# **Annual report and financial statements**
**For the year ending 31 March 2025**
**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.**
**We believe London is the greatest city in the world. But London is a polarised city, of extreme inequality, where many 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
£134 million
in grants to support London’s grassroots organisations
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## **Contents**
|**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|
|**A year at The London Community Foundation**|**16**|
|**Trustees’ report**|**18**|
|Legal and administrative information|19|
|Objectives and activities|23|
|Grant making policy|25|
|Structure, governance and management
Public benefit statement|25
28|
|Achievements and performance
Financial review
Reserves
Reserves policy|28
31
33
34|
|Investment policy and management|36|
|Principal risks and uncertainties|38|
|People and pay|42|
|Future plans|50|
|Our approach to fundraising|52|
|Statement of Trustees’ responsibilities|53|
|**Independent auditor’s report to the members of**||
|**The London Community Foundation**|**55**|
|**Statement of financial activities**|**61**|
|**Balance sheet**|**62**|
|**Statement of cash flows**|**63**|
|**Notes to the financial statements**|**65**|
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**Annual report and financial statements**
**The London Community Foundation**
## **Chair’s statement**
## **Collaboration is key in changing, uncertain times**
**There is immense power in partnership, and we’re privileged to stand with London’s community and voluntary sector to help meet their needs and challenges. We can’t do it alone and we wouldn’t want to try to do so either.**
**Our impact across London**
£8,523,000 awarded to charitable organisations
703
The London Community Foundation is built on collaboration – whether it’s working together with our generous donors to support their social impact and philanthropic goals or supporting our network of community organisations through funding, guidance and organisational development. But in times of turbulence and uncertainty, working together becomes even more vital. Global markets have become increasingly unpredictable this year, which has had a knock-on effect on donors and charities alike.
Our commitment to supporting grassroots community organisations remains a constant but we’re increasingly looking for ways to draw others in to become part of the solution. For example, we were delighted to work with Sainsbury’s and Comic Relief on our first Holiday Activities and Food (HAF) programme over the summer holidays. Collaboration was also a key part of establishing the Adobe UK Community Fund, with our colleagues at Berkshire Community Foundation. Valuable insight and guidance from sector experts Inclusion London shaped the programme supporting digital and creative inclusion for disability organisations.
Early in the year we convened a gathering of property developers to explore how we could see even greater social impact through collaboration across the real estate sector. Knight Dragon gave us insight into their partnership with Royal Borough of Greenwich while British Land shared their model for joining forces with their customers and tenants to help the communities surrounding their London campuses.
Both of our pooled ‘All Together’ funds - Women’s Fund for London and Youth Futures Fund - have continued to grow in both value and number of donors. This year Youth Futures surpassed the milestone of £1 million, with £1.4 million raised and distributed to support young people across London. Thanks to generous match funding from CCLA Investments this includes nearly £400,000 going to organisations helping London’s young care leavers to thrive.
A personal highlight for me was to watch our team of London Marathon runners race through the city’s streets. Each of these generous runners taking on a personal challenge but working together to raise over £50,000 to
help us support good causes across London. Whatever the future holds for London and our network of community organisations, we can be confident that working together to support London’s communities will put us all in a stronger position.
This year has seen a change in leadership of The London Community Foundation and I would like to express my thanks to Paul Buchanan MBE for his hard work and dedication during his first year as CEO. It is fitting that he was recognised in the King’s New Year’s Honours list for his services to charity and I am excited to see him lead us forward into the future. 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.
**Russell Prior OBE** Chair The London Community Foundation
grants allocated
£12,124
average grant size
## 78%
of grantees have an annual income of under £500,000
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**Annual report and financial statements**
## **Chief Executive’s welcome**
## **Increasing our focus on impact**
**At The London Community Foundation, we are driven by a deep belief in the power of grassroots organisations to lead meaningful change.**
facing many Londoners and deliver support that is based on the needs of individuals, is inclusive, is culturally relevant, and always transformative.
In a year of continued economic and social pressures in our communities, our focus has remained on increasing our impact, by supporting those closest to the challenges, and the solutions.
We recognise that the success of the community organisations we support, means success for us and our donors. It is the community organisations themselves who know how to make a difference and are best placed to understand their own needs. So, we have continued to deepen our engagement with community organisations, to understand their needs,
In 2024–25, we awarded over £8.5 million in funding through 703 grants, with nearly 80% going to organisations with annual incomes under £500,000. The charities we support are embedded in their communities and they are trusted and responsive. They understand the complex issues
and look to provide as much supportive funding as possible. This includes providing longer term, co-designed, and core funding to organisations wherever possible.
It is inspirational to work with so many thoughtful and responsive donors, from all sectors, who care about improving the lives of Londoners facing challenges. Working alongside incredible donors like Adobe to support disability organisations that desperately need more core funding to meet burgeoning demand, especially in underserved cold spots in London. Likewise with the Wimbledon Foundation who are supporting local homelessness charities with long term, flexible funding based on their needs. Or through the impactful, longstanding partnership with MOPAC to tackle violence against woman and girls which provides collaboration, learning, and development opportunities for grantees, alongside funding, to tackle this pernicious issue.
I would also like to thank the Godin Legacy Fund for their kind donation to The London Community Foundation, which has been incredibly valuable for us as a charity, in furthering our work to
**The London Community Foundation**
support women in London through our funding programmes.
Looking ahead our priority is to be impact led. We are putting the foundations in place for a longterm strategy to grow our impact. We will work closely with our donors to be a supportive and understanding funder. We will collaborate widely to avoid duplication and leverage more value for communities. We will advocate for grass roots community organisations and ask more incredible donors to join our collective mission, to make London a fairer and more equitable place for all.
As I reflect on my first year as CEO of The London Community Foundation, it’s been an honour to lead the organisation as we continue to evolve to meet the needs of London grassroots charities. And it’s a privilege to lead such a dedicated, committed and caring team; supported by our outstanding trustees.
**Paul Buchanan MBE**
Chief Executive Officer
## **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** I =
**The London Community Foundation**
## **Our impact: Women**
## **Reaching those women most at risk in our city**
“Your financial partnership means that we can continue to focus our small charity resources on our in-depth, holistic and survivor-centred work which is truly transformational for the women we work with. We are incredibly grateful for your support.”
## **Funding and support**
£2,045,975 of funding was awarded to community organisations supporting women
28%
## **Strength and Stem**
With nearly five million women and girls living in London, the range of issues faced by those women marginalised by poverty, race, culture, community, religion and language is vast. Our funding programmes are designed with the ambition to ensure that all get the chance to receive the support and provision they need. However, the layered nature of the experiences and challenges they face, means that women often face additional disadvantage. The impact of this can start to be felt at a young age too.
This year the **Evening Standard** ran an investigation into the prevalence of misogyny in schools and its impact on young women and girls, committing £500,000 as part of their **Show Respect** campaign to tackle the issue. Grants were awarded to 12 community organisations across London from the **Evening Standard Dispossessed Fund** . The programme has already impacted 2,089 students across 35 schools in 13 London boroughs. The campaign also received
prominent coverage in several editions of the Evening Standard newspaper and on their website.
In September, we gathered together with 36 specialist community organisations tackling violence against women and girls (VAWG), with special guest outgoing **Deputy Mayor Sophie Linden** . The current cohort from **MOPAC Violence Against Women and Girls (VAWG) Grassroots Fund 2023-25** have already supported 7,794 women with recovery and engaged young girls and boys in the prevention of harmful attitudes. Despite systemic barriers, these small led by and for organisations deliver culturally sensitive and trauma-informed services to those experiencing multiple disadvantages. The £3+ million multi-year programme represents everything we aspire to as a flexible and responsive funder – yet this merely scratches the surface in this area of great need.
Just one month later we hosted another group of community organisations bringing hope and
opportunity specifically to women across the city. Our new **Women’s Fund for London** has now awarded £210,000 to support four community organisations providing skills, training and employment opportunities to disadvantaged women. As one of our pooled ‘All Together’ funds, it offers the perfect way for anyone – individuals, trusts or companies – to help us achieve sustainable, flexible support and bring greater financial resilience to disadvantaged women and their families.
In December, **Godin Legacy Fund** gave an unrestricted £50,000 donation in recognition of our commitment to supporting women in the capital through our wide grantmaking programmes and projects, including the **Women’s Fund for London** .
Our Women’s Fund for London runs throughout the year. If you would like to know more about supporting women across the city, please contact **philanthropy@londoncf.org.uk**
of our overall funding was focused on women 7,794
women and young people supported through VAWG recovery and education programmes
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## **Our impact: Young people**
## **Helping the capital’s young people to thrive**
“I’ve never been in an environment where I feel so valued for being me. The sense of family and community that The Big House Theatre Company generates is truly unique and amazing.”
## **Young person, supported by The Big House Theatre Company**
This summer we also launched our first summer holiday activities and food (HAF) programme, with **Sainsbury’s** and **Comic Relief** identifying key communities across the city that were not eligible or prioritised for existing government HAF programmes. The **Nourish the Nation Summer Holiday Activities and Food programme** distributed £400,000 to 41 community organisations in 18 London boroughs in 2024. We were also able to work with Sainsbury’s and Comic Relief to facilitate HAF funding for fellow community foundations in Manchester, Northern Ireland, Scotland and Wales.
Young people in London feel the impact of the city’s inequality as much as anyone. Young people under 25 make up nearly a third of London’s population and many of them struggle to access the opportunities, services, and support they need to thrive. Resources can be stretched for organisations supporting young people and funding gaps become inevitable. This year we have been able to identify some important areas where funding for young people can make a significant impact, such as tackling misogyny in schools, providing summer holiday activity and food programmes and supporting young people leaving care.
Young people supported by the **Wimbledon Foundation Community Fund** featured prominently in the 10th anniversary of the **Wimbledon Foundation** celebrated at The Championships this year. Young people representing two of the grantee organisations (Ashdon Jazz Academy and Carney’s Community) took part in the coin toss for the Singles Finals at Wimbledon 2024.
Our **Youth Futures Fund** continues to grow, with over £1.4 million raised and distributed to community organisations across the capital. With previous rounds focusing on post-pandemic mental health, education and employment and healthy relationships, this year’s theme was helping young care leavers to thrive. Thanks to £150,000 of match funding from **CCLA Investments** , we were able to raise £395,000 to support six specialist community organisations helping those leaving care to transition to adulthood. Broadcaster, TV presenter and inspirational speaker **Ashley John-Baptiste** joined us to share his experiences of leaving the care system, at the launch of the match-funded care leavers programme.
