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2021-03-31-accounts

Annual Report and Financial Statements

For the year ended March 2021

Annual Report and Financial Statements

Who we are

We are The London Community Foundation, the charity for London’s grassroots. We exist to help build strong and connected communities.

We do this by inspiring London’s generosity to invest in local charities and community groups.

London is a diverse city, in which complex social problems exist. We believe that communities often characterised as poor and disadvantaged are rich with ideas and assets. When these ideas and assets are maximised, small charities and community groups can make a big difference.

Since 2010, we have committed over £92.7m

in grants to support London’s grassroots organisations

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Contents

Chair’s statement 06
Chief Executive’s welcome 08
Our impact - Our COVID-19 story 10
Our impact - Violence Against Women and Girls
Grassroots Fund		 16
A year at LCF 18
Annual Report and Financial Statements
 20
Report of the Trustees 21

Legal and administrative information		 21

The year of COVID-19		 23

Objectives and activities
 25

Public beneft statement		 29

Strategic report		 29

Financial review		 33
Executive remuneration 39
Future plans for 2021/22 40

Our approach to fundraising		 42

Principal risks and uncertainties		 43

Statement of Trustees’ responsibilities
’ h		 44
Independent auditors report to te members
of The London Community Foundation		 45
Statement of fnancial activities 51
Summary income and expenditure account 52
Balance sheet 53
Statement of cash fows 54
Notes to the accounts 57

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Annual Report and Financial Statements

Chair’s statement

Resilience in a crisis

When COVID-19 struck the UK in March 2020, London’s local charities and community groups moved. Their agility and resilience meant they could quickly channel resources to reach the most vulnerable people on their doorsteps. At the same time, community foundations, including London, stood with them.

Our impact across London

£22,598,000

awarded to charitable organisations

1,325

There is no other network of philanthropic foundations that in times of crisis can connect donors to the greatest need. So often local charities and their people are intimately connected to and trusted by the communities around them. To be impactful LCF relies on its donors, the people for whom we are a trusted vehicle and voice to guide their philanthropy. And to be purposeful, LCF looks to civil society organisations seeking funds who allow us to amplify the needs of London through their vital work.

COVID-19 demonstrated the incredible value of often under-the-radar grassroots services as the bedrock of our communities. The mosque delivering food parcels to elderly people in its neighbourhood, to the children’s nursery providing baby supplies to mothers at risk, each one pivoted its model in a time of crisis and

utilised its local knowledge and connections to meet local need. I know I speak on behalf of the team and Board at LCF when I say that it is has been an honour and privilege to support their work. They are a credit to our wonderful city called London.

Our mission now is to look forward and challenge ourselves to do more to help tackle the disadvantage and inequality that COVID has laid bare in London. During this year, many organisations – including LCF – have been challenged to do more to create greater equity in how we work, who we represent and where power lies. These are challenging but necessary conversations for the year ahead to ensure organisations like LCF are as impactful as possible for London.

I am beyond proud and grateful to the team and Board for their commitment, insights and generosity of spirit during this time. Despite their personal challenges and uncertainties during COVID-19, they stepped up for London and its people.

Russell Prior

Chair of The London Community Foundation

grants awarded

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Chief Executive’s welcome

Local communities have the solutions

There are simply no superlatives that could do justice to the last 12 months of LCF: as a funder, a partner, a team, and an advocate of London’s diverse civil society.

Supporting London’s

grassroots

£185,752

was the median annual income of organisations supported

29%

With incredible commitment, drive and focus, the LCF team resiliently kept pace with the scale of fundraising and funding to London’s communities, untold in LCF’s history.

I know I speak on behalf of the LCF team in saying how grateful we are to the team at London Funders for their expert collaboration and convening, bringing together funders from across the capital to respond to COVID-19 in the London Community Response.

Demand for food, escalating domestic violence, desperate refugees – at times the volume of applications, reflecting London’s need – felt utterly overwhelming. However, sharing the strain – sometimes the anxiety – the skills, insights and learning with funding friends, made the challenge more manageable. To be part of a whole London funding response was an absolute honour.

Partnering with the Muslim Charities Forum (MCF) during this year was insightful, challenging and positive, despite COVID-19. I am grateful to Fadi Itani, CEO of MCF, and his team, for their support to LCF and giving us the opportunity to work with them. Charitable membership bodies like MCF may be national organisations based in London, but unless London funders – like LCF – support them, we threaten the great diversity of this country’s civil society. Looking forward, London won’t build and sustain a diverse and resilient charitable sector without investing in all parts that help it function, including those infrastructure organisations representing diverse communities.

To the public, a community foundation is a little-known concept. But at times of crisis, desperate emergency and local need, community foundations are so often a vital vehicle of response.

It is a well-recognised position that so many of LCF’s donors and partners recalled to me during this year. A position only made possible by local charities working at the heart of their neighbourhoods, the generosity of our donors and the incredible expertise of our teams. A real collaboration, for without one part it can’t happen.

Despite over doubling our total funding to London’s civil society during this year, we managed our cost base effectively to be able to end the year with a modest contribution to our free reserves.

This report looks back at our year of COVID-19 and is filled with the stories and statistics of the Charity’s work. But behind it are people. I will be forever grateful for the resilience, mutual support, and commitment of the LCF team, and the Board, shown during COVID-19. Thank you.

Kate Markey CEO

of organisations we supported had less than 5 employees

£16,952

was the average grant

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Annual Report and Financial Statements

Our COVID-19 impact in numbers

Our impact

Our COVID-19 impact story

“The lockdown came very unexpectedly and hit families hard. COVID-19 brought us into contact with a significant number of families who we would not normally have had contact with. Suddenly we had those who had lost jobs, were on zero-hours contracts, had no recourse to public funds or ran a small business and overnight had no income and no way of supporting themselves.”

Noni, Growbaby, COVID-19 grantee

This is a story of collaboration when it was needed the most. A year ago, 67 funders came together for the first time to collaborate in their response to COVID-19 – the London Community Response, organised by the membership body, London Funders.

Partnership working went beyond the funding. Importantly, the London Community Response partnered with the vital equalityled infrastructure organisations representing different communities in London – responsible for informing and challenging funders like LCF to maximise equity through our funding.

One year later, £57m had been committed in over 3,300 grants through a central grants portal to ease the burden on charitable organisations seeking funds across London’s boroughs. This was a ground-breaking funder collaboration – with investment moving from crisis response to building towards the recovery and renewal of the Capital’s civil society.

They were Ubele, the Council of Somali Organisations, London Gypsies and Travellers, Inclusion London, the Women’s Resource Centre, and LGBT+ Consortium. As a contributor to the London Community Response, we are supremely grateful to them for their work.

£13.4m 45% COVID-19 of total funds funding awarded committed to London’s civil support BME society communities 21% of funds committed 1,019 to domestic grants awarded violence and abuse services 92% 11% of supported of funds committed organisations to support womenhad an income led organisations

92% of supported organisations had an income of less than £1m

32% of funds spent on emergency food

4.2

01 02 03 04 0

was the average number of days between receiving an application and awarding a grant for the first month of lockdown

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Our impact

The response of the charitable organisations working in these fields has been humbling and inspiring in equal measure.

The London Community Response focused on key priority areas developed from knowledge shared from the frontline and data from London’s boroughs. Priority areas included: food, people at risk, homelessness, advice, domestic violence and abuse, children and young people, infrastructure, and arts and culture.

London’s generosity moved into action, both in giving to LCF’s own appeal and releasing existing or new funds to us. At LCF we were moved by the speed, flexibility, and desire to support London’s grassroots from individual donors, corporate partners (new and longstanding), housing associations, the Mayor’s Office, and many more.

Throughout the pandemic, applications to these categories told a story of how the crisis was unfolding for London’s communities: lockdowns and their impact on domestic abuse; children’s vulnerability with interrupted education and the inability to socialise and grow together; furlough and the desperate need for advice and guidance.

“Our COVID Charitable Fund was set up to help people and communities affected by the pandemic. We were delighted to partner with The London Community Foundation to direct some of the Fund to grassroots organisations helping people across the Capital who were affected by issues including food poverty, mental health, disability and domestic violence. The LCF team used its knowledge and experience to identify those organisations whose beneficiaries were most in need, so we could start making a difference as quickly as possible.” Kathryn Van Der Kroft, 3i Group, COVID-19 donor

At LCF we were moved by the speed, flexibility, and desire to support London’s grassroots from individual donors, corporate partners (new and longstanding), housing associations and the Mayor’s Office.

£57m

in funds committed by the London Community Response

3,300

awarded through the central London Community Response portal

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Annual Report and Financial Statements

Our impact

“What began as an initial crisis response to the pandemic has evolved into more than just a foodbank: people have made friends, accessed essential support, gained paid work, taken part in training, and even done online dance exercise classes together. The foodbank has become a vital source of social connection and a space where neighbours can support each other, contributing to improved mental health, tackling social isolation, and highlighting the resilience and kindness within the community. Now the foodbank is almost exclusively run by members of the local community, most of them volunteers.”

Throughout the pandemic, supporting food banks, charities and religious institutions pivoting to distribute food and essential goods remained a constant.

£4.2m

David, Wheely Tots Foodbank, COVID-19 grantee

was dedicated to food

As the pandemic struck, LCF supported the local civil society by signing #WeStandwiththeSector, a statement from across London’s funding sector and beyond committing to be flexible, responsive, and equitable with charities holding or receiving funds from them. In turn, as a Donor Advised Fund model, we are proud of how our donor partners gave us the flexibility to direct funds where we saw the most need. Their trust in LCF is precious to us.

Alongside our wider COVID-19 work, LCF was pleased to initially support the Evening Standard’s fundraising work of its Food for London Now Campaign. In the end this incredible campaign, backed by hundreds of Londoners and companies in the Capital, raised over £10m for the Felix Project charity.

Throughout the pandemic, supporting food banks, charities and religious institutions pivoting to distribute food and essential goods remained a constant. Of the funds we committed, over £4.2m were dedicated to food.

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Our impact

Violence Against Women and Girls Grassroots Fund

Funding and support

21%

“The funding process was excellent. The application process was user-friendly, and we felt the funder was empathetic. Often it is the case that the skills we bring to the melting pot are unaccounted for, but it felt that we were in sync with the assessor.”

Rani, DAWN, VAWG Grassroots Fund grantee

of our emergency funding went to community organisations supporting survivors, or those at risk, of violence against women and girls

£3m

When the COVID-19 pandemic hit, many of London’s most vulnerable citizens found themselves even more at risk than before. Ongoing lockdowns compounded isolation, reduced access to support services and further facilitated the opportunity for domestic violence and abuse. Many women and girls found themselves confined with their abuser(s), and grassroots organisations that were supporting survivors, or those at risk, of violence against women and girls (VAWG) struggled to secure funding, while simultaneously experiencing greater demand for their services.

We provided 21% of our emergency funding to charitable organisations to support them to meet the additional demands for services. In November we restarted work on The Mayor’s Office for Policing and Crime (MOPAC) VAWG Grassroots Fund in partnership with The Social Innovation Partnership (TSIP).

The Fund was created to support the resilience of the existing VAWG sector in London, in particular organisations supporting women and girls from marginalised groups. In February we committed £3m to 41 organisations.

committed to 41 grassroots organisations through the MOPAC VAWG Fund

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Annual Report and Financial Statements

A year at LCF

April 2020

£1m is raised and 100 grants awarded in first 3 weeks for our COVID-19 response .

Our partner Grosvenor cornerstones our Coronavirus Appeal with a £250k donation. As part of the London Community Response Wave 1 we are rapidly providing £5k grants for emergency food provision and we launch Wave 2 to fund communities’ immediate needs.

May 2020

Our partner Deutsche Bank awards £120k to 4 community organisations addressing the root causes of homelessness through their Deutsche Bank Opportunity Fund.

June 2020

LCF marks £4m committed in funds , thanks to the generosity of our donors, to support community organisations through the crisis. The UK reaches 100 days since first lockdown.

Our partner Evening Standard’s Dispossessed Fund , with support from Martin Moshal, awards 4 schools over £731k to tackle school exclusions through a new ground-breaking pilot Excluded Initiative.

July 2020

£5m is raised for our COVID-19 response , thanks to the generosity of our donors, to support community organisations through the crisis. As part of the London Community Response, we begin Wave 3 of our COVID-19 response with a focus on supporting community organisations’ running costs as lockdown continues.

Our partner SEGRO awards £194,030 to 6 community organisations supporting people’s employability skills through their SEGRO Centenary Fund.

August 2020

We begin a new strategic partnership with the Muslim Charities Forum aimed at hearing, recognising, and addressing the needs of Muslimled charities accessing funding.

Our partner Morgan Stanley commits £300k to support BAME-led community organisations through the COVID-19 crisis.

September 2020

Our partner Peabody launches a new Young People’s Fund, a youth-led initiative to help community organisations tackle violence affecting young people.

We publish findings from the Evening Standard Dispossessed Fund Save London Lives Initiative that supports community groups tackling violence affecting young people. 61% of grantees secured additional funding as result of being part of the initiative.

October 2020

Our partner 3i Group donates £200k to support our COVID-19 response with a particular focus on supporting mental health, disabled people, BME communities and domestic violence.

November 2020

We begin Wave 4 of our COVID-19 response prioritising support for organisations led by and for marginalised communities and smaller organisations with a turnover up to £1m.

Our partner JPMorgan Chase commits £2m to a new fund to support BME-led community organisations and infrastructure partners working in employability, enterprise, and financial health.

December 2020

£10m raised and 1,000 grants awarded as part of our COVID-19 response .

We welcome 4 new Trustees to our Board, building our commitment to increase representation of London’s diverse communities.

LCF distributes the Government’s Big Night In funds via our partnership with UKCF and National Emergencies Trust (NET). The Muslim Charities Forum launches its partnership report at London Funders’ Festival of Learning.

January 2021

We begin Wave 5 of our COVID-19 response focusing on supporting community organisations to continue to provide food and to support their organisational resilience.

February 2021

We sign the #FlexibleFunders pledge led by London Funders and the Institute of Voluntary Action Research committing us to adopting even more open and trusting practices in support of London’s community organisations.

March 2021

£13m raised for our COVID-19 response .

We announce the MOPAC Violence Against Women and Girls Fund grantees following codesign and consultation with grassroots charitable organisations working to tackle the issue.

Our partner Evening Standard awards over £600k to community organisations, working to improve the wellbeing of children and young people affected by the fire, through the final round of The Grenfell Children and Young 19 People’s Fund .

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Annual Report and Financial Statements

Financial statements

Annual Report and Financial Statements For the year ended March 2021

Report of the Trustees

The Trustees present their Annual Statutory Report together with the Financial Statements of the London Community Foundation for the year ended 31 March 2021. The Report has been prepared in compliance with Part 8 of the Charities Act 2011. The Financial Statements have been prepared in accordance with the accounting policies set out in note 1 to the Financial Statements and comply with the charitable company’s Memorandum and Articles of Association, applicable laws and the requirements of Accounting and Reporting by Charities: Statement of Recommended Practice

applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

The Trustees’ Report is also a Directors’ Report for the purposes of the Companies Act 2006 and other company legislation and meets the requirements for a Strategic Report as set out in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013.

