**Company number 03948898 Charity number 1083262**
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
**TRUSTEES’ REPORT AND FINANCIAL STATEMENTS**
**31 DECEMBER 2020**
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
|CONTENTS|**Page**|
|---|---|
|Legal and administrative information|1|
|Report of the Trustees|2-9|
|Independent auditors’ report to the trustees|10-13|
|Statement of financial activities incorporating the income and expenditure account|14|
|Balance sheet|15|
|Cash flow statement|16|
|Notes to the financial statements|17-30|
**ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Constitution**|Rothschild Foundation (Hanadiv) Europe is a company limited by guarantee|
|---|---|
||and a registered charity governed by its memorandum and articles of|
||association. It is a registered charity, No. 1083262. Company No. 03948898.|
|**Directors and Trustees**|The directors of the charitable company (“the Foundation”) are its trustees for|
||the purpose of charity law and throughout this report are collectively referred|
||to as the trustees. As set out in the articles of association the chairman of the|
||board of trustees is appointed by the trustees. The members have the power to|
||appoint any of their number to be a trustee.|
||The trustees who served during the year were:|
||Lord Rothschild OM GBE (President)|
||Bradley Fried (Chairman from 21 Jul 2020)|
||Sir Victor Blank (Chairman until 21 Jul 2020)|
||Mme Béatrice Rosenberg|
||Dr David Landau|
||Adam Karni Cohen|
||The Honourable Beth Rothschild|
||Nicola Cobbold|
||Nicola Loftus|
|**Company Secretary**|L Masterton|
|**Chief Executive**|S Berkovic|
|**Registered Office**|27 St James’s Place|
||London|
||SW1A 1NR|
|**Auditors**|Saffery Champness LLP|
||71 Queen Victoria Street|
||London EC4V 4BE|
|**Bankers**|The Bank of New York Mellon|
||Rue Montoyer 46|
||B-1000 Brussels|
||Belgium|
||Coutts & Company|
||440 Strand|
||London WC2R 0QS|
|**Solicitors**|Farrer & Co LLP|
||66 Lincolns Inn Fields|
||London WC2A 3LH|
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
The trustees are pleased to present their report together with the financial statements of the Foundation for the year ended 31 December 2020.
Legal and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice: Accounting and Reporting by Charities applicable in the UK and Republic of Ireland (FRS 102) Second edition and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.
## **Objects of the Foundation and Public Benefit**
The objects of the Foundation are set out in the memorandum of association.
The Foundation is established to advance any charitable purpose and to benefit any charity as the trustees in their discretion think fit, primarily by the provision of grants and loans for such charitable purposes which are for the charitable benefit of the Jewish community either in Israel or elsewhere in the world. The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the aims and objects of the Foundation and in setting grant-making policies.
## **Organisation**
The board of trustees of up to twelve members administers the Foundation. The trustees meet to consider recommendations for, and make final decisions on, the awarding of grants.
All trustees receive a comprehensive Governance pack on their appointment. The Governance pack provides information on the structure and operations of the Foundation and includes a Trustee Code of Ethics, which has been adopted by the trustees, as well as the key governance issues and documents of which the trustees should be aware. Training for trustees is continued through regular meetings and discussions with Foundation staff or individuals and organisations in the areas supported by the Foundation.
There are two separate committees of Trustees which discuss matters relevant to their remit in detail and make recommendations to the full Trustee Board. These are:
- Small Grants Awards Committee
- Finance and Audit Committee
Both Committees meet at least twice yearly.
Remuneration of key management personnel is discussed and approved by the full Trustee board taking into account performance, budgetary environment and benchmarking.
## **Review of activities and future developments**
## _**Incoming resources**_
Incoming resources for the year amounted to £42,441 of investment income (2019: £57,541).
The Foundation is one of the philanthropic trusts supported by Lord Rothschild and his family. It does not carry out any fundraising activity in order to raise funds from the general public.
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## _**Resources expended and services**_
Resources expended for the year amounted to £7,359,124 (2019: £6,815,730) of which the amount related to direct expenditure on grants and other charitable activities was £6,093,850 (2019: £5,677,527).
## **Covid-19 Response**
Like many other Foundations, we responded to the COVID-19 crisis by offering additional financial support, both to some of our existing grantees, but also to a range of welfare organisations that do not usually fall within our remit. Trustees approved a total of nearly £1.4M towards this COVID effort and it is worth noting the impact of 2 particularly large grants.
Firstly, we contributed £203k to the European Jewish Community Day School Crisis Fund which awarded £2M grants to 13 schools to ensure they could keep their doors open as well as provide scholarships to students struggling to afford tuition as a result of the pandemic. Communities experiencing hardship applied for grants, and funds were allocated based upon increased scholarship needs, decreased donor funding, decreased community funding, and increased costs related to staying open while complying with health guidelines and the provision of online teaching.
Secondly, we awarded £227k to the JDC in Europe which created the COVID Humanitarian Relief Fund. This was to respond to the “new poor” families and elderly who, after losing their income, began knocking at the doors of their communities for assistance to purchase basics such as food and medicine. To date, the fund has assisted 15 communities in Europe. JDC allocations are made for two-month periods to ensure that the aid remains dynamic and responds to the evolving reality on the ground, while an audit process is in place to ensure that the support is reaching the families in need.
Our usual work did not stop due to Covid, but rather confirmed that our niche areas of support in culture and heritage are at risk as more front-line, immediate concerns became the focus of much government and NGO support. In our review of the gaps we currently address, and will work towards addressing, 3 distinct phases were identified.
## **1. Finding the Gaps: to recognize, articulate and bring gaps to the fore.**
This requires three steps: identifying needs, seed funding and incubating a speciality.
