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← The Lankellychase Foundation

2025-03-31-accounts

The LankellyChase Foundation

Annual report and financial statements for the year ended 31 March 2025

The LankellyChase Foundation is a registered company limited by guarantee number 5309739 Registered charity number 1107583

The LankellyChase Foundation

Table of Contents

Legal and administrative information ....................................................................... 3 Report of the Trustees ................................................................................................. 6 Review of grant activity ..................................................................................................... 10 Financial Report ................................................................................................................. 12 Independent auditor’s report to the members of The LankellyChase Foundation .................................................................................................................. 16 Statement of financial activities for the year ended 31 March 2025................... 20 Balance sheet as at 31 March 2025.......................................................................... 21 Statement of cash flows for the year ended 31 March 2025 ................................ 22 Notes to the financial statements for the year ended 31 March 2025 ................. 23

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The LankellyChase Foundation

Statutory information

The LankellyChase Foundation (‘the Foundation’) is a charitable company limited by guarantee and is incorporated in the United Kingdom (no. 5309739). The registered office address is Greenworks, Dog & Duck Yard, Princeton Street, London WC1R 4BH.

Legal and administrative information

The Foundation is governed by its Memorandum and Articles of Association and registered as a charity (no. 1107583). The Directors of the Charitable Company are the Trustees of the charity for the purposes of charity law and throughout this report are referred to as ‘the Trustees’.

The following details are for the year ended 31 March 2025 and also include changes up to the date on which the accounts were signed.

Trustees Asif Afridi (R) Chair
Myron Rogers (I,R)
Amanda Hailes
Amel Hamilton Appointed 22ndOctober 2025
Marai Larasi (I) Retired 23rdOctober 2024
Darren Murinas (R)
Baljeet Sandhu (I)
Felipe Viveros (I) Appointed 23rdOctober 2024
(I) indicates members of the Investment Committee
(R) indicates member of the Resources and Risk Committee
Any individual Trustee has the right to attend any committee meeting.
Staff team Edel Brady-Jackson Administrator, Place Action Inquiry
(leaving 5thSeptember 2025)
Dominic Burke* Investment Director (leaving 19thMay
2025)
Lisa Clarke Place Stewardship Lead (leaving 19th
May 2025)
Julian Corner* Chief Executive
Karen Crompton* Director
Renee Davis Communications Manager (leaving 9th
July 2025)
Oliver French Action Inquiry Manager, Head of Grants
(left 30thSeptember 2024)
Carrina Gaffney GM Stewardship Lead (leaving 19thMay
2025)
Rachael Gibbons Action Inquiry Manager (left 30th
September 2024)
Ania Jeleniewska-Kaczmarczyk Head of Finance

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Anita Kamya Finance Assistant Joan Kirungi Office and Admin Assistant Habiba Nabatu Director Cathy Stancer Director (leaving 9[th] July 2025) Emma Perry Executive Assistant/Governance Coordinator (left 31[st] January 2025)

Key management Although in a small staff team every member is considered to be key, for the personnel purposes of the Statement of Recommended Practice (SORP 2015), those team members marked * have been designated as key management personnel. Principal and Greenworks, Dog and Duck Yard registered office Princeton Street London WC1R 4BH Telephone 020 3747 9930 Website www.lankellychase.org.uk Company registration number 5309739 Country of registration England and Wales Country of incorporation United Kingdom Charity registration number 1107583 Auditor Sayer Vincent LLP 110 Golden Lane London EC1Y 0TG The Royal Bank of Scotland Group Bankers 1[st] Floor, Houblon House 62-63 Threadneedle Street London EC2R 8HP Lloyds TSB Bank plc Market Place, Didcot Oxfordshire OX11 7LQ Legal advisors Bates Wells 10 Queen Street Place London EC4R 1BE Investment managers Cazenove Capital Management 12 Moorgate, London EC2R 6DA

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Baillie Gifford & Co

Calton Square 1 Greenside Row, Edinburgh EH1 3AN Fully redeemed from this fund in March 2025

Impax Asset Management

7th Floor 30 Panton Street, London SW1Y 4AJ Fully redeemed from this fund in March 2025

Liontrust Asset Management plc 2 Savoy Court, London WC2R Fully redeemed from this fund in February 2025

Montanaro Asset Management Ltd 53 Threadneedle Street, London EC2R 8AR Fully redeemed from this fund in January 2025

Stewart Investors

23 St Andrew Square, Edinburgh EH2 1BB Fully redeemed from this fund in March 2025

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The LankellyChase Foundation

Report of the Trustees

Introduction

This annual report covers the second year since Lankelly Chase announced that we would redistribute our assets within 5 years and “make space to reimagine how wealth, capital and social justice can co-exist in the service of all life, now and for future generations”. The case for this decision is more compelling and urgent than ever and we are actively taking steps to put our intentions into action.

