OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

← The February Foundation

2025-02-28-accounts

The February Foundation

Annual Report and Financial Statements

28 February 2025

Company Limited by Guarantee Registration Number 05718135 (England and Wales) Charity Registration Number 1113064

Contents

Reports

Reference and administrative information 1
Trustees
report		 2
Independent auditor
s report		 18
Financial statements
Statement of financial activities 22
Balance sheet 23
Statement of cash flows 24
Principal accounting policies 25
Notes to the financial statements 29

The February Foundation

Reference and administrative information

Trustees
Chief Executive and Company Secretary
Registered office
Company registration number
Charity registration number
Auditors
Bankers and investment managers
Solicitors
Website		 James Carleton
Mark Clarke
Michael Moody
Richard Pierce-Saunderson
London
WC2A 3LH
05718135 (England and Wales)
1113064
Buzzacott Audit LLP
130 Wood Street
London
EC2V 6DL
C Hoare & Co
37 Fleet Street
London
EC4P 4DQ
UBS Wealth Management
1 Finsbury Avenue
London
EC2M 2AN
Investec Wealth & Investment Limited
2 Gresham Street
London
EC2V 7QN
Farrer & Co LLP
London
WC2A 3LH
www.thefebruaryfoundation.org

The February Foundation 1

report Year to 28 February 2025

The trustees present their statutory report together with the financial statements of The February Foundation for the year to 28 February 2025. The trustees are also directors of the Foundation for the purposes of company law and the trustees report contains a and strategic report as required by the Companies Act 2006.

This report has been prepared in accordance with Part 8 of the Charities Act 2011.

The financial statements have been prepared in accordance with the accounting policies set out on pages 25 to 28 of the attached financial statements and comply with the Memorandum and Articles of Association of The February Foundation, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

GOVERNANCE, STRUCTURE AND MANAGEMENT

Constitution

The February Foundation was incorporated on 22 February 2006 as a company limited by guarantee under company registration number 05718135. On 23 February 2006, the Foundation registered on the Central Register of Charities under registration number 1113064.

Trustees

The names of the trustees as at the date of this report are set out as part of the reference and administrative information on page 1 of these Annual Report and Financial Statements. There were no changes in trustees for the year under review.

Recruitment and appointment

The appointment of trustees is governed by the Memorandum and Articles of Association of the Foundation. All trustees must be aged at least 18, and there must at all times be a minimum of two and a maximum of five trustees. Upon appointment every trustee must sign a declaration of willingness to act as a trustee of the Foundation before he or she may vote at any meeting of the trustee. Trustees shall hold office for three years but may be reappointed.

Induction and training

The Foundation recognises that new and current trustees should be aware of the are provided with a copy of the Memorandum and Articles of Association, the grant giving

The trustees are provided with appropriate updates relating to matters impacting upon charity law and the running and administration of the Foundation from their professional advisers. They also attend external training events where appropriate.

The February Foundation 2

report Year to 28 February 2025

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

The trustees (who are also directors of The February Foundation for the purposes of 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 Foundation and of the income and expenditure of the Foundation for that period. In preparing these financial statements, the trustees are required to:

make judgements and estimates that are reasonable and prudent;

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

Each of the trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The trustees are responsible for the maintenance and integrity of financial information preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The February Foundation 3

report Year to 28 February 2025

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Key management personnel

The trustees consider that the board of trustees and Chief Executive comprise the key management personnel in charge of directing and controlling, running and operating the Foundation on a day-to-day basis.

The trustees give their time freely and no trustee received remuneration in the year.

The pay of the Chief Executive is reviewed annually by the trustees.

Organisation

The trustees are ultimately responsible for the policies, activities and assets of the Foundation. They meet formally at least twice a year. The trustees must approve any grants made by the Foundation before such grants are made.

The main functions of the Chief Executive comprise the following:

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES

Charitable objectives and activities

as follows:

The Foundation makes grants to a range of charities and charitable activities in accordance decided to continue with the policy of some eligibility exclusions. These are detailed in the grant making policy section of this report.

The February Foundation 4

report Year to 28 February 2025

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

Public benefit

charitable purposes in the Charities Act 2011, and, in particular, the relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage, the advancement of education, the advancement of the arts, culture, and heritage.

Grant applications for any charitable purpose are considered by the trustees. To date, all grants have been awarded to registered charities, and the beneficiaries are those of the recipient charities. The charities supported by the Foundation during this financial year are active in end-of-life care, healthcare and patient support, and education.

Grant making policy

In the year under review, the following grant making policy applied:

The trustees will normally award grants to registered charities.

The trustees will consider new applications from:

charities whose charitable objectives are aligned with those of the Foundation.

