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2020-12-31-accounts

1 Annual Accounts 2020

Trustees’ Report and Accounts

For the year ended

31 December 2020.

Solicitors Benevolent Association Limited A charitable company limited by guarantee

registered in England & Wales number 6601907

Registered charity number 1124512

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Contents

03 Chairman’s Report.

05 The Solicitors’ Charity Vision Statement and Values.

07 How we helped in 2020 - in figures.

23 Statements of Trustees Responsibilities.

25 Auditors Report to the Members.

29 Supporting The Solicitors’ Charity.

30 Statement of Financial Activities.

31 Statement of Cash Flows.

32 Balance Sheet.

33 Notes to the Accounts.

42 Who’s who at The Solicitors’ Charity.

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Chairman’s Report

When I wrote my Report in 2020 it was impossibe to tell what the the impact of the Covid-19 pandemic would be. I did, however, note that The Solicitors’ Charity was well placed to weather challenging times since we had a solid financial base and a dedicated team. In fact, we have emerged strongly from all that 2020 dealt us, having both helped many more solicitors in need or crisis than in 2019 and having adapted our support to meet what the profession has told us it needs now.

Through our specially established Hardship Fund and our ongoing core programme we directly supported over 200% more new solicitors than in the previous year. Overall, 399 primary and secondary beneficiaries were directly helped by our financial support.

Support provided through partners also increased. Thanks to our funding, over 400 solicitors in England & Wales receiving emotional support and more than 40 referrals were made for career transitioning or welfare benefits support.

We awarded direct grants and made payments for services to beneficiaries of over £1.25 million during the year.

The increased level of activity and the changing needs in the profession, within the context of the pandemic, meant that a great deal of our focus was on maintaining delivery of quality core services, whilst the whole team worked remotely. I am delighted to say that services continued without interruption throughout the year.

Even within this scenario we took the opportunity to learn more about the emerging needs of the profession though our ‘Back to Work’ research. Learnings from this exercise have strengthened our thinking around how we approach supporting the wellbeing of members the profession. This has lead us to widen access to our support and to increase the tools at our disposal to ensure that as many of those eligible for support who come to us in need or crisis can return to selfsustainability. We will, though, continue to support those eligble solicitors and dependents who need longer term and indeed, life-long support.

We started 2020 in a strong financial position and this served us well in a year when our investments made only modest gains and income from donations of residual client balances fell significantly. Prudent financial management over many years meant that we could cope well with these challenges as well as additional expenditure driven by the impact of the pandemic. Good stewardship is fundamental to what we do.

Alongside our focus on core activity, we also continued to strengthen our support services and governance. We carried out a re-tendering process for our audit services and began the process to recruit a new Chair Elect and trustees – a process that has been completed with very pleasing results in 2021. We have continued to strengthen our IT systems, making progress with the further development and roll-out of a new CRM system, further strengthening our cyber-security, and engaging external expertise to help us continue to ensure that our data protection approach meets all requirements.

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We have also worked hard at developing our communications, including delivering a new website which tells our story better, allowing those seeking help more easily to understand what we do and how we do it. We also took the opportunity to simplify our operating name and are now known simply as The Solicitors’ Charity, emphasising those who we are here to support today as we have done since 1858.

I come to the end of my time as Chairman of the Charity in 2021. I am delighted that I will be able to hand over the reins to my successor, Virginia Cannon, who brings to the role a wealth of experience in charitable governance and in the profession. She will lead a Board made up of both experienced solicitor trustees and new recruits with expertise in investment and finance, mental health and welfare benefits. These are all skills that we had identified as needed to strengthen our governance. I am delighted to step down as Chairman knowing that we have made major steps forward in this area.

Finally, I would like to thank all my fellow trustees for the time and expertise that they volunteer to help members of the profession in need. And of course, none of this would be possible without the great dedication, flexibility and effort shown by the staff team as they have switched, seemingly seamlessly, to working remotely. I am immensely grateful to them all.

Your charity has been supporting you and the profession for 163 years. The good stewardship that we continue to demonstrate has enabled us to continue our service and to expand it. I am reminded of a saying: ‘Do not have your concert first and tune your instruments after’. It is my great pleasure to have chaired The Solicitors’ Charity. I hope I leave it more in tune with the profession than when I started. We are certainly a great instrument and I encourage you to support us so that we can in turn support you.

Matthew Robbins, Chairman 30 June 2021

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Our vision

All solicitors are supported in times of need or crisis.

Our mission

To support solicitors and their dependents with financial, practical and emotional aid in times of need or crisis.

To collaborate with our volunteers, partners and charities to ensure our beneficiaries can access the right support.

To engage with the profession, sharing our experiences to build awareness of the issues facing solicitors and gain funding for our mission.

Our core values

Non-judgmental

Trustworthy

Engaged

Collaborative

Understanding Professional

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How we live our core values

Non-judgmental

Trustworthy

Engaged

Collaborative

Understanding

Professional

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7 Annu31 AccoLJnts 2020 How have we helped? £1,271,566 of grants and payments in support of beneficiaries 35% increase from 2019 Increase In new so Icitors hel edb us in 2020 and 2019 99 2020 We Collaborate 414 21 21 tota ene Iciaries supported via Lawcare Renovo referrals CAM referrals We collaborate ¥wth and fund a range of expert partner organlsations to make sure sollcltors get the support Ihat they need.

8 Annu31 AccoLJnts 2020 Who have we helped? Gender • Allcas 55% Age Chronic and serious health conditions & dis2biliry 41% 43% 55% 33 Female 45% *1 ..Ilii._ n No AChronlcorserh)￿&hQ￿rth condltsDnord￿b11ty 10% Experi?￿ng￿ent￿I iSSuSS Male andlord15abilrt￿5 31. 51-70 Ethniciry All Ca5e5 in 2020 New Cases In 2020 69% 13% 12% 530 22% 14% White Asian Black White Asian Black 6% all other categories 11% all other categories

9 Annu31 AccoLJnts 2020 Professlonal chararteristics? 25% Regions across England & Wales Civil of our prirnary beneficiaries work for small firms, or are sole practitioners 4% Xl Commercial 4% 11 Criminal 9% lll Family 25% lll General Private London North West South East South west West Midland5 YOr￿h1rÈ and Humberslde wale5 Eastern 11 Type Solicitors Id 4¥ North Easi East Midlands Dependants 6% Xl Property 7% 11 pi 10% lll Public Sectorlln House 24% 11 other Post-qualification Experience 11lb 35% 137% 128% 0-IOyears 11-20years 20+ye4rs

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Trustees’ Report

Introduction

The Solicitors Benevolent Association (SBA), originally instituted in 1858, was incorporated as a charitable company limited by guarantee in 2008. In December 2020, a new operating name of The Solicitors’ Charity was adopted.