We’re living in very different times to when institutional philanthropy began. Genocide, war and famine are spiking. Politics and societies are becoming increasingly divided, driven by deep-seated inequality, the rise of far-right movements, and widespread misinformation. The wealth that made institutional philanthropy possible was built on systems of power and growth that are now causing unprecedented damage to people and the planet. Philanthropy was established to mitigate the harms caused by the system of wealth extraction, not to address the profound crises that it has now created.

When the world changes this much, we have a responsibility – legally, strategically, and morally – to change the way we act. Change is uncomfortable, but it is better than denial. This is no time to put institution before mission.

Communities need game-changing resources to rebuild, grow local wealth, and unlock the talent and innovation necessary to create sustainable futures. They can’t do this if they’re chasing small, one-off funds for every emergency.

The problem isn’t just avoidable scarcity, it’s how charitable money is managed. The people deciding where funds go are often far removed from those doing the real work on the ground. Most of the £90bn held by the 300 largest UK foundations is invested in markets that make climate change worse. The current grant system can drain considerable time and energy, and almost invariably foundations fund other institutions, which can prevent communities from having control over their own resources. The old way of doing philanthropy just doesn’t work for the world we live in today.

This is why Lankelly Chase recognised that truly transformative approaches could not emerge while our old model remained in place. We had already found that it wasn’t possible to shift power to others while our own decision-making as a grant-making foundation was centred. We have therefore worked carefully to close our previous strategy, programmes, and operations.

Since our 2023 announcement to redistribute our assets, we have focused on supporting the organisations and people involved in our previous strategy. Nearly £20m in additional grants has been awarded to close funding programmes responsibly, and we have phased out staff roles linked to these programmes while helping team members to transition to future opportunities.

We have launched an open-access resource that celebrates our extraordinary grantees, partners, and team, while also offering an honest reflection on the innovations, tensions, and

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mistakes that have shaped our journey and transition. We hope it will make a meaningful contribution to the broader debate on how philanthropy can better align its means with its ends.

Having completed the closure of our old organisational model, we are now entirely focused on creating space to explore alternative approaches to resourcing communities. Resources need to flow on terms set by communities, not institutions. This is no easy task. We have all come to rely on institutions to make decisions for us, to weigh up what is in our interests, to hold and impose accountability for the money. As we set out last year, this reliance costs us all. However, it’s not obvious how to move from the old system to one fit for today’s challenges.

This is why we have begun a phase of research and development. We are collaborating with people close to the communities we aim to serve to explore how funding can support community-based work in ways that encourage genuine collaboration and collective action. This phase is about laying the groundwork, creating approaches that shift decision-making and accountability to communities, while ensuring people can do this work as safely as possible.

This work is about exploring multiple possible pathways, with much of the learning focused on relationships, mindsets, behaviours, and ways of working. It won’t be neat or comprehensive, and it will only cover some of the steps needed. We are part of a growing number of people and organisations in institutional philanthropy seeking more effective approaches to resourcing communities. By opening the space for deep collaboration with communities, our contribution will be to find ways that resources reach communities in ways designed by and for them.

At the moment, we are focused on this work and plan to provide a public update on this phase in April 2026. We remain deeply grateful to the visionary leaders, communities, organisations and former staff members and trustees who have supported us, their expertise, effort, and collaboration have been invaluable. Communities most affected by injustice and oppression have long called for fundamental change in philanthropy, and we are determined to honour that call. Our response may not be perfect or complete, but it represents an important step — one we hope others can build on in the years ahead.

THE LEGAL REQUIREMENTS

The objects of the Foundation

The Foundation’s objects are to promote any charitable purposes under the law of England and Wales.

The Trustees define the policies that underpin the Foundation’s programmes and throughout 2024-25 the work of the Foundation continued to be shaped by the following vision and mission statement.

Our vision is of world healed by justice, equity and inclusion, where all people can live with dignity and opportunity in supportive communities.

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Our belief is this can only be achieved if we fully embrace the interdependent nature of our existence.

Our mission is to create space to reimagine, test and demonstrate how wealth, capital and social justice can co-exist in service to all of life now and for future generations.

Values

Determined: real change takes tenacity, kindness and commitment. We work with humility and the knowledge that there are no simple answers.

Open: we want to build relationships based on shared humanity, kinship and respect. We are always open to new ideas and evidence and we share whatever we learn for the benefit of everyone.

Reflective: we want to find out what really works. We challenge assumptions and we use feedback as a powerful tool for learning.

History

The LankellyChase Foundation is the amalgamation of two grant-making trusts, the Lankelly Foundation and the Chase Charity.

The Chase Charity was established on 18 May 1962 and the Lankelly Foundation on 18 March 1968. On 9 December 2004, the two Trustee bodies amalgamated the trusts and the new LankellyChase Foundation was incorporated.

