Charity registration number 1122865 (England and Wales)
THE DONALD GORDON SECOND FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
THE DONALD GORDON SECOND FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees H I Appelbaum W Appelbaum G Gordon A Sternberg M Abel (Appointed 20 August 2024) Dr S Tager (Appointed 20 August 2024) Dr N Appelbaum (Appointed 20 August 2024) Terra Nova Trustees (Pty) Limited (Appointed 20 August 2024) Charity number 1122865 Registered office c/o Stonehage Fleming 6 St James's Square London United Kingdom SW1Y 4JU Auditor Azets Audit Services Ashcombe Court Woolsack Way Godalming United Kingdom GU7 1LQ
THE DONALD GORDON SECOND FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent auditor's report | 4 - 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Statement of cash flows | 9 |
| Notes to the financial statements | 10 - 16 |
THE DONALD GORDON SECOND FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2025
The Trustees present their report and the audited financial statements of the Foundation for the year ended 28 February 2025. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the Foundation.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Foundation's governing document, the Trust Deed dated 14 August 2007, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The Donald Gordon Second Foundation is a charitable trust with its main objects being the advancement and promotion of scientific, medical and technological research, education, relief of poverty, promotion and support of the arts and other charitable causes. The Trustees believe that the Foundation can make a meaningful impact on society through strategically allocating the resources of the Foundation over the medium to long term and the Foundation is committed to making a positive and lasting impact on society by supporting various charitable and philanthropic initiatives and projects for the public benefit.
In accordance with the wishes of the Founder, the Late Sir Donald Gordon, much of the charitable activity is undertaken through the Foundation’s registered Public Benefit Organisation (PBO) in South Africa, where the Trustees have been focusing their initial efforts in relation to current and future public benefit activities. More recently the Foundation has also benefitted registered charities in the United Kingdom.
The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have regard to the Charity Commission's general guidance on public benefit.
Achievements and performance
The Foundation is a beneficiary of the Estate of the Late Sir Donald Gordon. During the financial year under review the Foundation received further funds of £488,196 representing the final transfer of funds from the Estate. The principal activity of the Foundation during the financial year has been charitable deployment by the Foundation, with allocations to beneficiaries totaling £1.61m (2024: £1.04m) during the financial year. The impact of the Foundation’s charitable giving will increasingly be felt in future years, with some of these donations being part of longer-term programmes.
The Trustees continue to monitor the investments undertaken by the Foundation as well as the consideration and implementation of appropriate governance structures and policies, including the Foundations’ Distribution, Reserves, Investment and Board Composition policies and the handling of potential conflicts of interests.
In outline terms, the Foundation expects to allocate 50 - 75% of its current net income for charitable initiatives and projects annually. The allocation percentage can be adjusted by the Trustees depending on financial performance and available resources. The Foundation expects to maintain a reserve fund to safeguard against unexpected financial challenges and provide funding for any emergency charitable giving. The Trustees are also able to approve specific capital distributions at their discretion to support agreed charitable initiatives and projects. The implementation of the Distribution and Reserves policies is reviewed annually.
Financial review
The Foundation has unrestricted reserves at 28 February 2025 of £99.91m (2024: £94.37m). For the year ended 28 February 2025, the Foundation generated income from investments totalling £2.74m (2024: £3.53m), made donations to charitable entities of £1.61m (2024: £1.04m) and generated net income for the year of £5.52m (2024: £2.82m) after taking account of costs and investment gains.
The Foundation has engaged suitable and experienced advisers, bankers and custodians to safeguard and manage the Foundation’s assets, which are managed and deployed in line with the Distribution, Reserves and Investment policies agreed by the Trustees. As at the financial year end, the assets were fully deployed by investment managers within a diversified global portfolio across a variety of asset classes.
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THE DONALD GORDON SECOND FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
The Distribution and Reserves policies agreed by the Trustees provide the framework for allocating funds to ensure effectiveness and accountability in the Foundation’s charitable endeavours. The policies also determine the level of reserves the Foundation intends to maintain to balance the needs of current and future beneficiaries and to adapt and respond to evolving needs, while also ensuring that the Foundation’s activities fall within its charitable objects and comply with all required rules and regulations in the relevant jurisdictions.
The Trustees consider that the principal risks and uncertainties currently facing the Foundation relate to the achievement of sufficient investment returns to generate sufficient resources for charitable beneficiaries, without putting the capital of the Foundation at undue risk either from investment losses or from the impact of ongoing inflation over the medium to long term. To this end the Trustees have consulted with investment experts who have considered the various return and risk parameters identified by the Trustees and who have constructed an appropriately diversified long-term investment portfolio for the Foundation. The Trustees carefully monitor and review the portfolio on a regular basis.
