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2021-03-31-accounts

/1 The F(OYAL MAF(SDEN Cancer Charity

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Clinical Psychologist Dr Emma Porter, who runs the CHAMP pain management service for children (see p10) with Play Specialist Kate Hodgkiss in the Oak Centre for Children and Young People

Annual Report and Financial Statements 2020/21

Introduction

Trustees’ Report (including the strategic report)

Wider reach

12 Activities, achievements and performance in 2020/21

Financial statements

Cover image: Superintendent Radiographer, Louise D’Costa, with a new mobile paediatric X-ray machine

Some of the photographs in this report were taken prior to the COVID-19 pandemic and may not reflect current social distancing and PPE guidelines.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Introduction

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report

Introduction

A letter from our Chairman and Managing Director

Over the past year, the COVID‑19 pandemic has had a considerable impact on the charity sector as a whole, and The Royal Marsden Cancer Charity has been no exception. With so many of our events being either cancelled or postponed, we have adapted, innovated and maximised every opportunity to continue to support the work of The Royal Marsden.

Our loyal supporters have truly risen to the challenge and found imaginative ways to fundraise from their own homes and fully embraced our new virtual events, as well as virtual versions of our traditional events. We are very grateful to every single person who has supported us, in what has been one of the most challenging years for all of us.

We are delighted to say that, thanks to our supporters’ unwavering dedication, The Royal Marsden Cancer Charity raised £30.9 million from donations and gifts in Wills this year, exceeding our target by £3.3 million. We have also provided a total of £39.1 million in grants to the hospital. The achievement of our revised goal not only helped the staff and patients during the pandemic but will continue to make a vital difference to patient treatment and care for years to come.

Looking back on this last financial year, in March 2020 we were one of the first hospital charities to launch a COVID‑19 emergency appeal. The appeal reached its target of £2 million, which funded psychological support for staff affected by the pandemic, digital support such as iPads and Wifi boosters to help patients stay in touch with loved ones, and research into the impact of COVID‑19 on cancer treatment and care. This research will inform practice and benefit cancer patients not just at The Royal Marsden, but across the UK and around the world.

Other highlights this year include seeing the first patients treated on the new Charity‑funded CyberKnife radiotherapy machine at The Royal Marsden in Sutton, committing a further £5 million to research over the next two years, and reaching the £65 million mark in our appeal for The Royal Marsden’s new treatment and research facility, the Oak Cancer Centre.

In October we welcomed The Royal Marsden’s President, HRH The Duke of Cambridge, to the hospital to officially break ground for the new treatment and research facility the Oak Cancer Centre, and to launch the public phase of the fundraising appeal. Due to be completed in late 2022, the centre will house over 400 researchers under one roof, in spaces designed to encourage collaboration and accelerate the development of new treatments for people with cancer.

The Charity also continued to fund imaging equipment to ensure patients can receive the fastest and most accurate diagnosis. In December, a new MRI 3T scanner was installed at The Royal Marsden in Sutton. Two further machines will be upgraded in 2021, creating a brand‑new imaging facility providing the very best diagnostic and treatment options for patients. We also funded a new mobile x‑ray machine which can provide fast, reliable and high quality imaging from the comfort of children’s hospital beds. This new equipment means children in isolation, or who are too unwell to leave their bed, can have the scans they need.

As we look ahead, the impact of COVID‑19 will continue to be felt by all of us, personally and professionally. We are however confident that, thanks to our committed and loyal supporters, we will continue to support the world‑leading work of The Royal Marsden, while it recovers from the pandemic and forges ahead, to continue saving and improving the lives of everyone affected by cancer.

Charles Alexander Chairman The Royal Marsden Cancer Charity

Antonia Dalmahoy Managing Director The Royal Marsden Cancer Charity

HRH The Duke of Cambridge at the groundbreaking ceremony for the Oak Cancer Centre

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Objectives

Trustees’ Report Objectives

Objectives

The Royal Marsden NHS Foundation Trust

In 1851, Dr William Marsden founded The Royal Marsden with a vision to create a pioneering cancer hospital, dedicated to not only the treatment and care of people with cancer but also research into the underlying causes of the disease. This vision continues through to the present day.

Together with its academic partner, The Institute of Cancer Research (ICR), The Royal Marsden is the largest and most comprehensive cancer centre in Europe. It is a centre of excellence with an international reputation for groundbreaking research and pioneering the latest in cancer treatments and technologies, as well as specialising in cancer diagnosis and education.

The Royal Marsden Cancer Charity

The Royal Marsden Cancer Charity exists solely to support the work of The Royal Marsden. Thanks to our supporters, we continue to be there for everyone who needs us. We ensure the nurses, doctors and research teams can provide the very best care and develop life‑saving treatments, which are used across the UK and around the world. From funding state‑of‑the‑art equipment and groundbreaking research to creating modern patient environments, we will never stop looking for ways to improve the lives of cancer patients.

Patient environments: Fund modern patient

environments – allowing the hospital to build new facilities and refurbish existing ones, so that patients are cared for in the most welcoming, dignified and peaceful environments.

Treatment and care: Enable The Royal Marsden to offer patients world‑leading treatment and care – delivering tailored and personalised treatment, which cares for the whole person, not just their illness.

Public benefit

Charitable purpose

The Royal Marsden, as an NHS Foundation Trust, provides free healthcare at the point of delivery for members of the general public seeking cancer treatment. The overarching ambition of the hospital continues to be the provision of the best cancer treatment and care available, supported by the highest‑quality research, to improve outcomes for people with cancer everywhere.

The Royal Marsden Cancer Charity’s legal purpose is to raise funds that enable The Royal Marsden NHS Foundation Trust of London and Surrey to carry out life‑changing work in cancer research, diagnosis, treatment and care.

The Charity supports both capital and ongoing projects that are in line with the hospital’s ambitious vision and business strategy, and that will enhance the provision of care to patients. Our charitable objectives focus on, but are not limited to, providing:

Each year, The Royal Marsden sees more than 55,000 patients at its two hospitals in Chelsea and Sutton. Together with the ICR, it is the only National Institute for Health Research (NIHR) Biomedical Research Centre (BRC) in the UK dedicated solely to cancer. The specific remit of the BRC is to facilitate rapid and effective translation of scientific findings into improved therapies that are ultimately tested in large‑scale national and international trials and subsequently influence clinical practice.

  1. The relief of sickness related to cancer at the hospital

  2. The promotion of clinical and other useful research at or in connection with the hospital

  3. The advancement of education at or in connection with the hospital

The Charity’s support is vital in keeping the hospital at the forefront of its field, so it can provide the best possible service to its patients. We invest in new equipment and facilities to increase the hospital’s capacity and vastly improve environments for patients and their families. We also fund groundbreaking research with the aim of achieving and publishing successful results and practices to influence work at the hospital and in the wider medical world.

  1. The provision of accommodation, amenities and recreational facilities for the benefit of patients, carers, staff and students at the hospital, and the provision of comforts for such patients.

We apply these objectives to grants for funding work and equipment at The Royal Marsden, at the Trustees’ discretion, under the four pillars of:

Fundamentally, our public benefit is to enable more patients at The Royal Marsden and around the world to have quicker access to treatment, and to enable the development of more effective therapies. The Trustees believe they have complied with their duty regarding the Charity Commission’s guidance on public benefit.

Research: Support life‑saving research – including leading on the development of new treatments and funding clinical trials that give patients at the hospital, across the UK and around the world access to the latest breakthrough drugs.

Equipment: Invest in state‑of‑the‑art equipment – from the most advanced robotic surgery machines, to the latest scanners and diagnostic technology to ensure the very best imaging of patients resulting in more personalised treatment.

Researchers in the Ralph Lauren Centre for Breast Cancer Research

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Objectives

Trustees’ Report Objectives

Wider reach

The research, staff, and equipment supported by The Royal Marsden Cancer Charity benefits patients not just at The Royal Marsden, but those diagnosed with cancer across the UK and around the world. It enables advancements in research through collaboration and information sharing, which improves treatment and care for patients.

The hospital’s second CyberKnife radiotherapy machine began treating patients this year. This pioneering piece of equipment can deliver radiation to patients with pinpoint accuracy, meaning less healthy tissue is damaged during treatment and fewer treatment sessions are needed. CyberKnife has been central to international research, including the PACE‑B trial. The trial is led by Royal Marsden Medical Director and Charity Trustee, Professor Nicholas van As, and is an international multi‑centre trial available across the UK, Ireland and Canada. Results have shown that a much shorter course of higher‑dose radiotherapy does not increase short‑term side effects compared with the current standard of care. The next phase of the trial, PACE C, which is funded by the Charity through generous support from gifts in Wills, will compare patients receiving SBRT and an anti‑hormone therapy, with those receiving this therapy alongside other forms of radiotherapy.

During the first wave of the COVID‑19 pandemic, researchers at The Royal Marsden launched several studies to investigate the impact of COVID‑19 on cancer treatment and care. Funds from the emergency appeal, including donations from long‑term supporters of the Charity, The Lady Garden Foundation and the Henry Oldfield Trust, made this research possible. Professor David Cunningham, Consultant Medical Oncologist and Director of the NIHR Biomedical Research Centre, said: “We are uniquely placed to look at COVID‑19 in a cancer setting. Our teams worked at pace to establish studies with a focus on immediate impact through to longer‑term understanding of this novel virus. Thanks to funding from The Royal Marsden Cancer Charity and the NIHR BRC, we hope this research will have a national and international impact.”

As The Royal Marsden is a specialist referral centre for a number of very rare types of cancer, the hospital has large enough cohorts of patients to conduct meaningful research to benefit patients with these rare cancers throughout the UK. With central nervous system (CNS) lymphoma, this has now been made possible thanks to gifts in Wills left to The Royal Marsden Cancer Charity. Professor Ian Chau is using Charity funding to revolutionise treatment for this type of cancer for patients across the country, from looking for genetic mutations which can be targeted with drugs, to using special types of PET and CT scans that can detect active cancer versus scar tissue.

The CAPTURE study, for example, led by Dr Samra Turajlic, Consultant Medical Oncologist at The Royal Marsden, which has detected a wide range of antibody levels and COVID‑19‑specific T‑cells in cancer patients. The study has also identified that patients with blood cancers have specific defects that affect their immune response, which could make them more vulnerable to COVID‑19. More than 500 vaccinated patients, including 100 with blood cancers, have been enrolled so far.

The OCTAPUS‑AI study, led by Dr Richard Lee, is analysing over 900 cancer patient scans using artificial intelligence to help determine whether changes in the lung are due to COVID‑19, another infection or a side effect of cancer treatment.

Grant-making

Grants are only made to The Royal Marsden NHS Foundation Trust and not to any other organisation or individual. Because many of The Royal Marsden’s clinicians work closely with the ICR and have joint appointments, grants made to staff or projects at The Royal Marsden can also have an impact on the ICR’s work.

Charitable Special Purpose Funds

These funds are donated to the Charity for specific purposes within its charitable objectives but have a restrictive application. For example, the Charity may receive funds from a donor who has specified that the money should be applied to a particular type of research or a particular ward or department.

In order for the Charity to support a project, bids for funding must demonstrate that it meets at least one of the following objectives:

The Trustees have delegated the day‑to‑day management of each individual fund to a named fund‑holder. This is likely to be a senior clinician, researcher or nurse who is in a position to oversee the management of the fund. They will have levels of expenditure agreed in accordance with the directions set out by the Trustees in the Charity’s Special Purpose Fund Guidelines policy.

Fund‑holders are accountable to the Trustees for the use of funds under their management.

The total of the actual funds spent on each main category of charitable activity, including support costs, is disclosed on the face of the consolidated statement of financial activities, and an analysis is disclosed in notes 7, 8 and 9 of our financial statements on page 47.

Social investment

The Charity has made a concessionary loan of £226,000 to The Royal Marsden NHS Foundation Trust to be used to finance loans to hospital staff for travel season tickets and bicycle purchases. The Trust is responsible for the administration of these loans and any defaults, tax liabilities and other costs relating to them. The Charity’s loan to the Trust is interest free; however, the amount and terms of the loan are reviewed prior to renewal.

All ongoing funded projects are reviewed at least twice a year to ensure they are fulfilling the original award criteria and continue to have a significant positive impact on the patients of The Royal Marsden. The total cost of making grants, including support costs, is disclosed on the face of the consolidated statement of financial activities, and an analysis is disclosed in note 6 to our financial statements on page 46.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Objectives

Trustees’ Report Objectives

Our fundraising practices

Working with third‑party fundraisers

At The Royal Marsden Cancer Charity we want to ensure our supporters are treated fairly and with respect. We adhere to best practice across all our fundraising activities and continually look for ways to improve and ensure we address challenges and adopt new regulations effectively.

We have processes in place with external groups and fundraisers, who raise funds on our behalf, to ensure they follow the accepted fundraising standards. Monitoring and control of fundraising activities is vital to ensure that our supporters are treated fairly and with respect. Members of our Charity team liaise regularly with our supporters and fundraisers about their activities and practices.

The Charity and external fundraisers complied with all fundraising standards as far as the Charity is aware in 2020/21.

Our fundraising approach

In 2020/21 we did not use any external organisations to carry out telephone or face‑to‑face fundraising on our behalf and no professional fundraiser or commercial participator carried out any fundraising activities for the Charity.

Our supporters make a huge difference by ensuring The Royal Marsden can develop life‑saving treatments for cancer patients across the UK and beyond. In return, we make a promise to our supporters.