Structure, governance and management

The Board of Trustees administers the Foundation. The Board appoints Trustees who then serve for four years, after which they may be re-appointed to serve one further term of up to four years. In exceptional circumstances a Trustee may, if agreed unanimously by the Board, be asked to serve an additional four-year term. The Chair is appointed by the Trustees and serves for a maximum of two three-year terms as Chair.

Periodically the Board reviews the range of skills among Trustees and may recruit new Trustees to fill any gaps in the skillset of the Board. New Trustees have historically been recruited through external competition, a process that may be complimented or superseded by the use of the Foundation’s networks to identify individuals who may not be reached by more traditional methods. In addition to making appointments based on the skills, values and connections deemed necessary by the Board, new Trustees may be recruited to bring alternative perspectives. This ensures the Board and the method of governance continues to evolve.

The full Trustee Board currently meets at least four times a year to manage the Foundation, as well as attending residentials to develop strategy. The day-to-day administration continues to be delegated to the Chief Executive who is supported in this by the wider staff team.

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The Board of Trustees currently has three sub-committees. They are:

Risk management

The Trustees are responsible for establishing and monitoring Lankelly Chase’s internal control systems. Until March 2024, the risk register was presented to the Resources and Risk Committee annually.

Since our new strategy has introduced high levels of change, the risk register is presented for review to the whole Board at each Board meeting and is available to all Trustees upon request. The Trustees’ approach to risk is to manage rather than eliminate, and view risks as opportunities to be taken, not just threats. Currently, Trustees are satisfied that the system of internal controls in place is adequate, and these internal controls are reviewed as part of the day-to-day management processes within the Foundation.

The risk register is a live document which is held collectively by the staff team and reviewed and updated monthly, and many of the risks identified remain live within the work. There is also a strong understanding at Executive and Board-level that much of the work we are engaged in might involve more risk than other funders would be comfortable with. However, we have management processes in place to manage those risks where possible, and we consider both success and failure to be crucial parts of the change journey.

The Trustees have held that the principal risk to Lankelly Chase is that it does not fulfil its core mission, and this is what led to our decision not to continue as a legacy institution of philanthropy. We have identified the new strategic and operational risks that face us as we determine the alternative futures for our assets. These risks will continue to be managed as per the process above.

Public benefit requirement

The Trustees have had regard to the Charity Commission’s published guidance on public benefit as required under Section 17 of the Charities Act 2011. The Trustees aim to meet their public benefit responsibilities by making grants only for activities or outcomes that exclusively further the charitable objects of the Foundation. The Foundation’s objects are to promote any charitable purposes under the law of England and Wales, and under the new strategy will in particular be focusing on the advancement of education, by helping to build knowledge, skills and capacity in both the charity and wealth-holding sectors, and on ways to promote the efficiency and effectiveness of charities and the effective use of charitable resources.

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Review of grant activity

Following a decision to close all existing grants programmes, all Portfolio Teams – previously the primary route through which grants were made – were dissolved and the Board once again became primary decision makers over grants, except in our Place-based work, where decision-making remained devolved to place ‘Coordination Teams’. Throughout 2024/25 the Lankelly Chase staff team worked closely with these Coordination Teams to agree the final allocation of funding.

In this financial year, £3.7m was allocated to the Coordination Teams and cross-place stewardship work, and £2.3m was allocated as final grants to organisations who have been critically dependent on our money, and/or whose finances are precarious.

Organisation Description Grant
amount(£)
An Untold Story - Voices Towards further financial support. 32,000
Barking and Dagenham Giving BD Giving to host the funds for the
Disruptive Explorers Collective.		 100,000
Barking and Dagenham Giving BD Giving to host the funds for the
Disruptive Explorers Collective.		 425,000
Black Equity Organisation
(BEO)		 Core costs. 150,000
Caritas Diocese of Shrewsbury Engaging a more diverse group of SEND
people and organisations.		 20,000
Collective Change Lab Inc The Systems Storytelling Project, which
includes a network of Indigenous
storytellers.		 30,000
Conscious Youth CIC Grant to complete previously funded work
with JRF Collaborative.		 30,000
Culture Hack To continue funding to fulfil its charitable
aims.		 132,500
Dark Matter Laboratories Ltd Staffingcosts to the Manyto Manyteam. 90,000
Debt for Climate via Climate
2025 Ltd		 Towards further financial support. 55,000
Decolonising Economics via
Social Change Nest		 To build on the work from Nourishing
Economics.		 275,000
Futuros Indigenas via The
New World Foundation		 Core costs. 70,000
Gateshead Community
Bridgebuilders via Social
Change Nest		 To host the funds for the Gateshead
Community Bridgebuilders 2025/2026.		 450,000
Gateshead Community
Bridgebuilders via Social
Change Nest		 To host the funds for the Gateshead
Coordination Group.		 320,000
GM Stewarding Group via
Social Change Nest		 To host the funds for GM Stewarding
Group.		 700,000
GM Stewarding Group via
Social Change Nest		 To host the funds for GM Stewarding
Group.		 922,400
Gower Street As fiscal host to ‘Spend Down’ Community
of Practice.		 5,000