The Trustees are also concerned with the custodianship of the Foundation’s assets and regularly monitor this, taking into account the strength and stability of counterparties and appropriate diversification.
Plans for future periods
As highlighted previously, the Foundation has benefited from substantial funding by the Estate of the Late Sir Donald Gordon and its activities will continue to expand in future years to implement and achieve its objectives and safeguard the assets for future public benefit. To this end the Foundation has appointed additional trustees (noted below) to ensure that the Foundation has the requisite skills, abilities and independent input to evaluate beneficiaries and projects and to be able to fulfil its objectives.
The Foundation will consider distributions to charitable activities that fall within one or more of the charitable objects (as defined in the Trust Deed) and that are exclusively charitable in accordance with the Charities Act. All projects are carefully evaluated based on their potential for positive impact, sustainability, and efficiency. A thorough evaluation process is conducted for each project to assess its viability, effectiveness and potential risks. The Foundation maintains appropriate levels of monitoring and accountability, tracking the progress and outcomes of funded activities.
The Foundation may also collaborate with other charitable organisations to maximize the impact of its activities and encourage collective efforts towards common goals.
Structure, governance and management
The Foundation is a charitable trust and was registered with the Charity Commission of England and Wales on 19 February 2008 (charity registration number 1122865). It is governed by a Trust Deed dated 14 August 2007. The Foundation is also registered as a PBO in South Africa.
The Trustees who served during the year and up to the date of signature of the financial statements were:
H I Appelbaum W Appelbaum G Gordon D Reynolds (Resigned 30 April 2024) J Rossouw (Resigned 20 August 2024) A Sternberg M Abel (Appointed 20 August 2024) Dr S Tager (Appointed 20 August 2024) Dr N Appelbaum (Appointed 20 August 2024) Terra Nova Trustees (Pty) Limited (Appointed 20 August 2024)
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THE DONALD GORDON SECOND FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
The Foundation is required to have at least 3 trustees and a maximum of 10 trustees. Trustees are reappointed annually and the power to appoint new trustees is vested in the existing Trustees. The existing Trustees are responsible for the induction of new Trustees. The Trustees manage and administer the Foundation in line with its objectives and including ongoing consideration of beneficiaries, deployment of assets and implementation of key policies and governance mechanisms. If the Trustees identify an area where the existing Trustees have limited experience or knowledge, they will consider appointing a new trustee to fill that knowledge gap.
The Trustees have considered their approach to dealing with potential conflicts of interest, to be able to respond appropriately where such conflicts are identified and to ensure that in practice the requisite number of unconflicted trustees are able to act for the Foundation. Further details of this are included in the notes to the annual financial statements.
Statement of Trustees' responsibilities
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales 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 incoming resources and application of resources of the Foundation for that year.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.
Disclosure of information to auditor Disclosureof information to auditor
Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the Each of the Trustees has confinmedthat there is moa information of whichthey are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to audet, but of which the auditor is umeware. They have further confined that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. identity such relevant information amd to establish that the auditor is avvare of such information.
The Trustees' report was approved by the Board of Trustees. The Trustees’ report was approved by the Board of Trustees.
..............................
H I Appelbaum H | Appelbaum Trustee Trustee
Date: .............................................
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THE DONALD GORDON SECOND FOUNDATION
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF THE DONALD GORDON SECOND FOUNDATION
Opinion
We have audited the financial statements of The Donald Gordon Second Foundation (the ‘Foundation’) for the year ended 28 February 2025 which comprise the statement of financial activities, the balance sheet, the 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 Financial Reporting Standard 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:
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give a true and fair view of the state of the charity’s affairs as at 28 February 2025 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the Charities Act 2011.
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 Foundation 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 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.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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THE DONALD GORDON SECOND FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE DONALD GORDON SECOND FOUNDATION
Responsibilities of Trustees
As explained more fully in the statement of Trustees' responsibilities, 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 Foundation’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 cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
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Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
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Reviewing minutes of meetings of those charged with governance;
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Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
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Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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THE DONALD GORDON SECOND FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE DONALD GORDON SECOND FOUNDATION
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Debra Saunders Bsc FCA (Senior Statutory Auditor) For and on behalf of Azets Audit Services, Statutory Auditor Chartered Accountants
Ashcombe Court Woolsack Way Godalming GU7 1LQ 19 December 2025 Date: .........................