Identifying needs involves desk and field research, consultation with experts and an openness to unexpected findings that may steer the Foundation in another direction. For example, we reacted quickly to requests for digital support in our education programme, where online programming and professional training were crucial to sustaining a semblance of community life. To test innovation in museums, we received several applications and awarded a grant to Muzeon in Cluj, Romania. It uses new technologies and archival documents to engage visitors and focuses on the Jewish community in Cluj, from the 19th and 20th centuries, and their contribution to the local culture.
Seed funding to fledgling projects and organisations includes taking small risks to determine if a new idea can develop into a sustainable project. For example, the Italian Books project, I-Tal-Ya, started as a small 1-year pilot project, but with the knowledge and contacts of RFHE, including bringing in the National Library of Israel, it has become a significant national project in Italy to catalogue all the Jewish books in the 21 Jewish community libraries across the country, with the co-operation of the National Library of Rome. Within our Academic Jewish studies programme, the research consortia category is designed to enable scholars to develop applications for larger funding bids and there have several successful projects that have received large grants on the back of our initial funding.
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
Incubating a growing speciality creates a cluster of projects that reflect a current challenge or emerging trend. For example, we are supporting the development of a website for Jewish Studies Digital Humanities that will share information about major projects to foster collaboration and combat duplication and siloing. A launch conference was held in January 2021 featuring many RFHE funded digital projects.
## **2. Bridging the Gap: to build alliances between organisations, connect professionals and create opportunities for new initiatives to emerge.**
We are able to do this in three ways: harnessing our convening powers, identifying synergies and capacity building.
Harness our convening powers involves bringing people together for seminars and conferences, creating, sustaining and nurturing relevant networks to facilitate collaboration. For example, Yesod, our programme for leadership development, ensures partnerships with external organisations expand participant opportunities. Yesod was instrumental in developing the Maayan database of Jewish educators, pulling together networks and expertise from RFHE grantees including the European Union of Jewish Students, Limmud, Moishe House, Educating for Impact
Identify synergies includes considering opportunities for skills and knowledge transference, leveraging our influence for greater good and facilitating connections. For example, RFHE supports several Regional Hubs of Academic Jewish Studies including University of Manchester, CSIC and Computense University in Madrid, Charles University in Prague and the Central European University in Budapest/Vienna, yet they don’t know each other. We brought them together at the National Library of Israel to consider synergies between them and explore joint projects.
Capacity Building involved developing internal resilience and improving organisational infrastructure. Recent examples include the appointment of a Junior Curator at the Museum of Jewish Art and History in Paris as part of a succession plan and to help the museum address the severe shortage of experienced staff. Grants to deal with archival collections in Bulgaria and Crete were offered support from the Central Archives of the History of the Jewish People – CAJHP – and the National Library of Israel so that certain standards were met to ensure their projects would be compatible in order to be deposited with the NLI.
## **3. Closing the Gap: to fill the lacunae and be mindful of potential future gaps for planning purposes.**
This involves supporting external project evaluation, developing sustainability and succession strategies and launching exemplar initiatives and disseminating information widely.
Supporting external project evaluation helps grantees to learn from their experience to improve their own services and help others. For example, at Moishe House, after 8 years of our support, RFHE encouraged an evaluation focusing on the long term impact of their educational interventions, and the results will inform the wider field. In a different case, academics at the Ecole Superieure Talmudique proposed an important digitisation project but lacked the requisite technical skills. We provided a digital consultant able to guide the academics to ensure appropriate standards are in place.
Developing sustainability and succession strategies includes investing in training professionals, promoting common standards and encourage mergers. For example, we now offer language grants across all our programmes to ensure that Hebrew and Yiddish in particular, continue to be studied. During COVID we offered online courses, and this will continue in the future. Further, Seminars, hands-on workshops and site visits are
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
essential for Jewish heritage workers to gain skills and experience as there is a looming shortage of qualified staff.
RFHE has initiated exemplar projects with the capacity to comprehensively deal with a specific issue such as Yerusha: creating a database of Jewish archives in Europe; Yesod: leadership development in Jewish communities; JHE: Jewish-heritage-europe.eu web portal as one-stop resource; NLI: Gesher L’Europa – Bridge to Europe projects bringing the NLI to Europe; and Judaica Index: an online database of 200+ Judaica objects in 15 languages, to be launched in the summer of 2021. They all indicate a proactive attempt by the Foundation to lead in a particular field, creating new projects that offer a service or a resource that did not previously exist.
Disseminating information widely focusses on increasing access to resources and support for more effective communications showcasing grantee work. For example, we have funded museum catalogues and online exhibitions including Rome, Amsterdam, Stockholm, Vienna, Bratislava, Ferrara, Berlin, Venice, Warsaw and Oslo. Further, we offer communications and social media advice – and while encouraging all grantees to collect media citations of their work, we are also looking ahead to profile unusual and ground-breaking work by grantees.
## **NATIONAL LIBRARY OF ISRAEL [NLI]**
The Foundation has a significant relationship with the NLI and has developed the Bridge To Europe programme to bring the expertise and resources of the NLI to relevant organisations in Europe. As we enter Phase 3 of this relationship, a plan for 2021 – 2024 has been approved by RFHE Trustees. This will focus on four complementary themes:
Heritage - to create an integrated platform for the At the Source (ATS) training and development programme for Jewish Heritage professionals – and post-COVID to continue to work with regional partners, provide ongoing support and leverage alumni trainees to develop ATS as a leading ‘brand’ for Jewish Heritage training.
Education - to provide high-quality innovative and creative educational resources and experiences, underpinned by NLI Collections appropriate for the diverse Jewish educational needs in Europe, in formal and informal education.
Continued Learning - drawing on experience gathered since Bridge to Europe started, we will offer new opportunities for ‘lifelong learners’ in Jewish contexts to encounter enriching NLI content that complements the work of current adult Jewish learning initiatives in Europe.