The Articles of Association specify a minimum of ten trustees as directors of the company, all of them to be members of the company. Most will be solicitors or former solicitors and up to three at any one time may be non-solicitor trustees. In the event of dissolution of the company each member bears a maximum liability of £10. In 2020, thirteen trustees were in post (reducing to 12 in June 2020), all but one of whom were solicitors.

In November 2020, a process to recruit a new Chair Elect and trustees with expertise in Mental Health, Welfare Benefits and Investment Management was started with successful candidates selected in spring 2021 and due to join the Board of Trustees throughout the year.

The objects of the Charity are to provide relief and assistance for persons in need who are or who have been admitted to the Roll of Solicitors for England and Wales or who are or have been married to or are or have been the civil partner of solicitors so admitted or who are or have been dependents of solicitors so admitted.

Direct financial assistance can take the form of either a grant or a loan. If the latter, it is invariably interest-free and secured on property. During 2019 the provision of loans was suspended whilst a review was carried out, with loan payments due to be made after March 2019 being converted to grant payments. In March 2020, Trustees resolved that loan payments will, in future, only be paid in a very limited range of circumstances usually directly to third parties for provision of equipment and services to beneficiaries.

In addition to direct support, The Solicitors’ Charity funds the provision of services for beneficiaries from expert partners including Citizens’ Advice Manchester (CAM), Renovo and Lawcare. Referral and signposting to other sources of help is also used as appropriate to an individual enquirer or applicant’s circumstances.

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Structure, Governance and Management

The trustees/directors bear overall legal responsibility for the administration of the Charity. It is their responsibility to provide strategic direction to the Charity, to control its affairs, to safeguard its assets, to identify and manage risk and to ensure that the Charity pursues its charitable objects. Trustees are recruited via advertisement and the appointment process is overseen by the Nominations Committee who ensure a fair, inclusive and transparent process. New Trustees can serve a fixed term of two years followed by up to two further terms of four years each.

Trustees are inducted via a tailored process of conversations with their peers, the Chief Executive and staff as well as the provision of key background information and documentation. All new Trustees are offered a mentor for their first year and the opportunity to attend training in the role and duties of a charity trustee. They must undergo data protection training and are required to sign the Trustee Code of Conduct. Formal training opportunities for all trustees are usually carried out at least once per year by way of a Trustee Away Day, though in 2020 the pandemic prevented this.

The Articles of Association provide that the trustees shall meet at least four times a year. Day to day management is delegated to the CEO, Nick Gallagher, who is supported by one part-time and five full-time colleagues, totalling 5.8 full-time equivalents (FTE).

The work of the board is supported by four committees with the Terms of Reference of each being regularly reviewed:

The Awards Committee is responsible for awarding grants and loans. It meets as often as monthly and is attended by up to six trustees and up to three volunteers as well as the Casework Team. This structure is designed to provide first-hand experience of issues affecting beneficiaries. The Awards Committee oversees all routine grant and loan decisions in respect of eligible beneficiaries, delegating decisions within explicit scenarios to staff. These delegated arrangements are subject to twice-yearly internal audit as well as annual external audit.

The Investment, Finance and Audit Committee (IFAC) scrutinises the work of the Charity’s investment managers, the setting of investment and reserves policy, the setting of the annual budget and progress against it. It also recommends, for decision by the full Board, the appointment of auditors, the approval of the annual accounts and the appointment of investment managers.

The Nominations Committee is focused on new appointments to the Board.

The People and Development Committee focuses on human resources issues for staff and volunteers, including staff and executive remuneration.

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Trustees in office 2020 to 2021

Board Officers

Matthew Robbins

Ex-officio member of all committees

Matthew Robbins is The Solicitors' Charity’s Chairman, Senior Partner at Jasper Vincent solicitors in Southampton and past President of Hampshire Incorporated Law Society (HILS). He was the first solicitor to arrive at the Law Society conference by canoe, from London to Birmingham along the Grand Union canal in aid of The Solicitors' Charity!

Kirsty McEwen

IFAC, Nominations Committee, People & Development Committee

Kirsty McEwen is the Honorary Treasurer of The Solicitors’ Charity. She is a partner at leading Black Country law firm Higgs & Sons. She specialises in advising charities and not-for-profit organisations, including social enterprises, on all aspects of their operations.

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Chairs of Committees

Michael Gillman

Nominations Committee (Chair); Investment, Finance and Audit Committee

Michael Gillman became a The Solicitors' Charity trustee in 2009 and was chairman between 2012 and 2015. He was the senior partner and specialist matrimonial solicitor at Bishop & Sewell LLP. Michael was president of the City of Westminster & Holborn Law Society in 2008.

Christl Hughes

Awards Committee (Chair); Nominations Committee

Christl Hughes was the sixth woman in The Solicitors' Charity’s history to be appointed Chairman. A former high street solicitor specialising in contentious business, she is now a trustee for the Gender Identity Research & Education Society, a charity offering support to transgender individuals. Christl became President of Leicestershire Law Society in 2020.

Adam Parker

Investment, Finance and Audit Committee (Chair) until March 2021

Adam Parker joined The Solicitors' Charity in 2017 and was only the second non-solicitor to become a Trustee. In 2020 Adam was Head of Midlands Investment Management and a member of the Charity Team at investment firm Tilney. Adam stepped down as Chair of IFAC and trustee in March 2021.

Karen South

People & Development Committee (Chair): Awards Committee

In 2020, Karen South was a solicitor in a 2-partner firm practising from Chancery Lane. Karen’s specialisms are employment law and litigation. She also sits as Vice Chair and Child Protection Governor on a school governing body.

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Andrew Wauchope

Investment, Finance and Audit Committee (Chair) from March 2021

Andrew is a Chartered Fellow of The Chartered Institute for Securities & Investment and has over 30 years of investment experience including at Quilter Goodison, Gerrard Vivian Grey and Laing & Cruickshank (later UBS). At UBS he was Head of Charities Investment. He performed a similar role at Psigma Investment Management, now Punter Southall Wealth. He has extensive experience as an investment committee chair and finance committee member. He is currently a member of the Court of the Worshipful Company of Ironmongers, a trustee of the Masonic Charitable Foundation, the Sir Halley Stewart Trust and the Accountants Charities as well as being the current Chair of the Harrow Mission Trust.

