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← The Indigo Trust

2023-04-05-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS

5 APRIL 2023

The Peak 5 Wilton Road London SW1V 1AP

I

CONTENTS CONTENTS PAGE
1 Legal and Administrative Details 2
2 Trustees’ Report 3-10
3 Statement of Trustees’ Responsibilities 11
4 Independent Auditor’s Report 12-15
5 Statement of Financial Activities 16
6 Balance Sheet 17
7 Statement of Cash Flows 18
8 Notes to the Accounts 19-28

Annual Report and Accounts – 5 April 2023

Legal and Administrative

The Indigo Trust was established under a Trust Deed dated 27 April 1999 and became a registered charity with the Charity Commission in England and Wales on 10 June 1999 (registration no. 1075920).

Trustees
Registered
Office
Principal
Officers
Bankers
Solicitors
Auditor
Investment
Advisers
Objects		 Francesca Perrin OBE
William Perrin OBE
Dominic Flynn
Sameer Padania
Sonia Sodha
The Peak
5 Wilton Road
London SW1V 1AP
Karen Everett
Chief Executive Officer
Thrisha Haldar
Lead Executive
Royal Bank of Scotland
119 - 121 Victoria Street
London
SW1E 6RA
Portrait Solicitors (up to 31 July 2022)
21 Whitefriars Street
London EC4Y 8JJ
BDB Pitmans LLP (as from 1 August 2022)
1 Bartholomew Close
London EC1A 7BL
Sayer Vincent LLP
Invicta House
108 - 114 Golden Lane
London
Cazenove Capital
12 Moorgate
London EC2R 6DA
The objects of the Trust as given in the Trust Deed are for general charitable
purposes.

Annual Report and Accounts – 5 April 2023

Trustees’ Report

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

Legal and administrative information set out on page 2 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.

Organisation

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

Trustees are appointed by the Settlor and are provided with relevant information relating to their responsibilities as Trustees.

Trustees are aware of the Charity Governance Code, as updated in 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 taking into account 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 Trust and its Trustees are familiar with the requirements and duties set out in the Charities (Protection and Social Investment) Act 2016. The Trust’s income is generated from investments, for which Trustees set specific policies (see page 6). As the Trust does not undertake fundraising from the general public and does not use professional fundraisers or commercial participators, the Trust is not part of any regulatory scheme relating to fundraising and as such has received no complaints in relation to fundraising.

Grant-Making Strategy

During this financial year, The Indigo Trust awarded 26 grants totalling £3,083,757. Of these grants, 19 were unrestricted and accounted for 70% of our total funding for the year. Grantee-partners are best placed to decide how to deploy resources to achieve their aims and for the communities they serve.

The Trust proactively researches and identifies organisations that align with its funding priorities. It does not currently accept any unsolicited proposals.

More detailed information about its grant-making strategy and grant awards can be found on its website here. For a list of grantees in the year 2022/23, see pages 8-10.

In November 2022, the Indigo Team, Trustees and Staff, reviewed and reflected on the Trust’s strengths and areas for development in its approach to grant-making.

Annual Report and Accounts – 5 April 2023

The Trust strives to practice relational, transparent, and equitable grant making. To achieve this, the team works alongside grantees, acknowledging their expertise and welcoming their insights to inform the Trust’s practice.

For external scrutiny and accountability, the Trust has become a partner in the Foundation Practice Rating initiative, which rates Foundations on their transparency, diversity and accountability on an annual basis. Results of the rating revealed that the Trust could be more robust in addressing Diversity, Equity and Inclusion. In response, the Trust will set itself measurable targets and will regularly reflect on progress. This will be implemented in 2023-24.

The Trust funds in 6 thematic areas, usually to organisations at early stages of development. Grantees are identified proactively through research and insights from a diverse range of civil society voices.