The trustees will not consider new applications from:

The February Foundation 5

report Year to 28 February 2025

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

Grant making policy (continued)

Charities with a commercial bias for a particular product or company;

Sports clubs, unless only for the mentally or physically disabled;

The February Foundation 6

report Year to 28 February 2025

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

Grant making policy (continued)

Exceptions to this exclusions policy will be reviewed on a case-by-case basis in the light of the status of the applicant, its organisational structure (for example was it established for philanthropic and benevolent purposes), and the purpose of the grant.

There is no minimum grant. The average grant is usually £5,000 per award, but this is reviewed on a case-by-case basis. Terms and conditions for grants will be discussed and approved by the trustees on a case-by-case basis. The trustees may decide to award grants without any accompanying conditions.

Investment policy

The Foundation has a portfolio of investments with Investec and UBS which had a market value of £70,367,503 including cash held by the investment managers, at 28 February 2025 (2024 - £79,373,785).

The investment policy of the Foundation is to seek a balanced return from capital growth over the medium term.

The investment portfolio policy is:

The trustees seek the investment managers to be custodians of the investment portfolio. It

Periodic meetings are held with the investment managers who provide the trustees with reports for the preceding half-year.

The trustees seek to minimise risk by:

The February Foundation 7

report Year to 28 February 2025

STRATEGIC REPORT

Achievements and performance

Review of activities

In the year under review, there was sharply increased need in the Third Sector, which continued to face an adverse, and arguably worsening, funding landscape. Despite inflation growth slowing, fixed overhead costs continued to rise for the whole of the sector. The funding crisis in the hospice sector worsened. The Foundation therefore focused on balancing the funding priorities in this, its original and core constituency, and fulfilling existing commitments.

The Foundation continued its standard applications process with a maximum 12-week response time, and monthly grant distributions. In terms of the number of Foundation grants made, core and operating cost grants accounted for around 25%, with most applications core and operating cost grants continued in order to ensure that such grants would directly benefit the ultimate beneficiaries in recipient charities. Reporting requirements and criteria remained flexible in recognition of the immense pressures on all charities and their staff. It is important to note, as always, that reporting requirements can never be entirely removed; recipient charities and funders quite rightly are more publicly accountable than ever.

In the year under review, the Foundation retained its requirement for applications to contain additional information in order to overcome the average 9-month lag between the end of financial years and the publishing of audited accounts. The intention of gathering this at the time of application) is to allow informed decision-making by the trustees. It is important once again to emphasise that the Foundation gathers this information confidentially. This information gathering also enables the Foundation to build a better picture of the context in which applicant charities operate. The trustees do not anticipate changing the requirement for additional information.

are their most important support tool in raising funds, providing important contextual information, and that they should therefore be presented clearly and simply, and include as much data and information as possible (such as service user numbers and their comparatives, user feedback data and their comparatives, service delivery successes and difficulties). It was disconcerting, in view of the difficult funding landscape, to see an increasing number of annual reports which did not contain comparative user data, and, in some cases, very little user data at all. The inclusion of as much detailed and in-depth information in annual accounts (and applications) is really important because it increases the ability of charities to raise funds from all potential funders, not just from the Foundation.

The Foundation remains in a strong position, both financially and procedurally, to be able quickly and effectively to support its core constituencies. Its vision has always been to be a funder of longevity, to spend within its means, and to offer not only financial support but also advice to those charities it deals with. This vision continues to prove its value at all levels.

The February Foundation 8

report Year to 28 February 2025

STRATEGIC REPORT (continued)

Achievements and performance (continued)

Review of activities (continued)

The Foundation continued to structure its giving in an informed manner, with in-depth research on applications, and extensive due diligence on significant projects. In the year under review, 587 charities were evaluated (compared to 724 in the previous year, a 17.9% decrease), which had either applied to the Foundation, or which were selected by the Foundation as potential candidates for funding. This reduction was surprising and is very probably linked to a significant rise in pre-application enquiries received which were not previous grant recipients until the 13[th] month after their most recent grant also has a cyclical impact on the volume of applications.

Whilst a majority of applications and approaches to the Foundation in the year under review continued to be focused, well-targeted, complex, and intelligent, and based on thorough research of potential funders, and demonstrated sound financial management and significant beneficial soft and hard outcomes for their stakeholders, the number of applications which did not did not exhibit these qualities rose again. Applicants either failed not adhere to the application guidelines provided directly by the Foundation. Potential applicants to any grant m to give fundraisers as much universally applicable guidance as possible.

In the year under review, 23.5% of applications were successful, down from 23.9% in 2023/24, 27.5% in 2022/23, and 29.0% in 2021/22. 5.9% of applications to the Foundation were ineligible to apply (compared to 2.8% in the previous year).

addition to those outlined above, were:

The February Foundation 9

report Year to 28 February 2025

STRATEGIC REPORT (continued)

Achievements and performance (continued)

Review of activities (continued)

It is important, especially in times of severe crisis, for applicant charities to present to all potential funders cogent cases for funding, including those beneficial soft and hard outcomes referred to above. At the risk of repetition, this is why it is so important to include as much data as possible in applications, to allow funders to make fully informed decisions.

potential grant recipients which are engaged in projects that the Foundation considers to be significantly innovative and with the potential of having enduring impact, usually nationally. Any such grants, once agreed, are usually subject to confidentiality clauses unless the Foundation considers publicity for such grants to increase their potential reach and impact. Large grants are usually a mix of matched funding and conditional funding dependent on the achievement of key performance indicators agreed by recipient charities and the Foundation.

