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2023-03-31-accounts

Annual report and financial statements

For the year ended 31 March 2023

Who we are

We are the community foundation for London. We help you make a difference to London, where it matters most. We believe in the vital role local community organisations play in rising to London’s challenges. We also believe in the generosity and solidarity of Londoners wanting to make a difference to where they live and work.

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Annual report and financial statements

The London Community Foundation

Our task is to champion local organisations by connecting funders to them, channelling funds to their work, and supporting them directly to be stronger.

Since 2010, we have committed over

£116 million

in grants to support London’s grassroots organisations

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Ir 114

Contents

Chair’s statement 06
Chief Executive’s welcome 08
Our impact 10
Crisis: a lifeline for communities 10
Young people: vital opportunities for young Londoners 12
Women: stepping in where others can’t 14
A year at The London Community Foundation 16
Annual report and financial statements 18
Report of the Trustees 19
Legal and administrative information 19
Objectives and activities
Public beneft statement		 23
28
Achievements and performance 29
Financial review 31
Principal risks and uncertainties 37
People and pay 40
Future plans for 2023/24 46
Our approach to fundraising 48
Statement of Trustees’ responsibilities 49
Independent auditor’s report to the members
of The London Community Foundation 50
Statement of fnancial activities 56
Summary income and expenditure account 57
Balance sheet 58
Statement of cash fows 59
Notes to the Accounts 60

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Chair’s statement

Local giving matters

For philanthropists in London, the abiding message of the last year is clear: your local giving matters. Newcomers or veteran philanthropists, individual or corporate, the importance of your commitments to London’s communities needs to be celebrated and championed.

As we publish this annual report amidst a costof-living crisis, what this year has demonstrated so starkly, is how the most vulnerable are always disproportionately impacted by society’s challenges. But we also know that local philanthropy can help. Local giving to charities on our doorstep can give hope, belonging and empathy where there is often desperation, fear, and loneliness. That is why community foundations exist. That is why as the community foundation for London we champion local giving.

Reflecting on this year, donors who gave to our Together for London appeal demonstrated two important lessons. They endorsed how grassroots organisations quickly reach those most in need, often when other institutions or agencies cannot. And they showed what can be achieved when we give collaboratively to support charities during a crisis.

This year saw us conclude two major programmes of work addressing issues that really matter to London. In September, we celebrated our

Save London Lives programme (delivered as part of the Evening Standard Dispossessed Fund). A collaborative, 3-year programme supporting 53 organisations tackling violence affecting young people. In the evaluation and at our event, we heard how the co-designed support, flexible multiyear funding and opportunity to come together as a capital-wide movement supporting our young people, had a deep and lasting impact on the charities. In March, our Violence Against Women and Girls Grassroots Fund , the first phase of our work with the Mayor’s Office for Policing and Crime investing in community organisations tackling violence against women and girls came to an end. This has been a profoundly important fund for London and for us. As part of the fund, we provided financial support and raised the profile and value of 41 specialist community organisations who are providing culturally informed support for women and girls affected by violence and abuse, organisations delivering vital services but who often operate under the radar of public support.

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Annual report and financial statements

Our work this year demonstrates that positive change can be achieved when tackling some of London’s greatest social needs. It also highlights the value and power of giving back to the city that also gives much.

I am proud to work alongside colleagues at The London Community Foundation (LCF) who share a vision to help build thriving communities right across London. My thanks to them for their commitment and achievements of the last 12 months.

Russell Prior

Chair The London Community Foundation

The London Community Foundation

Our impact across London

£14,167,000 awarded to charitable organisations

649

grants awarded

£22,730 was the average grant size committed

15%

of the organisations we supported were new to us

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Chief Executive’s welcome

Ensuring resilience in a time of crisis

Our local charities are not the nice-to-haves as perceived by some people. They are, increasingly, lifelines to our most marginalised neighbours.

In the past year, we have seen how our communities would be worse off without local charities. From the woman placing her trust in a specialist domestic abuse charity that understands her language or culture; to a teenager desperate to find work away from a life at risk of violence; to a refugee seeking human connection in a new city. They are a lifeline.

In December and March, we distributed over £2 million to 218 community groups responding to the cost-of-living crisis. In February, we worked with the British Red Cross to distribute funds to community groups supporting Ukrainian refugees. Today these charities have become our trusted connectors in a crisis.

But this year I have carried a fear. After COVID we very quickly found ourselves in a cost-of-living crisis. With no time to recover, local charities transitioned from vital provision during an emergency, to an essential service in a crisis. And my fear? For their resilience and financial survival? Yes. For the wellbeing of their people? Absolutely. But my fear has

centred on perception and sustainability. Our work connecting partners to local charities has never felt more important. If the services they provide are now essential for our most vulnerable, then we need to radically change the way we fund them and how their voice and expertise are heard. It is our task to support and influence, to encourage more long-term funding, proportionate reporting and engagement that demonstrates respect for their time and expertise. This is how we build trust. Good local philanthropy is possible, and its effects are felt beyond the lifetime of a financial gift.

Some of the greatest need is on our doorstep in our own communities and we encourage those who can, to think about giving locally as part of their philanthropy, we have seen first-hand how rewarding and fulfilling it can be. Despite the economic challenges, we have been the catalyst for over £14 million in giving for London’s communities, our highest on record outside of managing emergency funds (the Grenfell fire and the pandemic).

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Annual report and financial statements

The London Community Foundation

Our impact and financial results tell a strong story of how our team has adapted and responded to the challenging environment we work in as well as acclimatising to new hybrid working practices. We are trying to balance the benefits to personal wellbeing with a commitment to fostering a culture of belonging, supporting new staff and wider team development. I am, as ever, bowled over by their drive to create a more equal London and humbled by their commitment to its communities.

With my thanks,

Kate Markey CEO The London Community Foundation

Our values and behaviours

Our vision: A strong and diverse civil society, that tackles disadvantage and creates greater equity in London.

Our purpose: Through good philanthropy, our knowledge and expertise, we convene donors to invest in charitable organisations working to overcome the issues affecting London.

Our values:

We are equitable We are accountable We are responsive We are collaborative We are impactful

Our behaviours: Inclusive Adaptable Trustworthy Pragmatic Respectful Enterprising

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Our impact: crisis

A lifeline for communities

“The funding has come at a time of need when charities are facing challenges due to the pandemic. By accessing paid work, volunteering or training, young people will boost their mental health, confidence, and skills, and generally enhance their quality of life in the long term.”

Mortlake Community Association, one of our Together for London Fund community projects

Even in ‘normal’ times, London is a polarised city of haves and have-nots. We strongly believe that communities defined by the disadvantage they experience also have the insight, networks and resilience to be the positive change. LCF’s role is to support them in this.

Our community partners made it clear that the rise in inflation was causing a crisis for their communities. As the community champion for London, we had to act - launching our cost-ofliving Together for London Fund.

From Grenfell to COVID-19, the Afghan refugee crisis and now the cost-of-living crisis, LCF (like our fellow community foundations around the UK and beyond) has a long history of responding.

Humanitarian aid is not community foundations’ ‘business as usual’. And yet in times of crisis it is. Why? Because we understand, champion and amplify the importance of ‘small and local’ and the power of common good. We work hard to reach those trusted groups working deeply in our communities, day in, day out. These organisations reach people whom local authorities and bigger charities sometimes cannot.

When we opened the Together for London Fund we knew our city’s need was great. But we never could have predicted the 656 applications we received. Each one was a story of compassion - delivering food, essential items, mental health and wellbeing sessions, financial and welfare advice to Londoners in need.

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Annual Report and Financial Statements

The London Community Foundation

Funding and support

£2,109,000 awarded to 215 community projects across London

83%

of projects supported the priority communities who were most affected by the crisis including Black and Minoritised Ethnic (BME) communities, people with disabilities, older people, carers, and those affected by homelessness

79%

of organisations funded were small local community organisations with an income of less than £300,000 per year

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Our impact: young people

Vital opportunities for young Londoners

”By supporting our core costs, The London Community Foundation is enabling Caxton to grow flexibly and respond decisively to the evolving needs of young people and the wider community.”

Caxton Youth Organisation, one of our Youth Futures Fund partners

Young people under 25 represent almost a third of London’s population. They have been hit hard by the pandemic and the cost-of-living crisis. In 2022/23, we helped young people improve their wellbeing, reduce isolation, gain vital skills and address the issue of violence.

Our Youth Futures Fund , in its second year, brought various donors together including Bank of Ireland , to provide skills, training, and employability opportunities to help young people stay in education or find work. £260,000 was awarded to seven community organisations who will support 1,335 young people in their local communities.

This focus on skills was mirrored in our Skill Up, Step Up programme, a £1m partnership with Barclays Lifeskills and the Evening Standard . Our five partner charities help young people fulfil their potential, with the vital support they need to stay engaged in education, get training and find quality work. Despite the economic downturn, 89% of those in the programme have been placed in jobs or apprenticeships.

2022 was also a time to reflect on our four-year Save London Lives programme in partnership with the Evening Standard . The programme recognised the vital role community organisations play in reducing the risk of violence for young people in their local areas. Projects varied from youth work to family support, anti-knife workshops in schools to trauma training. 88% of grantees said the programme enhanced young people’s safety.

But as this fund closed, another opened. The Young People’s Fund , in partnership with Peabody Community Foundation , supports community groups putting youth voice at the centre of their work to tackle violence affecting young people. In January 2023, a panel of young people from across London awarded £128,188 to organisations addressing the issue of violence affecting young people in the boroughs of Westminster, Southwark, Waltham Forest, Lambeth and Hackney.

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Annual report and financial statements

The London Community Foundation

Funding and support £2,600,000

of our funding was awarded to community organisations supporting children and young people

18%

of our overall funding was focused on children and young people

89%

of those in the Skill Up, Step Up programme have been placed in jobs or apprenticeships.

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Our impact: women

Stepping in where others can’t

“It’s so important that small charities are given a chance because small charities have so much to give and they are so closely aligned to the beneficiaries.” BelEve UK, one of our VAWG Grassroots Fund community projects

There are over four million women and girls living in London. But their experiences in our city vary hugely. Dynamics related to poverty, race, culture, community, religion, and language mean their experiences and the challenges they face are layered, with many being marginalised, unable to access the same opportunities as others.

Support for London’s women can be found in the local, small, community organisations we fund. Trusted and turned to by the most excluded and alienated women, these organisations are founded and run by remarkable, ordinary women who recognise, and have often lived through, the same struggle. Women who turn up every day to provide support for the women in their communities.

Nowhere has this support been more apparent than with our £2m Violence Against Women and Girls (VAWG) Grassroots Fund , in partnership with the Mayor’s Office for Policing and Crime (MOPAC) , which finished in March 2023. The VAWG Grassroots Fund provided two-year core cost grants of up to £100,000 accompanied by a bespoke learning programme that was co-designed with grantees on the fund. The fund supported 41 London-based grassroots VAWG organisations, all run by and for minoritised communities, with 75% led by women of colour. 17,443 women and girls were supported throughout the two-year period, and an estimated 184,668 indirect beneficiaries were reached. After its first year, 100% of the VAWG funded organisations share that survivors they support are better able to cope with aspects of everyday life.