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Heard Organisation Limited Towards further financial support. 50,000
Heart of Hastings CLT Limited Towards further financial support. 70,000
Huddlecraft CIC Next phase of work to continue support for
the community: giving.		 55,000
JMB Corporation Ltd To support the running of the Uncharitable
Festival 2024.		 15,000
Joseph Rowntree Foundation Extension of the Lankelly Chase and JRF
Funder Collaborative project.		 20,000
Joseph Rowntree Foundation Contribution towards the staging of “Next
Frontiers”Conference.		 50,000
Living Rent To continue the work to fulfil its charitable
aims.		 43,000
London Renters Union Limited Towards further financial support. 60,000
Marmalade Planning Group via
Social Change Nest		 SCN to act as fiscal host for the Oxford
Marmalade Group.		 425,000
Marmalade Planning Group via
Social Change Nest		 SCN to act as fiscal host for the Oxford
Marmalade Group.		 250,000
Media Resources Co-operative
Limited		 To support core costs for the Independent
Media Association.		 15,000
MovingTu Balance CIC Towards further financial support. 45,000
OnCommons gGmbH To support continuation of conferences on
bioregionalism.		 62,252
Opus Independents To extend their current funding for another
year.		 120,000
Public Interest Research
Centre		 Support their Building Narrative power
trainingcourse.		 30,000
Racial Justice Network Core costs. 150,000
Research for Action Limited Collaborative research into local
democracy.		 40,000
The Social Change Nest Core costs. 300,000
The Social Change Nest To host fund for the Cross Place
Stewarding Group.		 107,600
SolidarityHull CIC Towards further financial support. 7,500
Spaceship Dot Earth Limited To continue the work to fulfil its charitable
aims.		 30,000
Stir to Action Ltd To continue the work to fulfil its charitable
aims.		 25,000
Ten Years’ Time Enterprises
Ltd		 To support development and
implementation of the TYT Community.		 180,000
The Voice of Domestic
Workers		 To continue the work to fulfil its charitable
aims.		 30,000
Transition Resource Circle via
The New World Foundation		 To continue the work to fulfil its charitable
aims.		 135,000
Unlock National Association of
Ex-Offenders Limited		 Core costs. 25,788
Wevolution To continue the work to fulfil its charitable
aims.		 80,000
WOC Azadi Collective via The
Social Change Nest		 To continue the work to fulfil its charitable
aims.		 50,000
Total 6,278,040

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Financial Report

The Trustees authorised a total budget (excluding investment management and social investment fees) for 2024-25 of £25,620k made up of:

There was also a budget of £21k for capital expenditure.

Total expenditure, excluding investment management fees was £9,031k. This was made up of:

The size of the underspend is partly explained by a shift in timeline for resourcing the transitional structure set out in the trustees’ introduction, and in uncertainty over when we would be able to release funds for the Baobab Foundation. We anticipate both of these expenditure items should now occur in 2025-26.

Income

Total income during the year was £1,309k (2024: £1,544k).

There has been a decline in total investment income from £1,544k to £1,309k, the largest part of this being income from listed investments which decreased from £1,344k to £1,309k.

Social investment income was £19k (2024: £9.5k) consisting of £4.7k loan interests and £14.3k dividends. Other interest income has increased from £60k to £87.8k due to increases in interest rates.

There was no donation received from Northwood Trust in the year (2024: £Nil).

Fundraising practice

LankellyChase Foundation does not derive any income from fundraising. LankellyChase Foundation does not engage in public fundraising and does not use professional fundraisers or commercial participators. The Foundation nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and the Foundation received no complaints relating to its fundraising practice.

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Spending policy

Trustees and staff regularly review progress against the Foundation’s strategic aims and a workplan is developed by the staff team (plus external partners with regards to place-based work).

The budgeting process for 2024-25 was led by the leadership team, with input from the rest of the team. The final budget was approved by the Trustees, who noted that the budget was subject to variations in the timeline that might shift some substantial items into the following financial year.

It is our vision and mission that are the main determinants of each year’s expenditure.

Investment strategy

During the year, Trustees reviewed and updated the investment strategy to reflect the Foundation's intention to fully distribute its assets and close by March 2028. The new Investment Policy states the Trustees' objective to have as much clarity as possible about the value of the assets available for distribution over this period and to ensure that these assets remain sufficiently liquid to meet drawdown requirements.

Trustees decided that assets should therefore be invested in such a way as to maximise capital preservation and minimise volatility. To the extent possible while meeting these priorities, Trustees also wish to protect the real value of the assets against inflation and to ensure that assets are not invested in ways which conflict with Lankelly Chase’s objectives and mission. All assets transferred to this new structure ahead of the considerable volatility in the markets that began in April 2025.

