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2023-04-05-accounts

T H E M A R K L E O N A R D T R U S T

ANNUAL REPORT AND FINANCIAL STATEMENTS

5 APRIL 2023

The Peak 5 Wilton Road London SW1V 1AP

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 - 28

T H E M A R K L E O N A R D T R U S T

Legal and Administrative

The Mark Leonard Trust (No. 1040323) was established under a Trust Deed dated 14 July 1994 and became a registered charity on 22 August 1994.

Trustees Mr M L Sainsbury
Mrs Z Sainsbury
Mr J J Sainsbury
Registered The Peak
Office 5 Wilton Road
London SW1V 1AP
Principal Mrs K Everett Chief Operating Officer
Officers Mr M Woodruff Executive
Mrs S Ferguson Executive
Mr D Chin Executive
Mr A Shah Senior Finance Partner
All the Principal Officers are employed on a part-time basis.
Bankers Royal Bank of Scotland
119 - 121 Victoria Street
London
SW1E 6RA
Solicitors 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
Auditors Sayer Vincent LLP
Invicta House
108 - 114 Golden Lane
London
EC1Y 0TL
Investment Schroder & Co. Limited
Advisers 12 Moorgate
London EC2R 6DA

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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.

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 closely align with the Trustees’ areas of interest. Grants are not normally made to individuals. The Trustees’ objective is to develop both organisational capacity and impact, through a major grants Portfolio for mutual learning and problem solving among charities in the fields of youth work, the environment, music and social need, as well as through the Climate Change Collaboration to accelerate the achievement of a low carbon society. Further information can be found starting on page 7. In all their grants, the Trustees look for strong planning for the engagement of individuals and the wider community, for social and environmental change.

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 areas of interest that the Trust supports, demonstrates the benefit to its beneficiaries and, through them, to the public that arise from those activities.

Achievements and Financial Review

The Trustees met three times during the year to make grants and review investments.

The net expenditure before investment and foreign exchange movements was £603,560 (2022: Net income £1,282,715). The net unrestricted income of the Trust for the year after charging grant related support costs was £631,986 compared to £57,364 for the year to 5 April 2022.

During the year the Settlor made a generous unrestricted cash donation of £480,000 on which gift aid of £120,000 was recovered (2022: Cash donation £72,000 and gift aid £18,000).

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.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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 36 grants totalling £1,174,713 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.

Climate Change Collaboration
Environment
- Venture Portfolio
- Non Portfolio
Food
- Venture Portfolio
- Non Portfolio
Music & Social Need
- Venture Portfolio
- Non Portfolio
Youth Work
- Venture Portfolio
- Non Portfolio
Portfolio Support
General		 Grants Approved Grants Approved Grants Approved Payments made Payments made
Number £ % £ %
16
-
13
2
-
1
-
-
-
1
3		 234,511
-
348,396
170,000
-
325,000
-
-
-
41,306
55,500		 20.0
0.0
29.7
14.4
0.0
27.7
0.0
0.0
0.0
3.5
4.7		 344,214
40,000
156,896
90,000
-
145,000
-
96,000
30,000
41,306
70,500		 34.0
3.9
15.4
8.9
0.0
14.3
0.0
9.5
3.0
4.0
7.0
36 1,174,713 100.0 1,013,916 100.0

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 12 months are accrued in the accounts.

The need for unrestricted income funds will vary from year to year and the Trustees will continue to review the position. At the balance sheet date, the Trustees are aware of the balance on both unrestricted funds and the expendable endowment. As agreed, and planned, any grants that cannot be paid from unrestricted income will be paid from the expendable endowment.

As of 5 April 2023, the Trust held total funds of £21.24m (2022: £22.74m) which includes expendable endowment of £21.24m (2022: £22.74m).

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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.

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.