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Annual report and financial statements

The London Community Foundation

Funding and support

£845,000

of our funding was awarded to community organisations supporting women

6%

of our total funding was focused on supporting women £4,500,000

of our funding was awarded to community organisations supporting Black and Minoritised Ethnic communities

28%

of our total funding was focused on supporting Black and Minoritised Ethnic communities

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A year at The London Community Foundation

April

We launch our first environment fund, Greener Futures Fund , on behalf of Grosvenor , awarding over £230,000 to 9 projects taking local action on climate change

May

Wimbledon Foundation , our longstanding partner, awards over £217,000 through the Wimbledon Foundation Community Fund and Community Fund+ to local community projects near their famous grounds

June

‘Collaboration in the Capital: lessons from the pandemic’ , our COVID-19 impact report, is published

71 community art activities were supported over the Queen’s Platinum Jubilee weekend as part of the Let’s Create Jubilee Fund we delivered on behalf of the Arts Council England

Phase 2 of the Pathways to Economic Opportunities Programme , supported by JPMorgan Chase officially launches, awarding £1.5 million to 19 BME-led organisations supporting employability, enterprise and financial health

July

We welcome two new Trustees: Satnam Sagoo and Fiona Bickley

We survey our network of community organisations to ask how the rise in inflation is starting to affect their organisations and communities

August

Our Together for London appeal is launched to help communities, especially those who are marginalised and excluded, to cope with the costof-living crisis

Deutsche Bank Opportunity Fund awards over £159,000 to community projects tackling homelessness

September

We mark the end of our four-year Evening Standard Dispossessed Fund: Save London Lives at an event with 56 community organisations, young Londoners and donors

Lambeth Community Fund in partnership with Lambeth Council opens for the first time since the pandemic and awards over £256,000 to 16 community projects in Lambeth

The Peabody Community Fund awards over £370,000 in its 15th round to local community projects benefitting their residents

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Annual report and financial statements

October

The London Community Foundation

January

Our Youth Futures Fund awards £240,000 to 8 organisations working to boost young people’s skills and employability

Cockayne – Grants for the Arts awards £1,507,000 to support 96 creative projects and the arts across London

The Young People’s Fund in partnership with Peabody awards over £128,000 to 7 organisations supporting young people

February

Our Together for London appeal receives donations from Allen & Overy , City Bridge Trust and M&G plc totalling £2.2 million raised

Ukrainian Refugee Support Fund in partnership with British Red Cross awards £60,000 to 6 community projects helping Ukrainian refugees build new lives in the Capital

March

Our 17 London Marathon runners raise an incredible £22,000 running for London!

Our Together for London appeal receives pivotal donations from Bank of Ireland and Trust for London , totalling £1 million raised

November

Stanhope Foundation awards £285,000 to support 6 charities providing employment and skills support to Londoners including young people, the homeless and those affected by cancer

A further £1 million of emergency grants awarded to 114 organisations as part of our Together for London Fund

The Peabody Community Fund awards over £499,000 in its 16th round to local community projects benefitting their residents

December

Emergency grants totalling £1 million are awarded to support 104 community organisations through the cost-of-living crisis through the Together for London Fund

The Safe Accommodation PIE fund, in partnership with the Greater London Authority and MOPAC , opens for applications to improve existing safe accommodation for women and girls experiencing abuse and violence

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Trustees report

Annual report and financial statements For the year ending March 2023

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

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Annual report and financial statements

The London Community Foundation

Report of the Trustees

The Trustees present their annual statutory report together with the financial statements of The London Community Foundation for the year ending 31 March 2023. 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. We can confirm that qualifying third party indemnity insurance was held on behalf of the company directors during the year.

Legal and administrative information

Name of charity:

The London Community Foundation (LCF)

Status:

Charity registered in England and Wales: 1091263 Company limited by guarantee registered in England and Wales: 4383269

Principal office and registered address:

7-14 Great Dover Street London SE1 4YR

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Trustees’ report

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 (to September 2023)

Genine Whitehorne

(Chair of People Committee from June 2022)

John Hume

(Chair of Programmes and Impact Committee)

Natalie Creary

Veesh Sharma

(Chair of Audit, Risk and Investment Committee)

Urmi Dutta-Roy

Owen Jenkins

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 (to June 2022): Director of Grants and Impact

Kate Stewart (from June 2022): Director of Grants and Impact

Laura Perkins

Director of Development and Communications

Maureen Sebanakitta

Chief Operating Officer (from September 2022)

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:

NatWest

504 Brixton Road London SW9 8EW

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

Satnam Sagoo (from July 2022)

Fiona Bickley (from July 2022)

Sanjay Mazumder (resigned May 2022)

Scott Greenhalgh (resigned June 2022)

Auditor:

MHA LLP

Sixth Floor 2 London Wall Place London EC2Y 5AU

Investment managers: CCLA Investment

Management Limited – Investment of Endowment

Senator House 85 Queen Victoria Street London EC4V 4ET

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Annual report and financial statements

The London Community Foundation

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Trustees, report 22

Annual report and financial statements

The London Community Foundation

Objectives and activities

Our vision is of a strong and diverse civil society, that tackles disadvantage and creates greater equity in London.

Our mission is through good philanthropy, our knowledge and expertise, we convene donors to invest in charitable organisations working to overcome the issues affecting London.

persons for whom the opportunities and facilities are primarily intended.

2. 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.

London is the greatest city in the world. But it is a polarised city, of extreme inequality, of haves and have-nots.

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

Our core activities are:

We believe in the vital role of local community organisations in making London a fairer place for everyone. We also believe in the generosity and solidarity of Londoners wanting to make a difference where they live and work.

We know communities can identify their own responses to the challenges they face, but often lack the resources. Our task is to support them; to help make a difference in London by championing local organisations, connecting funders to them, channelling funds to their work, and supporting them directly to be stronger.

Our objectives, as defined in the Memorandum and Articles of Association are:

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

We strive to make our funding process proportionate and accessible to small organisations. Our website provides resources and support to potential applicants seeking funding. This can include information to help applicants decide if they want to apply such as fund size and the anticipated number of grants to be awarded. Our Grant Standard Operating Procedures are grounded in respecting the time and expertise of grassroots organisations seeking to partner with us whilst being accountable for the funds we manage for donors and partners.

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

We believe in listening, and trusting people to know what their challenges are , and what resources they need to overcome them. This means we respond to their priorities. We channel funds to local community organisations which are making a real difference in their community . We are there to offer support and help them get stronger , to be more resilient and more secure, so people can depend on them, feel connected and have hope for their future.

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Trustees’ report

Objectives and activities (continued)

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

We champion local community organisations, advocate for their vital role in bringing London together to address the capital’s challenges and promote the power of local philanthropy to build connections between communities, and businesses and funders.

We understand small, local organisations, and have the expertise, reach and connections that give our partners confidence in the work they are funding. We find community organisations working to tackle the issues that matter most to London and support our partners to have an easy and fulfilling giving experience .

Our work also includes thought leadership and engagement across London’s philanthropic landscape, private banks, and wealth advisory and intermediary services.

3. Fund management and grant-making services:

Through our Donor Advised Fund (DAF) model, we provide professional investment services to donors setting up and managing permanent and expendable endowment funds. We work 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 our established and professional 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 their clients’ in giving.

We provide this work as The London Community Foundation and in partnership with our peer Community Foundations around the UK on national programmes and contracts secured by UKCF, the membership and accreditation body.

As of 31 March 2023, The London Community Foundation held £22,576k (2022: £24,050k) in endowment funds; this variance is due to fluctuations in market value during the year.

Endowment funds held have been raised primarily through:

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Annual report and financial statements

The London Community Foundation

Grant making policy

The London Community Foundation awards grants in line with the charitable objectives stated above to organisations that meet the following eligibility criteria:

Legal structures:

Governance

The organisation must have at least three unrelated members legally responsible for the governance of the organisation.

Bank account

The organisation must have a bank account registered in its legal name with a minimum of two unrelated signatories.

Grants are managed through specific agreements with grantees, which set out the conditions of the grant, including reporting requirements, and when and how disbursement will happen. The agreement also outlines LCF’s responsibilities to ensure that it can be held to account by partners and other stakeholders. Grants are usually disbursed in instalments to ensure that agreed timings and results are being met and managed.

LCF staff monitor and evaluate progress throughout the period of the grant. The nature of these activities will depend on the size and complexity of the grant and the perceived level of risk.

Monitoring and evaluation may include:

The full policy is on our website and is accessible via this link: London Community Foundation | Eligibility criteria (londoncf.org.uk).

Safeguarding

The organisation must have a safeguarding policy in place that meets the requirements as listed in LCF’s safeguarding checklist.

A decision to award a grant will consider any restrictions imposed by the donor in line with charity law.

Structure, governance and management

The London Community Foundation 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.

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Trustees’ report

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 open and competitive recruitment process. 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 2023 LCF had 10 trustees (maximum 18) with the Board agreeing its optimal number is between 10 and 12. This is supported by a skills and expertise audit and a Board performance review every two years.

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 organisational information before interview. New Trustees receive key induction information including Memorandum and Articles, the 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. Ongoing training is provided by way of online events and external training.

Structure

New board appointments in 22/23 bolstered LCF’s people, culture, investment and finance expertise and continued our commitment to ensure the Charity has not only the skills we need, but also the diversity of lived experience and perspective in London. Work across the Board and team has increased in the year, building on an inclusive culture and vision for LCF to help tackle inequality and disadvantage in the Capital through our unique role as The London Community Foundation.

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 and funding. The Committee also has the power to delegate authority to approve grants to senior staff in line with a delegated authority framework. Delegated authority currently sits with the Senior Management Team (SMT) for standard risk grants under £50k and the Middle Management Team (MMT) along with SMT for those under £25k.

The Programmes and Impact Committee is responsible for overseeing:

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Annual report and financial statements

The London Community Foundation

Structure (continued)

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, investments risk and assurance, property, and health and safety. The committee is responsible for:

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

The Supporter Engagement Committee met twice during the year. 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 18 (2022:19).

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 Sub-Committees. It also presents proposals on forward strategy.

LCF is a member of UK Community Foundations (UKCF), the membership and accrediting body that supports and promotes community foundations in the UK. There are 47 community foundations serving most of the UK population. The network of community foundations gives grants totalling around £100 million annually. Together, this makes us the UK’s fourth largest grant-maker holding over £700 million in endowments. 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.

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Trustees’ report

Public benefit statement

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.

The remainder of this report sets out LCF’s objectives, and reports on the activity and successes in the year to 31 March 2023, as well as explaining the plans for the current financial year. LCF’s work benefits a range of local London charities, community groups and their beneficiaries.

The trustees have considered this matter and concluded that:

1. The aims of the organisation continue to be charitable

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

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

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

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Annual report and financial statements

The London Community Foundation

Achievements and performance

LCF’s vision, purpose and charitable objectives are captured on page 23 above. Our objectives for 2022/23 were set within the context of our strategic objectives. These, as well as our achievements are summarised below.

