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TOGETHER,

WE GIVE MORE

SOUTHAMPTON ROW TRUST LIMITED Trustees’ report and financial statements

FOR THE YEAR ENDED 30 APRIL 2024

ANNUAL REPORT 2023/24

Charity Registration No: 1079020

Company Registration No: 03900842 (England and Wales)

The CAF American Donor Fund is the operating name of Southampton Row Trust Limited. It is a dual qualified Donor Advised Fund for US and UK taxpayers. With more than 20 years’ experience, we offer smart, tax-effective philanthropy services for clients to maximise the impact of their giving by claiming eligible tax relief in both countries. Since 2000, we have received more than $1 billion in charitable contributions from our clients to support charities around the world.

04 Chair’s report
Trustees’ report
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18 Independent Auditors’ report
22 Statement of financial activities (incorporating an Income and Expenditure Account)
23 Balance sheet
Cash flow statement Notes to the financial statements
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REGISTERED OFFICE

PRINCIPAL BANKER National Westminster Bank plc 332 High Holborn London WC1V 7PS

25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4TA

TRUSTEES

Telephone +44 (0)3000 123 150 Email cadf@cafonline.org

Neil Heslop, OBE Chairman

Mark Greer

REGISTERED CHARITY NUMBER 1079020

COMPANY NUMBER 03900842

AUDITOR

PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT

Meredith Niles

(appointed 10 June 2024)

Liz Rylatt

Carolyn (Morey) Ward (appointed 10 June 2024)

Ted Hart

(resigned 12 January 2024)

COMPANY SECRETARY Kate Mayor

CADF | SOUTHAMPTON ROW TRUST LIMITED Trustees’ Report and Financial Statements for the year ended 30 April 2024

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“ Our client’s generosity has contributed to a substantial increase in grants payable to charities - hitting £120 million, rising from £86 million in 2022/2023.”

NEIL HESLOP, OBE Chair

In many ways, the CAF American Donor Fund (CADF) exemplifies the best work of the entire Charities Aid Foundation (CAF). CADF has a clear focus on clients who have connections to the United Kingdom and United States, and we provide dedicated expertise to assist in their giving journey and help them to build connections with charities around the world. For both CADF and CAF, we are committed to growing philanthropic giving to achieve the greatest possible impact.

While in 2024, CAF is celebrating its Centenary, our American Donor Fund will mark 25 years since it was brought to market in 1999. The CAF American Donor Fund was the first dual qualified charity, with a Donor Advised Fund designed for donors to maximise the value of their gifts to charitable organisations by claiming eligible UK and US tax relief. This dual relief ensures even more money can go to an incredible range of global causes.

Thanks to the unwavering generosity of our transatlantic clients, we have received more than $1 billion of donations in our 25 years.

This has been a remarkable year of growth for CADF. Through the specialist expertise we offer, we have been delighted to welcome new clients on board, growing the number of donors we work with to 474. Crucially, our client’s generosity has contributed to a substantial increase in grants payable to charities - hitting £120 million, rising from £86 million in 2022/2023.

The areas supported this year range from community to global causes, from the restoration of historic buildings to the protection of biodiversity and support for education.

With the largest-ever transfer of wealth in history underway to younger generations, an increasing number of those who can afford to give the most are recognising the importance of charitable giving and looking to achieve positive impact. For those with connections in both the US and UK, our committed experts provide a deep understanding of the challenges and opportunities, as well as advice on, navigating philanthropy. It is thanks to them that the amount of funds entrusted to our stewardship reached £155 million, building on last year’s £104 million.

Among private clients, there is a growing interest in donating more complex assets. CADF is experienced in receiving noncash gifts, including shares, property and artworks, and an increasing number of donors are taking advantage of this. While donations like these take more time, regulatory oversight and administrative support, they are worth the extra effort for the funds that can ultimately go to charities.

Throughout the last twelve months, the team have focused on meeting with advisers and prospective clients across the private wealth industry, to help raise awareness about charitable giving and how dual-qualified giving can add so much value. Alongside our other giving and impact work, the team secured well-deserved recognition from Spear’s Magazine in winning the Private Client Service Award in 2023.

This year, we have also prioritised deepening our relationships with the charities our donors choose to support, which has been welcomed by our clients. Those who are fortunate enough to be able to give are eager to further their relationships with charities they support, to learn from them and to ensure their giving choices deliver lasting impact.

CADF | SOUTHAMPTON ROW TRUST LIMITED Trustees’ Report and Financial Statements for the year ended 30 April 2024

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Looking ahead, we will continue to improve and expand the expert, bespoke client service we offer. Dual UK-US taxpayers turn to the CAF American Donor Fund for knowledgeable, safe and efficient ways to grant money to causes, but there is more we can do to help them achieve impact through their giving.

We recognise that a growing number of CADF clients want to make an impact internationally. They work with us to take advantage of our world-leading charity verification and due diligence services. But we need to be able to scale this support and ensure donors can respond to global emergencies and other crises in a timely and responsible manner. We plan to continue expanding the capabilities of our transatlantic team to better service our clients, especially for those wishing to donate to high-risk and sanctioned areas of the world.

We are proud that our American Donor Fund continues to be at the heart of transatlantic generosity, and plans are

under way to build on the momentum of the past few years. CAF’s purpose as an organisation is to accelerate progress in society towards a fair and sustainable future for all, and CADF provides inspiration for how this can be achieved.

Finally, my time as CADF’s Chair has now come to an end and I am delighted to hand the baton to my successor Meredith Niles. An American living in London harnessing her experience in investment banking and the charitable sector in both New York and London, Meredith will make an excellent Chair to guide CADF to the next stage of its growth. I extend my sincere appreciation to those who continue to place their trust in us and to the extraordinary charity partners we have the honour of working with.

NEIL HESLOP, OBE Chair

Our committed experts provide a deep understanding of the challenges and opportunities, as well as advice on, navigating philanthropy.

It is thanks to them that the amount of funds entrusted to our stewardship reached £155 million, building on last year’s £104 million.

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CASE STUDY A natural transformation for future learning Using our American Donor Fund, a Colgate University alum is funding a landscape revitalisation project that will support the university’s work to connect academic disciplines and link up the different parts of their campus.

As a CADF client, the donor – who is American, but lives in the UK – worked with us to facilitate their gift of shares, simply and in compliance with UK and US law.

Our team based in London managed the necessary administrative and verification processes required for an overseas donation of this kind, giving our client the reassurance needed.

With this support, the university is transforming a previously unused, relatively degraded piece of land into beautiful pathways and plazas, where students can meet, study and relax, surrounded by trees and natural pools.

The donation – which builds on past generous support – will also fund infrastructure work essential to the university’s future development plans.

Image credit: Michael Van Valkenburgh Associate, Inc.

