> ! } == , - \ yi, | —_ ———— ‘2 **Annual report** | > J * **and financial** \ 2 **statements For the year ending 31 March 2024 londoncf.org.uk**
**londoncf.org.uk** Registered charity number 1091263 Company limited by guarantee number 4383269
**Annual report and financial statements**
## **The London Community Foundation**
## **Who we are**
**We are the community foundation for London. We help you make a difference to London, where it matters most.**
**London is the greatest city in the world. But London is a polarised city, of extreme inequality – a city with the country’s greatest wealth, but also the worst deprivation, where people struggle just to get by.**
**At The London Community Foundation, 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. Our task is to champion local organisations by connecting donors to them, channelling funds to their work, and supporting them directly to be stronger.**
Since 2010, we have committed over
## £127 million
in grants to support London’s grassroots organisations
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|**Contents**
L'|**Contents**
L'|**Contents**
L'|**Contents**
L'|**Contents**
L'|**Contents**
L'|**Contents**
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||||’|||||
||||||**Chair’s statement**||**06**|
||||||**Chief Executive’s welcome**||**08**|
||||||**Our impact**||**10**|
||||||Women: Valuing women in their community||10|
||||||Young people: Investing in opportunities, apprenticeships|||
||||||and relationships||12|
||||||Local: The power of local||14|
|~|||fe|||**A year at The London Community Foundation**
**Trustees’ report**
Legal and administrative information
Objectives and activities||**16**
**18**
19
23|
||||||Grant making policy||25|
||||||Structure, governance and management
Public benefit statement||25
28|
||||||Achievements and performance||29|
||||||Financial review||33|
||||||Reserves||38|
||||||Reserves policy||38|
|at|at|D|.|»_-|Investment policy and management
Principal risks and uncertainties
People and pay||40
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|||PFaf||af|Future plans
Our approach to fundraising
Statement of Trustees’ responsibilities
**Independent auditor’s report to the members of**
**The London Community Foundation**
**Statement of financial activities**
**Balance sheet**
**Statement of cash flows**||50
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53
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**61**
**62**
**63**|
||||||**Notes to the financial statements**||**65**|
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**Annual report and financial statements**
## **The London Community Foundation**
## **Chair’s statement**
## **Strengthening community organisations for the long term**
**We are all better off when we have a strong and vibrant community and voluntary sector in London. But we cannot take it for granted, we need to come together to provide resources and support so the sector does not just survive, but thrives for the long term.**
emergency funding for women-led organisations to respond to the cost-of-living crisis, distributed capital funding to develop local refuges and launched a new round of funding for specialist community organisations tackling violence against women and girls. We are really committed to working in this space and to take part in channelling more funds to this important area of need.
I have been honoured to Chair The London Community Foundation for nearly five years. In that time I have seen the valuable role we play in times of crisis, such as during the pandemic and more recently during the cost-of-living crisis. I have also developed a deep understanding of the vital long-term role The London Community Foundation plays in supporting, strengthening and advocating for the grass-roots community and voluntary sector in London. This year we continued this work, engaging with our donors to encourage them to give core funding to strengthen organisations, and multi-year funding so they can be more sustainable for the long-term. I have been inspired by how many have adopted this way of giving and the impact it has had on the organisations they support.
This year also saw us grow our thematic funds - our Youth Futures Fund and new Women’s Fund for London. It has long been our ambition to create funds that provide our donors and friends with opportunities to come together to make a collective impact in areas that really matter to London. We are proud to now be able to channel more funds towards helping women and young people in our city and I would like to say a special thanks to those donors who have supported these so far.
This year we further strengthened our relationship with the Mayor of London and the Mayor’s Office for Police and Crime (MOPAC), supporting them to achieve their long-term mission to tackle violence against women and girls in London. As part of our partnership, we deployed
It has also been a time of organisational change as we said goodbye to Kate Markey in April, our Chief
Executive of six years. Kate made an incredible impact during her time at The London Community Foundation. Among her many achievements was leading us through the pandemic, deploying £22m in emergency funding to London’s community organisations. Her commitment to our communities and the vital work of community organisations was unstinting. I would like to say a special thank you to her for all she did while she was working with us.
I would also like to recognise The London Community Foundation team and Board of Trustees and thank them for all their hard work this year.
Yours sincerely,
**Russell Prior** Chair The London Community Foundation
## **Our impact across London**
£11,496,000 a awarded to charitable organisations
780 grants awarded
## £14,738
average grant size
## 29%
of funding awarded to groups primarily focused on supporting Black and Minoritised Ethnic people
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**Annual report and financial statements**
## **Chief Executive’s welcome**
## **Local change is our inspiration**
**What keeps us going, what gets us up every day as a team, as the community foundation for London, is our unshakeable belief in the value and power of community leaders and the vital organisations they run.**
This year was difficult and unsettling. Global events were hard to witness and locally our communities continued to struggle with the cost of living. But despite the environment we work in, we continue to be inspired by the change that is happening at a local level. Change that is led by passionate,
committed and experienced community leaders who make a difference to people and families in their communities every day.
The power of community organisations was emphasised to The London Community Foundation
team at the beginning of the year with two special events we hosted. The first was to celebrate the over 400 young people who have benefitted from our Skill Up Step Up programme in partnership with Barclays and the Evening Standard. It was incredibly moving for the team to hear from a panel of young people about the barriers they faced accessing employment and training in London, and how the local community organisations had empowered them to fulfil their potential.
The second event showcased the 41 community organisations who provide specialist support to survivors of violence and exploitation as part of our MOPAC-funded Violence Against Women and Girls Grassroots Fund. It was humbling for the team to hear from female community leaders who have dedicated their lives to helping survivors. It was important as well for everyone in the room to hear their call to action, for more funding for the sector to ensure more women are protected in the future.
## **The London Community Foundation**
Awarding £11.5 million in funding to community organisations in London this year is an achievement we are very proud of, but we recognise that this would not be possible without our generous donors and partners and, most importantly, the vital community organisations we support.
Our achievements are also a credit to our committed team and Board of Trustees, who work hard and strive to keep learning and developing, so The London Community Foundation can best meet the needs of London’s communities – thank you so much.
With my thanks,
## **Paul Buchanan**
Interim Chief Executive Officer _In lieu of Kate Markey, CEO, who stepped down in April 2024. 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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**Annual Report and Financial Statements**
**The London Community Foundation**
## **Our impact: women**
## **Valuing women in their community**
**Funding and support**
## £2,670,000
“I believe that building financial resilience is of the utmost importance because it not only takes care of immediate monetary issues but also future ones – and most importantly for whole families.”
**STORM Family Centre**
There are over four million women and girls living, working, learning, and caring in London. But their experiences in our Capital vary hugely, with many being marginalised, unable to access the same opportunities as others. Women are more likely to be living in poverty, to be in low paid jobs and to experience violence.
Early in the year, we worked with the **Mayor’s Office for Policing and Crime (MOPAC)** to distribute £1m of emergency funding through the **Violence Against Women and Girls Cost of Living Fund** . This fund helped to ensure the viability of 44 specialist organisations facing these same financial challenges caused by the cost-ofliving crisis.
Evidence from our **Together for London** cost-ofliving campaign last year clearly showed that women are also disproportionately impacted by rising costs. In 2023/24 we launched the new **Women’s Fund for London** in response. £230,000 was contributed by a range of donors to provide women in London with the skills, tools, and knowledge to increase their financial resilience and that of their families.
In June we celebrated the end of **MOPAC’s Violence Against Women and Girls (VAWG) Grassroots Fund** and the over 30,000 women, girls and families supported. The event was attended by representatives of the 41 specialist VAWG organisations funded as well as **Deputy Mayor for Policing and Crime, Sophie Linden** . In August **Mayor, Sadiq Khan** also visited one of the VAWG Grassroots Fund cohort of organisations.
At The London Community Foundation, we have a strong track record of supporting incredible womenled community organisations which have a unique understanding of the needs and issues facing women in their community.
The Mayor’s visit coincided with the announcement of a further £3m for specialist VAWG organisations. The **MOPAC Violence Against Women and Girls**
## **Grassroots Fund 2023-2025** distributed multi-
year grants to 36 organisations helping to provide safe spaces for women and girls. 77% of these grants went to organisations led by and for Black and Minoritised Ethnic (BME) communities, with, all the grants supporting marginalised communities.
In addition £750,000 was distributed by the **MOPAC / Greater London Authority (GLA) Safe Accommodation Fund** . 8 organisations across London received funding to help towards the redecoration and refurbishment costs of refuge locations. The project directly impacted 959 people across 16 boroughs in 58 refuges.
The **Home Office** also committed £1.2m of funding to encourage stability and financial resilience for VAWG specialist organisations across London. The **Home Office VAWG Specialist Support Services Fund** supported 20 different projects with two-year grants.
of our funding was awarded to community organisations supporting women
## 23%
of our total funding was focused on supporting women
£1,558,000
of funding awarded to Violence Against Women and Girls (VAWG)
specialist organisations
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**Annual report and financial statements The London Community Foundation**
## **Our impact: young people**
## **Investing in opportunities, apprenticeships and relationships**
“As a small, grassroots and survivor-led charity, the impact of this funding will be substantial. We know first hand that when [young] survivors are supported, lives are changed and cycles of harm are disrupted.”
## **Funding and support**
£2,286,882
funding was awarded to community organisations supporting children and young people
## **Youth Realities**
Young people under 25 represent almost a third of London’s population. They continue to be hit hard by the cost-of-living crisis and the legacy of the pandemic. In 2023/24, we helped young people gain vital skills, access new opportunities and experiences and explore the importance of healthy relationships.
The year began with a celebration of young people fulfilling their potential through education and quality employment. **Barclays** hosted an event to celebrate the first 15 months of their £1m **Skill Up Step Up** programme, which helps train young people and connect them with future jobs and apprenticeships. It was inspiring to hear directly from young people who had benefited from the work of our five partner charities and to see their stories feature in the **Evening Standard** .
We entered the third year of our **Youth Futures Fund** , having already seen 1,682 young people supported so far. This year we brought various
donors (including **Bank of Ireland** and **Fairview Homes** ) together to support those working with young people at risk of violence to empower them to have healthy relationships and educate them on the impact of sexism, misogyny, and violence. £250,000 was contributed to support three innovative and effective community-led projects working with young people across London.
Supporting young people, and providing them with new opportunities and experiences, continues to be a priority for us and our partners. The **Young People’s Fund** , in partnership with **Peabody Community Foundation** , awarded a further £60,000 to six projects funded last year. The **Vanquis Banking Group** awarded six grants of £10,000 to community organisations delivering activities to alleviate underlying issues that prevent social and financial inclusion for young people. Meanwhile, the **Lambeth Youth Opportunities Fund** distributed £100,000 to six organisations across the borough.