----- Start of picture text -----
Strategic objective Achievement
Foster a culture of belonging · Created new organisational values and behaviours that reflect equity,
and inclusion across the LCF team diversity & inclusion
and Board · Launched a programme of monthly team-led EDI forums to discuss EDI issues.
As part of this we invited grantee organisations to share their experiences to
learn from them
· Launched a new recruitment policy and procedures with an EDI lens
· Completed the annual diversity survey for staff and Trustees for the fourth year
· Reviewed and rolled out an inclusive performance evaluation process for staff
Engage our current and prospective · Launched key campaigns to advocate and raise funds for grassroots charities
donor markets through external in the Capital, including Together for London and #HeroesofLondon
communications · Held events and round-tables for donors throughout the year on issues
that matter to London, including violence affecting young people, youth
employment and mental health
· Twitter Impressions - 1,179k. Total followers increased by 610 to 6223.
· Total LinkedIn followers on LinkedIn increased by 389 to 1,478.
· We have 39,344 Grants Bulletin subscribers. Openings average at 46.80%
· We have 4,316 Donor Bulletin subscribers. Openings average at 40.72%
· Tailored communications for partner events i.e., JPMorgan, Save London Lives
and Together for London
Diversify and grow our donor · Pooled funds: we launched two pooled funds - Youth Futures Fund Year 2
portfolio and products (£267k) and Together for London (£2.2m)
· Invite-only: we grew our invite-only funds attracting and supporting new
donors to LCF
· Open grants: continued to bid for tenders and offer an excellent open grant
service
· Major events: We held 3 - JPMorgan Pathways to Economic Development;
Save London Lives and Together for London
Make the best use of our time, · Carried on with our work on upgrading our contacts relationships database
data, and digital solutions, in collaboration with UKCF Digital. We hope to complete this work in March
ensuring compliance 2024
· Increased circulation of our newsletter and social media presence
· Continued to assure our online security through Cyber Essentials accreditation
Build long-term financial resilience · Trustees reviewed and approved a new reserves policy
· Review LCF’s reserves policy · We reviewed our endowment fee and, following negotiations with fund
· Review LCF’s property arrangements holders, made a small increase
in line with new ways of working · We moved to new offices and adopted a new hybrid working pattern
----- End of picture text -----

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Trustees, report 30

Annual report and financial statements

The London Community Foundation

Financial review

In what was another tough and uncertain year, we are extremely grateful to all our supporters for their continued generosity in partnering with LCF to support London’s grassroots charities.

Our total income in 2023 was £13 million (2022: £12 million) and our total expenditure was £13.6 million (2022: £10.8 million), an increase of £1million and £2.8 million respectively on the previous year.

Income

The total income for the year was £13 million (2022: £12 million). Donations came from a range of donors including companies, central and local government, individual philanthropists, and social sector organisations. Other sources include rental, investment and charitable activities. 93% of our income came from donations, followed by 6% from investment income and 1% from charitable activities.

The breakdown is as follows:

Income £000

----- Start of picture text -----
Total
Endownment
(capital) income
Unrestricted
income
Restricted
(grant making)
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
----- End of picture text -----

2022

2023

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Trustees’ report

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’ represent 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 £12.1 million (2022: £9.3 million), an increase of 30% (see Note 11a on page 74).

LCF’s main core cost excluding grant payments is our team, which represented 66% of the Charity’s unrestricted expenditure (2022: 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, was £1million (2022: £1.1) a decrease of 10%. The Charity’s team count remained at an average of 18 full-time equivalent staff (2022: 19).

----- Start of picture text -----
Expenditure £000
Community
development
Grants
programme
Raising
funds
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
2022 2023
----- End of picture text -----

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Annual report and financial statements

The London Community Foundation

Expenditure (continued)

Cash position

LCF’s cash balances (excluding any cash held by the investment managers) were £10.2 million (2022: £10.3 million), a decrease of £0.1 million. Cash held by LCF mainly represents restricted funds held for the purposes of grant-making and, of this balance, £9.5 million represents restricted and endowment funds (2022: £9.6 million). 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 £0.9 million net general reserves (2022: £0.9 million), £0.7 million is a cash balance representing unrestricted funds (2022: £0.7 million) and £0.3 million is invested (2022: £0.3 million), leaving net liabilities of £0.1 million (2022: net liabilities £0.1 million). The invested funds, which are held under the reserves policy, are not expected to be needed in the short term and are invested with CCLA to generate a higher return than would be earned if they were held in an ordinary bank deposit account.

Diversity of income and financial sustainability

Working with our donors and funding partners

We are grateful to key partners such as the Mayor’s Office for Policing and Crime (MOPAC), the Evening Standard, Trust for London, Centre for London, City Bridge Trust and our membership organisation UKCF (and its funding partners) for the opportunity to collaborate on funds and programmes to support vulnerable Londoners. Our impact is built on the relationships we hold with donors and partners and the trust they place in our work with small charities in the Capital. This includes the many existing and new donors who have joined forces in LCF’s Youth Futures Fund and the Together for London Fund to provide critical emergency funding for charities struggling with the cost-ofliving crisis. Their commitment to sharing decisionmaking and outcomes on these important funds continues to be a blueprint for future pooled funds and demonstrates what is possible when donors collaborate.

During 22/23, LCF’s funding sources included:

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Funding Source 2023 2022
Corporates 20% 32%
Local public authorities 31% 32%
Trusts and foundations 41% 27%
Individuals 5% 8%
National public authorities 3% –
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Our business plan sets out that no one fund, or programme, should contribute more than 20% of the Charity’s income or 35% of the Charity’s grantmaking in any year. This has been achieved.

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Trustees’ report

Reserves

The total value of funds held at 31 March 2023 was £32 million (2022: 33 million).

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 2023 stood at £23 million (2022: £24 million). The decrease of £1 million is due to a combination of planned drawdowns of expendable endowment funds as well as investment market losses during the year.

Restricted reserves comprise funds available for expenditure in accordance with the donors’ strategies for giving. Donations are typically spent over one to two-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 2023 were £8.1 million (2022: £8.2 million). The decrease is due to the timing of grant programmes.

Designated reserves are funds set aside from unrestricted reserves for capital expenditure at the discretion of the Trustees. The balance of £8k (2022: £6k) represents the undepreciated value of the fixed assets.

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 2023 were £0.9 million (2022: £0.9 million).

Reserves policy

Long-term financial resilience remains a key strategic priority for LCF. In addition, growing multiyear engagement with donors supports both LCF’s own resilience as well as that of the beneficiary grassroots organisations they are targeting with their philanthropy.

LCF’s reserves policy enables management of general reserves to ensure we hold an appropriate level of accessible funds to mitigate against identified financial risks while ensuring we are making timely and strategic use of our funds. The policy focuses purely on the general reserves, as outlined above, as these are the funds at the discretion of the Trustees.

We hold general reserves to provide cover for unexpected changes in income and expenditure, allowing LCF to continue activities in the event of:

· a temporary loss of income

General reserves also allow us to implement new strategic priorities or invest in new opportunities to achieve our goals. The general reserves are matched by investments held with our investment managers, CCLA Investment Management Ltd (CCLA), so that we can draw on them quickly if necessary.

A formal review of the reserve levels takes place every three years. In the intervening years the Audit Risk & Investment Committee considers the impact of the financial risks associated with the income and expenditure streams and balance sheet items and assesses the appropriateness of the reserves policy.

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Annual report and financial statements

The London Community Foundation

Reserves policy (continued)

The policy was reviewed during the year and the outcome was a new reserves policy based on a range of 5-9 months of expenditure (£0.6 – £1.1 million) rather than a fixed amount and is based on the principle that LCF should be resilient to financial shocks and be able to continue operations despite fluctuations in income or expenditure.

The closing general reserves of £0.9 million are therefore near the top of the target range of 9 months.

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 endowments. 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 2023 the percentage used was 3.5% (2022: 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% (2022: 3.5%) of the value of the fund on 31 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 evenhanded 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.

The unapplied total return on the Pedlar’s Acre endowment fund at the end of the year is £979k.

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Trustees’ report

Investments

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 majority of the assets are in the COIF Charities Investment Fund whose Board has adopted an ethical investment policy which prohibits investment in companies that have been identified as being involved in:

Companies that have not responded to persistent engagement on compliance with:

The total value of funds invested, including cash held by investment managers for re-investment, amounted to £24 million (2022: £25 million). The reduction in the year is due to unrealised losses and 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’s Audit, Risk and Investment Sub-Committee is responsible for monitoring investment performance.

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.

----- Start of picture text -----
March March three-year
2023 2022 return to 31
(net of (net of March 2023
fees and fees and (net of fees
costs) costs) and costs)
CCLA - COIF -0.90% 1.62% 11.20%
Investment Fund
ARC Steady -4.14% 6.29% 8.11%
Growth
(peer group
comparison)
----- End of picture text -----

are also restricted from investment.

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Annual report and financial statements

The London Community Foundation

Principal risks and uncertainties

Risk management

LCF has a risk management policy, which has been designed to identify and analyse key strategic and operational risks facing the Charity and, where they are at unacceptable levels, to take steps to mitigate the risks.

We define key strategic and operational risks as those that, without effective or appropriate mitigation, are highly likely to occur and would have a negative impact on the Charity’s ability to fulfil its purpose of convening donors to invest in charitable organisations working to overcome the issues affecting London.

Risk appetite

Risk appetite is the amount of risk that LCF is willing to accept in relation to key drivers of the organisation. As a charity funded through voluntary donations, we seek to diversify our income streams and we are therefore open in this regard. This approach enables us to accept additional risks, providing the impact has been evaluated, mitigation measures have been put in place and a regular robust monitoring process is established. This approach to reviewing risk enables us to adopt appropriate behaviours, decisions, and controls in line with our values and strategic plan.

Prior to any risk being accepted, we consider the likelihood of the risk occurring and the impact on our activities if the risk did occur. Any risk that seriously threatens the ability of The London Community Foundation, now or in the future, to further its purpose will not be acceptable. If such a risk cannot be extinguished, then all steps will be taken to minimise the likelihood of the risk occurring.

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Trustees’ report

Roles and responsibilities for managing risk

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Role Responsibility
Board of Trustees · Leadership and control of the Charity
· Set mandate and commitment for risk management and appetite
· Lead risk management culture
· Be aware of the risk to the reputation of LCF from activities that they may undertake elsewhere
· Seek assurance from the Audit, Risk & Investments Committee that appropriate strategic
risk management procedures are in place
· Review approach to evaluation and mitigation of major risks annually at Full Board
Audit, Risk & Investment · Monitor the effectiveness of LCF’s risk management procedures via the ongoing review of
Committee & Sub the system of internal control. This includes receiving risk reports from the Grants & Impact
Committees Committee for review, recommendation, or decision as per the Committees’ terms of Reference
· Review the register on a quarterly basis and support SMT in potential mitigation (or
escalation) of risks
·
Review wider risk related policies and frameworks across finance, operations, systems and people
· Determine the requirement for internal audit on any areas of LCF’s operationss
Senior Management Team · Identify, analyse & evaluate risks
· Own risk management strategies
· Oversee incident response and crisis management
· Drive for continuous improvement in risk management
·
Chief Operating Officer Develop the risk management policy and processes, specifically the co-ordination of the
risk review and the categorisation and evaluation of risks identified
· Ensure strategic risks are regularly reviewed by the Senior Management Team
Middle Management Team · Risk identification, ownership and control: maintain an effective risk identification and
Outsourced IT provider management and control environment as part of day-to-day operations
· Reporting to the Board and Board Sub-Committees.
External auditors · Independent internal and external audits to test design and operating effectiveness of
systems and controls
Management, staff, partners · Be aware of the importance of identification and risk management. There should be
and volunteers formal channels of communication both up and down to identify and manage risks
· Control environment: all employees, volunteers and partners contribute to managing risk
in their departments or area of expertise
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Monitoring and review of the policy

We update the organisational risk register as part of the annual business planning process. Risk is also considered at the Trustees’ quarterly meetings and by relevant Sub-Committees, where specific risks require consideration. The full risk register is reviewed by the Board annually. This process allows the Trustees both to challenge any assumptions the SMT has made about risks and to understand the context in which decisions are taken. This helps to ensure that the most serious risks are being managed effectively.

The Trustees are satisfied that procedures are in place to manage or mitigate the impact of the significant risks they have identified.