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ACHIEVEMENTS AND PERFORMANCE

In line with the Trustees’ objective to achieve long-term growth, during the year under review, income from donations grew to a record £154.7m, up from £103.5m in the previous year. The charity’s donors continued to give generously despite the range of geopolitical and economic uncertainties that continued to prevail throughout the year. This generosity enabled the charity to award a record value of grants. The number awarded grew from 1,266 to 1,488, with the aggregate value awarded to charities in the UK, US and elsewhere around the world reaching £123.5m, compared with £87.1m in 2022/23.

FINANCIAL REVIEW

Principally as a result of the generosity of donors, total income for the year increased to £162.4m (2023: £106.6m).

Donations received and credited to Donor Advised Funds (DAFs) and Donor Advised Gifts (DAGs) increased marginally to £72.6m (2023: £71.9m). Donations to Premier Donor Advised Funds (PDAFs), which are held to support longer-term grantmaking, increased significantly to £80.9m (2023: £30.7m). This was largely as a result of some significant individual contributions, but also due to the improved performance of global stock markets making the donation of share gifts more attractive again, following a drop in the previous year.

As a result of the sustained higher interest rates on US Dollar and Sterling cash balances, investment income grew to £7.0m (2023: £2.5m). Funds were further boosted by net investment gains of £4.0m (2023: £1.6m loss) as global stock markets saw a recovery.

Donor-advised grants awarded from DAFs and DAGs maintained their level at £68.9m (2023: £68.7m), whereas those from PDAFs

grew significantly to £52.1m (2023: £17.5m). This reflects a record level of grantmaking by the charity.

The record levels of donations received, and grants awarded, are in line with the Trustees’ objective to achieve ongoing growth. They resulted in designated funds held to support future grantmaking increasing to £172.9m at 30 April 2024 (2023: £132.5m).

As a result of the significant level of liquid assets held pending their future application to donor-advised grantmaking, the increased UK and US interest rates have been beneficial for the charity. Consequently, during the year, the charity was able to award a grant from its unrestricted general funds of £2.5m (2023: £0.8m) to CAF, its ultimate parent. This will be applied by CAF to support the CAF group’s commitment to growing philanthropic giving to achieve the greatest possible impact.

OUR AIMS FOR NEXT YEAR

The Trustees’ objective for the coming year is to sustain the long-term growth in the average value of funds received and granted by the charity.

Risk management

The Trustees have a risk management strategy that comprises:

An annual review of the risks the charity may face.
The establishment of systems and procedures to mitigate those risks identified in the plan.
The implementation of policies and procedures designed to minimise any potential impact on the charity should those risks materialise.

The main risks identified are credit risk, liquidity risk and market risk.

CREDIT RISK

Credit risk is the risk of financial loss as a result of a failure of a counterparty to meet financial obligations to repay the charity as they fall due. Credit risk arises primarily from investing funds with treasury counterparties and from financial investments.

Treasury policies establish criteria, including credit rating, counterparty lending limits and country limits, that are approved by the Trustees, with further oversight from the Investment, Finance and Impact Committee (IFIC) of the Charities Aid Foundation (CAF), the charity’s ultimate parent.

Subject to minimum credit ratings, maximum terms and maximum counterparty limits, funds may be invested in the following:

UK Gilts and Multilateral Development Banks.
Other single sovereign-backed Sterling denominated bonds.
Financial and non-financial fixed and floating rate corporate bonds and covered bonds.
Bank deposits, certificates of deposit and other marketable securities.

The charity carefully monitors and considers risks associated with the macro-economic environment. There have been no material adverse impacts from changes in the economic environment.

Financial investments held in respect of PDAFs are invested in accordance with policies approved by the Trustees, with further oversight from CAF’s IFIC. Donors typically suggest that a proportion of funds donated are held in cash to meet short-term giving expectations and invest funds to meet medium - to long-term philanthropic objectives. Grant suggestions are planned by reference to the market values and liquidity profile of the assets held.

LIQUIDITY RISK

Liquidity risk is the risk that the charity does not have sufficient financial resources to meet its obligations as they fall due.

The charity’s principal obligations relate to grants payable. The charity does not award grants out of anticipated future income.

The liquidity position is monitored by the charity and CAF’s IFIC. On a day-to-day basis, the liquidity profile of the charity’s assets is compared with the historical behaviour of donor-advised grant payments to beneficiary charities.

The liquidity policy requires a minimum percentage of total balances to be available within 24 hours, and a further minimum percentage of total balances to be available over three months. No more than 50% of balances may be invested for a term in excess of 12 months.

PDAF funds are invested in accordance with investment policies that require investments to be liquid. Investments take into account anticipated liquidity requirements to fund donor-advised grants. Should additional liquidity be required to fund these, investments are disposed of. In the event of a shortfall in anticipated proceeds, the value of the grant would be reduced.

MARKET AND INTEREST RATE RISK

Market risk is the risk from adverse movements in external markets, including interest rate movements, changes in investment values or foreign currency exchange rates that will reduce income or the value of assets.

The charity does not undertake proprietary trading activities. It is the charity’s policy to hold treasury-related investments to maturity and to value at cost, with any premium or discount amortised over the remaining term (the effective interest method).

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The charity may manage interest rate risk attributable to treasury assets through the purchase of fixed-rate investments that provide a degree of hedging against changes in market interest rates. The charity’s policy is to hold such investments to redemption at par. The impact of any movements in interest rates on fixed-rate instruments is, therefore, not anticipated to affect the charity’s financial results.

The charity holds funds principally denominated in Sterling and US Dollars. The US Dollars held principally arise as a result of donations received in that currency and are primarily intended to fund donor-advised grants that are also awarded and paid in US Dollars. This mitigates the risk of fluctuations in foreign currency exchange rates.

PDAFs may be invested to fund long-term donor-advised philanthropic goals. The value of investments, alongside any regular donations received, determines the value of funds available for donor-advised grants. Accordingly, a movement in equity markets or interest rates may affect the value of PDAFs, but does not impact the level of reserves.

SHARE CAPITAL AND DIVIDENDS

The charity’s authorised share capital of 100 ordinary shares of £1 each was issued at par upon incorporation and is held by CAF America.

The charity’s regulations state that no dividends shall be paid to shareholders. They also preclude shareholders from participating in the distribution of any remaining property should the charity be wound up or dissolved.

PUBLIC BENEFIT

The aim of the charity is to encourage, support and develop the work of charities in the UK, the US and elsewhere in the world by providing a range of services that ensure the

most effective handling and distribution of charity funds. The activities provide public benefit by creating value for other charities and organisations around the world that carry out exclusively charitable activities.

When reviewing the charity’s aims and objectives, and in planning future activities and setting the grantmaking policy, the Trustees paid due regard to the guidance issued by the Charity Commission, HM Revenue & Customs and the US Internal Revenue Service.

FUNDRAISING

There have been no fundraising activities undertaken in the current or preceding year.