## 20%
of our overall funding was focused on children and young people
132 youth and children’s organisations supported
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**Annual report and financial statements**
**The London Community Foundation**
## **Our impact: local**
## **The power of local**
“The funds from The London Community Foundation will enable important work educating and engaging children and adults from the locality through new, fun and creative activities. We hope that many more people will be able to enjoy the unique wildlife of Deptford Creek.”
## **Funding and support**
## £1,976,664
awarded to community projects in specific areas of the city
## **Creekside Discovery Centre**
The London Community Foundation are experts in local transformation. We believe in the power of investing in our local communities and neighbourhoods. Communities too often defined by the disadvantage they experience are rich in ideas, insight, networks and resilience to drive the change they want to see. Specialist community organisations are known, trusted and relied upon to meet the needs of their community. What they lack is the resources and access to funding they need. It is The London Community Foundation’s role, along with our partners, to support them in this.
In 2023/24, we launched the **Greenwich Peninsula Community Fund** , a hyper local fund in partnership with lead developer **Knight Dragon** . £100,000 in funding was distributed to 7 organisations. This represents the first stage of a fifteen-year commitment to support community organisations operating in the Peninsula.
A second round of the **Greener Futures Fund** , in partnership with property group Grosvenor, awarded £200,000 to 13 organisations in Westminster inspiring the community to take
local climate action. The **Deptford Challenge Trust Fund** , returning after a two-year break, supports community organisations that improve the quality of life for people who live and work in a defined area of Lewisham. We have worked with partners **British Land** to help them engage their tenants in community funds supporting specialist community organisations around their three campuses.
Elsewhere, lasting local impact is being achieved through long term partnerships with **Wimbledon Foundation Community Fund,** holding its 15th round of funding, and **Elephant and Castle Community Fund,** on its 11th round this year. Similarly, a variety of different funds run in partnership with **Lambeth Council** have strengthened the community provision in the borough.
The importance of investment in trusted, community-led organisations cannot be overstated. Even in cross-London programmes, it is these local specialist organisations that can bring about change locally - if they are given the proper resources and support to do so.
17% of total funding awarded focused on local and hyper-local funding programmes
209 grants awarded as part of local and hyper-local funding programmes
Photo: Kate Olfans / Unsplash
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**Annual report and financial statements**
**The London Community Foundation**
## **June**
## **A year at The London Community Foundation**
The **MOPAC Violence Against Women and Girls Grassroots Fund** was celebrated in style with an event attended by representatives of the 41 specialist VAWG organisations as well as Deputy Mayor for Policing and Crime, **Sophie Linden**
**Greenwich Peninsula Community Fund,** in partnership with lead developers **Knight Dragon** , was launched. With an initial round of £100,000 funding. The fund is the first part of £1.9m commitment over fifteen years to the development
## **April**
**MOPAC** committed £1m of emergency funding for the **Violence Against Women and Girls Cost of Living Fund**
## **July**
The **Lambeth Wellbeing Fund** , in partnership with **Gowling WLG Community Fund** awarded **Lambeth Council** , awarded over £180,000 to 29 £10,000 to two Southwark-based community organisations across the borough organisations including TheChoirWithNoName, who ~~BO~~ were featured on this year’s ITV Pride of Britain Awards Our team of 25 runners raised £20,000 taking part in the **London Marathon Deutsche Bank Opportunity Fund** awards **August** over £159,000 to community projects tackling homelessness i-—A LSa igs |a Fl “3 a2 _ 7 4e rs) eh ¥ a c | ey < eyes aren “WY TheLondon | \ " ws . } ~— action 7 ¥ a % hy **May** = Us 4 ce > | b i | v .
**Barclays** hosted a **Skill Up Step Up** event to celebrate the first 15 months of the programme, which helps train young people and connect them with future jobs and apprenticeships
**Mayor of London** , **Sadiq Khan** , renewed his commitment to tackling violence against women and girls, with a further investment of £3m to form the **MOPAC Violence Against Women and Girls Grassroots Fund 2023-2025** . The announcement was made during a visit to one of the groups from the fund’s previous cohort The **Home Office VAWG Specialist Support Services Fund** , a two year programme aiming to ensure continuity and quality of frontline VAWG services, awarded £1.2m in grants with an extra £57,000 match funding from MOPAC for organisational development ~~Oo~~
The **Lambeth Health Inequality Community Fund** was launched with £160,000 committed to reduce health inequalities by engaging residents in conversations about improving health and wellbeing
In partnership with **Lendlease** and **Southwark Council** , the **Elephant and Castle Community Fund** returned for an 11th round of funding awarding £75,000 in grants to projects in the area
The **Grosvenor Greener Futures Fund** awarded £200,000 to support community projects in Westminster, inspiring the community to take local climate action
The **Stanhope Foundation** awarded nearly £450,000 in grants to six organisations providing employability programmes
## **September:**
The third round of our **Youth Futures Fund** launched, focusing on tackling misogyny and violence and promoting healthy relationships
Six organisations supporting children and young people in Lambeth received investment thanks to £98,000 of grants awarded by **Lambeth Youth Opportunities Fund**
## **October**
We launched the **Women’s Fund for London** , raising £170,000 from a pool of individual and corporate donors. The fund will support organisations who promote financial resilience for women and their families across London = ioe | ee community / Foundation ies mi Helping you || SS | Willa difference to ty ere it mq |RW \ MOst, Hers **JPMorgan Chase** hosted a round table event vm \ \4 |) =
**JPMorgan Chase** hosted a round table event for their Pathways to Economic Opportunities programme (investing in Black and Minoritised Ethnic community Led By and For organisations who provide specialist employment, enterprise and financial health services) to explore different models and approaches to organisational development for community-based organisations
## **November**
**Deptford Challenge Trust** launches £250,000 of funding, after a two-year break, for community organisations in Deptford
## **December**
**Hackney Foodbank Community Fund** was launched to tackle food insecurity in the borough, with £400,000 distributed to 24 organisations
£242,000 was awarded to 16 Lambeth-based organisations via the **Lambeth Community Fund** , in partnership with **Lambeth Council**
## **January**
The **Cockayne Foundation** celebrated the 10th anniversary of Grants for the Arts with £2m in funding, including ten anniversary grants of £100,000 each
## **February**
Grants totalling £50,000 from **Regent’s Place Community Fund** took the total awarded by **British Land** to £180,000 across their three campuses. In August **Broadgate Community Fund** awarded £100,000 and in September **Paddington Central Community Fund** awarded £30,000 to local community groups a :
## **March**
Long term partners, **Wimbledon Foundation** , celebrated their 10th anniversary. Throughout 2023/24 they have awarded £750,000 to community organisations in Merton and Wandsworth. There have been three rounds of the **Wimbledon Foundation Community Fund** and **Community Fund +** as well as the **Wimbledon Foundation Homelessness Fund 17**
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**Annual report and financial statements**
**The London Community Foundation**
**Trustees’ report**
## **Annual report and financial statements For the year ending March 2024**
## **Report of the Trustees**
accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
The Trustees present their annual statutory report together with the financial statements of The London Community Foundation (LCF) for the year ending 31 March 2024. 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
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**
**Charity No. 1091263 Company No. 4383269 londoncf.org.uk**
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**
**londoncf.org.uk info@londoncf.org.uk +44 (0)20 7582 5117 X (formerly Twitter): @london_cf Instagram @london_cf**
Registered charity number **1091263** Company limited by guarantee number **4383269**
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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** (to December 2023)
## **Principal officers / Senior Management Team:**
The serving principal officers on the date of approval of this report were:
**Kate Markey** (to April 2024) Chief Executive Officer
**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
## **Paul Buchanan**
## **John Hume**
(Chair of Development, Impact and Influence Committee)
## **Natalie Creary**
## **Veesh Sharma**
(Chair of Finance, Risk and Resources Committee)
**Urmi Dutta-Roy**
## **Owen Jenkins**
**Satnam Sagoo**
(from April 2024): Interim Chief Executive Officer
## **Maureen Sebanakitta**
Chief Operating Officer
## **Kate Stewart**
(to August 2024) Director of Grants and Impact
**Laura Perkins**
(to August 2024) Director of Development and Communications
## **Bankers:**
## **NatWest**
504 Brixton Road London SW9 8EW
**CCLA Investment Management Limited – Cash Deposit Accounts**
Senator House 85 Queen Victoria Street London EC4V 4ET
## **Harbi Jama**
**Fiona Bickley**
(from June 2024) Acting Director of Development and Communications
## **Auditor:**
**MHA**
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**
## **Trustees’ report**
## **Objectives and activities**
**Our vision** is of 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.
London is the greatest city in the world. But it is a polarised city, of extreme inequality, of haves and have-nots.
**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.**
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 become stronger.
Our objectives, as defined in the Memorandum and Articles of Association are:
The promotion of any charitable purposes for the benefit of the community in the ‘Area of Benefit’ and the advancement of education, the protection of good health, both mental and physical, the relief of poverty and sickness and the provision, in the interests of social welfare, of:
## **1. Facilities for recreation or other**
## **leisure time occupation with the object of improving the conditions of life of the**
**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.
**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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**Annual report and financial statements**
**The London Community Foundation**
**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 2024, The London Community Foundation held £23,955k (2023: £22,576k) in endowment funds, this variance is due to fluctuations in market value during the year.
## **Endowment funds held have been raised primarily through:**
· Individuals and companies that want to create an enduring legacy in a particular geography or cause in the Capital. We can work with donors to consider their philanthropic ambitions and how to achieve them, now and in the future, as a flexible alternative to establishing their own charitable foundation or trust.
· Charitable trusts can be transferred to LCF (as with other community foundations), with the support of initiatives like the Revitalising Trusts Initiative by the Charity Commission. We can honour the original objectives and/or work with trust representatives to revive them for modern-day needs. Trusts may be transferred if they have become dormant or ineffective, or if Trustees feel that LCF will help to increase the impact of their charitable assets.
## **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:
- Charitable Incorporated Organisation (CIO)
- Company Limited by Guarantee (CLG) - may also be registered as a Charity or a Community Interest Company Limited by Guarantee (CICLG)
- Trust
- Unincorporated Association
- Community Benefit Societies (CBS). Ideally, the CBS will also be registered as charitable with HMRC, however this is not essential.
## **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.
## **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.
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:
- Visits to the partners and beneficiaries
- · Formal evaluation processes such as impact assessment by LCF or a third party
If we are not satisfied that the grant is being managed according to the agreement, we discontinue the grant.
The full policy is on our website and is accessible via this link: Community Foundation | Eligibility criteria (londoncf.org.uk).