Our Youth Futures Fund runs throughout the year. If you would like to know more about supporting young people across the city, please contact **philanthropy@londoncf.org.uk**
## **Funding** ; A **and support** £3,015, 534
of funding was awarded to community organisations supporting children and young people
## 41%
of our overall funding was focused on children and young people
6,088
children provided with meals and summer activities through Nourish the Nation
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**The London Community Foundation**
## **Our impact: Strengthening organisations**
## **Supporting community organisations beyond the financial**
“The P2E programme has been transformative, helping us identify and capitalise on our strengths while addressing areas for improvement. The impact has been profound, fostering a shared sense of purpose, improved communication, and enhanced leadership capabilities.”
## **P2E partner organisation**
package of organisational development - peer learning workshops, consultancy, leadership development and resource sharing. This culturally sensitive, collaborative approach enabled organisations to build sustainable infrastructure and leadership, not just deliver projects. Peer learning and the ability to work with consultants who understand their communities’ lived experiences enhanced both impact and engagement.
Supporting London’s charity sector means more than channelling financial resources to the community organisations that need them most. Offering capacitybuilding to ensure organisations remain sustainable and can thrive is crucial, especially where their teams have limited access to training and consultancy.
This year saw the conclusion of the **£2million Pathways to Economic Opportunities (P2E)** programme, in partnership with **Action for Race Equality and Ubele Initiative** and funded by **JPMorganChase** . This multi-year programme demonstrates the transformational impact of combining grant-making with tailored organisational development support - strengthening the very organisations we are dedicated to championing.
In February, building on the success of the original VAWG Grassroots Fund and the learnings from the P2E programme, we launched a programme for both the **Mayor’s Office for Policing and Crime (MOPAC) Violence Against Women and Girls (VAWG) Grassroots Fund 2023-2025** and the **Home Office VAWG Specialist Support Services Fund 2023-2025** . Our delivery partner **IG Advisors** will offer more than 30 learning and networking opportunities for organisations over the year-long programme, including one-to-one support, action learning sets and online resources.
Between 2022 and 2024, 19 ethnic minority-led organisations working to tackle economic inequalities in London were supported through core and project funding. In addition, they received a comprehensive
Crucially, in all these programmes, the support has been informed by the learning needs and ambitions of the grantee partners and codesigned with the organisations taking part. The P2E programme saw capacity increase up to 36% for participating grantees (an average of 21% across the whole cohort) and some organisations leveraging additional funding of up to six times the original grant.
When we go beyond financial support, investing in the long-term resilience and leadership of community organisations, the social and economic returns are profound. This approach offers a model for funders seeking to build a more equitable and effective social sector.
If you would like to know more about strengthening community organisations across the city, please contact **philanthropy@londoncf.org.uk**
## **Impact in numbers:**
## 64
organisations offered organisational development support
## 46
workshops and learning opportunities for grantees
500+ hours of one-to-one consultancy
21% improvement in capacity across P2E programme
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## **A year at The London Community Foundation**
## **April**
We were proud to receive a ‘good’ **Foundation Practice Rating** (https://foundationpracticerating. org.uk/) – alongside 100 of the largest UK foundations for our good practice in diversity, accountability and transparency.
We hosted a gathering of property owners and developers, hearing from **Knight Dragon, Grosvenor** and **British Land** about ways to collaborate across the sector to maximise social impact.
Our team of 36 runners raised over £50,000 taking part in the **London Marathon** .
## **May**
The **Adobe UK Community Fund** , in partnership with **Adobe Foundation** , opened for applications. 12 grassroots disability and community organisations received two-year grants totalling £432,000.
## **June**
The **Evening Standard** launched the **Show Respect** campaign to support 12 grassroots community organisations tackling violence against women and girls, with grants of £500,000 to highlight the issue of misogyny and unhealthy relationships in schools.
## **July**
**Wimbledon Foundation** celebrated their 10th anniversary at **The Championships at the All England Lawn Tennis and Croquet Club** . Young people representing grantees from **Wimbledon Foundation Community Fund** took part in the coin toss in the finals.
**CCLA Investments** hosted the launch of the latest round of our **Youth Futures Fund** . They provided match funding to help us raise over £400,000 for community organisations supporting young care leavers in London.
## **August**
We surveyed our network of community organisation in response to the **UK riots** . We received 181 responses with 80% reporting their community had increased concerns around safety and mental health.
TV personality and **Comic Relief** ambassador Oti Mabuse visited Somerville Centre – one of 41 Holiday Activity and Food (HAF) projects funded by **Sainsbury’s Nourish the Nation** . The programme, in partnership with **Comic Relief** , distributed £400,000 in grants across London over the summer.
## **September:**
Outgoing **Deputy Mayor Sophie Linden** joined us at an event for the 36 specialist community organisations supported by the **MOPAC Violence Against Women and Girls (VAWG)** Grassroots Fund at Sadlers Wells Theatre.
A new round of the **Wimbledon Foundation Homelessness Fund** opened for applications on the same day as the latest round of **Wimbledon Foundation Community Fund** closed.
## **October**
Our Director of Development and Communications **Harbi Jama** had the opportunity to speak with professional advisers at the national **Financial Planning Conference** in Manchester.
Representatives of the community organisations supported by grants of £210,000 from **Women’s Fund for London** came together to meet each other at Luminary Bakery in Camden.
## **November**
We celebrated the conclusion of **JPMorganChase’s** £2million **Pathways to Economic Opportunities** with an event at their offices in Canary Wharf.
Representatives of four other community foundations supported by **Sainsbury’s Nourish the Nation** (in partnership with **Comic Relief** ) joined us for a learning and knowledge sharing session, with a view to strengthening the partnership for future years.
Newly appointed **Deputy Mayor for Policing and Crime Kaya Comer-Schwartz** visited Rahab Project – one of the organisations supported by **MOPAC Violence Against Women and Girls (VAWG) Grassroots Fund** .
To round off a busy month, **The London Community Foundation office** moved from Borough just down the road to Bermondsey.
**The London Community Foundation**
## **December**
New funding opportunities were launched for Lambeth **Wellbeing Fund, Deptford Challenge Trust Open Programme** and **Lambeth Mental Health Inequalities Fund** .
**Godin Legacy Fund** gave an unrestricted £50,000 donation in recognition of our commitment to supporting women in the capital through our wide grantmaking programmes and projects.
## **January**
Chief Executive **Paul Buchanan** received an MBE for services to charity in the **King’s 2025 New Year’s Honours list** .
**Lord Bassam of Brighton** hosted our community of endowment holders for a special afternoon tea at the House of Lords.
## **February**
**Grosvenor’s Greener Futures Fund** opened for another round of applications, taking the number of grants offered for environmental projects in Westminster to almost £650,000 since it launched in 2021.
## **March**
**Sainsbury’s** donated a further £400,000 to extend the **Nourish the Nation** (in partnership with **Comic Relief** ) HAF programme for summer 2025. **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 2025**
## **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 2025. 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: **82 Tanner Street, London SE1 3GN**
**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)
## **Fiona Bickley**
(Vice Chair of the Board)
## **John Hume**
(Chair of Development, Impact and Influence Committee)
## **Veesh Sharma**
(Chair of Finance, Risk and Resources Committee)
## **Natalie Creary**
(Resigned 26 November 2024)
## **Urmi Dutta-Roy**
## **Owen Jenkins**
## **Satnam Sagoo**
## **Principal officers / Senior Management Team:**
The serving principal officers on the date of approval of this report were:
**Paul Buchanan** Chief Executive Officer
**Nick Diamond** Interim Director of Development
## **Harbi Jama**
(to September 2025) Director of Development and Communications
**Nicola Jaworska** Company Secretary
## **Laura Perkins**
(to August 2024) Director of Development and Communications
**Legal advisors: Bates Wells & Braithwaite London LLP** 2-6 Cannon Street London EC4M 6YH
## **Stone King LLP**
Boundary House 91 Charterhouse Street, Barbican London EC1M 6HR
## **Bankers:**
## **NatWest**
504 Brixton Road London SW9 8EW
**CCLA Investment Management Limited – Cash Deposit Accounts** Senator House 85 Queen Victoria Street London EC4V 4ET
## **Maureen Sebanakitta**
(to March 2025) Chief Operating Officer
## **Kate Stewart**
(to August 2024) Director of Grants and Impact
**Simon Theobald** Director of Finance
## **Investment**
**managers: CCLA Investment Management Limited – Investment of Endowment**
Senator House 85 Queen Victoria Street London EC4V 4ET
## **Auditor:**
## **MHA**
Sixth Floor 2 London Wall Place London EC2Y 5AU
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**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.
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**
**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, in the opinion of the Trustees, are beneficial for the Area of Benefit.**
The ‘Area of Benefit’ for The London Community Foundation (LCF) is the London Boroughs and the City of London.
Our core activities are:
## **1. Funding and developing predominantly small charities and community groups that do not attract mass public support.**
We strive to make our funding process proportionate and accessible to small organisations. Our website provides resources and support to potential applicants seeking funding. This can include information to help applicants decide if they want to apply, such as fund size and the anticipated number of grants to be awarded. Our Grant Standard Operating Procedures are grounded in respecting the time and expertise of grassroots organisations seeking to partner with us while 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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**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 2025, The London Community Foundation held £22,571k (2024: £23,955k) 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 up-to-date 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.
The Trustees have delegated authority to two SubCommittees:
- Finance, Risk and Resources
- Development, Impact and 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.
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**The London Community Foundation**
## **Structure, governance and management (continued)**
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 three 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 three years, Trustees may, subject to the majority agreement of the Board, serve a further period on a Sub-Committee or join another SubCommittee. 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 two 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 equity, diversity, and inclusion are front and centre across LCF’s work and governance
## **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
## **Structure, governance and management (continued)**
- 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
- 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
- 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), made up of Directors, and the wider Senior Leadership Team (SLT). The CEO is recruited by the Board of Trustees. The CEO’s direct reports, on the Senior Management Team, are recruited by the CEO and at least one trustee. Salaries are categorised in bands, and they are benchmarked.
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 Senior Leadership Team (SLT) along with SMT for those under £25k.