Complaints

We are committed to the highest standards

We try to make sure that supporting The Royal Marsden Cancer Charity is a great experience. However, sometimes people may disagree with some of our actions so we provide a fair complaints procedure which is clear, easy to use and published on our website.

We are registered with the Fundraising Regulator and are proud to champion the principles of honesty, accountability and transparency when fundraising.

We will be clear, honest and open

We will keep you up to date with our work and finances so you can see how your money is spent and the difference you are making. But you are in control. If you ever want to change the way we communicate with you, please just let us know.

We’ll always make sure that:

We will treat you, and your privacy, with respect

Your details are safe with us. We will never sell your information to third parties or share your details with any other charities for their own purposes.

We are fair and reasonable

We treat our patients, supporters and the general public fairly, showing sensitivity and consideration.

We commit to supporters that we will get back to them within one working day and will respond in full within 10 working days. If supporters are not satisfied with our response they can contact the Fundraising Regulator for advice.

We are accountable and responsible

We value your feedback. If you’re unhappy with anything, please get in touch and let us know.

Complaints and supporter feedback are an important source of information about the impact of our work on our supporters and members of the public, providing us with insight and lessons for future fundraising activities. In the year to 31 March 2020, we received 30 complaints. These were all resolved satisfactorily within the timetable set out in our Complaints Policy.

Supporter data

Protecting people

Our supporters’ wishes are of the upmost importance to us and we are committed to protecting both their privacy and their data. As a part of this, we will continue to ensure that our supporters have a choice about how we communicate with them. This includes both the type of communications we send and the channel through which we send them. By considering our supporters first and foremost within all fundraising communications, we believe we will achieve a greater level of engagement in the long term.

The Royal Marsden Cancer Charity takes careful steps to ensure that we protect vulnerable people and other members of the public from behaviour that may be seen as unreasonable. In line with the Fundraising Code of Practice and Institute of Fundraising guidance Treating Donors Fairly – Fundraising with People in Vulnerable Circumstances, the Charity has a clear Fundraising and Vulnerable Circumstances Policy in place. This is a key part of the induction and training process for all staff and is reviewed regularly. Managers are responsible for ensuring that their teams are aware of this Policy and understand the information within it.

A mother and daughter team taking on a lockdown canoe race in their back garden

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Objectives

Trustees’ Report Objectives

Our volunteers

The Royal Marsden Cancer Charity is very grateful to have the support of volunteers, who help ensure the smooth running of our events and activities.

In the face of the COVID‑19 pandemic, our volunteers have continued to go above and beyond to support the Charity and the hospital. Over the past year, our volunteers have taken on and quickly adapted to new roles to assist patients and staff. Organised by the Charity, volunteers have helped to deliver essential medications to vulnerable patients isolating at home, have distributed donations to staff including over 56,000 meals and tens of thousands of pounds worth of perishable and non‑perishable items donated to the Charity. Others continued to help spread the word about the Charity by attending events and presenting to meetings online with community groups such as Rotary Clubs.

Shirley Carpenter, one of our volunteers, said: “I have been volunteering at The Royal Marsden Cancer Charity since October 2004. I had lost a close friend of mine the previous year who had been treated at The Royal Marsden, and wanted to use my spare time in a meaningful way. Volunteering with the Charity seemed like the obvious choice. This past year, it hasn’t been possible for me to perform my usual roles with the Fundraising Team such as working on the new Charity hub in the hospital, or the Celebrate a Life or Banham Marsden March events. Instead I joined the COVID‑19 volunteering team to support activities around the hospital. I have particularly enjoyed looking after patients and taking them to their appointments. It was lovely to be able to be there for them when visiting was suspended so that they were not on their own. I always come away from a shift feeling that I have added some value, and that the time I give each week is greatly appreciated. It is definitely worth it.”

“I’d like to say a huge thank you to

every Royal Marsden Cancer Charity volunteer, whatever their role, for the difference they’ve made to the patients and staff at The Royal Marsden this year. We really couldn’t have achieved what we have this year without them and are extremely grateful for their unwavering support.”

Antonia Dalmahoy

Managing Director The Royal Marsden Cancer Charity

Measuring success

The Royal Marsden provides update reports to the Charity on all the areas of work funded through Charity grants at Trustee meetings.

Each report details the key achievements of the Charity funded projects against the objectives set for them and outlines the next steps for each project. Most importantly, the reports explain how the Charity’s money is benefiting patients at The Royal Marsden, across the UK and around the world.

Our strategic priorities

This year marked the final year of the Charity’s three‑year strategy which ran from 2018/19 to 2020/21. We continued with our plan to deliver sustainable growth by focusing on the following six strategic priorities:

  1. We will continue to attract the best possible people and retain them through excellent management and development, and the creation of an ambitious and positive organisational culture

  2. We will increase the number of supporters giving to the Charity across all areas of fundraising, maximising the value of their support

  3. We will establish The Royal Marsden Cancer Charity as the charity of choice for patients, their friends and family, and staff of The Royal Marsden, ensuring they know who we are, what we do and why they should support us

  4. We will successfully inspire new donors to support the Oak Cancer Centre, ensuring we are on track to meet our appeal target, and put in place clear plans to retain their support beyond the life of the appeal

  5. We will ensure that our supporters feel valued and have a clear understanding of the difference they make, strengthening their commitment to the Charity

  6. We will build and develop excellent systems and processes that support our ambitious targets.

Consultant Physician in Respiratory Medicine and Champion for Early Cancer Diagnosis, Dr Richard Lee

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Activities, achievements and performance in 2020/21

Trustees’ Report Activities, achievements and performance in 2020/21

Activities, achievements and performance in 2020/21

In this section, we review the progress we made towards achieving our 2020/21 objectives, detailing how we performed against each of these objectives.

All the fundraising and charitable activities we undertook supported at least one of our four pillars of work: research, equipment, treatment and care, or patient environments. Our governance activities focused on helping the Charity to grow its income and increase its fundraising activity so that we will be able to fund even more projects in the future.

Our major donors and corporate partners have continued to be extraordinarily generous, supporting our COVID‑19 emergency appeal and helping propel us closer to our £70 million Oak Cancer Centre target, despite everything happening in the world around us.

Charity staff have been largely working remotely throughout 2020/21 in response to government guidance, with a skeleton staff on site to keep the offices open for supporters, on a limited basis.

We are extremely proud to report that in 2020/21 we raised £30.9 million, which was £3.3 million ahead of forecast. We were able to give the hospital £39 million, and were also able to revise our expenditure budget to be able to retain our staff without using the Government furlough funding, resulting in a 2020/21 cost income ratio of 16%.

We predict the impact of coronavirus on fundraising activities and donations will continue into the 2021/22 financial year, particularly around mass participation events, and this is explained further in the ‘Plans going forward’ section.

Our supporters have found inventive ways to fundraise even in lockdown, with supporters completing canoe races in their back gardens, marathons on balconies and sit‑up challenges in living rooms. Our virtual Celebrate a Life service raised almost £113,000, more than the in‑person event ever has, and a range of new virtual events such as Facebook fundraisers and the Marsden Marathon raised over £800,000.

You will find a more detailed analysis of our income and expenditure in the ‘Financial review’ section on pages 20‑26.

Fundraising activities and achievements

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Aims and objectives Achievements and performance
Continue to fundraise for the Oak Cancer Centre, realising By the end of 2020/21 we had raised £65 million for the Oak
pledged income, securing additional, in‑year income and Cancer Centre appeal. This progress was made despite pausing
supporting the board to effectively fundraise for the appeal the appeal for the first half of the year in order to focus on our
COVID‑19 emergency appeal. A major highlight was Wolfson
Foundation’s decision to grant £2 million towards the project.
Fundraise for hospital priority projects, working collaboratively Throughout 2020/21 we worked closely with the hospital to
with the hospital to develop cases for support for new grants ensure the successful delivery of the first year of the new Grants
Strategy. Cases for support were developed and presented
to Trustees and as a result, three grants totalling almost
£11 million were awarded to the hospital for state‑of‑the‑art
medical equipment and for future priorities in clinical
cancer research.
Launch and successfully deliver the start of the Oak Cancer HRH The Duke of Cambridge launched the public phase of
Centre public fundraising appeal, implementing an effective The Royal Marsden Cancer Charity’s appeal at a ceremony to
marketing and communications plan to engage supporters and mark the start of the building work, in October 2020. Over a
staff in the appeal two‑year period, the public appeal will aim to raise the final
millions needed to build the Oak Cancer Centre. The event and
launch of the appeal received national, local and fundraising
media coverage. A social media campaign to support the launch
of the public appeal also reached over one million people.
Despite the pandemic, by the end of the year we had already
raised £1 million towards our public appeal target.
Continue to raise awareness of legacy giving, including the Free We continued to promote gifts in Wills and the Free Will Service
Will Service, through social media, advertising and in hospital via paid social, digital display and press advertising – although
promotion, to increase our number of legacy supporters we paused this at the height of the pandemic when this activity
felt inappropriate. Our new pledger numbers are up 8% from last
year and we have an 84% inclusion rate for new pledges through
the Free Will Service.
Further develop our welcome programme for new supporters We further developed our impact communications and, in
which deepens their engagement with the Charity, and shows response to the challenges of COVID‑19, moved our programme
how their support makes a difference online to ensure we were reaching as many supporters as
possible with stories of how their donations make a difference
to people affected by cancer.
Prepare for the implementation of a new finance system next Working remotely during the COVID‑19 pandemic presented
financial year which will improve both our budgeting and challenges to the finance system project, but during 2020/21 the
reporting processes. design and build phases were successfully completed and the
system went live on 1st April 2021.
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Stars on the Celebrate a Life Christmas tree

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report

Trustees’ Report Activities, achievements and performance in 2020/21

Activities, achievements and performance in 2020/21

Charitable activities and achievements

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Aims and objectives Achievements and performance
Research
We aim to ensure that The Royal Marsden remains at the In 2017, we committed a five year, £15‑million grant to the
forefront of translational cancer research so its work extends, hospital to support translational research, essential facilities
improves and saves more lives at The Royal Marsden, across and equipment and funding of flagship research projects.
the UK and beyond. In September 2020, we committed an additional £4.6m over the
next two years to boost the 2017 grant. The additional funding
will support the development of an Early Diagnosis Hub and a
dedicated Centre for Cancer Biotherapeutics. It will also fund the
establishment of an Artificial Intelligence (AI) Hub for Imaging
and a Perioperative and Surgical Research Unit.
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Research
We aim to ensure that The Royal Marsden remains at the
forefront of translational cancer research so its work extends,
improves and saves more lives at The Royal Marsden, across
the UK and beyond.		 In 2017, we committed a fve year, £15‑million grant to the
hospital to support translational research, essential facilities
and equipment and funding of fagship research projects.
In September 2020, we committed an additional £4.6m over the
next two years to boost the 2017 grant. The additional funding
will support the development of an Early Diagnosis Hub and a
dedicated Centre for Cancer Biotherapeutics. It will also fund the
establishment of an Artifcial Intelligence (AI) Hub for Imaging
and a Perioperative and Surgical Research Unit.
We will continue to fund clinical trials and research posts at
The Royal Marsden including in the area of paediatric cancer
and the impact of COVID‑19 on cancer treatment support,
ensuring support for innovative research and clinical projects.		 The world‑leading Oak Paediatric and Adolescent Drug
Development Unit (OPDDU), which is generously funded by
supporters of The Royal Marsden Cancer Charity including Oak
Foundation, continues to fnd new and improved drugs to treat
children and young people with cancer.
This year, the team opened a new multi‑arm, international study
called ESMART. The trial tests the benefts of several new drugs
and treatments that were previously unavailable for children and
young people with solid tumours who had relapsed.
The OPDDU team also expanded its research programme by
creating a new post for a two‑year sarcoma fellowship, made
possible thanks to funding from Royal Marsden Cancer Charity
supporter’s George and the Giant Pledge.
During the frst wave of the COVID‑19 pandemic, thanks to
funding from The Royal Marsden Cancer Charity and the NIHR
BRC, researchers at The Royal Marsden launched several
studies to investigate the impact of COVID‑19 on cancer
treatment and care.
The CAPTURE study, led by Dr Samra Turajlic, Consultant
Medical Oncologist at The Royal Marsden, has detected a wide
range of antibody levels and COVID‑19‑specifc T‑cells in cancer
patients. These levels were generally comparable to those
found in people who do not have cancer. However, the potential
impact of cancer type on patients’ immune response must still
be considered for further analysis. For example, the study has
identifed that patients with blood cancers have specifc defects
that afect their immune response, which could make them more
vulnerable to COVID‑19. Additionally, the study is evaluating the
vaccine response in cancer patients. More than 500 vaccinated
patients, including 100 with blood cancers, have been enrolled.
The OCTAPUS‑AI study, led by Dr Richard Lee, is analysing
over 900 cancer patient scans using artifcial intelligence. The
aim is to provide clinicians with information on whether changes
in the lung are due to COVID‑19, another infection or a side efect
of treatment. An additional part of this study will be to diagnose
subtle changes of lung cancer recurrence earlier so that it might
be treated earlier and more efectively.

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Aims and objectives Achievements and performance
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Equipment
We will enable The Royal Marsden to purchase and develop In June 2020, the Charity funded a £2.9m Equipment grant
the latest equipment, giving patients access to leading‑edge which included funding a range of imaging technology to ensure
cancer treatments. we can diagnose more cancers at the earliest possible stage.
Equipment Equipment
We will enable The Royal Marsden to purchase and develop
the latest equipment, giving patients access to leading‑edge
cancer treatments.		 In June 2020, the Charity funded a £2.9m Equipment grant
which included funding a range of imaging technology to ensure
we can diagnose more cancers at the earliest possible stage.