During the previous reporting period, the Trust had a three-day High Court hearing to obtain legal clarity on trustee investment duties. In court, the Trustees were represented by Edward Cumming QC and Maxim Cardew at the High Court against Counsel for the Attorney General and Counsel for the Charity Commission. The Trustees sought legal clarity on whether an investment policy aligning investments with the Paris Agreement could be adopted; it was unclear if trustees could forego prioritising maximum financial return to remove potential conflicting investments (i.e., company operations which are contrary to 1.5 degrees global temperature) from the portfolio.

On 29 April 2022, Trustees received the Butler-Sloss judgment. 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 High Court blessed the Trust’s decision to adopt the Paris-aligned investment policy; the trustees formally adopted the new investment policy on 18 May 2022. Trustees instructed the fund manager to implement it during the next reporting period.

On 15 November 2022, the Charity Commission published an update on investment guidance for charity trustees following the case of Butler- Sloss case and ahead of publishing a revised guidance (CC14). Trustees were concerned about the accuracy and lawfulness of the update. The Trustees communicated this to the Charity Commission, clarifying how the update, in their considered opinion, did not reflect the law as set out in the Butler-Sloss judgment. The Trustees’ intention was to support the Charity Commission produce accurate CC14 guidance, and so far as possible, avoiding any need for a future legal challenge to ensure the accuracy of the guidance.

The Trustees are committed to using some of the Trust’s expendable endowment for impact investing that will not only result in a financial return, but also produce social and environmental benefits that accord with the Trust’s objectives. Initially, focus was on four different sectors: forestry, microfinance in developing countries, renewable energy and clean technology infrastructure and this was extended to include social impact. The Trustees are interested in sharing their experience in impact investing with other investors to improve their own knowledge in these areas, and also in encouraging 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 -1.9%, under-performing 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

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

energy, energy efficiency and clean tech. This decision has not had a detrimental financial impact on the value of the Trust’s investment portfolio over the longer term.

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. They consider climate change poses major risks to financial markets and are acting, for example through support to the Carbon Tracker Initiative, to encourage the finance sector to address these risks. The Trustees regularly review investment strategy and monitor financial performance. They also operate a grant distribution formula which 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 grantee charity. 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 a thorough assessment and grants are regularly monitored; multi-year grants are paid only on receipt of satisfactory progress reports.

Organisation

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

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 Mark Leonard Trust; they set the Trust’s strategy, review proposals and approve grants. The Trustees delegate day-to-day operations to the Trust’s Executives.

The Trust was part of the 2027 Associate programme, which supports people from disadvantaged backgrounds find employment within the grant-making sector. In October 2022, the Trust took on Jo Bushay as the Mark Leonard Trust’s first 2027 Associate.

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 key 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 full reward evaluation process during 2021/2022, in order to ensure that the Trusts fully meet their responsibilities and aspirations for fair and equal pay for employees.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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 raise funds from the public and as such has no fundraising activities requiring disclosure under SI 62A of the Charities Act 2011.

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.

G R A N T S A P P R O V E D

PORTFOLIO OF VENTURES

Since 2011, the Trustees have been realising their long-term aim to provide grants to fewer charities in their priority areas, but at a higher level of funding than previously, towards deeper organisational development, greater financial sustainability and wider impact. They have selected organisations that can see themselves as ventures in which the Mark Leonard Trust is investing, rather than simply as recipients of revenue grants.

Typically, a grant of up to seven years is offered. The Trust also provides developmental support to build the capacity of each charity on areas such as fundraising, digital media and staff development. These charities are current members of the Portfolio:

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

There was greater demand on all of the charities’ services as the world transitioned out of the pandemic and living costs increased. The fundraising environment has also been challenging for the same reasons. The Trust continued its partnership with Brightspot Fundraising (a consultancy providing fundraising training) to train and advise the CEOs and staff of each venture on methods of effective fundraising for the charities. The Trust partnered with OneThought to support staff and CEOs have greater mental resilience to handle these pressures. OneThought seeks to help people achieve mental clarity in the face of difficult emotional states and external pressures. This training was aimed to help CEOs and staff achieve clearer thinking, so they can better support their charity’s development and experience more professional fulfilment.