## **UK Community Foundations**
LCF is a member of UK Community Foundations (UKCF), the membership and accrediting body that supports and promotes community foundations in the UK. There are 47 community foundations serving most of the UK population. The network of community foundations gives grants totalling around £100 million annually. Together, this makes us the UK’s fourth largest grant-maker holding over £700 million in endowments. Over the past 20 years, donors have given over £1 billion to and through community foundations to address local need. LCF does not have any branches or subsidiaries other than the Pedlar’s Acre Trust and the Beaufoy Trust, both of which hold permanent endowments and have LCF as their sole trustee.
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**Trustees’ report**
**The London Community Foundation**
## **Structure, governance and management (continued)**
## **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 2025 LCF had eight 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 Sub- Committees 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 2025, 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 2024/25, The London Community Foundation continued to make significant strides in supporting London’s communities. We awarded £8.5 million in funding through 703 grants to community organisations across London, addressing a wide range of social issues.
The rest of our achievements are summarised in the table on page 29.
**----- Start of picture text -----**
Strategic objective In detail Achievement
Grow our knowledge, · Impact strategy development · Impact strategy workshop with team and trustees in
reach & connection with · Improve community & stakeholder December 2024, providing foundations for theory of
London’s communities relationship development change and measurement framework development in
· Improve EDI in grant making following financial year.
· Enhance service delivery with active · Several successful pilots on “led by and for” including
feedback Wimbledon Foundation and Adobe UK, providing
further proof of concept
· Regular grantee and partnership visits from whole
team, including 11 project visits for communications,
including four case studies shared on website.
·
Four flagship events, including a House of Lords donor
engagement event, a real estate sector showcase
and donor recruitment event, a VAWG event for all
stakeholders and delivery partner with the Deputy
Mayor for Policing and Crime, and the JPMorganChase
Pathways to Economic Opportunities showcase
· Five blogs focussed on amplifying activity and
growing donor base shared on socials and website
Grow our donor · Achieve total income target of £9.8m · Delivered total income of £9.3m, but strengthened
portfolio · Grow donor engagement in pooled funds and extended our pipeline
with £250k · Women’s Fund for London raised and granted £240k and
· New planning structure with grants and Youth Futures Fund supporting care leavers raised £430k
development teams · Monthly capacity planning meetings across teams
· New grant agreements for £7.4m were signed and
awarded in year to 403 organisations. Total grants
allocated were £8.5m which included current and
multi year agreements
Make best use of our · New Salesforce implementation · Continued work on upgrading our Salesforce
time, data & digital · Upgrade financial software database in collaboration with the UKCF Digital Team,
solutions, ensuring · New grant management tools with completion expected in Q2 2026
compliance · Passed our Cyber Essentials assessment in 2024
· New grant agreement launched, new eligibility
criteria launched, programme checklist launched.
Standard operating procedures reviewed including
risk management for grantees and round closure
Foster a culture of · Build on team engagement and culture · Developed and implemented an Employee
belonging & inclusion · Progress Equity, Diversity and Inclusion Engagement Survey with engagement scores rising
across the LCF team & (EDI) action plan from 73% in June 2024 to 90% in March 2025.
Board · Maximise opportunities for team and · Action plans created and delivered off both surveys
trustee engagement focussed on staff development, improving ways of
· Roll out people survey working, and better communications.
· Implement pay progression and job · Developed monthly internal colleague recognition.
framework · Completed third year of EDI action plan, included
active bystander training and new team profiles set up
to understand work preferences
· Implemented quarterly team and trustee meet and greets
· Online training platform launched, including
mandatory training for whole team on health & safety,
safeguarding, and handling complaints
Build long-term · New approach to pipeline management · New long term weighted pipeline reviewed monthly
financial resilience · Cost modelling and pricing enabling better forecasting
· Endowment review · Tendered for cost modelling support
**----- End of picture text -----**
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**Annual report and financial statements**
**The London Community Foundation**
## **Trustees’ report**
## **Financial review**
**Our total income in 2025 was £9.3 million (2024: £11.6 million), a decrease of 20% compared to the previous year. Our total expenditure was £10.3 million (2024: £13.1 million), a decrease of 21% compared to the previous year. This resulted in an overall deficit (before net gains / losses on investments) for the year of £1 million (2024: £1.5 deficit), with a specific deficit of £105k on the unrestricted funds (2024: £105k deficit).**
## **Income**
The total income for the year was £9.3 million (2024: £11.6 million). Donations came from a range of donors including companies, central and local government, individual philanthropists, and social sector organisations. Other sources include investment income and interest on investments. 90% of our income came from donations, followed by 10% from investment income and interest received.
Income has reduced as we refocussed on grassroots charities and removed ourselves from some activity that wasn’t fulfilling this priority. We continued to diversify our income in the year, however in line with market trends we had a reduction in corporate income, and didn’t deliver a seven figure corporate grant programme as we have in previous years.
The breakdown is as follows:
- Restricted voluntary income received was £7.6 million (2024: £10 million), a decrease of 24%
- Unrestricted voluntary income was £0.8 million (2024: £0.5 million), an increase of 60%
- Investment income was £0.9 million (2024: £0.9 million)
- Income from charitable activities was Nil (2024: £205k)
## **Expenditure**
The Statement of Financial Activities shows our expenditure analysed between the costs of raising funds and the cost of our charitable work, with support costs (including governance costs) being allocated across each.
‘Charitable activities’ represent all grants made to beneficiary organisations and individuals, as well as expenditure on capacity building and evaluation related to some of LCF’s funds, and larger initiatives to support London’s local civil society. It also includes the cost of running grant-making operations and associated support costs. Grants payable in-year totalled £8.5 million (2024: £11.5 million), a decrease of 26%.
LCF’s main core cost excluding grant payments is our team, which represented 60% of the Charity’s unrestricted expenditure (2024: 73%). 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 £1.2 million (2024: £1.1 million) an increase of 9%. The charity maintained an average team size of 21 full-time equivalent staff (2024: 19).
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**Annual report and financial statements**
**The London Community Foundation**
**Trustees’ report**
## **Financial Review (continued)**
## **Cash position**
LCF’s cash balances (excluding any cash held by the investment managers) were £7.5 million (2024: £8.5 million), a decrease of 12%. Cash held by LCF mainly represents restricted funds held for the purposes of grant making and, of this balance, £6.1 million represents restricted and endowment funds (2024: £7.5 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 £730k net general reserves (2024: £830k), £1.4 million is a cash balance representing unrestricted funds (2024: £1 million) and net liabilities of £715k (2024: £225k). 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 grant making 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-of- living crisis. Their commitment to sharing decision- making and outcomes on these important funds continues to be a blueprint for future pooled funds and demonstrates what is possible when donors collaborate.
During 24/25, LCF’s funding sources included:
**----- Start of picture text -----**
Funding Source 2025 2024 2023
Corporates 13% 20% 20%
Local public authorities 50% 52% 31%
Trusts and foundations 27% 25% 41%
Individuals 10% 2% 5%
National public authorities – – 5%
**----- End of picture text -----**
## **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 2024/25 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 £0.7 million at year-end remain within our target range of five to nine 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:
- **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.
- **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.
## **Reserves**
The total value of funds held at 31 March 2025 was £30 million (2024: £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 2025 stood at £23 million (2024: £24 million). The decrease of £1 million is due to investment market losses during the year.
**Restricted reserves** comprise funds available for expenditure in accordance with the donors’ strategies for giving. Donations are typically spent over one to two-year periods, however, LCF encourages its donors to open multi-year funds to support the ongoing resilience of charitable organisations, which in some cases leads to the build-up of restricted reserves. Restricted reserves, as of 31 March 2025 were £7 million (2024: £7.5 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
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**The London Community Foundation**
## **Reserves (continued)**
available to the Trustees for any of the Charity’s purposes. The general reserves held at 31 March 2025 were £0.7 million (2024: £0.8 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.
The policy was reviewed during 2022/23. The outcome was a new reserves policy based on a range of five to nine months of expenditure (£0.6 – £1.1 million) rather than a fixed amount and 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 £0.7 million are within the range stated in the reserves policy and represents six months of average unrestricted expenditure.
## **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 date from which the Trust for Investment (the value of the capital donated to the Pedlar’s Acre Trust) is referenced is 31st March 2004, at which date the fund was valued at £1,836,806.
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 beneficiaries will not be prejudiced when compared to the benefit to current beneficiaries.
## **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 2025 the percentage used was 3.5% (2024: 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% (2024: 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.
For permanent endowments where a total return approach is agreed, all income and gains, net of losses, are allocated to a pool, called Unallocated Total Return (“UTR”). LCF’s policy is to assess the sum required to maintain the value of the Trust for Investment, and to allow to be allocated to Trust for Allocation (to be used for expenses and grantmaking) the balance of the UTR. In September 2025 Sonnet Impact reported on the review of the status of, and application of this policy to, the Pedlar’s Acre Trust, being the only Endowment in this category. On the basis of that advice LCF has changed its means of evaluating how much funding needs to be retained in UTR to maintain the value of the Trust for Investment, basing the new calculation on the uplift, year on year, in the UK Consumer Price Index. This is used because it reflects the types of expenditure commonly being funded by grants from this endowment. The unapplied total return on the Pedlar’s Acre endowment fund at the end of the year is £1.0 million. Following this exercise there is a shortfall in the UTR required to maintain the value of the Trust for Investment of £420,120. This sum is planned to be recouped over a period not exceeding ten years, which should allow grant funding to current beneficiary organisations to continue broadly at recent levels whilst that happens.
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## **The London Community Foundation**
## **Investment policy and management**
LCF invests to support its charitable purposes and to secure the organisation’s long-term financial sustainability. The aim is to provide a reliable annual contribution to grant-making while protecting and growing the real value of our funds for future generations.
LCF’s assets are currently invested in the COIF Charities Investment Fund, managed by CCLA. The Fund’s long-term objective is to deliver a total return of UK CPI inflation plus 5% per annum, before fees and expenses. This is intended to grow the real value of invested capital while providing sustainable income for charitable spending.
The Trustees review the Investment Policy each year in line with Charity Commission guidance. They exercise
regular oversight of the investment manager to ensure the Fund is delivering consistent returns within an appropriate level of risk, in line with LCF’s objectives.