This included equipment such as several specialist ultrasound
machines as well as state‑of‑the‑art plasma thawers, thanks to
a donation from Morrisons Foundation. These machines will
beneft hundreds of patients having complex surgery, and will
assist in plasma research studies in which specially selected
frozen plasma is given to patients as a trial treatment for
COVID‑19 infections.
In addition, a further £1.4 million was awarded in September
2020 to fund a replacement 3T MRI machine as part of a new
imaging facility in Sutton. The imaging facility will eventually
house four MRI scanners, three of which will be Charity funded.
We will continue to support funding across surgery and critical
care through an equipment grant aimed at improving patients’
treatment and care.		 In September 2019, the Charity granted £2.7m to fund medical
equipment which would maximise patient beneft. In June 2020,
as part of this grant, two surgical microscopes were purchased
for use in theatres. These are key to performing reconstructive
surgery as they provide superior image quality and real‑time
tissue analysis, and will enable ‘supermicrosurgery’ which
can help to combat the side efects that result from removing
lymph nodes, such as fuid retention in the tissue. A number
of ultrasound machines for theatres were also funded via this
grant, as well as laparoscopic video camera stacks, which enable
surgeons to perform more minimally invasive surgeries using the
surgical robots, meaning more patients can avoid open surgery.
In Critical Care, the grant funded new bedside patient
monitoring systems to provide clinicians with minute‑to‑minute
physiological data, and two specialist pharmacy cabinets. The
new cabinets are able to interface with the hospital’s IT systems
to ensure better stock control, are more secure and are quicker
and easier for staf to use. CCU and Theatres also benefted from
sophisticated electronic infusion pumps with built in ‘smart’
technology – these are essential in delivering safe and efective
infusion therapy to patients in day areas and inpatient settings.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report

Trustees’ Report Activities, achievements and performance in 2020/21

Activities, achievements and performance in 2020/21

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Aims and objectives Achievements and performance
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Treatment and care Treatment and care
We will support the provision of personalised treatment and care
at The Royal Marsden to improve the lives of patients before,
during and after their treatment.		 The Royal Marsden’s molecular diagnostics team, supported
by the Charity, are leaders in the feld of personalised medicine.
This year, using the NovaSeq 6000 genetic sequencing machine,
funded thanks to a very generous donation of £1 million from the
Denise Coates Foundation to the Charity, the team has shown
that next generation sequencing can drastically improve the lives
of patients with Non‑Hodgkin Lymphoma.
Over 100 patients from 14 diferent centres were enrolled onto
the four‑year ENABLE‑NGS trial, which set out to analyse the
participants’ blood samples using the NovaSeq, in order to
diagnose the specifc sub‑type of the disease patients have,
so that new, targeted treatment options can be tried.
In July 2018, the Charity granted £2.6 million to fund projects
which improve patient safety and experience. As part of this, the
‘Innovation Den’ initiative encourages staf from every area of
the Trust to put forward their ideas, with the winners receiving
a grant of between £5,000 and £60,000 to realise their ideas.
One of the recent projects, launched in June 2020, improves
personalised care by helping radiotherapy patients to drink the
required amount of water to fll their bladder prior to receiving
treatment. The radiotherapy team created specially designed,
reusable water bottles that would help patients drink the right
amount of water, improve their general hydration and be kinder
to the environment than using plastic cups.
We will continue to support the hospital in providing treatment
and care for patients at the Oak Centre for Children and Young
People to ensure they have the most age‑appropriate care, suited
to their clinical, emotional and psychological needs.		 Young Royal Marsden patients who experience persistent pain
during and after treatment can now beneft from a new service
run by an expert multidisciplinary team. The Centre for Holistic
Approach to the Management of Paediatric Pain (CHAMP) clinic
is held weekly for patients in the Oak Centre for Children and
Young People. The team, which is funded by The Royal Marsden
Cancer Charity, employs a holistic approach that encompasses
the physical, psychological and emotional needs of patients in
each consultation. The team’s physiotherapist and psychologist
have pivotal roles in supporting the patient to manage their
pain, attend school, connect with friends and engage in
activities they enjoy

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Aims and objectives Achievements and performance
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Patient environments Patient environments
We will continue to deliver our largest‑ever appeal to build the
Oak Cancer Centre, launching the public appeal to raise the
fnal millions.		 The Oak Cancer Centre Appeal Board, which met four times,
virtually, during 2020/21, have been incredibly successful.
To date, thanks to the dedication and generosity of the Appeal
Board and its members’ networks, the Charity has raised
£65 million of a £70‑million target to make the Oak Cancer
Centre possible. The public appeal, which will raise the fnal
millions, was launched by HRH The Duke of Cambridge in
October 2020 at a groundbreaking ceremony.
We will provide funding for wards and facilities across
The Royal Marsden, during the coronavirus pandemic and
after, as the impact of the pandemic continues to afect both
patients and staf.		 In March 2020, The Royal Marsden Cancer Charity launched the
COVID‑19 emergency appeal to provide vital support to patients
and staf at The Royal Marsden during the COVID‑19 crisis. This
appeal raised £2 million thanks to the generosity of the public
and supporters who responded at pace. Wards and units across
the hospital have benefted from these donations, particularly
through the increase of digital resources. Funding has enabled
WiFi upgrades on hospital wards, the rollout of a number of
iPads and laptops for clinicians to carry out virtual consultations
and specialist software for patients to access virtual visiting
apps so they can stay in touch with family and friends whilst
visitor restrictions are still in place. Funds from the emergency
appeal were also spent on counselling and psychological
support for staf.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Plans for future periods

Trustees’ Report Plans for future periods

Plans for future periods

In 2021/22 we plan to raise £28.6m through our fundraising activities. This is slightly down on previous years, due to the timing of some significant Oak Cancer Centre donations, but our underlying income is expected to see an increase linked to the easing of COVID restrictions and the success of our digital fundraising activities.

Future direction

2021/22 is the first year of the Charity’s new three‑year strategy. As part of this strategy we have taken the time to refresh and re‑define why we exist as a Charity and what we are planning to achieve within the next strategic period, working in partnership with the hospital to ensure we are meeting their strategic priorities.

Fundraising activities

Over the next three years we will dedicate ourselves to making £80m of funding available to The Royal Marsden, for the benefit of all cancer patients not just at the hospital but beyond.

We have a number of fundraising activities planned for the next financial year aligned to our three‑year strategic aims:

The new three‑year strategy sets out how we will do this and move into the next phase of our development. We need to continue to attract and retain more supporters by delivering best in class stewardship and increasing brand awareness, while simultaneously driving up efficiency and ensuring we invest in developing our workforce.

  1. Continue the public phase of the Oak Cancer Centre appeal to raise the final millions required, realise pledged income and complete the work of the Appeal Board and private phase of the appeal

  2. Working collaboratively with the hospital, identify priority projects and create cases for support to attract funding against these specific targets

We have identified five strategic objectives for the Charity which we believe will drive income and deliver our organisational vision for the next three years. They look to build on the foundations built over the past three years, while placing an increased focus on innovation:

  1. Grow awareness of the Charity within the local communities of Chelsea and Sutton, particularly in relation to the Oak Cancer Centre appeal

  2. Embed an innovative, agile approach to fundraising, building upon learnings from lockdown, exploring digital fundraising opportunities and virtual products

  3. We will focus on retaining and attracting outstanding people through an inclusive and ambitious culture

  4. In response to the hospital’s plans to further develop the estate, work with hospital staff to develop a case for support and fundraising approach

  5. We will ensure that the tools and systems we have are right for the new world we are operating in and will enable us to deliver our vision.

  6. We will continue to embed a culture of innovation, fostering new product development and better ways of working

  7. Increase the number of supporters who make regular donations, including existing supporters of other programmes and those who have been involved in the COVID‑19 emergency appeal

  8. We will actively seek to expand our reach by harnessing our position as a cancer charity with international impact, whilst continuing to grow awareness within the hospital and local community

  9. Develop new internal systems and processes, specifically, HR and finance software. These new systems will cover areas such as staff management and financial controls. In addition, a newly created fundraising operations team will improve supporter administration and centralise donation management, improving data quality and efficiency.

  10. We will continue to prioritise donor engagement and stewardship, recognising that deepening our relationship with all of our supporters is central to delivering our vision.

Charitable activities

We have a number of charitable activities planned for next year: some are new, while others are part of established ongoing projects. Here, we highlight our main aims for the next financial year and the ways in which we will support the overarching priorities of The Royal Marsden.

Treatment and care

We will support the provision of personalised treatment and care at The Royal Marsden to improve the lives of patients before, during and after their treatment.

We will continue to fund counselling and psychological support for patients a well as for staff, to ensure they provide their very best care every day, and will continue to fund holistic care, patient safety projects and initiatives that improve patients’ quality of life and experience while receiving and recovering from cancer treatment.

Research

We aim to ensure that The Royal Marsden remains at the forefront of translational cancer research so its work extends, improves and saves more lives at The Royal Marsden, across the UK and beyond.

We will continue to fund clinical trials and research posts at The Royal Marsden including in the area of early diagnosis, AI, biotherapeutics, surgical research and the impact of COVID‑19 on cancer treatment, ensuring support for innovative research and clinical projects.

We will invest in a digital histopathology service for the hospital, which will mean a swifter, more responsive patient diagnostic pathway and which will allow The Royal Marsden and the ICR to set up a research unit and become leaders in this emerging field.

Equipment

Patient environments

We will enable The Royal Marsden to purchase and develop the latest equipment, giving patients access to leading‑edge cancer treatments. We will continue to support funding across imaging and radiotherapy equipment grants aimed at improving patients’ treatment and care.

We will continue to deliver our largest‑ever appeal to build the Oak Cancer Centre, continuing the public appeal to raise the final millions.

We will provide funding for wards and facilities across The Royal Marsden, during the coronavirus pandemic and after, as the impact of the pandemic continues to affect both patients and staff.

CyberKnife Lead Radiographer, Helen Taylor, and Therapeutic Radiographer, Hannah Austen, with the new CyberKnife in Sutton

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Financial review

Trustees’ Report Financial review

Financial review

Funds

Overall, the Charity ended the year with total funds of £102.2 million (2019/20: £85.8 million), of which £42.2 million (2019/20: £49.6 million) is restricted and £60.0 million (2019/20: £36.2 million) is unrestricted.

At 31 March 2021 the balance of unrestricted funds designated by Trustees is as follows:

Financial performance

Income

Despite the challenges brought by the COVID‑19 pandemic, the Charity did not find it necessary to make use of the Government furlough scheme, or any other Government support packages put in place during the pandemic. Through the exceptional efforts of the team, we successfully generated £32.9 million in 2020/21 (2019/20: £33.2m). The total income from donations for the year was £25.1 million (2019/20: £27.5 million), a decrease of 8.7%, while legacy income grew by 38.1% to £5.8 million (2019/20: £4.2 million). There were no grants receivable, (2019/20: £0.3 million) and investment income increased to £1.2 million (2019/20: £0.5 million) due to improving dividend yields. The Charity also received donated goods and services of £0.4 million (2019/20: £0.1 million). The remaining income of £0.4 million (2019/20: £0.6 million) relates to the Charity’s trading activities and other miscellaneous income.

Expenditure

Expenditure during the year totalled £48.5 million (2019/20: £42.6 million). This includes an increase of £5.3 million versus 2019/20, in support committed or paid directly to The Royal Marsden. Grants of note for 2020/21 include:

The full breakdown of our grants can be found in Note 6 to the accounts on page 46.

The Royal Marsden Cancer Charity Trustees ensure that expenditure on raising funds and support costs is carefully monitored and controlled. Expenditure on raising funds in the year was 16% of income from donations and legacies (2019/20: 17%).

Financial position

During 2020/21 our investments rebounded, following the losses at the end of 2019/20 caused by the decline in the global markets as a consequence of the COVID‑19 pandemic. Investments now total £116.8 million (2019/20: £85.9 million). Net income/ expenditure is calculated based on total income and expenditure for the year, and any change in the value of investments. Despite increased grant commitments in 2021/22, due to the improved value of our investment portfolio, our net income was £16.4 million, against a net expenditure of £19.6 million in 2019/20.

Royal Marsden Cancer Campaign Trading Company Limited, the Charity’s trading subsidiary, was significantly impacted by the COVID‑19 lockdown which caused the closure of our shop. Though we were able to make online sales, turnover decreased to £212,000 (2019/20: £355,000), a fall of 40%. With cost of sales and other expenditure totalling £49,000 (2019/20: £165,000), the profits from the trading activities were £164,000 (2019/20: £190,000). These will be paid to the Charity under the Gift Aid scheme. Further details can be found in note 15 to the financial statements on page 52.

Restricted Funds

The Charity holds restricted funds for specific purposes which fall within the objectives of the Charity. At 31 March 2021 there was £42.2 million (2019/20: £49.6 million) in funds restricted for specific areas of work as set out in note 22 to the financial statements on page 58.

Unrestricted Funds

Unrestricted funds are allocated at the discretion of the Trustees to further the Charity’s objectives. The Charity’s unrestricted funds at 31 March 2021 were £60.0 million (2019/20: £36.2 million) and included £41.6 million of designated funds (2019/20: £28.0 million).