Azets Audit Services is eligible for appointment as auditor of the Foundation by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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THE DONALD GORDON SECOND FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2025
| **Unrestricted ** | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2025 | 2024 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 488,196 | - |
| Investments | 4 | 2,738,860 | 3,526,352 |
| Total income | 3,227,056 | 3,526,352 | |
| Expenditure on: | |||
| Charitable activities | 5 | 2,097,069 | 1,225,728 |
| Net gains on investments | 10 | 4,388,306 | 514,585 |
| Net income for the year | 5,518,293 | 2,815,209 | |
| Other recognised gains and losses | |||
| Other gains or losses | 12 | 20,167 | (230,343) |
| Net movement in funds | 5,538,460 | 2,584,866 | |
| Fund balances at 1 March 2024 | 94,367,026 | 91,782,160 | |
| Fund balances at 28 February 2025 | 99,905,486 | 94,367,026 |
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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THE DONALD GORDON SECOND FOUNDATION
BALANCE SHEET
AS AT 28 FEBRUARY 2025
| 2025 | 2025 | 2024 | ||||||
|---|---|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | ||||
| Fixed assets | ||||||||
| Investments | 13 | 99,802,952 | 94,304,815 | |||||
| Current assets | ||||||||
| Cash at bank and in hand | 138,531 | 98,105 | ||||||
| Creditors: amounts falling due within | ||||||||
| one year | 14 | (35,997) | (35,894) | |||||
| Net current assets | 102,534 | 62,211 | ||||||
| Total assets less current liabilities | 99,905,486 | 94,367,026 | ||||||
| Income funds | ||||||||
| Unrestricted funds | ||||||||
| Designated funds | 15 | 977,933 | 1,091,775 | |||||
| General unrestricted funds | 98,927,453 | 93,275,151 | ||||||
| Trust capital | 100 | 100 | ||||||
| 99,905,486 | 94,367,026 | |||||||
| 99,905,486 | 94,367,026 | |||||||
| 1? | December | 2025 | ||||||
| The financial statements were approved by the Trustees on ......................... ThefinancialstatementswereapprovedbytheTrustees |
The financial statements were approved by the Trustees on ......................... on |
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H H I Appelbaum | Appelbaum Trustee Trustee
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THE DONALD GORDON SECOND FOUNDATION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2025
| Notes Cash flows from operating activities Cash (absorbed by)/generated from operations 17 Investing activities Purchase of investments Proceeds from disposal of investments Investment income received Net cash generated from/(used in) investing activities Net cash generated from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
As restated 2025 2024 £ £ £ £ (1,665,619) 66,312,892 - (90,382,685) 1,699,758 - 6,287 118,808 1,706,045 (90,263,877) - - 40,426 (23,950,985) 98,105 24,049,090 138,531 98,105 |
|---|---|
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THE DONALD GORDON SECOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025
1 Accounting policies
Charity information
The Donald Gordon Second Foundation is an unincorporated charitable foundation governed by a deed dated 14 August 2007 and registered in England & Wales on 19 February 2008.
The registered office of the charity is c/o Stonehage Fleming, 6 St James's Square, London, SW1Y 4JU.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Foundation's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The Foundation is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Income
Income is recognised when the Foundation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Foundation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the Foundation has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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THE DONALD GORDON SECOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.
1.6 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Foundation’s contractual obligations expire or are discharged or cancelled.
1.8 Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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THE DONALD GORDON SECOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
2 Critical accounting estimates and judgements
In the application of the Foundation’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There were no estimates or assumptions which are deemed to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
3 Income from donations and legacies
| Unrestricted | Total | |
|---|---|---|
| funds | ||
| 2025 | 2024 | |
| £ | £ | |
| Donations and gifts | 488,196 | - |
| Other income | ||
| **Unrestricted ** | Unrestricted | |
| funds | funds | |
| 2025 | 2024 | |
| £ | £ | |
| Dividend income from listed and other investments | 1,564,626 | 3,045,571 |
| Interest receivable from listed and other investments | 1,174,234 | 480,781 |
| 2,738,860 | 3,526,352 | |
| Expenditure on charitable activities | ||
| Charitable | Charitable | |
| activities | activities | |
| 2025 | 2024 | |
| £ | £ | |
| Donations paid | 1,608,041 | 1,042,890 |
| Share of governance costs (see note 6) | 489,028 | 182,838 |
| 2,097,069 | 1,225,728 |
4 Other income
5 Expenditure on charitable activities
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THE DONALD GORDON SECOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
| 6 Support costs Support costs Governance costs 2025 £ £ £ Auditors remuneration - 7,560 7,560 Legal and professional - 113,791 113,791 Accountancy - 5,508 5,508 Bank charges - 2,033 2,033 Investment management - 360,136 360,136 - 489,028 489,028 Analysed between Charitable activities - 489,028 489,028 7 Net movement in funds The net movement in funds is stated after charging/(crediting): Fees payable for the audit of the charity's financial statements |
Support costs Governance costs £ £ - 7,200 - 73,987 - 7,428 - 1,112 - 93,111 - 182,838 - 182,838 2025 £ 7,560 |
2024 £ 7,200 73,987 7,428 1,112 93,111 |
|---|---|---|
| 182,838 | ||
| 182,838 | ||
| 2024 £ 7,200 |
8 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Foundation during the year.