The Foundation continued its aim to become a wholly paperless organisation in the year under review, but 3.1% of incoming applications were on paper, up from 2.8% in the previous year, 3.2% in 2022/23, 3.9% in 2021/22, 5.5% in 2020/21, and 10.8% in 2019/20. Although this is still a very small percentage, combined with another rise in hardcopy reports, newsletters, and mailshots, it is a concern, both in terms of environmental impact and in terms of expense for already cash-strapped charities.

Governance Handbook in its entirety, with only minor updates made.

Grants made

32,710,278. Grants payable represent 167 grants made to 161 charitable organisations. Of this total, £2,452,901 of grants were existing matched funding commitments, where conditions had been met in the 2023/24 financial year.

Education

The Foundation paid 6 grants totalling £4,829,432 to two organisations. All of these grants were under commitments made in previous years, where conditions were met in the year under review.

trustees believe that the grant commitments they have made in this area now create a pathway from Reception to undergraduate level for low-income students to access highquality education, which is entirely in line with their objectives in this area. It is for this reason that the Foundation is not accepting new applications in this area.

The February Foundation 10

report Year to 28 February 2025

STRATEGIC REPORT (continued)

Achievements and performance (continued)

Grants made (continued)

End-of-life care

The Foundation paid 77 grants totalling £403,972 to 77 organisations.

The Foundation remains committed to supporting end-of-life care at the grassroots level, mainly in a hospice or hospice-at-home context, with a renewed focus on this sector due to its ongoing funding crisis.

Caseloads in the sector continue to rise, with a very high number of patients at the very end of life, and with increasingly complex conditions. Hospices continue to struggle with staff shortages, mainly due to lack of funding.

Heritage

The Foundation made no grants to the heritage sector in the year under review. Whilst cognisant of the fact that heritage and culture organisations are being significantly affected by the current economic climate, the trustees considered its existing education, health and social care related areas a greater priority. The Foundation is still accepting applications from heritage and culture charities.

Healthcare and patient support (excluding end-of-life care)

The Foundation paid 66 grants totalling £322,167 to 66 organisations.

The Foundation makes grants to charities which support the ill, and the physically and mentally disabled, to empower them to improve the quality of their lives, and to seek to live as independently as possible.

These grants are a mix of local and national level funding, with levels of need varying greatly between the regions.

Other

The Foundation made 18 grants totalling £218,708 to 16 organisations either not included in the areas above or overlapping the areas above.

The Foundation also made a donation of £26,936,000 to a UK charity with charitable purposes in line with the objectives of the Foundation.

Measuring impact

There are so many different definitions of impact measurement in The Third Sector that it is impossible to arrive at a benchmark for best practice. The continued discrediting of the effective altruism movement also puts into perspective impact measurement approaches which look solely at value for money outcomes. The Foundation believes that, although basic sound finance and business management principles should guide all charities, every charity is unique, and that evaluating impact has to be on a case-by-case basis.

The February Foundation 11

Year to 28 February 2025

STRATEGIC REPORT (continued)

Achievements and performance (continued)

Measuring impact (continued)

For this reason, the Foundation asks its grant recipients to provide a 1-month and a 6-month report not only on the spending of the grants received, but also on the activities of grant recipients as a whole. This approach ensures contextual reporting rather than looking at one single project in isolation and impact.

In addition, during the evaluation of applications, the Foundation looks closely not just at quality of life benefits. What this front-loaded approach achieves is to balance hard outcomes (financial, data from impact measures such as GAD-7 and PHQ-9, WarwickEdinburgh Mental Wellbeing Scales, and similar) with soft outcomes (quality of life, serviceuser-defined improvements in physical and mental wellbeing), which establishes during the application process whether or not any applicant charity is being impactful. Financial data and performance give a view on the quality of management and efficiency of charities, whilst soft outcomes (including anecdotal evidence) provide an insight into the real impact charities have on the lives of their service users, who are the ultimate stakeholders of all charities, including trusts and foundations.

The gathering of information pre-application, combined with post-grant reporting, allows the Foundation to make judgements on impact on a case-by-case basis, and the trustees feel eficial impact for the ultimate beneficiaries of recipient charities.

Financial review

Results for the year

5 amounted to £34,342,893 (2024 - £8,482,560). The majority of the a gift of shares with a market value of £25,389,000 (2024 - £nil). I investment portfolio and cash deposits totalled £4,494,047 (2024 - £5,589,528); and income from donations totalled £4,459,846 (2024 - £2,893,032).