GRANTMAKING POLICY

The charity supports cross-border, taxeffective giving by enabling donors liable for tax in both the UK and the US to obtain tax relief in both countries on their charitable giving. Donors suggest, but they may not direct, how the Trustees might distribute their donation (donor-advised grants). This may be to organisations carrying out charitable activities across the world.

The Trustees’ objective is to be cause neutral and within the requirements of relevant regulations, to support any charitable cause wherever in the world it may be, providing that appropriate charitable purpose is achieved and thorough due diligence is conducted. Consequently, these donoradvised awards are not made in pursuit of a grantmaking policy to support organisations that operate in specific charitable sectors, geographical locations, or are of a certain size.

Each donor-advised grant is reviewed having regard for grantmaking guidance issued by the Charity Commission, HM Revenue & Customs, the US Department of the Treasury and the US Internal Revenue Service. If it is considered that a donor’s suggestion is not

in accordance with issued guidance, steps are taken to ensure the funds are paid to an organisation with similar charitable objects.

All beneficiary charities are required to report to the Trustees on the actual use of grants given, and the achievements made, to monitor the effective use of grants made.

Funds received to support donor-advised grantmaking are held as designated funds pending distribution to beneficiary charities. Grants are only awarded up to a level equal to the funds already contributed and received from donors. No grants are awarded in anticipation of future income.

RESERVES POLICY

The charity’s policy is to maintain, but not exceed, an appropriate level of reserves to support the activities of the charity, taking into account the risks to which it is exposed and existing and projected future levels of income and expenditure.

The policy and determination of the required level of reserves are set in accordance with Charity Commission guidelines and are reviewed annually by Trustees.

In determining the appropriate level of reserves, Trustees consider the risks inherent in the charity’s activities, including the risks inherent in its financially based activities, such as credit risk, liquidity risk, interest rate risk and other risks to which it may be exposed. They also consider the charity’s operating environment, including regulatory changes that may impact the required level of reserves.

Although, as a result of the significant level of liquid assets held, the rapid increase in interest rates has been beneficial for the charity, the Trustees are mindful of factors that may affect the charity negatively in the future. In the current context of the UK economy, a rapid significant decline in short-term interest rates is not currently anticipated. However, if it were to arise, it

would have a negative impact in the mediumto longer-term, once deposit rates, which have already been locked in for shorter periods, have matured.

Past experience of the economic crises that have arisen since 2008, however, provides evidence that individual donors who choose to give to the charity are resilient and giving remains broadly protected from economic changes. Therefore, the Trustees continue to closely monitor these matters and identify actions that would mitigate the impact if such pressures were to arise.

The free reserves of the charity are determined as its unrestricted funds less funds that have been designated for future grantmaking. Funds received to support future grantmaking are classified as designated funds upon receipt. At 30 April 2024, £172.9m (2023: £132.5m) of the charity’s unrestricted funds were designated for future grantmaking and, consequently, the charity’s free reserves were £2.07m (2023: £1.24m).

This level of free reserves is considered by the Trustees to be sufficient to support the ongoing activities and development of the charity.

GOING CONCERN

In order to assess the appropriateness of the going concern assumption basis, the Trustees have considered the charity’s financial position, liquidity, unrestricted reserves and forecasts for the foreseeable future, taking into account the principal risks to which the charity is exposed. The Trustees have considered the impact of a severe economic outcome on the charity and the effectiveness of management actions that might be taken to mitigate the impact of this stress. Trustees have also considered the circumstances under which the operations of the charity would be unable to continue.

Accordingly, and after making appropriate enquiries, the Trustees have a reasonable

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expectation that the charity will be able to continue in operation and meet its liabilities as they fall due for at least 12 months from the date of signing this report. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

INVESTMENT POWERS AND POLICY

The Trustees have the power to invest in such investments, securities or property as they see fit.

The charity adopts investment policies appropriate to the nature of the funds for which the investments are held. The policies set out the risk appetite for investments including liquidity, credit, large exposures, and interest rate risks.

Investment policies are approved by the Trustees. They are monitored by CAF’s IFIC.

The charity’s funds principally comprise unrestricted designated funds held pending onward donor-advised grantmaking. The charity assesses liquidity requirements to ensure funds are available to meet suggestions received for donor-advised grantmaking and may invest funds with a range of counterparties within approved credit, liquidity, interest rate and large exposure risk appetites. The charity may invest these funds in Gilts supranational and investment grade bonds, and cash deposits/ certificates of deposit. The charity’s policy is to hold investments to maturity.

The investment policy allows for PDAFs to be invested to meet the longer-term donor-advised philanthropic objectives. The investment risk appetite is appropriate for the charitable purposes of the funds. The portfolio consists of investments often held over the longer term, comprising UK and global investment funds, equities, bonds, and cash deposits. PDAF investments are held and managed directly or are managed by thirdparty investment managers.

During the year, the charity updated its investment policies and risk appetite, allowing it to benefit further from the increase in market interest rates in all major markets. The revised policies allowed investments to be diversified across a wider range of counterparties within approved risk appetites. The result is an increase in the charity’s total investment income from £2.5m to £7.0m for 2023/24.

RELATED PARTIES

CAF America, the charity’s immediate controlling party, provides administrative support services to the charity. CAF, the charity’s ultimate parent, provides the charity with administrative and managerial services. Details of the related parties and the transactions with these entities during the year are included in notes 15 and 16.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Southampton Row Trust Limited is a UK charitable company limited by shares and incorporated in the UK under the Companies Act 2006 and governed by its Memorandum and Articles of association. It is registered with the Charity Commission for England and Wales. The charity’s company and charity registration numbers and address of its registered office are shown on page 1.

Throughout the year, the charity was wholly owned by Charities Aid Foundation of America (CAF America), a US public charity recognised by the US Internal Revenue Service as an organisation of the kind described in section 501(c)(3) of the US Internal Revenue Code of 1986.

The charity has made a US tax election to be treated as part of CAF America, so that a donation to the charity is treated as a gift to CAF America for US tax purposes. Given the charity’s UK charitable status, a donation to it is also eligible for relief under UK tax

legislation relating to gifts to charities.

Both CAF and CAF America are charitable entities and provide a range of services to donors and to other charities.

The charity’s Trustees are appointed by its existing Trustees or by the Board of Directors of CAF America. The Trustees meet at least twice a year. Newly appointed Trustees undertake an induction process to ensure they gain a full understanding of the charity and their responsibilities. They are then required to complete training at regular intervals throughout their trusteeship.

The Trustees have appointed CAF to operate the day to day activities of the charity. The provision of these support services is regularly reviewed through reporting to the Trustees.

The charity’s Trustees are committed to high standards of governance. In addition to approving donor grant suggestions and assessing charity eligibility to receive grants, the Trustees also have responsibilities in relation to the financial statements and internal control.

None of the Trustees has an interest in the shares of the company or in any associated entity in either the current or the prior financial year.