## **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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**Annual report and financial statements**
**Trustees’ report**
## **The London Community Foundation**
## **Structure**
During the year, LCF’s governance structure underwent a review, the outcome of which was a consolidation of the old Programmes & Impact, Audit, Risk & Investment and People SubCommittees into two Sub-Committees:
- Finance, Risk and Resources
- · Development, Impact & Influence
Each Sub-Committee consists of no fewer than three and no more than six Trustees, appointed by the Board. At least one Trustee of the Sub-Committee is appointed Chair.
All Trustees are expected to sit on at least one SubCommittee and are welcome to sit on more than one Sub-Committee.
Trustees can volunteer to serve on a Sub-Committee and can also be nominated. Trustees are voted onto a Sub-Committee by a simple majority vote of the Board.
Sub-Committee terms are 3 years (subject to remaining a Trustee), at which time Trustees’ membership of that Sub-Committee shall be reviewed. This also applies to the Chair of the SubCommittee.
After 3 years, Trustees may, subject to the majority agreement of the Board, serve a further period on a Sub-Committee or join another Sub-Committee. At the request of the Board, a Trustee may, during a term on the Sub-Committee, be asked to move to another Sub-Committee.
Unless otherwise determined by the Board, quorum for a Sub-Committee exists when at least three Trustee members are present.
Sub-Committees meet at least three times per year and meetings may be face-to-face or virtual. All Board Meetings are held in person.
Additionally, a Sub-Committee can recommend to the Board that up to 2 additional co-opted members be recruited, who are external and independent of LCF, with requisite specialist skills and expertise. Co-opted members can also be appointed by the Board, with a term agreed by the Trustees. If approved, co-opted members act in an advisory and observer capacity without voting rights.
## **General duties across all Sub-Committees:**
· Provide appropriate scrutiny and support to the Senior Management Team, in particular the relevant Executive lead(s)
- Ensure strong and proactive communication with other Sub-Committees and the wider Board on a regular basis
- Support development of, approve and deliver a Sub-Committee Workplan in collaboration with the Executive(s) lead, reporting progress to the Board
- Lead on specific areas of risk identified in LCF’s Risk Register and Control Framework related to each Sub-Committees Terms of Reference
- Ensure that the Board receives sufficient assurance – in their area of competence - that LCF performs its activities in a suitable and appropriate manner to achieve its long-term objectives, within its appetite for risk
- Focus during each financial year on the Board’s Areas of Strategic Focus and Deep Dives with the support of the Executive Lead
- Ensure that equality, equity, diversity, and inclusion is front and central across LCF’s work and governance
## **Structure, governance and management (continued)**
## **Development, Impact and Influence Sub-Committee**
The Development, Impact and Influence SubCommittee met four times during the year.
The purpose of this Sub-Committee is to:
· Provide strategic oversight and support to the Development and Communications function with specific reference to fundraising, donor engagement, external profile, and influence
- Provide strategic oversight of the grant making function with specific reference to grant making practices, learning, insights and impact
- Maintain strategic assurance that LCF’s work is delivering impact against its mission
- Ensure that LCF’s grant making framework includes sound grant making principles, and that policies and processes are in place, including adequate resources
- To delegate grant making decisions to the Executive
- Provide assurance to the Board that LCF is achieving its charitable purpose and that its activities of grant making, fundraising, profile and influencing are conducted in line with charity law and regulation, the accepted good practice of the sector and LCF’s policy framework and risk appetite
- To maintain all LCF Policies that fall within the remit of the Committee
## **Finance, Resources and Risk Sub-Committee**
The Finance, Resources and Risk Sub-Committee met four times during the year. The purpose of the Sub-Committee is to:
- Provide assurance to the Board of the long-term financial sustainability of LCF, by scrutinising the Charity’s finances. This includes financial management, recommendations on investments, borrowing, capital expenditure and assessment and monitoring of the financial plans
- Provide assurance to the Board that LCF’s financial and other internal control systems are compliant with statutory and other regulatory requirements
- · Monitor the strategic risks and LCF’s risk management policy
- Ensure LCF has appropriate arrangements in place for audit (external, and internal if necessary), investment management and banking
- Ensure LCF has a culture, values and behaviours in line with those agreed by the Board, and that LCF is an inclusive, progressive, professional and rewarding workplace
- Lead the process for Board Appointments, making recommendations to the Board
- Oversee LCF’s accreditation and quality assurance
- on behalf of the Board – to membership of UKCF
## **Senior Management Team**
The day-to-day operation of LCF is the responsibility of the **Senior Management Team** (SMT) and the **Middle Management Team** (MMT). The average number of team members employed during the year using a full-time equivalent basis was 19 (2023:18).
The SMT reports formally to the Board of Trustees every quarter on progress against strategic objectives, financial and impact performance as well as the annual work plans of the Board SubCommittees. It also presents proposals on forward strategy. 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.
LCF is a member of UK Community Foundations
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**Annual report and financial statements**
**The London Community Foundation**
**Trustees’ report**
## **Structure, governance and management (continued)**
(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.
## **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 Finance, Resources and Risk Sub-Committee of the Board is responsible for nominations and makes recommendations to the full Board of Trustees on appointments.
On 31 March 2024 LCF had 8 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. Trustees meet quarterly and, between these meetings, business is conducted through the two SubCommittees mentioned above: Finance, Risk and Resources and Development, Impact and Influence.
## **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 2024, 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
## **Achievements and performance**
In 2023/24, The London Community Foundation continued to make significant strides in supporting London’s communities. We awarded £11.5 million in funding (780 grants) to community organisations across London, addressing a wide range of social issues.
The rest of our achievements are summarised in the table below.
**----- Start of picture text -----**
Strategic objective In detail Achievement
Foster a culture of · Build on team engagement and · Implemented a robust learning and development
belonging & inclusion touchpoints throughout the year programme for all staff, alternating monthly EDI
across the LCF team & · Progress Equity, Diversity and Inclusion forums between learning and action sessions
Board (EDI)Strategic priorities for the year · Delivered unconscious bias training for all staff
· Maximise opportunities for team and through Action for Race Equality (A.R.E)
Trustee engagement · Hosted diverse speakers including Rachel Grocott
· Undertake an annual staff survey (CEO of Bloody Good Period) and Pauline Campbell
(lawyer, author and racial equality activist)
· Team members shared personal experiences, such as
living with ADHD, to promote understanding
and inclusion
·
The staff survey was postponed to 2024/25
Grow our knowledge, · LCF Impact Strategy Development · Increased team visits to funded organisations and
reach & connection with · Maximise opportunities for visits and participation in wider sector networks and events
London’s communities learning sessions · Work on the impact strategy framework and
·
EDI – review & rollout of ‘led by’ pilot applicants’ survey was postponed to 2024/25 due to
across all programmes capacity constraints and database upgrade delays
· Increase collaboration across teams on
programme design early in development
process
· Gather feedback from applicants
(via survey) on grant making process and
EDI considerations such as Accessibility,
inclusivity, ‘led by’ organisations
Grow our donor · Deliver four events · Delivered four engagement events for key programs:
portfolio · Grow donor engagement in pooled funds Skill Up Step-Up, Violence Against Women and Girls,
and invite-only activities, offering new Women’s Fund for London, and Youth Futures Fund
and different ways for local philanthropy · Exceeded our total income target by raising
to reach London’s communities £10 million, surpassing the £9.3 million goal
· Achieve income target of £9.3m · Increased LinkedIn followers to 2,875, grew our
· Increase our LinkedIn followers to 2,500, mailing list to 622, and expanded Twitter followers
mailing list to 700, and Twitter followers to 6,579
to 7,000
·
Influence stakeholders through
communications to encourage more
giving to London through LCF
Make best use of our · Review & streamline LCF’s management · Continued work on upgrading our Salesforce
time, data & digital information database in collaboration with the UKCF Digital Team,
solutions, ensuring · Deliver project goals of the Salesforce with completion expected in October 2024
compliance database upgrade project · Passed our Cyber Essentials assessment in 2024
**----- End of picture text -----**
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## **Achievements and performance (continued)**
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Strategic objective|In detail|Achievement|
|Build long-term|·|Grow donor portfolio|·|We secured two new individual/family donors who|
|financial resilience|·|Simplify the way our donors give|are keen to give back to London and three new|
|corporate donors, which grows our donor portfolio|
|·|We raised £254k for our new Women’s Fund|
|for London, bringing donors together to support|
|community organisations led by women and £200k|
|for our Youth Futures Fund|
**----- End of picture text -----**
· We secured six new invitation only fund donors and we finalised and closed 12 funds, to help simplify the way donors give
30
> 31 :
**Annual report and financial statements**
## **The London Community Foundation**
## **Trustees’ report**
## **Financial review**
**Our total income in 2024 was £11.6 million (2023: £13 million), a decrease of 11% compared to the previous year. Our total expenditure was £13.1 million (2023: £13.6 million), a decrease of 3% compared to the previous year. This resulted in an overall surplus for the year of £0.6 million (2023: £1.4 million (deficit), with a specific deficit of £105k on the unrestricted funds (2023: 41k surplus).**
## **Income**
The total income for the year was £11.6 million (2023: £13 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. 62% of our income came from donations, followed by 30% from charitable activities and 8% from investment income. The income in 2023 was boosted by the Together for London Appeal.
The breakdown is as follows:
- Restricted voluntary income received was £10 million (2023: £11 million), a decrease of 12%
- Unrestricted voluntary income was £0.5 million (2023: £0.8 million), a decrease of 33%
- Investment income was £0.9 million (2023: £0.8 million), an increase of 18%
- Income from charitable activities was £205k (2023: £170k), an increase of 18%
**----- Start of picture text -----**
Income £000
Endownment
(capital)
income
Unrestricted
income
Restricted
(grant making)
income
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
2023 2024
**----- End of picture text -----**
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## **Financial Review (continued)**
payable in-year totalled £11.5 million (2023: £12 million), a decrease of 5%.
## **Expenditure**
LCF’s main core cost excluding grant payments is our team, which represented 73% of the Charity’s unrestricted expenditure (2023: 66%). 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, were £1.1 million (2023: £1 million) an increase of 5%. The charity maintained an average team size of 19 full-time equivalent staff (2023: 19).
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
**----- 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
2023 2024
**----- End of picture text -----**
## **Financial Review (continued)**
## **Cash position**
LCF’s cash balances (excluding any cash held by the investment managers) were £8.5 million (2023: £10.2 million), a decrease of 16%. Cash held by LCF mainly represents restricted funds held for the purposes of grant-making and, of this balance, £7.5 million represents restricted and endowment funds (2023: £9.5 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 £830k net general reserves (2023: £930k), £1 million is a cash balance representing unrestricted funds (2023: 700k) and net liabilities of £225k (2023: £100k). The funds 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**
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.