Expenditure on charitable activities totalled £30,682,096 (2024 - £4,298,904). This is made up of donated investments with a market value of £26,936,000 (2024 - £nil); total grants paid to institutions of £3,595,078 (2024 - £4,154,959); and grant and Foundation administration costs, including governance costs of £151,018 (2024 - £143,945). Investment management costs for the year amounted to £152,464 (2024 - £126,492).

Net income £3,508,333 (2024 - £4,057,164). After recognising losses on the disposal of investments of £67,679 (2024 gains of £623,219) and losses arising from movements in the market value of investments of £8,217,172 (2024 £11,782,851), the Foundation saw a total decrease in funds for the year of £4,776,518 (2024 £7,102,468). Total funds of the Foundation at 28 February 2025 amounted to £64,055,628 (2024 - £68,832,146).

The February Foundation 12

Year to 28 February 2025

Financial review (continued)

Reserves policy

risks to the Foundation. The trustees have established a reserves policy to protect the Foundation and its long-term charitable giving programme by providing time to adjust to changing financial circumstances.

The trustees have agreed that it would be in the best interests of the Foundation to continue to build up an expendable endowment fund to support its future grant making activities and provide the Foundation with an asset base to allow for its long term sustainability. Movements on the endowment fund are generated from significant donations of cash or equities to or by the Foundation, changes in the market value of the underlying investment portfolio, gains or losses realised on sale and after transfers, unrestricted income funds. At 28 February 2025 the expendable endowment was £45,273,853 (2024 - £50,798,322) which the trustees consider to be adequate to meet the

The unrestricted income fund represents cumulative surplus arising from investment income exceeding charitable expenditure over the past five years. The purpose of the unrestricted income fund is to ensure the Foundation holds sufficient liquid assets to meet its approved budget which has led to an increase in unrestricted funds. At 28 February 2025 the income fund was £18,781,775 (2024 - £18,033,824), which the trustees consider to be adequate to

The Foundation prepares budgets with an anticipated annual grant expenditure in the range of £6.0m - £8.0m in any given year, and cash flow projections are prepared on this basis and regularly reviewed by the Foundation to ensure that assets are available to provide the liquidity needed to allow the Foundation to be in a position to meet its commitments. Assets identified to meet short-term commitments are cash and investments that can be easily liquidated.

At 28 February 2025, the Foundation held £4,883,607 of cash, as well as an investment unrestricted funds, they will draw on the expendable endowment to meet those commitments as they see fit. The reserves policy is reviewed annually to reassess the risks ong-term plans for charitable expenditure. bond portfolios on a regular basis with their investment managers both to ensure that the investments are appropriate in all the circumstances and in particular given market volatility.

The February Foundation 13

Year to 28 February 2025

Fundraising

The Foundation does not fundraise directly with individuals and therefore is not registered with the Fundraising Regulator. No fundraising activities are undertaken and if donations from individuals are received, the Foundation aims to protect personal data and would never sell data or swap data with other organisations.

Future plans

that it is important for the Foundation to be open to applications across a range of charitable activities rather than focusing on one area to the exclusion of all others whilst being cognisant of the fact that only a small percentage of applications can be supported.

The Foundation will continue with this approach for the year ending 28 February 2026, with a focus on maintaining its current maximum 12-week application processing time. The trustees are cognisant of the fact that this approach, combined with external factors such as overly high funding ratios and a failure by applicants to follow application guidelines, has historically translated to a relatively low success rate for applicants.

The Foundation's strategy is to be a proactive grant maker which seeks to anticipate need and changes in the charitable sector, as well as responding quickly, effectively, and appropriately to crises. In addition, the Foundation wishes to continue its support of the community-based palliative care sector. In essence, this means that the trustees will continue to make difficult decisions on a monthly basis with due regard to their ongoing commitments.

Looking ahead, the Foundation plans to maintain its strategy of funding grants and operations through income generated from the endowment alone. With this in mind, the trustees have again reviewed the Foundation's grant-making policy, and have determined that, for the financial year ending 28 February 2026, they will continue with the broad grantmaking policy outlined on pages 5 to 7 of this report.

consider new applications from:

Air ambulances;

The February Foundation 14

Year to 28 February 2025

STRATEGIC REPORT (continued)

Future plans (continued)

The February Foundation 15

Year to 28 February 2025

STRATEGIC REPORT (continued)

Future plans (continued)

Exceptions to this exclusions policy will be reviewed on a case-by-case basis in the light of the status of the applicant, its organisational structure (for example was it established for philanthropic and benevolent purposes), and the purpose of the grant.

Looking further ahead, the Foundation will continue to research existing charities in addition to continuing to consider unsolicited applications within the policy.