Legal and administrative information

Name of Charity:

The London Community Foundation (LCF)

Status:

Charity registered in England and Wales – number 1091263

Company limited by guarantee registered in England & Wales – number 4383269

Charity No. 1091263 Company No. 4383269 londoncf.org.uk

Principal office and registered address: Unit 1.04, Piano House 9 Brighton Terrace London SW9 8DJ

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Financial statements

Trustees:

The trustees serving during the period of report and up to the date of approval were:

Russell Prior Chair of the Board

Gaynor Humphreys

Genine Whitehorne (from December 2020)

John Hume

Chair of Programmes and Impact Committee

Natalie Creary (from December 2020)

Paul G Cattermull (to October 2021)

Sanjay Mazumder Chair of People Committee

Scott Greenhalgh Chair of Supporter Engagement Committee (from December 2020)

Timothy C Ingram Chair of Audit, Risk, and Investment Committee (to September 2021)

Veesh Sharma (from December 2020)

Nicholas T J Reid (until December 2020)

Rosanna M Machado (until December 2020)

Principal officers / Senior Management Team:

The serving principal officers on the date of approval of this report were:

Kate Markey: Chief Executive Officer. Also, Company Secretary.

Kelly Rust: Director of Grants and Impact

Laura Perkins: Director of Development and Communications (from January 2021)

Auditor:

Buzzacott LLP 130 Wood Street London EC2V 6DL

Legal Advisors:

Bates Wells & Braithwaite London LLP 2-6 Cannon Street London EC4M 6YH

Stone King LLP Boundary House 91 Charterhouse Street, Barbican London EC1M 6HR

Bankers:

CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4J

NatWest

504 Brixton Road London SW9 8EW

CCLA Investment Management Limited – Cash Deposit Accounts Senator House 85 Queen Victoria Street London EC4V 4ET

Investment

Managers:

CCLA Investment Management Limited – Investment of Endowment Senator House 85 Queen Victoria Street London EC4V 4ET

The year of COVID-19

Throughout the period of the COVID-19 pandemic that this Annual Report covers, the Board and leadership of LCF instigated both formal and responsive engagement and communication to ensure emergency and normal business (where this continued) operations of the Charity were maintained effectively.

The year saw unprecedented incoming funds from LCF’s existing and new donors, including the Charity’s partnership with UKCF and the National Emergencies Trust, as well as longstanding donors.

The LCF Trustees continue to review the potential long-term impact of COVID-19 on the Charity’s sustainability, including forecast lost Donor Advised Funds not related to COVID-19, performance of its own and donors’ endowments, and cost management. This is alongside the Trustees’ oversight of health and safety and wellbeing of the LCF team.

Virtual working for the LCF team continued throughout the period of this Annual Report with the Board and Executive maintaining specific focus regarding wellbeing, health and safety, support and work/life flexibility. Like many charities, and organisations, our lessons learned during this period for our people will inform how we move forward.

Risk controls remained a key focus throughout the year given the scale of funds being processed by the Charity, as did our digital requirements. The Board and Sub-Committees maintained a significant focus on LCF’s COVID-19 operations and impact, alongside the ‘normal’ business that continued.

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Financial statements

Objectives and activities

Our vision is of a strong and generous London where residents, business, government, and civil society are inspired to act for the benefit of all who live in their city, leading the way in social action and philanthropic activity.

Our mission is to inspire the Capital’s generosity and invest in frontline grassroots organisations to help build strong and connected communities.

  1. Other exclusively charitable purposes in the United Kingdom and elsewhere with a preference for those which are in the opinion of the Trustees beneficial for the Area of Benefit.

The ‘Area of Benefit’ for LCF is the London Boroughs and the City of London.

Our core activities are:

London is a diverse city, in which complex social problems exist. We believe that communities often characterised as poor and disadvantaged are rich with ideas and assets. When these ideas and assets are maximised, small charities and community groups can make a big difference.

The London Community Foundation is not a traditional grant-making trust or charitable foundation. Our role is to inspire corporate and individual philanthropy and public bodies to support the Capital’s local charities and community groups.

LCF’s objectives, as defined in the Memorandum and Articles of Association are:

The promotion of any charitable purposes for the benefit of the community in the ‘Area of Benefit’ and the advancement of education, the protection of good health both mental and physical, the relief of poverty and sickness and the provision, in the interests of social welfare, of:

  1. Facilities for recreation or other leisure time occupation with the object of improving the conditions of life of the persons for whom the opportunities and facilities are primarily intended.

  2. Funding predominantly small charities and community groups that do not attract mass public support.

We strive to make our grant-making process proportionate and accessible to small organisations. LCF’s ‘Grant-making Policy and Procedures’ sets out the guiding principles, process for setting fund criteria, and procedures that are common to all of LCF’s funds and programmes.

We remain accountable to the sector through regular grantee and non-grantee engagement to ensure our funds are best informed by their needs. We work to build a strong evidence base for small charities, their operating environments and their funding needs to demonstrate how best donors can help.

  1. Amplifying the needs of London to inform local individual and corporate philanthropy.

We do this by promoting the work of local charities addressing the Capital’s needs and building on its community strengths. This includes thought leadership and engagement events across London’s philanthropic landscape, private banks, and wealth advisory and intermediary services.

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Financial statements

Through our work, connections and knowledge, we help donors get close to the issues affecting London and build a compelling case for how local charitable organisations can help.

3. Fund management and grantmaking services:

Through our Donor Advised Fund (DAF) model, we provide professional investment services to donors setting up and managing permanent and expendable endowment funds. LCF works with a third-party investment house to provide this service. We also manage public sector funds on behalf of local and central government departments.

Donors benefit from LCF’s established and professional grant-making services, including fund set-up, due diligence, assessment, grant deployment, portfolio management and impact reporting. We also work with the wider wealth advisory market to inform and support how they engage their clients’ giving.

As of 31 March 2021, LCF held £23,575,000 (2020: £19,597,000) in endowment funds, the variance due to market conditions prior to the financial year due to COVID-19.

Endowment funds held have been raised primarily through:

foundations), with the support of initiatives like the Revitalising Trusts Initiative by the Charity Commission. LCF can honour the original objectives and/or work with Trust representatives to revive them for modern day needs. Trusts may be transferred if they have become dormant or ineffective, or if Trustees feel that LCF will help to increase the impact of their charitable assets.

Structure, governance and management

LCF is a Company Limited by Guarantee (CLG) and a Registered Charity governed by its Memorandum and Articles of Association.

The Directors of the charitable company are its Trustees for the purposes of charity law and throughout this report are referred to as the Trustees.

Appointment, induction and training of Trustees

As set out in the Articles of Association, new Trustees are appointed by the Trustees in office. There are no powers of appointment or co-option by any external organisation. New Trustees are appointed through an external recruitment process, including nomination by other Trustees, recommendations from respected individuals, engagement with LCF through professional networks and community engagement. The People Sub-Committee of the Board is responsible for nominations and makes recommendations to the full Board of Trustees on appointments.

On 31 March 2021 LCF had 10 Trustees (maximum 18) with the Board agreeing its optimal number is between 10 and 12. This is supported by a Skills

Prior to appointment, prospective Trustees meet with the Chair and CEO, and are interviewed by a panel of Trustees, as well as meeting key staff where appropriate. To provide an inclusive and supportive recruitment experience, all shortlisted candidates receive further information and a presentation from members of the LCF team with the opportunity to follow up with questions. New Trustees receive key induction information including Memorandum and Articles, latest statutory and management accounts, strategy, impact reports and other literature. Introductory briefings with the CEO and key staff are provided, and all Trustees are asked to serve on at least one Sub-Committee.

Structure

The Trustees meet quarterly and, between these meetings, business is conducted through the four Sub-Committees. These are Programmes and Impact, Audit, Risk and Investment, People, and Supporter Engagement.

The Programmes and Impact Committee meets four times a year and includes a minimum of two Trustees to be quorate. It has ultimate authority, delegated by the Trustees, to authorise grants managed by LCF’s Programmes Team. The Committee also has the power to delegate authority to approve grants to senior staff where appropriate. Delegated authority currently sits with the Senior Management Team (SMT) for standard risk grants under £50,000 and Middle Management along with SMT under £25,000.

The Programmes and Impact Committee is responsible for overseeing:

The Trustees and team wish to express their sincere appreciation for the expertise and knowledge of the civil society infrastructure organisations and individuals who have helped to inform, challenge, and shape our grant making over the last year. This ensures our work and advice to donors is rooted in and shaped by the experience of London’s communities. Despite the COVID-19 crisis, this year we have successfully launched the Muslim Charities Forum, the Grenfell Young People’s Fund Panel, the Peabody Young People’s Fund Panel, the MOPAC VAWG Fund Expert Panel and the VAWG grassroots sector.

The Audit, Risk and Investment Committee meets four times a year and comprises a minimum of two Trustees to be quorate. It is responsible for overseeing LCF’s financial resilience and performance and investments risk & assurance, property and health and safety. The Committee is responsible for:

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Financial statements

The People Committee meets quarterly and at other times as required. The Committee is responsible for:

The Supporter Engagement Committee meets quarterly and at other times as required. The Committee is responsible for:

Day-to-day operation of LCF is the responsibility of the Senior Management Team (SMT) and the Middle Management Team (MMT). The average number of team members employed during the year using a full-time equivalent basis was 19 (2020:18).

The SMT reports formally to the Board of Trustees every quarter on progress against strategic objectives, financial and impact performance as well as the annual work plans of the Board SubCommittees. It also presents proposals on forward strategy.

LCF is a quality-accredited member of UK Community Foundations (UKCF), the membership body that supports and promotes community foundations in the UK. There are 46 community foundations serving most of the UK population. The network of community foundations gives grants totalling around £100 million annually (2020/21 increased to almost £175 million due to COVID-19 related programmes). This makes us, collectively, one of the UK’s largest grant-giving organisations. Over the past 20 years, donors have given over £1 billion to and through community foundations to address local need.

LCF does not have any branches or subsidiaries other than the Pedlar’s Acre Trust and the Beaufoy Trust, both of which hold permanent endowments and have LCF as their sole Trustee.

Public benefit statement

  1. The aims of the organisation continue to be charitable

Trustees of a charity have a duty to report in their Annual Report on their charity’s public benefit. The Trustees of LCF have considered the public benefit requirements which are explained on the Charity Commission website.

  1. The aims and the work done give identifiable benefits to the charitable sector and both indirectly and directly benefit individuals in need

The remainder of this report sets out LCF’s objectives, and report on the activity and successes in the year to 31 March 2021, as well as explaining the plans for the current financial year. LCF’s work benefits a range of local London charities and community groups and their beneficiaries.

  1. The benefits are for the public and are not unreasonably restricted in any way and certainly not by ability to pay; and

  2. There is no detriment or harm arising from the aims or activities.

The Trustees have considered this matter and concluded that:

Strategic report

2020/21 objectives, achievements and performance

through deploying our knowledge and expertise of the Capital’s grassroots organisations to reach those most in need.

COVID-19 funding to London’s local civil society during the year was directed by a series of Strategic Grant Making Principles established at the start of the pandemic. During the uncertainty these helped the Board monitor the Charity’s impact.

Like all charities, LCF’s strategic objectives for the year were radically impacted by COVID-19. As the pandemic struck, plans were quickly reviewed and – as much as practically possible in the uncertainty – reprioritised by the Board and Executive. Together, across a series of agile Board Meetings and Sub-Committees, strategic priorities were monitored regularly throughout the period. However, our core purpose remained true to inspire donors to give to London’s communities. We did this

LCF Governance during COVID-19:

Despite the challenges of COVID-19, LCF continued to build on the diversity, expertise, and experience of its Board of Trustees. Reflecting LCF’s mission, broad strategic networks and operating model,

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Financial statements

LCF recruited Trustees with experience of London’s local authorities, charitable frontline and infrastructure sector, governance and assurance, and philanthropy.

LCF and our Donors during COVID-19:

LCF’s donors and partners responded incredibly to support the Charity’s COVID-19 response. Existing and new donors alike rose to the challenge:

LCF’s COVID-19 funding sources during 2020/21:

· 20% corporate

The National Emergencies Trust (NET), the newly created disaster appeal which found its first crisis, was a significant donor. NET worked with UKCF, to distribute funds nationally, with LCF distributing, excluding DCMS funding, £5.3m across 506 grants. Funds were distributed by a NET Allocations Committee based on national data about COVID-19 and channelled through UKCF to the local community foundation. The model enabled unprecedented collaboration, agility and learning across the UKCF network that has and will endure beyond the immediate pandemic.

LCF and our COVID-19 grant making:

The Charity collaborated with over 60 other funders to create the London Community Response (LCR), a central funding portal to serve the Capital’s civil society during COVID-19. Priorities for – and design – of funding were based on intelligence gathered on need from local authorities, funders, frontline charities, and infrastructure partners throughout the pandemic. There were five waves of funding collectively telling the story of how COVID-19 unfolded in the Capital and touched the lives of Londoners. Eligibility criteria, restrictions and reporting requirements were agreed across funders. LCF could deploy either COVID-19 Appeal or segregated emergency funds provided by donors and partners by accessing grant applications from the LCR portal, and processing them according to COVID-19 governance procedures agreed by the Board of Trustees.

In total LCF committed £13.4m of COVID-19 funds to the London Community Response. We assessed 1,599 applications, funding 1,019 as a result. The average number of days between receiving an application and awarding a grant for the first month of lockdown was 4.2.

In summary, the LCR Waves were:

Wave 1: Launched in late March 2020 to provide small grants of up to £5k for food and emergency provision delivered by charitable organisations.

Wave 2: Launched in April 2020, the crisis response continued to provide grants of up to £10k for

charities to meet immediate need in communities and meet additional short-term staff costs or equipment. Delivering Differently provided grants of up to £50k to support charities pivoting to deliver services differently and digitally to reach beneficiaries.

Wave 3: Launched in June 2020 to provide small grants of up to £10k or large grants of up to £50k to cover up to six months of operating costs for charitable organisations in the Capital. Priority was given to charitable organisations led by and for marginalised communities most affected by the COVID-19 crisis (particularly BME, deaf and disabled, LGBT and women-led groups) and grassroots organisations (typically with a turnover of under £1m per annum).

Wave 4: Launched in November 2020, grants of up to £10k were made available to cover charities’ running costs for up to six months. As with Wave 3, priority was given to charitable organisations representing and supporting marginalised communities and grassroots organisations.

Wave 5: As the country went back into lockdown, Wave 5 in January 2021 provided further Crisis Response grants of up to £10k to support food and essential items, as well as key charitable services like mental health and domestic abuse services.

LCF and our financial performance during COVID-19:

Managing high volumes of COVID-19 funding was a significant departure from LCF’s model as

a Donor Advised Fund charity. This meant when working on the LCR, LCF was receiving applications and committing funds to one single cause. Funds were either pooled into LCF’s COVID-19 Appeal or segregated behind the scenes – all supporting the Charity’s COVID-19 response. So, despite committing almost three times the value of funds in 2019/20, LCF was able to manage its cost base effectively during this unpredictable period. £348k of income was deferred into the following year. The organisation ended the year with a surplus. With a significant proportion of LCF’s donors giving annually, this will aid the Charity as – like most organisations reliant on fundraising – it faces some uncertainty moving into 2021/22.

Transparency and accountability:

With unprecedented funds committed during this COVID-19 year, LCF was committed to increasing transparency. In June, we launched our giving data on 360 Giving, the open data source for grant making. We will continue to develop our reporting on the platform next year.