## **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 23/24, LCF’s funding sources included:
**----- Start of picture text -----**
Funding Source 2024 2023 2022
Corporates 20% 20% 32%
Local public authorities 52% 31% 32%
Trusts and foundations 25% 41% 27%
Individuals 2% 5% 8%
National public authorities – 5% –
**----- End of picture text -----**
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**The London Community Foundation**
## **Financial Review (continued)**
## **Going concern**
LCF has a risk management policy designed to identify and assess key strategic and operational risks facing the Charity; our long-term financial stability is one such key risk. Where we determine risks to be above appetite, we take steps to mitigate them.
The charity experienced a planned deficit of £105k on unrestricted funds during the 2023/24 financial year. This strategic decision was made to invest in key organisational priorities and capacity building initiatives. Despite this deficit, and a challenging external economic outlook, the charity’s overall financial position remains stable. The general reserves of £0.8 million at year-end remain within our target range of 5-9 months of expenditure, ensuring the charity’s continued ability to meet its financial obligations and pursue its charitable objectives.
To address this deficit and strengthen our financial position, the Trustees have implemented the following measures:
**c. Cost management and efficiency:** The Trustees and Senior Management Team are continuously reviewing our cost structures and grant-making processes to balance efficiency with beneficiary needs.
**d. Reserves policy review:** We have conducted a formal review of our reserves policy, aligning it with our current financial landscape; and intended to strike a balance between managing unforeseen financial challenges while continuing to support our strategic objectives.
- **e. Investment in strategic initiatives:** We remain committed to investing in long-term sustainability, including the ongoing upgrade of our Salesforce database to improve donor engagement and operational efficiency.
These actions are part of a broader plan to ensure The London Community Foundation’s resilience and long-term success. The Trustees are confident that this approach will address the current deficit while positioning the charity for future growth and impact.
- **a. Diversifying income streams:** We continue to focus on diversifying our income streams - expanding our donor base, securing multi-year contracts, and exploring new partnerships with corporates and foundations. The introduction of new thematic funds, such as the Women’s Fund for London and the Youth Futures Fund, is a direct response to this strategy.
- **b. Strengthening fundraising efforts:** We have set ambitious targets for increasing our unrestricted income, by enhancing engagement with existing donors, and targeting new supporters through events, campaigns, and individual giving initiatives.
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**The London Community Foundation**
**Trustees’ report**
## **Reserves**
The total value of funds held at 31 March 2024 was £32 million (2023: £32 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 2024 stood at £24 million (2023: £23 million). The increase of £1 million is due to investment market gains 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, as of 31 March 2024 were £7.5 million (2023: £8.1 million). The decrease is due to the timing of grant programmes.
**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 2024 were £0.8 million (2023: £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
· A permanent fall in income, allowing time to adjust our cost base or business model
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 reserves policy takes place every three years. In the intervening years the Finance, Risk and Resources 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.
## **Reserves policy (continued)**
The policy was reviewed during 2022/23. 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 £0.8 million are therefore at the mid of the target range, namely 7 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 even-handedness 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.
The income from both the Beaufoy and Pedlar’s Acre Trusts is restricted to supporting local communities in Lambeth.
## **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 2024 the percentage used was 3.5% (2023: 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% (2023: 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 even-handed in the treatment of present and future beneficiaries of the fund, the amount may be varied in future decisions.
For permanent endowments where no total return approach is agreed, only the income arising from the fund may be spent.
The unapplied total return on the Pedlar’s Acre endowment fund at the end of the year is £1.2 million.
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**Trustees’ report**
## **Investment policy and management**
LCF has set a clear investment policy which is driven by the Charity’s purposes and longer-term financial sustainability goals.
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 fund’s target benchmark is to achieve, over the long term, a total return before the deduction of any fees, costs and expenses of UK consumer prices index (CPI) inflation plus 5% per annum.
## **Ethical considerations**
The Charity’s endowment funds are invested 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:
- producing landmines, cluster bombs or chemical/biological weapons
- producing tobacco products
- having significant (>10%) turnover relating to online gambling or the production of pornography
Companies that have not responded to persistent engagement on compliance with:
- the ILO Core Labour Standards
- the UN Guiding Principles on Business and Human Rights
- norms relating to biodiversity, toxic waste
- climate change disclosure are also restricted from investment.
These ethical considerations are an integral part of CCLA’s approach and align with our values of promoting physical health and well-being, social equity and justice.
## **Risk management**
The Trustees regularly assess the risks associated with our investment portfolio, including market volatility and economic uncertainty. By working closely with CCLA, we ensure that our investment strategy remains aligned with our financial objectives and risk tolerance. CCLA’s diversified approach helps mitigate risks, balancing the need for steady income with the preservation of capital.
## **Investment performance**
The total value of funds invested, including cash held by investment managers for re-investment, amounted to £24 million (2023: £24 million). 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 in the table on page 41.
**----- Start of picture text -----**
Annualised
returns % as
at 31 March
2024 1 year 3 years 5 years 10 years
COIF Charities 12.16 7.45 9.04 9.38
Investment Fund
(net)
ARC Steady 9.38 3.72 4.97 5.39
Growth Charity
Index (peer
group, net)
Comparator 16.73 7.81 7.57 7.73
benchmark
CPI plus 8.18 11.73 9.45 7.92
5% (target
benchmark)
**----- End of picture text -----**
LCF’s Finance, Risk and Resources 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 them to the Sub-Committee at least once a year whilst also responding to specific requests during the year. This ensures that our investments are contributing effectively to the Charity’s financial sustainability while adhering to our risk profile.
## **Policy review**
The Trustees review the investment policy annually to ensure it remains appropriate for the charity’s current and future needs. This review process allows us to adapt our strategy as necessary, ensuring that our investments continue to support the long-term sustainability of the Charity.
## **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.
Before accepting any risk, we consider the likelihood of its occurrence. We also evaluate the potential impact on our activities if the risk were to materialise. 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**
## **Principal risks and uncertainties (continued)**
The principal risks faced by the Charity and the mitigations are as follows:
**----- Start of picture text -----**
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 Finance, Risk & Resources Sub-Committee that appropriate
strategic risk management procedures are in place
· Review approach to evaluation and mitigation of major risks annually at Full Board
Finance, Risk & Resources · Monitor the effectiveness of LCF’s risk management procedures via the ongoing review of the
& Development, Impact & system of internal control. This includes receiving risk reports from the Development, Impact
Influence Sub Committees & Influence Sub-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 operations
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 SMT
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 risk management. There should be formal channels of
and volunteers 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
**----- End of picture text -----**
## **Monitoring and review of the policy**
We update the organisational risk 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.
**Risk Mitigation** Financial stability · We monitor our actual and forecasts against the financial plans continuously Long-term financial resilience for LCF so that we can implement appropriate measures in good time remains a key strategic risk for the Charity. · The SMT reviews monthly reporting on income, expenditure and reserves External shocks or trends impacting our positions · income, cashflow or reserves could put our On a quarterly basis, we provide financial reports to the Finance, Risk and future financial stability at risk. Resources Committee · We periodically review the reserves policy to ensure that it remains aligned with the challenges facing the Charity · Efforts to diversify income are being intensified to reduce reliance on key donors and funding partners · Effective cost management ensure that spending is aligned with available resources and to avoid any unnecessary strain on the Charity’s finances 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 eligible 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 · We obtained our Cyber Essentials certification of cybercrime. · 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 · We have reviewed and rolled out an inclusive performance evaluation process workplace would be detrimental to the for all staff. We aim for all staff to have clear personal objectives, which help wellbeing of our staff and volunteers. contribute to our vision and mission Failure to attract, engage and retain the · We recently updated our recruitment policy and procedures with an EDI lens best staff, impacts our ability to achieve our to ensure we can attract individuals from marginalised or under-represented charitable objectives. groups within the LCF staff team · In 2024/25 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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**Annual report and financial statements**
**The London Community Foundation**
## **Trustees’ report**
## **People and pay**
## **Remuneration of key management personnel**
## **Remuneration policies**
LCF had on average of 19 full-time equivalent staff during 2024 (2023: 18).
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.
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 Finance, Risk and Resources 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.
SMT was as follows during the year:
CEO, Director of Grants & Impact, Chief Operating Officer and Director of Development & Communications. The total benefits of the employed SMT, including employer pension contributions, was £358k (2023: £321k).
## **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.
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 2024 (2023: 0).
## **Pay ratio**
The ratio of our highest salary rate to our median salary during 2024 was 2.92:1 (2023: 2.29:1).
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.
## **Our EDI Statement**
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:
· Listening to the experiences of communities and seeking to understand the barriers they face.] · Recognising that, as a philanthropic funder, we hold a certain type of power and influence and taking responsibility to use them positively.]
· Making funding more equitable and inclusive through our practices, and by influencing the way donors give to London.]
· Building a team culture and environment that allows everybody to thrive, reflects London and strengthens our practices and impact.]
· Continuously learning, reflecting and acting on what works.]
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**
**The London Community Foundation**
## **Reporting on our people**
## **Our Diversity Survey**
In this fifth 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. Though not a statutory requirement, the Charity is committed to this transparency as a key part of its EDI work. We are also 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.
The following graphs are taken from an anonymous diversity survey of Trustees and team members at LCF as at 31 March 2024. The responses to the survey are not mandatory, are self-reported and each question includes an option of ‘Prefer not to say’. This means people do 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.
Figure 2: How long have you worked for/ served as a Trustee at The London Community Foundation?
Figure 1: Ethnicity
**----- Start of picture text -----**
Asian or Asian British 8%
Black or Black British 28%
Mixed/Dual Heritage 8%
Other Ethnic Background 4%
White or White British 52%
**----- End of picture text -----**
**----- Start of picture text -----**
6+ years 12%
Between 1 and 2 years2 8%
Between 2 and 4 years 24%
Between 4 and 6 years 8%
Less than 1 year 28%
**----- End of picture text -----**
Figure 3:Which is the highest level of education you hold?
**----- Start of picture text -----**
HNC/HND/NVQ 4%
Masters Degree 36%
Professional qualification (e.g. Accountancy, CIPS, CIPD) 20%
Undergraduate Degree 40%
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Figure 5: How do you define your gender identity?
**----- Start of picture text -----**
Man 40%
Woman 60%
**----- End of picture text -----**
Figure 4: Did you receive free school meals at any point during your school years?
**----- Start of picture text -----**
No 72%
Prefer not to say 4%
Yes 24%
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Figure 6: which of the following best describes your sexual orientation?
**----- Start of picture text -----**
Gay 16%
Heterosexual 84%
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**Annual report and financial statements The London Community Foundation** ~~—~~
**Trustees’ report** — Figure 8: Did any of your parent(s) or Figure 7: Which of the following best guardian(s) complete a university degree describes your religion and/or belief? course or equivalent (e.g. BA, BSc or higher)?