Board Members

Ginny Cannon

Chair-elect

Ginny Cannon joined The Solicitors’ Charity as Chair-elect in March 2021. She is due to take over as Chair in September 2021. A retired in-house commercial solicitor, she is a steward of the City of London Solicitors’ Company. Chair of the Friends of Moorfields Eye Hospital until 2021, Ginny is also an independent trustee of the Investment Managers’ Charitable Trust.

Anthony Cumming

Awards Committee

Anthony Cumming was an equity partner in Lupton Fawcett of Leeds, being a personal injury specialist. He was president of Leeds Law Society in 2003/4 and was chairman of The Solicitors’ Charity in 2001.

Tim Cuthbertson

Tim Cuthbertson is a partner in Blackhams, a small firm in Birmingham city centre where he deals with private client and commercial property work. A member of the board since 1980, he served as chair in 2009-10.

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Tanya Dunbar

Nominations Committee

Tanya Dunbar joined The Solicitors' Charity in 2014. She qualified in 2008, having had a previous career as a Business Development Manager for an Internet Service Provider. Tanya practised as a solicitor at Ashfords LLP until early 2016 when she joined the Post Office as an in-house Commercial Lawyer.

Karen Matthews

Awards Committee; People & Development Committee

Karen Matthews joined The Solicitors' Charity in 2014. She is a practising solicitor and a US attorney admitted to the Florida Bar. She is also an Associate of the Institute of Chartered Secretaries. In 2001 she became in-house counsel for an international biotech company based in north-west England.

Haroon Qayum

Nominations Committee

Haroon Qayum is an Associate at Blackhams in Birmingham where he specialises in private client work. Haroon was President of the Cambridgeshire & District Law Society between March 2014 and October 2015.

Shams Rahman

Shams Rahman is a solicitor and partner at leading Lincoln’s Inn law firm Edwin Coe LLP, specialising in commercial and property related litigation. He is a member of the Law Society and a regular speaker at events promoting law career development and mentoring of law students and young professionals.

Matthew Rhodes

Matthew Rhodes OBE ended his term of office as a trustee in June 2020. The trustees are grateful for his dedicated service over many years.

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Public Benefit

The public benefit of The Solicitors’ Charity’s work is in providing relief to those in need because of “youth, age, ill-health, disability, financial hardship or other disadvantage” under section 3(1)(j) of the Charities Act 2011. The relevant Charity Commission guidance provides that “it is likely to be charitable to relieve either the poverty or the financial hardship of anyone who does not have the resources to provide themselves, either on a short or long-term basis, with the normal things of life which most people take for granted”.

The trustees confirm that they have complied with their statutory duty to have regard to the Charity Commission’s guidance on public benefit.

Volunteers

Besides the 13 Trustees who served in 2020, of whom all but one are practising or retired solicitors, the Charity also has a dedicated cohort of volunteers. A review of the role of volunteers was begun in 2019 alongside our approach to safeguarding. The intention had been to restart beneficiary home visits in 2020 with volunteers assisting the caseworkers in assessing the needs of beneficiaries and the impact that the support the Charity offers has on their lives. Because of the effects of the pandemic, home visits were impossible. However, ‘befriending’ calls were offered to all beneficiaries and these were taken up by a small number.

One volunteer, a trainee solicitor, worked alongside the staff team throughout 2020 administering the Hardship Fund that had been established to meet the needs of solicitors affected by the pandemic.

Learning from the experiences of solicitors during the pandemic gained through conversations across the profession has given greater insight into a wider variety of roles that volunteers might play in supporting solicitors in need. These new approaches will be included in the development and relaunch of the Charity’s volunteer programme in 2021.

Grant-Making Policy

To receive an award, applicants must meet The Solicitors’ Charity's beneficiary criteria. Applicants are assessed for eligibility using the Joseph Rowntree Minimum Income Standard as the starting point. This looks at the incomes different households require to meet a minimum standard of living broadly accepted in society as decent. Applicants with liquid assets greater than £10,000 are ineligible for financial support.

The needs of beneficiaries are considered with a view to ensuring a return to self-sufficiency wherever possible. Where this is not possible, due, for instance, to chronic ill-health, disability or age, longer-term support can be provided. For all beneficiaries, our approach is to support

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interventions that deliver long-lasting positive change in all aspects of wellbeing – financial, mental and physical, social and professional.

Given learning from the experiences of solicitors during the pandemic, access to support has been widened in 2020 explicitly to include solicitors with no work or whose work has been much reduced. The standard eligibility criteria apply in such situations.

Consideration of applications is overseen by the Awards Committee within their Terms of Reference. A range of decisions, within agreed parameters, is delegated to staff. Delegated awards are kept under review by the Awards Committee and are subject to twice yearly internal audit by a trustee independent of the Awards Committee, reporting to IFAC and the full board. Applicants may be awarded: grants to assist with cost of living; debt relief; support from partner services detailed below; or, in exceptional circumstances, loans secured against property and paid to third parties for the provision of services. The Charity does not usually pay off debt accumulated as a result of periods of study for higher or professional qualifications, nor does it pay off business debt.

The Board retains the discretion to act as it sees fit in exceptional circumstances.

Collaboration to ensure beneficiaries get the right help at the right time

Working in collaboration with other charities and service providers helps us to deliver more services to our beneficiaries, utilising the expertise that these partners supply.

LawCare – During 2020, LawCare provided emotional support and guidance to 441 (2019: 225) solicitors in England and Wales via its helpline, using funds provided by The Solicitors’ Charity. The level of funding was increased significantly in 2020.

Renovo – 21 (2019: 15) beneficiaries were referred to Renovo for career support. Eligible beneficiaries are supported by financial assistance for up to a year whist they undertake the threemonth long course and actively seek a new position.

Citizens Advice – During 2020, The Solicitors’ Charity funded 21 (2019: 69) referrals for expert, priority advice on state benefits and debt management from the advice centre in Manchester.

Achievements and Performance

The key performance indicators used to measure progress on achieving objectives and delivering strategy can be seen from the statistics below (2019 in brackets):

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Key Management Salaries

The Solicitors’ Charity is committed to rewarding its people to recognise their effort and to retain their skills, and to attract new high-calibre staff. The charity believes in the importance of transparency in how it sets pay and is particularly conscious of the need for clarity and openness in setting executive pay.

Decisions on pay for all staff are made by the Board of the Charity. All members of the Board, including the Chair, are independent volunteers who bring their skills, knowledge and expertise from outside the organisation to decision-making. A sub-committee of the Board, the People & Development Committee (which is made up of volunteer Board members), scrutinises pay proposals in detail on behalf of the full Board.