## **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
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 £23 million (2024: £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 COIF Investment Fund has the objectives of:
- Achieving a total return (capital and income) of inflation +5% as an annual average over the life of the business cycle
- From the total return achieved, providing a reliable, sustainable and growing income distribution
- Managing the portfolio in line with an ethical policy which protects your reputational risk
**----- Start of picture text -----**
||||||
|---|---|---|---|---|
|Annualised|
|returns % as|
|at 31 March|
|2025|1 year|3 years|5 years|10 years|
|COIF Charities|-1.98|2.90|8.62|7.75|
|Investment Fund|
|(net)|
|ARC Steady|2.71|2.54|7.28|4.80|
|Growth Charity|
|Index (peer|
|group, net)|
|Comparator|4.06|5.28|9.90|7.03|
|benchmark|
|CPI plus|6.63|9.24|8.68|7.19|
|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 long- term 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 while 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.
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**The London Community Foundation**
## **Principal risks and uncertainties**
## **Risk management**
LCF has a risk management policy, which has been designed to identify and analyse key strategic and operational risks facing the Charity and, where they are at unacceptable levels, to take steps to mitigate the risks.
We define key strategic and operational risks as those that, without effective or appropriate mitigation, are highly likely to occur and would have a negative impact on the Charity’s ability to fulfil its purpose of convening donors to invest in charitable organisations working to overcome the issues affecting London.
## **Risk appetite**
Risk appetite is the amount of risk that LCF is willing to accept in relation to key drivers of the
organisation. As a charity funded through voluntary donations, we seek to diversify our income streams and we are therefore open in this regard. This approach enables us to accept additional risks, providing the impact has been evaluated, mitigation measures have been put in place and a regular robust monitoring process is established. This approach to reviewing risk enables us to adopt appropriate behaviours, decisions, and controls in line with our values and strategic plan.
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.
## **Roles and responsibilities for managing risk**
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||||
|---|---|---|
|Role|Responsibility|
|Board of Trustees|·|Leadership and control of the Charity|
|·|Set mandate and commitment for risk management and appetite|
|·|Lead risk management culture|
|·|Be aware of the risk to the reputation of LCF from activities that they may undertake|
|elsewhere|
|·|Seek assurance from the Finance, Risk and 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 and Resources|·|Monitor the effectiveness of LCF’s risk management procedures via the ongoing review of the|
|and Development,|system of internal control. This includes receiving risk reports from the Development, Impact|
|Impact and Influence Sub|and Influence Sub-Committee for review, recommendation, or decision as per the Committees’|
|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|
|·|
|Oversee management of safeguarding, financial and organisational risk through grant|
|making to ensure risks are covered and funds have maximum impact for our grantees and|
|donors|
|Senior Management Team|·|Identify, analyse and evaluate risks|
|·|Own risk management strategies|
|·|Oversee incident response and crisis management|
|·|Drive for continuous improvement in risk management|
|Director of Finance|·|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|
|Outsourced IT provider|·|Risk identification, ownership and control: maintain an effective risk identification and|
|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|
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**Annual report and financial statements**
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Trustees’
report
a
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## **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.
The principal risks faced by the Charity and the mitigations are as follows:
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||||
|---|---|---|
|Risk|Mitigation|
|Financial stability|·|We monitor our actual and forecasts against the financial plans continuously|
|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 ensures that spending is aligned with available|
|resources and to avoid any unnecessary strain on the Charity’s finances|
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**The London Community Foundation**
## **Principal risks and uncertainties (continued)**
**----- Start of picture text -----**
||||
|---|---|---|
|Workplace culture and leadership|·|We recognise staff through team meetings and through performance reviews|
|Failure to provide a safe and respectful|on organisational values and behaviours that reflect EDI|
|workplace would be detrimental to the|·|People engagement survey and pulse survey’s launched every 6 months to get|
|wellbeing of our staff and volunteers.|anonymous feedback on employee engagement.|
|Failure to attract, engage and retain the|·|We have reviewed and rolled out an inclusive performance evaluation process|
|best staff, impacts our ability to achieve|for all staff. All staff have clear personal objectives, which help contribute to|
|our charitable objectives.|our vision and mission|
|·|We recently updated our recruitment policy and procedures with an EDI lens|
|to ensure we can attract individuals from marginalised or under-represented|
|groups within the LCF staff team|
|·|
|During 2024/25 we enabled internal first recruitment opportunities, 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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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 · We undertake due diligence checks on grant making activities at pace – LCF’s reputation relies on the trust · Monthly meeting of Safeguarding group, and monthly reporting meeting with bestowed upon the Charity by its donors trustee safeguarding lead. Priorities include review of practice, training and and partners. review of safeguarding in our grant making.
Data and cyber security & GDPR · We have mandatory training in place on data protection and information There are risks if the organisation does not security to ensure the safe handling of data and compliance with regulations. update its systems, processes, and public We have clear processes in place to manage incidents · statements to reflect new requirements. We have the Cyber Essentials certification Breach could lead to significant damage to · We regularly review our controls, team awareness and training, and Board our reputation with donors, beneficiaries, oversight and the public · A Technical audit was undertaken to review systems and processes to identify weaknesses and to recommend actions to tighten guidance and controls.
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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 an average of 21 full-time equivalent staff during 2025 (2024: 19).
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 and Impact
· Chief Operating Officer
## **Our approach to pay**
· Director of Development and Communications
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 plus an additional three days over Christmas, flexible working, volunteer and staff well-being days and employee assistance scheme reflect this.
The total benefits of the employed SMT, including employer pension contributions, was £361k (2024: £358k).
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 2025 (2024: 0).
## **Pay ratio**
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.
The ratio of our highest salary rate to our median salary during 2025 was 2.92:1 (2024: 2.29:1).
## **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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**Annual report and financial statements**
**Trustees’ report**
**The London Community Foundation**
## **Reporting on our people**
demonstrating a strong sense of loyalty and commitment among staff. This remarkable level of pride is a testament to the supportive and inspiring culture that the organisation has cultivated. Although overall engagement was good at 73%, the “intent to stay” was notably low at 47%. This presented an opportunity for LCF to focus on retention strategies and further enhance employee satisfaction. The March 2025 Pulse Survey shows that overall engagement increased to 90%, representing a significant improvement. Employees specifically reported a 22% rise in their intention to stay with the company to 69%, along with a 9% boost in their sense of inspiration.
The London Community Foundation has concluded its three-year Equality, Diversity and Inclusion (EDI) strategy and is currently in the process of evaluating the outcomes in order to determine the next steps. We also embarked on a programme of Employee Engagement Surveys to get feedback from our people, and the results from the survey’s conducted in June 2024 and March 2025, offered substantive insights into staff attitudes and organisational culture.
The June 2024 survey highlighted many positive aspects. Pride in working for LCF scored 100%,
Figure 1: Engagement Item Score – 2024
Figure 2: Engagement Item Score – 2025
**----- Start of picture text -----**
100 100
80 80
60 60
40 40
20 20
0 0
47% 65% 80% 100% 69% 67% 89% 100%
Engagement Score (%) Engagement Score (%)
Intent to Stay Advocacy Inspiration Pride Intent to Stay Advocacy Inspiration Pride
**----- End of picture text -----**
Figure 3: Overall Engagement Score Comparison
**----- Start of picture text -----**
90%
73% 100
80
60
40
20
0
June 2024 March 2025
Engagement Score (%)
**----- End of picture text -----**
Action plans were developed from both surveys focused, on improving communication, systems, and staff development. Initiatives included planning for Salesforce and Sage system upgrades, widespread people policy updates, and training in active listening, and financial literacy. Internal recruitment was also prioritised to address concerns around pay and progression, while salary benchmarking is planned in for the coming financial year. LCF has implemented changes through their People Offer and new career progression pathways. These measures aim to support our employees in their professional development by offering relevant resources and assistance.
development, better communication, and improved recognition; LCF has enhanced its employee engagement to enable all our people to contribute effectively to our strategic goals. These actions are directed towards promoting individual development and satisfaction, as well as strengthening teamwork within the organisation. Moving forward, LCF intends to continue to focus on inclusivity in everything we do, and to continue to improve employee engagement.
We have demonstrated our commitment to continuous improvement with a proactive approach to employee feedback and workplace enhancements. By prioritising transparency, personal
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**Annual report and financial statements**
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**The London Community Foundation**
## **Diversity**
In this sixth 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.
Figure 1: Ethnicity
**----- Start of picture text -----**
Asian or Asian British 16%
Black or Black British 12%
Mixed/Dual Heritage 4%
Other Ethnic Background 4%
White or White British 60%
Prefer not to say 4%
**----- End of picture text -----**
## **Our survey results**
The following graphs are taken from an anonymous diversity survey of Trustees and team members at LCF with 25 out of 26 completing the survey. The responses to the survey are not mandatory, are selfreported 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?
**----- Start of picture text -----**
6+ years 16%
Between 4 and 6 years 16%
Between 2 and 4 years 32%
Between 1 and 2 years 20%
Less than 1 year 12%
Prefer not to say 4%
**----- End of picture text -----**
Figure 3:Which is the highest level of education you hold?
Figure 4: Did you receive free school meals at any point during your school years?
**----- Start of picture text -----**
AS / A Level 8% Undergraduate Degree 44% Yes 4%
HNC / HND / NVQ 4% Other 4% No 80%
Masters Degree 12% Prefer not to say 4% Prefer not to say 16%
Professional qualification*24%
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Figure 5: How do you define your gender identity?
Figure 6: which of the following best describes your sexual orientation?
**----- Start of picture text -----**
Woman 44% Gay 8%
Man 52% Heterosexual 76%
Prefer not to say 4% Prefer not to say 16%
**----- End of picture text -----**
*e.g. Accountancy, CIPS, CIPD
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**Annual report and financial statements**
**Trustees’ report**
## **The London Community Foundation**
Figure 7: Which of the following best describes your religion and/or belief?
Figure 8: Did any of your parent(s) or guardian(s) complete a university degree course or equivalent (e.g. BA, BSc or higher)?
Agnostic 16% Muslim 4% Prefer not Yes 48% Christian 28% Non-religious 36% to say 4% No 44% Hindu 8% Sikh 4% Prefer not to say 8%
Figure 9: What is your age?
**----- Start of picture text -----**
30-34 12% 45-49 24% 60-64 8%
35-39 4% 50-54 16% Prefer not
40-44 16% 55-59 12% to say 8%
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Figure 10: Do you consider yourself disabled?