During the year, the Trustees took out trustees’, directors’ and officers’ indemnity cover under the umbrella of the CAF group.

In carrying out their duties under s172(1) (a) to (f) of the Companies Act 2006, the Trustees have regard to both the short- and long-term impact of their decisions, the interests of the charity’s donors and beneficiaries, and the

impact of its activities on the communities in which it operates and the environment.

The charity is conscious of its impact on the environment. The entity shares premises with its ultimate parent and participates in recycling schemes, paper saving initiatives and a range of energy efficiency measures. The charity itself has a limited direct impact on the environment, other than staff commuting to work, energy and consumables use and a relatively modest travel footprint.

POST BALANCE SHEET EVENTS

There have been no significant post balance sheet events.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of Southampton Row Trust Limited for the purposes of company law) are responsible for preparing the Trustees’ Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulation.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

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

Select suitable accounting policies and then apply them consistently.
Observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (2019);
Make judgements and estimates that are reasonable and prudent.
State whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each person who is a Trustee in office at the date the report is approved confirms that:

(a) so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditors are unaware; and
(b) they have taken all the steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditors are aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

A resolution to appoint the auditors of the charity and to agree their remuneration will be submitted to the Trustees.

The Trustees’ report on pages 8 to 16 was approved by the Trustees and signed on their behalf on 19 July 2024.

NEIL HESLOP, OBE Chair

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REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION

In our opinion, Southampton Row Trust Limited’s financial statements (the “financial statements”):

give a true and fair view of the state of the charitable company’s affairs as at 30 April 2024 and of its incoming resources and application of resources, including its income and expenditure, and cash flows, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Trustees’ Report and Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 30 April 2024; the statement of financial activities (incorporating an income and expenditure account), and the cash flow statement for the year then ended; and the notes to the financial statements, which include a description of significant accounting policies.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements

section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

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

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

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

REPORTING ON OTHER INFORMATION

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

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

With respect to the Trustees’ Report and the Strategic Report included within it, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

Trustees’ Report

In our opinion, based on the work undertaken in the course of the audit the information given in the Trustees’ Report which includes the strategic report and the directors’ report for the purposes of company law, for the period ended 30 April 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we did not identify any material misstatements in the strategic report or the directors’ report included within the Trustees’ Report.

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT

Responsibilities of the trustees for the financial statements

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

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OTHER REQUIRED REPORTING

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

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

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

Based on our understanding of the charitable company and its sector, we identified that the principal risks of noncompliance with laws and regulations related to provisions of relevant tax legislation, and we considered the extent

to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting of inappropriate journal entries and bias through manipulation of key accounting estimates. Audit procedures performed by the engagement team included:

Enquiring of management and those charged with governance in relation to known or suspected instances of noncompliance with laws and regulations and fraud;
Assessing matters reported on the charitable company’s whistleblowing helpline and the results of management’s investigation of such matters;
Reviewing key correspondence with regulatory authorities;
Gaining an understanding of period end controls around the preparation of the financial statements, including controls around posting of journals;
Testing the appropriateness of journal entries using risk based sampling procedures, also making use of data analytics to identify journals with high risk characteristics;
Assessing for bias in key accounting estimates; and
Incorporating unpredictability into the nature, timing and/or extent of our testing.

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

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

Use of this report

This report, including the opinions, has been prepared for and only for the charitable company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

COMPANIES ACT 2006 EXCEPTION REPORTING

Under the Companies Act 2006 we are required to report to you if, in our opinion:

we have not obtained all the information and explanations we require for our audit; or
adequate accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
certain disclosures of trustees’ remuneration specified by law are not made; or
the charitable company financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

DARREN L MEEK

Senior Statutory Auditor

for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 19 July 2024

20 CADF | SOUTHAMPTON ROW TRUST LIMITED Trustees’ Report and Financial Statements for the year ended 30 April 2024

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STATEMENT OF FINANCIAL ACTIVITIES

(incorporating an Income and Expenditure Account) for the year ended 30 April 2024

		Unrestricted general funds	Unrestricted general funds	Unrestricted designated funds Donor advised funds and gifts Premier donor advised funds	Unrestricted designated funds Donor advised funds and gifts Premier donor advised funds	Unrestricted designated funds Donor advised funds and gifts Premier donor advised funds	Unrestricted designated funds Donor advised funds and gifts Premier donor advised funds		Total	Total
		2024	2023	2024	2023	2024	2023		2024	2023
	Notes	£000	£000	£000	£000	£000	£000		£000	£000
	Income from: Donations	1,126	126 970	72,632	632 71,861	861 80,922	922 30,713	713	154,680	680 103,544	544
	Legacies	-	- -	739	739 573	573 -	- -	-	739	739 573	573
	Investments 2	3,973	3,973 1,156	-	- -	- 3,004	3,004 1,318	1,318	6,977	6,977 2,474	2,474
	Total income Expenditure on: Charitable activities:	5,099	5,099 2,126	73,371	73,371 72,434	72,434 83,926	83,926 32,031 162,396	32,031 162,396	32,031 162,396	32,031 162,396 106,591	106,591
	Grants payable to charities 3	2,500	500 881	68,867	867 68,699	699 52,116	116 17,515	515	123,483	483 87,095	095
	Cost of charitable activities 4	1,789	789 1,637	5	5 4	4 174	174 87	87	1,968	968 1,728	728
	Loan loss provision	-	- -	-	- -	- -	(33)		-	(33)
Total expenditure Net income/(expenditure) before net gains on investments		4,289 810	4,289 2,518 810 (392)	68,872 4,499	68,872 68,703 3,731	68,703 52,290 731 31,636	52,290 17,569 636 14,462	17,569 462	125,451 36,945	125,451 88,790 945 17,801	88,790 801
Net gains/(losses) on financial investments 7		-	- -	532	532 (144)	3,490	(1,474)		4,022	022 (1,618)
Net gains/(losses) on other investments 8		-	- -	(30)	-	- -	- -	-	(30)	-
Net income/(expenditure)		810	810 (392)	5,001 3,587		3,587 35,126	35,126 12,988	12,988	40,937	40,937 16,183	16,183
Transfers between funds 12		-	-	(2,564)	457	457 2,564	2,564 (457)		-	-	-
Net movement in funds before other recognised gains/(losses)		810	810 (392)	2,437	4,044	044 37,690	690 12,531	531	40,937	937 16,183	183
Other recognised gains/ (losses)
Foreign exchange gains/ (losses)		28	28 (23)	(147)	(66)	417	463	463	298	298 374	374
Net movement in funds		838	838 (415)	2,290	3,978	3,978 38,107	38,107 12,994	12,994	41,235	41,235 16,557	16,557
Reconciliation of funds
Total funds brought forward		1,236	1,236 1,651	27,425	27,425 23,447	23,447 105,034	105,034 92,040	92,040	133,695	133,695 117,138	117,138
	Total funds carried forward 12	2,074	2,074 1,236	29,715	29,715 27,425	27,425 143,141	143,141 105,034	105,034	174,930	174,930 133,695	133,695

The results are derived from ongoing operations, and all gains and losses arising in the current and preceding year are included in the above Statement of Financial Activities.