The Indigo Trust’s funding priority areas are:

Access to Justice (Global)

Internationally, the Trust continued to support AfricanLII and Laws.Africa who make case law accessible to individuals, organisations, and governments by building and maintaining sustainable free access to law portals across Africa and beyond. Funding this work plays to Indigo’s strength of mobilising data transparency to improve democracy.

Access to Justice (UK)

Cuts to legal aid and growing inequality over the past decade has stretched the specialist legal advice sector at a time when their work is needed more than ever by the most marginalised in our society. Housing and immigration advice work, which requires a high level of skill and expertise, are in high demand.

The Trust played a role in addressing these issues by pooling funds with a number of expert funders in this area to form the Community Justice Fund. This collaborative fund was set up in response to the Covid-19 crisis to rapidly support front line specialist legal advice centres through grants and capacity building. The Trust continued to be an active partner by informing the strategy, in consultation with the sector, contributing £100,000 to support the fund and supporting fundraising to secure longer term additional funds for frontline organisations providing free legal advice to those at risk of homelessness, debt, and precarious immigration status.

Racial Justice

The Trust remains committed to learning, improving and being transparent about Diversity, Equity and Inclusion. As part of this journey, The Trust became a member of the Funders for Race Equality Alliance and undertook an audit of its grant-making to understand which organisations in the portfolio are led by and for people of colour. This is an ongoing process and the Trust will continue to monitor the diversity of its grantee portfolio to inform its grant making practice.

Annual Report and Accounts – 5 April 2023

As a key partner to 360 Giving, the Trust is also using its influence and voice to increase awareness of the Diversity, Equity and Inclusion Data Standard developed by 360Giving, which will enable donors to measure and track funding flows and whether certain groups are consistently underfunded.

In addition, the Trust hosted a 2027 Associate – a scheme that places talented people from working class backgrounds into grant-making foundations for mutual learning and as part of a goal to diversify the grant making sector by 2027.

In terms of grant-making, the Trust was a founding funder of Black Equity Organisation and the Baobab Foundation, whom it continues to learn from and support through grant-making and sharing networks.

Prevention of Child Sexual Abuse

The Trust prioritises funding work that is less well supported by other donors, either because it is perceived as risky or unpopular or is a less understood issue. During 2022-23 Indigo continued to fund three front-line UK organisations addressing this issue from a range of angles – perpetrator prevention, online abuse and training and support for UK professionals in identifying and responding to CSA. The Trust has also been in discussions with a range of funder collaborations, academics and civil society leaders addressing the issue to inform our approach from 2023 onwards.

Visual Impairment

The Trust recognises that data initiatives can provide essential information to policy makers and those implementing change at scale. In the field of eyecare in low to middle income countries, Indigo Trust supported the London School of Hygiene and Tropical Medicine to develop a new website which makes accessible the Rapid Assessment of Avoidable Blindness (RAAB) survey data. The data includes 300 surveys of visual impairment and blindness in over 80 countries which enables policy makers and programme planners to identify where their interventions would be most impactful. The Trust also supported more programmatic interventions to address visual impairment in low-income countries, though activities were delayed considerably due to Covid-19.

Better Grant-Making

As a founding funder of 360 Giving, the Trust has been instrumental in enabling more transparency and collaboration amongst donors. In 2023, 257 funders were sharing data on over 860,000 grants worth over £213 billion, and over 35,000 people a year were accessing and using this data.

The Trust is also an active member of the Foundation Practice Rating, which rates grant-makers, without their permission, on their transparency, accountability and diversity. Indigo’s Lead Executive contributed to discussion and raising awareness of the rating and aspirations for improving grantmaking practices across the UK. Shining a light on foundation practice (civilsociety.co.uk)

The Trust also convened grantee practitioners from the majority world together with several Trusts and Foundations to address power dynamics and interrogate grant-making practices. The event was co-hosted with Alliance Magazine, whose article below summarises key themes and actions. - Power and knowledge hierarchies in philanthropy, activism and beyond Alliance magazine

Annual Report and Accounts – 5 April 2023

Discretionary Grants

To test and learn from a range of civil society groups, Trustees and the staff team identify groups and organisations to support with modest grants.