Periodically Trustees review the need to designate unrestricted funds raised to provide for existing assets, for investment properties or for other specific projects, to be committed and spent in future years. This supports both the Charity’s financial stability and the vital work of the hospital.

After recognising the designated funds the remaining unrestricted funds are general funds or free reserves and at 31 March 2021 these were £18.4 million (2019/20: £8.2 million).

Charity-funded research fellow, Dr Ajla Wasti

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Financial review

Trustees’ Report Financial review

Reserves Policy

Trustees believe it is prudent to hold a level of free reserves, for two reasons. It enables Trustees to take advantage of change and opportunity as it presents itself. It also ensures there are sufficient funds set aside to allow the fundraising operations of the Charity to continue for a period of six months. This will enable the Charity to respond in a considered way to any adverse change in circumstances, giving sufficient time to assess emerging situations and develop and implement plans, without requiring a crisis response.

Any free reserves held at any time that are above £6 million are considered by Trustees to be available for grants to The Royal Marsden.

Projected contributions to planned future projects, with Trustee approval in principle, will be designated from free reserves until such time as a formal bid is submitted for approval and commitment. The Charity works closely with The Royal Marsden to identify how its support can best be applied to fulfil its charitable objectives and meet the need to spend funds raised within a reasonable timeframe, while ensuring that the Charity continues to invest for maximum patient impact.

The Trustees reviewed the Charity’s Free Reserves Policy during the year as part of their regular policy review cycle. Given the Charity’s successful fundraising performance in recent years Trustees considered it appropriate to lower the policy level of free reserves and agreed a change to set a target level of free reserves of £6 million with a minimum of £3 million, equivalent to support six months of direct fundraising expenditure. These reserves are to be held in cash or in funds invested in cash and cash equivalents.

At 31 March 2021 free reserves were £18.4 million, £12.4 million above the target policy level of free reserves. This excess amount is therefore considered immediately available for grants to The Royal Marsden and proposals for grant funding will be prepared for Trustees’ consideration.

Investment Policy and strategy

The investment portfolio is designed to support:

The Charity must not hold, directly or indirectly, investments in tobacco shares. If any fund invests in tobacco shares, the Charity will disinvest from that fund at the earliest opportunity. In addition, careful consideration should be given to the effects of any particular investment on public support for the hospital. There are no other restrictions on the Charity’s power to invest. Listed investments transferred from The Royal Marsden Hospital Charity are held in accordance with a Scheme dated 29 November 2001. The powers of investment under this Scheme are similar to those available under the Trustee Act 2000. The Scheme allows pooling of the Charity’s investments.

The Investment Policy sets out the overall investment objectives in the context of the Charity’s objectives and is reviewed annually. The investment strategy is set by the Trustees based on the Charity’s Investment Policy.

The Board of Trustees has appointed a sub‑committee, the Investment Committee, to make arrangements for the management of investments on its behalf, comprising up to five members.

The overall investment objective is to maximise total return to the extent compatible with the approved risk profile, through a diversified portfolio. The portfolio should be invested in a variety of investment funds. Such funds, and other securities held, should be liquid. Funds should be tradeable at least monthly and invested in assets which are themselves highly liquid in normal market conditions. Given the fundraising pattern of the Charity, the portfolio may consist, for the most part, of equities requiring a long‑term view together with a portion in assets with low market risk and immediately available should the Charity require them at short notice. The possibility of external events affecting the fundraising climate, as well as the Investment Committee’s view of market prospects, will be taken into account by the Investment Committee in its annual (or ad hoc) review of this Investment Policy. Currency exposure should take into account the likely disposition of funding needs, with a minimum of 50% held in sterling. The return benchmark for the overall portfolio should be agreed from time to time by the Investment Committee to reflect current market conditions and its risk appetite.

The members appoint a Chair who reports to the Board of Trustees after each Committee meeting. The Investment Committee ensures that any conflicts of interest are identified, adequately recorded and addressed.

The Investment Committee meets formally twice a year and in between meetings maintains informal contact with managers to monitor investment performance, and to take such actions as are deemed desirable. It is responsible for appointing and monitoring the performance of investment managers, for meeting them formally at least annually and reviewing their performance.

The level of investment funds held by the Charity takes into account income requirements and risk profile. Though the funds are held under the expectation that they will be held for the foreseeable future, they will vary in size depending on:

There is a need for planned liquidity, with cash flow projections supplied to the Investment Committee for anticipated drawdowns or additions. The Charity’s policy is to have access to sufficient cash, liquid assets and projected cash receipts to meet its expenditure commitments over a rolling 12‑month timeframe.

Consultant Medical Oncologist, Professor James Larkin, with a patient

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Financial review

Trustees’ Report Financial review

Investment properties

Investment properties are those transferred on 1 September 2011 from The Royal Marsden Hospital Charity to the Charity, together with a property gifted to the Charity in February 2015. Investment properties are those not considered to be of strategic importance to The Royal Marsden. These are properties that are not occupied by either The Royal Marsden NHS Foundation Trust or the Charity, which are classified as tangible fixed assets. In 2020/21 our investment property on Stewarts Grove was leased to the hospital, and in accordance with our Policy purposes, was therefore moved from investments to fixed assets.

During 2020/21 a full revaluation of all properties owned by the Charity was carried out (both investment properties and those listed as fixed assets). No material change to the valuation completed in September 2017 was found, leading to no change to our asset valuation being required.

Investment performance

In June 2021 we divested from iShares, an exchange traded fund investment, placing funds with M&G plc and Fidelity International Ltd Remaining funds are held with Lansdowne Partners Ltd, Kiltearn Partners LLP and BlackRock Investment Management (UK) Ltd. These are held in combination to support the long‑term objectives of the Charity. Cash is also held, outside the investment portfolio in short‑term deposits accounts to support the short to medium needs of the Charity.

At year‑end, the value of the investment portfolio was £116.8 million. The total return (including dividends) of the investment portfolio (including properties) for the year was 35.2%. The total return of the securities portfolio (which is the investment portfolio, excluding properties) was 34.4%. The rebound in global equity markets following the development and roll‑out of effective COVID‑19 vaccination programmes internationally has significantly improved the value of the securities portfolio. Investment performance is routinely monitored, and on 30 June 2021 the investment portfolio value was £121 million, an increase of 4% since 31 March 2021.

Further investment information is provided in note 17 on page 53.

Remuneration

The Board of Trustees has appointed a sub‑committee, the Remuneration Committee, responsible for ensuring the Charity has a pay framework that enables it to recruit and retain the high quality staff required to realise its strategic ambition, whilst ensuring best value. The members appoint a Chair who reports to the Board of Trustees after each Committee meeting and they meet at least once a year.

The Remuneration Committee agree the Pay Policy, determine any annual pay award and set pay for senior management roles. Annual pay awards reflect relevant internal and external factors including the Charity’s financial position, relevant factors in the voluntary sector, value for money and accordance with equality legislation. Key management personnel including senior management, and Trustees are detailed on page 27‑28. Trustees are volunteers and are not remunerated for their role. An analysis of staff costs, including senior management, is detailed in note 11 on page 49.

Patient, Pippa Vickers, at the Oak Centre for Children and Young People

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Financial review

Trustees’ Report Structure, governance and management

Principal risks and uncertainties

Inadequate IT systems and infrastructure

During the year the Trustees reviewed the Risk Policy and have given consideration to the major risks to which the Charity is exposed.

The Charity relies on the hospital’s IT systems and infrastructure, some of which lack the ability to evolve to meet the business needs of the Charity, particularly when considering increased agile working. The Charity works closely with the hospital to ensure issues are raised and resolved in a timely manner, and prioritisation of resources, for example introducing Microsoft Office 365 during 2020/21 across the Charity and ensuring that there is a Charity representative on the hospital’s Digital Workplace Programme Board.

The Trustees actively seek to manage the Charity’s key strategic risks and consider that the Charity has established adequate systems and procedures to manage those risks. The current key strategic risks are considered to be:

Widespread outbreak of COVID‑19

The ongoing outbreak of COVID‑19 and the resulting restrictions continues to introduce significant uncertainty, as well as increasing both the likelihood and impact of existing risks. The most significant impact is the resulting loss of income from our inability to deliver and participate in large fundraising events such as The Banham Marsden March, Virgin Money London Marathon and numerous challenge events. We have developed virtual fundraising products to replace and augment fundraising activity potential impacted by COVID‑19 related restrictions, while also encouraging our supporters to find new and creative ways of fundraising from home. The Reserves Policy, detailed on page 22, covers six months of operating costs and sufficient availability of accessible cash.

Risk to the value of investments

There is always a risk of poor performance on our investments, particularly given the current uncertain economic climate. The work of the Investment Committee, whose members comprises those with significant, proven and current professional financial investment expertise and experience, helps to mitigate this risk.

The Investment Committee undertakes to:

Political and economic uncertainty

The Charity’s senior management team continually assess the impact and possible mitigations of a number of national and international issues, including uncertainty surrounding COVID‑19 and detrimental changes to tax legislation including gift aid and the probate fee structure. Although the risk factors are all external and therefore difficult to mitigate, the Charity will continue to diversify its income streams to minimise the impact of the current risks on overall income generation.

These risks, and other identified risks relating to the Charity, are analysed in a formal risk register, which is reviewed regularly by the Charity’s senior management team, includes controls and actions to mitigate them and is shared with Trustees on a quarterly basis.

Structure, governance and management

Structure and governance

The Royal Marsden Cancer Charity (‘the Charity’) is a company limited by guarantee (Company no. 04615761) and a registered charity (Charity no. 1095197) governed by its memorandum and articles of association. The Trustees constitute Directors of the Charity for the purposes of company law.

On 9 September 2010, The Royal Marsden Cancer Campaign changed its name to The Royal Marsden Cancer Charity to reflect its positioning as a long‑term charity supporting the work of The Royal Marsden NHS Foundation Trust (The Royal Marsden).

On 1 September 2011, The Royal Marsden Hospital Charity (RMHC) transferred its assets, liabilities and functions to The Royal Marsden Cancer Charity. A Deed of Covenant was also signed on 1 September 2011, whereby RMHC covenants to transfer all future income to the Charity.

On 29 February 2008, The Royal Marsden Hospital Cancer Fund merged with the Charity and transferred all of its assets at that date to the Charity. The Royal Marsden Hospital Cancer Fund was removed from the Central Register of Charities on 29 February 2008, and any future donations or legacies for the Cancer Fund are now received into The Royal Marsden Cancer Charity.

Board of Trustees

The Board of Trustees shall not be less than four and (unless otherwise determined by Special Resolution) no more than ten. The Board of Trustees of The Royal Marsden Cancer Charity includes:

The skills mix of the Trustees is regularly reviewed to ensure that the Board of Trustees has all the necessary skills required to contribute fully to the Charity’s development. We have an induction programme for new Trustees to ensure that they all have the specific knowledge of the Charity, and general knowledge of their responsibilities as a Charity Trustee, to enable them to carry out their roles. A reference manual is provided that includes material on the Charity Commission’s regulations and guidelines and The Royal Marsden Cancer Charity’s strategy, business plan, policies and processes. Additionally, individual meetings are arranged with key hospital and Charity personnel.

At 31 March 2021 the Board of Trustees comprise nine Trustees, six of whom are independent, from a range of sectors and industries, all of whom are Members of the Charity and Directors of the charitable company.

All decisions must be made by a quorum of Trustees that includes a majority of independent Trustees. During the year ended 31 March 2021, Trustees met as a body five times, and additionally considered specific items via email.

No Trustee received any remuneration from the Charity during the period (2019/20: £nil).

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Structure, governance and management

Trustees’ Report Structure, governance and management

Management

The day‑to‑day management of the Charity is delegated to the Managing Director. All strategic and other major decisions are considered and taken by the Trustees. The management of the Charity falls into seven areas of responsibility:

Finance and administration

This covers finance and accounting, legal and administrative requirements of the Charity, the day to day management of which is delegated to the Associate Director of Finance. The Company Secretary responsible for all secretariat matters is the Chief Financial Officer of The Royal Marsden.

Assessment and approval of business plan

The Charity management team prepares a detailed business plan and annual budget for consideration and approval by the Trustees. The plan lays out the operational and financial objectives for the financial year ahead.

Management of funds and activities transferred

This covers the use of restricted and designated funds including those transferred from The Royal Marsden Hospital Charity. The everyday management of these funds is delegated to nominated fund‑holders at the hospital.

Identification and approval of projects for funding

The Charity achieves its objectives by fundraising for key projects in support of the hospital (see ‘Objectives’ and ‘Activities, achievements and performance in 2020/21’ sections on pages 4‑17).

Protection and social investment

This covers the management and control of fundraising regarding supervising fundraising, protecting the Charity’s reputation, money and other assets, following fundraising laws and regulation, adhering to recognised standards for fundraising, and being open and accountable. More information on this is detailed in the ‘Our fundraising practices’ section on pages 8‑9.

The Trustees are committed to ensuring that the Charity’s fundraising activities are in line with the strategic goals of The Royal Marsden. Therefore, new fundraising projects are initially identified with and approved by the hospital, before being reviewed and considered by the Trustees for approval.

Fundraising and communications

Diversity and inclusion

This encompasses all fundraising appeals and initiatives, and the way that the Charity presents itself to the outside world.

Diversity and Inclusion (D&I) at all levels of the organisation is a priority. We believe having an inclusive and welcoming culture allows staff to reach their full potential, and this is a fundamental part of our success. We have in place a D&I Policy, as well as a Steering Committee and specific working groups, whose focus is to ensure we are consistently addressing key workstreams relevant to D&I, such as recruitment, staff engagement and training, as well as in fundraising and marketing communications.