Culture - to promote the new state-of-the-art building as a leading international cultural centre through a series of residencies and fellowships for artists and writers in Europe, and continue the new Reading Room online cultural programme, which connects the NLI with new audiences across Europe.
Further, these thematic areas will be underpinned by a virtual and physical convening space. The digital platform will continue promoting NLI content to audiences in Europe and enable interactions and dialogue. Bridge to Europe will contribute towards high-profile international events as part of the planned season of opening events in 2022 and 2023, boosting the NLI’s role as a ‘destination hub’ for European audiences seeking to engage with Jewish culture, heritage and education.
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
In 2020 grants for projects were awarded in the following countries:
Austria Belgium Czech Republic Estonia France Germany Greece Hungary Ireland Israel* Italy Latvia Lithuania Luxembourg Netherlands Poland Romania Serbia Switzerland Turkey Ukraine United Kingdom United States*
*Grants to organisations in Israel and the USA are for specialised work carried out in European institutions. A total of 7 grants.
## **Grant making policy**
Individuals and institutions whose projects fall within the areas in which the Foundation currently works are eligible to be considered for grants. In the UK, grants are only made to organisations registered with the Charity Commission for England and Wales or to individuals working for charitable purposes on behalf of those organisations. Overseas grants are only made for purposes considered to be charitable by the Charity Commission for England and Wales to organisations that have charitable or not-for-profit status in their countries, or to individuals working on behalf of such charitable or not-for-profit organisations. Where there is any uncertainty about the status of an organisation abroad, the Foundation will work through long-established bodies with considerable experience of grant-making, monitoring projects and the allocation of charitable funds in the countries concerned, in order to ensure that the recipients of grants are of a charitable nature.
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Investment policy**
In accordance with the memorandum and articles of association, the trustees exercise the power of investment having obtained and considered the advice of persons they believe to be suitably qualified to advise them, and in accordance with written investment policy guidelines. The Foundation’s policy in relation to investment is that, over the medium to long term, it should produce a total return that allows the Foundation to pursue its charitable objectives as fully as possible whilst maintaining the real value (i.e. adjusted for inflation) of the initial endowment.
For the year ended 31 December 2020, a sterling composite benchmark was approved for investment performance measurement purposes. At the end of the year the value of the portfolio was £139.0 million compared with the value at year-end 2019 of £132.0 million. During the year the portfolio has increased in value 5.3%, compared with an increase of 1.3% in the MSCI World All Country Equity Index (£) and an increase of 9.6% in the Citi World Government Bond Index. The Trustees consider the investment performance of the portfolio to be satisfactory in the COVID-19 economic climate.
## **Relationships with related parties and delivering public benefit**
The Foundation is entirely independent but occasionally works with other charitable foundations to support charitable projects in Europe. For example, in the wake of increased anti-Semitism in Europe, the Rothschild Foundation (Hanadiv) Europe, and three other European foundations have combined to create a foundation, whose sole purpose is to provide security training and readiness for staff and regular visitors to communal institutions including schools and community centres across Europe.
In the UK, the Foundation’s support for a variety of Jewish social care organisations such as Jewish Care (focused on the elderly), Norwood (families) and Kisharon (children with disabilities) reflects the Rothschild family’s historical concern and involvement in the welfare needs of the Jewish community.
As part of our ‘added value’ the Foundation initiates complementary activities (e.g. research, conferences) that support our focussed areas. For example, in June 2019 we initiated a training programme for PhD students and early career professionals in the heritage sector to develop specific knowledge and skills around Jewish heritage. During 2020, our response to the COVID crisis provided ‘added value’ to organisations we already support by offering them extended deadlines for reporting, reallocation of some funding to meet the needs in their organisation and in a limited number of instances, some additional emergency funding. The Foundation expressed its concern and support for the wider Jewish community beyond our usual strategic areas by awarding emergency grants to welfare organisations helping those in distress.
## **Future objectives**
In addition to our usual grant-making, other activities planned for 2021 include:
- Launch of the Judaica Index: database of over 200 Judaica items in 15 different languages.
- Launch of Yerusha: an online platform which unites Jewish archival heritage held in hundreds of archives, libraries and museums across Europe.
- Consolidation and streamlining of our Academic Jewish studies program.
More specifically with the NLI, we will be involved in the following:
- Creating more online training resources and interactive learning opportunities based on NLI Collections and expertise – offering heritage professionals a virtual space to network with and receive advice from NLI staff.
- Hosting an on-line Curators Conference that builds momentum towards the new building and flagship event in 2023.
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
- Establishing the NLI in Europe and the international community as a lead provider of quality online cultural events in the field of heritage, drawing on the unique advantage of our collections to spark discussions and engage the public.
- Establishing NLI International Cultural Fellowships and creating an infrastructure of partnerships in Europe for implementation in 2022/3.
- Focusing on the Digital Campaign which has gained increased coverage and reader engagement. Nearly half of all sessions for the English blog are from Europe - 107,000 in total, a 15% increase compared to the previous six months. Since May 2020, the ‘Life before the Holocaust’ Facebook group grew by 55% and now has over 27,000 members, 61% of those reporting their location are from 43 countries across Europe.
## **Reserves policy**
The Trustees’ policy is to review reserves levels on a regular basis and to maintain a level of reserves which will provide a stable base for the Foundation’s continuing activities while at the same time ensuring excessive funds are not accumulated.
The Trustees have considered the reserves of the charity and conclude that there is no need for the charity to carry free reserves. The nature of the expendable endowment fund is such that the trustees have absolute discretion over how it is spent, and investments can be called upon and realised as needed.
During the year ended 31 December 2020 the Foundation made grants in excess of its income, making good the difference from its expendable endowment and leaving a nil level of free reserves, as per the definition stated by the Charity Commission. The Trustees have exercised their option to expend endowment in order to cover the deficit on the unrestricted income fund.