Transparency and reporting

The Charity has adopted a pay policy that applies to all staff in the organisation. In line with good practice, the draft policy was shared with staff for comment before trustee approval. The policy clearly sets out how recommendations on pay increases are to be governed, the parameters to be considered in making decisions about pay, how and when grading and benchmarking of salaries is to be carried out and the importance of independent review in the grading and benchmarking process.

Under the terms of the Pay Policy, decisions on pay are made by the full Board, on the recommendation of the People and Development Committee following scrutiny of a formal annual proposal. Responsibility for the application of the Pay Policy in respect of the CEO lies with the Chair of the Board. Application of the Pay Policy with regards to all other staff lies with the CEO.

Proportionality of executive pay

The Charity considers how proportionate executive pay is both to the external market and in relation to other pay in the organisation. In common with all other roles in the Charity, the CEO’s salary is assessed against similar roles in similarly sized and located organisations within similar sectors, using the benchmarking process outlined in the Pay Policy.

The Charity pays due regard to NCVO and ACEVO good practice guidance on ratios between executive salaries and those of other employees. The Board has agreed a maximum cap of 3:1 between the salary of the CEO and the median of all other salaries in the organisation.

To calculate this ratio the CEO’s salary is compared with the median of all other full-time equivalent salaries. Where there is an even number of staff, the average of the two middlemost salaries in the set is used.

The ratio of CEO to median staff pay at 1st January 2021 will be 1.76:1.

Executive performance

In common with all staff of the organisation, the CEO is subject to a 6-month probationary period. Successful completion of the CEO’s probationary period is assessed by the Chair and one other member of the Board.

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Annual KPIs for the CEO are agreed between the Chair and the CEO and shared with all trustees and staff. Performance is monitored in regular meetings between the Chair and CEO and a formal annual performance appraisal is carried out by the Chair and one other member of the Board.

In adopting its current pay policy, the Charity has chosen not to use individual performance related pay, though organisational performance is a factor considered in setting across the board pay rises.

Recruitment and retention

Since attracting high-calibre staff who can help grow and develop the Charity is important to the organisation, the Charity recognises the need to competitive in the labour market whilst paying due regard to prudent use of charitable funds.

The Pay Policy sets out an approach to benchmarking that ensures salaries for all staff are commensurate with those of people performing similar roles in similarly sized and located organisations within similar sectors. Taking account of affordability, it is the aim of the Charity to pay all salaries including that of the CEO at, or above, the median of the benchmarked salary range for each role. However, salaries will not normally be paid above the level of the third quartile of the relevant benchmark.

The Charity also offers a pension scheme with staff contributions matched by the employer as well as a holiday leave entitlement above statutory guidelines.

Financial Review

----- Start of picture text -----
2020 2019
Income Residual
Income
Subscriptions and Donations 153,558 81,187 Client Balances Investment
Legacies 12,664 262,211 40% Income,
28%
Residual Client Balances 610,965 914,454
Legacies
Investment Income 429,104 592,148
1%
Other Income 36,500 45,265
Loan Repayments 272,494 265,137 Subscriptions
Other
1,515,285 2,160,402 & Donations, Loan income,
11% Repayments, 2%
18%
(Loan Repayments and Advances are not included in the SOFA)
2020 2019 Expenditure
Loan
Expenditure Advances, Grants &
1% Welfare,
Grants and Welfare 1,875,336 1,476,916 87%
Fundraising & Membership 222,738 193,936
Governance Costs 38,431 25,477
Loan Advances 20,127 83,458
Governance Fundraising &
2,156,632 1,779,786 costs, Membership,
10%
2%
----- End of picture text -----

Total income for the year {2019} (excluding loan repayments) amounted to £1,242,791 {£1,895,265}. Total expenditure for the year (excluding loan advances) amounted to £2,136,505

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{1,696,329}. The consequent net expenditure before investment gains and losses was (£893,714) (2019: Net income: £198,936).

Other recognised gains and losses included gains on investments amounting to £10,441 {£2,456,430}. When added to the net income and the funds brought forward, total net assets have decreased to £24,827,045 {£25,710,318}. The principal net assets are the investment portfolio of £19,430,141 {£19,437,474} and the secured loans to beneficiaries of £4,113,820 {£4,400,621}.

The principal source of funding for The Solicitors Charity is conditional donations of residual client balances from solicitors’ firms. The Solicitors Regulation Authority allows for donation of client balances to charity in the event the client is untraceable. The Solicitors’ Charity offers an indemnity for all client balances received. The Charity holds sufficient funds to repay any client balances transferred to it under the Solicitors Account Rules. The balances are used to build The Solicitors’ Charity’s investment to produce income to fund charitable grants or for funding occasional interest free- loans to beneficiaries secured on property. They are not available directly to fund the general activities of the Charity until 15 years after receipt.

The Charity continues to receive donations from individual solicitors, firms and law societies. These are gratefully received, and the income is utilised in year to make a positive difference to the lives of our beneficiaries through grants, support commissioned from partners and occasional secured loans. The Solicitors’ Charity does not use professional fundraisers to raise funds.

Investment Policy

The investment objectives are to achieve a balanced return in terms of capital growth and income from a portfolio of investments with a medium / high risk profile. The total return in 2020 was 2.25% (2019, 18.75%). The investment policy is reviewed annually.

The investment is a significant asset and its management requires appropriate skill. The Solicitors’ Charity has appointed Investec Wealth management as its investment managers. IFAC is chaired by a trustee with investment management expertise and the investment managers meet formally with that Committee twice yearly.

Reserves

The trustees consider that targeting a level of free reserves of three years current annual expenditure is appropriate. This position is kept under review. Beneficiaries have historically been supported for an average of 7.8 years; the reserves allow for continued support to beneficiaries if the Charity’s income is reduced and action in time of major crisis – such as the Covid-19 pandemic.

Free reserves at the end of 2020 were £ 5,823,976 (approximately 23% of the Charity’s overall wealth). These exclude endowment funds, tangible fixed assets, long term liabilities, designated funds and funds which have been applied to beneficiary loans. Three years’ expenditure is £6.43m.

Given prudent financial management over previous years, the trustees were in a position to identify £1m from free reserves to form a Hardship Fund to meet the increased needs of the profession resulting from the pandemic. The healthy free reserves also provided a buffer against any losses on investments and reductions in donations. These were thought possible because of

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the impact of Covid-19 on financial markets, available work for firms and on the personal finances of solicitors.