Investment management

Following the approval of the new Investment Policy, the Foundation liquidated its existing portfolio structure and appointed Cazenove Capital to manage a "deaccumulation" portfolio comprising sterling-denominated bonds with high-credit ratings which are held to maturity to match our cash drawdown requirements up to the anticipated closure in March 2028. Alongside this, around 10% of assets have been invested in the Schroder Sustainable MultiAsset Fund and cash is held in a highly-rated ESG liquidity fund.

Performance

Ahead of implementing our new Investment Policy, we held firm in 2024-25 to our strategy of investing as far as possible in equities that have the lowest impact on the sustainability of life on the planet. The performance of this portfolio was nonetheless strongly dependent on overall growth in equity markets, and as such has been disappointing. We were comfortable however that we should not be seeking to outperform the market through investment mechanisms whose impact on sustainability we could not account for.

The Foundation's investment portfolio produced a financial return of negative 0.1% during the year, compared to a positive return of 7.3% in the preceding year. After cash withdrawals, this

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saw the value of invested assets decrease from £121.4m at 31st March 2024 to £96.9m at 31st March 2025.

Social investments

Social investments are not an active part of the investment strategy, and no new social investments were made in the year to 31 March 2023. Following further repayments of capital during the year, legacy social investments at 31 March 2025 totalled £877,703 (2024: £886,452).

Reserves policy

As the Foundation’s endowment is expendable, it is all available for use at the discretion of the trustees in furtherance of the charitable objects of the Foundation.

Trustees consider it prudent to have short-term access to cash equal to approximately twelve months’ projected expenditure.

Remuneration policy

The overall goal of the Foundation’s remuneration policy is to ensure that staff members are remunerated fairly and in a way that ensures that the Foundation attracts and retains the right skills to have the greatest impact in delivering our charitable objectives.

Lankelly Chase aims to maintain a competitive and fair salary structure which is clearly defined and communicated to all employees with procedures that are applied consistently in a nondiscriminatory manner. The Foundation benchmarks salaries against an appropriate comparative sector/set of organisations. Benchmarked bands are agreed for each post and set by the Resources and Risk Committee. A Pay Committee comprising the senior management team approves individual salary changes up to and including Director roles. The CEO salary is approved by the Board.

Lankelly Chase is a living wage employer and commits to paying at least the London Living Wage to all employees, including interns.

Lankelly Chase offers an Enhanced Parental Leave policy offering all new parents the same opportunity to take paid leave, regardless of gender, sexual orientation or how they became a parent (whether through birth, adoption, parental responsibility or surrogacy). This has been made available after passing probation, rather than the original requirement of 12 months of service and reflects a commitment to living the values of the Foundation.

The Foundation does not currently pay remuneration to Trustees.

Statement of responsibilities of the Trustees

The Trustees (who are also Directors of Lankelly Chase Foundation for the purposes of company law) are responsible for preparing the report of the Trustees and the financial

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statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. As far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The report of the Trustees has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the Trustees on 3[rd] December 2025 and signed on their behalf by

Asif Afridi Chair of Trustees

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Independent auditor’s report to the members of The LankellyChase Foundation

Opinion

We have audited the financial statements of The LankellyChase Foundation (the ‘charitable company’) for the year ended 31 March 2025 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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 LankellyChase Foundation’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.

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Other information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Responsibilities of Trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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

A further description of our responsibilities 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.

Jonathan Orchard (Senior statutory auditor)

16 December 2025

for and on behalf of Sayer Vincent LLP, Statutory Auditor

110 Golden Lane, LONDON, EC1Y 0TG

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Statement of financial activities for the year ended 31 March 2025

Note
Income from:		 2025
2024
£
£
Investments
2
Donations
Other income		 1,309,459
1,344,416
60
-
-
200,000
1,309,519
1,544,416
101,315
99,895
9,031,150
15,568,897
9,132,465
15,668,792
(7,822,946)
(14,124,376)
(1,263,048)
8,342,653
Total incoming resources
Expenditure on:
Investment management fees
Charitable activities
3
Net expenditure before net (losses)/gains on
investments
Total expenditure
Net (losses) on investments
Net movement in funds
4
Reconciliation of funds:
Total funds brought forward at 31 March
Total funds carried forward at 31 March		 (9,085,994)
(5,781,723)
115,964,095
121,745,818
106,878,101
115,964,095

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 16 to the financial statements.