Total reserves at the year-end were £135,218,382 (2019: £127,377,343).
## **Risk Management**
The major risks to which the Foundation is exposed have been reviewed, and systems have been established to manage those risks. The Foundation’s investment and spending policies are intended to be prudent; and much of its income derives from investments.
The Trustees consider that there is a risk that the level of income could fall considerably, whether from investments or donations, although the latter is considered unlikely. In such an event, the total of grants committed might have to be reduced. Since the nature of the Foundation’s grant-making activity involves relatively little by way of future commitments, the impact on current beneficiaries is unlikely to be significant.
There is also a risk that grant funds are not used for charitable purposes for which funds were awarded. This risk is managed through a due diligence process which is applied to all prospective grantees. In the event of doubt about the suitability or sustainability of an applicant, grant funding is not awarded.
## **Statement of trustees’ responsibilities**
The trustees (who are also directors of the Foundation for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources,
## **TRUSTEES’ REPORT**
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE FOR THE YEAR ENDED 31 DECEMBER 2020**
including the income and expenditure, of the Foundation for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Foundation will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the Foundation’s auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Foundation’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Auditors**
A resolution will be proposed at the annual general meeting that Saffery Champness LLP be re-appointed as auditors to the Foundation for the ensuing year.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
By order of the Trustees
Bradley Fried 20 July 2021
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES**
## **Opinion**
We have audited the financial statements of The Rothschild Foundation (Hanadiv) Europe for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 Financial Reporting Standard 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:
- give a true and fair view of the charitable company’s state of affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Companies Act 2006.
## **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 charitable company 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES**
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report which includes the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- • the Trustees’ Report which includes the Directors’ Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and to take advantage of the small companies’ exemption from the requirement to prepare a strategic report or in in preparing the Trustees’ Report.
## **Responsibilities of trustees**
As explained more fully in the Statement of trustees’ responsibilities set out on pages 8 and 9, the trustees (who are also directors of the charitable company for the purposes of company law) 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 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 to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under 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
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES**
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
## Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with management and the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with management and the trustees and updating our understanding of the sector in which the charitable company operates.
Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales.
## Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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
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**ROTHSCHILD FOUNDATION (HANADIV) EUROPE INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES**
other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Cara Turtington (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP
Chartered Accountants 71 Queen Victoria Street Statutory Auditors London EC4V 4 BE
Date:
Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
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## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Note**
**Income from:**
Income from investments
9.
**Total income**
**Expenditure on:**
**_Raising funds_**
Investment management costs
4.
**_Charitable activity_**
**Unrestricted Fund**
Academic Jewish Studies Programme
4.
Heritage and Culture Programme
4.
Education and Research
4.
National Library of Israel and other
4.
Community Welfare
4.
**Total resources expended**
Net outgoing resources before
investment movement
**Net gains on investment assets**
Realised and unrealised investment
gains
**Net income and expenditure**
Transfers between funds
1.b.
**Net movement in funds**
Fund balances brought forward
**Fund balances carried forward**|**Expendable**
**Unrestricted**
**endowment**
**income**
**Year ended**
**Year ended**
**fund**
**fund**
**31-Dec**
**31-Dec**
**2020**
**2020**
**2020**
**2019**
**£**
**£**
**£**
**£**
-
42,441
42,441
57,541|
|---|---|
||-
42,441
42,441
57,541|
||547,893
-
547,893
512,148
-
1,164,408
1,164,408
1,097,547
-
2,229,418
2,229,418
2,865,938
-
1,078,799
1,078,799
843,016
-
553,412
553,412
500,158
-
1,785,194
1,785,194
996,923|
||547,893
6,811,231
7,359,124
6,815,730|
||(547,893)
(6,768,790)
(7,316,683)
(6,758,189)
15,157,722
-
15,157,722
13,249,685|
||14,609,829
(6,768,790)
7,841,039
6,491,496
(6,768,790)
6,768,790
-
-|
||7,841,039
-
7,841,039
6,491,496
127,377,343
-
127,377,343
120,885,847|
||135,218,382
-
135,218,382
127,377,343|
The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.
The notes on pages 17 to 30 form part of these financial statements. In note 2, there is a full statement of financial activities for the year ended 31[st] December 2020.
14
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **BALANCE SHEET AS AT 31 DECEMBER 2020**
|**Notes**
**Fixed Assets**
Tangible assets
8.
**Investments**
Quoted securities and unquoted investments
Derivative financial instruments
Sales for future settlement
Cash balances
9.
**Current assets**
Prepayments
Cash at bank
**Creditors: amounts falling due within one year**
Other creditors
Grants payable within one year
Accruals
**Net current liabilities**
**Creditors: falling due in more than one year**
Grants payable
11.
**Net assets**
**Funds**
Expendable endowment fund – historical cost
12.