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Annual report and financial statements

The London Community Foundation

Monitoring and review of the policy (continued)

The principal risks faced by the Charity and the mitigations are as follows:

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Risk Mitigation
Financial stability We monitor our actual and forecasts against the financial plans continuously so
Long-term financial resilience for LCF that we can implement appropriate measures in good time
remains a key strategic risk for the Charity.
External shocks or trends impacting our The SMT reviews monthly reporting on income, expenditure and reserves
income, cashflow or reserves could put our positions
future financial stability at risk.
On a quarterly basis, we provide financial reports to the Audit, Risk and
Investment Committee
Periodic review of the reserves policy to ensure that it remains aligned with the
challenges facing the Charity.
Potential or perceived misuse of funds We seek to mitigate the risk of potential fraud, funding inappropriate or
The result of which could be reputational ineligible organisations and poor funding decisions through Standard Operating
and/or loss of donors and income. As a Procedures, controls, and development and training across the team
high-volume, small grant funder – and often
at pace – LCF’s reputation relies on the trust
bestowed upon the Charity by its donors
and partners.
Data and cyber security We have mandatory training in place on data protection and information
Post COVID-19 individuals and security to ensure the safe handling of data and compliance with regulations.
organisations alike are more digitally We have clear processes in place to manage incidents
dependent and, therefore, face greater risk
of cybercrime. We obtained our Cyber Essentials certification
We regularly review our controls, team awareness and training, and Board
oversight
In addition, we upgraded our information management systems and IT provision
Workplace culture and leadership We created new organisational values and behaviours that reflect EDI
Failure to provide a safe and respectful
workplace would be detrimental to the We have reviewed and rolled out an inclusive performance evaluation process
wellbeing of our staff and volunteers. for all staff. We aim for all staff to have clear personal objectives, which help
Failure to attract, engage and retain the contribute to our vision and mission
best staff, impacts our ability to achieve our
During the year we updated our recruitment policy and procedures with an EDI
charitable objectives.
lens to ensure we can attract individuals from marginalised or under-represented
groups within the LCF staff team
In 2023/24 we plan to review LCF’s pay and grading structure to support
opportunities for career progression within the organisation
Meeting regulator, donor and grantee Our governance is underpinned by a comprehensive set of policies and
expectations procedures designed to manage risks to successfully meet our legal and
Failure to meet the compliance and service regulatory obligations
expectations set by our regulators and
donors respectively would affect our ability
to fundraise and operate as a charity.
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Trustees’ report

People and pay

Remuneration policies

LCF had on average of 18 full-time equivalent staff during 2023 (2022: 19). This year the organisation has been embedding and learning from developments during 21/22 including launch of a new People Offer, revised salary bands, balancing the Charity’s commitment to attracting and retaining people, alongside inflation and future overall affordability. 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.

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.

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 SMT, comprise the key management in charge of directing and controlling, running, and operating the Charity. The pay of the senior employed staff is set by reference to LCF’s Pay and Grading scale. The salaries are benchmarked against pay levels in other charities of a similar size run on a voluntary basis. The salaries for senior staff posts are determined as part of the same salary scale as is used for all staff posts.

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.

SMT was as follows during the year:

CEO, Director of Grants & Impact, Chief Operating Officer and Director of Development & Communications. Until September 2022, an interim Finance & Resources Director supported LCF, before the organisation transitioned to a permanent Chief Operating Officer role. The total benefits of the employed SMT, including employer pension contributions, was £321k (2022: £264k).

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 2023 (2022: 0).

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Annual report and financial statements

The London Community Foundation

Pay ratio

Our Diversity Survey

The ratio of our highest salary rate to our median salary during 2023 was 2.29:1 (2022: 2.39:1).

Reporting on our people

In this fourth year of LCF reporting diversity data on its Board and team in its Statutory Accounts, we have added key insights and challenges as part of our continued commitment to being accountable for how we represent London.

The following data tables are taken from an anonymous diversity survey of Trustees and team members at LCF across the last four years. 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. 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.

This reporting is part of LCF’s ongoing commitment to equity, diversity, and inclusion (EDI). Although we are not legally required to report against diversity, we are committed to being transparent, holding ourselves to account and learning from our challenges and progress. This work forms part of a wider EDI strategy and commitment.

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Trustees’ report

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LCF Team 2020 2021 2022 2023
How do you describe your ethnicity?
Asian/Asian British: 0% 0% 11% 5%
Black/Black British: 0% 5% 5% 18%
Mixed/dual heritage: 0% 0% 5% 5%
Other ethnic background: 0% 11% 0% 0%
White/White British: 77% 84% 68% 32%
Did not respond: 23% 0% 11% 41%
How do you define your gender identity?
Man: 23% 26% 16% 18%
Other gender identities listed: 0% 0% 0% 0%
Other: 0% 5% 0% 0%
Woman: 54% 68% 74% 41%
Did not respond: 23% 0% 11% 41%
Which of the following options best describes how you think of your sexual orientation?
Bisexual: 0% 5% 11% 0%
Gay or lesbian: 15% 16% 11% 9%
Heterosexual: 54% 74% 68% 45%
Other sexual orientations listed: 0% 0% 0% 5%
Prefer not to say: 8% 5% 0% 0%
Did not respond: 23% 0% 11% 41%
Do you consider yourself to live with a disability?
No: 54% 89% 79% 45%
Yes: 8% 5% 0% 14%
Prefer not to say: 15% 5% 11% 0%
Did not respond: 23% 0% 11% 41%
What is your age?
18-24 0% 5% 0% 0%
25-29 15% 16% 21% 9%
30-34 8% 16% 21% 14%
35-39 23% 26% 11% 5%
40-44 0% 5% 11% 9%
45-49 15% 11% 5% 5%
50-54 15% 21% 11% 9%
55-59 0% 0% 11% 9%
60+ 0% 0% 0% 0%
Did not respond: 23% 0% 11% 41%
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The London Community Foundation

----- Start of picture text -----
LCF Board of Trustees 2020 2021 2022 2023
How do you describe your ethnicity?
Asian/Asian British: 23% 20% 20% 20%
Black/Black British: 0% 20% 20% 20%
Mixed/dual heritage: 0% 0% 10% 10%
Other ethnic background: 0% 0% 0% 0%
White/White British: 63% 50% 50% 50%
Did not respond: 13% 10% 0% 0%
How do you define your gender identity?
Man: 63% 60% 60% 40%
Other gender identities listed: 0% 0% 0% 0%
Other: 0% 0% 0% 0%
Woman: 25% 30% 40% 60%
Did not respond: 13% 10% 0% 0%
Which of the following options best describes how you think of your sexual orientation?
Bisexual: 0% 0% 0% 0%
Gay or lesbian: 13% 20% 20% 20%
Heterosexual: 75% 70% 70% 70%
Other sexual orientations listed: 0% 0% 0% 0%
Prefer not to say: 0% 0% 10% 10%
Did not respond: 13% 10% 0% 0%
Do you consider yourself to live with a disability?
No: 88% 90% 100% 100%
Yes: 0% 0% 0% 0%
Prefer not to say: 0% 0% 0% 0%
Did not respond: 13% 10% 0% 0%
What is your age?
18-24 0% 0% 0% 0%
25-29 0% 0% 0% 0%
30-34 0% 0% 0% 0%
35-39 0% 10% 10% 0%
40-44 0% 20% 40% 60%
45-49 25% 10% 10% 0%
50-54 25% 10% 10% 20%
55-59 13% 10% 20% 0%
60+ 25% 30% 10% 10%
Did not respond: 13% 10% 0% 10%
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Trustees’ report

How are we doing?

Over the four years since starting the survey, LCF’s board has improved its diversity across ethnicity, sexual orientation, and age range. Ethnicity representation across Asian/Asian British and Black/Black British has increased. The age profile of our Trustees has improved during the past three years, also in line with the Charity’s desire to welcome people without previous charity governance experience. This is particularly of note in relation to London’s demographics. However, despite three Trustee recruitment campaigns over the years reported, disabled people remain significantly underrepresented, and we will seek to address this over the coming years as Trustee terms change.

We have also made progress in diversifying our team, which is encouraging and enriches our level of experience and perspectives. The number of colleagues reporting their sexual orientation is also increasing. However, attracting talented people who have a disability needs to remain a focus. Allowing future talent to see themselves represented both at Board and team is vital to sustaining our growth on diversity. Ensuring our People Offer remains accessible and relevant is an important complement to our EDI Strategy.

We also reflect on the levels of ‘non-reporting’ and ‘prefer not to say’ across both Board and team and will seek to understand and encourage wider reporting in future surveys.

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Annual report and financial statements

The London Community Foundation

Wider diversity and inclusion at LCF

We know that discrimination and racism exist in London. In our work, we are driven by social justice and believe that positive change is possible. We seek to achieve this by:

We define equity, diversity, and inclusion as:

Equity means everyone, no matter their background or characteristics, can achieve equal results. Equity differs from equality, which focuses on equal treatment, support, and distribution of resources rather than outcomes. Equity involves the promotion of justice, impartiality and fairness within the behaviours, procedures, processes, and distribution of resources by institutions or systems. For LCF this means recognising that some people experience inequality and injustice, actively removing barriers and challenging discrimination to enable equal outcomes.

Diversity means a multiplicity of shared and different individual and group experiences, values, beliefs, and characteristics are represented and valued. For LCF, this means celebrating differences and ensuring we employ, engage, and serve a group of people that is reflective of the society in which the Charity exists and operates.

Inclusion means everyone feels they belong, feels safe, valued, has a voice and a means to participate and realise their potential. Diversity efforts alone do not create inclusive environments. For LCF, this means taking active steps to listen, reach and involve people, particularly those who tend to be under-represented or whose voices tend not to be heard, and to welcome and accept them as they are.

LCF’s EDI Strategy reaches across the organisation including our governance, people, culture, grant making and donor engagement. The Charity is also working with its peer community foundations on diversity and inclusion as part of its membership of the UKCF network.

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Trustees’ report

Future plans

----- Start of picture text -----
Strategic Objective In detail
Foster a culture of belonging · Undertake an annual staff survey
& inclusion across the · Build on team engagement and touchpoints throughout the year
1 LCF team & Board · Progress EDI Strategic priorities for the year
· Maximise opportunities for team and Trustee engagement
Grow our knowledge, · Identify opportunities to engage more with boroughs/beneficiary groups not
reach & connection well represented across LCF work via targeted mailouts/communications
2 with London’s communities · Gather feedback from applicants (via survey) on grant making process and
EDI considerations such as accessibility, inclusivity, ‘led by’ organisations
· Increase collaboration across teams on programme design early in
development process
·
Engage grantees and applicants to support communications/influence work
Grow our donor portfolio · Deliver 4 events
· Grow donor engagement in pooled funds and invite-only activities, offering
3 new and different ways for local philanthropy to reach London’s communities
· Achieve income target of £9.3m
· Increase our LinkedIn followers to 2,500, mailing list to 700, and Twitter
followers to 7,000
·
Influence stakeholders through communications to encourage more giving
to London through LCF
Make best use of our time, · Review & streamline LCF’s management information
data & digital solutions, · Deliver project goals of the Salesforce database upgrade project
4 ensuring compliance · Improve donor fund reporting and automation
Build long term · Diversify our income portfolio
financial resilience · Simplify the way our donors give
5
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Annual report and financial statements

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Trustees’ report

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 appeals in partnership with 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 focus our fundraising on high value fundraising where we have a direct and personal relationship with a donor. We do not engage in any forms of direct marketing activity to the public, for this reason our fundraising approaches do not put vulnerable people at risk. We communicate to our donors via email, and only to those who have subscribed to our e-newsletter. We do not communicate by phone or post. If a donor wants to unsubscribe to our email list, they can do this themselves automatically using the unsubscribe function. 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 2023.