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The LankellyChase Foundation

Balance sheet as at 31 March 2025

Note
Fixed assets		 £ £
£
£
2024
2025
Tangible assets
10		 13,349
25,827
Investments
Managed funds
11
Social investments
12		 96,926,184
121,374,754
877,703
886,452
Current assets
Debtors
13
50,055
Cash at bank and in hand
12,828,743
12,878,798
Liabilities
Creditors: amounts falling
due within one year
14
(3,817,933)
Net current (liabilities)/assets
Total assets less current liabilities		 50,055
12,828,743		 97,817,236
122,287,033
50,036
2,200,157
2,250,192
(8,423,130)
9,060,865
(6,172,938)
106,878,101
116,114,095
12,878,798
(3,817,933)
Creditors: amounts falling
due after one year
15		 -
(150,000)
Total net assets
The funds of the charity
Restricted funds
16		 106,878,101
115,964,095
-
-
Unrestricted funds
16		 106,878,101
115,964,095
106,878,101
115,964,095

The financial statements were approved by the Board of Trustees and authorised for issue on 3[rd] December 2025 and are signed on its behalf by:

Company registration number 5309739

Asif Afridi Chair of Trustees

21

The LankellyChase Foundation

Statement of cash flows for the year ended 31 March 2025

==> picture [452 x 318] intentionally omitted <==

----- Start of picture text -----
Note 2025 2024
£ £ £ £
Cash flows from operating activities
Net income/(expenditure) for the reporting
period
As per the statement of financial activities (9,085,994) (5,781,723)
Depreciation charges 14,212 18,906
Losses/(gains) on investments 1,263,048 (8,342,653)
Dividends and interest from investments (1,309,459) (1,344,416)
(Profit)/loss on the disposal of fixed assets 119 -
(Increase)/Decrease in debtors (19) 56,482
Decrease/(Increase) in creditors (4,755,195) (2,859,360)
Net cash used in operating activities (13,873,288) (18,252,764)
Cash flows from investing activities:
Dividends and interest from investments 1,309,458 1,344,416
Proceeds from the sale of fixed assets 1,050 -
Purchase of fixed assets (2,903) (2,848)
Return or impaiments of social investments 8,749 8,749
Movement on cash within investments 2,950,339 (2,367,292)
Proceeds from sale of investments 149,679,779 26,673,588
Purchase of investments (129,444,597) (7,969,609)
Net cash provided by investing activities 24,501,875 17,687,003
10,628,587 (565,761)
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward at 1 April 2,200,157 2,765,917
Cash and cash equivalents carried forward at 31
March 12,828,743 2,200,156
----- End of picture text -----

22

The LankellyChase Foundation

Notes to the financial statements for the year ended 31 March 2025

1. Accounting Policies

Basis of preparation

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

Going concern

All assets transferred to a new portfolio largely comprising sterling-denominated bonds with high-credit ratings ahead of the considerable volatility in the markets that began in April 2025. As such, the Trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Income

Investment income is accounted for when received by the Foundation or its agents. Social investment interest income is recognised when receivable on an accruals basis. Other income is accounted for when the amount receivable can be identified with reasonable certainty. In practical terms this is generally the date of receipt.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity heading: expenditure on charitable activities which includes the costs of programme activities and grantmaking undertaken to further the purposes of the charity and their associated support costs.

Charitable activities are those costs relating to the programme activities of the Foundation and include grants, governance and support costs. Grants are generally payable in instalments over a number of years. The full amount of the grant however is accounted for in the year in which the decision is made rather than the year in which payment is made. These grants fall due for payment when all conditions have been met. These conditions will vary according to the purpose and period of the grant.

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The LankellyChase Foundation

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Investment managers' fees are grossed up for any rebates received.

Governance costs are the costs associated with the strategic direction of the organisation and with meeting regulatory responsibilities.

Support costs are those related to all the other activities of the organisation and are apportioned on the basis set out in note 4.

Allocation of support costs

Resources expended are allocated to the activity where the cost relates directly to that activity. However, the cost of the overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the basis of the proportion of staff time attributable to each activity.

Operating lease commitments

Rental charges are charged on a straight line basis over the term of the lease.

Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Leasehold improvements over the remaining life of the lease Office furniture and equipment 25% per annum

Investments

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. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be included in unrestricted reserves in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities (SOFA). The Foundation does not acquire put options, derivatives or other complex financial instruments.

Social investments

Social investments are carried at fair value or impaired cost where it is not practicable to recognise at fair value. Such investments are subject to regular review and any impairment is charged to the SOFA. Investment valuations are not enhanced to more than original cost.

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The LankellyChase Foundation

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Pension costs

Contributions by the Foundation to the personal, money purchase, pension schemes held in the names of the individual employees are recognised in the year in which they are payable.

Funds

As the Foundation’s endowment is expendable, unrestricted funds are available for use at the discretion of the Trustees in furtherance of the charitable objects of the Foundation. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors.