Expendable endowment fund – revaluation
Unrestricted income fund
**Total funds**
13.|**31-Dec**
**2020**
**£**
8,484
136,623,574
250,886
-
2,501,350
139,375,810
73,533
25,305
98,838
765
3,226,460
78,690
3,305,915
(3,207,077)
(958,835)
135,218,382
77,236,956
57,981,426
-
135,218,382|**31-Dec**
**2019**
**£**
3,175|
|---|---|---|
|||131,351,787
131,035
1,509
783,978|
|||132,268,309|
|||63,197
41,254|
|||104,451|
|||4,767
3,546,947
84,897|
|||3,636,611|
|||(3,532,160)
(1,361,981)|
|||127,377,343|
|||81,644,468
45,732,875
-|
|||127,377,343|
The notes on pages 17 to 30 form part of these financial statements Signed on behalf of the Board on 20 July 2021
……………………………………….. Bradley Fried, Chairman Registered in England & Wales Company Number: 03948898
……………………………………….. Dr David Landau, Trustee
15
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Net cash used in operating activities**
**Cash flows from investing activities:**
Purchase of tangible fixed assets
Purchase of investments
Proceeds from sale of investments
Proceeds from forward currency contracts
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at 1 January**
**Cash and cash equivalents at 31 December**
**Notes to the cash flow statement**
**Analysis of cash and cash equivalents**
Cash within investment portfolio
Other bank balances
**Reconciliation of changes in resources to**
**net cash used in operating activities**
Net income (Page 15)
Gains on investments
Depreciation charges
Realised exchange (loss) / gain
Increase in sales for future settlement
Increase in debtors
Increase in creditors
**Net cash used in operating activities**|**2020**
**£**
(8,165,270)
(8,456)
(4,744,111)
14,681,540
(62,278)
9,866,695
1,701,425
825,232
2,526,655
**2020**
**£**
2,501,350
25,305
2,526,655
**2020**
**£**
7,841,039
(15,157,722)
3,147
(109,065)
)
1,509
(10,336)
(733,842)
(8,165,270)|**2019**
**£**
(6,423,905)
(2,991)
(7,722,638)
13,379,545
-|
|---|---|---|
|||5,653,916|
|||(769,989)
1,595,221|
|||825,232|
|||**2019**
**£**
783,978
41,254|
|||825,232|
|||**2019**
**£**
6,491,496
(13,249,685)
1,129
23,063
(1,509)
(7,922)
319,523|
|||(6,423,905)|
The notes on pages 17 to 30 form part of these financial statements.
16
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. Accounting Policies**
## **a) Basis of preparation**
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities applicable in the UK and Republic of Ireland (FRS 102) Second edition and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.
The trustees consider that there are no material uncertainties about the Foundation’s ability to continue as a going concern.
The Foundation constitutes a public benefit entity as defined by FRS102.
## **b) Fund accounting**
The expendable endowment fund is primarily for income generation but is expendable at the trustees’ discretion. The trustees have the discretion to transfer funds to the unrestricted income fund should the need arise.
The expendable restricted funds are subject to specific restrictions imposed by donors. The Friends of Bat Hanadiv Fund was established for such purposes for the benefit of Jews as shall for the time being be exclusively for charitable purposes according to the law of England. The unrestricted income fund can be used in accordance with the charitable objects of the Foundation at the discretion of the trustees.
As of December 2019, the expendable restricted fund was fully spent. Trustees have agreed to allocate funds from the unrestricted fund towards those welfare related charities traditionally supported by the expendable restricted fund.
## **c) Incoming resources**
All incoming resources are included in the statement of financial activities when the charity has entitlement to the income, it is probable income will be received and the amount can be measured reliably.
## **d) Foreign currency translation**
Foreign currency transactions are translated into pounds sterling at the exchange rate prevailing at the transaction date. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date.
## **e) Resources expended**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is included on an accruals basis.
Expenditure on raising funds comprises those expenses directly attributable to managing the investment portfolio and investment income.
Grants payable are charged in the year where the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions are no longer seen to be within the control of the Trustees. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.
17
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
Support costs (e.g. staff costs and administrative overheads including rent) are allocated to the Foundation activities as incurred. Governance costs have been allocated to the Foundation’s activities. They comprise of all costs involving the public accountability of the charity and expenses related to statutory requirements. These expenses include fees for statutory audit, legal fees where relevant.
## **f) Fixed Assets**
Fixed assets comprise office furniture, equipment and motor vehicles. Fixed assets are capitalised when cost exceeds £1,000 and are being depreciated on a straight-line basis over four years.
## **g) Investments**
- (i) **Quoted securities and multi-asset funds**
- Quoted securities and multi-asset funds comprise publicly quoted, listed securities including shares, bonds and units. These are stated at market value at the balance sheet date. Investment shares and purchases are recognised at the date of trade.
- (ii) **Unquoted Investments**
- Unquoted investments are valued at the Trustees’ best estimate of fair value, after having taken professional advice. The principal unquoted valuations are calculated as follows:
## **Unquoted hedge funds**
Unquoted hedge funds are valued by reference to the fair value of the underlying securities. These valuations are provided by third-party hedge fund administrators.
## **Private equity funds and property funds**
The vast majority of private equity and property fund investments are held through funds managed by private equity and property groups. No readily identifiable market price is available for these unquoted funds. These funds are included at the most recent valuations from their respective managers.
In a limited number of cases where information is not available as at 31 December, the most recent valuations from the managers are adjusted for cash flows and foreign exchange movements between the most recent valuation and the balance sheet date.
## (iii) **Derivative Financial Instruments**
- Derivative financial instruments are used as part of the Foundation’s portfolio risk management and as part of the Foundation’s portfolio management and investment return strategy.
The Foundation’s use of derivative financial instruments includes index-linked futures, options and currency forwards.
The fair value of contract positions is recognised in the Balance Sheet and gains and losses on the contracts are recognised in the Statement of Financial Activities.
## (iv) **Cash and Equivalents, and Sales for Future Settlement**
- Cash held within the investment portfolio and sales for future settlement are stated at their fair value.
18
**ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
## (v) **Realised and unrealised gains and losses**
Realised gains and losses represent the difference between the amount received on the sale of an investment and the original cost price, all other movements are considered to be unrealised.
## **h) Operating leases**
Rental payments under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.
## **i) Pensions**
The Foundation makes payments into a defined contribution scheme for the benefit of its employees. The contributions are charged to the statement of financial activities in the year in which they are paid.
## **j) Critical estimates and judgements**
Judgements and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In making these estimates the Foundation makes assumptions concerning the future. The Trustees do not believe that there is a significant risk of a material adjustment being made to the carrying amounts of assets and liabilities included in these financial statements within the next financial year.
The valuation of unquoted investments, private equity and property funds is a critical area of judgement. The Trustees’ valuation of these items is based on appropriate professional advice.