**----- Start of picture text -----**
Yes 8%
No 88%
Prefer not to say 4%
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**Annual report and financial statements The London Community Foundation** ae
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Trustees’
report
a
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## **Future plans**
Trustees have agreed the following objectives for 2025/26:
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||||
|---|---|---|
|Strategic Objective|In detail|
|Deliver grants effectively|·|Effective grant delivery of awards, based on impact strategy, improve our reporting on|
|and efficiently to support|grant making|
|grassroots organisations|·|Ways of working to improve efficiency and capacity and continuously improve our|
|thrive and survive|Standard Operating Procedures|
|·|Better capacity planning and alignment with Grants and Development teams|
|·|
|Test and learn for more impactful grant making to include insight gathering / co-|
|designed and linked to our impact strategy|
|·|Led by and for: Increased percentage of grants applications to require lived experience|
|at application stage|
|Deliver a sustainable and|·|Deliver total income of £8.9 million|
|surplus budget|·|Enhance endowment proposition and develop a 2030 endowment growth strategy|
|·|Diversify income to deliver a more balanced budget, with a renewed focus on trust|
|transfers and legacy giving|
|·|New marketing acquisition strategy|
|·|Improve pipeline management|
|·|Review service offering by fund and a new approach to portfolio management|
|Consolidate and build the|·|Develop, roll out and embed LCF’s impact strategy|
|foundations for future growth|·|Become more insight-led and learn from our grantees|
|·|Consolidate approach to safeguarding and wider grant making risks|
|·|Develop digital strategy, to include new Salesforce database implementation, upgrade|
|financial software and review approach to AI|
|·|Set up approach to measure customer satisfaction, and gather testimonials as a key part|
|of our communications strategy|
|·|Consolidate and further improve our safeguarding approach|
|Focused, effective and valued|·|Implement new personal development plans|
|team and trustees|·|Improved focus through more active meeting structures|
|·|Improved internal and trustee communications and reporting|
|·|People surveys (supported by half year pulse survey)|
|·|Develop new EDI plan, including key activities and regular training updates|
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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 and 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 2025.
## **Statement of Trustees’ responsibilities**
The Trustees are responsible for keeping adequate accounting records that disclose, with reasonable accuracy at any time, the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees (who are also directors of LCF for the purposes of company law) are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the situation of the Charity and of its income and expenditure for that period.
## **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
## **In preparing these financial statements, the Trustees are required to:**
- Select suitable accounting policies and then apply them consistently
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.
· 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’ 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:
- 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
Russell Prior Concon Chair Ra? 29 September 2025
- Prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Charity will continue in operation
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**Annual report and financial statements**
**The London Community Foundation**
## **Financial Auditor’s statementsreport**
## **Independent auditor’s report to the members of The London Community Foundation Year ended 31 March 2025**
## **Basis for opinion**
## **Opinion**
We have audited the financial statements of The London Community Foundation (the ‘charitable company’) for the year ended 31 March 2025 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 FRC’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with 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 2025, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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.
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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 other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. 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; and
- 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; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **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
**The London Community Foundation**
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;
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**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 to 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.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Stuart McKay BSc FCA DChA (Senior Statutory Auditor)
For and on behalf of MHA, Statutory Auditor London, United Kingdom
## Date: 18/12/2025
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
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**Annual report and financial statements**
**The London Community Foundation**
## **Financial statements**
## **Statement of financial activities for the year to 31 March 2025**
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total Total
funds funds funds 2025 2024
Notes £000 £000 £000 £000 £000
Income and endowments from:
Donations and legacies 2a 538 7,583 - 8121 10,382
Charitable activities 2b 290 - - 290 205
Investments 2c 528 365 24 917 948
Other trading activities 2d - - - - 20
Total income 1,356 7,948 24 9,328 11,555
Raising funds 3a 599 1 - 600 523
Grants programme 3b 1,070 8,572 - 9,642 12,495
Community development 3c 15 27 - 42 82
Total expenditure 1,684 8,600 - 10,284 13,100
Net income / (expenditure) (328) (652) 24 (956) (1,545)
before investment gains
and losses
Net gains / (losses) on investments 9 - - (1,114) (1,114) 2,165
Net income / (expenditure) (328) (652) (1,090) (2,070) 620
Transfers in / (out) between funds 14,15 223 71 (294) - -
Net movement in funds (105) (581) (1,384) (2,070) 620
Total funds brought forward at 832 7,469 23,955 32,256 31,636
1 April
Total funds carried forward 13a 727 6,888 22,571 30,186 32,256
at 31 March
**----- End of picture text -----**
All of the activities of The London Community Foundation derive from continuing operations. There are no recognised gains and losses other than those shown above.
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**The London Community Foundation**
**Financial statements**
## **Balance sheet**
## **as at 31 March 2025**
**----- Start of picture text -----**
2025 2024
Notes £000 £000
Fixed assets
Tangible assets 8 113 53
Investments 9 22,825 24,211
22,938 24,264
Debtors 10 878 1,172
Cash at bank and in hand 7,548 8,549
8,426 9,721
Creditors: amounts falling due within one year 11 (1,178) (1,729)
Net current assets 7,248 7,992
Net assets 30,186 32,256
Expendable endowment funds 14 17,230 18,323
Permanent endowment funds 14 5,341 5,632
22,571 23,955
Revenue funds
Restricted funds 15 6,888 7,469
Unrestricted funds
General funds 727 832
Total funds 30,186 32,256
**----- End of picture text -----**
The financial statements were approved by the board on 29th September 2025
## **Statement of Cashflows**
## **as at 31 March 2025**
**----- Start of picture text -----**
2025 2024
Notes £000 £000
Cash flows (used in) operating activities:
Net cash used in operating activities A (2,125) (4,276)
Interest received 224 222
Investment income received 693 726
Purchase of property, plant and equipment (65) (47)
Purchase of investments (22) (18)
Proceeds from the disposal of investments 294 1,710
Net cash provided by investing activities 1,124 2,593
Receipt of endowment 22 22
Change in cash and cash equivalents in the year (1,001) (1,661)
Cash and cash equivalents at 1 April 2024 B 8,549 10,210
Cash and cash equivalents at 31 March 2025 B 7,548 8,549
Notes to the statement of cash flows for the year ended 31 March 2025
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) (2,070) 598
Adjustments for:
Net losses / (gains) on investments 1,114 (2,165)
Depreciation charge 5 2
Dividends and interest from investments (917) (948)
(Increase) in debtors 294 (775)
(Decrease) / Increase in creditors (551) (988)
Net cash used in operating activities (2,125) (4,276)
B. Analysis of cash and cash equivalents
Cash at bank and in hand 7,548 8,549
7,548 8,549
**----- End of picture text -----**
## 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.
Russell Prior Chair
Company number: 4383269
Veesh Sharma Chair of Finance, Risk & Resources Committee
Charity number: 1091263
62
63
**Annual report and financial statements**
**The London Community Foundation**
## **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 2025 with comparative information in respect to the year ended 31 March 2024.
## **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 Canopi, 82 Tanner Street, London SE13GN
Donations and legacies: These amounts are included in the SOFA in the year that they are receivable.
Income arising from grants and similar contracts is generated 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.
**64**
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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 administering the fund is set against investment income arising in the year.
**The London Community Foundation**
**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 total returns (“UTR”) in the first instance.
Out of the UTR that does not need to be so retained an amount reflecting a reasonable distribution each year is calculated and is transferred to income funds to be applied within the terms of these funds’ governing documents.
Any income funds not disbursed in the financial year are retained as unapplied total return. Should any year experience a negative return such that the total of UTR and the Trust for Investment are less than the sum reasonably required to maintain the value of the endowment, that negative balance will be held within the UTR fund and a set of steps established gradually to recover that position over a period not exceeding ten years.
66
67
**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 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
- The level of UTR required to be retained to maintain for future beneficiaries the real value of any Permanent Endowments to which Total Return Orders apply
## **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:
## **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.
**The London Community Foundation**
## **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**
Cash and cash equivalents include cash-in-hand, cash held in current accounts with UK banks and on deposit with CCLA.
|Leasehold|Over the remaining life|
|---|---|
|improvements|of the lease|
|Offce equipment|Five years – 20%|
|IT equipment|Threeyears – 33.3%|
**68**
69
**Annual report and financial statements**
## **Notes to the financial statements**
## **2. Income**
## **2a Income from donations and legacies**
|Trusts and|Unrestricted
funds
£000
188|Restricted
funds
£000
2,040|Endowment
funds
£000
-|Total
2025
£000
2,228|Unrestricted
funds
£000
85|Restricted
funds
£000
2,477|Endowment
funds
£000
Total
2024
£000
22
2,584|
|---|---|---|---|---|---|---|---|
|foundations||||||||
|Corporations
Local public
authorities
Individuals|69
73
208|1,005
3,826
712|-
-
-|1,074
3,899
920|179
195
73|1,973
5,152
166|-
2,152
-
5,347
-
239|
|National public|-|-|-|-|10|50|-
60|
|authorities||||||||
|Total income|538|7,583|-|8,121|542|9,818|22
10,382|
|from||||||||
|donations and||||||||
|legacies||||||||
**The London Community Foundation**
## **2c Income from investments**
||Unrestricted
funds
£000|Restricted
funds
£000|Endowment
funds
£000|Total
2025
£000|Unrestricted
funds
£000|Restricted
funds
£000|Endowment
funds
£000|Total
2024
£000|
|---|---|---|---|---|---|---|---|---|
|Interest receivable
Investment income|67
461|157
208|-
24|224
693|18
449|204
249|-
28|222
726|
|Total|528|365|24|917|467|453|28|948|
|income from|||||||||
|investments|||||||||
## **2d Income from other trading activities**
||Unrestricted
funds
£000|Total
2025
£000
Total
2024
£000|
|---|---|---|
|Rental income|-|0
20|
|Total income from other tradingactivities|-|0
20|
## **2b Income from charitable activities**
||Unrestricted
funds
£000|Restricted
funds
£000|Total
2025
£000|Unrestricted
funds
£000|Restricted
funds
£000|Total
2024
£000|
|---|---|---|---|---|---|---|
|Trusts and foundations
Localpublic authorities|10
280|-
-|10
280|-
205|-
-|-
205|
|Total income from|290|-|290|205|-|205|
|charitable activities|||||||
70
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**Annual report and financial statements**
## **Notes to the financial statements**
## **3 Expenditure**
## **3a Expenditure on raising funds**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2025 funds funds 2024
Notes £000 £000 £000 £000 £000 £000
Investment management costs
Staff costs 6 10 - 10 9 - 9
Allocated support costs 4 5 - 5 5 - 5
Cost of raising donations and
legacies
Staff costs 6 339 - 339 305 - 305
Other direct costs 52 1 53 33 1 34
Allocated support costs 4 185 - 185 162 - 162
Cost of generating rental
income
Staff costs 6 5 - 5 5 - 5
Allocated support costs 4 3 - 3 3 - 3
Total expenditure 599 1 600 522 1 523
on raising funds
**----- End of picture text -----**
## **3b Expenditure on charitable activities: grant programme**
**The London Community Foundation**
## **3c Expenditure on charitable activities: community development**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2025 funds funds 2024
Notes £000 £000 £000 £000 £000 £000
Other direct costs 15 27 42 32 50 82
Total expenditure 15 27 42 32 50 82
on charitable
activities: community
development
**----- End of picture text -----**
## **4 Analysis of support costs**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Total
funds funds 2025 funds 2024
Notes £000 £000 £000 £000 £000
Support staff costs 6 194 - 194 176 176
Professional fees 40 14 54 39 39
Premises costs 71 - 71 67 67
Office and other costs 17 - 17 15 15
Depreciation 5 - 5 3 3
IT costs 92 - 92 70 70
Governance costs 5 110 - 110 107 107
Total support costs 529 14 543 477 477
**----- End of picture text -----**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2025 funds funds 2024
Notes £000 £000 £000 £000 £000 £000
Grants payable - 8,523 8,523 - 11,496 11,496
Staff costs 6 641 - 641 576 - 576
Other direct costs 78 49 127 34 82 116
Allocated support costs 4 351 - 351 307 - 307
Total expenditure 1,070 8,572 9,642 917 11,578 12,495
on charitable activities:
grant programme
**----- End of picture text -----**
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**Annual report and financial statements**
**The London Community Foundation**
## **Notes to the financial statements**
## **5 Governance costs**
**----- Start of picture text -----**
Total Total
2025 2024
Notes £000 £000
Staff costs 6 78 70
External auditors’ remuneration - statutory audit 20 22
External auditors’ remuneration - other 6 -
Legal and professional fees 6 15
Total governance costs 110 107
**----- End of picture text -----**
## **6 Staff costs and remuneration of key management personnel**
**----- Start of picture text -----**
Total Total
2025 2024
£000 £000
Salaries and wages 984 880
Social security costs 99 93
Employer pension contributions 62 54
Temporary staff costs 61 61
Total staff costs 1,206 1,088
**----- End of picture text -----**
Included in salaries and wages above are termination benefits of £42k (2024: £Nil) relating to one employee (2024: nil employees). These benefits were paid in full during the year and represent £18k of contractual benefits and £24k of non-contractual benefits. The non-contractual benefits represent an exgratia payment which the Trustees considered to be within the best interests of the Charity.