The notes on pages 25 to 34 form part of these financial statements.

BALANCE SHEET

As at 30 April 2024

		Unrestricted general funds	Unrestricted general funds	Unrestricted designated funds Donor advised Premier donor funds and gifts advised funds	Unrestricted designated funds Donor advised Premier donor funds and gifts advised funds	Unrestricted designated funds Donor advised Premier donor funds and gifts advised funds	Unrestricted designated funds Donor advised Premier donor funds and gifts advised funds	Total	Total
		2024	2023	2024	2023	2024	2023	2024	2023
Assets	Notes	£000	£000	£000	£000	£000	£000	£000	£000
Loans and advances to
banks:
On demand and
short-term deposits	6	1,443	1,443 1,302	1,302 25,132	25,132 21,275	21,275 49,353	49,353 51,372	51,372 75,928	75,928 73,949
Other	6	-	- -	-	- -	- 48,506	48,506 22,957	22,957 48,506	48,506 22,957	22,957
Financial investments	7	-	- -	- 160	160 -	41,546	30,981	30,981 41,706	41,706 30,981	30,981
Other investments	8	-	- -	- -	- 3,750	3,750 -	- -	- -	- 3,750	3,750
Loans to charities	9	-	- -	- -	- -	- 803	803 796	796 803	803 796	796
Debtors	10	808	808 109	109 5,904	5,904 2,400	2,400 2,933	2,933 206	206 9,645	9,645 2,715	2,715
Total assets Liabilities Amounts falling due within one year: Creditors Total Liabilities Funds Charitable funds	11	2,251 177 177 2,074	2,251 1,411 177 175 177 175 2,074 1,236	1,411 31,196 175 1,481 175 1,481 1,236 29,715	31,196 27,425 1,481 - 1,481 - 29,715 27,425	27,425 143,141 106,312 176,588 135,148 - - - - 27,425 143,141 105,034	143,141 106,312 176,588 135,148 - 1,278 - 1,278 143,141 105,034	143,141 106,312 176,588 135,148 1,278 1,658 1,278 1,658 143,141 105,034 174,930 133,695	143,141 106,312 176,588 135,148 1,658 1,453 1,658 1,453 174,930 133,695	143,141 106,312 176,588 135,148 1,453 1,453 174,930 133,695
Called up share capital (£100, 2023: £100) Total liabilities, funds and capital	13	- 2,074 2,251	- - 2,074 1,236 2,251 1,411	- - 1,236 29,715 1,411 31,196	- - 29,715 27,425 31,196 27,425	- - 27,425 143,141 105,034 27,425 143,141 106,312 176,588 135,148	- - 143,141 105,034 143,141 106,312 176,588 135,148	- - 143,141 105,034 174,930 133,695 143,141 106,312 176,588 135,148	- - 174,930 133,695 143,141 106,312 176,588 135,148	- 174,930 133,695 143,141 106,312 176,588 135,148

The financial statements on pages 22 to 34 were approved by the Board of Trustees on 19 July 2024 and signed on its behalf by

NEIL HESLOP, OBE LIZ RYLATT Chairman Trustee

Charity Registration No: 1079020

Company Registration No: 03900842

The notes on pages 25 to 34 form part of these financial statements.

22 CADF | SOUTHAMPTON ROW TRUST LIMITED Trustees’ Report and Financial Statements for the year ended 30 April 2024

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for the year ended 30 April 2024

CASH FLOW STATEMENT

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----- Start of picture text -----
2024 2023
£000 £000 £000 £000
Cash flows from operating activities
Net cash generated from operating activities 8,169 6,129
Cash flows from investing activities
Proceeds from sale of financial investments 30,321 20,520
Proceeds from sale of other investments 3,720 -
Purchases of investments (16,775) (5,019)
Net movement in other term and money market deposits (25,549) (22,957)
Donor Advised Funds:
investment income receivable 2,985 1,292
(Increase)/Decrease in investment portfolio cash (472) 139
Net cash used in investing activities (5,770) (6,025)
Change in cash and cash equivalents in the year 2,399 104
Cash and cash equivalents as at 1 May 73,949 73,482
Change in cash and cash equivalents due to
exchange rate movements (420) 363
Cash and cash equivalents as at 30 April 75,928 73,949
Reconciliation of net income to cash flows from operating activities
Net income for the year 41,235 16,557
Non-cash donations received (19,778) (9,829)
(Gains)/losses on financial investments (4,022) 1,618
Losses on other investments 30 -
Increase in loans to charity (7) (761)
Decrease in loan loss provision - (33)
Increase in other debtors (6,910) (1,064)
Increase in creditors 205 1,322
Donor Advised Funds:
investment income receivable (3,004) (1,318)
Unrealised loss/(gain) on foreign currencies 420 (363)
Net cash generated from operating activities 8,169 6,129
----- End of picture text -----

The notes on pages 25 to 34 form part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS

months from the date of signing of this report. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

1. ACCOUNTING POLICIES

The principal accounting policies and judgements used in the preparation of the financial statements are:

1.3. Fund accounting

The classification of funds between unrestricted general funds and unrestricted designated funds and restricted funds is an area of significant judgement and is dealt with in note 1.11.

1.1. Basis of preparation

These financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP), including FRS102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS102’) and the Statement of Recommended Practice: Accounting and Reporting by Charities (Charity SORP (FRS102)), except for the adoption of a balance sheet format that the Trustees believe more clearly represents the charity’s financial assets and liabilities.

Further details of the charity’s funds and the disclosure policy are set out in note 12.

1.4. Income recognition

a) Donations and legacies

Donations received and Gift Aid on eligible donations are recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Southampton Row Trust Limited is a UK charitable company limited by shares and incorporated in the UK under the Companies Act 2006 and registered with the Charity Commission for England and Wales.

Non-cash donations principally comprise share gift donations that are recognised as donations received at the market value on the date of gift.

The charity meets the definition of a public benefit entity under FRS 102.

In the event that a donation or grant is subject to conditions, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity, and it is probable that those conditions will be fulfilled.

The principal activities and the nature of the charity’s operations are set out in the strategic report on pages 8 to 16.

The functional currency is considered to be Pounds Sterling because that is the currency of the primary economic environment in which the charity operates.

Legacy donations are recognised on a case-by-case basis where there has been a grant of probate or notification that a distribution will be made. In the event that the gift is in the form of an asset other than cash, or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having been transferred to the charity. Where legacies have been notified with an estimated value but the criteria for income recognition have not been met, then the legacies are treated as contingent assets and disclosed if material (see note 17).