There were no trustees' expenses paid for the year ended 28 February 2025 nor for the year ended 29 February 2024.
The related party transactions in respect of Trustees are set out in Note 16.
9 Employees
The average monthly number of employees during the year was:
| Total There were no employees whose annual remuneration was more than £60,000. |
2025 Number - |
2024 Number - |
|---|---|---|
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THE DONALD GORDON SECOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
10 Net gains on investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2025 | 2024 | |
| £ | £ | |
| Realised and unrealised gain on investments | 4,388,306 | 514,585 |
11 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
12 Other gains or losses
| Other gains or losses | ||
|---|---|---|
| **Unrestricted ** | Unrestricted | |
| funds | funds | |
| 2025 | 2024 | |
| £ | £ | |
| Foreign exchange gains/(losses) | 20,167 | (230,343) |
13 Fixed asset investments
| Listed | Cash in | Other | Total | |
|---|---|---|---|---|
| investments | portfolio | investments | ||
| £ | £ | £ | £ | |
| Cost or valuation | ||||
| At 1 March 2024 | 12,054,125 | 45,526,911 | 36,723,779 | 94,304,815 |
| Additions | 25,510,630 | 14,860,592 | 31,857,344 | 72,228,566 |
| Valuation changes | 3,253,892 | (100,957) | 609,636 | 3,762,571 |
| Accrued income | - | - | 254,142 | 254,142 |
| Realised gain on disposal | 268,496 | - | 103,097 | 371,593 |
| Disposals | (3,071,194) | (59,503,290) | (8,544,250) | (71,118,734) |
| At 28 February 2025 | 38,015,949 | 783,256 | 61,003,748 | 99,802,953 |
| Carrying amount | ||||
| At 28 February 2025 | 38,015,949 | 783,256 | 61,003,748 | 99,802,953 |
| At 29 February 2024 | 12,054,125 | 45,526,911 | 36,723,779 | 94,304,815 |
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THE DONALD GORDON SECOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
14 Creditors: amounts falling due within one year
| 2025 | 2024 | |
|---|---|---|
| £ | £ | |
| Accruals | 35,997 | 35,894 |
15 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| 1 Specialist and sub specialist medical training |
Balance at March 2024 £ 1,091,775 1,091,775 |
Transfers Balance at 28 February 2025 £ £ (113,842) 977,933 (113,842) 977,933 |
Transfers Balance at 28 February 2025 £ £ (113,842) 977,933 (113,842) 977,933 |
|---|---|---|---|
| 977,933 |
16 Related party transactions
The Foundation incurred £21,882 (2024: £24,794) for administration services provided by Stonehage Fleming Financial Services (Pty) Ltd. The nominee for a Trustee is an employee of Stonehage Fleming Financial Services (Pty) Ltd. At the year end accruals included £nil (2024: £24,794) owed to Stonehage Fleming Financial Services (Pty) Ltd.
Additionally, during the year the Foundation incurred costs of £73,188 (2024: £23,523) for adminstrative services provided by Exmoor Fiduciary Limited, a company of which trustee A Sternberg is a director.
During the year the Foundation made a grant of £160,240 to the Wits Donald Gordon Medical Centre, a charity of which one of the trustees is the Chief Executive.
Where a trustee has a potential conflict of interest, the relevant trustee(s) removes themselves from the decision-making process.
- 15 -
THE DONALD GORDON SECOND FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2025
| 17 Cash (absorbed by)/generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Foreign exchange differences Fair value gains and losses on investments Legacy income received by investment portfolio fund Management fees and bank charges paid by investment portfolio fund Donation paid by investment portfolio fund Movements in working capital: (Increase)/decrease in debtors Increase in creditors Cash (absorbed by)/generated from operations |
2025 £ 5,518,293 (2,738,860) 20,167 (4,388,306) (488,196) 361,180 50,000 - 103 (1,665,619) |
2024 £ 2,815,209 (3,526,352) (230,343) (514,585) - - - 67,743,870 25,094 66,312,892 |
|---|---|---|
Restatement
The cashflow statement comparative has been restated as it included investment income which wasn't received into the cash at bank but directly into the investment portfolio. This has resulted in the investing activities in the cashflow statement being restated as following: investment income has been restated to £118,808 from £3,526,352 and purchases of investments has been restated to £(90,382,685) from £(93,790,229). The impact of the restatement on cash and cash equivalents is £nil.
- 16 -