## **How are we doing?**
Over the past few 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. Young trustees have significantly increased 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 past few years reported, disabled people remain significantly under-represented, and we will seek to address this over the coming years as Trustee terms change.
We have made progress in diversifying our team, which is encouraging and enriches our level of experience and perspectives. 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.
Agnostic 24% Hindu 8% No 40% Atheist 16% Muslim 4% Prefer not to say 4% Christian 24% Non-religious 24% Yes 56% Figure 10: Do you consider Figure 9: What is your age? yourself disabled? ~~~~~ 30-34 16% 45-49 20% 60-64 4% No 92% 35-39 16% 50-54 20% Prefer not to say 8% 40-44 16% 55-59 8%
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**The London Community Foundation**
**Trustees’ report**
## **Future plans**
Trustees have agreed the following objectives for 24/25:
**----- Start of picture text -----**
|||||
|---|---|---|---|
|Strategic Objective|In detail|
|Foster a culture of belonging|·|Roll out People Survey and develop an action plan|
|& inclusion across the LCF|·|Build on team engagement and touchpoints throughout the year|
|1|team & Board|·|Progress EDI strategic priorities for the year|
|·|Implement the Pay Progression policy in accordance with LCF’s pay scale|
|Grow our knowledge, reach|·|Develop, roll out and embed LCF’s impact strategy|
|& connection with London’s|·|Improve community and stakeholder relationship development|
|2|communities|·|Improve equity, diversity and inclusion in grant making|
|·|Enhance service delivery with active feedback|
|Diversify and grow our|·|Grow the income pipeline to achieve targets and improve long term income|
|donor portfolio and products|security|
|·|
|3|New planning structure between Development & Grants and Impact team for|
|more effective capacity planning|
|Make best use of our time,|·|New Salesforce Database implementation|
|data & digital solutions,|·|Upgrade financial software|
|4|ensuring compliance|·|New grant management tools|
|Build long term financial|·|Review our cost and pricing model|
|resilience|·|Review the endowment funds with a view to increasing the level of grant|
|5|making|
|·|New approach to pipeline management|
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**Annual report and financial statements**
**The London Community Foundation**
**Trustees’ report**
## **Our approach to fundraising**
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.
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).
There were no complaints regarding our fundraising practices during the year ended 31 March 2024.
## **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).
The Trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
## **Each of the Trustees confirms that:**
- So far as the Trustee is aware, there is no relevant audit information of which the Charity’s auditor is unaware
## **In preparing these financial statements, the Trustees are required to:**
- The Trustee has taken all the steps that ought to have been taken as a Trustee to be aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities, preparing the accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102)
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.
- Make judgements and estimates that are reasonable and prudent
- State whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
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:
- Prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Charity will continue in operation
Russell Prior 2g. Chair 23 September 2024
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**The London Community Foundation**
## **Financial Auditor’s statementsreport**
## **Independent auditor’s report to the members of The London Community Foundation Year ended 31 March 2024**
## **Basis for opinion**
## **Opinion**
We have audited the financial statements of The London Community Foundation (the ‘charitable company’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 Financial Reporting Council (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:
- Give a true and fair view of the state of the charitable company’s affairs as at 31 March 2024, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended
## **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.
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006.
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## **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:
· The information given in the Trustees’ report (incorporating the Directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements
- The Trustees’ report has been prepared in accordance with applicable legal requirements
## **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 Trustees’ 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:
- Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us
- The financial statements are not in agreement with the accounting records and returns
- Certain disclosures of Trustees’ remuneration specified by law are not made
- We have not received all the information and explanations we require for our audit
## **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:
- Obtaining an understanding of the legal and regulatory frameworks that the entity operates in, focusing on those laws and regulations that had a direct effect on the financial statements
- Enquiry of management and those charged with governance to identify any instances of known or suspected instances of fraud
- Enquiry of management and those charged with governance around actual and potential litigation and claims
- Enquiry of management and those charged with governance about any instances of noncompliance with laws and regulations
- Reviewing the control systems in place and testing the effectiveness of the controls
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness
**The London Community Foundation**
**The London Community Foundation**
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Annual report and
financial statements
**----- End of picture text -----**
## **Auditor’s report**
- Evaluating the business rationale of significant transactions outside the normal course of business
- Reviewing accounting estimates for bias
- Reviewing minutes of meetings of those charged with governance
- Reviewing financial statement disclosures and testing supporting documentation to assess compliance with applicable laws and regulations
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.
## AL
Stuart McKay BSc FCA DChA (Senior Statutory Auditor)
For and on behalf of MHA, Statutory Auditor London, United Kingdom
## Date: 07/10/2024
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
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**The London Community Foundation**
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**Annual report and financial statements**
## **Financial statements**
## **Statement of financial activities for the year to 31 March 2024**
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total Total
funds funds funds 2024 2023
Notes £000 £000 £000 £000 £000
Income and endowments
from:
Donations and legacies 2a 542 9,818 22 10,382 11,966
Charitable activities 2b 205 – - 205 173
Investments 2c 467 453 28 948 803
Other trading activities 2d 20 – – 20 58
Total income 1,234 10,271 50 11,555 13,000
Expenditure on:
Raising funds 3a 522 1 – 523 519
Grants programme 3b 917 11,578 – 12,495 12,981
Community development 3c 32 50 – 82 50
Total expenditure 1,471 11,629 – 13,100 13,550
Net income / (expenditure) (237) (1,358) 50 (1,545) (550)
before investment gains
and losses
Net gains / (losses) 9 26 58 2,081 2,165 (944)
on investments
Net income / (expenditure) (211) (1,300) 2,131 620 (1,494)
Transfers in / (out) between 14,15 106 646 (752) – –
funds
Net movement in funds (105) (654) 1,379 620 (1,494)
Reconciliation of funds
Total funds brought forward at 937 8,123 22,576 31,636 33,130
1 April
Total funds carried forward 13a 832 7,469 23,955 32,256 31,636
at 31 March
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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.
**The London Community Foundation**
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**Financial statements**
## **Balance sheet**
## **as at 31 March 2024**
||Notes|2024
£000|2023
£000|
|---|---|---|---|
|Fixed assets
Tangible assets
Investments|8
9|53
24,211|8
23,738|
|Current assets
Debtors
Cash at bank and in hand|10|24,264
1,172
8,549|23,746
397
10,210|
|Creditors: amounts falling due within one year
11
Net current assets||9,721
(1,729)
7,992|10,607
(2,717))
7,890|
|Net assets||32,256|31,636|
|The funds of the charity:
Capital funds
Expendable endowment funds
14
Permanent endowment funds
14||18,323
5,632|17,385
5,191|
|Revenue funds
Restricted funds
Unrestricted funds
General funds|15|23,955
7,469
832|22,576
8,123
937|
|Total funds||32,256|31,636|
The financial statements were approved by the board on 23 September 2024
Russell Prior Chair
Veesh Sharma
Chair of Finance, Risk & Resources Committee
Company number: 4383269
Charity number: 1091263
## **Statement of Cashflows**
## **as at 31 March 2024**
||Notes|2024
£000|2023
£000|
|---|---|---|---|
|Cash flows (used in) operating activities:
Net cash used in operating activities
Cash flows from investing activities
Interest received
Investment income received
Purchase of property, plant and equipment
Purchase of investments
Proceeds from the disposal of investments|A|(4,276)
222
726
(47)
(18)
1,710|(1,260)
69
735
(6)
(8)
326|
|Net cashprovided byinvestingactivities||2,593|1,116|
|Cash flows from financing activities
Receipt of endowment||22|26|
|Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2023
B||22
(1,661)
10,210|26
(118)
10,328|
|Cash and cash equivalents at 31 March 2024|B|8,549|10,210|
|Notes to the statement of cash flows for the year ended 31 March 2024
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)
Adjustments for:
Net losses / (gains) on investments
Depreciation charge
Dividends and interest from investments
(Increase) in debtors
(Decrease) / Increase in creditors||598
(2,165)
2
(948)
(775)
(988)|(1,520)
944
4
(803)
(102)
217|
|Net cash used in operating activities|A|(4,276)|(1,260)|
|B. Analysis of cash and cash equivalents||||
|Cash at bank and in hand||8,549|10,210|
|||8,549|10,210|
## 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.
**The London Community Foundation**
**The London Community Foundation**
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## **Notes to Financial the financial statements statements**
## **Notes to the financial statements**
## **1 Accounting policies**
## **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 accounting policies adopted by the Board of Trustees are described below:
## **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 2024 with comparative information in respect to the year ended 31 March 2023.
## **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.
## **Corporate status**
The following specific policies are applied to particular categories of income:
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.
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.
## **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.
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.
**The London Community Foundation**
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**Annual report and financial statements**
## **Notes to the financial statements**
## **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. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings on the basis of headcount. Expenditure is classified under the following activity headings:
- **Cost of raising funds**
- All expenditure associated with raising funds for the Charity, including staff costs associated with fundraising and the fees payable to the investment manager.
## • **Charitable activities**
All costs incurred towards achieving LCF’s charitable objectives.
Grant expenditure is recognised in the year of award and when communicated to the recipient in line with the SORP.
Direct costs, including directly attributable salaries, are allocated on an actual basis to each expenditure heading.
Governance costs comprise the costs involving the public accountability of the charity compliance, statutory responsibility, and good practice. Support costs (including governance costs) are allocated to the expenditure activity headings based on employee time spent working in each area.
Support costs are costs incurred which are not directly attributable to our charitable activities, but which are vital to carry out the primary purposes of the Charity. These include costs such as finance, human resources, premises, communications, and information systems.
## **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.
## **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.
**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.
**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.
**The London Community Foundation**
**The London Community Foundation**
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**Annual report and financial statements**
## **Notes to the financial statements**
## **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:
- The estimate of useful economic life of tangible assets used to determine annual depreciation
- The basis on which support costs have been allocated across expenditure activity headings
- The re-allocation of bank interest on bank deposits held
- The assumption adopted in determining the value of any designation of unrestricted funds
- The rationale in determining an appropriate level of dilapidations provision associated with the leased premises
## **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%|
## **Investments**
Listed investments are stated at market value, valued at their bid price, at the balance sheet date.
It is the Charity’s policy to keep valuations of stock exchange listed investments up to date, such that when investments are sold there is no gain or loss arising relating to prior years. As a result the statement of financial activities does not distinguish between the valuation adjustments relating to sales and those relating to continued holdings, as they are together treated as changes in the value of the investment portfolio throughout the year.
## **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**
## **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.
Cash and cash equivalents include cash-in-hand, cash held in current accounts with UK banks and on deposit with CCLA.
