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2020-05-01-accounts

Charity Registration No. 1091870

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 MAY 2020

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Baroness Neuberger DBE
Professor Anthony Neuberger
Sheila Spalding
Dr Katie Petty-Saphon
Lady Brittan DBE
Dr R Murray (Appointed 1 April 2020)
Charity number 1091870
Principal address SW Trust
PO Box 12327
Colchester
CO6 4XE
Independent examiner Julian Challis
HW Fisher
Acre House
11-15 William Rd
Kings Cross
London
NW1 3ER
United Kingdom
Bankers National Westminster Bank Plc
Head Office
41 Lothbury
London
EC2 2BP
Solicitors Bryan Cave Leighton Paisner
Adelaide House
London Bridge
London
EC4R 9HA

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 14

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 1 MAY 2020

The trustees present their report and financial statements for the year ended 1 May 2020.

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 charity's Declaration of Trust , the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The charity's objects, as set out in its Declaration of Trust, are to assist young refugees and asylum seekers in accessing education and to give awards to young refugees and asylum seekers for exceptional effort and achievements within their schools and colleges. There has been no change in these during the year.

The Charity's policy is to give funding to individuals to access education where there are no adequate alternative sources of funding. We also provide support and advice to individuals we fund. We foster partnerships with other agencies that offer services to asylum seekers so as to ensure that the grants are administered as effectively and efficiently as possible.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

The Trust gives small grants to help young refugees and asylum seekers with their studies. These range from helping with transport, with books or computers, to paying a contribution towards fees as necessary. All grants are dependent on the young person's immigration status.

In addition, The Walter and Liesel Schwab Charitable Trust continues to award hardship grants to individuals to help access education and training. The Trust has developed close working partnerships with various projects working with asylum seekers and refugees to help support those seeking to enter education. Both Trusts have developed close working partnerships with Article 26 (Helena Kennedy Foundation, HKF) and Refugee Support Network.

Achievements and performance

The Charity initiated its Westheimer Scholarships in 2015, providing scholarships, covering both fees and maintenance, to enable talented and deserving young asylum seekers, who have no recourse to public funds, to go to university on undergraduate degree programmes and get the qualifications that will enable them to live good and productive lives. In the first four years of the programme, eleven such scholarships have been awarded, with the first scholars graduating in the summer of 2018.

In 2017/18 we instituted the Brittan scholarship, for students at either Masters or Undergraduate level who have no more than a further two years to study. This scholarship is in memory of Lord (Leon) Brittan who was himself the child of an immigrant and asylum seeking family, and who had huge sympathy for people seeking an education. The scholarship is available for students in International Law, International Aid and International Business. In 2018/19, we awarded the first Marks scholarship supported by the Marks Family Charitable Trust. It is open to students embarking on a three year humanities degree programme at undergraduate level, or a postgraduate Masters degree in humanities. The Charity is keen to attract new funding for scholarships that pay fees and a contribution to living costs for asylum seekers who have no access to student funding.

Alongside this, the charity has provided many small grants, typically of up to £2000, to young asylum seekers, which can be lifechanging.

The COVID-19 pandemic had considerable impact on our scholars and the other beneficiaries of the Trust, as indeed it did on students generally. The direct impact on the Trust itself was quite limited.

The Charity is conscious of the importance of providing help and advice as well as grants to support students who face many tough challenges. We therefore work closely with the Refugee Support Network (RSN) who provide advice on education issues and more general personal support for many of our scholars and grantees. They also provide considerable help in administering and publicising our grants and scholarships.

Public Benefit

The Trustees have complied with their duty in section 17 of the Charities Act 2011 to have due regard to guidance published by the Charity Commission.

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 1 MAY 2020

Financial review

In this financial year the Charity made a deficit of £276,096 (2019: deficit of £103,976). At 1 May 2020, the reserves stand at £1,282,504 (2019: £1,558,600) where £33,785 (2019: £23,803) is unrestricted and £1,248,719 (2019: £1,534,797) is restricted.

During the year the charity bought £132,148 (2019: £99,529) of investments. The investments held decreased in value by £112,668 (2019: increase in value by £15,900).

The Charity is seeking to maintain and build up its unrestricted reserves to enable it to complement and enhance the impact of restricted funds, and deploy them as effectively as possible.

The Charity received a legacy of £1.3 million from the estate of the late Ilse Johanna Westheimer, which was established as a restricted fund within the Charity on 18 October 2006. The Trustees' intention is to manage the fund so that it can provide continued support to asylum seekers over the medium term.