Relationships with related parties

The Royal Marsden NHS Foundation Trust

The Royal Marsden Hospital Charity

The Charity’s close working and governance relationship with The Royal Marsden NHS Foundation Trust provides an invaluable integrated model of working. At a national level, Dame Cally Palmer, Chief Executive of The Royal Marsden NHS Foundation Trust and Trustee of the Charity, is also the National Cancer Director for NHS England.

The Royal Marsden Hospital Charity is a registered charity with similar charitable objectives to The Royal Marsden Cancer Charity. The Trustee of The Royal Marsden Hospital Charity is The Royal Marsden NHS Foundation Trust (as a corporate Trustee).

All the assets and activities of The Royal Marsden Hospital Charity, excluding the endowment funds, were transferred to The Royal Marsden Cancer Charity. This took place between 2011 and 2013 to allow The Royal Marsden Cancer Charity to manage the application of these funds in accordance with the terms of the original endowments.

The Royal Marsden NHS Foundation Trust also provides a number of services to the Charity, which are recharged under a contractual service level agreement. The total amount payable to The Royal Marsden for its staff under the service level agreement for the year was £352,336 (2019/20: £416,048), with an additional £20,561 (2019/20: £9,312) in relation to other ancillary services.

The Royal Marsden Cancer Charity now manages the assets, liabilities and functions of The Royal Marsden Hospital Charity as detailed in note 17 on page 53.

In addition, The Royal Marsden pays other expenses on behalf of the Charity and at 31 March 2021, these amounts totalled £551,229 (2019/20: £290,927), excluding grants payable, and are reflected in note 20 on page 57.

The Royal Marsden Cancer Charity holds listed investments on behalf of The Royal Marsden Hospital Charity in relation to these funds. The amount due to The Royal Marsden Hospital Charity at 31 March 2021 totalled £78,390 (2019/20: £78,390).

The Charity makes grants to The Royal Marsden in accordance with its objects. Grant and revenue funding awarded to The Royal Marsden during the year was £39.0 million (2019/20: £33.5million).

Royal Marsden Cancer Campaign Trading Company Limited

Transactions with Royal Marsden Cancer Campaign Trading Company Limited, the subsidiary company, are not disclosed separately as the company is 100% owned by the Charity, and thus any transactions with the company are exempted from disclosure under section 33 of FRS 102.

Grants payable owed to The Royal Marsden at 31 March 2021 totalled £81.3 million (31 March 2020: £71.9 million).

The Charity has provided an interest‑free loan of £226,000 (2019/20: £226,000) to The Royal Marsden to offer support to staff for season tickets and bicycle purchases. The amount and terms of the loan are reviewed and renewed annually.

The Institute of Cancer Research, London (ICR)

Many of the hospital’s clinicians work very closely, and have joint appointments, with The Royal Marsden’s academic partner, the ICR. Grants made for projects at The Royal Marsden could be used on resources provided by the ICR.

At 31 March 2020, three of the Trustees of the Charity – the Chair, the Chief Executive and the Medical Director also serve on the Board of The Royal Marsden NHS Foundation Trust. All decisions of the Charity must be made by a quorum of Trustees that includes a majority of Trustees independent of The Royal Marsden (see list of Trustees on page 32).

Donations to the Charity from a Trustee or a related party

Donations without conditions attached received during the year from a Trustee or related party totalled £50 (2019/20: £300). Restricted donations of £183,000 were received by the Charity from its Trustees in 2020/21 (2019/20: £10,947).

None of the Trustees or members of The Royal Marsden NHS Foundation Trust Board or parties related to them has undertaken any transactions with the Charity (excluding donations) or received any benefit from the Charity in payment or kind.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Trustees’ Report Statement of Trustees’ responsibilities

Trustees’ Report Reference and administrative information

Statement of Trustees’ responsibilities

The Trustees (who are also Directors of The Royal Marsden Cancer Charity for the purposes of company law) are responsible for preparing the annual Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Each of the Trustees confirms that:

Company law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Charity and the Group, and of the incoming resources and application of resources, including the income and expenditure, of the Group for that period.

– So far as he/she is aware, there is no relevant audit information of which the Charity’s auditor is unaware

– He/she has taken all the steps that he/she ought to have taken as a Trustee to make himself/herself 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:

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006. The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Charity purchased insurance to protect it from any loss arising from the neglect or default of its Trustees, employees and agents, and to indemnify the Trustees or other officers against the consequences of any neglect or default on their part. The insurance premium paid by the Charity during the year totalled £7,644 (2019/20: £5,250) and provides cover of up to a maximum of £5.0 million (2019/20: £5.0 million).

Approved by the Trustees on 21 September 2021 and signed on their behalf by Charles Alexander:

The Trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Charity and the Group, 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 the Group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Charles Alexander Chairman The Royal Marsden Cancer Charity

Reference and administrative information

Charity name The Royal Marsden Cancer Charity The Royal Marsden Cancer Charity
Charity registration number 1095197
Company registration number 04615761
Registered ofce and
operational address		 The Royal Marsden
203 Fulham Road
London
SW3 6JJ
Website www.royalmarsden.org
Banker Lloyds Bank plc
25 Gresham Street
London
EC2V 7HN
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Investment managers Lansdowne Partners Ltd
15 Davies Street
London
W1K 3AG		 Charles Stanley
55 Bishopsgate
London
ECN 3AS
Kiltearn Partners LLP
3 Exchange Street
3 Semple Street
Edinburgh
EH3T 8BL		 Blackrock Investment
Management (UK) Ltd
12 Throgmorton Avenue
London
EC2N 2DL
M&G Securities Limited
PO Box 9038
Chelmsford
CM99 2XF		 Fidelity International
4 Cannon Street
London
EC4M 5AB
Solicitors Slaughter and May
One Bunhill Row
London
EC1Y 8YY		 Taylor Vinters LLP
Tower 42, 33rd Floor
25 Old Broad Street
London
EC2N 1HQ
Ropes & Gray LLP
60 Ludgate Hill
London
EC4M 7AW		 Ashurst LLP
London Fruit & Wool Exchange
1 Duval Square
London
E1 6PW
Norton Rose Fulbright LLP
3 More London Riverside London
SE1 2AQ

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Reference and administrative information

Trustees’ Report Reference and administrative information

Trustees

The following individuals were Trustees and served as such throughout the year, except where shown:

----- Start of picture text -----
Trustees Capacity
Charles Alexander Chairman, The Royal Marsden NHS Foundation Trust
Ex‑officio Trustee
Baroness Olivia Bloomfield Elected Trustee – from September 2020
Varun Chandra Elected Trustee – from June 2021
Sir Douglas Flint CBE Elected Trustee
Anya Hindmarch CBE Elected Trustee – from September 2020
Sir Terry Leahy Elected Trustee
Richard Oldfield OBE Elected Trustee – until September 2020
Dame Cally Palmer Chief Executive, The Royal Marsden NHS Foundation Trust
Ex‑officio Trustee
Lady Helen Taylor Elected Trustee
Brenda Trenowden CBE Elected Trustee
Richard Turnor Elected Trustee – until September 2020
Dr Nicholas van As Medical Director, The Royal Marsden NHS Foundation Trust
Appointed Trustee
----- End of picture text -----

Investment Committee

The following individuals are members of the Investment Committee and served as such throughout the year:

Remuneration Committee

The following individuals are members of the Remuneration Committee and served as such throughout the year:

*Trustees of the Charity

Company Secretary

Marcus Thorman – Chief Financial Officer, The Royal Marsden NHS Foundation Trust

Senior management

The following key senior management personnel served the Charity during the financial year and up to the time this report was approved:

----- Start of picture text -----
Senior manager Capacity
Antonia Dalmahoy Managing Director
Peter Robson Associate Director of Finance (to 31 July 2020)
Patrick Barker Associate Director of Finance (3 August 2020 – 2 April 2021)
Associate Director of Corporate Services & Grants (from 5 April 2021)
Antonia Newman Associate Director of Philanthropy & Partnerships
Vicky Johnson Associate Director of Public Fundraising (from 1 May 2021)
----- End of picture text -----

Exemptions from disclosure

No details concerning the names of Trustees, the Charity’s principal address, name of any chief executive officer or other senior staff members have been withheld from this report.

----- Start of picture text -----
Consultant Medical Oncologist,
Dr Samra Turajlic
----- End of picture text -----

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Independent auditor’s report

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Independent auditor’s report

Independent auditor’s report to the members of The Royal Marsden Cancer Charity

Basis for opinion

Opinion

We have audited the financial statements of The Royal Marsden Cancer Charity (the ‘charitable parent company’) and its subsidiary (collectively known as the ‘group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and charitable parent company balance sheets, the consolidated cash flow statement, and the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In our opinion, the financial statements:

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report including the strategic report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, 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 group’s and the charitable parent 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 group or the charitable parent company or to cease operations, or have no realistic alternative but to do so.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Independent auditor’s report

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Independent auditor’s report

Auditor’s responsibilities for the audit of the financial statements

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

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

We did not identify any irregularities, including fraud.

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Shachi Blakemore

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

Staff Nurse in the Critical Care Unit, Sojan Varghese

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Consolidated statement of financial activities

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Balance sheets

Consolidated statement of financial activities

(incorporating an income and expenditure account)

Balance sheets

As at 31 March 2021

For the year ended 31 March 2021

Note 2021 2021 2021 2020 2020 2020
Unrestricted
funds		 Restricted
funds		 Total
funds		 Unrestricted
funds		 Restricted
funds		 Total
funds
£’000 £’000 £’000 £’000 £’000 £’000
Income from:
Donations and legacies 2 6,879 24,356 31,235 6,258 25,878 32,136
Trading activities 3 213 ‑ 213 355 ‑ 355
Investments 4 1,229 ‑ 1,229 454 ‑ 454
Other 26 209 235 9 203 212
Total income 8,347 24,565 32,912 7,076 26,081 33,157
Expenditure on:
Raising funds 5 4,949 ‑ 4,949 5,375 72 5,447
Investment management costs 5 64 ‑ 64 121 ‑ 121
Trading activities 5 49 ‑ 49 165 ‑ 165
Charitable activities
Charitable support of the hospital 6 12,839 26,797 39,636 8,987 25,329 34,316
Research 7 160 3,139 3,299 114 1,844 1,958
Patient Amenities 8 103 351 454 11 512 523
Staf Amenities 9 4 17 21 2 93 95
13,106 30,304 43,410 9,114 27,778 36,892
Total expenditure 18,168 30,304 48,472 14,775 27,850 42,625
Net gains/(losses) on investments 17 31,924 73 31,997 (10,074) (33) (10,107)
Net (expenditure)/income 14 22,104 (5,666) 16,437 (17,773) (1,802) (19,575)
Transfers between funds 22 1,713 (1,713) ‑ 5,309 (5,309) ‑
Net movement in funds 23,817 (7,379) 16,437 (12,464) (7,111) (19,575)
Reconciliation of funds
Total funds brought forward at 1 April 22 36,198 49,560 85,758 48,662 56,671 105,333
Total funds carried forward
at 31 March		 22 60,015 42,180 102,195 36,198 49,560 85,758

All movements on reserves and recognised gains and losses are shown above, and all activities are continuing. As permitted by section 408 of the Companies Act 2006, no separate Statement of Financial Activities or Income and Expenditure account has been presented for the Charity alone.

Note The Group The Charity The Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Fixed assets
Tangible fxed assets 16 12,837 11,869 12,837 11,869
Investments 17 116,784 85,877 116,784 85,877
129,621 97,746
129,621		 97,746
Current assets
Stocks 18 34 36 ‑ ‑
Debtors 19 13,273 7,706 13,477 8,007
Short‑term cash deposits 10,128 20,303 10,128 20,303
Cash at bank and in hand 31,926 33,197 31,752 32,927
Total Current Assets 55,361 61,242 55,357 61,237
Liabilities
Creditors: amounts falling due within 1 year 20 (79,588) (63,696) (79,584) (63,691)
Net current assets (24,227) (2,454) (24,227) (2,454)
Total assets less current liabilities 105,394 95,292 105,394 95,292
Creditors: amounts falling due after 1 year 21 (3,199) (9,534) (3,199) (9,534)
Total net assets 102,195 85,758 102,195 85,758
The funds of the Charity 22
Restricted income funds
Restricted funds 42,250 49,630 42,250 49,630
Restricted funds in defcit (68) (70) (68) (70)
Unrestricted income funds
General funds/free reserves 18,395 8,181 18,395 8,181
Designated funds:
Tangible fxed assets fund 12,837 11,869 12,837 11,869
Investment properties fund 890 1,980 890 1,980
Other designated funds 27,891 14,168 27,891 14,168
Total Charity funds 22 102,195 85,758 102,195 85,758
The fnancial statements on
pages 38‑63 were approved and
authorised for issue by the Board
of Trustees on 21 September 2021,
and were signed on its behalf by:		 CharlesAlexander

Charles Alexander Chairman

Company no. 04615761 Charity no. 1095197

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Consolidated cash flow statement

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

Consolidated cash flow statement

For the year ended 31 March 2021

Notes 2021 2020
£’000 £’000
Cash fows from operating activities
Net cash (used in) provided by operating activities A (12,675) 21,156
Cash fows (used in) from investing activities
Dividends, interest and rent from investments 1,229 454
Proceeds from sale of investments 62,121 53,585
Payments to acquire tangible fxed assets ‑ (85)
Purchase of investments 62,121 (57,223)
Net cash used in/(provided by) investing activities 1,229 (3,269)
Change in cash and cash equivalents in the reporting period (11,446) 17,887
Cash and cash equivalents at 1 April B 53,500 35,613
Cash and cash equivalents at 31 March B 42,054 53,500
A. Reconciliation of net expenditure/(income) to net cash fow from operating activities
Net income/(expenditure) for the reporting period
(as per the Statement of Financial Activities)		 16,436 (19,575)
Adjustments for:
Depreciation charges 122 172
(Losses) gains on investments and revaluation of fxed assets (31,997) 10,107
Dividends, interest and rents from investments (1,229) (454)
Decrease in stocks 2 5
(Increase)/decrease in debtors (5,566) 1,987
Increase in creditors 9,557 28,915
Net cash (used in) provided by operating activities (12,675) 21,156
B. Analysis of cash, cash equivalents and net debt
Short‑term cash deposits 10,128 20,303
Cash in hand 31,926 33,197
Total cash and cash equivalents at 31 March 42,054 53,500

Notes to the financial statements for the year ended 31 March 2021

Principal accounting policies

Preparation of the financial statements requires the Trustees and management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include the useful economic life of tangible fixed assets for the purposes of determining the depreciation charge and residuary legacy income recognition.