Investment Powers

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.

Investment Policy and Performance

The Trustees regularly meet the investment manager to discuss strategy and review performance.

The Trust’s expendable endowment funds are invested to generate income and provide long-term capital growth in line with relevant indices. The Trustees have instructed their investment managers to manage the investments on a total return basis to generate long-term positive returns. During the year to 5 April 2023, the total return on the Trust’s investment portfolio was -3% (2022: +7%).

It should be noted that Indigo has no segregated investments in oil and gas and exposure to these areas in co-mingled funds will never exceed 5% of the Trust’s total investments, although we aim for less than 1% exposure. The Trustees will continue to assess opportunities to further divest from fossil fuels and invest in climate solutions.

Reserves Policy and Going Concern

In the year under review, there was a planned deficit of income over expenditure on the unrestricted funds of £2,330,244 (2022: £1,531,137). This has been funded by a transfer from expendable endowment. Whenever it may be necessary in the future, the Trustees are prepared to fund grant commitments from expendable endowment.

The Trustees regularly review cash flow projections for income and expenditure, to ensure that the level of disposable net assets is adequate and that the Trust is in a position to meet all its commitments. As at 5 April 2023, The Trust held total funds of £9.6m (2022: £11.0m). The Trustees are not aware of any material uncertainties that would prevent the financial statements from being prepared on a going concern basis.

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.

Annual Report and Accounts – 5 April 2023

The Trustees have identified as a key risk the misuse of funds by a grantee charity. To mitigate this risk, the awards are made following a thorough assessment and grants are regularly monitored; multiyear grants are paid only on receipt of satisfactory progress reports.

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.

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.

Financial overview of the past year

Trustees met several times during the year to review grants and investments.

During the year, the Trustees made a donation of £1.1m to the Trust, on which gift aid of £275,000 was reclaimed (2022: donation £100,000 and gift aid £25,000) . This has been added to the Expendable Endowment. The net asset value of the Trust decreased by 13% from £11.0m at 5 April 2022 to £9.6m at 5 April 2023.

During the year the Trustees approved 26 grants totalling £3,083,757 (2022: £1,512,845).

Future Plans

The Trust will continue to support activities outlined in the Grant Making Strategy section on pages 3- 6.

Annual Report and Accounts – 5 April 2023

Grants Approved from 06 Apr 2022 to 05 Apr 2023

Access to Justice - Global

Grant No Beneficiary Name Beneficiary Name Period Approved Amount
IND580 International Lawyers Project 1 year 6 December 2022 £15,000
Purpose:
Core funding to support ILP's work.
IND592 African Legal Information Institute (African LII)
3 years		 23 March 2023 £180,000
Purpose:
Three years core funding - £60,000		 in each FY 22/23,
23/24 & 24/25.
IND593 African Legal Information Institute (African LII)
3 yeas		 23 March 2023 £210,000
Purpose:
3 year funding to support the LII Fund for Africa - £70k
each FY 22/23, 23/24 & 24/25.
Total: £405,000
No of Grants: 3
Access to Justice - UK
Grant No Beneficiary Name Period Approved Amount
IND570 Justice Collaborations 1 year 23 May 2022 £50,000
Purpose:
Contribution to the Justice Together Funder
Collaboration.
IND573 Child Poverty Action Group 1 year 19 September 2022 £25,000
Purpose:
To digitise and update in real time CPAG’s expert Fuel
Rights Handbook.
IND575 Ealing Law Centre 3 years 19 October 2022 £165,000
Purpose:
Towards mitigating Cost of Living crisis.
IND576 Cumbria Law Centre 3 years 19 October 2022 £165,000
Purpose:
Towards mitigating Cost of Living crisis.
IND577 Southwark Law Centre 3 years 19 October 2022 £165,000
Purpose:
Towards mitigating Cost of Living crisis.
IND578 Access to Justice Foundation 1 year 19 October 2022 £100,000
Purpose:
Towards the Community Justice Fund's Wave 3
awards.
IND594 Friends, Families & Travellers 1 year 29 March 2023 £20,000
Purpose:
Core funding to support its access to justice work.
Total: £690,000
No of Grants: 7