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Annual report and financial statements

The London Community Foundation

Statement of Trustees’ responsibilities

The Trustees (who are also directors of LCF 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 its income and expenditure for that period.

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

The Trustees are responsible for keeping adequate 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.

Each of the Trustees confirms that:

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

20 November 2023

49

Auditor's report 50

Annual report and financial statements

The London Community Foundation

Independent auditor’s report to the members of The London Community Foundation Year ended 31 March 2023

Opinion

Basis for opinion

We have audited the financial statements of The London Community Foundation (the ‘charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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. Our evaluation of the Trustees’ assessment of the entity’s ability to continue to adopt the going concern basis of accounting included critical reviews of budgets and forecasts provided.

51

Auditor’s report

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

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our 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 directors’ 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:

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Annual report and financial statements

Responsibilities of trustees

As explained more fully in the Trustees’ responsibilities statement included in the Trustees’ Annual report, 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, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

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Auditor’s report

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/ Audit-and-assurance/Standards-and-guidance/ Standards-and-guidance-for-auditors/Auditorsresponsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. 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.

Stuart McKay BSc FCA DChA (Senior Statutory Auditor)

For and on behalf of MHA, Statutory Auditor London, United Kingdom

Date: 06/12/2023

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)

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The London Community Foundation

55

Financial statements 56

Annual report and financial statements

Statement of financial activities for the year to 31 March 2023

Incorporating the income and expenditure account

----- Start of picture text -----
Unrestricted Designated Restricted Endowment Total Restated
funds funds funds funds 2023 Total
Notes £000 £000 £000 £000 £000 2022
£000
Income and
endowments from:
Donations and legacies 2a 812 – 11,128 26 11,966 11,283
Charitable activities 2b 91 – 82 - 173 102
Investments 2c 466 – 299 38 803 737
Other trading activities 2d 58 – – – 58 61
Total income 1,427 – 11,509 64 13,000 12,183
Expenditure on:
Raising funds 3a 516 – 3 – 519 554
Grants programme 3b 923 4 12,054 – 12,981 10,226
Community development 3c 1 – 49 – 50 25
Total expenditure 1,440 4 12,106 – 13,550 10,805
Net income / (13) (4) (597) 64 (550) 1,378
(expenditure) before
investment gains
and losses
– –
Net gains / (losses) (12) (932) (944) 2,017
on investments
Net income / (25) (4) (597) (868) (1,494) 3,395
(expenditure)
Transfers in / (out) 64 6 536 (606) – –
between funds
Net movement in funds 39 2 (61) (1,474) (1,494) 3,395
Reconciliation of funds
Total funds at 1 April 890 6 8,184 24,050 33,130 29,735
Total funds at 31 March 13 929 8 8,123 22,576 31,636 33,130
----- End of picture text -----

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.

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Financial statements

Balance sheet

as at 31 March 2023

----- Start of picture text -----
2023 2022
Notes £000 £000
Fixed assets
Tangible assets 8 8 6
Investments 9 23,738 25,001
23,746 25,007
Current assets
Debtors 10 397 295
Cash at bank and in hand 10,210 10,328
10,607 10,623
Creditors: amounts falling due within one year 11 (2,717) (2,500)
Net current assets 7,890 8,123
Net assets 31,636 33,130
The funds of the charity:
Capital funds
Expendable endowment funds 14 17,385 18,451
Permanent endowment funds 14 5,191 5,599
22,576 24,050
Revenue funds
Restricted funds 15 8,123 8,184
Unrestricted funds
Designated funds 16 8 6
General funds 929 890
937 896
Total funds 31,636 33,130
----- End of picture text -----

The financial statements were approved by the board on 20 November 2023

Russell Prior Chair

Company number: 4383269

Veesh Sharma

Chair of Finance, Resources and Risk Committee, formerly Audit, Risk & Investment Committee

Charity number: 1091263

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Annual report and financial statements

Statement of Cashflows

as at 31 March 2023

----- Start of picture text -----
2023 2022
Notes £000 £000
Cash flows (used in) operating activities:
Net cash used in operating activities A (1,260) (511)
Cash flows from investing activities
Interest received 69 1
Investment income received 735 736
–
Purchase of property, plant and equipment (6)
Purchase of investments (8) (27)
Proceeds from the disposal of investments 326 1,602
Net cash (used in) / provided by investing activities 1,116 2,312
Cash flows from financing activities
Receipt of endowment 26 27
Net cash (used in) / provided by investing activities 26 27
Change in cash and cash equivalents in the year (118) 1,828
Cash and cash equivalents at 1 April 2022 B 10,328 8,500
Cash and cash equivalents at 31 March 2023 B 10,210 10,328
Notes to the statement of cash flows for the year ended 31 March 2023
A. Reconciliation of net income / (expenditure) to net cash flow from operating activities
Net income for the year (as per the statement of financial activities) (1,520) 3,368
Adjustments for:
Net losses / (gains) on investments 944 (2,017)
Depreciation charge 4 8
Dividends and interest from investments (803) (737)
(Increase) / Decrease in debtors (102) (129)
Increase / (Decrease) in creditors 217 (1,004)
Net cash from/ (used in) operating activities A (1,260) (511)
B. Analysis of cash and cash equivalents
Cash at bank and in hand 10,210 10,328
10,210 10,328
C. Analysis of changes in net debt
As the Charity's net debt equalled its cash and cash equivalent
balances at both the current and prior year-ends, an Analysis of
changes in net debt table has not been disclosed.
----- End of picture text -----

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Financial Notes to statementsthe accounts

60

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 2023 with comparative information in respect to the year ended 31 March 2022.

Corporate status

The Charity is a company limited by guarantee registered in England and Wales and does not have share capital. Its members may be required to contribute a sum not exceeding £1 each in the event of the winding up of the company. The company is a registered Charity. The registered office is at 7-14 Great Dover St, London SE1 4YR.

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 Trustees believe there are no material uncertainties regarding the Charity’s ability to continue as a going concern. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

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:

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.

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.

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Notes to the accounts

1 Accounting policies (continued)

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.

Government grants: Grants from governments and other agencies which provide core funding, or are given for grant making purposes, are included within ‘Income and endowments from donations and legacies.’ Grant income that contains conditions relating to performance or payments by results is recognised as performance occurs, with all funding received in advance or in arrears of performance deferred or accrued accordingly. Otherwise, income is recognised in full as soon as any other relevant conditions are satisfied.

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.

Expenditure comprises direct costs and support costs. Expenditure is classified under the following activity headings:

All costs incurred towards achieving LCF’s charitable objectives and include expenditure on grant programmes and community development.

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.

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Annual report and financial statements

1 Accounting policies (continued)

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.

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

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.

Any income funds not disbursed in the financial year are retained as unapplied total return. Should any year experience a negative return, a negative balance will be held in the unapplied total return fund until such time as future returns on the investments eliminate it.

Permanent endowment funds 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.

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.

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Notes to the accounts

1 Accounting policies (continued)

Termination benefits and payments

LCF may be committed, by legislation, contractual or other agreements with employees or their representatives or by a constructive obligation based on business practice, custom or a desire to act equitably, to make payments to employees when it terminates their employment. Termination benefits are those that arise as a result of either LCF’s decision to terminate an employee’s employment before the normal retirement date or an employee’s decision to accept voluntary redundancy during an organisational restructure. These are recognised as an expense and charged to the Statement of Financial Activities when LCF is demonstrably committed to terminating the employment of an employee or group of employees before the normal retirement date; or to providing termination benefits because of an offer made to encourage voluntary redundancy. Termination benefits that arise as part of a settlement agreement are recognised once the period of consultation between the employee and their representative is completed and terms are agreed upon.

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:

Leasehold Over the remaining life
improvements of the lease
Offce equipment Five years – 20%
IT equipment Threeyears – 33.3%

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Annual report and financial statements

Investments

Investments are a form of basic financial instrument. Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are continuously measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the Statement of Financial Activities, if the shares are publicly traded or their fair value can otherwise be measured reliably. As investments are continuously revalued there are no realised gains or losses recorded.

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

Some 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.

Prior year restatement

During the year the Trustees reassessed the classification of elements of Income from Donations and Legacies. In doing so, they concluded that £102k of such income recognised in the year ended 31 March 2022 better represented Income from Charitable Activities, and as such have restated this income in these accounts - see the Statement of Financial Activities and Notes 2a and 2b. This restatement has had no impact on the result for the year ended 31 March 2022.

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Notes to the accounts

2 Income

2a Income from donations and legacies

----- Start of picture text -----
Restated
Unrestricted Restricted Endowment Total Total
funds funds funds 2023 2022
£000 £000 £000 £000 £000
Trusts and foundations 267 4,639 26 4,932 3,087
Corporations 200 2,239 – 2,439 3,632
Local public authorities 210 3,372 – 3,582 3,691
Individuals 92 505 – 597 873
National public authorities 43 373 – 416 –
Total income from donations and legacies 812 11,128 26 11,966 11,283
----- End of picture text -----

During the year LCF received government grants of £2,440k for the following projects:

During 2021/22 LCF received government grants of £3,275k for the following projects:

There were no unfulfilled conditions as at 31 March 2023 (2022: none)

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Annual report and financial statements

2b Income from charitable activities

----- Start of picture text -----
Restated
Unrestricted Restricted Endowment Total Total
funds funds funds 2023 2022
£000 £000 £000 £000 £000
Local public authorities 91 82 – 173 96
Corporations – – – – 4
Individuals – – – – 2
Total income from charitable activities 91 82 – 173 102
----- End of picture text -----

2c Income from investments

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2023 2022
£000 £000 £000 £000 £000
Interest receivable 69 – – 69 1
Investment income 397 299 38 734 736
Total income from investments 466 299 38 803 737
----- End of picture text -----

2d Income from other trading activities

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2023 2022
£000 £000 £000 £000 £000
Rental income 58 – – 58 61
Total income from other trading activities 58 – – 58 61
----- End of picture text -----

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Notes to the accounts

3 Expenditure

3a Expenditure on raising funds

----- Start of picture text -----
Unrestricted Designated Restricted Endowment Total Total
funds funds funds funds 2023 2022
Notes £000 £000 £000 £000 £000 £000
Investment
management costs
Staff costs 6 7 – – – 7 9
Allocated support costs 4 6 – – – 6 6
Cost of raising
donations and legacies
Staff costs 6 256 – – – 256 291
Other direct costs 33 – 3 – 36 33
Allocated support costs 4 203 – – – 203 204
Cost of generating
rental income
Staff costs 6 5 – – – 5 5
Other direct costs 3 – – – 3 3
Allocated support costs 4 3 – – – 3 3
Total expenditure 516 – 3 – 519 554
on raising funds
----- End of picture text -----

3b Expenditure on charitable activities: grant programme

----- Start of picture text -----
Unrestricted Designated Restricted Endowment Total Total
funds funds funds funds 2023 2022
Notes £000 £000 £000 £000 £000 £000
Grants payable – – 11,889 – 11,889 9,169
Staff costs 6 484 – 78 – 562 559
Other direct costs 55 – 87 – 142 112
Allocated support costs 4 384 4 – – 388 386
Total expenditure 923 4 12,054 – 12,981 10,226
on charitable activities:
grant programme
----- End of picture text -----

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Annual report and financial statements

3c Expenditure on charitable activities: community development

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2023 2022
£000 £000 £000 £000 £000
Other direct costs 1 49 – 50 25
Total expenditure on charitable activities: 1 49 – 50 25
community development
----- End of picture text -----