## _Impact of Covid - 19_ .
Market conditions in 2020 were amongst the most challenging in recent memory. The Foundation portfolio maintained a defensive posture throughout the year but nevertheless outperformed global equity and government bond indices. Manager performance was generally strong, and core long-term equity themes outperformed. WHAM is mindful of the implications of markets rebalancing in 2021, and of the risk of overvaluation in some asset classes. Nevertheless, the environment remains supportive of markets at present. Over the past several years, WHAM has been increasing the liquidity of portfolios to ensure they remain in a strong position to meet any grant commitments, private equity capital calls and margin payments in the event of a sudden market reversal. The Rothschild Foundation (Hanadiv) Europe maintains a cash buffer within its portfolio to meet immediate cash requirements and has monthly access to cash from its significant investment in the WHAM Endowment Fund. The WHAM Endowment Fund remains in a strong position to meet the cash needs of its investors. As at the end of February 2021, approximately 44% of its portfolio consisted either of cash or instruments that could be converted into cash within two days. The team at WHAM remains vigilant regarding unfolding market risks, as well as about longer-term investment opportunities that are likely to emerge once risk levels abate.
19
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
**2.[Statement of Financial Activities incorporating the Income and Expenditure Account for the year ended 31 ] December 2019**
|**Income from:**
Income from investments
**Total income**
**Expenditure on:**
**_Raising funds_**
Investment management costs
**_Charitable activity_**
**Unrestricted Fund**
Academic Jewish Studies Programme
Heritage and Culture Programme
Education and Research
National Library of Israel and other
**Restricted Funds**
Friends of Bat Hanadiv
**Total resources expended**
**Net outgoing resources before investment**
**Net gains on investment assets**
Realised and unrealised investment gains
**Net income and expenditure**
Transfers between funds
**Net movement in funds**
**Fund balances brought forward**
**Fund balances carried forward**|**Expendable**
**Expendable**
**Unrestricted**
**endowment**
**restricted**
**income**
**fund**
**funds**
**fund**
**Total**
**2019**
**2019**
**2019**
**2019**
**£**
**£**
**£**
**£**
-
-
57,541
57,541|
|---|---|
||-
-
57,541
57,541|
||510,443
1,705
-
512,148
-
-
1,097,547
1,097,547
-
-
2,865,938
2,865,938
-
-
843,016
843,016
-
-
500,158
500,158
-
996,923
-
996,923|
||510,443
998,628
5,306,659
6,815,730|
||(510,443)
(998,628)
(5,249,118)
(6,758,189)
13,133,592
116,093
-
13,249,685|
||12,623,149
(882,535)
(5,249,118)
6,491,496
(5,321,944)
72,826
5,249,118
-|
||7,301,205
(809,709)
-
6,491,496
120,076,138
809,709
-
120,885,847|
||127,377,343
-
-
127,377,343|
20
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
|**3.**
**Grants and Donations**
**Academic Jewish Studies Programme**
European Association for Jewish Studies
World Union of Jewish Studies, Hebrew University of Jerusalem
Oxford Centre for Hebrew and Jewish Studies
Vilnius University
Universitat Autónoma de Barcelona
Università dell’Insubria
Institute of Jewish Studies, University of Bern
Dipartimento Di Studi Umanistici, Università del Salento
University of Southampton
University College London
University of Antwerp
Jagiellonian University
Palacky University
National Research University “Higher School of Economics”
University of Manchester
University of Oxford
University of Cambridge
University of Southampton
University of Oxford
Individual grants of less than £50,000
Earlier grants part-returned or cancelled
**Jewish Heritage Programme**
Museo Ebraico Venezia
Unione delle Comunità Ebraiche Italiane
Historical Archives of Belgrade - Yerusha Project
Jewish Museum in Prague
Musée d'Art et d'Histoire du Judaïsme
Raziskovalno Dokumentacijski Centre JAS
University of Wroclaw
Hebrew University of Jerusalem
Jewish Theological Seminary of America|**2020**
**£**
-
-
106,439
-
-
-
-
-
-
120,000
87,750
80,490
86,773
70,000
70,000
69,927
69,908
58,864
51,000
201,529
(30,699)
1,041,981|**2019**
**£**
155,400
132,000
90,000
75,000
70,000
64,000
55,896
55,000
50,777
-
-
-
-
-
-
-
-
-
-
297,574
(70,417)|
|---|---|---|
|||975,230|
||100,000
-
-
-
-
-
-
-
-|100,000
190,000
50,000
150,000
106,687
86,000
80,644
80,000
79,033|
21
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
## **3. Grants and Donations (continued)**
|AIM25
Jewish Community of Vienna
MEIS
Blavatnik Archive Foundation
University of Leeds
Judiska musset I Stockholm
Holocaust Survivors’ Friendship Association
Jewish Museum of Greece
Central Europe Centre for Research and Documentation
Germania Judaica, Cologne
Jewish Museum Hohenems
Association of European Jewish Museums
National Archives of Finland
American Jewish Joint Distribution Committee
Joods Historisch Museum Amsterdam
Central Archives for the History of the Jewish People
NIOD Institute for War, Holocaust and Genocide Studies
Institut Européen des Musiques Juives
Imperial War Museum
Budapest Holocaust Museum and Education Center
Universidade Nova de Lisboa
Ecole Supérieure Talmudique (Yechivas Chachmey Tsorphat)
Communauté Israélite de Genève