Annual Report and Accounts – 5 April 2023

Better Grant-making

Grant No Beneficiary Name Period Approved Amount
IND574 Friends Provident Foundation 3 years 14 September 2022 £45,000
Purpose: Towards continuing the Foundation Practice Rating.
IND591 360 Giving 1 year 15 February 2023 £150,000
Purpose: Core Funding for FY 2024/25.
Total: £195,000
No of Grants: 2
Racial Justice
Grant No Beneficiary Name Period Approved Amount
IND569 Black Equity Organisation 3 years 12 May 2022 £300,000
Purpose: Unrestricted core funding over 3 years.
IND569 By and For Foundation - Baobab Foundation 3 years 19 October 2022 £225,000
Purpose: Core unrestricted funding over three years.
Total: £525,000
No of Grants: 2
Trustees’ Discretionary Grants
Grant No Beneficiary Name Period Approved Amount
IND584 Winchester Street Reach 1 year 20 December 2022 £3,000
Purpose: Core unrestricted funding.
IND585 Refugee Cafe 1 year 20 December 2022 £3,000
Purpose: Unrestricted core funding to support its work.
IND586 Healthcare Workers' Foundation 1 year 30 January 2023 £3,000
Purpose: Core unrestricted funding.
IND587 Greater Govanhill CIC 1 year 30 January 2023 £3,000
Purpose: Core funding for Community Newsroom.
IND588 Nia 1 year 30 January 2023 £3,000
Purpose: Core unrestricted funding
IND590 Success Capital Organisation 1 year 08 February 2023 £3,000
Purpose: Core unrestricted funding to support its work.
Total: £18,000
No of Grants: 6

Annual Report and Accounts – 5 April 2023

Prevention of Child Sexual Abuse

Grant No Beneficiary Name Period Approved Amount
IND581 Marie Collins Foundation 1 year 16 December 2022 £105,000
Purpose:
Core unrestricted funding.
IND582 The Lucy Faithfull Foundation 3 years 16 December 2022 £315,000
Purpose:
Core unrestricted funding.
IND583 Centre of Expertise on Child Sexual Abuse 3 years 16 December 2022 £324,000
Purpose:
Core unrestricted funding to support its work.
Total: £744,000
No of Grants: 3
Visual Impairment
Grant No Beneficiary Name Period Approved Amount
IND571 Eyelliance 1 year 4 July 2022 £25,142
Purpose:
Advocacy, research and practical work to address URE
- core funding.
IND572 London School of Hygiene & Tropical Medicine 1 year 04 July 2022 £160,777
Purpose:
To increase access to and use of RAAB data through a
new website.
IND589 London School of Hygiene & Tropical Medicine 2 years 31 January 2023 £320,838
Purpose:
To increase access to and use of RAAB data via new
website.
Total: £506,757
No of Grants: 3
Total grants approved: £3,083,757
Total no of grants approved: 26

Annual Report and Accounts – 5 April 2023

Statement of Trustees’ Responsibilities

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.

The Trustees’ Report has been approved by the Trustees on 30 November 2023 and signed on their behalf by:

TRUSTEE

Francesca Perrin OBE

Annual Report and Accounts – 5 April 2023

Independent Auditor’s Report to the Trustees of The Indigo Trust

Opinion

We have audited the financial statements of The Indigo 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 Indigo 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

Annual Report and Accounts – 5 April 2023

Independent Auditor’s Report to the Trustees of The Indigo Trust (continued)

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:

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

Annual Report and Accounts – 5 April 2023

Independent Auditor’s Report to the Trustees of The Indigo Trust (continued)

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 non-compliance with laws and regulations, our procedures included the following:

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.