4 Analysis of support costs

----- Start of picture text -----
Unrestricted Designated Total Unrestricted Designated Total
funds funds 2023 funds funds 2022
Notes £000 £000 £000 £000 £000 £000
Support staff costs 6 148 – 148 167 – 167
Professional fees 99 – 99 80 – 80
Premises costs 178 – 178 164 – 164
Office and other costs 16 – 16 27 – 27
Depreciation – 4 4 – 8 8
IT costs 50 – 50 40 – 40
Governance costs 5 105 – 105 113 – 113
Total support costs 596 4 600 591 8 599
Attributed to:
Expenditure on 3a
raising funds
Investment management 6 – 6 6 – 6
costs
Cost of raising donations 203 – 203 204 – 204
and legacies
Cost of generating rental 3 – 3 3 – 3
income
Expenditure on charitable
activities
Grant programme 3a 384 4 388 378 8 386
Total expenditure 596 4 600 591 8 599
on raising funds
----- End of picture text -----

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Notes to the accounts

5 Governance costs

----- Start of picture text -----
Total Total
2023 2022
Notes £000 £000
Staff costs 6 59 67
External auditors' remuneration 21 14
Legal and professional fees 25 32
Total governance costs 105 113
----- End of picture text -----

6 Staff costs and remuneration of key management personnel

----- Start of picture text -----
Total Total
2023 2022
£000 £000
Salaries and wages 803 816
Social security costs 83 83
Employer pension contributions 57 56
Temporary staff costs 94 143
Total staff costs 1,037 1,098
----- End of picture text -----

The average monthly number of employees during the year was:

----- Start of picture text -----
2023 2022 2023 2022
Employees FTE FTE Number Number
Grant delivery and community development 12 12 12 13
Fundraising 4 4 4 4
Support 2 3 2 3
Total 18 19 18 20
----- End of picture text -----

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Annual report and financial statements

6 Staff costs and remuneration of key management personnel (continued)


personnel (continued)
2023 2022
The number of staff whose emoluments are greater than £60,000 are
£60,001 – £70,000
£90,001 – £100,000		 Number
1
1		 Number
2
1
Total 2 3

Emoluments is taken to mean actual payments due in the 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 received employer pension contributions of £15,291 (2022: £20,481).

22 employees participated in the charity’s stakeholder pension scheme (2022: 22), inclusive of all starters and leavers.

Key management personnel

The Charity considers its key management personnel comprises the Trustees and Senior Management Team (SMT). The SMT was made up as follows during the year: CEO, Director of Grants and Impact, Chief Operating Officer, Director of Business Development & Communications.

Total key management personnel remuneration in the year, inclusive of employer pension and national insurance contributions, was £320,729 (2022: £264,055)

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 2023 (2022:0).

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Notes to the accounts

7 Net (expenditure) / income

This is stated after charging:

----- Start of picture text -----
2023 2022
Notes £000 £000
Staff costs 6 1,037 1,098
Auditor's remuneration (excluding recoverable VAT):
Statutory audit services 21 14
Depreciation 4 8
Rentals under operating leases: property 116 107
----- End of picture text -----

8 Tangible fixed assets

----- Start of picture text -----
Furniture,
Leasehold IT, office Total
improvements equipment 2023
£000 £000 £000
----- End of picture text -----

Cost
As at 1 April 2022 107 77 184
Additions – 6 6
At 31 March 2023 107 83 190
Depreciation
As at 1 April 2022 107 71 178
Charge for theyear – 4 4
At 31 March 2023 107 75 182
Net Book Value at 31 March 2023 – 8 8
Net Book Value at 31 March 2022 – 6 6

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Annual report and financial statements

9 Fixed asset investments

9a Fixed asset investments

----- Start of picture text -----
2023 2022
£000 £000
Market value of listed investments at 1 April 25,001 24,560
Additions at cost 8 27
Disposal proceeds (326) (1,601)
(Losses) / gains on investments (945) 2,017
Market value of listed investments at 31 March 23,738 25,001
----- End of picture text -----

9b Historical cost

----- Start of picture text -----
2023 2022
£000 £000
Market value at 31 March 23,738 25,001
Accumulated gains brought forward (13,093) (11,100)
Unrealised losses / (gains) for the year 926 (1,993)
Realised (losses) / gains in respect of disposals in the year (10) 323
Historical cost at 31 March 11,561 12,231
----- End of picture text -----

9c Investments disposition

----- Start of picture text -----
2023 2022
£000 £000
Common Investment Funds: COIF Charities Investment Fund 23,638 24,895
Common Investment Funds: COIF Ethical Investment Fund 100 106
Total Market value of listed investments at 31 March 23,738 25,001
----- End of picture text -----

10 Debtors

----- Start of picture text -----
2023 2022
£000 £000
Trade debtors 344 226
Prepayments and accrued income 53 69
Total Market value of listed investments at 31 March 397 295
----- End of picture text -----

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Notes to the accounts

11 Creditors: amounts falling due within one year

----- Start of picture text -----
Total Total
2023 2022
Notes £000 £000
Grants payable 11a 2,502 2,270
Other creditors 115 67
Accruals and deferred income 11b 100 163
Total Creditors at 31 March 2,717 2,500
----- End of picture text -----

11a Reconciliation of grants payable

----- Start of picture text -----
Total Total
2023 2022
Notes £000 £000
Balance brought forward 1 April 2,270 2,922
Grants awarded during the year 3b 11,889 9,169
Grants paid out during the year (11,657) (9,821)
Grant creditor as at 31 March 2,502 2,270
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11b Reconciliation of deferred income

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Total Total
2023 2022
£000 £000
Balance brought forward at 1 April 63 348
Amounts released to income (63) (345)
Cash received to be deferred – 60
Balance carried forward at 31 March – 63
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Deferred income relates to funding where the agreement specifies some of the income is in relation to a future period.

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12 Obligations under operating leases

At 31 March 2023, the Charity had total future minimum lease payments under non-cancellable operating leases for office rent as follows.

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2023 2022
£000 £000
Within one year 42 126
After one but within two years – 42
Total obligations under operating leases 42 168
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13 Analysis of net assets between funds

Fund balances at 31 March 2023

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Unrestricted Designated Restricted Endowment Total Total
funds funds funds funds 2023 2022
£000 £000 £000 £000 £000 £000
Represented by:
Tangible fixed assets – 8 – – 8 6
Fixed asset investments 317 – 863 22,558 23,738 25,001
Current assets – cash 747 – 9,445 18 10,210 10,328
Current assets – debtors 80 – 317 – 397 295
– –
Creditors: amounts falling (215) (2,502) (2,717) (2,500)
due within one year
Total funds 929 8 8,123 22,576 31,636 33,130
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Restricted fixed asset investments

Under the Community First programme, up to 100% of capital gains over the original value of the investment, indexed by the Retail Price Index (RPI), may be paid to endowment fund grant making (restricted) accounts annually. The balance is now £863k and will be drawn down once the spending plans are finalised by the fund holder.

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75

Notes to the accounts

14 Endowment funds

The LCF holds both expendable and permanent endowment funds. Many of The LCF’s endowment funds have benefitted 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 material funds are shown below along with totals for each scheme. We have separated out any individual Grassroots Grant Fund or Community First Fund with an opening balance of over £250,000. The remainder of funds are grouped together under Other Grassroot Grants funds or Other Community First funds.

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Balance
Balance at Investment at 31
1 April Transfers gain / March
2022 Income Expenditure in/(out) (loss) 2023
£000 £000 £000 £000 £000 £000
Bromley Community Fund 287 – – – (11) 276
Croydon Community Fund 456 – – – (18) 438
Deutsche Bank Fund 725 – – – (29) 696
Evening Standard 2,884 – – – (109) 2,775
Dispossessed Fund
Gordon Family Fund 351 – – – (14) 337
Lambeth Community Fund 283 – – – (108) 175
Norton Rose GG 534 – – (60) (22) 452
Endowment Fund
Victoria Foundation Fund 449 – – (17) (18) 414
Westminster Fund 471 – – – (19) 452
Other Grassroots Grants funds 1,950 – – (118) 15 1,847
Total Grassroots Grants 8,390 – – (195) (333) 7,862
funds (expendable)
Barnet Fund 392 – – – (16) 376
Gordon Family 1,152 – – (109) (45) 998
CF Endowment Fund
Cadogan Kensington and 272 26 – – (10) 288
Chelsea Foundation CF
Endowment Fund
Land Securities Westminster 279 – – – (10) 269
Fund
Living Cities Community Fund 1,142 – – (25) (43) 1,074
The London Leg Up Fund 409 – – – (15) 394
Other Community First funds 2,814 – – (30) (106) 2,678
Total Community First 6,460 26 – (164) (245) 6,077
funds (expendable)
Grassroots
Community First
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14 Endowment funds (continued)

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Balance
Balance at Investment at 31
1 April Transfers gain / March
2022 Income Expenditure in/(out) (loss) 2023
£000 £000 £000 £000 £000 £000
Cresswell Trust 77 – – (2) (2) 73
Lambeth Endowment Fund 1,495 – – – (57) 1,438
Lewisham Fund 424 – – – (17) 407
Portuguese Fund 784 – – – (30) 754
South London Opportunity 201 – – – (8) 193
Fund
Wandsworth Community Fund 620 – – (15) (24) 581
– –
Total other expendable 3,601 (17) (138) 3,446
endowment funds
Total expendable 18,451 26 – (376) (716) 17,385
endowment
Barnet Endowment 90 – – – (3) 87
Beaufoy Trust 1,778 – – – (67) 1,711
Pedlar’s Acre Trust 1,295 38 – (230) (124) 979
unapplied total return
Pedlar’s Acre Trust 1,837 – – – – 1,837
Richmond Civic Trust 599 – – – (22) 577
Total permanent 5,599 38 – (230) (216) 5,191
endowment
Total endowment funds 24,050 64 – (606) (932) 22,576
Expendable
Permanent
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The purposes and restrictions of these funds are summarised below:

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Bromley Community Fund To support the local community in Bromley
Croydon Community Fund To support the local community in Croydon
Deutsche Bank Fund To support homeless people and those at risk of homeless
Evening Standard Dispossessed Fund To tackle a variety of social issues affecting disadvantaged Londoners
Gordon Family Fund To support older people who are experiencing poverty and isolation
Lambeth Community fund To support the local community in Lambeth
Norton Rose GG Endowment Fund To support community sports organisations for young people
Victoria Foundation Fund To support the New Victoria Hospital in Kingston
Westminster Fund To support employment and opportunities for young people in
Westminster
Barnet Fund To support the local community in Barnet
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Notes to the accounts

14 Endowment funds (continued)

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Gordon Family CF Endowment Fund To support older people who are experiencing poverty and isolation
Cadogan Kensington and Chelsea To support the local community in Kensington and Chelsea near the
Foundation CF Endowment Fund Grants Cadogan estate
Land Securities Westminster Fund To support employment and opportunities for young people in
Westminster
Living Cities Community Fund To support local communities to take action on climate in Southwark and
Westminster
The London Leg Up Fund To benefit community organisations supporting disadvantaged people
across London, with a focus on young people
Cresswell Trust To support the local community in Wandsworth
Lambeth Endowment Fund To support the local community in Lambeth
Lewisham Fund To support the local community in Lewisham
Portuguese Fund To support the local Portuguese community in Lambeth
South London Opportunity Fund To support the local community in Wandsworth
Wandsworth Community Fund To support the local community in Wandsworth
Barnet Endowment To support the local community in Barnet
Beaufoy Trust To support the local community in Lambeth
Pedlar's Acre Trust To support the local community in Lambeth
Richmond Civic Trust To support the local community in Richmond
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Grants from endowment funds are made from the restricted fund relating to the endowment fund of the same name, grants for the year ended 31 March 2023 can be seen 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 The LCF’s endowment spending policy and allow further application of the funds as grants.