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Financial statements

Financial review

Equity, diversity and inclusion:

This is the second year that LCF is reporting diversity data on its Board and team in its Statutory Accounts. This is not a statutory requirement, but the Charity is committed to increasing the diversity of its team and Trustees and reporting on its performance to that end. This work is a key part of LCF’s Equity, Diversity, and Inclusion (EDI) project which was launched during the year. This is a project that over time will span all aspects of our work: how we commit, raise and invest funds, support donors and operate as an organisation. LCF is committed to learning from and progressing its EDI commitments, acknowledging its position as a funder and, for the Board and Executive, as leaders within the charitable sector.

Digital improvements:

By need and necessity, LCF progressed its digital improvement work significantly during COVID-19. Like all organisations, the Charity pivoted quickly to operating digitally and the impact on time, cost and easing administrative pressures on the team has been substantial. As always as an intermediary, our considerations on digital work always include our team, our donors and organisations seeking funding. We will continue this work into 2021/22.

Lessons learned:

Importantly every aspect of our work during this COVID-19 year has brought valuable lessons and reflections for LCF. From grant making, donor engagement, virtual working, and governance – LCF has changed significantly during this year. We will use these reflections to help inform a significant change programme (Resetting LCF for the Future) as we move into 2021/22 to ensure we are the most impactful and effective we can be.

Income

The total income for the year was £21,474,000 (2020: £9,796,000). Donations came from a range of donors including companies, central and local government, individual philanthropists, and social sector organisations. The breakdown is as follows:

Expenditure

The Statement of Financial Activities shows our expenditure analysed between the costs of raising funds and the cost of our charitable work, with support costs (including governance costs) being allocated across each.

‘Charitable activities’ represents all grants made to beneficiary organisations and individuals, as well as expenditure on capacity building and evaluation related to some of LCF’s funds, and larger initiatives to support London’s local civil society. It also includes the cost of running grant-making operations and associated support costs. Grants payable in year totalled £18,432,000 (2020: £8,905,000), an increase of 107% because of COVID-19 funds raised and distributed to support local charities responding to the crisis.

LCF’s main cost is our team, which represented 60% of the Charity’s expenditure (excluding grant awards) (2020:60%). Staff costs are allocated to the costs of raising funds and charitable activities based on time spent. Support team costs are allocated in a similar manner. Team costs, which include employees and contractors, have increased to £962,000 (2020: £895,000) an increase of 7%. The Charity’s headcount increased slightly to 19 average full-time equivalent staff (2020: 18).

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Cash position

LCF’s cash balances (excluding any cash held by the investment managers) has increased to £8,500,000 (2020: £5,195,000), largely due to the receipt of an increased amount of restricted funds and investment income. Cash held by LCF mainly represents restricted funds held for the purposes of grant making and, of this balance, £7,933,000 represents restricted and endowment funds (2020: £4,703,000). LCF works with donors to set a timetable for spending restricted funds throughout the year. Various factors determine the length of time funds are held in cash, including the needs of the community and grant applicants, as well as internal resources and planning.

Of the £796,000 net general reserves (2020: £704,000), £903,000 is a cash balance representing unrestricted funds (2020: £442,000) and £303,000 is invested (2020 £251,000), leaving other net liabilities of (£410,000) (2020: net assets £11,000). The increase in unrestricted net liabilities is due to an increase in deferred income as LCF continues to build its long-term financial resilience. The invested funds, which are held under the Reserves Policy, are not expected to be needed in the short term and can be invested to generate a higher return than current interest rates allow. Please refer to note 12 for further context.

Diversity of income and financial sustainability

Our business plan sets out that no one programme should contribute more than 20% of the Charity’s income or 35% of the Charity’s grant making in any year. During the exceptional year of COVID-19 funding, this target was not met; 59% of the Charity’s income and 77% of grants awarded were part of our COVID-19 programme to support London’s local charities during the crisis.

Investments

LCF’s investment managers are CCLA Investment Management Ltd. LCF has set a clear investment policy which is driven by the Charity’s principles. This policy is reviewed annually and is consistent with the Trustees’ responsibilities under the Charities Act.

In setting the performance criteria against which the performance of the investment portfolio is managed, the aim is to achieve long-term capital and income growth, whilst also providing a reasonable level of income annually. The investment managers’ performance and the degree of risk considered appropriate for LCF’s investments are reviewed each year.

The total value of funds invested, including cash held by investment managers for re-investment, amounted to £24,560,000 (2020: £20,786,000). The market value movement in the year represented an unrealised loss, slightly offset by sales of investments

for grant-making purposes during the year. The portfolio at CCLA is invested in the investment managers’ own pooled funds with underlying holdings in a broad spread of international ‘blue chip’ equities, fixed income stocks and alternative investments. The total investment performance of the funds and the peer group comparison are shown below.

LCF takes a long-term view and measures the longterm performance against the ARC Steady Growth benchmark. The benchmark is a standard indicator of relative performance used by the investment industry and charities. CCLA provides quarterly reports and presents to the Sub-Committee at least once a year whilst also responding to specific requests during the year.

LCF’s Audit, Risk and Investment Sub-Committee is responsible for monitoring investment performance.

Total investment
performance in
year to 31 March
2021 (net of fees
and costs)		 Total investment
performance in
year to 31 March
2020 (net of fees
and costs)		 Total investment
performance
annualised three-
year return to 31
March 2021 (net of
fees and costs)
CCLA - COIF Investment
Fund		 24.31% (0.05%) 11.49%
ARC Steady Growth
(peer group comparison)		 24.01% (7.88%) 6.58%

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Reserves policy

LCF holds the following types of reserves:

Endowment reserves comprise capital sums donated under the restrictions that they are invested, and that the investment return is available for expenditure in accordance with the donors’ strategies for giving. Within the category of endowment are two subcategories: expendable and permanent endowment. A reasonable percentage of capital amounts of expendable endowment may be spent if the Trustees decide to do so, though the overall endowment is intended for enduring impact. The capital of permanent endowment may not be spent. Endowment reserves at 31 March 2021 stood at £23,575,000 (2020: £19,597,000), the increase of £3,978,000 (or 20%) is due to investment gains at year-end.

Restricted reserves comprise funds available for expenditure in accordance with the donors’ strategies for giving. Donations are typically spent over 1 to 2-year periods, however LCF encourages its donors to open multi-year funds to support the ongoing resilience of charitable organisations, which in some cases leads to the build-up of restricted reserves.

Restricted reserves at 31 March 2021 were £5,300,000 (2020: £3,695,000). The increase is due to the timing of grant programmes.

Designated reserves are funds set aside from unrestricted reserves at the discretion of the Trustees.

During the year 2018/19, Trustees approved the designation of a £50,000 fund for LCF’s digital investment programme to cornerstone a fundraising effort for the total initiative. At 31 March 2021, no funds had been spent, and the balance remains at £50,000, out of a total designated fund balance of £64,000 (2020: £63,000), the remaining sum relates to LCF’s tangible fixed assets. At the time of writing this report, LCF’s digital investment had significantly progressed.

The remaining designated reserves of tangible fixed assets reflect the net book value of the leasehold improvements to the rented offices of LCF, as well as any office or IT equipment which LCF has capitalised in line with its accounting policy. The value of the assets at 31 March 2021 was £14,000 (2020: £13,000). The designation is made in recognition of the fact that these assets are essential to the day-today running of the Charity and should therefore not be considered realisable to meet commitments.

General reserves are the balance of LCF’s unrestricted reserves that have not been designated for a particular purpose and, as such, are freely available to the Trustees for any of the Charity’s purposes. The general reserves held at 31 March 2021 were £796,000 (2020: £704,000). The increase reflects the operating surplus for the year.

Trustees review LCF’s Reserves Policy and reserves levels annually as part of the planning process. The level of reserves is one of the factors taken into consideration in setting future expenditure levels. The Trustees have agreed a policy where general reserves should be maintained at a level representing:

This level is judged necessary after considering the following factors:

sustainability and ability to manage endowed funds into the future.

LCF’s level of general reserves as at 31 March 2021 was £796,000. This amount is greater than the figure calculated under the Reserves Policy, which is £701,000. However, the Trustees are comfortable with the level of reserves held at the current time, given the continuing uncertainty of the longer-term impact of the COVID-19 pandemic on future income.

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Executive remuneration

Pedlar’s Acre Trust

LCF took over the trusteeship of the charity Pedlar’s Acre Trust from Lambeth Council in 2009; the assets of this trust comprise permanent endowment. LCF applied to the Charity Commission for the power to use a total return approach regarding the fund’s investments and this power was granted on 17 January 2011.

The total return approach to investment allows LCF to utilise some of the capital growth of the fund for current grant making, instead of only being able to use the investment income received. The power to use a total return approach allows the Charity to have an investment strategy aimed at maximising total return without needing to ensure a significant part of the return is in the form of income rather than capital growth.

The Trustees have a duty to maintain evenhandedness in supporting both current and future beneficiaries. They will only use the power to spend the capital growth to the extent that the ability to support future charitable organisations will not be prejudiced.

Beaufoy Trust

LCF took over the trusteeship of the charity Beaufoy Trust from Lambeth Council in July 2013; the assets of this trust comprise permanent endowment. LCF does not currently operate a total return approach regarding the fund’s investments.

Endowment spending policy

LCF’s policy regarding expendable endowments is to allocate a set percentage of the value of each fund at December each year for expenditure on grants and direct charitable expenditure in the next financial year. The Trustees review this policy every year and set the appropriate percentage to be applied to the fund value as at 31 December. During 2021 the percentage used was 3.5% (2020: 3.5%) for grant making plus the annual contribution towards LCF’s costs.

The expenditure of the investment return of any permanent endowment where a total return approach has been agreed with the Charity Commission is set by LCF at 3.5% (2020: 3.5%) of the value of the fund at December each year, plus the annual contribution towards LCF’s costs. If the Trustees judge that a higher or lower amount would better fulfil the duty of being even-handed in the treatment of present and future beneficiaries of the fund, the amount may be varied in future decisions.

For permanent endowments where no total return approach is agreed, only the income arising from the fund may be spent.

Remuneration policies

LCF had on average of 19 full-time equivalent staff during 2021 (2020: 18). Salaries are reviewed and agreed annually by LCF’s People Committee, on behalf of the Board of Trustees. Recommendations are received on salary structure from the CEO and SMT in consultation with relevant line managers. The recommendation for the CEO’s salary is made by the Chair to the People Committee. In extraordinary circumstances, there is the opportunity to increase the pay of an individual outside the formal annual review.

Salaries are set with reference to the salary banding with reviews based on key factors including inflation, individual performance and the LCF’s financial position. Salary bands are openly stated in job advertisements and, as a signatory to the Show the Salary campaign (Sector Partner Pledge), LCF ensures access to a fair wage and greater inclusion in the workplace. A key strategic objective in 21/22 is a review of LCF’s People Offer including salary benchmarking, banding, progression framework.

Our approach to pay

LCF employs people based on the specific skills, knowledge and behaviours that they bring both to their role and to the success of LCF. We want to reward the LCF team fairly for the jobs that they do, and we believe that our salaries and additional benefits, such as a 10% contributory pension, a minimum of 25 days (pro rata) holiday entitlement, flexible working, volunteer days and employee assistance scheme reflect this. LCF is a London Living Wage accredited employer, meaning all our team

and contractors are paid at least the London Living Wage. We are also a Living Wage accredited funder, meaning we encourage the charities and community organisations we fund to pay the London Living Wage.

Remuneration of key management personnel

The Trustees consider that they, together with the SMT, comprise the key management in charge of directing and controlling, running, and operating the Charity.

The SMT was as follows during the year:

CEO, Director of Grants & Impact, and Director of Development & Communications (from January 2021). During this period, an interim Finance & Resources Director supported the Charity (2020: CEO, Director of Grants and Impact, Director of Finance & Resources until August 19, and Director of Business Development and Communications until January 20). The total benefits including employer pension contributions of the employed SMT was £207,578 (2020: £261,359).

The Trustees are not remunerated. Directly incurred expenses for travel and subsistence relating to their role as trustees are reimbursed if claimed. No claims were made in 2021 (2020:0).

Pay ratio

The ratio of our highest salary rate to our median salary during 2021 was 2.34:1 (2020: 2.35:1).

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Future plans for 2021 / 22

Following a governance review in 2020, the LCF Board with SMT established a series of strategic priorities for Board focus in 2021/22, which are outlined below and are reflected in the specific strategic objectives. This work will be underpinned by a relaunch of Terms of Reference and scope for the Board Sub-Committees.

Although we are not legally required to report against diversity, we are committed to being transparent. This work forms part of a wider programme at LCF on equity, diversity and inclusion (EDI) reaching across the organisation including our governance, people, culture, grant making and donor engagement. At the time of writing this report, LCF had diversified its Board of Trustees following a recruitment drive and this will be represented in next year’s Annual Report alongside wider EDI developments. LCF is also working with its peer community foundations on diversity and inclusion as part of its membership of the UKCF network.

About the EDI Survey:

The following data table (page 41) is taken from an anonymous diversity survey of Trustees and team members at LCF. Responses to the survey were not mandatory, were self-reported and each question included an option of ‘Prefer not to say’. This means people did not need to complete the survey and could leave some or all sections unanswered.

1. Resetting LCF for the future:

LCF is a small team and Board and, therefore, the process of gathering and representing data responsibly and respectively is different compared to a large organisation. We intend to build on this over time and recognise there is no one solution to reporting.

Following the unprecedented year of COVID-19, LCF will be launching a cross-organisational reset programme to ensure the organisation can serve London’s local civil society and donors as effectively as possible, and grow and progress as a team and Board. Work will involve reviewing LCF’s values, behaviours, operating model and operating principles and donor products. We know working life is unlikely to be the same again so this work will also include reviewing LCF’s People Offer.

2. Funding resilient civil society:

We know that during COVID-19 London’s local civil society pivoted in unparalleled ways to meet the desperate needs of the Capital’s vulnerable, often reaching beyond their own communities and missions. As a funder, we learnt a lot about how best we stand with London’s local charities and

1.1 Equity, diversity and inclusion:

As part of its ongoing commitment to equity, diversity and inclusion, LCF will continue to enhance its reporting on diversity of people in the Charity.

LCF Board of Trustees
2020 2021		 LCF team
2020 2021
How do you describe your ethnicity:
Asian / Asian British:
23%
20%
Black / Black British:
0%
20%
Other ethnicities listed:
0%
0%
White / White British:
63%
50%
Did not respond:
13%
10%		 How do you describe your ethnicity:
Asian / Asian British:
0%
0%
Black / Black British:
0%
5%
Other ethnicities listed:
0%
11%
White / White British:
77%
84%
Did not respond:
23%
0%
How do you defne your gender identity?
Man:
63%
60%
Of other gender identities listed: 0%
0%
Other:
0%
0%
Woman:
25%
30%
Did not respond:
13%
10%		 How do you defne your gender identity?
Man:
23%
26%
Of other gender identities listed: 0%
0%
Other:
0%
5%
Woman:
54%
68%
Did not respond:
33%
0%
Which of the following options best describes
how you think of your sexual orientation?
Gay or Lesbian:
13%
20%
Heterosexual:
75%
70%
Other sexual orientations listed:
0%
0%
Prefer not to say:
0%
0%
Did not respond:
13%
10%		 Which of the following options best describes
how you think of your sexual orientation?
Gay or Lesbian:
15%
16%
Heterosexual:
54%
74%
Other sexual orientations listed:
0%
5%
Prefer not to say:
8%
5%
Did not respond:
23%
0%
Do you consider yourself to live with
a disability?
No:
88%
90%
Yes:
0%
0%
Prefer not to say:
0%
0%
Did not respond:
13%
10%		 Do you consider yourself to live with
a disability?
No:
54%
89%
Yes:
8%
5%
Prefer not to say:
15%
5%
Did not respond:
23%
0%
What is your age?
18-24:
0%
0%
25-29:
0%
0%
30-34:
0%
0%
35-39:
0%
10%
40-45:
0%
20%
45-49:
25%
10%
50-54:
25%
10%
55-59:
13%
10%
60+:
25%
30%
Did not respond:
13%
10%		 What is your age?
18-24:
0%
5%
25-29:
15%
16%
30-34:
8%
16%
35-39:
23%
26%
40-45:
0%
5%
45-49:
15%
11%
50-54:
15%
21%
55-59:
0%
0%
60+:
0%
0%
Did not respond:
23%
10%

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community groups as they look to the future to meet the needs of their own beneficiaries and recover, organisationally, from the pandemic.