Annual Report and Accounts – 5 April 2023

Independent Auditor’s Report to the Trustees of The Indigo Trust (continued)

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 8 January 2024

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

Annual Report and Accounts – 5 April 2023

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 5 APRIL 2023


Notes
Income and Endowment from:
Donations and gifts
Investments
3
Bank and short term deposit interest
Total Income
Expenditure on:
Raising funds:
Investment management fees
Charitable activity:
Grant-making:
Grant expenditure
4
Grant related support costs
5
Total Expenditure
Net (expenditure)/income
before (losses)/gains on investments
Net (losses)/gains on investments
8
Transfers between funds
11
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Expendable
Total Funds
Funds
Endowment
2023
£
£
£
-
1,375,000
1,375,000
129,461
-
129,461
55,444
-
55,444
184,905
1,375,000
1,559,905		 Total Funds
2022
£
125,000
150,540
8,863
284,403
-
28,861
28,861
2,305,147
-
2,305,147
210,002
-
210,002
30,335
1,267,845
422,695
2,515,149
28,861
2,544,010
(2,330,244)
1,346,139
(984,105)
-
(417,012)
(417,012)
2,330,244
(2,330,244)
-
-
(1,401,117)
(1,401,117)
-
11,021,354
11,021,354
-
9,620,237
9,620,237		 1,720,875
(1,436,472)
450,745
-
(985,727)
12,007,081
11,021,354

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

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

Annual Report and Accounts – 5 April 2023

BALANCE SHEET AS AT 5 APRIL 2023

FIXED ASSETS
Tangible fixed assets
Investments
CURRENT ASSETS
Debtors
Short term deposits
Cash at bank and in hand
CURRENT LIABILITIES
Creditors -amounts falling due within 1 year
NET CURRENT ASSETS
NET ASSETS
CAPITAL FUNDS
Expendable endowment
INCOME FUNDS
Unrestricted funds		 Notes 2023
2022
£
£
10,029
12,536
8,141,796
8,447,735
8,151,825
8,460,271

11,172

502,334

2,553,967

3,067,473

506,390
1,468,412
2,561,083
9,620,237
11,021,354
9,620,237
11,021,354
-
-
7
8
9
10
11
11		 £
338,645
515,436
1,902,573
2,756,654
1,288,242
9,620,237
11,021,354

The financial statements were approved and authorised for issue by the trustees on 30 November 2023 and were signed on their behalf by:

…………………………………………………………… TRUSTEE

Francesca Perrin OBE

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

Annual Report and Accounts – 5 April 2023

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2023

----- Start of picture text -----
Cash flows from operating activities:
2023 2022
£ £
Net cash used in operating activities (712,124) (1,484,314)
Cash flows from investing activities:
Investment additions (807,725) (1,794,893)
Sale of investments 1,007,332 1,679,049
Dividends and Interest 184,905 159,403
Fixed asset additions - -
Net cash provided by investing activities 384,512 43,559
Change in cash and cash equivalents in the year (327,612) (1,440,755)
Cash and cash equivalents at the beginning of the year 3,334,771 4,775,526
Cash and cash equivalents at the end of the year 3,007,159 3,334,771
Reconciliation of net cash provided by operating activities
2023 2022
£ £
Net movement in funds (as per the Statement of Financial Activities) (1,401,117) (985,727)
Losses/(gains) on investments 417,012 (450,745)
Dividends and interest (184,905) (159,403)
Depreciation charges 2,507 5,277
(Increase)/decrease in debtors (327,473) 261,772
Increase/(decrease) in creditors 781,852 (155,488)
(712,124) (1,484,314)
Analysis of the balance of cash as shown in the balance sheet
Change in
2023 2022 year
Cash at bank and short term deposits 2,418,009 3,056,301 (638,292)
Cash balances held by investment manager for reinvestment 589,150 278,470 310,680
3,007,159 3,334,771 (327,612)
----- End of picture text -----

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

Annual Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

1. CHARITABLE STATUS

The Indigo Trust is an unincorporated charty (Charity registration number 1075920), registered in England and Wales. The address of the registered office is 5 Wilton Road, London, SW1V 1AP.