The Charity has planned for a further wave of pandemic related need in 2021and hence has budgeted for free reserves to be below the targeted level in the medium-term. Planning based on modelling a number of scenarios, underpins this approach.

Risk Management

The trustees current risk management strategy comprises:

For the sake of good governance, the trustees have commissioned a formal external review of risk management approaches and methodologies to report in June 2021.

Principal risks and their management are set out below:

Principal risks and their management are set out below:
Software security Given the rising threat levels experienced in 2020,
major investments were made in moving server
provision to the Cloud and enhancing security levels
including introduction of multi-factor
authentication. IT user policies reviewed and
tightened (including for home working). External
Data Protection Officer engaged to provide expert
advice and guidance. Penetration test of new
website carried out by cyber-security consultants
before launch.
General awareness & communication
amongst potential Beneficiary pool		 Communications strategy rolled out including
advertising campaign around Hardship Fund.
Communications focus on a ‘help spread the word’
message. New, more user-friendly website makes
finding help easier. CEO addressed a range of
professional groups and local law society AGMs
through videoconferencing during pandemic
lockdowns.
Charity's awareness of full range of
need amongst its potential
beneficiaries		 A major information gathering exercise was carried
out in 2020 which led to revisions in access to
support. These better reflect the current needs of
the profession. This exercise has led to the
establishment in 2021 of a Reference Panel,with

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solicitors from across the profession helping with
horizon scanning. The Charity’s CEO also meets
regularly with other providers of support to the
profession to keep abreast of developments.
Following a full skills audit, a successful recruitment
campaign for trustees was begun in 2020 resulting
in enhanced skills and knowledge of mental health
and welfare benefits on the Board from 2021
onwards.
Severe loss of income New supporter management database in place.
New website and brand refresh in 2021 as part of
ongoing communications strategy. Review of
fundraising potential income sources now
scheduled in 2021. Prudent financial management
with regular financial scenario planning undertaken
taking account of income loss possibilities.

The trustees are satisfied that the major risks to which the Charity is exposed have been identified and that systems and procedures have been established to manage them successfully.

Future Plans

The impact of the Covid-19 pandemic meant that priorities in 2020 shifted to ensuring provision of a quality service for a significantly increased number of new and continuing beneficiaries whilst operating remotely. We were also able to learn about, and tailor our response to emerging needs within the profession.

This means that a number of outcomes originally planned for 2020 have become key outcomes for 2021 alongside new items:

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Trustees’ responsibilities in respect of the preparation of the accounts

The trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the Accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

departures disclosed and explained in the financial statements, and

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

Statement as to disclosure of information to the Auditors

In so far as the trustees are aware:

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Accounting Principles

This report has 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 FRS 102’’ applicable in the UK and Republic of Ireland published in October 2019

Approved by the Board of Trustees on 30 June 2021 and signed on its behalf by

Matthew Robbins , Chairman

25 Annual Accounts 2020

Independent auditor’s report to the members of Solicitors Benevolent Association Ltd

Opinion

We have audited the financial statements of Solicitors Benevolent Association Ltd (the ‘charity’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity'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.

26 Annual Accounts 2020

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. 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.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ 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:

27 Annual Accounts 2020

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 23, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the 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. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities Statement of Recommended Practice.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted and endowment funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

28 Annual Accounts 2020

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of the audit report

This report is made solely to the charity's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity'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 charity and the charity's members as a body for our audit work, for this report, or for the opinions we have formed.

Signed:

Nicola Wakefield

(Senior Statutory Auditor)

for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

2[nd ] Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SMl 4FS

22-Jul-2021 Date: ................................ .

29 Annual A ccounts 2020

Supporting The Solicitors’ Charity

Annual Donations

Individual solicitors support The Solicitors Charity by making one-off or regular donations, through the life membership scheme or by making an annual donation, for which the recommended amount is £60 per partner. Law firms also make regular donations on behalf of their partners and employed solicitors. Substantial payments from firms in 2020 included the following: £


cluded the following:
£
Browne Jacobson LLP 750
Tozers
Cartmell Shepherd Solicitors
Wartnaby Hefford Solicitors
Gross & Co		 275
250
240
200
HFT Gough & Co 200
Taylor Vinters 200

Residual Client Balances

Solicitors may transfer unclaimed balances in their firm’s client account on a conditional basis, in the knowledge that The Solicitors’ Charity retains substantial reserves which would enable repayment of the balance if claimed by the person entitled. Solicitors Regulation Authority approval is required for transfer of individual sums over £500.

Residual Client Balances are a large part of The Solicitors’ Charity’s income and we are grateful to all firms who send their client balances to us.

Local Law Societies

Donations were gratefully received from the following

Other Donations

Law & Notary Societies:

Generous donations were also received from:

£
Queens Counsel Appointments 100,000
The HM Hubbard Will Trust 20,000
The Pritt Fund 14,000
The City of London Solicitors
Charitable Trust		 2,500
Law & Notary Societies:
£
Bournemouth & District Law Society 1,050
Cornwall Law Society 1,000
Notaries Society 250
Northamptonshire Law Society 250
Middlesex Law Society 100

Legacies

Legacies
£
Basil L. V. Richards 8,576
Martin Charles Broker 4,032
Valerie Marie Thompson 55
Harold Moreton 2

30 Annual Accounts 2020

Statement of Financial Activities For the year ended 31 December 2020

(Incorporating the income and expenditure account)

Unrestricted Restricted Endowment Total Funds Total Funds
Note Funds Funds
Funds		 2020 2019
£
£
£		 £ £
INCOME
Donations and Legacies 3 777,187
36,500
-		 813,687 1,303,117
Investment Income 5 429,104
-		 - 429,104 592,148
Total Income 1,206,291
36,500
-		 1,242,791 1,895,265
EXPENDITURE
Raising Funds 6 218,786
-		 3,952 222,738 193,936
Charitable Activities 7 1,877,267 36,500
-		 1,913,767 1,502,393
Total Expenditure 2,096,053
36,500
3,952
2,136,505		 1,696,329
NET (EXPENDITURE)/ INCOME
before gains on investments (889,762)
-		 (3,952) (893,714) 198,936
Net gains on Investments 12 8,000
-
2,441
10,441		 2,456,430
NET MOVEMENT IN FUNDS (881,762)
-		 (1,511) (883,273) 2,655,366
RECONCILIAION OF FUNDS:
Funds brought Forward 19,700,733
-		 6,009,585 25,710,318 23,054,952
TOTAL FUNDS CARRIED FORWARD 18,818,971
-		 6,008,074 24,827,045 25,710,318

The Statement of Financial Activities includes all gains and losses recognized in the financial year.