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006 and UK Generally Accepted Practice.

In addition to the above, the full impact of the pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the Charity’s activities, funders, suppliers and the wider economy. Estimates used in the financial statements, particularly with respect to the value of investment properties and listed investments are subject to a greater degree of uncertainty and volatility. The Charity is a public benefit entity. The financial statements are presented in sterling and rounded to the nearest thousand pounds.

As set out in the Trustees’ report, the Trustees have considered the impact of the pandemic on the group and the Charity and have concluded that although there may be some negative consequences, it is appropriate for the Group and Charity to continue to prepare its financial statements on the going concern basis.

In future years, the key risks to the Charity are a fall in

b) Income

income from donations, legacies or investments and a fall in the value of its investments, but the Trustees have arrangements in place to mitigate those risks (see the ‘Reserves Policy’ and ‘Principal risks and uncertainties’ sections on pages 22 and 24 of the annual report for more information).

Income is recognised once the Charity is entitled to receipt, it is probable (more likely than not) that the resources will be received and the amount can be measured with reasonable reliability.

Legacies

These financial statements consolidate the results of the Charity and its wholly owned subsidiary, Royal Marsden Cancer Campaign Trading Company Limited, on a line‑by‑line basis. Transactions and balances between the Charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the Charity’s balance sheet. A separate statement of financial activities, or income and expenditure account, for the Charity itself is not presented because the Charity has taken advantage of the exemptions afforded by section 480 of the Companies Act 2006 and paragraph 15.11 of SORP (FRS 102) 2015.

Legacies are accounted for as income either upon receipt or where the receipt of the legacy is probable.

Receipt is probable when:

Legacies subject to a life interest held by another party are not recognised until all other interests cease.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

Donated goods, services and facilities

Donated goods for resale are recognised when they are sold.

Donated goods given for use by the Charity are included in the SOFA as income when receivable.

Donated services and facilities (Gifts in Kind) are valued and included as income and expenditure in the SOFA at the value that the Charity estimates it would pay in the open market for an equivalent supply of service or facility.

Donated services from our volunteers are not included within the financial statements.

Investment income

Investment income generated from the Charity’s portfolio is treated entirely as unrestricted income. Income generated on the portion of the portfolio held in endowment funds is shown as restricted income.

c) Expenditure and irrecoverable VAT

Expenditure is included in the statement of financial activities when incurred and includes any attributable VAT that cannot be recovered. Expenditure is allocated to the particular activity where the cost relates directly to that activity, and comprises the following:

The costs of raising funds

These are those costs attributable to generating income for the Charity, other than costs incurred in undertaking charitable activities or trading activities in furtherance of the Charity’s objectives.

The costs of raising funds represent fundraising costs, direct costs and overheads associated with raising donated income (including recharged back office costs from The Royal Marsden NHS Foundation Trust), together with fees paid to investment managers in connection with the management of the Charity’s listed investments and the fees paid to property managers in connection with the management of the Charity’s investment properties. Only investment manager’s fees charged separately to the Charity are shown within expenditure on raising funds. These costs include an apportionment of support costs as shown in note 10 on page 48.

Charitable activities costs are categorised under the headings of the Charity’s objects.

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objectives of the Charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs.

The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 10 on page 48.

Grants payable

These are payments made to The Royal Marsden NHS Foundation Trust in furtherance of the charitable objectives of the Charity. They are included in the statement of financial activities when approved and when The Royal Marsden NHS Foundation Trust has been informed of the decision to make the grant and has satisfied all related conditions.

Grants approved but not paid at the end of the financial year are accrued for as grant commitments. Grants where the beneficiary has not been informed or the final award is still within the control of the Charity are not accrued for, but are noted as financial commitments in the notes to the financial statements.

Support costs

These costs, which include governance costs, are those that do not relate directly to a single activity. These comprise costs incurred that are directly attributable to the administration of the Charity, management of the Charity’s assets, organisational procedures and the necessary legal procedures for compliance with statutory and constitutional requirements, including some staff costs, external audit costs and HR and IT support.

The majority of costs are directly attributable to specific activities. Certain shared costs are apportioned between fundraising costs and charitable activities on an appropriate basis.

Office costs and recharged costs are allocated based on the direct costs incurred by each activity. The analysis of support costs and the bases of apportionment applied are shown in note 10 on page 48.

d) Tangible fixed assets and intangible fixed assets

Tangible fixed assets are stated at their transaction value. Depreciation is provided so as to write off the cost of fixed assets on a straight‑line basis over their expected useful lives, as follows:

----- Start of picture text -----
Tangible asset Duration
----- End of picture text -----

Tangible asset Duration
Freehold land and buildings 50 years (buildings only)
Improvements to
freehold and long
leasehold properties		 25 years

Certain properties previously held as investments have been reclassified under the new SORP with effect from 1 April 2014 and were recognised at their carrying or market value at that date. Under the transitional provisions of FRS 102, this value has been treated as deemed cost from 1 April 2014. Where there is a change in use of a property resulting in a transfer from investment property to tangible fixed assets the value of the transfer is the market value of the property as at the date of the change in use.

Property and buildings depreciation is recognised in the statement of financial activities and charged against charitable activities where the building is occupied by The Royal Marsden for its essential purposes and against support costs where the building is occupied as offices by the Charity.

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated using the straight‑line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives, as follows:

– Website – intangible assets (other fixed assets) – three years

e) Fixed asset investments

Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date.

Investment properties are revalued to market value every three years unless in the intervening interval there is evidence of a material movement in valuation. The last full valuation took place in February 2021. The valuations from this review do not give rise to any material changes in values.

Realised and unrealised gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise. The Charity’s investment in the subsidiary company is valued at cost.

The main form of financial risk faced by the Charity is that of volatility in equity markets and other investment markets due to wider economic conditions, and changes in sentiment concerning equities and within particular sectors or subsectors. Further information on the Charity’s investments can be found in note 17 on page 53.

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

f) Stocks

Stocks of publications and consumables for resale are valued at the lower of cost and net realisable value.

g) Debtors

Debtors are amounts owed to the Charity. They are measured on the basis of the amount recoverable. These include concessionary loans to The Royal Marsden NHS Foundation Trust – these are measured at the amount originally loaned, which is the amount repayable.

h) Cash and cash equivalents

Cash at bank and in hand is held to meet the day‑to‑day running costs of the Charity and grant payments as they fall due.

i) Creditors

Creditors are amounts owed by the Charity. They are measured at the amount that the Charity expects to have to pay to settle the debt. Amounts that are payable in more than a year are shown as long‑term creditors.

j) Realised gains and losses

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening carrying value (or purchase date if later).

k) Restricted funds

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor‑imposed conditions.

l) Designated funds

Designated funds represent funds that have been set aside out of unrestricted funds by the Trustees for specific purposes.

m) General funds

General funds represent those monies that are freely available for application towards achieving any charitable purpose that falls within the Charity’s charitable objects.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

2. Donations and legacies

2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£’000 £’000 £’000 £’000 £’000 £’000
Donations 3,411 21,684 25,095 4,418 23,064 27,482
Legacies 3,102 2,672 5,774 1,740 2,485 4,225
Grants receivable ‑ ‑ ‑ ‑ 329 329
Donated goods and services 366 ‑ 366 100 ‑ 100
3. Trading activities 6,879 24,356 31,235 6,258 25,878 32,136
2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£’000 £’000 £’000 £’000 £’000 £’000
Activities of the trading company 213 ‑ 213 355 ‑ 355

5. Raising funds and investment management costs

Note 2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£’000 £’000 £’000 £’000 £’000 £’000
Raising funds
Fundraising costs 960 ‑ 960 982 72 1,054
Outsourced fundraising costs 52 ‑ 52 245 ‑ 245
Marketing and consultancy 377 ‑ 377 981 ‑ 981
Donated goods and services 366 ‑ 366 100 ‑ 100
Support costs 10 3,194 ‑ 3,194 3,067 ‑ 3,067
4,949 ‑ 4,949 5,375 72 5,447
Trading activities 49 ‑ 49 165 ‑ 165
Investment management costs 4,998 ‑ 4,998 5,540 72 5,612
Investment properties'
management costs		 63 ‑ 63 119 ‑ 119
Support costs 10 1 ‑ 1 2 ‑ 2
64 ‑ 64 121 ‑ 121

4. Investments

2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£’000 £’000 £’000 £’000 £’000 £’000
Income from listed investments 727 ‑ 727 ‑ ‑ ‑
Rental income from investment properties 65 ‑ 65 67 ‑ 67
Interest receivable 437 ‑ 437 387 ‑ 387
1,229 ‑ 1,229 454 ‑ 454

The Trustees have contracted the provision of various day‑to‑day administration services for the Charity, to The Royal Marsden NHS Foundation Trust. The Royal Marsden charges for those services, as shown above and elsewhere where indicated (see note 10 on page 48).

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

6. Charitable support of the hospital

Capital projects Note 2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£’000 £’000 £’000 £’000 £’000 £’000
Equipment grants:
CyberKnife, MRI and equipment 1,439 ‑ 1,439 (1,228) ‑ (1,228)
Priority Medical Equipment 2,919 ‑ 2,919 ‑ ‑ ‑
Capital building grants:
Oak Cancer Centre ‑ 25,000 25,000 ‑ 25,000 25,000
Other grants 4,358 25,000 29,358 (1,228) 25,000 23,772
LIBOR grant ‑ ‑ ‑ ‑ 329 329
Innovation and Education 4,617 ‑ 4,617 ‑ ‑ ‑
Sutton Hospital Site Enabling Works 3,200 ‑ 3,200 118 ‑ 118
Improving Quality and
Services for Patients		 ‑ ‑ ‑ 5,698 ‑ 5,698
Oak Centre for Children
and Young People		 ‑ ‑ ‑ 3,633 ‑ 3,633
COVID Emergency Fund ‑ 1,797 1,797 ‑ 203 203
7,817 1,797 9,614 9,449 532 9,981
Depreciation of properties used in
futherance of charitable activity		 59 ‑ 59 59 ‑ 59
Support costs 10 605 ‑ 605 707 ‑ 707
12,839 26,797 39,636 8,987 25,532 34,519

The Charity makes grants to The Royal Marsden NHS Foundation Trust in accordance with its objectives and aims as set out in the Trustees’ report.

7. Research

Note 2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£’000 £’000 £’000 £’000 £’000 £’000
Revenue funding to the hospital ‑ 194 194 ‑ (31) (31)
Other expenditure:
Staf costs recharged 110 2,040 2,150 74 891 965
Laboratory and consumables costs ‑ 92 92 ‑ 320 320
Research support and facilities ‑ 813 813 ‑ 664 664
Support costs 10 50 ‑ 50 40 ‑ 40
160 3,139 3,299 114 1,844 1,958

The salaries of clinical staff funded by the Charity are recharged by the hospital or other employing institutions.

8. Patient amenities

Note 2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£’000 £’000 £’000 £’000 £’000 £’000
Patient support and facilities 96 351 447 ‑ 512 512
Support costs 10 7 ‑ 7 11 ‑ 11
103 351 454 11 512 523

9. Staff amenities

Note 2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£’000 £’000 £’000 £’000 £’000 £’000
Staf support and facilities 4 17 21 ‑ 93 93
Support costs 10 ‑ ‑ ‑ 2 ‑ 2
4 17 21 2 93 95

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

10. Support costs

Support costs comprise amounts recharged by The Royal Marsden NHS Foundation Trust to the Charity and other direct costs. Support and overhead costs are allocated between fundraising activities and charitable activities. Governance costs are those support costs that relate to the strategic and day‑to‑day management of the Charity.

of the Charity.
Raising funds Investment
management
costs		 Charitable support
of the hospital		 Research Patient amenities Staf amenities 2021 Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Note 5 5 6 7 8 9
Finance and administration 1,557 1 295 25 3 ‑ 1,881
Management support 101 ‑ 19 2 ‑ ‑ 122
IT support 142 ‑ 27 2 1 ‑ 172
HR support 286 ‑ 54 5 1 ‑ 346
Marketing and PR support 1,108 ‑ 210 17 2 ‑ 1,337
3,194 1 605 51 7 ‑ 3,858
Raising funds Investment
management
costs		 Charitable support
of the hospital		 Research Patient amenities Staf amenities 2020 Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Note 5 5 6 7 8 9
Finance and administration 1,882 2 434 25 7 2 2,352
Management support 139 ‑ 32 2 ‑ ‑ 173
IT support 112 ‑ 26 1 1 ‑ 140
HR support 226 ‑ 52 3 1 ‑ 282
Marketing and PR support 708 ‑ 163 9 2 ‑ 882
3,067 2 707 40 11 2 3,829

11. Staff costs and Trustees’ remuneration

11a. Staff costs

Until 31 March 2018 all staff working for the Charity were employed by The Royal Marsden NHS Foundation Trust and supplied to the Charity under a service‑level agreement. On 1 September 2018 Charity staff previously employed by The Royal Marsden NHS Foundation Trust, were transferred under TUPE to the Charity. All new employees working for the Charity from 1 April 2018 were employed directly by the Charity.