The assets of the charity are invested in liquid financial securities that offer maximum expected return subject to an acceptable level of risk, taking account of the differing time horizons of the restricted and unrestricted funds.

The Trustees regularly review the major risks facing the charity with a view to producing plans to mitigate any risks that are identified.

The trustees have adopted an investment strategy for the funds of the charity that focuses on total return, and that looks for capital growth with medium risk, with an asset allocation split roughly equally between bonds and equities, avoiding excessive exposures to any one corporate name or sector. The ethical guidelines include the avoidance, so far as practical, of investments in arms manufacture and sales, and tobacco.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Having now appointed eleven Westheimer scholars, the charity looks to appoint two or three more each year, depending on the quality of applicants and the financial resources of the charity. We also work with other agencies to help support the educational needs of refugees and asylum seekers.

Structure, governance and management

The Walter and Liesel Schwab Charitable Trust was established to assist young refugees and asylum seekers in accessing education. The Charity's Declaration of Trust was executed on 6 December 2001.

The trustees who served during the year and up to the date of signature of the financial statements were: Baroness Neuberger DBE Professor Anthony Neuberger Sheila Spalding Dr Nicholas Sagovsky (Resigned 31 January 2020) Dr Katie Petty-Saphon Lady Brittan DBE Dr R Murray (Appointed 1 April 2020)

The Trustees would like to record their appreciation of the energy, compassion, and deep knowledge of the sector that Dr Sagovsky brought to the Trust.

Trustees are selected from those who knew Walter and Liesel Schwab and Ilse Westheimer, plus experts in the field. The charity will continue to appoint new outside trustees with relevant knowledge and experience. New Trustees have to be approved by current Trustees. Trustees outside the charity are limited to terms of no more than nine years.

The Trustees of the Charity meet three or four times per year to decide on policy and to award individual grants.

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 1 MAY 2020

Reserves

With the first Westheimer scholars now graduating, the Westheimer scholarship programme has reached approximately steady state, with an average of three scholarships per year being awarded. This level of activity will lead to the gradual running down of the Charity’s restricted reserves. The Trustees are committed to maintaining a level of restricted reserves sufficient to ensure continuity of funding for all the scholarships that are awarded, and the current level of reserves greatly exceeds that level.

The Charity has been seeking to increase the level of unrestricted income in order to be able to maintain and if possible increase the number of small grants (up to £2000) it can make to beneficiaries who fall outside the scope of the Westheimer bequest. These grants are made out of unrestricted funds, are one off and do not carry with them any commitment to future funding, so the level of expenditure can readily be adjusted in accordance with the financial resources available to the charity. In addition to the small grants and the Westheimer scholarships, the Trustees have also been prepared to award one off scholarships where additional earmarked funding has been secured.

Plans for the future

The charity plans to continue awarding scholarships and small grants to asylum seekers. It also plans to publicise its work in order to ensure it is better known to eligible candidates and that potential sponsors are able to see what life changing effects come as a result of being able, as an asylum seeker whose life has been put ‘on hold’, to go to university fully funded and gain a degree and a qualification. The charity will also be working closely with the Refugee Support Network to provide further and more targeted support for our students.

The trustees' report was approved by the Board of Trustees.

Baroness Neuberger DBE Trustee Dated: 18 February 2021

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THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 1 MAY 2020

Unrestricted
funds
2020
Notes
£
Income from:
Donations and legacies
3
42,784
Investments
4
-
Total income
42,784
Expenditure on:
Investment management
costs
-
Charitable activities
5
31,598
Total resources expended
31,598
Net gains/(losses) on
investments
10
-
Net incoming/(outgoing)
resources before transfers
11,186
Gross transfers between
funds
(1,204)
Net movement in funds
9,982
Fund balances at 2 May
2019
23,803
Fund balances at 1 May
2020
33,785
Restricted
funds
2020
£
19,000
44,533
63,533
9,000
221,535
230,535
(120,280)
(287,282)
1,204
(286,078)
1,534,797
1,248,719
Total
Unrestricted
funds
2020
2019
£
£
61,784
53,399
44,533
-
106,317
53,399
9,000
-
253,133
41,027
262,133
41,027
(120,280)
-
(276,096)
12,372
-
(788)
(276,096)
11,584
1,558,600
12,219
1,282,504
23,803
Restricted
funds
2019
£
35,958
48,896
84,854
10,333
224,121
234,454
33,252
(116,348)
788
(115,560)
1,650,357
1,534,797
Total
2019
£
89,357
48,896
138,253
10,333
265,148
275,481
33,252
(103,976)
-
(103,976)
1,662,576
1,558,600