The average monthly number of employees during the year was:
## **6 Staff costs and remuneration of key management personnel (continued)**
|
**personnel (continued)**|||
|---|---|---|
||2025|2024|
|The number of staff whose emoluments are greater than £60,000 are:
£60,001 – £70,000
£70,000 - £80,000
£80,001 – £90,000
£90,001 - £100,000
£100,000 - £110,000|Number
1
1
-
-
1|Number
1
-
1
1
-|
|Total|3|3|
Emoluments is taken to mean actual payments due in the year for hours worked and is therefore not a full-time equivalent rate but an actual rate reflecting part time hours as well as employment for less than a full year.
The employees whose salary banding is disclosed above also received employer pension contributions of £18,806 (2024: £12,909).
23 employees participated in the Charity’s stakeholder pension scheme (2024: 24), 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 Development and Communications.
Total key management personnel remuneration in the year, inclusive of employer pension and national insurance contributions, was £360,995 (2024: £357,811)
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 2025 (2024:0).
**----- Start of picture text -----**
2025 2024 2025 2024
Employees FTE FTE Number Number
Grant delivery and community development 13 11 15 12
Fundraising 4 5 5 5
Support 4 3 7 3
Total 21 19 27 20
**----- End of picture text -----**
74
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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 -----**
2025 2024
Notes £000 £000
Staff costs 6 1,206 1,088
Auditors’ remuneration - statutory audit 20 22
Auditors’ remuneration - other 6 -
Depreciation 5 2
Rentals under operating leases: property - 42
**----- End of picture text -----**
## **8 Tangible fixed assets**
**----- Start of picture text -----**
Furniture,
Assets under IT, office Total
construction equipment 2025
£000 £000 £000
**----- End of picture text -----**
|As at 1 April 2024|49|45|94|
|---|---|---|---|
|Additions|53|12|65|
|Disposals|(7)|(29)|(36)|
|At 31 March 2025|95|28|123|
|As at 1 April 2024|-|41|41|
|Charge for the year|-|10|10|
|Disposals|-|(41)|(41)|
|At 31 March 2025|-|10|10|
|Net book value at 31 March 2025|95|18|113|
|Net book value at 31 March 2024|49|4|53|
Assets under construction are an upgrade to the Customer Relationship Management system and were brought into use during the autumn of 2025.
**The London Community Foundation**
## **9 Fixed asset investments**
## **9a Fixed asset investments**
**----- Start of picture text -----**
2025 2024
£000 £000
Market value of listed investments at 1 April 24,211 23,738
Additions at cost 22 18
Disposal at carrying value (294) (1,710)
Gains / (losses) on investments (1,114) 2,165
Market value of listed investments at 31 March 22,825 24,211
**----- End of picture text -----**
## **9b Historical cost**
**----- Start of picture text -----**
2025 2024
£000 £000
Market value at 31 March 22,825 24,211
Accumulated gains brought forward (14,354) (12,167)
Net (gains) / losses for the year 1,114 (2,165)
Historical cost at 31 March 9,585 9,879
**----- End of picture text -----**
## **9c Investments disposition**
**----- Start of picture text -----**
2025 2024
£000 £000
Common Investment Funds: COIF Charities Investment Fund 22,715 24,101
Common Investment Funds: COIF Ethical Investment Fund 110 110
Total market value of listed investments at 31 March 22,825 24,211
**----- End of picture text -----**
## **10 Debtors**
**----- Start of picture text -----**
2025 2024
£000 £000
Trade debtors 832 1,131
Prepayments 41 37
Accrued income 5 4
Total debtors at 31 March 878 1,172
**----- End of picture text -----**
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**Annual report and financial statements**
## **Notes to the financial statements**
## **11 Creditors: amounts falling due within one year**
**----- Start of picture text -----**
Total Total
2025 2024
£000 £000
Grants payable 237 1,301
Other creditors 824 311
Accruals 37 39
Deferred income 80 78
Total creditors at 31 March 1,178 1,729
**----- End of picture text -----**
**The London Community Foundation**
## **12 Obligations under operating leases**
At 31 March 2025, the Charity had total future minimum lease payments under non-cancellable operating leases for office rent as follows:
||2025
£000|2024
£000|
|---|---|---|
|Within oneyear|-|-|
|Total obligations under operatingleases|-|-|
## **13a Analysis of net assets between funds**
Fund balances at 31 March
## **11a Reconciliation of grants payable**
**----- Start of picture text -----**
Total Total
2025 2024
Notes £000 £000
Balance brought forward 1 April 1,301 2,502
Grants awarded during the year 3b 8,523 11,496
Grants paid out during the year (9,587) (12,697)
Grant creditors at 31 March 237 1,301
**----- End of picture text -----**
## **11b Reconciliation of deferred income**
**----- Start of picture text -----**
Total Total
2025 2024
£000 £000
Balance brought forward at 1 April 78 -
Amounts released to income (78) -
Cash received to be deferred 80 78
Balance carried forward at 31 March 80 78
**----- End of picture text -----**
Deferred income relates to funding where the agreement specifies some of the income is in relation to a future period.
**----- Start of picture text -----**
Unrestricted Restricted Endowment Total Total
funds funds funds 2025 2024
£000 £000 £000 £000 £000
Represented by:
Tangible fixed assets 113 - - 113 53
Fixed asset investments - 254 22,571 22,825 24,211
Current assets – cash 1,442 6,106 - 7,548 8,549
Current assets – debtors 113 765 - 878 1,172
-
Creditors: amounts falling (941) (237) (1,178) (1,729)
due within one year
Total funds 727 6,888 22,571 30,186 32,256
**----- End of picture text -----**
## **13b Analysis of net assets between funds (prior year)**
Fund balances at 31 March 2024
**----- Start of picture text -----**
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
**----- End of picture text -----**
## **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 £254k and will be drawn down once the spending plans are finalised by the fund holder.
78
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**Annual report and financial statements**
**The London Community Foundation**
## **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.
**----- Start of picture text -----**
Balance
Balance at Investment at 31
1 April Transfers gain / March
2024 Income Expenditure in/(out) (loss) 2025
£000 £000 £000 £000 £000 £000
Bromley Community Fund 297 – – - (14) 283
Croydon Community Fund 442 – – (22) (20) 400
Deutsche Bank Fund 760 – – - (36) 724
Evening Standard Dispossessed 2,531 – – - (119) 2,412
Fund
LCF Older People’s Fund 368 – – - (17) 351
(Formerly Gordon Family Fund)
Lambeth Community Fund 296 – – - (14) 282
LCF GG Endowment Fund 430 – – (155) (14) 261
Victoria Foundation Fund 427 – – - (21) 406
Westminster Fund 496 – – (12) (24) 460
Other Grassroots Grants funds 1.877 – – (33) (86) 1,758
Total Grassroots Grants 7,924 – – (222) (365) 7,337
funds (expendable)
Barnet Fund 404 – – - (19) 385
LCF Older People’s CF 1,090 – – (51) 1,039
Endowment Fund (Formerly
Gordon Family CF Endowment
Fund)
Cadogan Kensington and 336 – – - (16) 320
Chelsea Foundation CF
Endowment Fund Grant
Land Securities Westminster 294 – – - (14) 280
Fund
Living Cities Community Fund 1,173 – – - (55) 1,118
The London Leg Up Fund 430 – – - (20) 410
Other Community First funds 2,906 – – (8) (135) 2,763
Total Community First funds 6,633 – – (8) (310) 6,315
(expendable)
Grassroots
Community First (Expendable)
**----- End of picture text -----**
## **14 Endowment funds (continued)**
**----- Start of picture text -----**
Balance
Balance at Investment at 31
1 April Transfers gain / March
2024 Income Expenditure in/(out) (loss) 2025
£000 £000 £000 £000 £000 £000
Creswell Trust 80 - - - (4) 76
Lambeth Endowment Fund 1,570 - - - (73) 1,497
Lewisham Fund 448 - - - (23) 425
Portuguese Fund 823 - - - (38) 785
South London Opportunity 212 - - (10) (10) 192
Fund
Wandsworth Community Fund 633 - - - (30) 603
- -
Total other expendable 3,766 (10) (178) 3,578
endowment funds
Total expendable 18,323 – – (240) (853) 17,230
endowment
Barnet Endowment 95 - - - (4) 91
Beaufoy Trust 1,868 - - - (87) 1,781
Pedlar’s Acre Trust 3,039 24 - (54) (141) 2,868
Richmond Civic Trust 630 - - - (29) 601
Total permanent 5,632 24 - (54) (261) 5,341
endowment
Total endowment funds 23,955 24 - (294) (1,114) 22,571
Expendable
Permanent
**----- End of picture text -----**
## **The purposes and restrictions of these funds are summarised below:**
**----- Start of picture text -----**
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
LCF Older People’s Fund To support older people who are experiencing poverty and isolation
Lambeth Community fund To support the local community in Lambeth
LCF 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
LCF Older People’s 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
**----- End of picture text -----**
80
81
**Annual report and financial statements**
**The London Community Foundation**
## **Notes to the financial statements**
## **14 Endowment funds (continued)**
**----- Start of picture text -----**
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 2025 can be seen in Note 15. Transfers out of expendable endowment funds to restricted funds represent a release of the capital. 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 Unapplied Total Return 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.