The trustees discuss the Foundation's grant-making policy on an ongoing basis and believe that their wide discretion allows the Foundation to be both innovative and supportive of a large variety of charitable projects and bodies, and that this continues to facilitate the s strategy to become an entirely paperless organisation, and will continue to strongly encourage applicant charities to submit their applications by email rather than by post, with the aim of reducing hardcopy applications and correspondence to 2.5% of all incoming applications and correspondence compared to the 3.1% in the year under review. The beneficial impacts for applicant charities include financial savings, the ability diligence, the ability to create a blueprint for successful applications processes not just in relation to the Foundation, as well as an increase in environmental responsibility. For the Foundation, the beneficial impacts include increased responsiveness, the ability to maintain transparency and speed of response.

The trustees are very cognisant of the impact AI is having on the world at large, and on the Third Sector in particular. They believe that it is very important that any AI output in any sphere (charitable or not) must be fact-checked and emotion-checked. Whilst it may become acceptable for AI tools thus checked to be useful research tools for applicant charities (and the use of them acknowledged by those charities), the Foundation does not believe that non-human due diligence on charities and their real impact or value will ever be possible or desirable or effective.

Risk management

The trustees believe that by monitoring reserve levels and ensuring that controls exist over key financial systems, and by examining from time to time the operational risks faced by the Foundation and its grant giving activities, they have established effective systems to mitigate the major risks to which the Foundation is exposed.

The principal risks faced by the Foundation are as follows:

The February Foundation 16

Year to 28 February 2025

Risk management (continued)

Financial sustainability

The key elements in managing financial sustainability are a regular review of available funds with which to meet current and future grant commitments, regular liaison with investment managers and the bank, and monthly reporting of performance against budget for income and expenditure. In addition, financial risk is mitigated by processes which ensure that all financial instructions are approved by at least two trustees.

Ineffective grant making

The key elements in managing effective grant making are rigorous evaluation of all grant applications (including the process outlined in the Measuring Impact section of this report), robust reporting requirements which need to be fulfilled by grant recipients. Risks are mitigated by a monthly review by the trustees of grant making, recipient reporting, and grant applications.

Investment management

The key elements in effective investment management are a trustee body with a skill set appropriate to evaluating investment performance, the engagement of professional investment managers with a significant and successful track record, monthly reviews of investment performance, and regular meetings with investment managers and the bank.

In order to ensure best practice and continuous improvement, the trustees review the

==> picture [305 x 36] intentionally omitted <==

Signed on behalf of the trustees:

Trustee James Carleton Approved by the trustees on:

The February Foundation 17

Year to 28 February 2025

Opinion

the year ended 28 February 2025 which comprise the statement of financial activities, the balance sheet, statement of cash flows, 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 applicable in the UK and Republic of (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 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 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 charitable company months from when the accounts 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.

The February Foundation 18

Year to 28 February 2025

Other information

The other information comprises the information included in the annual report other than the The trustees are responsible for the other information. 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 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:

The February Foundation 19

Year to 28 February 2025

Responsibilities of trustees

As explained more fully in the responsibilities statement, the trustees 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 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.

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 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:

The February Foundation 20

Year to 28 February 2025

(continued)

Assessing the extent of compliance with relevant laws and regulations by reviewing correspondence with regulators and legal advisors.

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 for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This

Use of our report

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.

Katharine Patel (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

24 October 2025

The February Foundation 21

Statement of financial activities Year ended 28 February 2025

(Including income and expenditure account)

Notes Unrestricted
funds
£		 Unrestricted
funds
£		 Expendable
endowment
£		 Total
2025
£		 Unrestricted
funds
£		 Expendable
endowment
£		 Total
2024
£
Income from:
Donations and legacies
.Donations
.Gift of Shares
Investments
1
Total income
Expenditure on:
Investment management costs
Charitable activities
2
Total expenditure
Net income before (losses) gains
on investments
Net (losses) gains on investments
6
. Realised (losses) gains on sale
. Unrealised: changes in market value
Net expenditure and net movement
in funds for the year
Fund balances brought forward at
1 March 2024
10
Fund balances carried forward at
28 February 2025
10		 4,494,047 4,459,846
25,389,000		 4,459,846
25,389,000
4,494,047		 5,589,528 2,893,032 2,893,032
5,589,528
4,494,047 29,848,846 34,342,893 5,589,528 2,893,032 8,482,560
3,746,096 152,464
26,936,000		 152,464
30,682,096		 4,298,904 126,492 126,492
4,298,904
3,746,096 27,088,464 30,834,560 4,298,904 126,492 4,425,396
747,951 2,760,382 3,508,333 1,290,624 2,766,540 4,057,164
(67,679)
(8,217,172)		 (67,679)
(8,217,172)		 623,219
(11,782,851)		 623,219
(11,782,851)
(8,284,851) (8,284,851) (11,159,632) (11,159,632)
747,951
18,033,824		 (5,524,469)
50,798,322		 (4,776,518)
68,832,146		 1,290,624
16,743,200		 (8,393,092)
59,191,414		 (7,102,468)
75,934,614
18,781,775 45,273,853 64,055,628 18,033,824 50,798,322 68,832,146

All income and expenditure is derived from continuing activities. The statement of financial activities includes all gains and losses recognised in the year.