A proportion of corporate services staff are employed under joint contracts with The Royal Marsden NHS Foundation Trust and the Charity. Their costs together with additional support services provided by The Royal Marsden NHS Foundation Trust to the Charity are recharged to the Charity under a service level agreement. Staff costs during the year were as follows:

agreement. Staf costs during the year were as follows:
2021 2020
£’000 £’000
The Group and the Charity
Wages and salaries 2,835 2,752
Social security costs 303 295
Other pension costs 225 230
3,363 3,277
Agency costs 348 275
3,711 3,552

The average number of employees (full‑time equivalent) of the Group and the Charity analysed by function during the year was:

Headcount Headcount Full time equivalent Full time equivalent
2021 2020 2021 2020
Fundraising 73 73 65 65
Charitable activities 6 6 4 4
Support 2 2 2 2
81 81 71 71

Allocations are made on the basis of direct costs incurred by each activity.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

The total number of employees whose emoluments for the year (not including pension contributions) exceeded £60,000 was as follows:

£60,000 was as follows:
2021 2020
£’000 £’000
The Group and the Charity
£60,001 – £70,000 4 4
£70,001 – £80,000 1 2
£80,001 – £90,000 1 1
£90,001 – £100,000 ‑ ‑
£100,001 – £110,000 ‑ ‑
£110,001 – £120,000 ‑ ‑
£120,001 – £130,000 1 1
7 8

The above employees accrued benefits under the defined contributions pension schemes and payments to defined contributions schemes totalled £63,050 (2019/20: £65,456).

The total amount of employee benefits, being gross salary and employer’s pension contribution, received by the key management personnel listed on page 50 was £310,009 (2019/20: £368,118).

The salary of the Managing Director, being the highest paid employee, and other senior management posts is set by the Remuneration Committee. Salaries of other staff working for the Charity are set by the Senior Management Team within the Pay Policy approved by the Remuneration Committee and the approved budget. The Manging Director’s basic salary was £127,500 in 2020/21 (£127,500 in 2019/20) and no pay award was made for 2020/21.

The Charity makes payments to agency staff where additional temporary staff are required. For the year ended 31 March 2021, the total payments made by the Charity in respect of agency staff totalled £347,721 (2019/20: £275,503).

The salaries of clinical staff funded by the Charity are recharged by the hospital or other employing institutions in Note 7.

11b. Pension costs

Provision of a pension for employees of the Charity is through two schemes. Charity employees previously employed by The Royal Marsden NHS Foundation Trust at 31 March 2018 and transferred to the Charity under TUPE arrangements on 1 September 2018 were entitled to join the NHS Pensions Scheme. Employees who started employment with the Charity after 31 March 2018 are able to access a workplace pension scheme.

NHS Pensions Scheme

Past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/ pensions. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period. In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”.

An outline of these follows:

a) Accounting valuation

A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2020, is based on valuation data as at 31 March 2019, updated to 31 March 2020 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

b) Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.

The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019 to 20.6%, and the Scheme Regulations were amended accordingly. The 2016 funding valuation was also expected to test the cost of the Scheme relative to the employer cost cap set following the 2012 valuation. Following a judgment from the Court of Appeal in December 2018 Government announced a pause to that part of the valuation process pending conclusion of the continuing legal process. Pension payments to NHS Pensions Scheme recognised in the operating surplus during the year amount to £177,100 (2019/20: £185,039).

Workplace pension

The Charity has put in place a workplace pension scheme for all new employees from 1 April 2018. Pension payments to the Workplace Pension Scheme recognised in the operating surplus during the year amount to £48,243 (2019/20 £44,729).

11c. Trustee expenses

The Charity Trustees neither received nor waived any emoluments during the year (2019/20: £nil). Trustees also were not reimbursed for any out‑of‑pocket expenses (2019/20: £nil). Trustee indemnity insurance is held at a cost of £5,880 (2019/20: £5,880).

12. Related party transactions

Disclosure of related party transactions is provided in the section of the Trustees’ Report ‘Relationships with related parties’ on page 29. Other than the transactions disclosed in that section, there were no related party transactions during the year.

13. Taxation

The Royal Marsden Cancer Charity is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

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Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

14. Net income/(expenditure)

This is stated after charging: 2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£’000 £’000 £’000 £’000 £’000 £’000
Auditor’s remuneration
Statutory audit services 21 ‑ 21 19 ‑ 19
Non audit services 3 ‑ 3 6 ‑ 6
Depreciation 122 ‑ 122 172 ‑ 172

15. Results of the subsidiary company

The Charity owns a wholly owned subsidiary company, Royal Marsden Cancer Campaign Trading Company Limited, which is registered in England and Wales under company number 04722285. This subsidiary is used for non‑primary purpose trading activities, and all activities have been consolidated on a line‑by‑line basis in the statement of financial activities. The available profits from the subsidiary are Gift Aided to the Charity. Audited financial statements are filed with Companies House. Below is a summary of the trading results for the year ended 31 March 2021:

Results of the subsidiary company 2021 2020
£’000 £’000
Proft and loss account
Turnover 213 355
Cost of sales (41) (152)
Gross proft 172 203
Administrative expenses (8) (13)
Operating proft 164 190
Interest payable ‑ ‑
Proft before taxation 164 190
Taxation ‑ ‑
Proft for fnancial year 164 190
Retained earnings
Retained earnings at 1 April ‑ ‑
Proft for the year 164 190
Gift Aid payable to parent undertaking (164) (190)
Retained earnings at 31 March ‑ ‑
The Company’s assets and liabilities were as follows:
Assets 351 352
Liabilities (351) (352)
Net assets ‑ ‑

16. Tangible and intangible fixed assets

The Group The Group The Group The Charity The Charity The Charity
Other
assets		 Land
and
buildings		 2021 Total Other
assets		 Land
and
buildings		 2021 Total
2021 2021 2021 2021
£’000 £’000 £’000 £’000 £’000 £’000
Cost
Cost as at 1 April 244 12,257 12,501 244 12,257 12,501
Transfer* ‑ 1,090 1,090 ‑ 1,090 1,090
At 31 March 244 13,347 13,591 244 13,347 13,591
Accumulated depreciation
Depreciation as at 1 April (214) (418) (632) (214) (418) (632)
Depreciation for the current year (30) (92) (122) (30) (92) (122)
At 31 March (244) (510) (754) (244) (510) (754)
Net book value
At 31 March 2020 30 11,839 11,869 30 11,839 11,869
At 31 March 2021 ‑ 12,837 12,837 ‑ 12,837 12,837

*The value of the property Stewarts House was transferred from investment properties to tangible fixed assets in the year, reflecting the change in use from being let out to tenants to being used to further the Charity’s objectives.

Tangible fixed assets include properties owned by the Charity that have been and will, for the foreseeable future, be required for use by the hospital at the Chelsea site for essential purposes and/or by the Charity for its own purposes. Other assets with the net book value of £nil comprise website costs and reflect the total value of intangible assets held by the Group and Charity.

17. Investments

The Group The Charity The Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Freehold investment properties 890 1,980 890 1,980
Listed investments and cash held
for investments		 115,894 83,897 115,894 83,897
116,784 85,877 116,784 85,877

The entire issued share capital of Royal Marsden Cancer Campaign Trading Company Limited, totalling £2, is held by the Charity (see note 17 on page 53).

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

Movements in investments during the year were as follows, on a Group basis:

Listed
investments		 Investment
properties		 2021 Total Listed
investments		 Investment
properties		 2020 Total
£’000 £’000 £’000 £’000 £’000 £’000
Market value at the beginning of the year 83,897 1,980 85,877 89,446 2,900 92,346
Add: purchases at cost during the year 62,121 ‑ 62,121 57,223 ‑ 57,223
Less: disposal proceeds 62,121 ‑ 62,121 (52,223) (1,362) (53,585)
Less: transfers to fxed assets (Note 16) ‑ (1,090) (1,090) ‑ ‑ ‑
Realised gains/(losses)* 7,974 ‑ 7,974 8,738 442 9,180
Unrealised (losses)/gains* 24,023 ‑ 24,023 (19,287) ‑ (19,287)
Total market value at the end of the year 115,894 890 116,784 83,897 1,980 85,877
Historic cost (excluding cash held with
investment managers)		 101,234 332 101,566 101,822 557 102,379

*£78,390 (2019/20: £78,390) of listed investments relate to the endowment funds of The Royal Marsden Hospital Charity. This balance due to The Royal Marsden Hospital Charity is included within creditors: amounts falling due within one year. Included within total realised gains and unrealised gains are gains of £72,640 (2019/20: £59,062) and gains of £18,103 (2019/20: £27,003) relating to investments held on behalf of the endowment funds of The Royal Marsden Hospital Charity. These gains and losses are restricted funds held for distribution in accordance with the original endowment’s terms.

The freehold investment properties are subject to a programme of periodic revaluation and were last professionally fully revalued by Montagu Evans LLP in February 2021 on the basis of open‑market value as at that date (see page 24).

as at that date (see page 24).
2021 Total 2020 Total
£’000 £’000
Unrealised gains/(losses) included above:
On listed investments 14,660 (17,925)
On investment properties 558 1,423
Total unrealised gains/(losses) at 31 March 15,218 (16,502)
Reconcilation of movements in unrealised gains
Unrealised gains at 1 April (16,502) 21,960
Less: in respect to disposals in the year (277) (28,355)
(16,779) (6,395)
Less: net investment loss in the year/add: net investment gains in the year 31,997 (10,107)
Total unrealised gains/(losses) at 31 March 15,218 (16,502)

Fixed asset investments are held at market value at the balance sheet date. The significance of such investments to the ongoing financial sustainability of the Charity is considered in the ‘Principal risks and uncertainties’ section on page 26 of the Trustees’ report.

Listed investments held at 31 March 2021 comprised the following:

Listed investments held at 31 March 2021 comprised the following:
2021 2020
£’000 £’000
Funds 115,894 83,897
115,894 83,897
Investments assets in the UK 115,894 83,897
Investments assets outside the UK ‑ ‑
115,894 83,897

While holdings are in UK funds, the investments made by these funds are diversified geographically. Investment holdings with a market value in excess of five per cent of the market value of the entire listed portfolios are:


portfolios are:
2021 2020
£’000 £’000
Lansdowne Developed Markets Long Only Fund 29,422 16,558
Kiltearn Global Equity (IRE) Fund 19,595 13,245
Blackrock ICS Sterling Liquidity Fund 10,342 10,140
iShares MSCI World ESG Screened UCITS ETF ‑ 43,954
M&G Charifund 28,608 ‑
Fidelity – Sustainable Global Equity 27,927 ‑

The Charity’s investments consist for the most part of holdings in funds. Investment management and other fees are charged within the net asset values of those funds, and no investment management fees are charged directly to the Charity.

In addition to the above listed investments, the Charity holds the entire issued share capital of its subsidiary company, Royal Marsden Cancer Campaign Trading Company Limited, totalling £2 (see note 15 on page 52).

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Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

18. Stocks

The Group The Group The Charity The Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Merchandise 34 36 ‑ ‑

19. Debtors

The Group The Group The Charity The Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
Prepayments and accrued income 12,544 7,140 12,401 7,097
Amounts owed by subsidiary company:
Secured loan ‑ ‑ 50 50
Gift Aid ‑ ‑ 164 190
Other ‑ ‑ 133 104
Loan to The Royal Marsden
NHS Foundation Trust		 226 226 226 226
Other debtors 503 340 503 340
13,273 7,706 13,477 8,007

20. Creditors: amounts falling due within one year

The Group The Group The Charity The Charity
2021 2020 2021 2020
£’000 £’000 £’000 £’000
The Royal Marsden NHS Foundation Trust 551 291 551 291
The Royal Marsden Hospital Charity 78 78 78 78
Grants payable – The Royal Marsden
NHS Foundation Trust		 78,087 62,382 78,087 62,382
Amounts owed to subsidiary company ‑ ‑ ‑ ‑
Accruals and deferred income 872 945 868 940
79,588 63,696 79,584 63,691

21. Creditors: amounts falling due after one year

2021 2020
£’000 £’000
The Group and the Charity
Grants payable – The Royal Marsden NHS Foundation Trust 3,199 9,534

All amounts included as debtors fall due within one year. The loan to the subsidiary company, Royal Marsden Cancer Campaign Trading Company Limited, is secured by way of a floating charge over the assets of the company. A commercial rate of interest is charged on the loan (1% above Base Rate).