Transfers from the permanent endowment fund Pedlar’s Acre Trust to restricted funds represent the release of capital as allowed under the Total Return Order granted by the Charity Commission so that the funds may be applied as grants. Further details can be found in Note 17.

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15 Restricted funds

LCF holds many restricted funds. We have separated out any material fund with an opening balance or closing balance of over £100,000. The funds of the Charity include restricted funds listed above; the closing balance represents the unexpended balances of income held on trust for specific purposes. They take into account multi-year commitments, to be paid to beneficiaries in future financial years.

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Balance
Balance at Transfers at 31
1 April in / March
2022 Income Expenditure (out) 2023
£000 £000 £000 £000 £000
Safe Accommodation PIE – 750 – – 750
JP Morgan 805 742 (833) – 714
Stanhope Foundation 319 654 (435) – 538
Peabody Community Fund 471 850 (830) – 491
Wimbledon Foundation Community Fund 400 624 (622) – 402
GLA 82072 MoJ DA SV 22-25 – 1,482 (1,092) – 390
The CJ Fund 379 – (30) – 349
Cockayne Fund 20 1,800 (1,467) (8) 345
Skill Up Step Up Employability Fund 353 450 (465) – 338
Lambeth Grants Funds (Combined) – – (144) 447 303
Youth Futures Fund 317 146 (308) 83 238
Lambeth Wellbeing Fund 141 107 (95) 42 195
Living Communities Fund 272 43 (162) 17 170
Gordon Family (combined) 131 – (35) 29 125
Broadgate Community Fund 5 120 – (6) 119
Lambeth Youth Opportunities Fund 53 51 (1) – 103
Deutsche Bank Older People's Fund 47 33 (27) – 53
Evening Standard Dispossessed Appeal 548 38 (414) 78 250
Lambeth CF Endowment Fund 196 20 – (196) 20
Pedlar's Acre Trust 104 5 – 126 235
Sue Estermann Fund 159 – – – 159
Other restricted funds 3,464 3,594 (5,146) (76) 1,836
Total Restricted Funds 8,184 11,509 (12,106) 536 8,123
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Notes to the accounts

15 Restricted funds (continued)

The purposes and restrictions of these funds are summarised below:

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Safe Accommodation PIE To support improvements to safe accommodation for domestic abuse
survivors
JP Morgan To support pathways to economic opportunities for BME communities
Stanhope Foundation To support disadvantaged communities with employability and
opportunities
Peabody Community Fund To support residents where Peabody Housing association operates
Wimbledon Foundation Community Fund To support the local community in Merton and Wandsworth
GLA 82072 MoJ DA SV 22-25 To support victims of domestic abuse and sexual violence
The CJ Fund To support young people in Kensington and Chelsea with employability
and mental health
Cockayne Fund To support art projects for artists from diverse cultures
Skill Up Step-Up Employability Fund To support disadvantaged young people with skills, employability and
training
Lambeth Grants Funds (Combined) To support the local community in Lambeth
Youth Futures Fund To support disadvantaged young people with skills, employability and
training
Lambeth Wellbeing Fund To support the wellbeing and health of marginalised communities in
Lambeth
Living Communities Fund To support local communities to take action on climate in Southwark and
Westminster
Gordon Family (combined) To support older people who are experiencing poverty and isolation
Broadgate Community Fund To support local communities around the Broadgate campus near
Liverpool Street
Lambeth Youth Opportunities Fund To support young people in the borough of Lambeth
Deutsche Bank Older People's Fund To support older people who are experiencing poverty and isolation
Evening Standard Dispossessed Appeal To tackle a variety of social issues affecting disadvantaged Londoners
Lambeth CF Endowment Fund To support the local community in Lambeth
Pedlar's Acre Trust To support small, grassroots community organisations in Lambeth
Sue Estermann Fund To support research at the Royal Free Hospital
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Annual report and financial statements

15 Restricted funds (continued)

Transfers between funds

‘Transfers in’ generally represent a release of the capital from endowment funds. ‘Transfers out’ generally represent the pooling of the fund with other funds of similar purpose at the point of awarding grants.

Grenfell Children and Young People’s Fund

Following the closure of the Grenfell Tower emergency appeal, the remaining funds from the Evening Standard Dispossessed Fund appeal and the Artists for Grenfell appeal held were consolidated to form the Grenfell Children & Young People’s Fund, a five-year fund set up to support children and young people affected by the tragedy. In addition to the consolidated funds, the Charity received a restricted donation from the Royal Borough of Kensington and Chelsea of £410k in 2018-19. Any new funds raised in relation to the Grenfell Tower are now added to this fund.

16 Designated Funds

The tangible fixed assets fund of £8k (2022: £6k) represents the net book value of The LCF’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 the day-to-day operation of the Charity and should therefore not be considered realisable to meet commitments.

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81

Notes to the accounts

17 Funds of Pedlar’s Acre Trust

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 number 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 2023 are shown below:

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The London Pedlar’s
Community Acre
Foundation Trust Total
Notes £000 £000 £000
Assets of each charity at 31 March 2023
Opening balance at 1 April 2022 29,998 3,132 33,130
Income 12,962 38 13,000
–
Expenditure (13,550) (13,550)
Fund transfers in/(out) 18 230 (230) –
Loss on investments (820) (124) (944)
Net movement in funds (1,178) (316) (1,494)
Closing balance as at 31 March 2023 28,820 2,816 31,636
Tangible fixed assets 8 – 8
Fixed asset investments 20,922 2,816 23,738
Debtors 397 – 397
Cash at bank and in hand 10,210 – 10,210
Creditors: amounts falling due within one year (2,717) – (2,717)
Net assets at 31 March 2023 28,820 2,816 31,636
Funds of the charities
–
Expendable endowment funds 17,385 17,385
Permanent endowment funds 2,375 2,816 5,191
Restricted funds 8,123 – 8,123
Unrestricted funds 937 – 937
Closing balance at 31 March 2023 28,820 2,816 31,636
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18 Application of the power of total return to Pedlar’s Acre Trust

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, until the power to release the funds is exercised.

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 the 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 restricted income funds and so is available for grant-making expenditure. During the year to 31 March 2023, 3.5% of the value of the fund as at 31 December 2021 was transferred 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 investment fund and application of total return to permanent endowment fund is as follows:

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Total Total
2023 2022
£000 £000
Opening value of permanent endowment at 1 April 3,132 2,810
Less:
Value of endowment at 31 March 2004 (1,837) (1,837)
Opening value of unapplied total return at 1 April 1,295 973
Add:
Investment return: income 38 58
Investment return: unrealised (loss)/gain on investment (124) 264
Less:
Transfers to income (230) –
Unapplied total return after transfer to income 979 1,295
Add:
Value of endowment at 31 March 2004 1,837 1,837
Permanent endowment including unapplied total return as at 31 March 2,816 3,132
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Notes to the accounts

19 Funds held in capacity as agents – Deptford Challenge Trust

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 31 March 2023 there were no assets or liabilities relating to the fund (2022: NIL).

20 Related party transactions

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31 March 31 March
Trustee / Relationship 2023 2022
Organisation Employee with LCF Description £000 £000
The London Community Foundation Gaynor Humphries Trustee Donation 4 4
Carers Hub Lambeth Laura Perkins Employee Grant 10 –
English Touring Company Tim Ingram Trustee Grant – 25
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*Paid in full, with no outstanding balance at the end of the year.

21 Analysis of grants

21a Analysis of grants by recipient

Total
2023
£000		 Total
2023
Number
Grants awarded to institutions 14,167 649
Total 14,167 649

Most of the grant-making at LCF is to charities and community groups each year.

No individual grant is considered material to the Charity, hence there are no individual named grant recipients.

There was no material value of grants awarded to one single institution.

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21b Analysis of grants by theme

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Total Number
Awarded of grants
Primary beneficiary £000 awarded
Black and Minoritised Ethnic communities 4,532 146
Children and Young People 2,614 148
Arts 1,492 94
People with mental health or physical health issues 1,455 51
Women 845 22
Older People 711 41
People affected by homelessness 493 26
Refugees and migrants 479 33
Alcohol / Drug Addiction 405 1
Local residents 387 30
People living in poverty 202 19
People with learning difficulties 128 12
Ex-offenders or offenders or at risk of offending 127 3
Families/Parents/Lone parents 80 7
LGBTQ+ communities 75 5
Carers 69 6
Men 33 3
People affected by violence, crime, or abuse 30 1
Long-term unemployed 10 1
Grand Total 14,167 649
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22 Post balance sheet event

There were no post balance sheet events to report for 22/23.

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Notes to the accounts

Prior year comparatives

Statement of financial activity for the year to 31 March 2022

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Restated Restated Restated Restated
Unrestricted Designated Restricted Endowment Total Total
Notes funds funds funds funds 2022 2021
£000 £000 £000 £000 £000 £000
Income and
endowments from:
Donations and legacies 2a 992 – 10,264 27 11,283 20,284
Charitable activities 2b 79 – 23 – 102 369
Investments 2c 296 – 383 58 737 761
Other trading activities 2d 61 – – – 61 60
Total income 1,428 – 10,670 85 12,183 21,474
Expenditure on:
Raising funds 3a 542 12 – 554 531
Grants programme 3b 883 58 9,285 – 10,226 19,481
Community development 3c 2 – 23 – 25 21
Total expenditure 1,427 58 9,320 – 10,805 20,033
Net income / 1 (58) 1,350 85 1,378 1,441
(expenditure) before
investment gains
and losses
Net gains / (losses) 9 25 – – 1,992 2,017 4,235
on investments
Net income / 26 (58) 1,350 2,077 3,395 5,676
(expenditure)
Transfers in / (out) 14,15 68 – 1,534 (1,602) – –
between funds
Net movement in funds 94 (58) 2,884 475 3,395 5,676
Reconciliation of funds
Total funds at 1 April 796 64 5,300 23,575 29,735 20,059
Total funds at 31 March 12 890 6 8,184 24,050 33,130 29,735
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Annual report and financial statements

Prior year comparatives (continued)

Refers to 2a – Income from donations and legacies

----- Start of picture text -----
Restated Restated Restated
Unrestricted Restricted Endowment Total Total
funds funds funds 2022 2021
£000 £000 £000 £000 £000
Trusts and foundations 226 2,835 27 3,088 10,480
Corporations 432 3,195 – 3,627 4,020
Local public authorities 174 3,523 – 3,697 5,049
Individuals 160 711 – 871 735
Total income from donations and legacies 992 10,264 27 11,283 20,284
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Refers to 2b – Income from charitable activities

----- Start of picture text -----
Restated Restated
Unrestricted Restricted Endowment Restated Total
funds funds funds Total2022 2021
£000 £000 £000 £000 £000
Trusts and foundations – – – – 45
Corporations 4 – – 4 4
Local public authorities 73 23 – 96 17
Individuals 2 – – 2 –
National public authorities – – – – 303
Total income from charitable activities 79 23 – 102 369
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Refers to 2c – Income from investments

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2022 2021
£000 £000 £000 £000 £000
Interest receivable 1 – – 1 3
Investment income 295 383 58 736 758
Total income from investments 296 383 58 737 761
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Refers to 2d – Income from other trading activities