2. 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 Trust’s investments are managed on a total return basis therefore the pattern of unrestricted income may be uneven. The endowment assets of the Trust remain significant, and if necessary, these will be used to continue to pay out to its beneficiaries in accordance with the Trust’s objects.

b) Income Recognition

c) Expenditure

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.

Costs of generating funds represent amounts paid to the Trust's external investment advisors.

Charitable activities expenditure comprises grants and donations awarded by the Trustees in accordance with the criteria set out in the Trust Deed, together with grant related support costs.

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Annual Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

2. ACCOUNTING POLICIES continued

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.

Grant related support costs represent staff, office and governance costs incurred in managing the grant award programme. They include a share of the staff and office costs of the joint offices of the Sainsbury Family Charitable Trusts, which are allocated in proportion to the time spent on Trust matters and grants paid.

d) Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

e) Fixed assets

Fixed assets are capitalised where the purchase price exceeds £5,000, and depreciated at rates which reflect their useful life to the Trust. Leasehold improvements are depreciated over the outstanding life of the lease at the time the work was completed. The following rates have been used:

Leasehold improvements - 14.28% per annum

f) Financial Instruments

The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

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, assumptions about the carrying values of assets and liabilities that are not readily 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.

Annual Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

2. ACCOUNTING POLICIES continued

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.

3. INVESTMENT INCOME

Income received on investments may be analysed as follows:

Government fixed interest
Other fixed interest
UK equities
Overseas equities
Alternatives		 2023 2023
2022
£
%
223
-
3,285
3
50,862
39
60,354
47
14,737
11		 £
%
228
-

6,072
4

82,700
55

47,174
31

14,366
10
129,461
100
150,540
100
2023
4. GRANTS PAYABLE
Reconciliation of grants payable:
2022
£
£
£
£
375,000
552,558
310,000
65,000
3,083,757
1,512,845
(1,088,610)
(310,000)
2,305,147
1,267,845
(1,413,920)
(1,445,404)
1,266,227
375,000
2023
2022
1,266,227
375,000		 £
£
Commitments at 6 April 2022
Grants not accrued at 6 April 2022
Grants approved in the year
Grants not accrued at 5 April 2023
Grants payable for the year
Grants paid during the year
Commitments at 5 April 2023
Commitments at 5 April 2023 are payable as follows:
Within one year (note 10)

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. The total amount authorised but not accrued as expenditure at 5 April 2023 was £1,088,610 (2022: £310,000).

A list of grants payable is included in Appendix A.

Annual Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

5. ALLOCATION OF SUPPORT COSTS

ALLOCATION OF SUPPORT COSTS
Staff costs
Share of joint office costs
Direct costs including travel
Legal and professional fees
Depreciation
Auditor's remuneration*		 2023
2022
Grant- Governance
Total
Total
Making
Allocated
Allocated
£
£
£
£
132,384
1,880
134,264
282,268
36,289
-
36,289
65,967
13,535
-
13,535
19,730
15,247
-
15,247
42,011
2,507
-
2,507
5,277
-
8,160
8,160
7,442
199,962
10,040
210,002
422,695

*Auditor's remuneration for 2023 excluding VAT was £6,800 (2022: £6,200).

Included within support costs for 2022 were governance costs totalling £9,257. This was comprised of staff costs of £1,815 and auditor's remuneration of £7,442.

