**Charity Registration No. 1067672**
## **THE KIRSCHEL FOUNDATION**
## **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 JULY 2020**
## **THE KIRSCHEL FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Registered charity name** The Kirschel Foundation **Trustees** Mr L Kirschel Mrs I Kirschel **Charity number** 1067672 **Principal address** 26 Soho Square London W1D 5NU **Independent examiner** Ahsan Miraj FCA Bright Grahame Murray Emperors Gate 114a Cromwell Road London SW7 4AG **Bankers** Lloyds TSB Bank Plc Victoria House Southampton Row London WC1B 5HR
## **THE KIRSCHEL FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 11|
## **THE KIRSCHEL FOUNDATION**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2020**
The trustees present their report and financial statements for the year ended 31 July 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's declaration of trust dated 8 October 1997 , the Charities Act 2011 and “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) (effective 1 January 2015)”
## **Objectives and activities**
The charitable objectives of the Kirschel Foundation, as approved by the Charity Commission, is the promotion of the internal spirituality and harmony which leads to positive thought and action.
The objectives and activities fully reflect the purposes that the trust was set up to further. The trustees have referred to the guidance contained in the Charity Commission's advice on public benefit when reviewing the objectives and activities and when planning for future periods.
## **Covid 19 - Overall risk to operations**
Since 31 December 2019, the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Global stock markets have also experienced great volatility and a significant weakening. Governments and central banks have responded with monetary and fiscal interventions to stabilize economic conditions. The entity’s financial position and performance is likely to be affected by these events for future periods.
The charity has determined that these events are adjusting subsequent events. However, the trustees do not believe that there are any adjustments required to t he financial position or the results for the year ended 3 1 July 2020 . The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of the company for future periods.
## **Office closure**
On 23 March 2020, in response to the UK government advice and significant decreases in demand resulting from social distancing efforts, quarantines and border closures related to the spread of COVID-19, the company announced that it would temporarily close its office.
## **Post year end trading**
A review of the first five months of the year indicates no significant changes in operations, it is anticipated, the impact of the pandemic will be minimal.
## **Achievements and performance Financial review**
During the year the Foundation made donations to Aharat Shalom Charity Fund, Jewish Learning Exchange, Dalaid and Gateshead Academy for Torah Studies as well as numerous other donations set out in Note 6 to the financial statements.
There are no subsidiary undertakings and the trustees do not believe that the Charity is exposed to any major risks.
- 1 -
## **THE KIRSCHEL FOUNDATION**
## **TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **Reserves policy**
It is the trustees' policy to maintain the charity's reserves at a sufficient level to assist in its working capital requirements for future years. At the balance sheet date the charity reserves amounted to £14,357 (2019: £35,914).
## **The investment policy**
The trustees' policy is to hold any surplus funds in interest bearing bank accounts.
## **Plans for future periods**
The Foundation has no plans to change its current objectives and activities and intends to continue making donations as long as reserves are available.
## **Structure, governance and management**
The charity is governed by declaration of trust dated 8 October 1997. The organisational structure is such that the trustees are the officers of the organisation and are responsible for the day to day activity of the Charity.
The power of appointing trustees is vested in the Board of Trustees.
There are no paid employees of the Charity and the Foundation operates from the premises of one of the trustees. There is no relationship with any charity, although there is a close relationship with Consolidated Property Corporation Limited, Consolidated Developments Limited, Consolidated Hotels Limited and Consolidated Property Corporation Inc Limited, companies in which one of the trustees is a director and has a beneficial interest. During the period these companies made donations to the Kirschel Foundation totalling £20,000 (2019: £141,000).
The trustees who served during the year and up to the date of signature of the financial statements were: Mr L Kirschel
Mrs I Kirschel
The trustees r eport was approved by the Board of Trustees.
## **Mr L Kirschel**
Trustee
Approved by the trustees on: 17 May 2021
- 2 -
## **THE KIRSCHEL FOUNDATION**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE KIRSCHEL FOUNDATION**
I report to the trustees on my examination of the financial statements of The Kirschel Foundation (the charity) for the year ended 31 July 2020.
## **Responsibilities and basis of report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
## **Ahsan Miraj (FCA) Bright Grahame Murray Chartered Accountants**
## **Statutory Auditor**
Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG
17 May 2021
- 3 -
## **THE KIRSCHEL FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2020**
|**Unrestricted Endowment**
**funds**
**funds**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
42,500
-
Charitable activities
Investments
**3**
7
-
**Total income**
42,507
-
**Expenditure on:**
Charitable activities
**4**
64,064
-
**Net (expenditure)/income for the year/**
**Net movement in funds**
(21,557)
-
Fund balances at 1 August 2019
35,904
10
**Fund balances at 31 July 2020**
14,347
10|**Total**
**2020**
**£**
42,500
7
42,507
64,064
(21,557)
35,914
14,357|**Total**
**2019**
**£**
231,000
14|
|---|---|---|
|||231,014|
|||218,970|
|||12,044
23,870|
|||35,914|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
## **THE KIRSCHEL FOUNDATION**
## **BALANCE SHEET**
## **AS AT 31 JULY 2020**
|**Notes**
**Current assets**
Debtors
**10**
Cash at bank and in hand
Net current assets
**Capital funds**
Endowment funds
**Income funds**
Unrestricted funds - general|**2020**
**£**
12,873
1,484
14,357|**£**
14,357
10
14,347
14,357|**2019**
**£**
42
35,872
35,914|**£**
35,914
10
35,904
35,914|
|---|---|---|---|---|
The financial statements were approved by the Trustees on 17 May 2021
Mr L Kirschel **Trustee**
- 5 -
## **THE KIRSCHEL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020**
## **1 Accounting policies**
## **Company information**
The Kirschel Foundation is an unincorporated trust governed by a declaration of trust dated 8 October 1997.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011 and "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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
As set out in the trustees' report during the early part of 2020 the international community was impacted by the COVID-19 pandemic, which caused significant disruption to UK businesses. The trustees ha ve assessed the risk that the charity is not a going concern, with reference to its financial position and performance . The charity forecasts that it is able to continue to meet all of its obligations .