All income and expenditure derive from continuing activities.

The notes on pages 33 to 41 form part of these accounts

31 Annual Accounts 2020

Statement of Cash Flows For the year ended 31 December 2020

Total Funds Total Funds
Note 2020 2019
£ £
Net Cash (used in)/ provided by operating activities 22 (784,930)
262,999
Cashflows from investing activities:
Interest and dividends 5 429,104
592,148
Purchase of investments (excluding cash equivalents) 12 (4,387,138) (4,741,851)
Proceeds from sale of investments 12 4,404,912
4,010,618
Net Cash provided by/(used in) investing activities 446,878
(139,086)
Change in cash and cash equivalents in the year (338,052) 123,913
Cash and cash equivalents brought forward 1,831,545 1,707,632
Cash and cash equivalents Carried forward 23 1,493,493
1,831,545

32 Annual Accounts 2020

Balance Sheet as at

31 December 2020

Unrestricted EndowmentsTotal FundsTotal Funds
Note Funds Funds20202019
£ £ £ £
Fixed Assets
Tangible Fixed Assets 11190,980 -190,980182,403
Investments 1213,422,067 6,008,07419,430,14119,437,474
Secured loans to beneficiaries 4,113,820- 4,113,8204,400,621
17,726,867 6,008,07423,734,941 24,020,498
Current Assets
Debtors 13143,150 -143,150180,401
Cash and cash equivalents 231,493,493 -1,493,4931,831,545
1,636,643 -1,636,643 2,011,946
Creditors falling due
within oneyear 14 (533,863) -(533,863) (310,264)
Net current assets 1,102,780 -1,102,780 1,701,682
Total Assets less Current
Liabilities 18,829,647 6,008,07424,837,72125,722,180
Creditors falling due
After more than one year 15(10,676)- (10,676)(11,862)
Net Assets 18,818,971 6,008,074 24,827,045 25,710,318
Funds
Unrestricted Funds
General Fund 196,897,050 -6,897,0507,934,945
Residual Client Balances
Undesignated Fund 193,227,879 -3,227,8793,227,879
Designated Fund 198,694,042 -8,694,0428,537,909
Endowment Funds 18- 6,008,0746,008,0746,009,585
Total Funds 18,818,971 6,008,074 24,827,045 25,720,318

The notes on pages 33 to 41 form part of these These accounts on pages 29 to 41 were approved by accounts. Solicitors Benevolent Association Limited the Board of Trustees and authorised for issue on Registered company number: 6601907 30 June 2021 and signed on its behalf by: Registered charity number: 1124512 Matthew Robbins, Chairman Kirsty McEwen, Honorary Treasurer

33 Annual Accounts 2020

Notes to the Accounts for the year ended 31 December 2020

  1. Accounting Policies

  2. The Solicitors Benevolent Association is a company limited by guarantee, incorporated in England and Wales. The principal activity of the charity is to alleviate personal financial hardship amongst enrolled solicitors and their dependents. The financial statements are presented in Sterling and this is the functional currency of the Charity. The financial statements have been prepared under the historical cost convention, and in accordance with applicable accounting standards. In preparing the financial statements the Charity follows best practice as set out in the Statement of Recommended Practice : 'Accounting and Reporting by Charities' (SORP), the Financial Reporting Standard applicable in the United Kingdom and Ireland (FRS 102) and the Charities and Companies Acts.

A summary of the more important accounting policies, which have been applied consistently, is set out below.

34 Annual Accounts 2020

Notes to the Accounts for the year ended

31 December 2020

Continued

Unrestricted Restricted Endowment Total Funds
Notes Funds Funds Funds 2019
£ £ £ £
2. Previous Year Statement of Financial Activities Analysis
INCOME
Donations and Legacies 1,257,852 45,265 - 1,303,117
Investment Income 592,148 - - 592,148
Total Income 1,850,000 45,265 - 1,895,265
EXPENDITURE
Raising Funds 189,768 - 4,168 193,936
Charitable Activities 1,457,128 45,265 - 1,502,393
Total Expenditure 1,646,896 45,265 4,168 1,696,329
NET INCOME/(EXPENDITURE)
before other recognised gains and losses203,104 - (4,168) 198,936
Other recognised gains and losses
Realised gains on investment assets 282,245 - 87,055 369,300
Unrealised gains on investment assets 1,595,134 - 491,996 2,087,130
NET MOVEMENT IN FUNDS 2,080,483 - 574,883 2,655,366
Funds brought forward 17,620,250 - 5,434,702 23,054,952
TOTAL FUNDS CARRIED FORWARD 19,700,733 - 6,009,585 25,710,318
Unrestricted Restricted Endowment Total FundsTotal Funds
Funds Funds Funds 20202019
£ £ £ £ £
3. Donations and Legacies
Annual subscriptions and Donations 152,372 - - 152,37279,869
Life subscriptions (see note 15) 1,186 - - 1,1861,318
Legacies 12,664 - - 12,664262,211
Other charities (see note 20) - 36,500 - 36,50045,265
Residual client balance
donations(see note 19) 610,965 - - 610,965914,454
777,187 36,500- 813,6871,303,117

No Client balances were received from Jasper Vincent Ltd (2019: £214). SBA Trustee Matthew Robbins is a Board member for Jasper Vincent.

Client balances of £1,696 (2019: £336) were received from KPM Solicitors. SBA Trustee Karen South was a Director in the firm.

35 Annual Accounts 2020

Notes Notes to the Accounts
for the year ended
31 December 2020
Continued
UnrestrictedTotal FundsTotal Funds
Funds20202019
£ £ £
4. Fundraising Activities
Events - - -
5. Investment Income
Income from listed investments 427,388427,388589,705
Interest on cash deposits 1,7161,7162,443
429,104429,104592,148
Unrestricted Restricted EndowmentTotal FundsTotal Funds
Funds Funds Funds20202019
£ £ £ £ £
6. Raising Funds
Costs of raising voluntary income
Business development and advertising 167 - -1671,383
Repayments of residual client balance 2,055 - 3,9526,0076,336
donations (see notes 18 and 19)
Investment portfolio management fees 77,797 - -77,79781,708
Salary costs 38,909 - -38,90926,865
Support costs(see note 10) 99,858 - -99,85877,644
218,786 - 3,952222,738193,936
Unrestricted RestrictedTotal FundsTotal Funds
Funds Funds20202019
£ £ £ £
7. Charitable Activities
Grants to beneficiaries
Cost of living allowances 865,756 36,500902,256598,246
Supplementary, special and
miscellaneous grants 255,369 -255,369245,499
Nursing home fees - --15,142
LawCare 90,000 -90,00066,000
Citizens Advice Manchester 4,980 -4,9807,320
Renovo Fees 18,960 -18,96011,135
1,235,065 36,5001,271,565943,342
Welfare salaries, travel, admin and legal costs 212,609 -212,609205,004
Support costs (see note 10) 391,162 -391,162328,570
Governance costs(see note 8) 38,431 -38,43125,477
1,877,267 36,500 1,913,7671,502,393

Direct grants, loan write-offs, and other payments in support of beneficiaries totalled £1,271,565 (2019: £943,342) . This figure includes provisions and write-offs against repayments of secured loans totalling £36,254 (2019: £44,966).

