15 grass-roots organisations supporting refugees, people in need and suffering mental health problems , and communities safeguarding sustainable livelihoods and critically important habitats. Most of the organisations are led by women and directly benefit women.

Report and Accounts – 5 April 2023

In some cases, the immediate relief grants also link to the Trust’s pillar supporting community experimentation in regenerative economies because of the way in which they work to strengthen their community whilst addressing local economic and environmental challenges. Examples include Woodlands Community Development Trust and Global Greengrants Fund UK.

Blackpool Citizens Advice Bureau - £5,000

Core costs

Comfrey Project - £5,000

Core costs

Footprints Women's Centre - £10,000

Towards its women’s centre and community garden

Global Greengrants Fund UK - £20,000

Towards projects and grant-making support in the Women’s Environment Action programme.

Granville Community Kitchen - £7,500

For a part-time food grower

Marches Energy Agency - £5,000

Towards their energy advice service and support for households

Peckham Palms - £5,200

To cover the venue costs for the refugee support sessions

South Seeds - £5,000

Towards their energy advice service

The Welcoming Association - £5,000

Core costs

Tomorrow's Women Wirral - £5,000

Towards core costs

Turkey Mozaik Foundation - £10,000

Turkey Earthquake Emergency Fund

West End Women & Girls Centre - £5,000

Towards its community garden and small holding

Women at the Well - £5,000

Core costs

Woodlands Community Development Trust - £10,000

Towards its community garden, Veg Box scheme and Warm Welcome Café

Zinthiya Ganeshpanchan Trust - £5,000

Toward core costs

Report and Accounts – 5 April 2023

Cancelled Grants

Part-payment of six grants totalling £74,668 were cancelled during the year (2022: £10,000) because grantees had not required the funding.

Future Plans

The Trust will continue to support the activities set out on pages 5 to 10. In addition, the Trust is looking to increase its work on the “economics pillar” through initiatives and organisations promoting economies which are nested within the Earth’s natural limits and are in service to life.

Report and Accounts – 5 April 2023

Statement of responsibilities of the trustees

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 charity's financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

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. 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 corporate 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.

Approved by the Trustees on 10 October 2023 and signed on their behalf by:

…………………………………………………….

TRUSTEE

Report and Accounts – 5 April 2023

Independent Auditor’s Report to the Trustees of The J J Charitable Trust

Opinion

We have audited the financial statements of The J J Charitable Trust (the ‘charity’) for the year ended 5 April 2023 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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.

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 J J Charitable Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorized for issue.

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

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Report and Accounts – 5 April 2023

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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.

Auditor’s responsibilities for the audit of the financial statements

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

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 auditor’s 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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

Report and Accounts – 5 April 2023

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to 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. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them 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 the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Date: 15 November 2023

Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

Report and Accounts – 5 April 2023

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 5 APRIL 2023

Notes
Income and Endowment from:
Investments
3
Other income
Total Income
Expenditure on:
Raising funds
Investment management fees
4
Charitable activity:
Grant-making:
Grant expenditure
5
Grant related support costs
6
Cost of grant-making
Total expenditure
Net expenditure before (losses) / gains on investments
(Losses) / gains on investments
9
Exchange gains
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Expendable
Total Funds
Total Funds
Funds
Endowment
2023
2022
£
£
£
£
793,424
-
793,424
740,007
10,719
-
10,719
37,789
804,143
-
804,143
777,796
-
294,689
294,689
441,916
1,421,049
-
1,421,049
1,278,926
296,332
-
296,332
374,653
1,717,381
-
1,717,381
1,653,579
1,717,381
294,689
2,012,070
2,095,495
(913,238)
(294,689)
(1,207,927)
(1,317,699)
-
(2,190,695)
(2,190,695)
5,824,521
-
368,681
368,681
110,829
913,238
(913,238)
-
-
-
(3,029,941)
(3,029,941)
4,617,651
-
53,090,403
53,090,403
48,472,752
-
50,060,462
50,060,462
53,090,403

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.

The notes on pages 19 to 27 form part of these accounts.

Report and Accounts – 5 April 2023

BALANCE SHEET

AS AT 5 APRIL 2023

FIXED ASSETS
Tangible fixed assets
nvestments
CURRENT ASSETS
Debtors
Cash at bank and in hand
CURRENT LIABILITIES
Creditors -amounts falling due within 1 year
NET CURRENT LIABILITIES
NET ASSETS
CAPITAL FUNDS
Expendable endowment
NCOME FUNDS
Unrestricted funds		 Notes Notes 2023
2022
£
£
5,282
6,603
50,555,178
53,682,194
50,560,460
53,688,797

232,284

460,740
693,024

1,291,418
(499,998)
(598,394)
50,060,462
53,090,403
50,060,462
53,090,403
-
-
50,060,462
53,090,403
8
9
10
11
12
12		 £
65,826
415,517
481,343
981,341

The financial statements were approved and authorised for issue by the Trustees on 10 October 2023 and were signed on their behalf by :

…………………………………………… TRUSTEE J J Sainsbury

The notes on pages 19 to 27 form part of these accounts.