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2022 2021
£000 £000 £000 £000 £000
Rental income 61 – – 61 60
Total income from other trading activities 61 – – 61 60
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Notes to the accounts

Prior year comparatives (continued)

Refers to note 3a – Expenditure on raising funds

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2022 2021
Notes £000 £000 £000 £000 £000
Investment management costs
Staff costs 6 9 – – 9 8
Other direct costs – – – – –
Allocated support costs 4 6 – – 6 6
Cost of raising donations and legacies
Staff costs 6 291 – – 291 257
Other direct costs 21 12 – 33 38
Allocated support costs 4 204 – – 204 212
Cost of generating rental income
Staff costs 6 5 – – 5 4
Other direct costs 3 – – 3 3
Allocated support costs 4 3 – – 3 3
Total expenditure on raising funds 542 12 – 554 531
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Refers to note 3b – Expenditure on charitable activities: grant programme

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2022 2021
Notes £000 £000 £000 £000 £000
Grants payable – 9,169 – 9,169 18,432
Staff costs 6 550 8 – 558 563
Other direct costs 4 108 – 112 85
Allocated support costs 4 386 – – 386 401
Total expenditure on raising funds 940 9,285 – 10,225 19,481
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Annual report and financial statements

Prior year comparatives (continued)

Refers to note 3c – Expenditure on charitable activities: community development

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
funds funds funds 2022 2021
Notes £000 £000 £000 £000 £000
Other direct costs 2 23 – 25 21
Total expenditure on raising funds 2 23 – 25 21
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Refers to Note 12 – Analysis of net assets between funds

----- Start of picture text -----
Unrestricted Designated Restricted Endowment Total
funds funds funds funds 2022
£000 £000 £000 £000 £000
Fund balances at 31 March 2022
Represented by:
Tangible fixed assets – 6 – – 6
Fixed asset investments 329 – 622 24,050 25,001
Current assets - cash 683 – 9,645 – 10,328
Current assets - debtors 100 – 195 – 295
Creditors: amounts falling due within one year (222) – (2,278) – (2,500)
Total funds 890 6 8,184 24,050 33,130
----- End of picture text -----

The restricted funds represented by fixed asset investments are made up of a few endowment funds where The 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 been drawn down until spending plans are finalised.

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Notes to the accounts

Prior year comparatives (continued)

Refers to Note 14 – Endowment funds

The LCF holds both expendable and permanent endowment funds. Many of The LCF’s endowment funds have benefitted 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 funds are shown below along with totals for each scheme.

----- Start of picture text -----
Balance
Balance at Investment at 31
1 April Transfers gain / March
2021 Income Expenditure in/(out) (loss) 2022
£000 £000 £000 £000 £000 £000
Bromley Community Fund 263 – – – 24 287
Croydon Community Fund 418 – – – 38 456
Deutsche Bank Fund 663 – – – 62 725
Evening Standard 3,652 – – (1,000) 232 2,884
Dispossessed Fund
Gordon Family Fund 321 – – – 30 351
Lambeth Community Fund 260 – – – 23 283
Norton Rose GG 489 – – – 45 534
Endowment Fund
Victoria Foundation Fund 412 – – – 37 449
Westminster Fund 431 – – – 40 471
Other Grassroots Grants funds 1,786 – – – 164 1,950
Total Grassroots Grants 8,695 – – (1,000) 695 8,390
funds (expendable)
Barnet Fund 468 – – (112) 36 392
Gordon Family 1,149 – – (93) 96 1,152
CF Endowment Fund
Cadogan Kensington and 250 27 – (27) 22 272
Chelsea Foundation CF
Endowment Fund
Land Securities Westminster 257 – – – 22 279
Fund
Living Cities Community Fund 1,250 – – (207) 99 1,142
The London Leg Up Fund 389 – – (13) 33 409
Other Community First funds 2,733 – – (150) 231 2,814
Total Community First 6,496 27 – (602) 539 6,460
funds (expendable)
Grassroots
Community First
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Annual report and financial statements

Prior year comparatives (continued)

----- Start of picture text -----
Balance
Balance at Investment at 31
1 April Transfers gain / March
2021 Income Expenditure in/(out) (loss) 2022
£000 £000 £000 £000 £000 £000
Cresswell Trust 71 – – – 6 77
Lambeth Endowment Fund 1,373 – – – 122 1,495
Lewisham Fund 387 – – – 37 424
Portuguese Fund 719 – – – 65 784
South London Opportunity 184 – – – 17 201
Fund
Wandsworth Community Fund 570 – – – 50 620
Total other expendable 3,304 – – – 297 3,601
endowment funds
Total expendable 18,495 27 – (1,602) 1,531 18,451
endowment
Barnet Endowment 83 – – – 7 90
Beaufoy Trust 1,636 – – – 142 1,778
Pedlar's Acre Trust 2,810 58 – – 264 3,132
Richmond Civic Trust 551 – – – 48 599
Total permanent 5,080 58 – – 461 5,599
endowment
Total endowment funds 23,575 85 – (1,602) 1,992 24,050
Expendable
Permanent
----- End of picture text -----

Grants from endowment funds are made from the restricted fund relating to the endowment fund of the same name, grants for the year ended 31 March 2022 can be seen 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 The LCF’s endowment spending policy and allow further application of the funds as grants.

Transfers from the permanent endowment fund Pedlar’s Acre Trust to restricted funds represent the release of capital as allowed under the Total Return Order granted by the Charity Commission so that the funds may be applied as grants. Further details can be found in Note 18.

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Notes to the accounts

Prior year comparatives (continued)

Refers to Note 15 – Restricted funds

The LCF holds many restricted funds, a sample of which are shown in the note below along with totals from each type of donor.

----- Start of picture text -----
Balance
Balance at Transfers at 31
1 April in / March
2021 Income Expenditure (out) 2022
£000 £000 £000 £000 £000
Grant making funds
Deutsche Bank small grants 52 89 – 12 153
Evening Standard Dispossessed Fund 575 4 (478) – 101
– Homelessness Fund
Evening Standard Dispossessed Fund 237 46 (122) – 161
– The Excluded Initiative
Save London Lives (ESDF) (8) 180 (43) – 129
Gordon Family (combined) Fund (7) – – 138 131
Grenfell Children and Young People's Fund 28 25 197 – 250
JPMorgan Fund 147 745 (86) – 806
Lambeth Wellbeing Fund 101 342 (302) – 141
Living Communities Fund (1) – 5 268 272
London Communities Coronavirus Appeal 112 (3) (112) 3 –
London Impact Awards 152 – (124) – 28
Made by sport 'Clubs in Crisis' Fund 504 (140) (364) – –
Mayor's Office for Policing & Crime Violence 705 1,543 (1,530) – 718
Against Women And Girls Fund (MOPAC)
Ministry of Justice Domestic Abuse – 800 (420) – 380
and Sexual Violence Fund
Peabody Community Fund 440 410 (379) – 471
Stanhope Foundation 70 551 (302) – 319
Skill up Step-up Employability Fund – 465 (112) – 353
The CJ Fund – 439 (60) – 379
The Young People's Fund 123 – (74) – 49
Wimbledon Foundation Community Fund – 499 (99) – 400
Other grant making funds 798 4,292 (4,147) 177 1,120
Total grant making funds 4,028 10,287 (8,552) 598 6,361
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Annual report and financial statements

Prior year comparatives (continued)

Balance at
1 April
2021
£000		 Income
£000		 Expenditure
£000		 Transfers
in /
(out)
£000		 Balance
at 31
March
2022
£000
Endowment funds (revenue element) 103 3 (59) – 47
Deutsche Bank Older People's Fund
Evening Standard Dispossessed Appeal
Lambeth CF Endowment Fund
Pedlar's Acre Trust
Sue Estermann Fund		 81
167
99
159
663		 92
29
5
–
254		 (589)
–
–
–
(120)		 964
–
–
–
(28)		 548
196
104
159
769
Other endowment funds(income element) 147 745 (86) – 806
Total endowment funds(revenue element) 1,272 383 (768) 936 1,823
Total Restricted Funds 5,300 10,670 (9,320) 1,534 8,184

The funds of the charity include restricted funds listed above, the closing balance represents the unexpended balances of income held on trust for specific purposes. They take into account multi-year commitments, to be paid to beneficiaries in future financial years.

Grant making funds

Funds held for the purposes of grant making to communities, groups and projects as defined by the purpose of each fund.

Transfers

‘Transfers in’ generally represent a release of the capital from endowment funds. ‘Transfers out’ generally represent the pooling of the fund with other funds of similar purpose at the point of awarding grants.

Grenfell Children and Young People’s Fund

Following the closure of the Grenfell Tower emergency appeal, the remaining funds from the Evening Standard Dispossessed Fund appeal and the Artists for Grenfell appeal held were consolidated to form the Grenfell Children & Young People’s Fund, a five-year fund set up to support children and young people affected by the tragedy. In addition to the consolidated funds, the Charity received a restricted donation from the Royal Borough of Kensington and Chelsea of £410,000 in 2018-19. Any new funds raised in relation to the Grenfell Tower are now added to this fund.

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Notes to the accounts

Prior year comparatives (continued)

Refers to Note 17 – Funds of Pedlar’s Acre Trust

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 number 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 2023 are shown below:

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The London Pedlar’s
Community Acre
Foundation Trust Total
Notes £000 £000 £000
Assets of each charity at 31 March 2022
Opening balance at 1 April 2021 26,925 2,810 29,735
Income 12,125 58 12,183
–
Expenditure (10,805) (10,805)
Fund transfers in/(out) 18 – – –
Loss on investments 1,753 264 2,017
Net movement in funds 3,073 322 3,395
Closing balance as at 31 March 2022 29,998 3,132 33,130
Tangible fixed assets 6 – 6
Fixed asset investments 21,869 3,132 25,001
Debtors 295 – 295
Cash at bank and in hand 10,328 – 10,328
Creditors: amounts falling due within one year (2,500) – (2,500)
Net assets at 31 March 2022 29,998 3,132 33,130
Funds of the charities
–
Expendable endowment funds 18,451 18,451
Permanent endowment funds 2,467 2,816 5,599
Restricted funds 8,184 – 8,184
Unrestricted funds 896 – 896
Closing balance at 31 March 2022 29,998 2,816 33,130
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Refers to Note 18 – Application of the power of total return to Pedlar’s Acre Fund

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 the 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 2022, it was decided not to transfer 3.5% of the value of the fund as at 31 December 2020 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 2021/22.

The investment fund and application of total return to permanent endowment fund is as follows:

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2022 2021
£000 £000
Opening value of permanent endowment at 1 April 2021 2,810 2,328
Less:
Value of endowment at 31 March 2004 (1,837) (1,837)
Opening value of unapplied total return at 1 April 2021 973 491
Add:
Investment return: income 58 60
Investment return: unrealised (loss)/gain on investment 264 523
Less:
Transfers between funds – –
Unapplied total return before transfer to income 1,295 1,074
Less:
Unapplied total return applied – (101)
Sub total: unapplied total return as at 31 March 2022 1,295 973
Add:
Value of endowment at 31 March 2004 1,837 1,837
Permanent endowment including unapplied total return as at 31 March 3,132 2,810
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Contact

The London Community Foundation

Acknowledgements

Design: Strudel Front cover image: Brixton Windmill Community Club

Contact

The London Community Foundation Canopi, 7-14 Great Dover Street, London, SE1 4YR

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

Registered charity number 1091263 Company limited by guarantee number 4383269

Member

96

The London Community Foundation londoncf.org.uk