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## **Notes to the financial statements**
## **2 Income**
## **2a Income from donations and legacies**
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||||||||||
|---|---|---|---|---|---|---|---|---|
|Unrestricted|Restricted|Endowment|Total|Unrestricted|Restricted|Endowment|Total|
|funds|funds|funds|2024|funds|funds|funds|2023|
|£000|£000|£000|£000|£000|£000|£000|£000|
|Trusts and|85|2,477|22|2,584|267|4,639|26|4,932|
|foundations|
|Corporations|179|1,973|–|2,152|200|2,239|–|2,439|
|Local public|195|5,152|–|5,347|210|3,372|–|3,582|
|authorities|
|Individuals|73|166|–|239|92|505|–|597|
|National public|10|50|–|60|43|373|–|416|
|authorities|
|Total income|542|9,818|22 10,382|812|11,128|26|11,966|
|from|
|donations and|
|legacies|
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## **2c Income from investments**
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||||||||||
|---|---|---|---|---|---|---|---|---|
|Unrestricted|Restricted|Endowment|Total|Unrestricted|Restricted|Endowment|Total|
|funds|funds|funds|2024|funds|funds|funds|2022|
|£000|£000|£000|£000|£000|£000|£000|£000|
|Interest receivable|18|204|–|222|69|–|–|69|
|Investment income|449|249|28|726|397|299|38|734|
|Total|467|453|28|948|466|299|38|
|income from|803|
|investments|
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## **2d Income from other trading activities**
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|||||
|---|---|---|---|
|Unrestricted|Total|Total|
|funds|2024|2023|
|£000|£000|£000|
|Rental income|20|20|58|
|Total income from other trading activities|20|20|58|
**----- End of picture text -----**
During the year LCF received government grants of £3,235k for the following projects:
- GLA 82072 MoJ DA SV 22-25 (£1,562k)
- Violence against Women & Girls (MOPAC) (£1,673k)
During 2022/23 LCF received government grants of £2,440k for the following projects:
- Safer Accommodation PIE (£795k)
- Violence against Women & Girls (MOPAC) (£1,645k)
There were no unfulfilled conditions as at 31 March 2024 (2023: none).
## **2b Income from charitable activities**
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||||||||
|---|---|---|---|---|---|---|
|Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
|funds|funds|2024|funds|funds|2023|
|£000|£000|£000|£000|£000|£000|
|Local public|205|–|205|91|82|173|
|authorities|
|Total income from|205|–|205|91|82|173|
|charitable activities|
|a:|§8§6—||
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**The London Community Foundation**
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**The London Community Foundation**
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**Annual report and financial statements**
## **Notes to the financial statements**
## **3 Expenditure**
## **3a Expenditure on raising funds**
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Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2024 funds funds 2023
Notes £000 £000 £000 £000 £000 £000
Investment management costs
Staff costs 6 9 – 9 7 – 7
Allocated support costs 4 5 – 5 6 – 6
Cost of raising donations and
legacies
Staff costs 6 305 – 305 256 – 256
Other direct costs 33 1 34 33 3 36
Allocated support costs 4 162 – 162 203 – 203
Cost of generating rental
income
Staff costs 6 5 – 5 5 – 5
Other direct costs – – – 3 – 3
Allocated support costs 4 3 – 3 3 – 3
Total expenditure 522 1 523 516 3 519
on raising funds
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## **3b Expenditure on charitable activities: grant programme**
## **3c Expenditure on charitable activities: community development**
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Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2024 funds funds 2023
Notes £000 £000 £000 £000 £000 £000
Other direct costs 32 50 82 1 49 50
Allocated support costs 4 – – – – – –
Total expenditure 32 50 82 1 49 50
on charitable
activities: community
development
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## **4 Analysis of support costs**
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Unrestricted Total Unrestricted Total
funds 2024 funds 2023
Notes £000 £000 £000 £000
Support staff costs 6 176 176 148 148
Professional fees 39 39 99 99
Premises costs 67 67 178 178
Office and other costs 15 15 16 16
Depreciation 3 3 4 4
IT costs 70 70 50 50
Governance costs 5 107 107 105 105
Total support costs 477 477 600 600
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Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2024 funds funds 2023
Notes £000 £000 £000 £000 £000 £000
Grants payable – 11,496 11,496 – 11,889 11,889
Staff costs 6 576 – 576 484 78 562
Other direct costs 34 82 116 55 87 142
Allocated support costs 4 307 – 307 388 – 388
Total expenditure 917 11,578 12,495 927 12,054 12,981
on charitable activities:
grant programme
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**The London Community Foundation**
**The London Community Foundation**
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**Annual report and financial statements**
## **Notes to the financial statements**
## **5 Governance costs**
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Total Total
2024 2023
Notes £000 £000
Staff costs 6 70 59
External auditors' remuneration 22 21
Legal and professional fees 15 25
Total governance costs 107 105
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## **6 Staff costs and remuneration of key management personnel**
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Total Total
2024 2023
£000 £000
Salaries and wages 880 803
Social security costs 93 83
Employer pension contributions 54 57
Temporary staff costs 61 94
Total staff costs 1,088 1,037
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The average monthly number of employees during the year was:
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2024 2023 2024 2023
Employees FTE FTE Number Number
Grant delivery and community development 11 12 12 13
Fundraising 5 4 5 4
Support 3 3 3 3
Total 19 19 20 20
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## **6 Staff costs and remuneration of key management personnel (continued)**
|
**personnel (continued)**|||
|---|---|---|
||2024|2023|
|The number of staff whose emoluments are greater than £60,000 are:
£60,001 – £70,000
£80,001 - £90,000
£90,001 – £100,000|Number
1
1
1|Number
1
–
1|
|Total|3|2|
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 £12,909 (2023: £15,291).
24 employees participated in the Charity’s stakeholder pension scheme (2023: 22), inclusive of all starters and leavers.
## **Key management personnel**
The Charity considers its key management personnel comprises the Trustees and Senior Management Team. Senior Management Team was made up as follows during both the current and previous 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 £357,811 (2023: £320,729)
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 2024 (2023:0).
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**The London Community Foundation**
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**Annual report and financial statements**
## **Notes to the financial statements**
## **7 Net expenditure / (income)**
This is stated after charging:
**----- Start of picture text -----**
2024 2023
Notes £000 £000
Staff costs 6 1,088 1,037
Auditor's remuneration (excluding recoverable VAT):
Statutory audit services 22 21
Depreciation 2 4
Rentals under operating leases: property 42 116
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## **8 Tangible fixed assets**
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Furniture,
Leasehold Assets under IT, office Total
improvements construction equipment 2024
£000 £000 £000 £000
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|Cost|||||
|---|---|---|---|---|
|As at 1 April 2023|107|7
|76|190|
|Additions|–
|42|5|47|
|Disposals|(107)|–
|(36)
|(143)|
|At 31 March 2024|–|49
|45|94|
|Depreciation|||||
|As at 1 April 2023|107|–
|75|182|
|Charge for the year|–|–
|2|2|
|Disposals|(107)|–|(36)
|(143)|
|At 31 March 2024|–
|–|41|41|
|Net book value at 31 March 2024|–|49|4|53|
|Net book value at 31 March 2023|–
|–|8|8|
## **9 Fixed asset investments**
## **9a Fixed asset investments**
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2024 2023
£000 £000
Market value of listed investments at 1 April 23,738 25,001
Additions at cost 18 8
Disposal at carrying value (1,710) (326)
Gains and losses on investments 2,165 (945)
Market value of listed investments at 31 March 24,211 23,738
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## **9b Historical cost**
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2024 2023
£000 £000
Market value at 31 March 24,211 23,738
Accumulated gains brought forward (12,167) (13,093)
Net (gains) / losses for the year (2,165) 944
Historical cost at 31 March 9,879 11,589
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## **9c Investments disposition**
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2024 2023
£000 £000
Common Investment Funds: COIF Charities Investment Fund 24,101 23,638
Common Investment Funds: COIF Ethical Investment Fund 110 100
Total market value of listed investments at 31 March 24,211 23,738
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## **10 Debtors**
**----- Start of picture text -----**
2024 2023
£000 £000
Trade debtors 1,131 344
Prepayments 37 36
Accrued income 4 17
Total debtors at 31 March 1,172 397
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**The London Community Foundation**
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## **Notes to the financial statements**
## **11 Creditors: amounts falling due within one year**
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Total Total
2024 2023
£000 £000
Grants payable 1,301 2,502
Other creditors 311 115
Accruals 39 100
Deferred income 78 –
Total creditors at 31 March 1,729 2,717
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## **12 Obligations under operating leases**
At 31 March 2024, the Charity had total future minimum lease payments under non-cancellable operating leases for office rent as follows:
||2024
£000|2023
£000|
|---|---|---|
|Within oneyear|–|42|
|Total obligations under operatingleases|–|42|
## **13a Analysis of net assets between funds**
Fund balances at 31 March
## **11a Reconciliation of grants payable**
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Total Total
2024 2023
Notes £000 £000
Balance brought forward 1 April 2,502 2,270
Grants awarded during the year 3b 11,496 11,889
Grants paid out during the year (12,697) (11,657)
Grant creditors at 31 March 1,301 2,502
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## **11b Reconciliation of deferred income**
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Total Total
2024 2023
£000 £000
Balance brought forward at 1 April – 63
Amounts released to income – (63)
Cash received to be deferred 78 –
Balance carried forward at 31 March 78 –
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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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Unrestricted Restricted Endowment Total Total
funds funds funds 2024 2023
£000 £000 £000 £000 £000
Represented by:
Tangible fixed assets 53 - – 53 8
Fixed asset investments – 278 23,933 24,211 23,738
Current assets – cash 1,057 7,470 22 8,549 10,210
Current assets – debtors 150 1,022 – 1,172 397
Creditors: amounts falling (428) (1,301) – (1,729) (2,717)
due within one year
Total funds 832 7,469 23,955 32,256 31,636
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## **13b Analysis of net assets between funds (prior year)**
Fund balances at 31 March 2023
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Unrestricted Restricted Endowment Total
funds funds funds 2023 Total
£000 £000 £000 £000 2022£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 937 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 £278k and will be drawn down once the spending plans are finalised by the fund holder.