We also know the harsh realities facing many grassroots charitable organisations who put themselves in harm’s way during the crisis and who now face incredible financial challenges over the next 2 years.

Going forward, trust, equity, flexibility and proportionality will feature heavily both in our grant operations and how we inform and inspire donors to give.

Partnerships will continue to be a key part of our grant making work, recognising that investing in partners with the skills, expertise and reach to complement our funding (and enhance our own learning to be a better funder) is how we can support an equitable and diverse civil society in London.

3. Amplifying the needs of London:

LCF holds an incredibly privileged position as one of the primary philanthropic foundations in London with deep connections to the Capital’s civil society as well as companies, private banks, wealth advisers and intermediaries. It is this authentic connection that draws institutions and individuals to work with LCF; never has the value of giving locally on your doorstep or in your community proved more impactful.

Convening philanthropic agencies or donors through roundtables, thought leadership and events will remain a key focus as we amplify London’s needs through the work of the charitable organisations we support. It is their expertise, reach and intimate local knowledge of the people they serve that we seek to promote, as well as their funding needs.

As one member of the UK Community Foundation movement, we demonstrated during COVID-19 just how powerful the reach, profile and voice of the community foundations can be when we work together. This collective focus will continue in 21/22 for the benefit of our diverse communities and donors.

4. Maximising digital efficiencies:

Building on the significant improvements made during COVID-19, LCF will continue to invest in digital solutions that supports not only our team in their work, but also London’s charitable organisations and donors. This will rightly be aligned with equal focus on our cyber security, digital infrastructure and internal controls.

Our approach to fundraising

LCF generates its income by working in partnership with individual philanthropists, trusts, corporate and social partners, and local or central government. In normal years, an extremely small portion of the Charity’s income comes from donations from members of the public. This money is substantially made up of donations to flagship initiatives, for example the Evening Standard Dispossessed Fund, or through fundraising events like the London Marathon.

Only LCF’s team and Trustees are involved in fundraising for the Charity (aside from a small group of individuals raising donations on our behalf through fundraising events like the London Marathon). We do not use any third-party professional fundraisers or agencies. We are registered with, and pay the voluntary levy to, the Fundraising Regulator and abide by its Code of Conduct. There were no complaints regarding our fundraising practices during the year ended 31 March 2021.

Principal risks and uncertainties

responsibility its leaders and funding model have in the Capital. This work is vital, we won’t always get it right and it will take time. As a small team with a complex model, we will also learn from the challenges presented to us. Communication, learning and committed action will be key. LCF has an EDI project team working across the Board and team that will champion a whole organisation commitment and action plan.

The Trustees consider the major risks to which LCF is exposed by conducting a review. This forms part of the business planning process by maintaining a risk register which is updated annually. Risk is also considered at the Trustees’ quarterly meetings and by relevant Sub-Committees, where specific risks require consideration. The Trustees are satisfied that procedures are in place to manage or mitigate the impact of the significant risks they have identified.

  1. Supporting a high performing, flexible and knowledgeable team: LCF’s team is our biggest asset. Ensuring the team can successfully transition to a new way of working post COVID-19, and that we can support their development and commitment to LCF’s mission, is a critical part of our own recovery from the pandemic.

1. Shortfall of income against costs: The result of this would be an erosion of reserves, reduced sustainability and a contraction of the organisation. Cost management remains a key focus alongside revenue generation for LCF. Our team remains the single largest cost and this is regularly reviewed by the SMT against fund management and new business development, the latter managed tightly through qualified pipeline analysis. However, as a funder dependent on the generosity of London’s individual and corporate philanthropy and its public sector bodies, we face much of the uncertainty of other frontline charities year on year. Therefore, building our financial resilience is key to LCF being able to sustain its strategic objectives and direction whilst weathering challenging periods. We have strengthened reserves in 2020/21 and seek to manage costs through ongoing collaboration, effective cost management, digital investment, and pipeline analysis on future income.

  1. Data and cyber security: Post COVID-19 individuals and organisations alike are more digitally dependent and therefore face greater risk from cybercrime. LCF is a relationship-based organsiation, from the applicants and grantees, to donors and our wider stakeholder networks. Regular review of our controls, team awareness and training, and Board oversight will help mitigate this risk. Linked to this risk is potential fraud both in LCF’s grant making operations and its gift acceptance work with donors. LCF’s respective Sub-Committees (ARIC, SEC, PIC and PC) have oversight of the policies, procedures, and controls to monitor these areas.

2. Continuing to build greater equity and diversity: Through its Board, team and funding, LCF is committed to building its representation of London and acknowledging the power and

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Statement of Trustees’ responsibilities

The Trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Charity and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees (who are also directors of The London Community Foundation for the purposes of company law) are responsible for preparing the Trustees’ Report and 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 situation of the Charity and of the income and expenditure of the Charity for that period.

Each of the Trustees confirms that:

In preparing these Financial Statements, the Trustees are required to:

The Trustees are responsible for the maintenance and integrity of financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

The Trustees’ Report, incorporating a strategic report, was approved by order of the Board of Trustees, in their capacity as the charitable company directors, and signed on the Board’s behalf by:

Russell Prior Chair

Dated 22 November 2021

Independent Auditor’s report to the members of The London Community Foundation

Basis for opinion

Opinion

We have audited the Financial Statements of London Community Foundation (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the Financial Statements. 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).

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.

In our opinion, the Financial Statements:

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,

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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 other information comprises the information included in the annual report and Financial Statements, other than the Financial Statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report and Financial Statements. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In 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’ report including the strategic report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, 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 and for being satisfied that they give a true and fair view. They are also responsible 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 but to do so.

Auditor’s 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We have nothing to report in this regard.

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47

Annual Report and Financial Statements

Financial statements

We assessed the susceptibility of the charitable company’s Financial Statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and noncompliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 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.

Catherine Biscoe (Senior Statutory Auditor)

For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.

Dated 20 December 2021

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49

Annual Report and Financial Statements

Financial statements

Statement of Financial Activities for the year to 31 March 2021

Statement of Financial
Activities for the year
to 31 March 2021		 Statement of Financial
Activities for the year
to 31 March 2021		 Statement of Financial
Activities for the year
to 31 March 2021		 Statement of Financial
Activities for the year
to 31 March 2021		 Statement of Financial
Activities for the year
to 31 March 2021		 Statement of Financial
Activities for the year
to 31 March 2021		 Statement of Financial
Activities for the year
to 31 March 2021
Notes Unrestricted
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total
2021
£000		 Total
2020
£000
Income and endowments from:
Donations and
legacies		 2a 1,075 19,578 - 20,653 8,966
Investments 2b 283 418 60 761 761
Other trading
activities		 2c 60 - - 60 69
Total income 1,418 19,996 60 21,474 9,796
Expenditure on:
Raising funds 3a 517 14 - 531 603
Charitable activities:
Grant programme 3b 897 18,584 - 19,481 9,766
Community
development		 3c - 21 - 21 36
Total 1,414 18,619 - 20,033 10,405
Net income / (expenditure)
before investment gains
and losses		 4 1,377 60 1,441 (609)
Net gains / (losses)
on investments		 9 52 - 4,183 4,235 (1,110)
Net income /
(expenditure)		 56 1,377 4,243 5,676 (1,719)
Transfer in / (out)
between funds		 14,15 37 228 (265) - -
Net movement in
funds		 93 1,605 3,978 5,676 (1,719)
Reconciliation of funds:
Total at
01 April 2020		 767 3,695 19,597 24,059
Total at 31 March
2021		 12 860 5,300 23,575 29,735
All the activities of The London Community Foundation derive from continuing
operations. There are no recognised gains and losses other than those shown above.

50

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Annual Report and Financial Statements

Financial statements

Summary income and expenditure account

Income and expenditure account for the year ended 31 March 2021

Total 2021
£000		 Total 2020
£000
Total income from continuing operations 21,474 9,650
Total expenditure from continuing operations (20,033) (10,405)
Netincome / (expenditure) for the year before transfers and
investment asset disposals		 1,441 (755)
Transfers from endowment funds 204 332
Realised gains / (losses) on disposal of fixed asset investments 31 (24)
Net Income / (expenditure) 1,676 (447)
Total income comprises £1,418k (2020: £1,264k) of unrestricted funds, £19,996k (2020:
£8,328k) of restricted funds and £60k (2020: £58k) of endowment funds.
Received in the year, but excluded from income, are new endowments of £0k (2020:
£146k).
Detailed analysis of the expenditure is provided in the Statement of Financial
Activities.
Net income before investment asset disposals and transfers from the endowment
funds for the year is £1,441k (2020: Net expenditure £755k).
This comprises of net unrestricted income of £4k (2020: £10k), net restricted income of
£1,377k (2020: Net restricted expenditure £701k) and net endowment expenditure of
£60k (2020: £64k).
Note that this excludes endowment income from donations and legacies as this is
not considered to be continued operations.
A transfer to income funds is made, in line with the Charity’s total return and
expendable endowment policies, so that funds may be expended.
The summary income and expenditure is derived from the Statement of Financial
Activities which, together with the notes to the Accounts on pages 57 to 79,
provides full information on the movements during the year on all funds of the
charitable company.

Balance sheet

Balance sheet as at 31 March 2021

Notes Total 2021
£000		 Total 2020
£000
Fixed assets:
Tangible assets 8 14 13
Investments 9 24,560 20,786
Total 24,574 20,799
Current assets:
Debtors 10 165 585
Cash at bank and in hand 8,500 5,195
Total 8,665 5,780
Creditors: amounts falling due within one year 11 (3,504) (2,520)
Net current assets: 5,161 3,260
Net assets 29,735 24,059
The funds of the charity:
Capital funds:
Expendable endowment funds 14 18,495 15,387
Permanent endowment funds 14 5,080 4,210
Total 23,575 19,597
Revenue funds:
Restricted funds 15 5,300 3,695
Unrestricted funds:
Designated funds 16 64 63
General funds 796 704
Total funds 29,735 24,059

The Financial Statements were approved by the Board of Trustees on 22 November 2021.

Russell Prior Chair of Trustees

Veesh Sharma

Interim Chair of Audit, Risk & Investment

53

52

Company number: 4383269. Charity Number: 1091263

Annual Report and Financial Statements

Financial statements

Statement of cash flows Statement of cash flows for the year ended 31 March 2021

Notes Total 2021
£000		 Total 2020
£000
Cash flows from operating activities:
Net cash provided by operating
activities		 A 2,092 104
Interest received 3 18
Investment income received 758 743
Purchase of property, plant, and equipment (9) (13)
Purchase of investments (2) (10,798)
Proceeds from the disposal of investments 463 10,650
Net cash provided by investing activities 1,213 600
Cash flow from financing activities:
Receipt of endowment - 146
Net cash provided by investing activities - 146
Change in cash and cash equivalents in year 3,305 850
Cash and cash equivalents at 01 April 2020 5,195 4,345
Cash and cash equivalents at 31 March 2021 B 8,500 5,195
Notes to the statement of cash flow for the year ended 31 March 2021
Note A:
Netincome /(expenditure) for the year (as per the
statement of financial activities)		 5,676 (1,865)
Adjustments for:
Net (gains) / losses on investments (4,235) 1,110
Depreciation charge 8 6
Dividends and interest from investments (761) (761)
Fees deducted from investments - 122
Decrease in debtors 420 1,180
Increase in creditors 984 312
Net cash provided by operating
activities		 2,092 104
Notes Total 2021 Total 2020
£000 £000
Note B:
Analysis of cash and cash equivalents:
Cash at bank and in hand 8,500 5,195
Total 8,500 5,195

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55

Annual Report and Financial Statements

Notes to the accounts

1 Accounting policies

Basis of preparation

The Financial Statements of the Charity, which is a public benefit entity under FRS102, have been prepared under the historical cost convention, as modified by the inclusion of investments at market value, in accordance with the Financial Reporting Standard application in the UK and Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.The Financial Statements have been prepared for the year ended 31 March 2021 with comparative information in respect to the year ended 31 March 2020.

Going concern

After reviewing the Charity’s forecasts and projections, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its Financial Statements, taking COVID-19 into consideration.

Accounting policies

The Financial Statements have been prepared under the historic cost convention, as modified by the revaluation of investments, in accordance with the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities” (SORP 2019), Financial Reporting Standard 102 and Companies Act 2006. The particular accounting policies adopted by the Board of Trustees are described below:

The following specific policies are applied to particular categories of income:

Donations and legacies: These amounts are included in the SOFA in the year that they are receivable.

Income arising from grants and similar contracts specifically for the provision of grants, activities or services which are provided as part of the charitable activities of the Charity. Grants to cover administration costs are shown as charitable activities within the unrestricted fund.

Where income is received during the year in respect of future periods, the amount of the income which relates to future periods is deferred and included within creditors.

Where entitlement occurs before income is received, the income is accrued.

Investments: Investment income and interest are recognised when entitlement or receipt is established.

Other trading activities: Income is recognised in full for activities undertaken during the year.

Expenditure

Expenditure is recognised when 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.

Irrecoverable VAT is included within the expense items to which it relates.

Income

Income is recognised in the statement of financial activities (SOFA) when there is entitlement, probability of receipt and the income can be measured with sufficient accuracy.

Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. Expenditure is classified under the following activity headings:

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Annual Report and Financial Statements

Financial statements

All expenditure associated with raising funds for the Charity, including staff costs associated with fundraising and the fees payable to the investment manager.

All costs incurred towards achieving LCF’s charitable objectives.

Grant expenditure is recognised in the year of award and when communicated to the recipient in line with the SORP.

Direct costs, including directly attributable salaries, are allocated on an actual basis to each expenditure heading.

Support costs are costs incurred which are not directly attributable to our charitable activities, but which are vital to carry out the primary purposes of the Charity. These include costs such as finance, human resources, premises, communications and information systems.

Governance costs comprise the costs involving, the public accountability of the charity compliance, statutory responsibility, and good practice. Support costs (including governance costs) are allocated to the expenditure activity headings based on employee time spent working in each area.

Pensions

LCF contributes to a defined contribution scheme in the UK.

Pension costs for the defined contribution scheme are charged to the accounts on an accrual basis in the period in which they occur.

Fund accounting

General funds are unrestricted funds which are available for use, at the discretion of the Board of Trustees, in furtherance of the general objectives of the Charity and which have not been designated for particular purposes.

Designated funds comprise unrestricted funds that have been set aside by the Board of Trustees for particular purposes.

The aim and use of each designated fund are set out in the annual report of the Board of Trustees and the notes to the Financial Statements. The Board of Trustees periodically reviews the level of designated funds to ensure that they are adequate to support the purpose for which they were set up, and any surplus or deficit is transferred to or from general funds.