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

BALANCE SHEET

AS AT 1 MAY 2020

Notes
Fixed assets
Investments
11
Current assets
Cash at bank and in hand
Creditors: amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
14
Unrestricted funds
2020
£
£
2019
£
£
1,096,882
1,456,716
200,417
122,435
(14,795)
(20,551)
185,622
101,884
1,282,504
1,558,600
1,248,719
1,534,797
33,785
23,803
1,282,504
1,558,600
2020
£
£
2019
£
£
1,096,882
1,456,716
200,417
122,435
(14,795)
(20,551)
185,622
101,884
1,282,504
1,558,600
1,248,719
1,534,797
33,785
23,803
1,282,504
1,558,600
1,558,600
1,534,797
23,803
1,558,600

The financial statements were approved by the Trustees on 18 February 2021.

Baroness Neuberger DBE Trustee

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 1 MAY 2020

1 Accounting policies

Charity information

The Walter and Liesel Schwab Charitable Trust is constituted under a Declaration of Trust dated on 6 December 2001 and is a registered charity (registration number 1091870). The charity meets the definition of a public benefit entity under FRS102.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's Declaration of Trust, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

The Trustees have considered the effect of the Covid-19 outbreak. The Trustees consider that the outbreak is likely to cause some disruption to the Charity’s operations but does not believe that this will be significant. The Trustees have a reasonable expectation that the Charity can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Interest on funds held on deposit is included upon notification of the interest paid or payable by the Bank. Dividends are recognised once the dividend has been declared and notification has been received by our investment advisor of the investment portfolio.

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 1 MAY 2020

1 Accounting policies

(Continued)

1.5 Resources expended

Liabilities are recognised as expenditure once there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is classified under the charity's principal projects. Expenditure is included on an accruals basis.

Costs of raising funds are those costs incurred in managing the Trust's investment portfolio.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one year or multi-year grant. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled conditions attaching to that grant are outside of the control of the charity.

Support costs comprise of costs for the running of the charity itself as an organisation and compliance with statutory requirements.

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Apart from fixed asset investments, t he Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The trustees do not believe there to be any judgements or estimates critical to the financial statements.

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 1 MAY 2020

3 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2020 2020 2020 2019 2019 2019
£ £ £ £ £ £
Donations and gifts 42,784 19,000 61,784 53,399 35,958 89,357

Total donations received were £61,784, of which £42,784 (2019: £53,399) were unrestricted and £19,000 (2019: £35,958) were restricted.

4 Investments

Restricted Restricted
funds funds
2020 2019
£ £
Income from listed investments 31,458 38,192
Interest receivable 13,075 10,704
44,533 48,896

All investment income in 201 9 and 201 8 was restricted.

5 Charitable activities

Grant funding of activities (see note 6)
Share of support costs (see note 7)
Share of governance costs (see note 7)
Analysis by fund
Unrestricted funds
Restricted funds
2020
£
215,735
30,918
6,480
253,133
31,598
221,535
253,133
2019
£
221,666
34,482
9,000
265,148
41,027
224,121
265,148

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 1 MAY 2020

6 Grants payable

Grants to individuals (40 grants)

2020 2019 £ 215,735 221,666

The grants paid comprises of amounts to Westheimer, Brittan and Marks scholars, in addition to payments to other individuals.

7 Support costs

Support costs
Governance
costs
£
£
Admininistrative costs
30,918
-
Audit fees
-
-
Independent examination
-
6,480
30,918
6,480
Analysed between
Charitable activities
30,918
6,480
2020
Support costs
Governance
costs
£
£
£
30,918
34,482
-
-
-
9,000
6,480
-
-
37,398
34,482
9,000
37,398
34,482
9,000
2019
£
34,482
9,000
-
43,482
43,482

Governance costs include payments to the auditors of £0 (201 9 : £ 9,000 ) and payments to the independent examiners of £6,480 (2019: £0).

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year. One trustee incurred expenses of £27 (2019: £ nil ).