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## **Notes to the financial statements**
## **14 Endowment funds**
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
2023 Income Expenditure in/(out) (loss) 2024
£000 £000 £000 £000 £000 £000
Bromley Community Fund 276 – – (5) 26 297
Croydon Community Fund 438 – – (35) 39 442
Deutsche Bank Fund 696 – – – 64 760
Evening Standard Dispossessed 2,775 – – (500) 256 2,531
Fund
Gordon Family Fund 337 – – – 31 368
Lambeth Community fund 175 – – 96 25 296
Norton Rose GG Endowment 452 – – (60) 38 430
Fund
Victoria Foundation Fund 414 – – (24) 37 427
Westminster Fund 452 – – – 44 496
Other Grassroots Grants funds 1,847 – – (132) 162 1,877
Total Grassroots Grants 7,862 – – (660) 722 7,924
funds (expendable)
Barnet Fund 376 – – (6) 34 404
Gordon Family CF Endowment 998 – – – 92 1,090
Fund
Cadogan Kensington and 288 22 – – 26 336
Chelsea Foundation CF
Endowment Fund Grants
Land Securities Westminster 269 – – – 25 294
Fund
Living Cities Community Fund 1,074 – – – 99 1,173
The London Leg Up Fund 394 – – – 36 430
Other Community First funds 2,678 – – (17) 245 2,906
Total Community First funds 6,077 22 – (23) 557 6,633
(expendable)
Grassroots
Community First (Expendable)
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## **14 Endowment funds (continued)**
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Balance
Balance at Investment at 31
1 April Transfers gain / March
2023 Income Expenditure in/(out) (loss) 2024
£000 £000 £000 £000 £000 £000
Cresswell Trust 73 – – – 7 80
Lambeth Endowment Fund 1,438 – – – 132 1,570
Lewisham Fund 407 – – – 41 448
Portuguese Fund 754 – – – 69 823
South London Opportunity 193 – – – 19 212
Fund
Wandsworth Community Fund 581 – – (2) 54 633
Total other expendable 3,446 – – (2) 322 3,766
endowment funds
Total expendable 17,385 – – (685) 1,601 18,301
endowment
Barnet Endowment 87 – – – 8 95
Beaufoy Trust 1,711 – – – 157 1,868
Pedlar's Acre Trust unapplied 979 28 – (67) 262 1,202
total return
Pedlar's Acre Trust 1,837 – – – – 1,837
Richmond Civic Trust 577 – – – 53 630
Total permanent 5,191 28 – (67) 480 5,632
endowment
Total endowment funds 22,576 50 – (752) 2,081 23,955
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 homelessness
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 financial statements**
## **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 Foundation CF To support the local community in Kensington and Chelsea near the
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
**----- 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 2024 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 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.
## **15 Restricted funds**
LCF holds many restricted funds. We have separated out any material fund with an opening balance or closing balance of over £10,000. The funds of the Charity include restricted funds listed below; 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.
## **15a Restricted funds (endowment funds - revenue element)**
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Balance
Balance at Transfers at 31
1 April in / Investment March
2023 Income Expenditure (out) gain/(loss) 2024
£000 £000 £000 £000 £000 £000
Evening Standard Grassroots Grants 250 36 (250) 506 - 542
Dispossessed Appeal Fund
Pedlar’s Acre Endowment Fund 235 6 - 68 35 344
Sue Estermann Fund 159 4 - - - 163
Barnet NW CF Endowment Fund 92 6 - (6) - 92
Lewisham Endowment Fund 75 5 - - - 80
Norton Rose GG Endowment Fund 9 6 - 54 1 70
Richmond Civic Trust Permanent 50 13 - - - 63
Endowment
Deutsche Bank Older Peoples CF 53 34 (30) - - 57
Endowment Fund
Evening Standard Croydon Dispossessed 47 4 - - - 51
Appeal Endowment Fund
Beaufoy Trust Endowment Fund Permanent 23 18 - - - 41
Endowment
Lambeth CF Endowment Grants 20 15 - - 4 39
Wandsworth Community Endowment Fund 19 17 - 2 2 40
Croydon Community GG Endowment 15 5 (15) 23 2 30
Fund
Victoria Foundation Fund 13 5 (13) 24 - 29
Gordon Family CF Endowment Fund 124 11 - (109) - 26
London Leg Up Fund (Bragg) CF 27 13 (15) - - 25
Endowment Fund
LCF Portuguese Endowment Fund 11 8 - - 3 22
Salway CF Endowment Fund 13 13 (19) 13 - 20
Brent Harrow Enfield CF Fund 17 1 - - - 18
Living Cities Community CF Endowment 42 17 - (42) - 17
Fund
Cadogan Kensington and Chelsea 11 3 - - - 14
Foundation CF Endowment Fund
Bromley Community Fund 4 3 1 5 1 14
Hemlata and Kantilal Tanna Family 9 2 (4) 4 - 11
CF Fund
Westminster GG Endowment Fund 6 5 - - - 11
Deutsche Bank GG Endowment Fund - 8 - - 3 11
Peckham GG Endowment Fund 7 2 (47) 47 1 10
Gordon Family GG Endowment Fund 5 4 - - 1 10
Other endowment funds (revenue element) 138 43 (57) 4 5 133
balances <£10k
Total endowment funds (revenue 1,474 307 (449) 593 58 1,983
element)
**----- End of picture text -----**
**The London Community Foundation**
**The London Community Foundation**
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**The London Community Foundation**
## **Notes to the financial statements**
## **15b Restricted funds (flow throught grant making funds)**
**----- Start of picture text -----**
Balance
Balance at Transfers at 31
1 April in / Investment March
2023 Income Expenditure (out) gain/(loss) 2024
£000 £000 £000 £000 £000 £000
MOPAC VAWG Grassroots Fund 23-25 - 1,549 (773) - - 776
The Stanhope Foundation Fund 538 538 (530) - - 546
Adobe Community Fund - 449 - - - 449
GLA 82072 MoJ DA SV 22-25 390 1,506 (1,464) - - 432
Wimbledon Foundation Community Fund 402 644 (629) - - 417
Hackney Foodbank Community Fund - 412 - - - 412
The CJ Fund 349 9 - (50) - 308
Youth Futures Fund 238 116 (216) 133 - 271
Cockayne Fund 345 1,755 (1,805) (27) - 268
Women’s Fund for London 7 140 - 87 - 234
Peabody Community Fund 491 12 (296) - - 207
Gordon Family (combined) Fund 125 4 (79) 79 - 129
Living Communities Fund 170 113 (190) 30 - 123
Elephant & Castle Community Fund 80 79 (65) - - 94
JP Morgan Fund 714 210 (835) - - 89
Greenwich Peninsula Community Fund - 170 (100) 8 - 78
Deutsche Bank small grants Fund 88 37 (59) - - 66
Merton & Sutton Health & Wellbeing fund 64 2 - - - 66
Lambeth Grants Funds (combined) Funds 303 6 (250) - - 59
Lambeth Wellbeing Fund 195 52 (186) (9) - 52
Wandsworth Combined Charity Fund 35 1 - - - 36
The Young People's Fund 80 2 (49) - - 33
Grenfell Children & Young People fund 62 1 (30) - - 33
HDR United Kingdom Fund 20 43 (30) - - 33
Bromley Community Fund (combined) 27 1 - - - 28
Covent Garden Market Authority Fund 24 1 - - - 25
Excluded Initiative Fund 93 2 (74) - - 21
Broadgate Community Fund 119 14 (103) (10) - 20
Simon & Lynn Dodds Fund 44 5 (30) - - 19
Reel Fund (Kogan and Schmidt) - 125 (101) (6) - 18
Thamesmead Community Fund (6) 86 (62) - - 18
Lane Fund (combined) 16 - - - - 16
Muggin’s Funds (combined) 14 - - 1 - 15
North London Philanthropic Trust Fund 80 1 - (70) - 11
Land Securities Westminster Fund 41 - (30) - - 11
Land Securities Fund 11 - - - - 11
Other grant making funds (flow through) - 1,490 1,879 (3,194) (113) - 62
balances <£10k
6,649 9,964 (11,180) 53 - 5,486
Total Restricted funds 8,123 10,271 (11,629) 646 58 7,469
**----- End of picture text -----**
## **15c Restricted funds - purposes and restrictions**
**----- Start of picture text -----**
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
The Adobe Community Fund To support disability charities and disability organisations with two-year
funding, focusing on digital and creative inclusion
The Hackney Foodbank To support organisations responding to the immediate impacts of food
insecurity in Hackney, particularly communities hardest hit by the cost-of-
living crisis
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**The London Community Foundation**
**The London Community Foundation**
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**The London Community Foundation**
## **Notes to the 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 £410,000 in 2018-19. Any new funds raised in relation to Grenfell Tower are now added to this fund.