1.2. Going concern basis

b) Investment income

Interest receivable on term and money market deposits with banks is recognised using the effective interest method over the term of the deposit. Dividends are recognised once the dividend has been declared and notification has been received of the value of the dividend due.

Accordingly, and after making appropriate enquiries, the Trustees have a reasonable expectation that the charity will be able to continue in operation and meet its liabilities as they fall due for at least 12

24 CADF | SOUTHAMPTON ROW TRUST LIMITED Trustees’ Report and Financial Statements for the year ended 30 April 2024

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NOTES TO THE FINANCIAL STATEMENTS

for the year ended 30 April 2024

1.5. Expenditure recognition

Expenditure is recognised as soon as 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.

Grants payable are charged to the Statement of Financial Activities (SOFA) when they have been approved by the Trustees and the beneficiary charity has been formally notified in writing of the award. This notification gives the recipient a reasonable expectation that they will receive the donor-advised grant. In the case of an unconditional grant offer, this is accrued once the recipient has been notified of the grant award, or once the grant has been paid, whichever is the earlier. Grant awards that are subject to the recipient fulfilling performance conditions are accrued when any remaining unfulfilled conditions attaching to that grant are outside of the control of the charity.

Governance costs comprise costs involving the public accountability of the charity and its compliance with regulation and good practice, and are included within support costs.

Irrecoverable VAT is charged as a cost.

1.6. Allocation of support costs

All expenses are allocated or apportioned to the applicable expenditure headings. Support costs, unless directly attributable, are charged to the general fund. Support costs comprise costs of certain central functions that underpin the delivery of our services, such as information systems, finance, executive management and governance.

1.7. Pension costs

There were no employees of the charity in the current or the previous year. All administrative services are provided by employees of Charities Aid Foundation (CAF), the charity’s ultimate parent (see note 16). The charity paid a management charge and fees to CAF for these services that included an element in respect of the cost of defined contribution pension arrangements.

1.8. Foreign currencies

Sterling is the functional and reporting currency. Transactions in foreign currencies are translated to Sterling at the exchange rate ruling at the date

of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to Sterling at the exchange rate ruling at that date.

Exchange differences arising are taken to the SOFA.

1.9. Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and, therefore, it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.10. Basic financial instruments a) Balances with banks

On-demand balances and short-term deposits represent “cash and cash equivalents” and include the charity’s cleared and uncleared balances held at clearing banks that are available on demand or have an original maturity date of three months or less.

Other represents balances with an original maturity of more than three months and less than five years. These are shown at the lower of cost or estimated realisable value.

b) Financial investments

A pool of investments may be held for Premier Donor Advised Funds (PDAFs) to achieve an investment return to fund future grants to charitable causes. The value of the investments determines the funds available for grantmaking at any point in time.

Basic financial instruments held as ‘Financial investments’ are, therefore, measured initially at fair value, which is normally the transaction price. Transaction costs are expensed in the SOFA if the investments are subsequently measured at fair value through profit or loss. Subsequent to initial recognition, all types of investments, including debt securities, that can be measured reliably are measured at fair value with changes recognised in the SOFA. Where the fair value of such investments cannot be reliably measured because, for example,

they are not publicly traded, the investments are measured at cost less impairment.

c) Other investments

Investment properties are measured initially at fair value, which is typically probate value. They are subsequently reviewed at each balance sheet date for any changes in fair value, which is typically open market value.

d) Debtors and creditors

Debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid.

Creditors are recognised where there is a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any discounts due.

e) Concessionary loans receivable

Concessionary loans may be receivable from other charities as a result of loans advanced by the charity. Such loans are advanced at concessionary (non-market) rates of interest, which may include interest-free loans. These are initially recognised at the amount advanced to the borrower and are subsequently measured at the amount advanced less amounts received less any impairment.

Loans are assessed at each reporting date to determine whether there is objective evidence of impairment. Objective evidence can include default or delinquency by a borrower, restructuring of a loan or advance on terms the charity would otherwise not consider, or indications that a borrower may become insolvent.

If there is evidence of impairment leading to an impairment loss, the amount of the loss is determined as the difference between the carrying amount of the loan, including accrued interest, and the estimated recoverable amount. The carrying amount of the loan is reduced by the use of an allowance account and the amount of the loss is recognised in the SOFA.

1.11. Critical accounting judgements and significant estimates

a) Critical accounting judgements

Classification of funds

Judgement has been applied in whether certain funds held should be classified as unrestricted general funds, unrestricted designated funds or restricted funds under the SORP.

The Trustees consider that the unrestricted general funds comprise those funds that the Trustees are free to use for any purpose in furtherance of the charitable objects of the charity.

Whereas, the Trustees consider that funds held pending suggestions by the original donors for the onward donation to charitable organisations, or for investment pending onward donation, are more appropriately classified as unrestricted designated funds. Subject to the Trustees being satisfied that these funds will be applied for charitable purposes, and in accordance with relevant regulations, there is no expectation that they will be applied for any purposes other than in accordance with suggestions received from the original donors.

Legacies

Judgement has been applied in recognising income from legacies gifted to the charity. Legacies are recognised as income where receipt is probable, which is determined from a review of a number of criteria including grant of probate, sufficiency of assets and the existence of any conditions to be met.

b) Significant estimates

There are no sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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NOTES TO THE FINANCIAL STATEMENTS

for the year ended 30 April 2024

2. INVESTMENT INCOME

Unrestricted general funds 2024 2023	Unrestricted designated funds Donor advised funds and gifs Premier donor advised funds	Total
	2024 2023 2024 2023	2024 2023
£000 £000 - - 3,973 1,156 3,973 1,156	£000 £000 £000 £000 - - 876 877	£000 £000 876 877
	- - 2,128 441	6,101 1,597
	- - 3,004 1,318	6,977 2,474

3. GRANTS AWARDED

4. COST OF CHARITABLE ACTIVITIES

Cost of charitable activities includes the following:	2024 £000	2023 £000
Allocated support costspaid to:	1,532 150 286 1,968 40 21
CAF(see notes 15 and 16)		1,607
CAF America(see notes 15 and 16)		14
Other direct costs		107
		1,728
Other support costs consistingofgovernance costs:
Fees payable to the charity’s auditor for the audit of the charity’s annual accounts (excluding irrecoverable VAT)
		43
Legal and professional expenses		22

5. STAFF COSTS AND TRUSTEES

There were no employees in the current or the previous year. All administrative services were provided by employees of CAF. The charity pays a management charge and fees for these services (see note 4).