In addition, secured loans totalling £20,127 (2019: £83,458) were advanced to beneficiaries. These loans had been awarded before 2020 but not previously claimed. No loans were awarded in 2020 (2019: £164,839).

Repayments of secured loans totalling £269,119 (2019: £ 255,476 ) and unsecured loans totalling £1,820 (2019: £ 9,662 ) were received.

36 Annual Accounts 2020

Notes to the Accounts

for the year ended

Notes to the Accounts
for the year ended		 Notes to the Accounts
for the year ended
31 December 2020
Continued
Unrestricted RestrictedTotal FundsTotal Funds
Funds Funds20202019
£ £££
8. Governance Costs
Auditors' remuneration - audit services 11,577 -11,5779,600
Trustee recruitment 24,000 -24,000-
Cost of Trustees' meetings and travel 2,854 -2,85415,877
38,431 -38,43125,477
Expenses reimbursed to 3 Trustees (2019:9) for travel amounted to £943 (2019: £5,204). No other reimbursements were made to Trustees.
A process resulting in the recruitment of 5 new trustees was begun in 2020, costing £24,000.
Staff OtherTotalTotal
Costs Costs20202019
£ £££
9. Total Expenditure
Raising Funds(see note 6) 92,720 130,018222,738193,936
Charitable activities(see note 7) 330,858 1,582,9091,913,7671,502,393
423,578 1,712,9272,136,5051,696,329
Staff costs
Wages and salaries
 369,029342,687
Social security costs 32,24928,324
Pension costs 18,11210,807
Staff TrainingCosts 4,1884,059
423,578385,877
Other costs
Grants to beneficiaries 1,271,565943,342
Premises, equipment and administrative 245,194160,884
Business development, advertising, legal, audit and trustee expenses 190,161280,492
Repayments of residual client balances(see notes 18) 6,0076,336
1,712,9271,391,054
Employees who received emoluments: 2020 2019
Above £90,000 - -
£80,001 to £90,000 1 -
£70,001 to £80,000 - -
£60,001 to £70,000 - -
The average monthly head count was 6.8 staff (2019: 5.9), and the average monthly number of employees
on a full time equivalent basis was: 20202019
Beneficiary welfare 2.82.8
Fundraising, membership and publicity 1.01.0
Management and administration 3.02.1
6.85.9

The total emolument the CEO received in 2020 was £84,133 of which salary was £80,000 and employer pension contribution was £4,133. In 2019 the CEOs role was filled on an interim basis until June 2019. The interim CEOs up to June 2019 and permanent CEO appointed in June 2019

The board of directors, who are the Charity’s trustees, and the Chief Executive comprise the key management personnel of the charity in charge of directing, controlling and operating the Charity. All trustees give of their time freely and no trustee received remuneration in the year. Details of trustees' expenses are disclosed in note 8 to the accounts.

37 Annual Accounts 2020

Notes to the Accounts for the year ended 31 December 2020 Continued

Charities are encouraged to report not just figures but also pay ratios against median salaries. The ratio of the CEO’s salary when compared to the median salary is 1.83:1. As some staff are part-time, the ratio remains the same as 1.83:1 after adjustment to equivalent full-time salaries.

Staff pay is founded on the principle that the Board of The Solicitors’ Charity wishes to attract high calibre staff capable of contributing actively to the drive to professionalise the charity in everything that it does. The trustees’ approach to pay is set out in the 2020 Trustees Report.

The Solicitors’ Charity has Indemnity Insurance costing £2,270 (2019 : £1,658) to protect the charity from loss arising from the neglects or defaults of its trustees, employees or volunteers, and to indemnify the trustees, officers and volunteers against the consequences of any neglect or default on their part.

2020 2019
£ £
Support Costs
Breakdown of support costs
Management and administrative salaries 245,826 245,330
Office accommodation and administration costs 245,194 160,884
491,020 406,214
Allocation of support costs
Charitable activities 391,162 328,570
Costs of raisingvoluntaryincome 99,858 77,644
491,020 406,214
  1. Support Costs

Support costs are allocated between Charitable activities and Costs of raising voluntary income in proportion to direct salary costs incurred in each area. The apportionment represents 257% of direct salary costs (2019: 289%).

Support costs represent 38% (2019: 40%) of grants and loans made to beneficiaries.

**11. ** Freehold
Freehold
Furniture &
Total
Land
Buildings
Equipment
£
£
£
£
Tangible Fixed Assets
Cost b/f at 1 January 2020
100,000
172,161
40,141
312,302
Additions in the year
-
-
17,844
17,844
Cost c/f at 31st December 2020
100,000
172,161
57,985
330,146
Depreciation b/f at 1 January 2020
-
(106,671)
(23,228)
(129,899)
Depreciation charge for the year
-
(3,443)
(5,824)
(9,267)
Depreciation c/f at 31 December 2020
-
(110,114)
(29,052)
(139,166)
Net book value at 31 December 2020
100,000
62,047
28,933
190,980
Net book value at 31 December 2019
100,000
65,490
16,913
182,403
There were no capital commitments (2019 : £nil).

38 Annual Accounts 2020

Notes to the Accounts for the year ended 31 December 2020 Continued

12 2020
2019
£
£
Fixed Asset Investments
Quoted investments
Market value at 1 January
19,437,474
16,249,810
Additions
4,387,138
4,741,851
Disposals
(4,404,912)
(4,010,618)
Net realised (losses)/gains
(587,896)
369,300
Net unrealisedgains
598,337
2,087,131
Market value at 31 December
19,430,141
19,437,474
Historical cost as at 31 December
14,616,260
15,523,381
Investments analysis at 31 December
UK Fixed Interest
958,036
1,587,051
Overseas Fixed Interest
795,434
217,049
UK Equities
4,997,272
6,723,622
Overseas Equities
10,213,424
7,695,606
Propertyand Other
2,465,975
3,214,146
19,430,141
19,437,474

At 31 December 2020 there were no investments exceeding 5% of the investment portfolio market value.