Restricted funds, are funds which are to be used in accordance with specific restrictions imposed by donors, or which have been raised by the Charity for particular purposes. The costs of administrating such funds are charged against the specific fund.

Endowment funds, which are permanent, represent amounts for which the capital must be retained and invested.

Income arising on these funds may be spent on the charitable objectives of LCF and in line with restrictions placed on each fund.

Expendable endowments must be invested to produce income. Depending on the conditions attached to the endowment, all or part may be converted into an income fund, which can be spent.

Permanent endowment funds (with total return approach) require all income, gains and losses be taken to the part of the fund representing accumulated unapplied returns in the first instance.

An amount reflecting the deemed investment return each year is calculated using the Charity’s endowment spending policy and is transferred to income funds to be applied within the terms of these funds.

Permanent endowment funds (without

total return approach) whereby only the income generated from the endowment is available to be applied towards charitable expenditure.

Under the terms on which the endowment funds were given to the Charity, an amount representing the cost to LCF of administrating the fund is apportioned to unrestricted funds from investment income arising in the year.

Significant accounting estimates and judgements

The preparation of the Financial Statements requires judgements, estimations and assumptions to be made that affect the reported values of assets, liabilities, revenues and expenses. The nature of estimation and judgement means that actual outcome could differ from expectation. These include:

Tangible fixed assets

Tangible fixed assets are recorded at cost. The threshold for capitalisation is £1,000, with a useful economic life exceeding one year.

Depreciation is charged on a straight-line basis
over their useful lives which are estimated to be:		 Depreciation is charged on a straight-line basis
over their useful lives which are estimated to be:
Leasehold improvements Over the remaining life
of the lease
Offce equipment Five years - 20%
IT equipment Three years - 33.3%

Investments

Investments are a form of basic financial instrument and are initially recognised at transaction value, and subsequently measured at fair value as at the balance sheet date, using the closing market bid price.

The statement of financial activities includes the net unrealised gains and losses arising on revaluation, and realised gains and losses arising from disposals throughout the year.

Realised gains and losses are calculated on the difference between sale proceeds and the opening carrying value or the purchase value if acquired in the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and the opening carrying value or purchase value if acquired in the financial year.

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Annual Report and Financial Statements

Financial statements

Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions

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

Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Cash and cash equivalents

Cash and cash equivalents include cash-in-hand, cash held in current accounts with UK banks and on deposit with CCLA.

Value Added Tax

Part of LCF’s activities are classified as exempt or non-business activities for the purposes of VAT, and, therefore, it is unable to reclaim all the VAT that it suffers on its operating costs.

Expenditure in these Financial Statements is therefore shown inclusive of VAT paid and not reclaimable.

Operating lease

Rents payable under operating leases are chargeable to the statement of financial activities on a straight-line basis over the lease term. Benefits received as a lease incentive are credited to the statement of financial activities, to reduce the lease expense on a straight-line basis over the remaining lease term.

LCF has taken advantage of the exemption in respect to lease incentives on leases in existence at the date of transition to FRS 102 (01 April 2014) and continues to credit the lease incentives to the statement of financial activities over the period from the rent review date to the end of the lease term.

2 Income

Unrestricted
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total 2021
£000		 Total 2020
£000
2a Income from donations and legacies 2
Trusts and foundations 543 10,285 - 10,828 3,682
Corporates 293 3,731 - 4,024 2,355
Local public
authorities		 200 4,866 - 5,066 158
Individuals 39 696 - 735 870
National public
authorities		 - - - - 1,901
Total 1,075 19,578 - 20,653 8,966
2b Income from investments
Interest receivable 3 - - 3 18
Investment income 280 418 60 758 743
Total 283 418 60 761 761
2c Income from other trading activities
Rental income 60 - - 60 69
Total 60 - - 60 69
Unrestricted
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total 2021
£000		 Total 2020
£000
2021 Total income 1,418 19,996 60 21,474
2020 Total income 1,264 8,328 204 9,796

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Annual Report and Financial Statements

Financial statements

3 Expenditure

Unrestricted
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total 2021
£000		 Total 2020
£000
3a Expenditure on raising funds
Investment management costs:
Staff costs (note 6) 8 - - 8 7
Other direct costs - - - - 124
Allocated support
costs (note 4)		 6 - - 6 5
Cost of raising donations and legacies:
Staff costs (note 6) 257 - - 257 239
Other direct costs 24 14 - 38 43
Allocated support
costs (note 4)		 212 - - 212 174
Cost of generating rental income:
Staff costs (note 6) 4 - - 4 4
Other direct costs 3 - - 3 4
Allocated support
costs (note 4)		 3 - - 3 3
Total 517 14 - 531 603
3b Expenditure on charitable activities: grant programme
Grants payable - 18,432 - 18,432 8,905
Staff costs (note 6) 486 77 - 563 452
Other direct costs 10 75 - 85 80
Allocated support
costs (note 4)		 401 - - 401 329
Total 897 18,584 - 19,481 9,766
3c Expenditure on charitable activities: community development
Staff costs (note 6) - - - - -
Other direct costs - 21 - 21 36
Allocated support
costs (note 4)		 - - - - -
Total - 21 - 21 36
Unrestricted
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total 2021
£000		 Total 2020
£000
2021 Total Expenditure 1,414 18,619 - 20,033
2020 Total Expenditure 1,254 9,029 122 10,405

4 Analysis of support costs

2021
£000		 2020
£000
Support staff costs (note 6) 148 138
Professional fees 140 90
Premises costs 158 153
Office and other costs 19 28
Depreciation 7 6
IT costs 41 24
Governance costs (note 5) 109 72
Total 622 511
Attributed to:
Expenditure on raising funds (note 3a):
Investment management 6 5
Cost of raising donations and legacies 212 174
Cost of generating rental income 3 3
Expenditure on charitable activities:
Grant programme (note 3b) 401 329
Community development (note 3c) - -
Total 622 511
Support costs are allocated to expenditure on raising funds and charitable activities
based on employee time allocated to each area.

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Annual Report and ~~Financial Statements~~

Financial statements

5 Governance costs

2021
£000		 2020
£000
Staff costs (direct) 59 55
External auditor’s remuneration 17 13
Legal and professional fees 33 4
Total 109 72

6 Staff costs and remuneration of key management personnel

Unrestricted
funds
£000		 Restricted
funds
£000		 Total
2021
£000		 Total
2020
£000
Salaries and wages 688 77 765 683
Social security costs 72 - 72 65
Employer pension contributions 48 - 48 54
Temporary staff costs 154 - 154 90
Redundancy costs - - - 3
Total 962 77 1,039 895
The average number of employees during the year was:
Employees 2021 FTE 2020 FTE 2021
Number		 2020
Number
Grant delivery and community
development		 13 13 14 13
Fundraising 2 3 2 4
Support 4 2 4 2
Total 19 18 20 19
The number of staff whose emoluments were greater than £60,000 are:
£60,001 - £70,000 1 1
£70,000 - £80,000 - -
£80,001 - £90,000 1 1
£90,001- £100,000 - -
Total 2 2

Emoluments is taken to mean actual payments due in-year for hours worked and is therefore not a full-time equivalent rate, but an actual rate reflecting part-time hours as well as employment for less than a full-year.

The employees whose salary banding is disclosed above also accrued employer pension contributions of £15,517 (2020: £14,796).

21 employees participated in the charity’s stakeholder pension scheme, inclusive of starters and leavers (2020: 22).

Key management personnel

The Charity considers its key management personnel comprises the Trustees and Senior Management Team.

The Senior Management Team was made up as follows during the year: CEO, Director of Grants and Impact, Director of Business Development and Communications (from January 2021)

(2020: CEO, Director of Grants and Impact, Director of Finance & Resources until August 19, and Director of Business Development and Communications until January 20).

The total benefits including employer pension contributions of the employed senior management team were £207,578 (2020: £261,359).

The Trustees are not remunerated. Directly incurred expenses for travel and subsistence relating to their role as trustee are reimbursed if claimed.

No claims were made in 2021 (2020: 0).

7 Net income / (expenditure)

2021
£000		 2020
£000
This is stated after charging:
Staff costs (note 6) 1,039 895
Auditor’s remuneration (excluding VAT):
Statutory audit services 13 11
Other services - -
Depreciation 8 6
Rentals under operating leases: property 116 115
Total 1,176 1,027

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Annual Report and Financial Statements

Financial statements

8 Tangible fixed assets

Leasehold
improvements £000		 Furniture, IT, office
equipment £000		 Total 2021
£000
Cost:
As at 01 April 2020 107 68 175
Additions - 9 9
As at 31 March 2021 107 77 184
Depreciation:
As at 01 April 2020 105 57 162
Charge for the year 1 7 8
As at 31 March 2021 106 64 170
Net Book Value as at 31 March
2021		 1 13 14
Net Book Value as at 31 March
2020		 2 11 13

9 Fixed asset investments

2021
£000		 2020
£000
9a Investments at market value
Market value of listed investments at 01 April 2020 20,786 21,870
Additions at cost 2 10,798
Disposal proceeds (463) (10,650)
Realised gains / (losses) on disposal 31 (24)
Fees deducted by the investment managers directly from the
fund (note 3a)		 - (122)
Unrealised gains / (losses) 4,204 (1,086)
Market value of listed investments at 31 March 2021 24,560 20,786
Cash held by investment managers - -
Total market value of listed investments at 31 March 2021 24,560 20,786
9b Investments at historical cost
Market value at 31 March 2021 24,560 20,786
Accumulated gains brought forward (6,896) (7,982)
Unrealised gains / (losses) for the year (4,204) 1,086
Unrealised gain in respect to disposals in the year 39 2,863
Historical cost at 31 March 2021 13,499 16,753
9c Investments disposition
Common Investment Funds: COIF Charities Investment Fund 24,450 20,689
Common Investment Funds: COIF Ethical Investment Fund 110 97
Total market value of listed investments at 31 March 2021 24,560 20,786

(2020: During the year, The LCF consolidated its investment portfolio, to be administered by one investment manager, being CCLA. It disposed of its units in Alpha CIF for Endowment funds, held by Sarasin & Partners, and used the sale proceeds to make purchases in the COIF Charities Investment fund.)

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Annual Report and Financial Statements

Financial statements

10 Debtors

2021
£000		 2020
£000
Trade debtors 115 447
Prepayments 36 53
Accrued income 14 85
Total 165 585

11 Creditors: amounts falling due within one year

2021
£000		 2020
£000
Grants payable 2,992 2,351
Other creditors 60 27
Accruals 104 99
Deferred income 348 43
Total 3,504 2,520
Movements on deferred income during the
year was as follows:
Balance brought forward at 1 April 2020 43 11
Amounts released to income (38) (3)
Cash received to be deferred 343 35
Balance carried forward at 31 March 2021 348 43
Deferred income relates to funding where the agreement specifies some of the
income is in relation to a future period.

12 Analysis of net assets between funds

Unrestricted
funds
£000		 Designated
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total
2021
£000		 Total
2020
£000
Fund balances as at 31 March 2021
Represented by:
Tangible fixed
assets		 - 14 - - 14 13
Fixed asset
investments		 303 - 682 23,575 24,560 20,786
Current assets
- cash		 903 50 7,547 - 8,500 5,195
Current assets
- debtors		 98 - 67 - 165 585
Creditors:
amounts
falling due
within one
year		 (508) -- (2,997) - (3,504) (2,520)
Total 796 64 5,300 23,575 29,735 24,059
The restricted funds represented by fixed asset investments are made up of
endowment funds where LCF’s endowment spending policy has determined the
portion of the capital gain on those funds which should be spent, but the investment
assets will not be drawn down until spending plans are finalised.
The total unrealised gains as at 31 March 2021 constitutes movement on revaluation
in respect of listed investments and are as follows:
Total unrealised gains included above:
On listed investments 11,061 4,033
Reconciliation of movements in unrealised gains:
Unrealised gains as at 01 April 2020 4,033 7,959
Less disposals in year 2,824 (2,840)
Sub-total 6,857 5,119
Add net gains / (losses) arising on revaluation arising in-year 4,204 (1,086)
Total unrealised gains as at 31 March 2021 11,061 4,033
Unrestricted
funds
£000		 Designated
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total
2021
£000		 Total
2020
£000
Fund balances as at 31 March 2021
Represented by:
Tangible fixed
assets		 - 14 - - 14 13
Fixed asset
investments		 303 - 682 23,575 24,560 20,786
Current assets
- cash		 903 50 7,547 - 8,500 5,195
Current assets
- debtors		 98 - 67 - 165 585
Creditors:
amounts
falling due
within one
year		 (508) -- (2,997) - (3,504) (2,520)
Total 796 64 5,300 23,575 29,735 24,059
The restricted funds represented by fixed asset investments are made up of
endowment funds where LCF’s endowment spending policy has determined the
portion of the capital gain on those funds which should be spent, but the investment
assets will not be drawn down until spending plans are finalised.
The total unrealised gains as at 31 March 2021 constitutes movement on revaluation
in respect of listed investments and are as follows:
Total unrealised gains included above:
On listed investments 11,061 4,033
Reconciliation of movements in unrealised gains:
Unrealised gains as at 01 April 2020 4,033 7,959
Less disposals in year 2,824 (2,840)
Sub-total 6,857 5,119
Add net gains / (losses) arising on revaluation arising in-year 4,204 (1,086)
Total unrealised gains as at 31 March 2021 11,061 4,033

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Financial statements

13 Obligations under operating leases

2021
£000		 2020
£000
As at 31 March 2021, the Charity had total future minimum lease payments under
non-cancellable operating leases for office rent as follows:
Within one year 126 126
After one but within two years 126 126
After two but within five years 53 168
Total 305 420
2021
£000		 2020
£000
As at 31 March 2021, the Charity had total future minimum lease payments under
non-cancellable operating leases for office rent as follows:
Within one year 126 126
After one but within two years 126 126
After two but within five years 53 168
Total 305 420

14 Endowment funds

Bal. 01
April
2020
£000		 Income
£000		 Expenditure
£000		 Transfer
in/(out)
£000		 Investment
gain/(loss)
£000		 Bal. 31
March
2021
£000		 Bal. 31
March
2020
£000
LCF holds both expendable and permanent endowment funds. Many of LCF’s
endowment funds have benefited from match funding in addition to donations
made to funds, received from the government schemes Grassroots Grants
(2008-2011) and Community First (2012-2015). A selection of the funds, are listed
below along with totals for each scheme.
Expendable endowments – Grassroots Grants Funds:
Bromley
Community
Fund		 217 - - - 46 263 217
Croydon
Community
Fund		 343 - - - 75 418 343
Deutsche
Bank Fund		 540 - - - 123 663 540
Evening
Standard
Dispossessed
Fund		 3,015 - - - 623 3,638 3,015
Gordon
Family Fund		 262 - - - 59 321 262
Lambeth
Community
Fund		 214 - - - 46 260 214
Bal. 01
April
2020
£000		 Income
£000		 Expenditure
£000		 Transfer
in/(out)
£000		 Investment
gain/(loss)
£000		 Bal. 31
March
2021
£000		 Bal. 31
March
2020
£000
LCF holds both expendable and permanent endowment funds. Many of LCF’s
endowment funds have benefited from match funding in addition to donations
made to funds, received from the government schemes Grassroots Grants
(2008-2011) and Community First (2012-2015). A selection of the funds, are listed
below along with totals for each scheme.
Expendable endowments – Grassroots Grants Funds:
Bromley
Community
Fund		 217 - - - 46 263 217
Croydon
Community
Fund		 343 - - - 75 418 343
Deutsche
Bank Fund		 540 - - - 123 663 540
Evening
Standard
Dispossessed
Fund		 3,015 - - - 623 3,638 3,015
Gordon
Family Fund		 262 - - - 59 321 262
Lambeth
Community
Fund		 214 - - - 46 260 214
~~Annu~~ ~~l Reort an~~ ~~d~~