PORTFOLIO OF VENTURES - £41,306

Portfolio Consultancy Support - £41,306

Towards Consultancy Support for ventures in 2022/23.

SUSTAINABLE FOOD - £170,000

Chefs in Schools - £120,000

Towards core funding

Sustainable Restaurant Association - £50,000

For the development of the online platform for its new rating system

MUSIC & SOCIAL NEED - £325,000

The Paraorchestra & Friends - £325,000

Creating and building a new, beneficial ecology within the cultural sector for disabled musicians and building ParaOrchestra’s staffing and capacity for impact.

CLIMATE CHANGE COLLABORATION

The Mark Leonard Trust is part of the Climate Change Collaboration (CCC) with two other Sainsbury Family Charitable Trusts (The JJ Charitable Trust and The Aurora Trust). The Collaboration’s mission is to support efforts which help stabilise global temperatures to 1.5

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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.

CLIMATE CHANGE COLLABORATION - £234,511

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).

Friends of the Earth Charitable Trust - £1,004

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

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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.

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.

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

£33,333 – To contribute to its Kick Fossil Fuels out of Football campaign. £1,070 – 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.

The Social Change Nest - £63,334

To contribute to core funding.

OTHER ENVIRONMENT

The Trustees’ constant focus on environmental sustainability is largely directed through the Climate Change Collaboration and the Portfolio of Ventures, they make. Occasionally, they make some one-off grants.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

OTHER ENVIRONMENT GRANTS - £348,396

Ashden Climate Solutions - £40,000 A contribution towards core costs.

Black Mountain College - £30,000

A contribution towards core costs.

Canterbury Oast Trust - £8,846

To cover the salary of the Rare Breeds Centre’s gardener.

Fair Shot - £15,800

Towards core costs and funding Fairshot to move its café to Covent Garden.

In Place of War - £7,000 Towards the Arctic Sonic project.

Regenerative Viticulture Foundation - £5,000

A contribution towards staff costs.

Mission Kitchen - £25,000 Towards the costs of the Future of Fat event taking place in 2023

MLT Portfolio delegate budget - £108,000 Portfolio delegated budget in 2023/24 towards staff and organisational development.

Royal Agricultural University - £18,750 To the Royal Agricultural University for its retreat for farming educators on transforming teaching on agriculture.

Real Farming Trust - £40,000 Towards the mentoring budget for LEAF 2.

Save the Rhino International - £5,000

Towards the follow-the-money investigation

Switchback Initiative - (known as Switchback) - £5,000 Christmas fundraising round

The House of Fairytales - £40,000

A contribution towards core costs of The Great Imagining.

GENERAL - £55,500

Flying Seagull Project - £45,000

Towards the development plans of the Flying Seagulls Project

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

Napier Friends - £500.00 Christmas Rucksack Appeal

Turkey Mozaik Foundation - £10,000 Turkey Earthquake Emergency Fund

Future Plans

The Trust will continue to support the activities set out on pages 6 to 11 by the award of grants.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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 16 November 2023 and signed on their behalf by:

……………………………………….

TRUSTEE

M L Sainsbury

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

Independent Auditor’s Report to the Trustees of The Mark Leonard Trust

Opinion

We have audited the financial statements of The Mark Leonard 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 Mark Leonard Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised 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.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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:

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

T H E M A R K L E O N A R D T R U S T

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 14 December 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