The Netherlands Institute for Sound and Vision
Tudasmenedzsmentert, Tudas alapu Technologiaert Alapitvany
Alapítvány a Szegedi Zsinagógáért
University of London
Individual grants of less than £50,000
Earlier grants part-returned or cancelled
**Jewish Education**
The Jewish Community of Stockholm
Union of Jewish Students of the UK and Ireland
Centropa Alapitvany
Reshet
Machon Kehilot in Cooperation with Hazon Inc
Educating for Impact | The Centre for Educational Technology
European Union of Jewish Students
Hillel International
Central Welfare Board of Jews in Germany|**2020**
**£**
-
-
-
-
-
-
-
-
-
-
-
-
-
150,000
100,000
94,000
89,140
80,000
75,000
78,900
69,920
67,166
61,600
56,655
54,000
50,900
50,000
513,371
-
1,690,652
-
-
-
-
-
200,000
120,000
120,000
60,000|**2019**
**£**
77,890
77,360
75,000
75,000
65,545
63,000
60,000
60,000
59,700
57,600
54,000
53,350
50,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
615,397
-|
|---|---|---|
|||2,366,206|
|||105,750
90,000
90,000
75,000
54,200
-
-
-
-|
22
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
## **3. Grants and Donations (continued)**
|Individual grants of less than £50,000
Earlier grants part-returned or cancelled
**National Library of Israel and other grants**
Gesher L’Europa
National Library
**Community Welfare**
Jewish Care
JDC
Educating for Impact
Pillar Foundation
JW3
Jewish Museum London
The Paperweight Trust
Jewish Women's Aid
Immanuel College (Kalms/Ronson)
The Work Avenue Foundation
Norwood
Individual grants of less than £50,000
Earlier grants part-returned or cancelled
**Restricted Fund – Friends of Bat Hanadiv**
Pillar Foundation
Board of Deputies of British Jews
Spanish and Portuguese Sephardic Community
World Jewish Relief
Jewish Book Council
Taylor-Schechter Genizah Research Unit
University of Cambridge
Kings College London
Individual grants of less than £50,000
**Total grants**||147,802
-
647,802
390,000
110,000
500,000
250,000
227,100
202,692
121,615
60,000
50,000
50,000
50,000
50,000
50,000
50,000
451,490
-
1,612,897
**2020**
**£**
-
-
-
-
-
-
-
-
-
-
**5,493,332**||249,019
-|
|---|---|---|---|---|
|||||663,969|
|||||390,000
60,000|
|||||450,000|
|||||-
-
-
-
-
-
-
-
-
-
-
-
-
-
**2019**
**£**
120,000
130,000
117,571
100,000
100,000
81,795
70,000
70,000
108,545
897,911
**5,353,316**|
||||||
||||||
||||||
23
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
## **4. Resources Expended**
|**a) 2020**
Investment Management
**Charitable Expenditure**
**_Unrestricted Fund_**
Academic Jewish Studies
Culture and Heritage
Education and Research
National Library of Israel
Community Welfare
**4. Resources Expended**
**b) 2019**
Investment Management
**Charitable Expenditure**
**_Unrestricted Fund_**
Academic Jewish Studies
Culture and Heritage
Education and Research
National Library of Israel
**_Restricted Fund_**
Friends of Bat Hanadiv|**Other**
**Investment**
**Support &**
**Admin**
**Governance**
**Total**
**Grants**
**Activities**
**Costs**
**Costs**
**Costs**
**2020**
**£**
**£**
**£**
**£**
**£**
**£**
524,230
23,664
547,893
1,041,981
10,045
-
97,431
14,951
1,164,408
1,690,652
323,595
-
186,544
28,626
2,229,418
647,802
326,878
-
90,267
13,852
1,078,799
500,000
-
-
46,306
7,106
553,412
1,612,897
-
-
149,374
22,923
1,785,194|
|---|---|
||5,493,332
660,518
524,230
569,922
111,122
7,359,124|
||Note 3.
**Other**
**Investment**
**Support &**
**Admin**
**Governance**
**Total**
**Grants**
**Activities**
**Costs**
**Costs**
**Costs**
**2019**
**£**
**£**
**£**
**£**
**£**
**£**
-
-
495,544
-
16,605
512,148
975,230
13,311
-
97,595
11,411
1,097,547
2,366,206
215,095
-
254,840
29,796
2,865,938
663,969
95,321
-
74,961
8,765
843,016
450,000
484
-
44,474
5,200
500,158
897,911
-
-
88,647
10,365
996,923|
||5,353,316
324,211
495,544
560,517
82,142
6,815,730|
||Note 3.|
Support costs have been allocated pro-rata to grants and other activities for each programme. Administration costs have been allocated based on the amount of time allocated to each activity.
24
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
|**5.**
**Administration costs include:**
Auditors remuneration
Depreciation
**6.**
**Staff Costs**
Wages and salaries
National Insurance
Pensions
Life Insurance|**2020**
**£**
16,468
3,147
**2020**
**£**
309,115
39,512
30,807
4,440
383,874|**2019**
**£**
15,540
1,129|
|---|---|---|
|||**2019**
**£**
298,796
38,331
29,364
5,322|
|||371,813|
The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the year was as follows:
|£120,001 - £130,000
Total benefits paid to key management personnel|Number
Number
1
1
**2020**
**2019**
**£**
**£**
139,309
131,415|
|---|---|
The average number of employees, calculated on an average head count basis, analyzed by function was:
|Charitable activities
Management and administration|Number
Number
5
5
1
1|
|---|---|
## **7. Related Party Transactions**
During the year, no trustees received payment in reimbursement of travel expenses (2019: £1,032 one trustee). The trustees did not receive any remuneration in the year (2019: £nil).
During the year the Foundation rented office premises from entities in which the President of the Foundation has interests. The rent, rates and service charges amounted to £51,250 (2019: £53,380). The property costs were reviewed by an expert and found to be reasonable and at normal market rates.