6. ANALYSIS OF STAFF COSTS

ANALYSIS OF STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2023
2022
£
£
109,781
236,265
13,414
23,823
11,069
22,180
134,264
282,268

The Trust is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office. 1.4% of the total support and administration costs of these trusts have been allocated to the Indigo Trust (2022: 3.2%), including a proportionate share of the costs of employing the total number of staff serving in the office in 2022/23.

The actual number of staff employed during the period was 5 (2022: 8), all on a part time basis. This was equivalent to 1.3 full time employees (2022: 2.8). The Trust considers its key management personnel to comprise the Principal Officers. The total employment benefits including employer contributions to group personal pensions, of these personnel were £60,157 (2022: £95,561). No employee of the Trust earned in excess of £60,000 (2022: one earned in between £60,001 - £70,000).

There were no redundancy payments made during the year (2022: 34,676).

Annual Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

7. 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 NET BOOK VALUE At 5 April 2022 8. FIXED ASSET INVESTMENTS

----- Start of picture text -----
2023 2022
£ £
45,250 45,250
(27,700) -
17,550 45,250
32,714 27,437
(27,700) -
2,507 5,277
7,521 32,714
10,029 12,536
12,536 17,813
----- End of picture text -----

2023
2022
£
£
8,169,265
7,602,676
(1,007,332)
(1,679,049)
807,725
1,794,893
(417,012)
450,745
Market value 6 April 2022
Less: Disposals at proceeds
Add: Acquisitions at cost
Net gains on investments
Market value 5 April 2023
Investment cash
Total investments
7,552,646
8,169,265
589,150
278,470
8,141,796
8,447,735

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

2023
2022
Cost
Market
Cost
Market
Value
Value
£
£
£
£
Government fixed interest 129,541
187,253
129,541
199,167
265,321
253,405
350,645
333,350
703,629
875,365
1,329,690
1,661,568
4,114,649
4,875,545
3,589,802
4,523,901
1,210,769
1,361,078
1,172,269
1,451,279
Other fixed interest
UK equities
Overseas equities
Alternatives
6,423,909
7,552,646
6,571,947
8,169,265

Annual Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

9. DEBTORS

Gift aid debtor
Prepayments & accrued income
Other debtors
10.CREDITORS
Grants payable within one year
Professional charges
Investment management fee
Other creditors		 2023
2022
£
£
275,000
-
10,096
11,172
53,549
-
338,645
11,172
2023
2022
£
£
1,266,227
375,000
14,799
8,852
7,216
7,296
-
115,242
1,288,242
506,390

11. 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
Transfers between funds
Closing balance as at 5 April 2023		 Unrestricted
Expendable
Totals
Funds Endowment
2023
£
£
£
-
10,029
10,029
-
8,141,796
8,141,796
1,281,026
1,475,628
2,756,654
(1,281,026)
(7,216)
(1,288,242)
-
9,620,237
9,620,237
-
11,021,354
11,021,354
184,905
1,375,000
1,559,905
-
(28,861)
(28,861)
(2,515,149)
-
(2,515,149)
-
(417,012)
(417,012)
2,330,244
(2,330,244)
-
-
9,620,237
9,620,237

A transfer of £2,330,244 (2022: £1,531,137) was made from Expendable Endowment to Unrestricted Funds to the cover the deficit during the year.

Annual Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

12. COMPARATIVE ANALYSIS OF NET ASSETS BETWEEN FUNDS FOR THE YEAR ENDED 5 APRIL 2022


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
Transfers between funds
Closing balance as at 5 April 2022		 Unrestricted
Expendable
Totals
Funds Endowment
2022
£
£
£
-
12,536
12,536
-
8,447,735
8,447,735
499,094
2,568,379
3,067,473
(499,094)
(7,296)
(506,390)
-
11,021,354
11,021,354
-
12,007,081
12,007,081
159,403
125,000
284,403
-
(30,335)
(30,335)
(1,690,540)
(1,690,540)
-
450,745
450,745
1,531,137
(1,531,137)
-
-
11,021,354
11,021,354

A transfer of £1,531,137 was made from Expendable Endowment to Unrestricted Funds to the cover the deficit during the year.