Financ		 ~~p~~
ial Stateme
nts
Bal. 01
April
2020
£000		 Income
£000		 Expenditure
£000		 Transfer
in/(out)
£000		 Investment
gain/(loss)
£000		 Bal. 31
March
2021
£000		 Bal. 31
March
2020
£000
Norton Rose
Fund		 399 - - - 90 489 399
Victoria
Foundation
Fund		 338 - - - 74 412 338
Westminster

Fund		 353 - - - 78 431 353
Other
Grassroots
Grants Funds 1,463 - - - 323 1,786 1,463
Total 7,144 - - - 1,537 8,681 7,144
~~Expendable En~~ ~~dowments~~ ~~- Comm~~ ~~unity First F~~ ~~unds:~~
Barnet Fund 417 - - - 81 498 417
Gordon
Family Fund		 969 - - - 197 1,166 969
Cadogan
~~Kensington &~~

Chelsea Fund		 207 - - - 43 250 207
~~Land~~

Securities
Westminster
Fund		 213 - - - 44 257 213
Living Cities
Community
~~Fund~~ ~~1,082~~ ~~-~~ ~~-~~ ~~-~~ ~~213~~ ~~1,295~~ ~~1,082~~
The London
Leg-Up Fund		 335 - - - 67 402 335
Other
Community
~~First Funds~~ ~~2,304~~ ~~-~~ ~~-~~ ~~(164)~~ ~~501~~ ~~2,641~~ ~~2,304~~
Total 5,527 - - (164) 1,146 6,509 5,527
~~Expendable e~~ ~~ndowment~~ ~~- Other~~ ~~funds:~~
~~Cresswell~~

Trust		 59 - - - 12 71 59
Lambeth
Endowment
Fund		 1,131 - - - 242 1,373 1,131
Lewisham
Fund		 315 - - - 72 387 315

70

71

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Fin ~~ancial~~ sta ~~tements~~

15 Restricted funds

Bal. 01 Income Expenditure Transfer Investment Bal. 31 Bal. 31
April in/(out) gain/(loss) March March
2020 2021 2020
£000 £000 £000 £000 £000 £000 £000
Portuguese
Fund 591 - - - 128 719 591
South London
Opportunity
~~Fund~~ ~~150~~ ~~-~~ ~~-~~ ~~-~~ ~~34~~ ~~184~~ ~~150~~
~~Wandsworth~~
Community
Fund 470 - - - 100 570 470
~~Total~~ ~~2,716~~ ~~-~~ ~~-~~ ~~-~~ ~~588~~ ~~3,304~~ ~~2,716~~
Total Expendable Endowments 18,495 15,387
Permanent Endowments:
Portuguese
Fund 591 - - - 128 719 591
South London
Opportunity
~~Fund~~ ~~150~~ ~~-~~ ~~-~~ ~~-~~ ~~34~~ ~~184~~ ~~150~~
~~Wandsworth~~
Community
Fund 470 - - - 100 570 470
~~Total~~ ~~2,716~~ ~~-~~ ~~-~~ ~~-~~ ~~588~~ ~~3,304~~ ~~2,716~~
Total Expendable Endowments 18,495 15,387
Permanent Endowments:
Barnet
Endowment 70 - - - 13 83 70
Beaufoy Trust 1,356 - - - 280 1,636 1,356
Pedlar’s Acre
Trust 2,328 60 - (101) 523 2,810 2,328
Richmond
Civic Trust 456 - - - 95 551 456
Total 4,210 60 - (101) 911 5,080 4,210
Total
Endowment
Funds 19,597 60 - (265) 4,183 23,575 19,597
Grants from endowment funds are made from the restricted funds relatingto the
endowment funds of the same name, grants for the year ended 31 March 2021 can
beseen in note 15.
Transfers out of expendable endowment funds to restricted funds represent a release
of the capital representing capital return. The transfers operate under LCF’s
endowment spending policy and allow further application of the funds as grants.
Bal. 01 April
2020
£000		 Income
£000		 Expenditure
£000		 Transfer
in/(out)
£000		 Total 2021
£000		 Total
2020
£000
LCF holds many restricted funds, a sample of which are shown in the note below
along with totals from each type of donor.
Evening Standard
Dispossessed Fund -
Homelessness Fund		 264 539 (228) - 575 264
Evening Standard
Dispossessed Fund -
The Excluded
Initiative		 225 293 (281) - 237 225
JP Morgan (1) 147 - 1 147 (1)
Lambeth Wellbeing
Fund		 17 79 5 - 101 17
London Communities
Coronavirus Appeal		 6 1,005 (1,112) 213 112 6
London Impact
Awards		 - 152 - - 152 -
Made by Sport ‘Clubs
in Crisis’ Fund		 - 504 - - 504
Mayor's Office for
Policing & Crime
(MOPAC) - Violence
Against Women and
Girls Fund		 8 1,599 (902) - 705 8
Peabody Community
Fund		 412 700 (361) (310) 441 412
The Young People’s
Fund		 99 100 (77) 1 123 99
Other grant making
funds		 1,304 14,421 (15,082) 289 930 1,034
Total grant making
funds		 2,334 19,539 (18,038) 194 4,029 2,334
Endowment funds
(revenue element)
Deutsche Bank Older
People’s Fund		 64 38 - 1 103 64

73

72

Annual Report and Financial Statements

Financial statements

Bal. 01 April
2020
£000		 Income
£000		 Expenditure
£000		 Transfer
in/(out)
£000		 Total 2021
£000		 Total
2020
£000
Lambeth CF
Endowment Fund		 137 30 - - 167 137
Pedlar's Acre Trust 76 4 - 19 99 76
Sue Estermann Fund 159 - - - 159 159
Other endowment
funds (income
element)		 925 385 (581) 14 743 925
Total endowment
~~funds (revenue~~
~~element)~~		 ~~1,361~~ ~~457~~ ~~(581)~~ ~~34~~ ~~1,271~~ ~~1,361~~
Total Restricted Funds 3,695 19,996 (18,619) 228 5,300 3,695
~~The funds of the Charit~~
represents the unexpe
~~They consider multi-ye~~		 ~~y include re~~
nded balan
~~r commitm~~		 ~~stricted fund~~
ces of incom
~~ents to be p~~		 ~~s listed abo~~
e held on t
~~aid to chari~~		 ~~ve; the cl~~
rust from s
~~table org~~		 ~~osing bala~~
pecific pu
~~anisations i~~		 ~~nce~~
rpose.
~~n~~

future financial years.
~~Grant-making Funds:F~~ ~~unds held fo~~ ~~r the purpo~~ ~~se of grant~~ ~~making to~~ ~~communit~~ ~~ies~~

groups and projects as
defined by
the purpos
e of each fu
nd.		 ~~,~~
~~Transfers:Transfers in g~~ ~~enerally rep~~ ~~resent a rel~~ ~~ease of the~~ ~~capital fro~~ ~~m endow~~ ~~ment~~
~~,~~
funds. Transfers out, ge
similar purpose at the p
nerally repre
oint of awa
sent the po
rding grants
oling of the
.
fund with
other fund
s of
COVID-19 Response Fu
COVID-19 pandemic, t
~~year end it had receiv~~		 nds:In late
he Charity l
~~ed the first r~~		 March 2020
aunched Th
~~estricted fun~~		 , following t
e London C
~~ds into the~~		 he outbre
oronaviru
~~Appeal t~~		 ak of the
s Appeal. B
~~he primary~~		 efore
~~,~~
fundraising and grant-
making acti
vity has occ
urred in 202		 ~~.~~
0/21.
16 Designated funds
The tangible fixed asse
Charity’s tangible asse
 ts fund of £1
ts. The amo
 4k (2020: £1
unt has bee
 3k) represen
n separated
 ts book v
from the
 alue of the
Charity’s g
eneral
~~unrestricted funds (free~~
essential to day-to-day
~~considered realisable t~~		 ~~reserves) in~~
operation
~~o meet com~~		 ~~recognition~~
of the Charit
~~mitments.~~		 ~~of the fact~~
y and shoul		 ~~that the a~~
d therefor		 ~~ssets are~~
e not be
During the year to 31 March 2019, the Trustees elected to designate a fund of £50k to
support The LCF’s digital development programme. No funds have been added or
spent from this fund in the year to 31 March 2021. Funds are to be spent in 2021/22.

16 Desi nated funds g

The tangible fixed assets fund of £14k (2020: £13k) represents book value of the Charity’s tangible assets. The amount has been separated from the Charity’s general ~~unrestricted funds (free reserves) in recognition of the fact that the assets are~~ essential to day-to-day operation of the Charity and should therefore not be ~~considered realisable to meet commitments.~~

17 Funds of Pedlar’s Acre Trust

Assets of each Charity at 31 March 2021 LCF
£000		 Pedlar’s Acre
Trust
£000		 2021
£000
On 21 May 2009, the Charity Commission authorised a uniting direction for registration
and accounting purposes between The London Community Foundation (charity no.
1091263) and Pedlar’s Acre Trust (charity no. 205817). At the date of the uniting
direction the assets of Pedlar’s Acre Trust were valued at £1,843,330.
The transactions and assets of the separate charities for the year ended 31 March
2021 are shown below:
Opening balance at 01 April 2020 21,731 2,328 24,059
Income 21,414 60 21,474
Expenditure (20,033) - (20,033)
Fund transfers in/(out) (note 18) 101 (101) -
Losses on investments 3,712 523 4,235
Net movement in funds 5,194 482 5,676
Closing balance as at 31 March 2021 26,925 2,810 29,735
Tangible fixed assets 14 - 14
Fixed asset investments 21,750 2,810 24,560
Debtors 165 - 165
Cash at bank and in hand 8,500 - 8,500
Creditors: amounts falling due within one
year		 (3,504) - (3,504)
Net assets as at 31 March 2021 26,925 2,810 29,735
Funds of the Charity
Expendable endowment funds 18,495 - 18,495
Permanent endowment funds 2,270 2,810 5,080
Restricted funds 5,300 - 5,300
Unrestricted funds 860 - 860
Closing balance as at 31 March 2021 26,925 2,810 29,735
Assets of each Charity at 31 March 2021 LCF
£000		 Pedlar’s Acre
Trust
£000		 2021
£000
On 21 May 2009, the Charity Commission authorised a uniting direction for registration
and accounting purposes between The London Community Foundation (charity no.
1091263) and Pedlar’s Acre Trust (charity no. 205817). At the date of the uniting
direction the assets of Pedlar’s Acre Trust were valued at £1,843,330.
The transactions and assets of the separate charities for the year ended 31 March
2021 are shown below:
Opening balance at 01 April 2020 21,731 2,328 24,059
Income 21,414 60 21,474
Expenditure (20,033) - (20,033)
Fund transfers in/(out) (note 18) 101 (101) -
Losses on investments 3,712 523 4,235
Net movement in funds 5,194 482 5,676
Closing balance as at 31 March 2021 26,925 2,810 29,735
Tangible fixed assets 14 - 14
Fixed asset investments 21,750 2,810 24,560
Debtors 165 - 165
Cash at bank and in hand 8,500 - 8,500
Creditors: amounts falling due within one
year		 (3,504) - (3,504)
Net assets as at 31 March 2021 26,925 2,810 29,735
Funds of the Charity
Expendable endowment funds 18,495 - 18,495
Permanent endowment funds 2,270 2,810 5,080
Restricted funds 5,300 - 5,300
Unrestricted funds 860 - 860
Closing balance as at 31 March 2021 26,925 2,810 29,735

During the year to 31 March 2019, the Trustees elected to designate a fund of £50k to support The LCF’s digital development programme. No funds have been added or spent from this fund in the year to 31 March 2021. Funds are to be spent in 2021/22.

74

75

Annual Report and Financial Statements

Financial statements

18 Application at the power of total return to Pedlar’s Acre Trust

2021
£000		 2020
£000
The investment power of total return was granted by a Charity Commission Order on
17 January 2011. The Charity received advice from its legal advisors Bates Wells &
Braithwaite with regards to the use of the power and ensuring its use does not
prejudice the ability of the Charity to support both current and future beneficiaries.
This power permits the Trustees to invest permanently endowed funds to maximise
total return and apply an appropriate portion of the unapplied total return income
each year. Until the power is exercised to transfer a portion of unapplied total return
to income (as disclosed in the note below), the unapplied total return remains
invested as part of the permanent endowment.
The Trustees have selected the date of the valuation for total return purposes to be
the value of the endowment fund at 31 March 2004. Pedlar’s Acre Fund has been in
existence since 17th century, however no valuation is available for the Charity prior
to 31 March 2004. At this date the Fund was valued at £1,836,806. The note below
shows the opening unapplied total return and fund transfer in the year.
The power of total return allows the Trustees to decide in each year how much of the
unapplied total return is transferred to income funds and so is available for grant-
making expenditure. During the year to 31 March 2021 the Trustees elected to
transfer 3.5% of the value of the fund as at 31 December 2019 to income funds, 3.5%
being the amount LCF aims to spend of its permanent endowment funds holding
total return power under its endowment spending policy.
The Trustees decided that the duty to be even-handed to future and present
beneficiaries was fulfilled by following LCF’s standard policy in 2020/21.
The investment fund and application of total return to permanent endowment funds
is as follows:
Opening value of permanent endowment 01 April 2020 2,328 2,580
Less: Value of endowment at 31 March 2004 (1,837) (1,837)
Opening value of unapplied total return at 01 April 2020 491 743
Add: Investment return income 60 58
Add: Investment return unrealised gain / (loss) on
investment		 523 (205)
Less: Investment management and legal costs - (15)
Unapplied total return before transfer to income 1,074 581
Less: unapplied total return applied (101) (90)
Sub-total unapplied total return as at 31 March 2021 973 491
Add: Value of endowment at 31 March 2004 1,837 1,837
Permanent endowment including unapplied total return
as at 31 March 2021		 2,810 2,328

19 Funds held in capacity as agents – Deptford Challenge Trust

2021
£000		 2020
£000
LCF manages the Deptford Challenge Trust (DCT) Fund on behalf of DCT as an agent
and distributes the Fund to the beneficiary institutions selected by DCT. As the
principal, DCT is responsible for ensuring the charitable application of the fund.
At the year-end date the following assets and liabilities relating to the Fund have
been excluded from the balance sheet:
Cash at bank 6 2
Grant creditor (8) -
Total funds held in capacity as Agents (2) 2

20 Related party transactions

As per note 6, the Trustees are not remunerated, and no expenses have been incurred in 2021 (2020: none).

The total value of unrestricted donations made by the Trustees of the Charity for the benefit of the Charity during the year ended 31 March 2021 was £6,845.81 (2020: £118,704).

In the year ended 31 March 2021 (2020: None) one grant was made to an organisation where a Trustee or member of the Senior Management Team held a declarable interest. The value of the grant was £25,000 to Voluntary Action Camden.

21 Analysis of grants

21a Analysis of grants by recipient

21a Analysis of grants by recipient 21a Analysis of grants by recipient 21a Analysis of grants by recipient
Number Total 2021
£000
Grants awarded to institutions 1,311 22,571
Grants awarded to individuals 14 27
TOTAL 1,325 22,598
Most of the grant making at LCF is to charities and community groups each year.