T H E M A R K L E O N A R D T R U S T

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 5 APRIL 2023

Notes
Income
Donations and gifts
Investment income
3
Other income
Total income and endowments
Resources expended
Cost of raising funds
Investment management costs
4
Charitable activities
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
£
£
£
£
600,000
-
600,000
90,000
297,460
-
297,460
293,171
16,864
-
16,864
39,249
914,324
-
914,324
422,420
-
100,051
100,051
314,849
1,135,495
-
1,135,495
1,025,230
282,338
-
282,338
365,056
1,417,833
-
1,417,833
1,390,286
1,417,833
100,051
1,517,884
1,705,135
(503,509)
(100,051)
(603,560)
(1,282,715)
-
(947,249)
(947,249)
2,365,963
-
53,237
53,237
36,222
503,509
(503,509)
-
-
-
(1,497,572)
(1,497,572)
1,119,470
-
22,742,505
22,742,505
21,623,035
-
21,244,933
21,244,933
22,742,505

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 28 form part of these accounts.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

BALANCE SHEET

AS AT 5 APRIL 2023

FIXED ASSETS
Tangible fixed assets
Investments
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
INCOME FUNDS
Unrestricted funds		 Notes Notes 2023
2022
£
£
5,327
6,659
21,722,488
23,367,659
21,727,815
23,374,318

62,801

312,411
375,212

1,007,025
(482,882)
(631,813)
21,244,933
22,742,505
21,244,933
22,742,505
-
-
21,244,933
22,742,505
8
9
10
11
12
12		 £
37,504
424,849
462,353
945,235

The financial statements were approved and authorised for issue by the Trustees on 16 November 2023 and were signed on their behalf by :

……………………………………………

TRUSTEE

M L Sainsbury

The notes on pages 19 to 28 form part of these accounts.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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 provided 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
£
(936,181)
297,460
53,237
(4,035,919)
5,373,746
1,688,524
752,343
529,043
1,281,386
2023
£
(1,497,572)
947,249
(297,460)
(53,237)
1,332
25,297
(61,790)
(936,181)		 2022
£
(1,299,050)
293,171
36,222
(3,320,728)
3,844,012
852,677
(446,373)
975,416
529,043
2022
£
1,119,470
(2,365,963)
(293,171)
(36,222)
2,832
(32,921)
306,925
(1,299,050)

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
£
£
£
424,849
312,411
112,438
856,537
216,632
639,905
1,281,386
529,043
752,343

The notes on pages 19 to 28 form part of these accounts.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

NOTES TO THE ACCOUNTS

1. CHARITABLE STATUS

The Mark Leonard Trust is an unincorporated charty (Charity registration number 1040323), 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:

The view of the trustees is that any instalments payable within 12 months of the reporting date are expected to be paid regardless of the status of attached conditions and so these are accrued. Any payments due in more than 12 months from the reporting date, where conditions exist that have not been met at the reporting date, are not accrued but are reported as an unaccrued future commitment.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

NOTES TO THE ACCOUNTS

2. PRINCIPAL ACCOUNTING POLICIES continued

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

e) Investments

f) Financial instruments

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

T H E M A R K L E O N A R D T R U S T

NOTES TO THE ACCOUNTS

3. INCOME FROM INVESTMENTS

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
£
%
£
%
4,671
2
285
0
3,700
1
5,498
2
30,816
10
32,576
11
80,291
27
99,891
34
151,095
51
138,235
47
21,157
7
16,686
6
5,730
2
-
-
297,460
100
293,171
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

2023
£
£
£
Reconciliation of grants payable:
Commitments at 6 April 2022
709,127
Grants not accrued at 6 April 2022
577,409
451,000
Grants approved in the year
1,174,713
1,183,994
Grants cancelled, refunded or amended
(35,700)
(32,355)
Grants not accrued at 5 April 2023
(580,927)
(577,409)
Grants payable for the year
1,135,495
Grants paid during the year
(1,013,916)
Commitments at 5 April 2023
830,706
Commitments at 5 April 2023 are payable as follows:
2023
£
Within one year (note 11)
830,706		 2023 2023 2022
£
539,207
1,025,230
(855,310)
830,706 709,127
2023
2022
£
830,706		 £
709,127

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 £451,666 (2022: £577,409). This total is payable during 2024/25, 2025/26 and 2026/27.