25
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
|**8.**
**Tangible Fixed Assets**
**Office furniture, equipment and motor vehicles at cost**
At 1st January 2019
Additions
At 31st December 2019
**Depreciation**
At 1st January 2019
Charge for the year
At 31st December 2019
**Net book value at 31 December 2020**
Net book value at 31 December 2019|**£**
39,562
8,456|
|---|---|
||48,018|
||36,387
3,147|
||39,534|
||8,484
3,175|
26
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
|**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**|**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**|**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**|**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**|**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**|**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**|**NOTES TO THE FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**|
|---|---|---|---|---|---|---|
|**_________________________________________________________________________________________**|||||||
|**9.**|**Investments**||||**31-Dec**|**31-Dec**|
||||||**2020**|**2019**|
||**Quoted securities**||||**£**|**£**|
||Market value as at start of year||||6,577,379|3,203,113|
||Investment purchases||||1,226,134|3,948,534|
||Disposal proceeds||||(5,913,695)|(1,030,392)|
||Net investment gains||||(445,232)|456,124|
||Market value as at end of year||||1,444,584|6,577,379|
||**Unquoted investments**||||||
||Valuation at start of year||||20,974,878|24,955,282|
||Investment purchases||||3,517,977|3,774,104|
||Investment distributions||||(2,917,845)|(8,824,153)|
||Trustees' revaluation||||2,461,906|1,069,645|
||Valuation as at end of year||||24,036,916|20,974,878|
||**Multi-asset funds**||||||
||Valuation at start of year||||103,799,531|95,607,486|
||Investment distributions||||(5,850,000)|(3,525,000)|
||Trustees’ revaluation||||13,192,543|11,717,044|
||Valuation as at end of year||||111,142,073|103,799,530|
||Quoted securities and unquoted investments||||25,481,500|27,552,257|
||Multi-asset funds||||111,142,073|103,799,530|
||Derivative financial instruments||||250,886|131,035|
||Sales for future settlement||||-|1,509|
||Cash and equivalents||||2,501,350|783,978|
||**Total investments**||||139,375,810|132,268,309|
||**Historical cost**||||81,394,384|86,535,434|
||||**Market**|**Value**|**Investment**|**income**|
||**M**|**k**|**2020**|**2019**|
**2020**|**2019**|
||**Overseas investments**||**£**|**£**|
**£**|**£**|
||Quoted securities||1,117,560|6,336,530|
10|70|
||Unquoted investments|23,440,107||20,287,746|
30,739|39,119|
||Multi-asset funds|111,142,073||103,799,530|
-|-|
||Derivative financial instruments||250,886|131,035|
-|-|
||Sales for future settlement||-|1,509|
-|-|
||Cash and equivalents||2,501,350|783,978|
11,692|18,352|
|||138,451,977||131,340,328|
42,441|57,541|
||UK quoted investments||327,024|240,849|
-|-|
||UK unquoted investments||596,809|687,132|
-|-|
|||139,375,810||132,268,309|
42,441|57,541|
||Management fee rebate||||-|-|
||Total income from investments||||42,441|57,541|
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
**_________________________________________________________________________________________**
## **10. Material Investments**
Investments material in the context of the market value of investments held at the balance sheet date:
|**11.**
**Creditors falling due in more than one year**
Grants payable
Within 1-2 years
Within 2-5 years
**12.**
**Reconciliation of historical cost assets and liabilities**
Fixed assets
Historical cost of investments
Net liabilities
Creditors falling due in more than one year
Expendable endowment fund – historical cost
**2020**
**£**
WHAM Endowment Fund
111,142,073|**2020**
**%**
79.74%||**2020**
**£**
932,835
26,000
958,835
**2020**
**£**
8,484
81,394,384
(3,207,077)
(958,835)
77,236,956
77,236,956
**2019**
**£**
103,799,532|**2019**
**£**
1,098,812
265,169
**2019**
**%**
78.47%|
|---|---|---|---|---|
||||||
|||||1,361,981|
|||||**2019**
**£**
3,175
86,535,434
(3,532,160)
(1,361,981)|
|||||81,644,468|
|||||81,644,468|
28
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
**_________________________________________________________________________________________**
|**13.**
**Allocation of Assets**
**a)**
**2020**
Fixed assets
Investments
Bank balances
Other current assets
Liabilities
Interfund balance|**Expendable**
**Unrestricted**
**endowment**
**income**
**fund**
**fund**
**Total**
**2020**
**2020**
**2020**
**£**
**£**
**£**
8,484
8,484
139,375,810
-
139,375,810
-
25,305
25,305
-
73,533
73,533
-
(4,264,750)
(4,264,750)
(4,157,428)
4,157,428
-|
|---|---|
||135,218,382
-
135,218,382|
Included in the reserves above is a revaluation reserve of £57,981,426.
**b) 2019**
|**2019**||
|---|---|
|Fixed assets
Investments
Bank balances
Other current assets
Liabilities
Interfund balance|**Expendable**
**Expendable**
**Unrestricted**
**endowment**
**Restricted**
**income**
**fund**
**Funds**
**fund**
**Total**
**2019**
**2019**
**2019**
**2019**
**£**
**£**
**£**
**£**
-
-
3,175
3,175
131,507,823
760,486
-
132,268,309
-
-
41,254
41,254
-
-
63,197
63,197
-
(833,312)
(4,165,280)
(4,998,592)
(4,130,480)
72,826
4,057,654
-|
||127,377,343
-
-
127,377,343|
Included in the reserves above is a revaluation reserve of £45,732,876.
29
## **ROTHSCHILD FOUNDATION (HANADIV) EUROPE**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)**
**_________________________________________________________________________________________**
**14. Financial commitments**
- As at the balance sheet date the Foundation had capital commitments in respect of investments in limited partnerships amounting to £10,167,086 (31 December 2019: £8,393,195). The Foundation also had commitments in respect of grant funding amounting to £200,000 at year end (2019: £650,000), which have not been recognised as liabilities in these accounts because they relate to funding offered for future years that is subject to a substantive annual review by the trustees.
30