Charitable sector:	2024 2023 No. of £000 No. of £000 Grants Grants 25 118 9 212 211 35,932 191 6,705 79 2,394 69 1,830 518 39,074 406 24,279 62 1,264 47 2,774 151 19,796 126 37,653 57 3,472 45 2,770 9 213 8 227 68 2,727 60 1,754 89 2,505 157 4,590 147 2,410 111 906 10 179 5 67 56 2,091 22 1,058 1,482 112,175 1,256 84,825 5 11,151 8 981 1 157 2 1,290 6 11,308 10 2,271 1,488 123,483 1,266 87,096
Animal welfare
Arts, culture, heritage or science
Citizenship or community development
Education
Environmental protection or improvement
Health
Human rights or confict resolution
Armed forces and the emergency services
Relief of poverty
Relief of those in need
Religion
Amateur sport
Other charitable purposes
Other group charities: Charities Aid Foundation (See note 16)
Charities Aid Foundation America (See note 16)

None of the Trustees received any remuneration or reimbursement of expenses during the current or the previous year, nor were any expenses paid on their behalf. None of the Trustees had an interest in the shares of the company or in any associated entity during the current or the previous year.

6. LOANS AND ADVANCES TO BANKS

	Unrestricted general funds 2024 2023 £000 £000	Unrestricted designated funds Donor advised funds and gifs Premier donor advised funds 2024 2023 2024 2023 £000 £000 £000 £000
On-demand and short-term deposits	1,443 1,302 - - - - 1,443 1,302	25,132 21,275 49,353 51,372 - - 28,506 22,957 - - 20,000 - 25,132 21,275 97,859 74,329
Remaining maturity of other loans and advances:
Less than 6 months
Over 6 months to 1 year

No grants were paid to individuals (2023: none).

28 CADF | SOUTHAMPTON ROW TRUST LIMITED Trustees’ Report and Financial Statements for the year ended 30 April 2024

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NOTES TO THE FINANCIAL STATEMENTS

for the year ended 30 April 2024

7. FINANCIAL INVESTMENTS

The following tables show the carrying amounts of financial investments held at fair value in respect of Premier Donor Advised Funds (PDAFs), which form part of the charity’s unrestricted designated funds.

PDAF funds are held pending the receipt of suggestions for onward donations from the original donor. Until such suggestions are received and grants are subsequently approved by the Trustees, there is no constructive obligation or liability to pay a defined amount within a set time period to a beneficiary.

A portion of the funds contributed by donors to their PDAF is typically held in cash in order to meet short-term giving expectations, with the balance invested to meet medium-to long-term philanthropic objectives. The approval by the Trustees of grants from PDAF funds is planned by reference to the market values and liquidity profile of the assets held for a PDAF.

2024 £000	2023 £000 41,743 11,095 (20,520) (2,101) 483
Held at fair value for unrestricted designated funds: At 1 May 30,700 Additions 36,552 Disposalproceeds (30,321) Realisedgains/(losses) 1,185 Unrealisedgains 2,837 40,953 Investmentportfolio cash 753 At 30 April 41,706 Historical cost of investments held at fair value 35,069
	30,700
	281
	30,981
	28,016

The following hierarchy is used to estimate the fair value of investments:

Level 1 - The quoted price for an identical asset in an active market.

Level 2 - When quoted prices are unavailable, the fair value is taken as the price of a recent transaction for an identical asset (derived from market data).
Level 3 - If the market for the asset is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, a valuation technique is used to estimate the fair value. The objective of using a valuation technique is to estimate what the transaction price would have been on the measurement date in an arms-length exchange motivated by normal business considerations. If the range of reasonable fair value estimates is significant and the probabilities of the various estimates cannot be reasonably assessed, the assets are valued at cost less impairment until a reliable measure of fair value becomes available.

No level 2 or level 3 assets were held at 30 April 2024 or 2023.

Represented by:	Represented by:	Represented by:	2024 Level 1 Total £000 £000	2023 Level 1 Total £000 £000 - - 548 548 473 473 10,379 10,379 - - 18,859 18,859 441 441 30,700 30,700 281 281 30,981 30,981	2023 Level 1 Total £000 £000 - - 548 548 473 473 10,379 10,379 - - 18,859 18,859 441 441 30,700 30,700 281 281 30,981 30,981
Listed Securities: UK Government fxed interest			803 803 857 857 530 530 12,668 12,668 184 184 25,317 25,317 594 594 40,953 40,953 753 753 41,706 41,706
Overseas Government fxed interest
UK equities
Overseas equities
IFSL CAF Funds
Unit trusts and otherpooled investments
Investment trusts

Investmentportfolio cash

8. OTHER INVESTMENTS Held at fair value for unrestricted designated funds:
			2024 £000	2023 £000 - 3,750 - -
At 1 May			3,750 - (3,720) (30) -
Additions
Disposals
Realised losses
				3,750

	Unrestricted general funds
	2024 £000
Investmentproperties	-	- - 3,750 -
	-	- - 3,750 -
9. LOANS TO CHARITIES
		Unrestricted designated funds Donor advised funds and gifs Premier donor advised funds 2024 2023 2024 2023 £000 £000 £000 £000 - - - - - - 803 796 - - - - - - 803 796			Total 2024 2023 £000 £000 - - 803 796 - - 803 796
Concessionary loans:
Amounts receivable in less than on	e year
Amounts receivable in one to fve years
Less: Provisions

8. OTHER INVESTMENTS

9. LOANS TO CHARITIES

Concessionary loans may be receivable from other charitable organisations as a result of loans advanced by the charity at concessionary (non-market) rates of interest. There were no concessionary loans committed but not taken up at the reporting date.

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NOTES TO THE FINANCIAL STATEMENTS

for the year ended 30 April 2024

10. DEBTORS

12.CHARITABLE FUNDS

All of the charity’s funds constitute unrestricted funds as follows:

	Unrestricted general funds 2024 2023 £000 £000	Unrestricted designated funds Donor advised funds and gifs Premier donor advised funds 2024 2023 2024 2023 £000 £000 £000 £000	Unrestricted designated funds Donor advised funds and gifs Premier donor advised funds 2024 2023 2024 2023 £000 £000 £000 £000	Total 2024 2023 £000 £000 876 153 7,070 1,961 1,699 28 - 573
		2024 2023 £000 £000
Interest and dividends receivable	784 81 - - 24 28 - - 808 109	- -	92 72 2,290 134 551 - - - 2,933 206
UK income tax recoverable		4,780 1,827
Other debtors		1,124 -
Prepayments and accrued income		573
		5,904 2,400		9,645 2,715

General funds

General funds are credited with surpluses arising from operations and are expendable at the discretion of the Trustees in the furtherance of the charity’s objectives.

Designated Donor Advised Funds and Gifts

The assets representing these funds have been gifted to the charity by donors. Donors may make suggestions (they may not direct) to the charity’s Trustees regarding the distribution of their donations to charitable organisations based across the world.

Designated Premier Donor Advised Funds

The assets representing these funds have been gifted to the charity by donors and are invested to generate an income that may be distributed to charities in addition to any capital distribution. Donors may make suggestions (they may not direct) to the charity’s Trustees regarding the distribution of the income and capital to charitable organisations based across the world.