As part of the Foundation’s ongoing monitoring of its funds, the Trustees note that:
- The LCF GG Endowment Fund has historically been made up of a mixture of expendable and permanently endowed funds. During the year, the Trustees agreed to expend the entirety of the expendable portion of the Fund. The remaining permanently endowed element will be reclassified as such in the following accounting period.
- The LCF Older People’s Fund and the LCF Older People’s CF Endowment Fund have, since an agreement with a now former funder effective from 31 March 2023, represented permanent endowment funds. These will be reclassified as such in the following accounting period, though it is noted that the capital portion of these funds has not been expended since agreement.
## **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 closing balances represent 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)**
**----- Start of picture text -----**
Balance
Balance at Transfers at 31
1 April in / Investment March
2024 Income Expenditure (out) gain/(loss) 2025
£000 £000 £000 £000 £000 £000
Evening Standard Grassroots Grants 542 33 (307) 3 - 271
Dispossessed Appeal Fund
Pedlar’s Acre Endowment Fund 344 9 - (293) - 60
Sue Estermann Fund 163 5 - - - 168
Barnet NW CF Endowment Fund 92 6 - - - 98
Lewisham Endowment Fund 80 6 - - - 86
LCF GG Endowment Fund 70 7 (60) 140 - 157
Richmond Civic Trust Permanent 63 9 - - - 72
Endowment
Deutsche Bank Older Peoples CF 57 4 (31) - - 30
Endowment Fund
Evening Standard Croydon Dispossessed 51 3 (33) (17) - 4
Appeal Endowment Fund
Beaufoy Trust Endowment Fund Permanent 41 19 - - - 60
Endowment
Lambeth CF Endowment Grants 39 15 - - - 54
Wandsworth Community Endowment Fund 40 6 (46) - - -
Croydon Community GG Endowment 30 4 (29) 22 - 27
Fund
Victoria Foundation Fund 29 4 (5) - - 28
Gordon Family CF Endowment Fund 26 10 - - - 36
London Leg Up Fund (Bragg) CF 25 13 (18) - - 20
Endowment Fund
LCF Portuguese Endowment Fund 22 8 (15) - - 15
Salway CF Endowment Fund 20 13 (18) (5) - 10
Brent Harrow Enfield CF Fund 18 1 - - - 19
Living Cities Community CF Endowment 17 11 - - - 28
Fund
Cadogan Kensington and Chelsea 14 3 (14) - - 3
Foundation CF Endowment Fund
Bromley Community Fund 14 3 - (16) - 1
Hemlata and Kantilal Tanna Family 11 2 (2) - - 11
CF Fund
Westminster GG Endowment Fund 11 5 - 12 - 28
Deutsche Bank GG Endowment Fund 11 7 - - - 18
Peckham GG Endowment Fund 10 2 - 23 - 35
Gordon Family GG Endowment Fund 10 4 - - - 14
Other endowment funds (revenue element) 133 47 (33) 21 - 168
balances <£10k
Total endowment funds (revenue 1,983 259 (611) (110) - 1,520
element)
**----- End of picture text -----**
83
82
**Annual report and financial statements**
**The London Community Foundation**
## **Notes to the financial statements**
## **15b Restricted funds (flow through grant-making funds)**
**----- Start of picture text -----**
Balance
Balance at Transfers at 31
1 April in / Investment March
2024 Income Expenditure (out) gain/(loss) 2025
£000 £000 £000 £000 £000 £000
MOPAC VAWG Grassroots Fund 23-25 776 1,471 (1,394) - - 853
The Stanhope Foundation Fund 546 392 (449) - - 489
Adobe UK Community Fund 449 1 (217) - - 233
GLA 82072 MoJ DA SV 22-25 432 1,486 (1,516) - - 402
Wimbledon Foundation Community Fund 417 664 (493) (13) - 575
Hackney Foodbank Community Fund 412 3 (337) (7) - 71
The CJ Fund 308 8 - (57) - 259
Youth Futures Fund 271 181 (200) 55 - 307
Cockayne Fund 268 8 (238) (8) - 30
Women’s Fund for London 234 7 (70) 8 - 179
Peabody Community Fund 207 2 (123) (84) - 2
LCF Older People’s Fund 129 3 (64) - - 68
Living Communities Fund 123 76 (151) - - 48
Elephant & Castle Community Fund 94 76 (84) 5 - 91
JPMorganChase Fund 89 2 (35) (56) - -
Greenwich Peninsula Community Fund 78 36 (100) (12) - 2
Deutsche Bank small grants Fund 66 10 - - - 76
Merton & Sutton Health & Wellbeing fund 66 2 - - - 68
Lambeth Grants Funds (combined) Funds 59 5 (239) 347 - 172
Lambeth Wellbeing Fund 52 63 (48) - - 67
Wandsworth Combined Charity Fund 36 - (32) - - 4
The Young People's Fund 33 - (10) (23) - -
Grenfell Children & Young People fund 33 1 - - - 34
HDR United Kingdom Fund 33 36 (36) (6) - 27
Bromley Community Fund (combined) 28 1 - 21 - 50
Covent Garden Market Authority Fund 25 1 - - - 26
Excluded Initiative Fund 21 1 (17) - - 5
Broadgate Community Fund 20 116 (93) (20) - 23
Simon & Lynn Dodds Fund 19 39 (40) - - 18
Reel Fund 18 71 (88) (6) - (5)
Thamesmead Community Fund 18 (12) (79) 108 - 35
Lane Fund (combined) 16 - - - - 16
Muggin’s Funds (combined) 15 - - - - 15
North London Philanthropic Trust Fund 11 - - - - 11
Land Securities Westminster Fund 11 - - - - 11
Land Securities Fund 11 - - - - 11
Other grant making funds (flow through) - 62 2,939 (1,837) (71) - 1,093
balances <£10k
5,486 7,689 7,989 182 - 5,368
Total restricted funds 7,469 7,948 (8,601) 72 - 6,888
**----- 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
JPMorganChase Fund To support pathways to economic opportunities for ethnic minority
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
LCF Older People’s Fund 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
Adobe UK Community Fund To support disability charities and disability organisations with two-year
funding, focusing on digital and creative inclusion
Hackney Foodbank Community Fund To support organisations responding to the immediate impacts of food
insecurity in Hackney, particularly communities hardest hit by the cost-of-
living crisis
**----- End of picture text -----**
£5k was received in October 2025 to correct the deficit position for Reel Fund.