Report and Accounts – 5 April 2023

CASH FLOW STATEMENT

FOR THE YEAR ENDED 5 APRIL 2023

Net cash used in operating activities
Cash flows from investing activities:
Dividends and interest
Exchanges gains
Purchase of investments
Sale of investments
Net cash generated by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Reconciliation of net expenditure to net cash flow from operating activities
Net movement in funds as per the statement of financial activities
Losses / (gains) on investments
Dividends and interest
Exchanges (gains)
Depreciation charges
Decrease / (increase) in debtors
(Decrease) / increase in creditors
Net cash used in operating activities		 2023
2022
£
£
(2,143,649)
(1,502,899)
793,424
740,007
368,681
110,829
(10,447,037)
(7,987,972)
12,230,763
9,035,125
2,945,831
1,897,989
802,182
395,090
1,219,065
823,975
2,021,247
1,219,065
2023
2022
£
£
(3,029,941)
4,617,651
2,190,695
(5,824,521)
(793,424)
(740,007)
(368,681)
(110,829)
1,321
3,601
166,458
(37,455)
(310,077)
588,661
(2,143,649)
(1,502,899)
Analysis of the balance of cash as shown in the balance sheet
Cash at bank and in hand
Cash balances held by investment manager for reinvestment (Note 9)		 Change in
2023
2022
year
£
£
£
415,517
460,740
(45,223)
1,605,730
758,325
847,405
2,021,247
1,219,065
802,182

The notes on pages 19 to 27 form part of these accounts.

Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

1. CHARITABLE STATUS

The J J Charitable Trust is an unincorporated charty (Charity registration number 1015792), registered in England and Wales. The address of the registered office is 5 Wilton Road, London, SW1V 1AP.

2. PRINCIPAL ACCOUNTING POLICIES

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair view' and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The trust constitutes a public benefit entity as defined by FRS 102.

In the view of the Trustees, there are no material uncertainties casting doubt on the going concern of the charity.

Having assessed the Trust's financial position and plans for the foreseeable future, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis.

The endowment assets of the Trust remain significant, and the Trust will continue to pay out to its beneficiaries in accordance with the Trust's objects.

b) Income recognition

c) Expenditure on Charitable activities

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

2. PRINCIPAL ACCOUNTING POLICIES (cont…)

c) Expenditure on Charitable activities (cont…)

d) Fixed assets

Fixed assets are depreciated at rates which reflect their useful life to the Trust. Items of equipment are capitalised where the purchase price exceeds £5,000.

Leasehold improvments are depreciated over the outstanding life of the lease at the time the work was completed. The following rate has been used:

Leasehold improvements (2021) - 14.29% per annum

g) Cash and cash equivalents

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

h) Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity's accounting policies, which are described above, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readlly apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised In the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result In a material adjustment to their carrying amounts in the next financial year.

Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

3. INVESTMENT INCOME

Income received on investments may be analysed as follows:

Government fixed interest
Other fixed interest
UK equities
Overseas equities
Alternatives
Impact Investments
Other		 2023
2022
£
%
£
%
11,440
1%
848
0%
8,995
1%
9,041
1%
76,336
10%
78,763
11%
227,031
29%
253,509
34%
390,755
49%
338,247
46%
77,929
10%
59,595
8%
938
0%
4
0%
793,424
100%
740,007
100%

4. COST OF GENERATING FUNDS

These costs relate to the investment manager's fees. The Trustees are of the opinion that these relate to the generation of a total return on the investment portfolio and, as such, have charged the Expendable Endowment with these fees.

5. GRANTS PAYABLE

GRANTS PAYABLE
2023 2022
£ £ £ £
Reconciliation of grants payable:
Commitments at 6 April 2022 968,401 605,505
Grants not accrued at 6 April 2022 321,407 15,000
Grants approved in the year 1,467,238 1,595,333
Grants cancelled, refunded or amended (74,668) (10,000)
Grants not accrued at 5 April 2023 (292,928) (321,407)
Grants payable for the year 1,421,049 1,278,926
Grants paid during the year (1,596,417) (916,030)
Commitments at 5 April 2023 793,033 _968,401 _
Commitments at 5 April 2023 are payable as follows:
2023 2022
£ £
Within one year (Note 11) 793,033 968,401

Commitments

In addition to the amounts committed and accrued noted above, the Trustees have also authorised certain grants which are subject to the recipient fulfilling certain conditions relating to the delivery of the grant-funded activities. The total amount authorised but not accrued as expenditure at 5 April 2023 was £271,667 (2022: £321,407).