Transfers between funds

11. CREDITORS

	Unrestricted general funds 2024 2023 £000 £000	Unrestricted designated funds Donor advised funds and gifs Premier donor advised funds 2024 2023 2024 2023 £000 £000 £000 £000	Unrestricted designated funds Donor advised funds and gifs Premier donor advised funds 2024 2023 2024 2023 £000 £000 £000 £000	Total
		2024 2023 £000 £000		2024 2023 £000 £000
Amounts due to: CAF	131 115 46 60 177 175	- -	- - - 1,278 - 1,278	131 115
Other creditors		1,481 -		1,527 1,338
		1,481 -		1,658 1,453

Transfers between funds arise upon original donors requesting that their donations are held under one of the charity’s other giving funds.

13. CALLED UP SHARE CAPITAL

2024	2023
Authorised, allotted, issued and fully paid: £ 100 ordinary shares of £1 each 100	£ 100

The intercompany balances, none of which represent loan arrangements, are interest free and payable on demand.

14. RECONCILIATION OF SHAREHOLDERS’ FUNDS

14. RECONCILIATION OF SHAREHOLDERS’ FUNDS
2024 £	2023 £
Openingshareholders’ funds 100 Result for the year and net additions to shareholders’ funds - Closing shareholders’ funds 100	100
	-
	100

32 CADF | SOUTHAMPTON ROW TRUST LIMITED Trustees’ Report and Financial Statements for the year ended 30 April 2024

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NOTES TO THE FINANCIAL STATEMENTS

for the year ended 30 April 2024

15. PARENT AND ULTIMATE PARENT ENTITY

All of the charity’s issued share capital is owned by Charities Aid Foundation of America (CAF America). The charity’s Trustees are appointed by its existing Trustees or by the Board of Directors of CAF America. CAF America is the charity’s controlling entity and the smallest group into which the charity is consolidated. CAF America is a US 501(c)(3) public charity recognised by the US Internal Revenue Service. CAF America is incorporated in the State of Delaware. CAF America’s headquarters are located at: 225 Reinekers Lane, Suite 375, Alexandria, VA 22314 USA.

Charities Aid Foundation (CAF), UK registered charity number 268369, has the power to appoint and remove the members of CAF America at any time and accordingly CAF is the charity’s ultimate controlling entity and the largest group into which the charity is consolidated. The accounts of CAF can be obtained from CAF at: 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4TA.

16. RELATED PARTY TRANSACTIONS

CAF America

During the year, no grants were awarded (2023: £81,214) from the general fund for CAF America’s general purposes.

In addition, the charity awarded grants of £8,650,700 (2023: £181,046) to CAF. These were awarded and paid from the charity’s Donor Advised Funds and was for the credit of similar Donor Advised Funds held by CAF. The charity was awarded grants of £18,763 (2023: £10,240) from CAF for the credit of Donor Advised Funds awarded from similar Donor Advised Funds held by CAF.

The charity was charged £1,531,684 (2023: £1,441,632) by CAF for the provision of support services for the year. At the balance sheet date, £130,076 (2023: £113,597) was unpaid by the charity.

17. CONTINGENT ASSETS

At the balance sheet date, the charity had not been notified of any legacy for which probate was not yet granted or other factors that indicated the legacy should not be recognised as income (2023: one legacy with an estimated value of £100,000).

18. POST BALANCE SHEET EVENTS

There have been no significant post balance sheet events.

During 2023/24, £156,876 (2023: £1,208,339) was awarded and paid to CAF America from the charity’s Donor Advised Funds and was for the credit of similar Donor Advised Funds held by CAF America.

During 2023/24, £280,104 (2023: £461,591) was received from CAF America for the credit of Donor Advised Funds from similar funds held by CAF America.

In addition, the charity was charged £150,061 (2023: £13,515) by CAF America for the provision of support services for the year. This was fully paid at 30 April 2024.

Charities Aid Foundation (CAF)

During the year, the charity awarded a grant of £2,500,000 (2023: £800,000) from the general fund for CAF’s general purposes. This grant was fully paid by the charity at 30 April 2024.

CADF | SOUTHAMPTON ROW TRUST LIMITED Trustees’ Report and Financial Statements for the year ended 30 April 2024

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The CAF American Donor Fund is the operating name of Southampton Row Trust Ltd, a company registered in England and Wales with the company number 03900842 and with the Charity Commission registered charity number 1079020. Southampton Row Trust Ltd is a wholly owned subsidiary of CAF America, a US 501 (c) (3) public charity.

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Visit www.cafonline.org to find out more

2024-04-30-accounts

TOGETHER,

WE GIVE MORE

CONTENTS

REGISTERED OFFICE

TRUSTEES

Mark Greer

Liz Rylatt

Ted Hart

Chair’s report

Trustees’ report Including the strategic report

ACHIEVEMENTS AND PERFORMANCE

FINANCIAL REVIEW

OUR AIMS FOR NEXT YEAR

Risk management

CREDIT RISK

LIQUIDITY RISK

MARKET AND INTEREST RATE RISK

SHARE CAPITAL AND DIVIDENDS

PUBLIC BENEFIT

FUNDRAISING

GRANTMAKING POLICY

RESERVES POLICY

GOING CONCERN

INVESTMENT POWERS AND POLICY

RELATED PARTIES

STRUCTURE, GOVERNANCE AND MANAGEMENT

POST BALANCE SHEET EVENTS

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

OPINION

BASIS FOR OPINION

Independence

CONCLUSIONS RELATING TO GOING CONCERN

REPORTING ON OTHER INFORMATION

Trustees’ Report

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT

Responsibilities of the trustees for the financial statements

Independent Auditors’ report to the members of Southampton Row Trust Limited

OTHER REQUIRED REPORTING

Auditors’ responsibilities for the audit of the financial statements

Use of this report

COMPANIES ACT 2006 EXCEPTION REPORTING

DARREN L MEEK

STATEMENT OF FINANCIAL ACTIVITIES

BALANCE SHEET

CASH FLOW STATEMENT

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

1.3. Fund accounting

1.1. Basis of preparation

1.4. Income recognition

a) Donations and legacies

1.2. Going concern basis

b) Investment income

1.5. Expenditure recognition

Irrecoverable VAT is charged as a cost.

1.6. Allocation of support costs

1.7. Pension costs

1.8. Foreign currencies

1.9. Taxation

1.10. Basic financial instruments a) Balances with banks

b) Financial investments

c) Other investments

d) Debtors and creditors

e) Concessionary loans receivable

1.11. Critical accounting judgements and significant estimates

a) Critical accounting judgements

Classification of funds

Legacies

b) Significant estimates

2. INVESTMENT INCOME

3. GRANTS AWARDED

4. COST OF CHARITABLE ACTIVITIES

5. STAFF COSTS AND TRUSTEES

6. LOANS AND ADVANCES TO BANKS

7. FINANCIAL INVESTMENTS

8. OTHER INVESTMENTS

9. LOANS TO CHARITIES

10. DEBTORS