2. Income from investments

2025
£		 2024
£
Listed investments
Interest on cash held as part of the investment portfolio
Bank interest
Social investment income		 1,202,152
506
87,804
18,997		 1,275,062
-
59,828
9,525
Total investment income 1,309,459 1,344,416

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The LankellyChase Foundation

3. Expenditure on charitable activities

For 2024-25 we continued a thematic approach where Portfolio Teams looked after a particular area of the Foundation’s work. The budget was set up in this way and so expenditure for the statutory accounts has followed the same approach, as set out below.

Programme-related costs
Strategic areas:
Place
Comms
Support/ Bridging grants
Transition Pathway
How
Other		 2025
2024
£
£
4,132,006
6,218,603
166,670
88,999
2,112,252
1,054,975
111,795
11,341
(32,484)
5,786,094
5,058
(3,243)
6,495,296
13,156,769
Governance costs (note 5)
Support costs (note 6)		 266,847
376,567
2,269,007
2,035,562
9,031,150
**15,568,897 **

4. Net income/(expenditure) for the year

This is stated after charging/(crediting):

2025
2024
£
£
Depreciation 14,212
18,906
Operating lease rentals
Property
Other
Auditor's remuneration (excluding VAT):
Audit
VAT on audit cost		 98,776
94,651
10,392
13,022
16,300
15,500
3,260
3,100

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The LankellyChase Foundation

5. Governance costs

Governance costs reflect the priority we have given to sound management of the change process and to generating learning that can be used by others. These one-off costs will be more than offset by expected falls in recurring institutional overheads, such as investment management fees (over £100,000 in 2024-25) and operational costs, as our assets start to transfer to communities.

2025
2024
£
£
Legal expenses
Auditor's remuneration
Membership of PRI		 40,528
9,285
19,560
18,600
-
1,122
Trustee expenses 16,405
9,064
Trustee training and conferences
Trustee meeting costs
Board advisors, facilitation, learning, stakeholder consultation, change management
Other governance related administration expenses		 2,170
16,012
19,744
70,469
167,530
251,133
910
882
266,847
376,567

6. Support costs

The key elements of support costs are set out below:

Staff costs (note 7)
Recruitment costs
HR-related costs
Premises costs including utilities and repairs
Legal and professional costs
Travel, subsistence and hosting of events
Training and conferences
Subscriptions and memberships
Telephone, postage, stationery and printing
Website and IT costs
Bank charges		 2025
2024
£
£
1,578,179
1,568,402
23,400
-
25,666
53,457
120,252
116,697
35,522
27,604
19,472
50,206
206,676
135,477
19,176
34,317
27,901
21,765
197,179
24,537
1,271
1,502
Sundries (17)
(17,310)
Depreciation 14,212
18,906
Loss on disposal of fixed assets 119
-
2,269,007
2,035,562

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The LankellyChase Foundation

7. Analysis of staff costs, Trustee expenses and the cost of key management personnel

Staff costs were as follows:

2025
2024
£
£
Salaries 992,105
1,145,394
Social security costs
Employer contribution to defined contribution pension
schemes
Temporary staff
Other forms of employee benefits
Redundancy and termination costs		 116,015
132,940
154,718
150,970
131,040
51,677
4,117
4,683
180,183
82,739
1,578,179
1,568,402

The following number of employees received benefits in excess of £60,000 (excluding employer pension costs and employer National Insurance contributions) during the year between:

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£150,001 - £160,000		 2025
2024
No.
No.
2
-
-
3
4
2
1
-
-
1

The total employee benefits including employer pension contributions and employer National Insurance contributions of the key management personnel were £602,748 (2024: £737,618).

The Chief Executive received a gross salary after salary sacrifice with employer pension contributions in the following band: £150,001 - £160,000 (2024: £140,001 - £150,000).

The key management personnel (including the Chief Executive) received salary payments (gross salaries after sacrifice) plus employer pension contributions and other benefits in the following bands.

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The LankellyChase Foundation

Key management personnel

2025 2024
No. No.
£80,001 - £90,000 - 2.9
£90,001 - £100,000 3.0 1.0
£100,001 - £110,000 1.0 -
£140,001-£150,000 - 1.0
£150,001-£160,000 1.0 -
£170,001-£180,000 - 1.0
Total 5.0 5.9

Trustees' expenses represent the payment or reimbursement of travel and subsistence costs totalling £16,405 (2024: £9,064). 7 Trustees incurred expenses (2024:5) relating to attendance at meetings of the Trustees.

The Foundation’s Trustees were not paid nor received any other benefits from employment with the Foundation in the year (2024: £nil).

8. Staff numbers

The average monthly number of employees (head count based on number of staff employed) during the year was 14.3 (2024: 18.3).

9. Related party transactions

There was only one related party transaction in the year, the purchase of services from a company controlled by the close family member of a trustee, which is listed below (2024: None). No amounts were owed at year end.