A list of grants payable is included in Appendix A.

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

NOTES TO THE ACCOUNTS

6. GRANT RELATED SUPPORT COSTS

GRANT RELATED 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
Allocated
£
£
£
195,302
4,708
200,010
29,120
-
29,120
15,239
-
15,239
1,332
-
1,332
18,592
-
18,592
10,245
-
10,245
-
7,800
7,800
269,830
12,508
282,338

^ Legal and professional fees higher in previous year due to the Butler-Sloss case.

During the year no Trustee received any remuneration (2022: £nil). Trustees were reimbursed expenses of £nil (2022: £nil).

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
Allocated
£
£
£
163,391
4,356
167,747
32,162
-
32,162
16,707
-
16,707
2,832
-
2,832
138,528
-
138,528
-
7,080
7,080
353,620
11,436
365,056

COMPARATIVE

7. ANALYSIS OF STAFF COSTS

ANALYSIS OF STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2023
2022
£
£
163,463
136,920
19,627
15,491
16,920
15,336
200,010
167,747

The Trust is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office. 1.9% (2022: 1.9%) of the total support and administration costs of these trusts have been allocated to the Mark Leonard 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 13, all on a part-time basis (2022: 13). This equates to to 2.1 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 £132,213 (2022: £98,748). No employee earned in excess of £60,000 (2022: Nil)

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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
 2023
2022
£
£
24,323
24,323
(15,000)
-
9,323
24,323
17,664
14,832
(15,000)
-
1,332
2,832
3,996
17,664
5,327
6,659
6,659
9,491

9. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Market value 5 April 2022
Add: Acquisitions at cost
Less: Disposals at proceeds value
Net (losses) / gains in year
Market value 5 April 2023
Investment cash
Total investments		 2023
2022
£
£
23,151,027
21,308,348
4,035,919
3,320,728
(5,373,746)
(3,844,012)
(947,249)
2,365,963
20,865,951
23,151,027
856,537
216,632
21,722,488
23,367,659

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


Govt fixed interest
Other fixed interest
UK equities
Overseas equities
Alternatives
Other
Cash
Impact investments
Unquoted
Quoted
2023
2022
Cost
Market
Cost
Market
Value
Value
£
£
£
£
778,726
776,019
207,468
255,696
342,738
333,470
280,789
260,630
1,383,814
1,821,497
1,487,071
2,147,625
7,606,859
9,251,378
8,664,775
11,428,162
3,657,288
4,016,376
3,097,378
4,378,469
-
-
250,000
250,000
856,537
856,537
216,632
216,632
3,386,566
3,713,656
3,125,224
3,581,244
870,049
953,555
870,049
849,201
18,882,577
21,722,488
18,199,386
23,367,659

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

NOTES TO THE ACCOUNTS

10. DEBTORS

DEBTORS
Accrued income
Gift Aid debtor
Other debtors		 2023
2022
£
£
36,625
37,621
-
18,000
879
7,180
37,504
62,801

11. CREDITORS - amounts falling due within one year

CREDITORS - amounts falling due within one year

Grants payable within one year
Professional charges
Investment management fee
Other creditors		 2023
2022
£
£
830,706
709,127
8,944
4,560
119
287,010
105,466
6,328
945,235
1,007,025

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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
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
Gains on currency exchange
Transfers between funds
Closing balance as at 5 April 2022		 Unrestricted Expendable
Totals
Funds Endowment
2023
£
£
£
-
5,327
5,327
-
21,722,488
21,722,488
945,116
(482,763)
462,353
(945,116)
(119)
(945,235)
-
21,244,933
21,244,933
-
22,742,505
22,742,505
914,324
-
914,324
-
(100,051)
(100,051)
(1,417,833)
-
(1,417,833)
-
(947,249)
(947,249)
-
53,237
53,237
503,509
(503,509)
-
-
21,244,933
21,244,933
Unrestricted Expendable
Totals
Funds Endowment
2022
£
£
£
-
6,659
6,659
-
23,367,659
23,367,659
720,015
(344,803)
375,212
(720,015)
(287,010)
(1,007,025)
-
22,742,505
22,742,505
152,280
21,470,755
21,623,035
422,420
-
422,420
-
(314,849)
(314,849)
(1,390,286)
-
(1,390,286)
-
2,365,963
2,365,963
-
36,222
36,222
815,586
(815,586)
-
-
22,742,505
22,742,505

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

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.