76

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~~Annual Report and Financial Statements~~

Financial statements

21b Analysis of grants by theme

Business as Usual Grants by Theme Business as Usual Grants by Theme Business as Usual Grants by Theme Business as Usual Grants by Theme Business as Usual Grants by Theme Business as Usual Grants by Theme Business as Usual Grants by Theme
Value Volume
Theme Institutions
£000		 Individuals
£000		 Total
£000		 Institutions Individuals Total volume
Connect 1,970 27 1,997 113 14 127
Future 1,716 - 1,716 61 - 61
Thrive 4,599 - 4,599 66 - 66
Total 8,285 27 8,312 240 14 254
Connect:“Tackling isolation in London and helping people feel connected and
purposeful.”
Future:“Empowering young people to help shape our Capital and their futures.”
Thrive:“Supporting vulnerable Londoners live, work and thrive in London.”
COVID Emergency Fund Grants by Theme COVID Emergency Fund Grants by Theme COVID Emergency Fund Grants by Theme COVID Emergency Fund Grants by Theme COVID Emergency Fund Grants by Theme COVID Emergency Fund Grants by Theme COVID Emergency Fund Grants by Theme
Value Volume
Theme Institutions
£000		 Individuals
£000		 Total
£000		 Institutions Individuals Total volume
Adapt 977 - 977 70 - 70
Crisis 4,194 - 4,194 470 - 470
Delivering
differently		 3,004 - 3,004 164 - 164
MOPAC
emergency		 504 - 504 114 - 114
Enable 1,305 - 1,305 94 - 94
MoJ Covid 2,135 - 2,135 65 - 65
Renewal 1,288 - 1,288 41 - 41
Strategic 21 - 21 1 - 1
Total 13,428 - 13,428 1,019 - 1,019
COVID Emergency Fund Grants by Theme
Value Volume
~~Theme~~ ~~Institutions~~ ~~Individuals~~ ~~Total~~ ~~Institutions~~ ~~Individuals~~ ~~Total volume~~
£000 £000 £000

Adapt: Funding charitable work that helps charities and community groups to restart, ~~adapt, or collaborate for the future~~

~~Crisis:~~

Wave 1 - Small grants up to £5k for charitable organisations providing food and essential items to people in need in the first weeks of COVID-19

Wave 2 - Providing a continuation of crisis funding (small short-term grants) to support food and essential services

Wave 3 - Providing a continuation of crisis funding (small short-term grants) to support ~~food and essential services~~

Wave 4 - Providing ongoing running costs for charitable organisations specifically focusing on charities lead by and for communities disproportionately impacted by ~~the pandemic~~

~~Delivering differently: Providing grants of up to £50k to support charitable~~ organisations seeking transition services to their beneficiaries online and investing in digital infrastructure to deliver differently

MOPAC Emergency: Emergency grants to support both grassroots and larger charitable organisations’ running costs in the Capital, facing an upsurge in demand ~~for domestic abuse, so-called honour-based crime and sexual violence support~~ services

Enable: Providing funding to support charitable work that helps to prevent difficulties escalating, and that enables people to emerge from crisis

MoJ COVID-19: Ongoing COVID-19 funding – delivered on behalf of MOPAC (Mayor’s Office for Policing and Crime) – to support charitable organisations providing domestic abuse and violence support services in the Capital Renewal: Launched in Jan 21 providing further crisis response grants of up to £10k to support food and essential items, as well as key charitable services like mental health and domestic abuse services. More widely up to £50k grants to support charitable organisations’ running costs coming out of the pandemic

Strategic: Funds from Citi Foundation to invest in an equity-led infrastructure partner.

22 Post balance sheet event

In October / November the Evening Standard approached LCF about a potential spend down of £1m from the capital of their endowment to support the development of a kitchen for the Felix Project. The drawdown occurred in April 2021 and will be distributed in tranches during the first half of 2021/22.

78

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Annual Report and Financial Statements

Financial statements

Prior year comparatives

Statement of Financial Activity for the year to 31 March 2020

Notes Unrestricted
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total
2020
£000		 Total
2019
£000
Income and endowments from:
Donations and legacies 2a 914 7,906 146 8,966 8,455
Investments 2b 281 422 58 761 747
Other trading activities 2c 69 - - 69 53
Charitable activities 2d - - - - -
Total income 1,264 8,328 204 9,796 9,255
Expenditure on:
Raising funds 3a 467 14 122 603 567
Charitable activities:
Grant programme 3b 787 8,979 - 9,766 8,492
Community
development		 3c - 36 - 36 64
Total 1,254 9,029 122 10,405 9,123
Net (expenditure) / income
before investment gains and
losses		 10 (701) 82 (609) 132
Net (losses) / gains on
investments		 (7) - (1,103) (1,110) 1,272
Net (expenditure) / income 3 (701) (1,021) (1,719) 1,404
Transfer In / (out)
between funds		 14,15 13 255 (268) - -
Net movement in funds 16 (446) (1,289) (1,719) 1,404
Reconciliation of funds:
Total at
01 April 2019		 751 4,141 20,886 25,778
Total at 31 March 2020 12 767 3,695 19,597 24,059
All of the activities of The London Community Foundation derive from continuing

operations. There are no recognised gains and losses other than those shown above.

Refers to note 2 Income

Refers to note 2 Income Refers to note 2 Income Refers to note 2 Income Refers to note 2 Income Refers to note 2 Income Refers to note 2 Income Refers to note 2 Income Refers to note 2 Income Refers to note 2 Income Refers to note 2 Income
Unrestricted
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total 2020
£000		 Total
2019
£000
2a Income from donations and legacies
Trusts and foundations 221 3,455 6 3,682 2,625
Corporates 294 1,921 140 2,355 2,380
Local public authorities 29 129 - 158 768
Individuals 236 634 - 870 529
National public
authorities		 134 1,767 - 1,901 2,153
Total 914 7,906 146 8,966 8,455
2b Income from investments
Interest receivable 18 - - 18 17
Investment income 263 422 58 743 730
Total 281 422 58 761 747
2c Income from other trading activities
Rental income 69 - - 69 53
Total 69 - - 69 53
Unrestricted
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total 2020
£000		 Total 2019
£000
2020 Total income 1,264 8,328 204 9,796
2019 Total income 1,117 7,877 261 9,255

80

81

Annual Report and Financial Statements

Financial statements

Refers to note 12 Analysis of net assets between funds

Refers to note 3 Expenditure

Refers to note 3 Expenditure Refers to note 3 Expenditure Refers to note 3 Expenditure Refers to note 3 Expenditure Refers to note 3 Expenditure Refers to note 3 Expenditure
Unrestricted
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total 2020
£000		 Total 2019
£000
3a Expenditure on raising funds
Investment management costs:
Staff costs 7 - - 7 4
Other direct costs 2 - 122 124 141
Allocated support costs 5 - - 5 2
Cost of raising donations and legacies:
Staff costs 239 - - 239 243
Other direct costs 29 14 - 43 28
Allocated support costs 174 - - 174 126
Cost of generating rental income:
Staff costs 4 - - 4 8
Other direct costs 4 - - 4 14
Allocated support costs 3 - - 3 1
Total 467 14 122 603 567
3b Expenditure on charitable activities: grant programme
Grants payable - 8,905 - 8,905 7,696
Staff costs 452 - - 452 446
Other direct costs 6 74 - 80 47
Allocated support costs 329 - - 329 303
Total 787 8,979 - 9,766 8,492
3c Expenditure on charitable activities: community development
Staff costs - - - - 24
Other direct costs - 36 - 36 25
Allocated support costs - - - - 15
Total - 36 - 36 64
2020 Total Expenditure 1,254 9,029 122 10,405
2019 Total Expenditure 1,187 7,796 140 9,123
Unrestricted
funds
£000		 Designated
funds
£000		 Restricted
funds
£000		 Endowment
funds
£000		 Total
2020
£000		 Total
2019
£000
Fund balances as at 31 March 2021
Represented by:
Tangible
fixed
assets		 - 13 - - 13 6
Fixed
asset
investments		 251 - 938 19,597 20,786 21,880
Current
assets -
cash		 442 50 4,703 - 5,195 4,335
Current
assets -
debtors		 164 - 421 - 585 1,765
Creditors:
amounts
falling
due
within
one year		 (153) - (2,367) - (2,520) (2,208)
Total 704 63 3,695 19,597 24,059 25,778
The restricted funds represented by fixed asset investments are made up of
a few endowment funds where LCF’s endowment spending policy has
determined the portion of the capital gain on those funds which should be
spent, but the investment assets will not be drawn down until spending
plans are finalised.
The total unrealised gains as at 31 March 2020 constitutes movement on
revaluation in respect of listed investments and are as follows:
Total unrealised gains included above:
On listed investments 4,033 7,959
Reconciliation of movements inunrealised gains:
Unrealised gains as at 01 April 2020 7,579 6,692
Sub-total 5,119 6,691
Add net (losses) / gains arising on
revaluation arising in-year		 (1,086) 1,268
Total unrealised gains as at 31 March 2021 4,033 7,959

83

82

Annual Report and Financial Statements

Financial statements

Refers to note 14 Endowment funds

Bal. 01
April 2019
£000		 Income
£000		 Expenditure
£000		 Transfer
in / (out)
£000		 Investment
gain / (loss)
£000		 Total
2020
£000		 Total
2019
£000
LCF holds both expendable and permanent endowment funds. Many of LCF’s
endowment funds have benefited from match funding in addition to donations
made to funds, received from the government schemes Grassroots Grants
(2008-2011) and Community First (2012-2015). A selection of the funds, are listed
below along with totals for each scheme.
Expendable endowments – Grassroots Grants Funds:
Bromley
Community
Fund		 241 - (1) (5) (18) 217 241
Croydon
Community
Fund		 363 - (2) (7) (11) 343 363
Deutsche Bank
Fund		 584 - (3) 8 (49) 540 584
Evening
Standard
Dispossessed
Fund
(Croydon)		 197 - (1) 13 (15) 194 197
Evening
Standard
Dispossessed
Fund		 3,365 - (19) (58) (273) 3,015 3,365
Lambeth
Community
Fund		 224 - (1) (3) (6) 214 224
Peckham Fund 152 - (1) (3) (4) 144 152
Rolls-Royce
Fund		 35 - - (1) (3) 31 35
Ruth’s Fund 132 - (1) (3) (3) 125 132
Victoria
Foundation
Fund		 375 - (2) (9) (31) 338 375
Bal. 01
April 2019
£000		 Income
£000		 Expenditure
£000		 Transfer
in / (out)
£000		 Investment
gain / (loss)
£000		 Total
2020
£000		 Total
2019
£000
LCF holds both expendable and permanent endowment funds. Many of LCF’s
endowment funds have benefited from match funding in addition to donations
made to funds, received from the government schemes Grassroots Grants
(2008-2011) and Community First (2012-2015). A selection of the funds, are listed
below along with totals for each scheme.
Expendable endowments – Grassroots Grants Funds:
Bromley
Community
Fund		 241 - (1) (5) (18) 217 241
Croydon
Community
Fund		 363 - (2) (7) (11) 343 363
Deutsche Bank
Fund		 584 - (3) 8 (49) 540 584
Evening
Standard
Dispossessed
Fund
(Croydon)		 197 - (1) 13 (15) 194 197
Evening
Standard
Dispossessed
Fund		 3,365 - (19) (58) (273) 3,015 3,365
Lambeth
Community
Fund		 224 - (1) (3) (6) 214 224
Peckham Fund 152 - (1) (3) (4) 144 152
Rolls-Royce
Fund		 35 - - (1) (3) 31 35
Ruth’s Fund 132 - (1) (3) (3) 125 132
Victoria
Foundation
Fund		 375 - (2) (9) (31) 338 375
Bal. 01
April 2019
£000		 Income
£000		 Expenditure
£000		 Transfer
in / (out)
£000		 Investment
gain / (loss)
£000		 Total
2020
£000		 Total
2019
£000
Wandsworth
Educational
Fund		 131 - (1) (1) (10) 119 131
Westminster
~~Fund~~		 ~~395~~ ~~-~~ ~~(2)~~ ~~(9)~~ ~~(31)~~ ~~353~~ ~~395~~
~~Other~~

Grassroots
Grants Funds		 1,636 - (10) (15) (100) 1,511 1,636
~~Total~~ ~~7830~~ ~~-~~ ~~(44)~~ ~~(90)~~ ~~(552)~~ ~~7144~~ ~~7830~~
~~,~~ ~~,~~ ~~,~~
Expendable end owments - Comm unity First Fu nds:
Barnet Fund 431 - (3) - (11) 417 431
Friends Life
Fund		 21 - - - (2) 19 21
Give Camden
CF Endowment
Fund		 15 - - - 1 16 15
Land Securities
~~Caital~~
~~p~~
Commitment
Fund		 152 - (1) - (4) 147 152
Land Securities
~~Westminster~~

Fund		 220 - (1) - (6) 213 220
Living Cities
~~Communit~~
~~y~~
Fund		 995 140 (6) - (47) 1,082 995
London
Community
Foundation
~~Fund~~		 ~~68~~ ~~-~~ ~~-~~ ~~-~~ ~~(2)~~ ~~66~~ ~~68~~
Love Kingston
Fund		 122 - (1) (6) (1) 114 122
The London
Leg-Up Fund		 347 - (2) - (10) 335 347
Other
Community
First Funds		 3,257 6 (21) (40) (84) 3,118 3,257
Total 5,628 146 (35) (46) (166) 5,527 5,628
Expendable endowments - Other funds:

84

85

Annual Report and Financial Statements

Financial statements

Bal. 01
April 2019
£000		 Income
£000		 Expenditure
£000		 Transfer
in / (out)
£000		 Investment
gain / (loss)
£000		 Total
2020
£000		 Total
2019
£000
Cresswell Trust 66 - - (1) (6) 59 66
Lambeth
Endowment
Fund		 1,186 - (7) (17) (31) 1,131 1,186
Lewisham Fund 333 - (2) (7) (9) 315 332
Portuguese
Fund		 620 - (4) (9) (16) 591 620
South London
Opportunity
Fund		 158 - (1) (3) (4) 150 158
Wandsworth
Community
Fund		 515 (3) (4) (38) 470 515
Total 2,878 - (17) (41) (104) 2,716 2,878
Total
expendable
endowments		 15,387 16,336
~~Pt d~~ ~~t~~
~~ermanen en~~ ~~wmens:~~
Barnet
Endowment		 75 - - - (5) 70 75
BeaufoyTrust 1,399 - (8) - (35) 1,356 1,399

Refers to note 15 Restricted funds

Bal. 01
April
2019
£000		 Income
£000		 Expenditure
£000		 Transfer
in / (out)
£000		 Total
2020
£000		 Total
2019
£000
Grant making funds
Building Stronger Britain
Together		 27 32 (59) - - 27
Capco Earls Court Fund 1 153 (154) - - 1
Clarion - decorating fund (1) - 1 - - (1)
Clarion Business Start-up
Program		 10 - - (5) 5 10
Clarion Digital Communities
Fund		 15 (11) (4) - - 15
Clarion Re-Train Program 12 - (10) - 2 12
Clarion Re-Work Program 6 - (8) 4 2 6
Cockayne Fund 3 1,255 (1,243) - 15 3
Comic Relief RND
Community Cash		 17 - - (17) - 17
Deutsche Bank small grants
fund		 (17) 84 - 62 129 (17)
Elephant and Castle
Community Fund
(Lendlease)		 54 50 (54) 2 52 54
Evening Standard Food for
London - Citi funded		 33 - - - 33 33
Evening Standard Food for
London - Grants fund		 18 - 4 - 22 18
Evening Standard
Dispossessed Fund Angel
Town		 6 - (6) - - 6
Evening Standard
Dispossessed Fund - Save
London Lives		 206 680 (1,011) (1) (125) 206
Evening Standard
Dispossessed Fund –
Homelessness Fund		 - 344 (80) - 264 -