The February Foundation 22

Balance sheet as at 28 February 2025

Notes 2025
£		 2025
£		 2024
£		 2024
£
Fixed assets
Investments
6
Current assets
Debtors
7
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due
within one year
8
Net current assets
Total assets less current
liabilities
Non-current liabilities
Creditors: amounts falling due
after one year
8
Net assets
Funds and reserves
10
Capital funds
Expendable endowment
Income funds
Unrestricted funds		 1,161,462
4,883,607		 70,367,503
3,456,825		 1,188,466
2,803,058		 79,373,785
1,440,281
6,045,069
(2,588,244)		 3,991,524
(2,551,263)
73,824,328
(9,768,700)		 80,814,046
(11,981,900)
64,055,628 68,832,146
45,273,853
18,781,775
50,798,322
18,033,824
64,055,628 68,832,146

Approved by the trustees and signed on their behalf by:

Trustee James Carleton

Approved on:

The February Foundation

Company Registration Number: 05718135 (England and Wales)

The February Foundation 23

Statement of cash flows Year ended 28 February 2025

Notes 2025
£		 2024
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from the disposal of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 March 2024
B
Cash and cash equivalents at 28 February 2025
B		 (1,587,928) (3,858,963)
4,494,047
6,626,228
(8,237,333)		 4,495,476
6,878,727
(10,199,836)
2,882,942 1,174,367
1,295,014
4,153,998		 (2,684,596)
6,838,594
5,449,012 4,153,998

Notes to the statement of cash flows

A Reconciliation of net expenditure to net cash used in operating activities

==> picture [404 x 128] intentionally omitted <==

----- Start of picture text -----
2025 2024
£ £
Net expenditure (as per the statement of financial activities) (4,776,518) (7,102,468)
Adjustments for:
Loss on investments 8,284,851 11,159,632
Dividends and interest from investments (4,494,047) (5,589,528)
Gift of shares: net movements on shares received and donated 1,547,000
Decrease in debtors 27,005
Decrease in creditors (2,176,219) (2,326,599)
Net cash used in operating activities (1,587,928) (3,858,963)
----- End of picture text -----

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2025
£
4,883,607
565,405
5,449,012		 2024
£
Cash at bank and in hand
Cash held by investment managers (note 6)
Total cash and cash equivalents		 2,803,058
1,350,940
4,153,998

The February Foundation 24

Principal accounting policies Year ended 28 February 2025

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 28 February 2025.

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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) and the Charities Act 2011. The financial statements have been prepared under the historical cost convention except for the modification to a fair value basis as specified in the accounting policies below.

The Foundation constitutes a public benefit entity as defined by FRS 102.

All financial information is presented in British Pounds Sterling (£), the Foundation functional currency, and has been rounded to the nearest pound (£).

Critical accounting estimates and areas of judgement

The preparation of financial statements requires the use of certain critical accounting estimates and judgements. It also requires the trustees to exercise judgement in the process of applying accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including an expectation of future events that are believed to be reasonable under the circumstances. Although these or actions, actual results may differ from those estimates. Areas requiring the use of estimates and critical judgements that may impact on the Foundation :

Assessment of going concern

The trustees of the Foundation have not identified any material uncertainties relating to events or conditions that may cast significant doubt on the ability of the Foundation to continue as a going concern.

The February Foundation 25

Principal accounting policies Year ended 28 February 2025

Assessment of going concern (continued)

The trustees consider that through the investment portfolio together with the returns on investments, provide sufficient funding to meet the anticipated grant commitments for the ensuing year and its long-term grant commitments.

Income

Income from donations is recognised in the period in which the Foundation becomes entitled to the donation and where receipt is probable and its amount can be measured reliably.

Investment income comprises dividends and interest on the Foundation investments. Dividends are recognised once the dividend has been declared and the Foundation has received notification that the dividend is due.

Interest on the Foundation when receipt is probable and the amount can be measured reliably using the effective interest method.

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. It includes VAT which cannot be recovered.

Expenditure on charitable activities comprises grants payable and related support and governance costs.

Grants payable

Grants payable are recognised when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions.

Long term grants payable are initially recognised at present value with the discount and subsequent unwinding of the discount being credited or charged to the statement of financial activities as grant expenditure within charitable activities.

Grants are not recognised as payable but noted as financial commitments in the notes to the financial statements under the following circumstances:

The February Foundation 26

Principal accounting policies Year ended 28 February 2025

Expenditure (continued)

Support and governance costs

Support costs are those functions that assist the work of the Foundation but do not directly undertake charitable activities. Support costs include administration, personnel and governance costs. Governance costs include audit costs and legal costs relating to the Foundation

Investment management fees

Investment management fees incurred in managing the investments of the endowment are charged against the endowment fund.