## **16 Endowment funds (prior year comparatives)**
|||Balance at
1 April
2022
£000|Income
£000|Expenditure
£000|Transfers
in/(out)
£000|Investment
gain /
(loss)
£000|Balance
at 31
March
2023
£000|
|---|---|---|---|---|---|---|---|
||Bromley Community Fund|287|–|–|–|(11)|276|
|Croydon Community Fund
456
–
–
–
(18)
438
Deutsche Bank Fund
725
–
–
–
(29)
696
Evening Standard
Dispossessed Fund
2,884
–
–
–
(109)
2,775
Gordon Family Fund
351
–
–
–
(14)
337
Lambeth Community Fund
283
–
–
–
(108)
175
Norton Rose GG
Endowment Fund
534
–
–
(60)
(22)
452
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
funds(expendable)
8,390
–
–
(195)
(333)
7,862
Grassroots
~~ee~~||||||||
|Community First|Barnet Fund
Gordon Family
CF Endowment Fund
Cadogan Kensington and
Chelsea Foundation CF
Endowment Fund
Land Securities Westminster
Fund
Living Cities Community Fund
The London Leg Up Fund
Other CommunityFirst funds|392
1,152
272
279
1,142
409
2,814|–
–
26
–
–
–
–|–
–
–
–
–
–
–|–
(109)
–
–
(25)
–
(30)|(16)
(45)
(10)
(10)
(43)
(15)
(106)|376
998
288
269
1,074
394
2,678|
||Total Community First|6,460|26|–|(164)|(245)|6,077|
||funds(expendable)|||||||
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## **Notes to the financial statements**
## **16 Endowment funds (prior year comparatives) (continued)**
||||Balance at
1 April
2022
£000|Income
£000|Expenditure
£000|Transfers
in/(out)
£000|Investment
gain /
(loss)
£000|Balance
at 31
March
2023
£000|
|---|---|---|---|---|---|---|---|---|
|||Cresswell Trust|77|–|–|(2)|(2)|73|
||Expendable|Lambeth Endowment Fund
Lewisham Fund
Portuguese Fund
South London Opportunity
Fund
Wandsworth CommunityFund
Total other expendable
endowment funds|1,495
424
784
201
620
3,601|–
–
–
–
–
–|–
–
–
–
–
–|–
–
–
–
(15)
(17)|(57)
(17)
(30)
(8)
(24)
(138)|1,438
407
754
193
581
3,446|
|||Total expendable
endowment|18,451|26|–|(376)|(716)|17,385|
||Barnet Endowment
90
–
–
–
(3)
87
Beaufoy Trust
1,778
–
–
–
(67)
1,711
Pedlar’s Acre Trust
unapplied total return
1,295
38
–
(230)
(124)
979
Pedlar’s Acre Trust
1,837
–
–
–
–
1,837
Richmond Civic Trust
599
–
–
–
(22)
577
Total permanent
5,599
38
–
(230)
(216)
5,191
Permanent
~~a~~||||||||
|endowment
Total endowment funds
24,050
~~TN~~||||64|–|(606)|(932)|22,576|
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The London Community Foundation
- —
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88 ma
**The London Community Foundation**
89
**Annual report and financial statements**
## **Notes to the financial statements**
## **17a Restricted funds - endowment funds (revenue element) (prior year comparatives)**
**----- Start of picture text -----**
Balance
Balance at Transfers at 31
1 April in / March
2022 Income Expenditure (out) 2023
£000 £000 £000 £000 £000
Evening Standard Grassroots Grants Dispossessed 548 38 (415) 78 249
Appeal LCF Grants
LCF Pedlar’s Acre Endowment Fund 104 5 - 126 235
Sue Estermann Fund (ELCF) 159 - - - 159
Gordon Family CF Endowment Fund 22 14 - 87 123
Barnet NW CF Endowment Fund 82 5 - 6 93
Lewisham Endowment Fund 69 5 - - 74
Deutsche Bank Older Peoples CF Endowment Fund 48 33 (29) - 52
Richmond Civic Trust Permanent Endowment Fund 38 12 - - 50
Evening Standard Croydon Dispossessed Appeal 30 4 - 14 48
Endowment Fund
Living Cities Community CF Endowment Fund 17 17 - 7 41
PWC Westminster GG Endowment Fund 7 1 - 21 29
London Leg Up Fund (Bragg) CF Endowment Fund 25 12 (10) - 27
South London Opportunity (James and Emma 31 3 (10) - 24
Fleming) CF Endowment Fund
Beaufoy Trust Endowment Fund Permanent 80 23 - (80) 23
Endowment Fund
Lambeth CF Endowment Fund 195 20 - (195) 20
Wandsworth Community Endowment Fund 13 17 - (11) 19
Brent Harrow Enfield CF Fund 16 1 - 1 18
Croydon Community GG Endowment Fund (2) 6 - 12 16
Victoria Foundation Fund 5 6 (15) 17 13
Salway CF Endowment Fund 18 13 (20) 2 13
Cadogan Kensington and Chelsea Foundation CF 7 4 - - 11
Endowment Fund
LCF Portuguese Endowment Grants 29 11 - (29) 11
Hemlata and Kantilal Tanna Family CF Endowment Fund 14 3 (7) - 10
Other endowment (revenue funds) <£10k 272 79 (54) (177) 120
1,827 332 (560) (121) 1,478
**----- End of picture text -----**
## **17b Restricted funds - flow through grant making funds (prior year comparatives)**
**----- Start of picture text -----**
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 Fund 805 742 (833) - 714
The Stanhope Foundation Fund 319 654 (436) - 537
Peabody Community Fund 471 850 (831) - 490
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 (1,466) (8) 346
Skill Up Step-Up Employability Fund 353 450 (465) - 338
Lambeth Grants Funds (combined) - - (143) 447 304
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 5 119 (1) (5) 118
Lambeth Youth Opportunities Fund 53 51 (1) - 103
Excluded Initiative Fund 161 96 (181) 16 92
Deutsche Bank Opportunity Fund 151 17 (100) 20 88
The Young People's Fund 49 100 (69) - 80
North London Philanthropic Trust Fund 40 40 - - 80
Elephant & Castle Community Fund 80 75 (75) - 80
Merton & Sutton Health & Wellbeing fund 64 - - - 64
Grenfell Children & Young People fund 250 6 (188) (6) 62
Norton Rose Fulbright Fund - - - 60 60
Wimbledon Foundation Homelessness Fund - 187 (129) - 58
The Cellnex Fund - 45 - - 45
Simon & Lynn Dodds Fund 46 25 (28) - 43
Land Securities Westminster Fund 62 - (30) 9 41
Wandsworth Combined Charity Fund - - - 35 35
Citi Awards Fund 28 - (1) - 27
Bromley Community Fund (combined) 6 10 5 6 27
Covent Garden Market Authority Fund 24 0 - - 24
Regents Place Community Fund 13 10 - - 23
HDR United Kingdom Fund - 20 - - 20
Barnet Giving Fund 9 0 - 10 19
Together For London Fund - 2,017 (2,101) 101 17
Lane Fund (combined) 18 15 - (17) 16
**----- End of picture text -----**
**The London Community Foundation**
**The London Community Foundation**
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**The London Community Foundation**
## **Notes to the financial statements**
## **17b Restricted funds - flow through grant making funds (prior year comparatives) (continued)**
||Balance at
1 April
2022
£000|Income
£000|Expenditure
£000|Transfers
in /
(out)
£000|Balance
at 31
March
2023
£000|
|---|---|---|---|---|---|
|Muggin’s Fund's (combined)|13|-|-|2|15|
|Land Securities Fund
8
British Red Cross Fund
-
Othergrant makingfunds(flow through)<£10k
1,669||-
60
636|-
(50)
(2,079)|3
-
(187)|11
10
39|
||6,357|11,177|(11,546)|657|6,645|
|Total Restricted funds|8,184|11,509|(12,106)|536|8,123|
## **18 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 2024 are shown below:
||Notes
The London
Community
Foundation
£000
Pedlar’s
Acre
Trust
£000
Total
£000|
|---|---|
|Assets of each charity at 31 March 2024|Assets of each charity at 31 March 2024|
|Opening balance at 1 April 2023
Income
Expenditure
Application of income funds
Gain on investments|Opening balance at 1 April 2023
28,820
2,81631,636
11,527
2811,555
(13,100)
-
(13,100)
14
67
(67)
-
1,903
262 2,165|
|Net movement in funds|397
223 620|
|Closingbalance at 31 March 2024
29,217
3,039 32,256||
|Tangible fixed assets
53
-
53
Fixed asset investments
21,172
3,03924,211
Debtors
1,172
-
1,172
Cash at bank and in hand
8,549
-
8,549
Creditors: amounts fallingdue within oneyear
(1,729)
-
(1,729)||
|Net assets at 31 March 2024
29,217
3,039 32,256||
|Funds of the charities
Expendable endowment funds
18,323
-
18,323
Permanent endowment funds
2,593
3,039
5,632
Restricted funds
7,469
-
7,469||
|Unrestricted funds
832
-
832
Closingbalance at 31 March 2024
29,217
3,039
32,256
~~TTT~~||
**The London Community Foundation**
**The London Community Foundation**
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**Annual report and financial statements**
## **Notes to the financial statements**
## **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 2024, 3.5% of the value of the fund as at 31 December 2022 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.
## **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 2024 there were no assets or liabilities relating to the fund (2023: NIL).
## **20 Related party transactions**
As per note 6, the Trustees are not remunerated, and no expenses have been incurred in 2024 (2023: NIL).
**----- Start of picture text -----**
31 March 31 March
Trustee / Relationship 2024 2023
Organisation Employee with LCF Description £000 £000
The London Community Foundation Gaynor Humphries Trustee Donation - 4
Carers Hub Lambeth Laura Perkins Employee Grant 24 10
The London Community Foundation Russell Prior Trustee Donation 4 -
Ella’s Home Nimat Jaffer Employee Grant 56 -
**----- End of picture text -----**
The investment fund and application of total return to permanent endowment fund is as follows:
**----- Start of picture text -----**
Total Total
2024 2023
£000 £000
Opening value of permanent endowment at 1 April 2,816 3,132
Less:
Value of endowment at 31 March 2004 (1,837) (1,837)
Opening value of unapplied total return at 1 April 979 1,295
Add:
Investment return: income 28 38
Investment return: unrealised (loss)/gain on investment 262 (124)
Less:
Transfers to income (67) (230)
Unapplied total return after transfer to income 1,202 979
Add:
Value of endowment at 31 March 2004 1,837 1,837
Permanent endowment including unapplied total return at 31 March 3,039 2,816
**----- End of picture text -----**
## **21 Analysis of grants**
## **21a Analysis of grants by recipient**
||Total
2024
£000|Total
2024
Number|
|---|---|---|
|Grants awarded to institutions|11,496|780|
|Total|11,496|780|
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.
**The London Community Foundation**
**The London Community Foundation**
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**Annual report and financial statements**
## **Notes to the financial statements**
## **21b Analysis of grants by theme**
**----- Start of picture text -----**
Number
Amount of grants
Primary beneficiary £000 awarded
Black, Asian and minority ethnic 2,909 203
Cockayne (Arts) 1,749 85
Children and young people 1,650 119
Women 1,212 75
Victims of crime/violence/abuse 824 33
Older people 719 95
People with multiple disabilities 380 16
Local residents 332 34
Homeless people 314 19
Not in education, employment and training (NEET 312 16
16-24)
Refugees/asylum seekers/ immigrants 242 16
People in care or suffering serious illness 110 3
People living in poverty 110 11
Lesbian, gay, bisexual and transgendered groups 105 10
People with alcohol/drug addictions 102 4
Ex-offenders/offenders/at risk of offending 100 5
People with mental health issues 98 11
Families/parents/lone parents 97 11
Carers 54 5
People with learning difficulties 38 4
People with low skill levels 15 2
Refugees/ asylum seekers 10 1
Men 10 1
Adults 4 1
Total 11,496 780
**----- End of picture text -----**
## **Prior year comparatives**
## **Statement of financial activity for the year to 31 March 2023**
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total Total
funds funds funds 2023 2022
Notes £000 £000 £000 £000 £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 927 12,054 - 12,981 10,226
Community development 3c 1 49 - 50 25
Total expenditure 1,444 12,106 - 13,550 10,805
Net income / (17) (597) 64 (550) 1,378
(expenditure) before
investment gains
and losses
Net gains / (losses) 9 (12) - (932) (944) 2,017
on investments
Net income / (29) (597) (868) (1,494) 3,395
(expenditure)
Transfers in / (out) 14,15 70 536 (606) - -
between funds
Net movement in funds 41 (61) (1,474) (1,494) 3,395
Reconciliation of funds
Total funds brought 896 8,184 24,050 33,130 29,735
forward at 1 April
Total funds carried 12 937 8,123 22,576 31,636 33,130
forward at 31 March
**----- End of picture text -----**
**The London Community Foundation**
**The London Community Foundation**
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**----- Start of picture text -----**
Contact
**----- End of picture text -----**
**Annual report and financial statements The London Community Foundation**
## **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
## **Acknowledgements**
Design: Strudel
Front cover image: Kinetic Foundation
**----- Start of picture text -----**
Member
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98
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