86

87

Annual Report and Financial Statements

88

Financial statements

Bal. 01
April
2019
£000		 Income
£000		 Expenditure
£000		 Transfer
in / (out)
£000		 Total
2020
£000		 Total
2019
£000
Evening Standard
~~Did Fd Th~~
~~spossesse un – e~~
Excluded Initiative		 - 225 - - 225 -
~~Grenfell Children and~~
YoungPeople's Fund		 1,166 46 (571) - 641 1,166
Lambeth - Healthier for
Longer 48 - 5 - 53 48
Lambeth WellbeingFund 12 78 (73) - 17 12
LandSec - Capital
Commitment fund		 51 - (40) 4 15 51
LandSec - Westminster fund 71 - (21) 9 59 71
LivingCities Community
Fund 33 - (65) 157 125 33
London Communities
Coronavirus Appeal		 - 6 - - 6 -
London Impact Awards - 129 (129) - - -
Mayor's Office for Policing&
Crime (MOPAC) 60 (30) (23) - 7 60
Mayor's Office for Policing &
Crime(MOPAC)- Violence
Against Women and Girls
Fund		 -
26		 (18) -
8		 -
Mayor's Office for Policing &
Crime (MOPAC) - Violence
~~Reduction Unit Fund~~		 ~~-~~ ~~1297~~ ~~(1368)~~ ~~-~~ ~~(71)~~ ~~-~~
~~,~~ ~~,~~
Microsoft Fund - 70 -
-		 70 -
Mohn Westlake Foundation
Fund - 90 (180) - (90) -
Norton Rose Fulbright fund 9 28 (40) 28 25 9
~~2~~ ~~42~~
~~Peabody Community Fund~~ ~~7~~ ~~700~~ ~~(95)~~ ~~-~~
~~1~~		 ~~7~~
Redbridge Community
Projects Fund		 (3) - -
3		 - (3)
Regents Place Community
Fund		 1 - (1) -
-		 1
Sport England Active
Communities Fund		 224 - (218) -
6		 224
The Segro Community Fund
for London		 9 60 (93) 27 3 9
Bal. 01
Aril		 Income
£000		 Expenditure
£000		 Transfer
in / (out)		 Total
2020		 Total
2019
p
2019
£000
£000
£000
£000
The Wembley Park
~~Community Fund~~ ~~114~~ ~~85~~ ~~(123)~~ ~~-~~
~~76~~		 ~~114~~
UKCF & National
~~Emergencies Trust~~
Coronavirus Appeal

(London Allocation)		 -
46		 - - 46 -
UKCF Tampon Tax
Community Fund		 9 315 (315) -
9		 9
Unlocking Potential 26 - - (12) 14 26
Wimbledon Foundation
Community Fund 66 63 (129) -
-
66
Youth Social Action -
416		 (252) (20) 144 -
Other grant making funds 402 1,651 (2,070) 153 136 402
Total grant making funds 2,695 7,888 (8,643) 394 2,334 2,695
Endowment funds (revenue

element)
Beaufoy Trust 22 34 18 - 74 22
Bromley Community Fund -
3		 -
(4)		 (1) -
Croydon Community Fund 12 8 (13) 7 14 12
Deutsche Bank Fund 59 10 -
(70)		 (1) 59
~~Evening Standard~~

Dispossessed Appeal Fund -
Croydon		 21 6 - (13) 14 21
Evening Standard
Dispossessed Fund		 276 82 - 53 411 276
~~Lambeth Endowment Fund~~ ~~16~~ ~~5~~ ~~-~~ ~~3~~ ~~24~~ ~~16~~
Living Communities Fund 138 19 - (157) -
138
London Community
Foundation Fund 3 2 - -
5		 3
Love Kingston Fund (9) 2 - 6 (1) (9)
~~9~~ ~~3~~ ~~1~~ ~~9~~
~~Peckham Fund~~ ~~()~~ ~~5~~ ~~-~~ ~~()~~ ~~()~~
Pedlar's Acre Trust 85 5 (103) 89 76 85
Richmond Civic Trust 12 11 (9) 1 15 12
The London Leg Up Fund (11) 8 - - (3) (11)
Victoria Foundation Fund 13 9 (14) 6 14 13

89

Annual Report and ~~Financial Statements~~

Financial statements

ancial
tements
Bal. 01 Income Expenditure Transfer Total Total
April £000 £000 in / (out) 2020 2019
2019 £000 £000 £000
£000
Wandsworth Community
~~Fund~~ ~~(2)~~ ~~17~~ ~~(15)~~ ~~4~~ ~~4~~ ~~(2)~~
Westminster Fund 33 7 -
9		 49 33
Other endowment funds
~~(income element)~~ ~~787~~ ~~207~~ ~~(250)~~ ~~(76)~~ ~~666~~ ~~787~~
~~Total endowment funds~~
(revenue element) 1,446 440 (386) (139) 1,361 1,446
Total restricted Funds 4,141 8,328 (9,029) 255 3,695 4,141

~~Refers to note 17 Funds of Pedlar~~ ’ ~~s Acre Trust~~

Bal. 01
April
2019		 Income
£000		 Income
£000		 Expenditure
£000		 Expenditure
£000		 Transfer
in / (out)
£000		 Total
2020
£000		 Total
2020
£000		 Total
2019
£000

£000
Wandsworth Community
~~Fund~~ ~~(2)~~ ~~17~~ ~~(15)~~ ~~4~~ ~~4~~ ~~(2)~~
Westminster Fund 33 7 -
9		 49 33
Other endowment funds
~~(income element)~~ ~~787~~ ~~207~~ ~~(250)~~ ~~(76)~~ ~~666~~ ~~787~~
~~Total endowment funds~~
(revenue element)		 1,446 440 (386) (139) 1,361 1,446
Total restricted Funds 4,141 8,328 (9,029) 255 3,695 4,141
~~Refers to note 17 F~~ ~~unds o~~ ~~f Pedl~~ ~~ar~~’~~s Acr~~ ~~e Trust~~
LCF P edlar’s Acre
~~Trust~~
Total 2 020 £000
£000 £000
On 21 May 2009 the Charity Commissi on authoris ed a unitin g direction for regis tration
and accounting purposes be
1091263) and Pedlar’s Acre T
~~diti th t f Pdl~~		 tween Th
rust (char
~~’ A T~~		 e London
ity no. 205
~~t~~		 Community
817). At the
~~ld t £1~~		 Foundatio
date of th
~~43330~~		 n (char
e uniting		 ity no.
~~recon e asses o ear~~ ~~s cre r~~ ~~s were v~~ ~~ue a ,~~ ~~,.~~
The transactions and assets
2020 are
~~shown below:~~		 of the se parate ch arities for t he year en ded 31 March
Opening balance at 1 April 2 019 23,198 2,580 25,778
Income 9,738 58 9,796
Expenditure (10,390) (15) ( 10,405)
Fund transfers in/(out) (note 2 2) 90 (90) -
Gain on investments (905) (205) (1,110)
Net movement in funds (1,467) (252) (1,719)
Closing balance as at 31 Mar ch 2020 21,731 2,328 24,059
~~Tangible fixed assets~~ ~~13~~ ~~-~~ ~~13~~
Fixed asset investments 18,458 2,328 20,876
~~Debtors~~ ~~585~~ ~~-~~ ~~585~~
Cash at bank and in hand 5,195 - 5,195
Creditors: amounts falling due within
one year		 (2,520) - (2,520)
Net assets at 31 March 2020 21,731 2,328 24,059
Bal. 01
April
2019		 Income
£000		 Income
£000		 Expenditure
£000		 Expenditure
£000		 Transfer
in / (out)
£000		 Total
2020
£000		 Total
2020
£000		 Total
2019
£000

£000
Wandsworth Community
~~Fund~~ ~~(2)~~ ~~17~~ ~~(15)~~ ~~4~~ ~~4~~ ~~(2)~~
Westminster Fund 33 7 -
9		 49 33
Other endowment funds
~~(income element)~~ ~~787~~ ~~207~~ ~~(250)~~ ~~(76)~~ ~~666~~ ~~787~~
~~Total endowment funds~~
(revenue element)		 1,446 440 (386) (139) 1,361 1,446
Total restricted Funds 4,141 8,328 (9,029) 255 3,695 4,141
~~Refers to note 17 F~~ ~~unds o~~ ~~f Pedl~~ ~~ar~~’~~s Acr~~ ~~e Trust~~
LCF P edlar’s Acre
~~Trust~~
Total 2 020 £000
£000 £000
On 21 May 2009 the Charity Commissi on authoris ed a unitin g direction for regis tration
and accounting purposes be
1091263) and Pedlar’s Acre T
~~diti th t f Pdl~~		 tween Th
rust (char
~~’ A T~~		 e London
ity no. 205
~~t~~		 Community
817). At the
~~ld t £1~~		 Foundatio
date of th
~~43330~~		 n (char
e uniting		 ity no.
~~recon e asses o ear~~ ~~s cre r~~ ~~s were v~~ ~~ue a ,~~ ~~,.~~
The transactions and assets
2020 are
~~shown below:~~		 of the se parate ch arities for t he year en ded 31 March
Opening balance at 1 April 2 019 23,198 2,580 25,778
Income 9,738 58 9,796
Expenditure (10,390) (15) ( 10,405)
Fund transfers in/(out) (note 2 2) 90 (90) -
Gain on investments (905) (205) (1,110)
Net movement in funds (1,467) (252) (1,719)
Closing balance as at 31 Mar ch 2020 21,731 2,328 24,059
~~Tangible fixed assets~~ ~~13~~ ~~-~~ ~~13~~
Fixed asset investments 18,458 2,328 20,876
~~Debtors~~ ~~585~~ ~~-~~ ~~585~~
Cash at bank and in hand 5,195 - 5,195
Creditors: amounts falling due within
one year		 (2,520) - (2,520)
Net assets at 31 March 2020 21,731 2,328 24,059
LCF Pedlar’s Acre Total 2020 £000
~~Trust~~
£000 £000
Funds of the charities
Expendable endowment funds 15,387 - 15,387
Permanent endowment funds 1,882 2,328 4,210
Restricted funds 3,695 - 3,695
Unrestricted funds 767 - 767
Closing balance at 31 March 2020 21,731 2,328 24,059

~~Refers to note 18 Application of the power of total return to Pedlar’s Acre Trust~~

2020
2019
~~£000~~
~~£000~~
~~The investment power of total return was granted by a Charity Commission Order on~~
17 January2011. The charityreceived advice from its legal advisors Bates Wells &
Braithwaite regarding the use of the power and ensuring its use does not prejudice
~~the ability of the Charity to support both current and future beneficiaries.~~
~~This power permits the trustees to invest permanently endowed funds to maximise~~
total return and apply an appropriate portion of the unapplied total return income
~~each year. Until the power is exercised to transfer a portion of unapplied total return~~
to income (as disclosed in the note below), the unapplied total return remains
invested as part of the permanent endowment.
The trustees have selected the date of the valuation for total return purposes to be
the value of the endowed fund at 31 March 2004. Pedlar's Acre Fund has been in
~~existence since the 17th century, however no valuation is available for the charity~~
prior to 31 March 2004. At this date Pedlar's Acre Trust Fund was valued at £1,836,806.
The note below shows the opening unapplied total return and fund transfer in the
~~year.~~
~~The power of total return allows the Trustees to decide in each year how much of the~~
unapplied total return is transferred to income funds and so available forgrant
making expenditure. During the year to 31 Mar
ch 2020 the Trustees elected to
~~transfer 3.5% of the value of the fund as at 31 December 2019 to income funds, 3.5%~~
being the amount LCF aims to spend of its permanent endowment funds holding
Total Return power under its endowment spending policy. The Trustees decided that
the duty to be even-handed to future and present beneficiaries was fulfilled by
following LCF's standard policy in 2019/20
The investment fund and application of total return to permanent endowment funds
is as follows:
Opening value of permanent endowment 01 April 2019
2,580
2,580
Less: Value of endowment at 31 March 2004
(1,837)
(1,837)
2020
2019
~~£000~~
~~£000~~
~~The investment power of total return was granted by a Charity Commission Order on~~
17 January2011. The charityreceived advice from its legal advisors Bates Wells &
Braithwaite regarding the use of the power and ensuring its use does not prejudice
~~the ability of the Charity to support both current and future beneficiaries.~~
~~This power permits the trustees to invest permanently endowed funds to maximise~~
total return and apply an appropriate portion of the unapplied total return income
~~each year. Until the power is exercised to transfer a portion of unapplied total return~~
to income (as disclosed in the note below), the unapplied total return remains
invested as part of the permanent endowment.
The trustees have selected the date of the valuation for total return purposes to be
the value of the endowed fund at 31 March 2004. Pedlar's Acre Fund has been in
~~existence since the 17th century, however no valuation is available for the charity~~
prior to 31 March 2004. At this date Pedlar's Acre Trust Fund was valued at £1,836,806.
The note below shows the opening unapplied total return and fund transfer in the
~~year.~~
~~The power of total return allows the Trustees to decide in each year how much of the~~
unapplied total return is transferred to income funds and so available forgrant
making expenditure. During the year to 31 Mar
ch 2020 the Trustees elected to
~~transfer 3.5% of the value of the fund as at 31 December 2019 to income funds, 3.5%~~
being the amount LCF aims to spend of its permanent endowment funds holding
Total Return power under its endowment spending policy. The Trustees decided that
the duty to be even-handed to future and present beneficiaries was fulfilled by
following LCF's standard policy in 2019/20
The investment fund and application of total return to permanent endowment funds
is as follows:
Opening value of permanent endowment 01 April 2019
2,580
2,580
Less: Value of endowment at 31 March 2004
(1,837)
(1,837)

90

91

Annual Report and Financial Statements

Financial statements

~~2020~~ ~~2019~~
£000 £000
Opening value of unapplied total return at 01 April 2019 743 743
Add: Investment return Income 58 63
Add: Investment return unrealised (loss) / gain on
~~investment~~ (205) 107
Less: Investment management and legal costs (15) (20)
Unapplied total return before transfer to income 581 893
Less: unapplied total return applied** (90) (150)
Sub-total unapplied total return as at 31 March 2020 491 743
Add: Value of endowment at 31 March 2004 1,837 1,837
Permanent endowment including unapplied total return as
at 31 March 2020 2,328 2,580
~~** During 2017/18 the transfer made for the unapplied total return was incorrect. An~~
additional transfer has been made in 2018/19 to account for the difference.
Therefore, the transfer made in 2018/19 consists of £96,724.46 relating to 2018/19, and
an additional £53,422.05 relating to 2017/18, giving a combined total of £150,166.5.

93

92

Annual Report and Financial Statements

Contact

Acknowledgements

Design: Strudel Front cover image: Zach Lucero from unsplash.co.uk

Contact

The London Community Foundation Unit 1.04, Piano House 9 Brighton Terrace London SW9 8DJJ

londoncf.org.uk info@londoncf.org.uk +44 (0)20 7582 5117 Twitter: @London_cf

Registered charity number 1091263 Company limited by guarantee number 4383269

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94

The London Community Foundation londoncf.org.uk