Fixed asset investments

The Foundation measured at cost and subsequently at market value. Investment gains and losses, whether realised or unrealised, are recognised in the statement of financial activities in the period in which they arise.

Financial instruments

The Foundation only holds basic financial instruments as defined in FRS102. Financial assets and liabilities and their recognition and measurement bases are as follows:

Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

At the end of each reporting period financial assets are assessed for objective evidence of impairment. If such evidence is identified, an impairment loss is recognised in the statement of financial activities. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an carrying amount and a best estimate of the recoverable amount.

A financial asset is derecognised only when the contractual rights to the cash flows from the financial asset expire or are settled in cash, or when substantially all the risk and rewards of ownership of the financial asset have been transferred to another party.

A financial liability is derecognised when the contract that gives rise to it is settled, sold cancelled or expired.

Debtors

Accrued income is initially recognised at the settlement amount and subsequently at amortised cost or their recoverable amount.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short-term deposits.

The February Foundation 27

Principal accounting policies Year ended 28 February 2025

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be measured or estimated reliably.

Creditors and provisions are initially recognised at fair value, being the amount the Foundation anticipates it will pay to settle the debt, and subsequently at amortised cost.

Non-current creditors are measured at their present value at the balance sheet date where the time value of money is material. The initial recognition of the discount and its subsequent unwinding are credited or charged in the statement of financial activities to the appropriate income or expenditure heading. The discount rate applied is based on the opportunity cost of income from investments foregone.

Pension costs

the statement of financial activities in the year in which they are payable to the scheme.

Fund accounting

The expendable endowment funds represent the capital funds of the Foundation which can be drawn upon if required.

The unrestricted funds represent funds available for the general charitable purposes of the Foundation at the discretion of the trustees.

The February Foundation 28

Notes to the financial statements 28 February 2025

1 Investment income 2025
£		 2024
£
Dividends on investments
Interest on cash holdings		 4,429,073
64,974
4,494,047		 5,520,075
69,453
5,589,528

2 Expenditure on charitable activities

==> picture [405 x 164] intentionally omitted <==

----- Start of picture text -----
2025 2024
£ £
Grants to institutions by category :
. Education 2,621,231 3,229,438
. Healthcare and patient support 357,167 338,507
. End-of-life care 397,972 472,231
. Other categories 218,708 114,783
Total grants payable 3,595,078 4,154,959
Investments donated to a UK registered charity 26,936,000
30,531,078
Grant and Foundation administrative expenses including governance
costs (note 3) 151,018 143,945
30,682,096 4,298,904
----- End of picture text -----

The trustees awarded grants to 157 charitable institutions in the year ended 28 February 2025 (2024 - 178). The trustees consider that the disclosure of specific material grants to institutions could seriously prejudice the furtherance of the purposes of the Foundation.

The trustees donated investments with market value of £26,936,000 to a UK charity with general charitable purposes in the year ended 28 February 2025 (2024 - £nil).

A reconciliation of the grants payable and commitments shown in these financial statements is as follows:

2025
£		 2024
£
Grants payable at 1 March 2024 (note 8)
Grants made during the year
Grants paid in the year
Grants payable at 28 February 2025 (note 8)		 14,492,900
3,595,078
(5,774,278)
12,313,700		 16,825,300
4,154,959
(6,487,359)
14,492,900
The above grants commitments fall due as follows: 2025
£		 2024
£
Within one year (note 8)
After one year (note 8)		 2,545,000
9,768,700
12,313,700		 2,511,000
11,981,900
14,492,900

The February Foundation 29

Notes to the financial statements 28 February 2025

3 Governance costs

Governance costs
2025
£		 2024
£
Fees payable to the auditor:
Statutory audit
Taxation services
Payroll services		 18,000
3,048
3,168
24,216		 16,105
2,820
4,656
23,581

4 Staff costs including key management personnel and trustees remuneration

==> picture [404 x 103] intentionally omitted <==

----- Start of picture text -----
2025 2024
£ £
Staff costs comprise:
Wages and salaries 95,000 93,667
Social security costs 6,855 6,671
Pension costs 7,125 7,025
Medical insurance 1,687 1,687
110,667 109,049
----- End of picture text -----

The average monthly number of persons (including key management personnel) employed by the charitable company during the year on a full-time equivalent basis was one (2024 - one).

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Foundation and are represented by the trustees and the Chief Executive. The remuneration paid to the Chief Executive is as set out above.

The trustees received no remuneration (2024 - none) and were not reimbursed for any expenses (2024 - none).

5 Taxation

The February Foundation 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.