9 Employees

The average monthly number of employees during the year was:

2020 2019
Number Number
Total - -

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 1 MAY 2020

10 Net gains/(losses) on investments

Restricted Restricted
funds funds
2020 2019
£ £
Revaluation of investments (112,668) 15,542
Gain/(loss) on sale of investments (7,612) 17,710
(120,280) 33,252

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 1 MAY 2020

11
Fixed asset investments
Listed
investments
£
Cost or valuation
At 2 May 2019
1,380,313
Additions
132,148
Valuation changes
(112,668)
Disposal
(326,046)
Cash movements
-
At 1 May 2020
1,073,747
Carrying amount
At 01 May 2020
1,073,747
At 01 May 2019
1,380,313
12
Financial instruments
Carrying amount of financial assets
Equity instruments measured at fair value
Carrying amount of financial liabilities
Measured at amortised cost
13
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
Cash in
portfolio
£
76,403
-
-
-
(53,268)
23,135
23,135
76,403
2020
£
1,096,882
14,795
2020
£
3,120
11,675
14,795
Total
£
1,456,716
132,148
(112,668)
(326,046)
(53,268)
1,096,882
1,096,882
1,456,716
2019
£
1,456,716
20,551
2019
£
6,420
14,131
20,551

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 1 MAY 2020

14 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
2 May 2018
£
Westheimer Trust
1,650,357
Brittan scholars
-
Marks scholars
-
1,650,357
Incoming
resources
£
48,896
16,458
19,500
84,854
Movement in funds
Resources
expended
Transfers
Investments
gains/losses
Balance at
2 May 2019
£
£
£
£
(185,217)
(15,549)
33,252
1,531,739
(27,795)
11,337
-
-
(21,442)
5,000
-
3,058
(234,454)
788
33,252
1,534,797
Incoming
resources
£
44,533
15,000
4,000
63,533
Movement in funds
Resources
expended
Transfers
Investments
gains/losses
Balance at
1 May 2020
£
£
£
£
(199,331)
-
(120,280)
1,256,661
(16,204)
1,204
-
-
(15,000)
-
-
(7,942)
(230,535)
1,204
(120,280)
1,248,719

Westheimer Trust - T he restricted fund represents the estate of the late Ilse Johanna Westheimer, which was established as The Ilse and Frieda Westheimer Charitable Trust on 18 October 2006. This fund is to be used for the advancement of education of asylum seekers or refugees, particularly in the areas of health and social care, or for such other charitable purposes as the trustees in their absolute discretion from time to time think fit.

Brittan Scholarship - The Brittan scholarship is open to students at either Masters or Undergraduate level who have no more than two years further to study. This scholarship is in memory of Lord Leon Brittan who was himself the child of an immigrant and asylum seeking family, and who had huge sympathy for people seeking an education. The scholarship is available for students of the following subjects: International Law, International Aid and International Business. The amount awarded covers tuition fees (at home rates between £9,000 - £12,000) and a small maintenance grant (maximum £5,000) lasts for up to two years. Applicants who have an asylum seeking background are encouraged to apply.

Marks Scholarship - The Marks scholarship supported by the Marks Family Charitable Trust is open to students embarking on a three year humanities degree programme at Undergraduate level, or a postgraduate Masters degree in Humanities. Only candidates with proven excellent academic record/achievement are considered. The scholarship covers ‘home’ tuition fees (up to £9,500 per year). Applicants need to demonstrate that they can cover their living costs whilst at university. The scholarship is awarded to students who have an asylum seeking background and people who are not eligible for student finance are prioritised.

Transfers - Additional funds have been transferred from unrestricted funds to restricted funds to remove the negative balance in the Brittan scholarship at 1 May 2020. The Trust has been fully assured that additional funds will be received post year end to remove the deficit in the Marks scholarship at the year end.

Investment gains/losses comprise realised gains/losses on disposal of investments and unrealised gains/losses on revaluation.

THE WALTER AND LIESEL SCHWAB CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 1 MAY 2020

15
Analysis of net assets between funds
Unrestricted
funds
2020
£
Fund balances at 1 May
2020 are represented by:
Investments
-
Current assets/(liabilities)
33,785
33,785
Restricted
funds
2020
£
1,096,882
151,837
1,248,719
Total
Unrestricted
funds
2020
2019
£
£
1,096,882
-
185,622
23,803
1,282,504
23,803
Restricted
funds
2019
£
1,456,716
78,081
1,534,797
Total
2019
£
1,456,716
101,884
1,558,600

16 Related party transactions

The total donations received without conditions in the year from a related party amounted to £12,544 (2019: £13,285).