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The LankellyChase Foundation

10. Tangible assets

Cost
At 31 March 2024		 Leasehold
improvements
£
144,620		 Furniture &
equipment
Total
£
£
152,691
297,311
Additions - 2,903
2,903
Disposals
At 31 March 2025
Depreciation		 -
144,620		 (4,833)
(4,833)
150,761
295,381
At 31 March 2024 144,620 126,864
271,484
Charge for the year
On disposals
At 31 March 2025		 -
-
144,620		 14,212
14,212
(3,664)
(3,664)
137,412
282,032
Net book value at 31 March 2025 - 13,349
13,349
Net book value at 31 March 2024 - 25,827
25,827

All assets are used for charitable purposes.

11. Investments – managed funds

Investments comprise:

2025
2024
£
£		 2025
2024
£
£
Listed investments 95,417,969
116,916,200
Cash held as part of the investment portfolio
Total market value		 1,508,215
4,458,555

121,374,755
96,926,184

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The LankellyChase Foundation

2025
£		 2024
£
Fair value at 1 April
Additions at cost
Disposal proceeds		 116,916,200
129,444,597
(149,679,779)		 127,277,526
7,969,609
(26,673,588)
Net (loss) on change in fair value (1,263,049) 8,342,653
Fair value at 31 March
Cash balances
Total Market Value		 95,417,969
1,508,215
96,926,184		 116,916,200
4,458,555
121,374,755

12. Investments – social investments

The movement in social investments held by the Foundation during the year ended 31 March 2025 and the previous year are shown in the two tables below:

Year end 31 March 2025
Charity Bank
Social Justice and Human Rights Centre
Resonance Real Lettings Property Fund		 At 1 April 2024
£
200,000
500,000
186,452		 Purchases in year/
(return of capital)
£
-
-
(8,749)
(8,749)		 Impairment
reversal
At 31 March 2025
£
£
-
200,000
-
500,000
-
177,703
-
877,703
886,452
Year end 31 March 2024
Big Issue Invest
Charity Bank
Social Justice and Human Rights Centre
Resonance Real Lettings Property Fund		 At 1 April 2023
£
-
200,000
500,000
195,201		 Purchases in year/
(return of capital)
£
(3,243)
-
-
(8,749)
Impairment
reversal
At 31 March 2024
£
£
3,243
-
-
200,000
-
500,000
-
186,452
3,243
886,452
895,201 (11,992)

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The LankellyChase Foundation

13. Debtors

Other debtors
Prepayments		 2025
2024
£
£
3
11,498
50,052
38,538
50,055
50,036

14. Creditors: amounts falling due within one year

Trade creditors
Grants payable within one year
Taxation and social security		 2025
2024
£
£
133,914
101,145
3,440,518
8,027,774
(573)
57,831
Other creditors -
20,636
Accruals 244,070
215,741
3,817,928
8,423,127

Reconciliation of movement in grants creditors

2025
2024
£
£
At 31 March 2024
Grants falling due within one year
Grants falling due after more than one year
Total grants creditor		 8,027,774
8,981,309
150,000
2,157,379
8,177,774
11,138,688
Grant adjustments (170,278)
(95,261)
New grants awarded in year
Grants paid in year		 6,278,040
12,154,395
(10,845,019)
(15,020,048)
At 31 March 2025 3,440,518
8,177,774
At 31 March 2025
Grants payable within one year
Grants payable after more than one year
Total grants creditor		 3,440,518
8,027,774
-
150,000
3,440,518
8,177,774

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The LankellyChase Foundation

15. Creditors: amounts falling due after one year

There are no payable grants after one year. The intention is to settle all grants liabilities as at 31[st] March 2025 in 2024-25 financial year.

2025
2024
£
£
Grants payable (all payable in 2-5 years) -
150,000
-
150,000

16. Movement in funds

As the Foundation’s endowment is expendable, there is no distinction between the endowment and unrestricted reserves. These funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation.

Current year

At 31 March
2024
£		 Incoming
resources &
gains
£		 Outgoing
resources &
losses
At 31 March
2025
£
£
Unrestricted funds 115,964,095 46,470 (9,132,465)
106,878,101
Total funds 115,964,095 46,470 (9,132,465)
106,878,101

Prior year

At 1 April 2023
£		 Incoming
resources &
gains
£		 Outgoing
resources &
losses
At 30 March
2024
£
£
Unrestricted and total funds
Restricted funds
Total funds		 121,745,818
-
121,745,818		 9,687,069
200,000
9,887,069		 (15,468,792)
115,964,095
(200,000)
-
(15,668,792)
115,964,095

33

The LankellyChase Foundation

17. Operating lease commitments

The Foundation’s total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

2025
2024
£
£
Land and buildings		 2025
2024
£
£
Land and buildings		 2025
2024
£
£
Other assets		 2025
2024
£
£
Other assets
Less than one year
One to five years		 98,752
263,339		 94,892
362,091		 626
-		 8,469
626
362,091 456,983 626 9,095

18. Legal status of the charity

The Foundation is a charitable company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

34