The February Foundation 30

Notes to the financial statements 28 February 2025

6 Fixed asset investments

At the year-end, fixed asset investments comprised the following investments and cash held for investment:

==> picture [414 x 303] intentionally omitted <==

----- Start of picture text -----
Total Total
2025 2024
£ £
Market value of investments at 1 March 2024 78,022,845 85,861,368
Gift of shares received 25,389,000
Additions 8,237,333 10,199,836
Disposals (proceeds £6,626,228; realised loss £67,680) (6,693,908) (6,255,508)
Disposals: Shares donated to a UK charity at market value (Note 2) (26,939,000)
Unrealised losses in the year (8,217,172) (11,782,851)
Market value of investments at 28 February 2025 69,802,098 78,022,845
Cash held for reinvestment 565,405 1,350,940
70,367,503 79,373,785
Historic cost of investments at 28 February 2025 34,627,287 34,292,046
The market value of investments at 28 February 2025 comprises:
UK listed 33,153,775 44,929,689
UK fixed interest stock 13,525,810 12,467,384
Overseas listed 19,453,597 17,279,990
Overseas fixed interest 724,675 715,307
Alternatives 2,122,948 1,621,415
Property 821,293 1,018,060
Cash held for reinvestment 565,405 1,350,940
70,367,503 79,373,785
----- End of picture text -----

7 Debtors

Debtors
2025
£		 2024
£
Due within one year
Accrued income		 1,161,462
1,161,462		 1,188,466
1,188,466

8. Creditors

Creditors
2025
£		 2024
£
Due within one year
Accrued expenses
Grants payable
Due after more than one year
Grants payable
Total creditors		 43,244
2,545,000		 40,263
2,511,000
2,588,244 2,551,263
9,768,700 11,981,900
12,356,944 14,533,163

Grants payable after one year have been recognised at net present value to reflect the time value of money. The value of grants payable, before discounting, at 28 February 2025 was £12,500,000 (2024 - £15,000,000).

The February Foundation 31

Notes to the financial statements 28 February 2025

9. Financial instruments and financial risk management

The Foundation holds financial instrument measured at amortised cost or fair value as follows:

2025
£		 2024
£
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial liabilities measured at fair value		 1,161,462
2,588,244
9,768,700		 1,188,466
2,551,263
11,981,900

The Foundation has exposure to one main area of risk, liquidity risk.

Liquidity risk

The objective of the Foundation in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The Foundation seeks to meet its financial obligations through cash flows from its investment portfolio. In the event that the cash flows would not cover all the financial liabilities, the charity has sufficient cash reserves available to meet any shortfall.

10. Analysis of net assets between funds

==> picture [406 x 290] intentionally omitted <==

----- Start of picture text -----
Expendable Unrestricted Total
endowment funds 2025
£ £ £
Fund balances at 28 February 2025
are represented by:
Investments 46,798,087 23,569,416 70,367,503
Current assets 6,045,069 6,045,069
Creditors: amounts falling due within one year (2,588,244) (2,588,244)
Creditors: amounts falling due after one year (9,768,700) (9,768,700)
Total net assets 46,798,087 17,257,541 64,055,628
Expendable Unrestricted Total
endowment funds 2024
£ £ £
Fund balances at 28 February 2024
are represented by:
Investments 50,798,322 28,575,463 79,373,785
Current assets 3,991,524 3,991,524
Creditors: amounts falling due within one year (2,551,263) (2,551,263)
Creditors: amounts falling due after one year (11,981,900) (11,981,900)
Total net assets 50,798,322 18,033,824 68,832,146
----- End of picture text -----

The February Foundation 32

Notes to the financial statements 28 February 2025

11. Grant funding commitments

At 28 February 2025, the trustees had approved the following grants which will not be paid to the recipient unless and until either matched funding is obtained by the recipient before the agreement expires or conditions attached to the agreement are fulfilled by the recipient.

These amounts have not been recognised as a liability in the balance sheet.

Education
£		 Healthcare
and patient
support
£		 End-of-
Life
Care
£		 Total
£
Maximum commitment at
1 March 2024
Paid in year
New commitments
Maximum commitment at
28 February 2025		 6,798,844
(2,321,419)
2,442,618
6,920,043		 102,000
(21,000)
81,000		 20,000
(10,000)
10,000		 6,920,844
(2,352,419)
2,442,618
7,011,043
Education
£		 Healthcare
and patient
support
£		 End-of-
Life
Care
£		 Total
£
Maximum commitment at
1 March 2023
Paid in year
New/(lapsed) commitments
Maximum commitment at
28 February 2024		 9,997,724
(3,030,837)
(168,043)
6,798,844		 54,000
48,000
102,000		 85,000
(65,000)
20,000		 10,136,724
(3,095,837)
(150,043)
6,920,844

Matched and conditional funding commitments are available under agreements which expire between 2025/26 and 2029/30.

12. Related parties

The Foundation did not enter into any transactions with related parties during the financial year (2024 none).

The February Foundation 33