84
85
**Annual report and financial statements**
**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 and 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
2023
£000|Income
£000|Expenditure
£000|Transfers
in/(out)
£000|Investment
gain /
(loss)
£000|Balance
at 31
March
2024
£000|
|---|---|---|---|---|---|---|---|
||Bromley Community Fund|276|-|-|(5)|26|297|
|Grassroots|Croydon Community Fund
Deutsche Bank Fund
Evening Standard Dispossessed
Fund
LCF Older People’s Fund
Lambeth Community Fund
LCF GG Endowment Fund
Victoria Foundation Fund
Westminster Fund
Other Grassroots Grants funds|438
696
2,775
337
175
452
414
452
1,847|-
-
-
-
-
-
-
-
-|-
-
-
-
-
-
-
-
-|(35)
-
(500)
-
96
(60)
(24)
-
(132)|39
64
256
31
25
38
37
44
162|442
760
2,531
368
296
430
427
496
1.877|
||Total Grassroots Grants
funds(expendable)|7,862|-|-|(660)|722|7,924|
|Community First|Barnet Fund
LCF Older People’s CF
Endowment Fund
Cadogan Kensington and
Chelsea Foundation CF
Endowment Fund Grant
Land Securities Westminster
Fund
Living Cities Community Fund
The London Leg Up Fund
Other CommunityFirst funds
Total Community First funds|376
998
288
269
1,074
394
2,678
6,077|-
-
22
-
-
-
-
22|-
-
-
-
-
-
-
-|(6)
-
-
-
-
-
(17)
(23)|34
92
26
25
99
36
245
557|404
1,090
336
294
1,173
430
2,906
6,633|
||(expendable)|||||||
86
87
**Annual report and financial statements**
**The London Community Foundation**
## **Notes to the financial statements**
## **16 Endowment funds (prior year comparatives) (continued)**
|||Balance at
1 April
2023
£000|Income
£000|Expenditure
£000|Transfers
in/(out)
£000|Investment
gain /
(loss)
£000|Balance
at 31
March
2024
£000|
|---|---|---|---|---|---|---|---|
||Creswell Trust|73|-|-|-|7|80|
|Expendable|Lambeth Endowment Fund
Lewisham Fund
Portuguese Fund
South London Opportunity
Fund
Wandsworth CommunityFund|1,438
407
754
193
581|-
-
-
-
-|-
-
-
-
-|-
-
-
-
(2)|132
41
69
19
54|1,570
448
823
212
633|
||Total other expendable
endowment funds|3,446|-|-|(2)|322|3,766|
|Total expendable
endowment
17,385
-
-
(685)
1,601
18,301
Barnet Endowment
87
-
-
-
8
95
Beaufoy Trust
1,711
-
-
-
157
1,868
Pedlar's Acre Trust unapplied
total return
979
28
-
(67)
262
1,202
Pedlar’s Acre Trust
1,837
-
-
-
-
1,837
Permanent
~~ee~~||||||||
||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|
Balance Balance at Transfers at 31 1 April in / Investment March 2023 Income Expenditure (out) gain/(loss) 2024 £000 £000 £000 £000 £000 £000 Safe Accommodation PIE 750 7 (750) - - 7 JP Morgan 714 210 (835) - - 89 Stanhope Foundation 538 537 (530) - - 545 Peabody Community Fund 491 12 (296) - - 207 Wimbledon Foundation Community Fund 402 644 (629) - - 417 GLA 82072 MoJ DA SV 22-25 390 1,506 (1,464) - - 432 MOPAC VAWG 2 - 1,549 (773) - - 776 Hackney Foodbank - 412 - - - 412 Community Fund Adobe Community Fund - 449 - - - 449 The CJ Fund 349 9 - (50) - 308 Cockayne Fund 345 1,754 (1,805) (27) - 267 Skill Up Step Up 338 450 (465) - - 323 Employability Fund Lambeth Grants Funds 303 6 (250) - - 59 (Combined) Youth Futures Fund 238 116 (216) 133 - 271 89 Lambeth Wellbeing Fund 195 52 (186) (9) - 52
88
**Annual report and financial statements**
**Notes to the financial statements**
**The London Community Foundation**
## **17a Restricted funds - endowment funds (revenue element) (prior year comparatives)**
**----- Start of picture text -----**
Balance Balance
at 1 Transfers Investment at 31
April in / gain / March
2023 Income Expenditure (out) (loss) 2024
£000 £000 £000 £000 £000 £000
Evening Standard Grassroots Grants Dispossessed 250 36 (250) 506 - 542
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
LCF GG Endowment Fund 9 6 - 54 1 70
Richmond Civic Trust Permanent Endowment 50 13 - - - 63
Deutsche Bank Older Peoples CF Endowment Fund 53 34 (30) - - 57
Evening Standard Croydon Dispossessed Appeal 47 4 - - - 51
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 Fund 15 5 (15) 23 2 30
Victoria Foundation Fund 13 5 (13) 24 - 29
LCF Older People’s CF Endowment Fund 124 11 - (109) - 26
London Leg Up Fund (Bragg) CF Endowment Fund 27 13 (15) - - 25
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 Fund 42 17 - (42) - 17
Cadogan Kensington and Chelsea Foundation CF 11 3 - - - 14
Endowment Fund
Bromley Community Fund 4 3 1 5 1 14
Hemlata and Kantilal Tanna Family CF Fund 9 2 (4) 4 - 11
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
LCF Older People’s GG Endowment Fund 5 4 - - 1 10
Other endowment funds (revenue 138 43 (57) 4 5 133
element) balances <£10k
Total endowment funds 1,474 307 (449) 593 58 1,983
(revenue element)
**----- End of picture text -----**
## **17b Restricted funds - flow through grant making funds (prior year comparatives)**
**----- Start of picture text -----**
Balance
Balance at Transfers Investment at 31
1 April in / gain / March
2023 Income Expenditure (out) (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 UK 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
LCF Older People’s (combined) Fund 125 4 (79) 79 - 129
Living Communities Fund 170 113 (190) 30 - 123
Elephant & Castle Community Fund 80 79 (65) - - 94
JPMorganChase 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
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 -----**
90
91
**Annual report and financial statements**
**The London Community Foundation**
## **Notes to the financial statements**
## **17b Restricted funds - flow through grant making funds (prior year comparatives) (continued)**
|Note 17b Grant making funds (flow
through)|Balance at
1 April
2023
£000|Income
£000|Expenditure
£000|Transfers
in /
(out)
£000|Investment
gain /
(loss)
£000|Balance
at 31
March
2024
£000|
|---|---|---|---|---|---|---|
|Muggin’s Funds (combined)|14|-|-|1|-|15|
|North London Philanthropic Trust Fund
Land Securities Westminster Fund
Land Securities Fund|80
41
11|1
-
-|-
(30)
-|(70)
-
-|-
-
-|11
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|
## **18a 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 number 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 2025 are shown below:
||||Notes
The London
Community
Foundation
£000|Pedlar’s
Acre
Trust
£000|Total
£000|
|---|---|---|---|---|---|
||Assets of each charity at 31 March 2025|Assets of each charity at 31 March 2025||||
|Opening balance at 1 April 2024
Income
Expenditure
Application of income funds
(Loss)/Gain on investments
Net movement in funds
~~SS~~||Opening balance at 1 April 2024|29,217
9,304
(10,284)
14
54
(973)
(1,899)|3,039
24
-
(54)
(141)
(171)|32,256
9,328
(10,284)
-
(1,114)
(2,070)|
||Closingbalance at 31 March 2025||27,318|2,868|30,186|
||Tangible fixed assets
Fixed asset investments
Debtors
Cash at bank and in hand
Creditors: amounts fallingdue within oneyear||113
19,957
878
7,548
(1,178)|-
2,868
-
-
-|113
22,825
878
7,548
(1,178)|
||Net assets at 31 March 2025||27,318|2,868|30,186|
||Funds of the charities
Expendable endowment funds
Permanent endowment funds
Restricted funds||17,230
2,473
6,888|-
2,868
-|17,230
5,341
6,888|
|Unrestricted funds
727
-
727
~~Nee~~||||||
||Closingbalance at 31 March 2025||27,318|2,868|30,186|
93
92
**Annual report and financial statements**
**Notes to the financial statements**
**The London Community Foundation**
## **18b 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.
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.
**----- Start of picture text -----**
Trust for Unapplied Total
Investment Total Return Endowment
£000 £000 £000
Opening value at 1 April 2024
Gift component of the permanent endowment 1,837 1,837
Unapplied total return 1,202 1,202
Total 1,837 1,202 3,039
Investment return - dividends and interest 24 24
Investment return – realised and unrealised gains and (losses) (141) (141)
Less: investment management costs (25) (25)
Total - (142) (142)
-
Unapplied total return applied to income in the year ended 31st March 2025 (29) (29)
Net movements in the year ended 31st March 2025 - (171) (171)
Closing value at 31st March 2025
Gift component of the permanent endowment 1,837 1,837
Unapplied total return 1,031 1,031
Total 1,837 1,031 2,868
**----- End of picture text -----**
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 in line with the terms of the Pedlar’s Acre Trust governing documents. During the year to 31 March 2025, 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. In July to September 2025 a review of these estimates was undertaken. This resulted in a revision to the estimate of the value to be retained within UTR to ensure that the value of the Endowment is maintained into the future. The revised estimate of the value of the Endowment required to be retained at 31st March 2025 is £3,294, 650 (2024: £3,210,180).
## **18b Application of the power of total return to Pedlar’s Acre Trust (continued)**
This means that there is a shortfall of funds in the Endowment at 31 March 2025 of £420,120 (2024: shortfall of £164,650). This shortfall will be made good out of surpluses of total return over allocations to Trusts for Allocation (that is Income Funds) over a period not exceeding ten years.
## **19 Related party transactions**
As per note 6, the Trustees are not remunerated, and no expenses have been incurred in 2025 (2024: Nil).
**----- Start of picture text -----**
31 March 31 March
Trustee / Relationship 2025 2024
Organisation Employee with LCF Description £000 £000
Carers Hub Lambeth Laura Perkins Employee Grant - 24
The London Community Foundation Russell Prior Trustee Donation - 4
Ella’s Home Nimat Jaffer Employee Grant 80 56
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In 2025, Ella’s Home received a £80,000 restricted grant from LCF and one of their trustees is Nimat Jaffer, who is an employee of LCF.
## **20 Analysis of grants**
## **20a Analysis of grants by recipient**
||Total
2025
£000|Total
2025
Number|
|---|---|---|
|Grants awarded to institutions|8523|703|
|Total|8523|703|
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 allocated to one single institution.
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**Annual report and financial statements**
**Notes to the financial statements**
**The London Community Foundation**
## **20b Analysis of grants by theme**
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Number
Amount of grants
Primary beneficiary £000 allocated
Ethnic minorities 2,534 214
Carers 61 6
Children and young people 1,665 132
Cockayne (Arts) 38 9
Education 29 3
Environment 2 1
Ex Offenders 7 1
Ex Offenders and Prisoners 50 1
Ex-offenders/offenders/At risk of offending 10 1
Families/Parents/Lone parents 71 7
Food 4 3
Homeless people 221 9
Isolation 6 2
Lesbian, gay, bisexual and transgendered groups 37 6
Local residents 274 43
Medical Support 11 13
Men 7 1
Mental Health 1 2
Not in education, employment and training (NEET 16-24) 25 2
Older People 259 27
Others 207 12
People in care or suffering serious illness 135 4
People living in poverty 251 22
People who are homeless 116 6
People with learning difficulties 178 12
People with low skill levels 10 1
People with mental health issues 99 9
People with multiple disabilities 494 24
People with physical difficulties 41 3
Poverty 70 1
Refugee Women 5 1
Refugees 5 1
Refugees and Asylum Seekers 13 9
Refugees/asylum seekers /immigrants 224 12
Victims of crime/violence/abuse 750 57
Women 610 45
Women and Girls 3 1
Total 8,523 703
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## **Prior year comparatives**
## **Statement of financial activity for the year to 31 March 2024**
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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 / (237) (1,358) 50 (1,545) (550)
(expenditure) before
investment gains
and losses
Net gains / (losses) 9 26 58 2,081 2,165 (944)
on investments
Net income / (211) (1,300) 2,131 620 (1,494)
(expenditure)
Transfers in / (out) 14,15 106 646 (752) - -
between funds
Net movement in funds (105) (654) 1,379 620 (1,494)
Reconciliation of funds
Total funds brought 937 8,123 22,576 31,636 33,130
forward at 1 April
Total funds carried 13a 832 7,469 23,955 32,256 31,636
forward at 31 March
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**Annual report and financial statements**
## **Contact**
**The London Community Foundation**
## **Contact**
The London Community Foundation Canopi, 82 Tanner Street, London, SE1 3GN
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: The Somerville Centre
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Member
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**Together we truly are making a difference to London, where it matters most.**
Thank you for all that you have helped us to achieve. Your support is so vital to sustain London’s incredible network of grassroots charities and local community groups. They are the fabric of our communities and increasingly we are all dependent on their unique reach, impact and purpose.
**londoncf.org.uk**