A list of grants payable is included in Appendix A.

Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

6. ALLOCATION OF SUPPORT COSTS

Staff costs
Share of joint office costs
Direct costs including travel
Depreciation
Legal and professional fees
Consultancy
Auditor's remuneration*		 2023
Grant-
Governance
Total
making
£
£
£
207,657
4,686
212,343
36,153
-
36,153
13,719
-
13,719
1,321
-
1,321
258,850
4,686
263,536
20,751
-
20,751
3,885
-
3,885
-
8,160
8,160
283,486
12,846
296,332

During the year no Trustee received any remuneration (2022: £nil). Trustees were reimbursed expenses £27 (2022: £2,033).

COMPARATIVE
Staff costs
Share of joint office costs
Direct costs including travel
Depreciation
Legal and professional fees
Auditor's remuneration*		 2022
Grant-
Governance
Total
making
£
£
£
163,916
4,416
168,332
34,914
-
34,914
17,608
-
17,608
3,601
-
3,601
220,039
4,416
224,455
142,756
-
142,756
-
7,442
7,442
362,795
11,858
374,653

COMPARATIVE

7. ANALYSIS OF STAFF COSTS

ANALYSIS OF STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2023
2022
£
£
173,735
137,582
20,519
15,245
18,089
15,505
212,343
168,332

The Trust is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office. 2.1% (2022: 1.9%) of the total support and administration costs of these trusts have been allocated to the JJ Trust, including a proportionate share of the costs of employing the total number of staff serving in the office in 2022/23.

The average number of staff employed during the year was 14, all on a part-time basis (2022: 13). This equates to to 2.2 full-time employees (2022: 2.0).

The Trust considers its key management personnel to comprise the Principal Officers. The total employment benefits, including employer pension contributions, of these key management personnel, were £128,941 (2022: £116,113). No employee earned in excess of £60,000 (2022: Nil).

Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

8. TANGIBLE FIXED ASSETS Leasehold Improvements

Cost
At 6 April 2022
Disposals
At 5 April 2023
Depreciation
At 6 April 2022
Disposals
Charge for the year
At 5 April 2023
Net Book Value
At 5 April 2023
At 5 April 2022
FIXED ASSET INVESTMENTS
Market value 5 April 2022
Add: Acquisitions at cost
Less: Disposals at proceeds value
Net (losses) / gains on investments
Market value 5 April 2023
Investment cash
Total investments
 2023
2022
£
£
32,045
32,045
(22,800)
9,245
32,045
25,442
21,841
(22,800)
-
1,321
3,601
3,963
25,442
5,282
6,603
6,603
10,204
2023
2022
£
£
52,923,869
48,146,501
10,447,037
7,987,972
(12,230,763)
(9,035,125)
(2,190,695)
5,824,521
48,949,448
52,923,869
1,605,730
758,325
50,555,178
53,682,194

9. FIXED ASSET INVESTMENTS

The investments held as at 5 April 2023 were as follows:

Government fixed interest
Other fixed interest
UK equities
Overseas equities
Alternatives
Other
Cash
Impact investments
Unquoted
Quoted		 2023
2022
Cost
Market
Cost
Market
Value
Value
£
£
£
£
2,013,436
2,010,537
617,678
761,309
833,686
811,143
654,592
626,706
3,546,755
4,782,361
3,370,694
5,110,247
18,620,259
23,541,502
20,289,458
27,435,602
9,400,919
10,307,683
7,455,940
10,609,400
-
-
950,000
950,000
1,605,730
1,605,730
758,325
758,325
3,693,180
5,213,527
3,702,431
5,400,477
2,103,751
2,282,695
2,103,751
2,030,128
41,817,716
50,555,178
39,902,869
53,682,194

Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

10. DEBTORS

DEBTORS
Accrued income
Other debtors		 2023
2022
£
£
65,826
67,480
-
164,804
65,826
232,284

11.CREDITORS - amounts falling due within one year

Grants payable within one year Professional charges Investment management fee Other creditors

2023 2022
£ £
793,033 968,401
9,617 4,860
108,505 272,800
70,186 45,357
981,341 1,291,418

Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS


Fund balances at 5 April 2023 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Movement in the year
Opening balance as at 5 April 2022
Total income and endowments
Cost of raising funds
Cost of grant-making
Net losses on investments
Net gains on currency exchange
Transfers between funds
Closing balance as at 5 April 2023
COMPARATIVE