During the year to 5 April 2023, an unconditional donation of £480,000 was received from Mr M L Sainsbury, the Settlor and Trustee (2022: £72,000).

The following amounts are included in Other Creditors (Note 11) that are due to related parties:

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

Income
Donations and gifts
Investment income
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
£
£
£
90,000
-
90,000
293,171
-
293,171
39,249
-
39,249
422,420
-
422,420
-
314,849
314,849
1,025,230
-
1,025,230
365,056
-
365,056
1,390,286
-
1,390,286
1,390,286
314,849
1,705,135
(967,866)
(314,849)
(1,282,715)
-
2,365,963
2,365,963
-
36,222
36,222
815,586
(815,586)
-
(152,280)
1,271,750
1,119,470
152,280
21,470,755
21,623,035
-
22,742,505
22,742,505

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

NOTES TO THE ACCOUNTS - APPENDIX A

GRANTS PAYABLE

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

Climate Change Collaboration
ClientEarth
Friends of the Earth Charitable Trust
Global Legal Action Network (GLAN)
Green Finance Institute
National Council for Voluntary Organisations (NCVO)
Peers for the Planet
Platform
The Social Change Nest
Grants payable up to £15,000
Environment
Ashden Climate Solutions
Black Mountain College
Environmental Funders' Network
Fair Shot
Mission Kitchen
Real Farming Trust
Royal Agricultural University
The House of Fairytales
Grants payable up to £15,000
Food
Chefs in Schools
Sustainable Restaurant Association
Music & Social Need
In Place of War
Orpheus Centre
The Paraorchestra & Friends
Youth Work
Switchback
General
Flying Seagull Project
Specialist support to beneficiaries
Grants payable up to £15,000
Total grants payable per Statement of Financial Activities:		 £
27,778
29,851
50,000
20,000
20,000
20,000
59,704
41,667
58,293
40,000
30,000
40,000
15,800
25,000
20,000
18,750
40,000
30,846
110,000
50,000
50,000
60,000
130,000
46,000
45,000
41,306
15,500
1,135,495

Report and Accounts – 5 April 2023

T H E M A R K L E O N A R D T R U S T

NOTES TO THE ACCOUNTS - APPENDIX A (continued)

GRANTS PAYABLE

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

Climate Change Collaboration
Ashden Climate Solutions
C40 Cities Climate Leadership Group
ClientEarth
Friends of the Earth Charitable Trust
Global Legal Action Network (GLAN)
Green Finance Institute
Laudato Si’ Movement
On Road Media
Peers for the Planet
People & Planet
Platform
PR Budget
Stop Ecocide Foundation
The Centre for the Study of Existential Risk
Grants payable up to £15,000
Environment
Environmental Funders' Network
Grants payable up to £15,000
Food
Chefs in Schools
Fleetwood Strategy Limited
Music & Social Need
In Place of War
Orpheus Centre
Youth Work
Become - (formerly known as Who Cares? Trust)
Just for Kids Law
General
Specialist support to beneficaries
Grants payable up to £15,000
Total grants payable per Statement of Financial Activities:		 £
50,000
25,000
55,556
26,106
60,000
60,000
45,000
50,000
40,000
30,000
26,767
33,000
15,250
22,000
70,706
40,000
6,000
40,000
30,000
50,000
120,000
50,000
50,000
2,845
27,000
1,025,230

Report and Accounts – 5 April 2023