The loan to The Royal Marsden NHS Foundation Trust is interest‑free to provide finance loans to hospital staff in relation to season tickets and bicycle purchases. The Royal Marsden NHS Foundation Trust is responsible for the administration, any defaults, tax liabilities and other costs relating to them. The terms and amount of this loan is reviewed annually prior to renewal.

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Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

22. Movement in funds

The Group and the Charity 2020 2021 2021 2021 2021 2021
At 1 April Income Expenditure Realised/
unrealised
gains and
losses		 Fund transfers At 31 March
£’000 £’000 £’000 £’000 £’000 £’000
Restricted Funds
The Royal Marsden Hospital
General Research Charity		 26,827 5,900 (2,795) ‑ (781) 29,151
The Royal Marsden Hospital
Patient Amenity Charity		 3,212 699 (446) ‑ (215) 3,250
The Royal Marsden Hospital
Staf Amenity Charity		 425 81 (21) ‑ (4) 481
Gottesmann Will and Ronald Raven funds 233 ‑ ‑ 73 ‑ 306
Children’s Drug Development Unit ‑ 231 ‑ ‑ (231) ‑
Ellis Ward (70) 2 ‑ ‑ ‑ (68)
Robotic surgical fellowships 400 59 (245) ‑ ‑ 214
Oak Cancer Centre 18,315 15,459 (25,000) ‑ ‑ 8,774
LIBOR Fund ‑ ‑ ‑ ‑ ‑ ‑
Equipment Fund ‑ 181 ‑ ‑ (181) ‑
Location specfc – Sutton 126 248 ‑ ‑ (300) 74
COVID‑19 Emergency Appeal 92 1,705 (1,797) ‑ ‑ ‑
Total restricted funds 49,560 24,565 (30,304) 73 (1,712) 42,182
Unrestricted funds
Designated funds
Tangible fxed assets fund 11,869 ‑ (122) ‑ 1,090 12,837
Investment properties fund 1,980 ‑ ‑ ‑ (1,090) 890
Sutton Hospital 768 ‑ (101) ‑ ‑ 667
OAK Cancer Centre 13,400 ‑ (3,200) ‑ ‑ 10,200
New Capital Appeal ‑ ‑ ‑ ‑ 15,000 15,000
Grants Strategy ‑ ‑ ‑ ‑ 2,024 2,024
Total designated funds 28,017 ‑ (3,423) ‑ 17,024 41,618
General funds/free reserves 8,181 8,347 (14,745) 31,924 (15,311) 18,396
Total unrestricted funds 36,198 8,347 (18,168) 31,924 1,712 60,013
Total funds 85,758 32,912 (48,472) 31,997 ‑ 102,195

22. Movement in funds (continued)

The Group and the Charity 2019 2020 2020 2020 2020 2020
At 1 April Income Expenditure Realised/
unrealised
gains and
losses		 Fund transfers At 31 March
£’000 £’000 £’000 £’000 £’000 £’000
Restricted Funds
The Royal Marsden Hospital
General Research Charity		 24,647 5,075 (1,584) ‑ (1,311) 26,827
The Royal Marsden Hospital
Patient Amenity Charity		 3,269 2,071 (571) ‑ (1,557) 3,212
The Royal Marsden Hospital
Staf Amenity Charity		 414 118 (91) ‑ (16) 425
Gottesmann Will and Ronald Raven funds 266 ‑ ‑ (33) ‑ 233
Children’s Drug Development Unit ‑ 512 ‑ ‑ (512) ‑
Ellis Ward (84) 14 ‑ ‑ ‑ (70)
Robotic surgical fellowships 401 71 (72) ‑ ‑ 400
Oak Cancer Centre 27,538 15,606 (25,000) ‑ 171 18,315
LIBOR Fund ‑ 329 (329) ‑ ‑ ‑
Equipment Fund 11 1,822 ‑ ‑ (1,833) ‑
Location specfc – Sutton 209 168 ‑ ‑ (251) 126
COVID Emergency Fund ‑ 295 (203) ‑ ‑ 92
Total restricted funds 56,671 26,081 (27,850) (33) (5,309) 49,560
Unrestricted funds
Designated funds
Tangible fxed assets fund 11,803 ‑ ‑ ‑ 66 11,869
Investment properties fund 2,900 ‑ ‑ ‑ (920) 1,980
Sutton Hospital 821 ‑ (53) ‑ ‑ 768
OAK Cancer Centre 13,518 ‑ (118) ‑ ‑ 13,400
New Capital Appeal ‑ ‑ ‑ ‑ ‑ ‑
Grants Strategy ‑ ‑ ‑ ‑ ‑ ‑
Total designated funds 29,042 ‑ (171) ‑ (854) 28,017
General funds/free reserves 19,620 7,076 (14,604) (10,074) 6,163 8,181
Total unrestricted funds 48,662 7,076 (14,774) (10,074) 5,309 36,198
Total funds 105,333 33,157 (42,624) (10,107) ‑ 85,758

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Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

Purposes of restricted funds

The income funds of the Charity include restricted funds comprising balances of donations and grants held on trusts to be applied for specific purposes. The specific purposes for which the funds are to be applied are as follows:

The Royal Marsden Hospital General Research Charity, The Royal Marsden Hospital Patient Amenity Charity and The Royal Marsden Hospital Staff Amenity Charity

These funds were transferred to The Royal Marsden Cancer Charity from The Royal Marsden Hospital Charity on 1 September 2011 and continue to be applied in accordance with the charitable objectives of each of the special purpose funds. During the year, there was a net transfer of £1.7 million from these restricted funds to general funds. This represents funds already committed/spent out of general funds as the charity pre‑funds some of its grant making activities.

Gottesmann Will and Ronald Raven funds

These funds represent the net investment returns relating to two permanent endowments held by The Royal Marsden Hospital Charity. This income is now held by the Charity to be applied in accordance with the terms of the original endowments.

Children’s Drug Development Unit

The Royal Marsden’s Oak Paediatric and Adolescent Drug Development Unit is one of the largest and most successful translational research programmes in the world, delivering more new treatment options for a greater number of young patients – all within a high‑quality, caring and holistic service. This fund provides the vital infrastructure needed to run such a programme.

Ellis Ward

This fund represents donations made specifically for the Ellis Ward refurbishment. The deficit arose as a result of the Trustees agreeing the full grant commitment during 2011/12 of £2.65 million. A major donor has pledged, under a memorandum of understanding, to donate the balance of the commitment, shown as a deficit of £68,000 (2019/20 £70,000) under the restricted fund.

da Vinci Xi Robotic Surgery Fellowships

This fund represents donations made specifically for the Robotic Surgery Fellowships. The fund balance represents the fundraising appeal, and other donations for this project will be used to fund the costs of the fellowships as they fall due.

Oak Cancer Centre (including public appeal)

This fund represents donations made specifically for the Oak Cancer Centre in Sutton (previously known as the Clinical Care and Research Centre). A fundraising appeal to raise £50 million to enable The Royal Marsden to open the building in 2022 was launched in November 2015; the fundraising target has subsequently been increased to £70 million. The fund balance of £8.8 million represents donations received for this project to date, less grants made to the hospital.

Equipment Fund

This represents funds committed/spent out of general funds as the Charity pre‑funds some of its grant making activities.

Location specific – Sutton

This fund represents donations made specifically for use on the Sutton site.

COVID‑19 Emergency Appeal

This new fund represents donations made specifically to support the Trust during the COVID‑19 pandemic. Donations from the appeal are making a huge difference to staff and patients, funding psychological support for staff so that they had the help they needed to deal with the impact of the pandemic while continuing to provide the best possible care for cancer patients. Money raised has also been invested in digital resources such as purchasing iPads so that doctors are able to carry out remote consultations with patients who can stay safely at home, and WiFi upgrades on hospital wards, enabling patients to keep in touch with their loved ones while visitors are restricted, and stay connected when they most need to.

The fund is also supporting a number of critical research studies to investigate the impact of COVID‑19 on cancer patients which were launched at an unprecedented pace to investigate how the virus interacts with cancer treatments.

Purposes of designated funds

The income funds of the Charity include designated funds that have been set aside out of unrestricted funds by the Trustees for specific purposes.

Tangible fixed assets fund

This fund represents the net book value of properties that are owned by the Charity and used by The Royal Marsden NHS Foundation Trust at the Chelsea hospital for essential purposes and/or by the Charity for its own administrative purposes (see note 16 on page 53).

These funds have been set aside because these properties are of strategic importance to both organisations, and Trustees expect this to remain the case for the foreseeable future.

Investment properties fund

This fund represents the net book value of the Charity’s investment properties (see note 17 on page 53). These funds have been set aside because the investment properties are not immediately available for use in the Charity’s activities.

Sutton Hospital

This fund represents the balance of net assets transferred following the merger with the Friends of the Royal Marsden Surrey on 17 December 2018 and are used to provide support at the Sutton hospital.

Oak Cancer Centre fund

This fund represents monies set aside by the Trustees for future funding of the £70 million project to build the new Oak Cancer Centre, due to open in 2022. Once the project is completed any remaining monies in the Oak Designation fund will be re‑purposed towards a new capital appeal.

New Capital Appeal

This new fund represented funds allocated in advance of a new capital appeal due to follow the completion of the Oak Cancer Centre. The new appeal is currently in the preliminary scoping stage.

Grants Strategy

In 2020/21 the Charity embarked on a new 5 year grant strategy. The strategy allocates £11 million per year to grant making, (excluding Oak and COVID grants), with any unspent money being placed in a designated fund, for future grant committments.

Other transfers

Other transfers, excluding those previously identified, relate to funds previously committed/spent out of general funds as the Charity pre‑funds some of its grant making activities.

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Financial Statements Notes to the financial statements

23. Analysis of Group net assets between funds

2021 2021 2021 2021 2020
General
funds		 Designated
funds		 Restricted
funds		 Total funds Total funds
£’000 £’000 £’000 £’000 £’000
The Group
Tangible fxed assets ‑ 12,837 ‑ 12,837 11,869
Fixed asset investments 51,616 31,981 33,187 116,784 85,877
Current assets 1,900 ‑ 53,461 55,361 61,242
Creditors: amounts falling due within 1 year (31,921) (3,200) (44,467) (79,588) (63,696)
Creditors: amounts falling due after 1 year (3,199) ‑ ‑ (3,199) (9,534)
Net assets at the end of the year 18,395 41,618 42,181 102,195 85,758
The Charity
Tangible fxed assets ‑ 12,837 ‑ 12,837 11,869
Fixed asset investments 51,616 31,981 33,187 116,784 85,877
Current assets 1,896 ‑ 53,461 55,357 61,237
Creditors: amounts falling due within 1 year (31,917) (3,200) (44,467) (79,584) (63,691)
Creditors: amounts falling due after 1 year (3,199) ‑ ‑ (3,199) (9,534)
Net assets at the end of the year 18,395 41,618 42,181 102,195 85,758
2020 2019
General
funds		 Designated
funds		 Restricted
funds		 Total funds Total funds
£’000 £’000 £’000 £’000 £’000
The Group
Tangible fxed assets ‑ 11,869 ‑ 11,869 11,956
Fixed asset investments 39,032 16,148 30,697 85,877 92,346
Current assets (248) ‑ 61,490 61,242 45,346
Creditors: amounts falling due within 1 year (23,593) ‑ (40,103) (63,696) (34,818)
Creditors: amounts falling due after 1 year (7,010) ‑ (2,524) (9,534) (9,497)
Net assets at the end of the year 8,181 28,017 49,560 85,758 105,333
The Charity
Tangible fxed assets ‑ 11,869 ‑ 11,869 11,956
Fixed asset investments 39,032 16,148 30,697 85,877 92,346
Current assets (253) ‑ 61,490 61,237 45,327
Creditors: Amounts falling due within 1 year (23,588) ‑ (40,103) (63,691) (34,799)
Creditors: Amounts falling due after 1 year (7,010) ‑ (2,524) (9,534) (9,497)
Net assets at the end of the year 8,181 28,017 49,560 85,758 105,333

24. Liability of members

The Charity is constituted as a company limited by guarantee. In the event of the Charity being wound up, the members are required to contribute an amount not exceeding £10 each.

Breast cancer patient, Divya Aggarwal, in Chelsea with nurse

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The Royal Marsden Cancer Charity Annual Report and Financial Statements 2020/21

Thank you

We would like to take the opportunity to thank all of our wonderful supporters, fundraisers and volunteers who spent so much time and effort helping to make the year such a great success. Thank you.

Staff in Sutton send a thank you message to Charity supporters 64

Financial Statements Notes to the financial statements

Get in touch

The Royal Marsden Cancer Charity raises money solely to support The Royal Marsden, a world‑leading cancer centre. We ensure our nurses, doctors and research teams can provide the very best care and develop life‑saving treatments, which are used across the UK and around the world.

From funding state‑of‑the‑art equipment and groundbreaking research to creating the very best patient environments, we will never stop looking for ways to improve the lives of people aff ected by cancer.

The Royal Marsden Cancer Charity For a future beyond cancer.

Find out more

royalmarsden.org 020 7808 2233

Donate

royalmarsden.org/donate 020 7808 2233

Fundraise

royalmarsden.org/support 020 8661 3391

Gifts in Wills

royalmarsden.org/giftsinwills 020 7811 8032

Volunteer

royalmarsden.org/volunteering 020 8661 3391

Our offi ces

Chelsea

The Royal Marsden Cancer Charity Fulham Road London SW3 6JJ

Sutton

The Royal Marsden Cancer Charity Downs Road Sutton Surrey SM2 5PT

The Royal Marsden Cancer Charity, Registered Charity No. 1095197