Fund balances at 5 April 2022 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Movement in the year
Opening balance as at 5 April 2021
Total income and endowments
Cost of raising funds
Cost of grant-making
Net gains on investments
Net gains on currency exchange
Transfers between funds
Closing balance as at 5 April 2022		 Unrestricted Expendable
Totals
Funds Endowment
2023
£
£
£
-
5,282
5,282
-
50,555,178
50,555,178
872,836
(391,493)
481,343
(872,836)
(108,505)
(981,341)
-
50,060,462
50,060,462
-
53,090,403
53,090,403
804,143
-
804,143
-
(294,689)
(294,689)
(1,717,381)
-
(1,717,381)
-
(2,190,695)
(2,190,695)
-
368,681
368,681
913,238
(913,238)
-
-
50,060,462
50,060,462
Unrestricted Expendable
Totals
Funds Endowment
2022
£
£
£
-
6,603
6,603
-
53,682,194
53,682,194
1,018,618
(325,594)
693,024
(1,018,618)
(272,800)
(1,291,418)
-
53,090,403
53,090,403
-
48,472,752
48,472,752
777,796
-
777,796
-
(441,916)
(441,916)
(1,653,579)
-
(1,653,579)
-
5,824,521
5,824,521
-
110,829
110,829
875,783
(875,783)
-
-
53,090,403
53,090,403

Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

13. RELATED PARTY TRANSACTIONS

The Trust is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office for cost effectiveness. To further reduce the administrative burden, some Trusts share expenses and may pay a third party on behalf of another Trust(s) on the basis that they will be reimbursed. Thus, at any one time there are amounts payable between trusts some of which fall under the definition of related parties by having trustees in common who are also siblings.

The following amounts are included in Other Debtors (Note 10) and Other Creditors (Note 11) that are due to/from related parties:

14. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022

Income
Income from investments
Other income
Total income and endowments
Resources expended
Cost of raising funds
Investment management costs
Charitable activities
Grant-making:
Grant expenditure
Grant related support costs
Cost of grant-making
Total expenditure
Gains on investments
Exchange gains
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Net expenditure before gains on investments		 Unrestricted Expendable Total Funds
Funds Endowment
2022
£’000
£’000
£’000
740,007
-
740,007
37,789
-
37,789
777,796
-
777,796
-
441,916
441,916
1,278,926
-
1,278,926
374,653
-
374,653
1,653,579
-
1,653,579
1,653,579
441,916
2,095,495
(875,783)
(441,916)
(1,317,699)
-
5,824,521
5,824,521
-
110,829
110,829
875,783
(875,783)
-
-
4,617,651
4,617,651
-
48,472,752
48,472,752
-
53,090,403
53,090,403

Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS - APPENDIX A

GRANTS PAYABLE

The amount payable for the year ended 5 April 2023 consisted of the following:

£

Literacy Support

Schoolreaders
Environment - UK
Accounting for Sustainability (A4S)
Ashden Climate Solutions
British Academy of Film & Television Awards (BAFTA)
ClientEarth
Climate Outreach
Climate Safe Lending Network (CSLN)
Environmental Funders' Network
Friends of the Earth Charitable Trust
Global Action Plan
Global Legal Action Network (GLAN)
Harmony Project
Perspectiva
Platform
Purpose Disruptors
The Social Change Nest
University of Cambridge Department of Land Economy
WCSFP (World Congress of Science and Factual Producers) Budget
Net grants payable/cancelled up to £20,000
General
Footprints Women's Centre
Granville Community Kitchen
Turkey Mozaik Foundation
Woodlands Community Development Trust
Net grants payable/cancelled up to £6,000
Total grants payable per Statement of Financial Activities		 80,000
50,000
50,000
90,000
27,777
55,000
60,000
38,250
29,850
54,275
50,001
120,000
70,000
59,705
110,000
91,666
60,000
51,032
210,793
10,000
7,500
10,000
10,000
25,200
1,421,049

GRANTS PAYABLE

The amount payable for the year ended 5 April 2022 consisted of the following:

Literacy Support
Age UK Staffordshire
Environment - UK
Purpose Disruptors
Perspectiva
Global Legal Action Network (GLAN)
Green Finance Institute
ClientEarth
Forest Peoples Programmes
Christian Aid
Finance Innovation Lab
Global Greengrants Fund UK
On Road Media
Laudato Si’ Movement
Peers for the Planet
PR Budget
People & Planet
Platform
Friends of the Earth Charitable Trust
C40 Cities Climate Leadership Group
The Centre for the Study of Existential Risk
Net grants payable/cancelled up to £20,000
General
The Passage, Victoria
Net grants payable/cancelled up to £6,000
Total grants payable per Statement of Financial Activities		 £
(10,000)
342,000
70,000
60,000
60,000
55,556
53,300
50,000
50,000
50,000
50,000
45,000
40,000
33,000
30,000
26,767
26,106
25,000
22,000
128,197
10,000
62,000
1,278,926

Report and Accounts – 5 April 2023