The trustees are not aware of any significant impact from the COVID-19 pandemic on the charity's operations. However, the trustees continue to assess its impact on an ongoing basis .
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds subject to specific restrictive conditions imposed as set out in the notes to the financial statements.
## 1.4 **Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised on receipt .
- 1.5 **Resources expended**
- 6 -
## **THE KIRSCHEL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **1 Accounting policies**
## **(Continued)**
All expenditure is accounted for on an accrual basis and has been listed under headings that aggregate all costs related to that activity.
## **1.6 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.7 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## **2 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2020**|2019|
||**£**|£|
|Donations and gifts|42,500|231,000|
|**Donations and gifts**|||
|Gifts and Donations|20,000|231,000|
|Gift Aid|22,500|-|
||42,500|231,000|
## **3 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2020**|2019|
||**£**|£|
|Interest receivable|7|14|
- 7 -
## **THE KIRSCHEL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **4 Charitable activities**
||**Unrestricted**|
**Unrestricted**|
|---|---|---|
||**Funds**|
**Funds**|
||**2020**|
**2019**|
||**£**|
**£**|
|Policy, campaigning and research|169|
121|
|Grant funding of activities (see note 5)|63,750|
218,697|
|Share of governance costs (see note 6)|145|
152|
||64,064|
218,970|
- 8 -
## **THE KIRSCHEL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **5 Grants payable**
|**Unrestricted**
**Funds**
**£**
Grants to institutions:
Hampstead Village Shul
15,000
Aharat Shalom Charity Fund
18,750
Jewish Learning Exchange
5,250
Gateshead Academy for Torah Studies
5,625
Friends of Lubavitch Scotland
3,375
Chai Cancer Care
-
Dalaid
3,750
Jewish Care
3,000
Naima JPS
-
S.O.F.T
-
Tivka UK
-
Kisharon
-
B.S.D
-
Camp Simcha
-
Kollel Gur
500
Beit Halochem UK
3,000
Chabad Lubavitch
-
Yossis Olaich Charitable Trust
-
EM Sascha
-
British Friends of Shalva
5,000
Chana
-
Children in Crisis
-
Macmillan Cancer Support
March of the living
-
RSH Mishkan
-
Standing Voice
-
United Talmudical Associates Ltd
-
Other
500
63,750|**2019**
**£**
8,297
75,000
21,000
25,000
13,500
200
15,000
5,000
3,000
8,000
11,200
2,500
3,000
4,000
500
-
2,500
2,000
1,500
1,500
2,000
1,000
500
2,500
3,000
2,000
5,000
-
218,697|
|---|---|
- 9 -
## **THE KIRSCHEL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **6 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Bank charges
-
145
-
145
Analysed between
Charitable activities
-
145|**2020**
Support
costs
Governance
costs
**£**
£
£
145
-
152
145
-
152
145
-
152|2019
£
152
152
152|
|---|---|---|
## **7 Other income**
All work done on behalf of the Foundation was carried out by volunteers and whilst an address and office are made available, no charges have been made. The trustees have not estimated the sum involved as it is considered to be immaterial.
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **9 Employees**
The average monthly number of employees during the year was:
|||**2020**|**2019**|
|---|---|---|---|
|||**Number**|**Number**|
||Total|-|-|
|**10**|**Debtors**|||
|||**2020**|**2019**|
||**Amounts falling due within one year:**|**£**|**£**|
||Other debtors|12,873|-|
||Prepayments and accrued income|-|42|
|||12,873|42|
- 10 -
## **THE KIRSCHEL FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020**
## **11 Related party transactions**
During the period the charity received donations of £Nil (2019: £90,000) from Mr L G Kirschel and £20,000 (2019: £141,000) from Consolidated Property Corporation Ltd, a company in which the trustee, Mr L G Kirschel, is a director and has a beneficial interest.
At the balance sheet date included in debtors is an amount of £12,873 (2019: £Nil) due from Adot Foundation, a charity registered in England and Wales in which Mr L G Kirschel is a trustee.
## **12 Analysis of net assets between funds**
|**Unrestricted**
**Funds**
**Endowment**
**Fund**
**2020**
**2020**
**£**
**£**
Fund balances at 31
July 2020 are
represented by:
Current assets/
(liabilities)
14,357
-
14,357
-|**Total**Unrestricted
Funds
Endowment
Fund
**2020**
2019
2019
**£**
£
£
14,357
35,904
10
14,357
35,904
10|Total
2019
£
35,914
35,914|
|---|---|---|
- 11 -