13. RELATED PARTY TRANSACTIONS

Included within grant-related support costs is a total of £15,247 payable for legal services to BDB Pitmans LLP (2022: £5,647 payable to Portrait Solicitors), a firm in which Mr Dominic Flynn is a partner.

During the year to 5 April 2023, a net Gift Aid donation of £1,100,000 (2022: £100,000) was received from the Trustees.

Annual Report and Accounts – 5 April 2023

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

Income and Endowment from:
Donations and gifts
Investments
Total Income
Expenditure on:
Raising funds:
Investment management costs
Charitable activity:
Grant-making:
Grant expenditure
Grant related support costs
Total Expenditure
Net operating (deficit)/surplus
Gains on investment assets
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Expendable
Total Funds
Funds
Endowment
2022
£
£
£
-
125,000
125,000
159,403
-
159,403
159,403
125,000
284,403
-
30,335
30,335
1,267,845
-
1,267,845
422,695
-
422,695
1,690,540
30,335
1,720,875
(1,531,137)
94,665
(1,436,472)
-
450,745
450,745
1,531,137
(1,531,137)
-
(985,727)
(985,727)
-
12,007,081
12,007,081
-
11,021,354
11,021,354

Annual 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:

Access to Justice - Global
African Legal Information Institute (African LII)
International Lawyers Project
Laws.Africa
Access to Justice - UK
Access to Justice Foundation
Child Poverty Action Group
Cumbria Law Centre
Ealing Law Centre
Friends, Families & Travellers
Justice Collaborations
Southwark Law Centre
Better Grantmaking
360 Giving
Friends Provident Foundation
Prevention of Child Sexual Abuse
Centre of Expertise on Child Sexual Abuse
Marie Collins Foundation
The Lucy Faithfull Foundation
Racial Justice
Black Equity Organisation
By and For Foundation - Baobab Foundation
Trustees' Discretionary
Greater Govanhill CIC
Healthcare Workers' Foundation
Naz and Matt Foundation
Nia
Refugee Cafe
Success Capital Organisation
The Sainsbury Archive
Winchester Street Reach
Visual Impairment
Eyelliance
London School of Hygiene & Tropical Medicine
Total grants payable per Statement of Financial Activities		 £
260,000
15,000
120,000
100,000
25,000
105,000
105,000
20,000
50,000
105,000
100,000
30,000
208,000
105,000
205,000
200,000
150,000
3,000
3,000
30,000
3,000
3,000
3,000
5,000
3,000
25,142
324,005
2,305,147

Annual Report and Accounts – 5 April 2023

NOTES TO THE ACCOUNTS

APPENDIX A continued

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

Access to Justice - Global
African Legal Information Institute (African LII)
International Lawyers Project
Laws.Africa
Access to Justice - UK
Access to Justice Foundation
Southwark Law Centre
Spotlight on Corruption Ltd
Better Grantmaking
360 Giving
Legacy Transparency & Accountability
Open Cities Lab (formerly Open Data Durban)
Prevention of Child Sexual Abuse
Centre of Expertise on Child Sexual Abuse
The Lucy Faithfull Foundation
Marie Collins Foundation
Trustees' Discretionary
Afghan Association Paiwand Ltd
AKT (The Albert Kennedy Trust)
Breakout Youth
Chrysalis Centre for Change
Haringey Law Centre
Naz and Matt Foundation
Oxfordshire Community Foundation
The Sainsbury Archive
Voices
Visual Impairment
Eyelliance
Vision Catalyst Fund
Total grants payable per Statement of Financial Activities		 £
35,000
15,000
260,000
100,000
100,000
15,000
200,000
50,000
100,000
100,000
100,000
2,000
2,000
2,000
2,000
2,000
62,000
10,000
5,000
2,000
28,845
75,000
1,267,845

Annual Report and Accounts – 5 April 2023