Permanent Endowment Permanent Endowment
Main Residual
Unrestricted Fund Client Balance Total Funds Total Funds
Funds Fund 2020 2019
£ £ £ £ £
Gains on Investment Assets
Realised (losses)/gains on disposals (450,480) (47,051) (90,365) (587,896) 369,300
Unrealisedgains(see note 21) 458,480 47,887
91,970		 598,337 2,087,131
8,000 836 1,605 10,441 2,456,431

Gains or Losses on Investment Assets during the year are allotted to the Permanent Endowment Funds in the proportion that the opening bears to Total Funds, and the balance is allocated to Unrestricted Funds.

**13. ** 2020
2019
£
£
Debtors
Income tax recoverable
676
676
Unsecured loans to beneficiaries
6,524
8,344
Prepayments
19,006
18,135
Other debtors
116,944
153,246
143,150
180,401

Unsecured loans to beneficiaries have no predetermined repayment date and accordingly may not be repaid within twelve months of the balance sheet date.

39 Annual Accounts 2020

Notes to the Accounts for the year ended 31 December 2020 Continued 2020 2019 £ £ 14. Creditors: amounts falling due within one year Trade creditors and accruals 149,781 57,260 Unpaid beneficiary awards 371,317 241,187 Other tax and social security 12,765 11,817 533,863 310,264 2020 2019 £ £ 15. Creditors: amounts falling due after more than one year Life subscriptions - Balance at 1 January 11,862 13,180 Received during the year - - 11,862 13,180 Transferred to income (1,186) (1,318 ) Balance at 31 December 10,676 11,862 16. Contingencies and Commitments

The Solicitors’ Charity has a contingent liability to return any part of residual client balance donations received to contributing firms. On 31 December 2020, the total received net of repayments amounted to £15,600,111 (2019: £14,995,154) of which sums received between 1st March 2013 and 31st December 2015 totaling £3,214,899 excluding investment gains and losses (2019: £ 3,218,851) are held in a Permanent Endowment Fund (see notes 17 and 18).

At 31 December 2014 (more than 6 years ago) residual client balance donations were £8,798,537 (At 31/12/13 £7,938,912). At 31 December 2005 (more than 15 years ago) residual client balance donations were £3,569,904 (At 31/12/04 £3,316,923).

There is a commitment to pay secured and unsecured loans totaling £24,873 (2019: £132,921) which have been authorised but not yet paid.

Permanent Endowment Main Residual Client Total Fund Balance Fund Funds £ £ £ 18 Endowment Funds At 1 January 2020 2,057,671 3,951,914 6,009,585 Movements - Residual Client Balance Repayments - (3,952) (3,952) - Investment Gains 836 1,605 2,441 At 31 December 2020 2,058,507 3,949,567 6,008,074

Gains or losses on Investment Assets during the year are allocated to the Permanent Endowment Fund in the proportion that the opening balance bears to Total Funds, and the balance is allocated to Unrestricted Funds.

40 Annual Accounts 2020

Notes to the Accounts for the year ended 31 December 2020 Continued

The Main Fund - This was created during the years ended 31 December 1995 and 1996 when with Charity Commission approval 14 small charities forming part of the SBA Common Investment Fund were transferred to the SBA General Fund. The permanent endowment value included within these charities was confirmed in a Charity Commission Scheme dated 1 August 1996 as £932,409. Income, which is included in unrestricted funds, and (to the extent that it does not represent permanent endowment) capital may be used for the general purposes of the SBA.

The Residual Client Balance Fund - In accordance with counsel's opinion received in early 2015, Residual Client Balance donations received between 1st March 2013 and 31st December 2015 (a period during which all acknowledgements included an undertaking to permanently invest the donations received) have been taken into a Residual Client Balance Fund. This action was adopted by the SBA Board at its meeting on 17th June 2015 and was applied retrospectively.

General Residual Client Balances Residual Client Balances Total
Fund Designated Fund Undesignated Fund Funds
£ £ £ £
19 Unrestricted Funds
At 1 January 2020 7,934,945 8,537,909 3,227,879 19,700,733
Movements (1,037,895) 156,133 - (881,762)
At 31 December 2020 6,897,050 8,694,042 3,227,879 18,818,971

Within Residual Client Balances, the Designated Fund comprises the donations received during the period 1 January 2004 to 28 February 2013, and donations received from 1 January 2018 onwards. Movements in the year are net of £6,336 repayments. The Undesignated Fund comprises the donations received prior to 2004.

2020 2019
£ £
20 Restricted Funds
The charity received income from other charities for specific beneficiaries, and
these have all been spent in full during the year as intended.
The HM Hubbard Will Trust 20,000 20,000
The City of London Solicitor's Company-Charitable Fund 2,500 11,500
The Pritt 14,000 13,765
36,500 45,265
Permanent Endowment Permanent Endowment
General Main Residual Client Total
Fund Fund Balance Fund Funds
£ £ £ £
21 Reconciliation of Movements in Unrealised
Gains on Fixed Asset Investments
Net unrealised gains at 1 January 2020 3,057,463 353,438 503,193 3,914,094
Add attributable to disposals in the year 235,475 27,221 38,754 301,450
Add: netgains on revaluations in theyear 458,480 47,887 91,970 598,337
Net unrealised gains at 31 December 2020 3,751,418 428,546 633,917 4,813,881

41 Annual Accounts 2020

Notes to the Accounts for the year ended 31 December 2020 Continued

Total Funds Total Funds 2020 2019 £ £ 22. Reconciliation of net movement in funds to net cash flow from operating activities Net movement in funds (883,273) 2,655,366 Add back depreciation charge 9,267 6,536 Deduct income shown in investing activities (429,104) (592,148) Deduct gains on investments (10,441) (2,456,430) Purchase of Property Plant & Equipment (17,844) (1,884) Decrease in secured loans to beneficiaries 286,801 216,882 Decrease in debtors 37,251 438,833 Increase/(Decrease) in creditors 222,413 (4,156) Net cash flow from operating activities (784,930) 262,999 Total Funds Total Funds 2020 2019 £ £ 23. Analysis of Cash and Cash Equivalents Cash in hand 1,493,493 1,831,545 Cash Equivalents Total Cash and Cash Equivalents 1,493,493 1,831,545

42 Annual Accounts 2020

Patron

Her Majesty The Queen

President

The President of The Law Society

Vice-Presidents

Anthony Surtees

Malcolm Farrer-Brown

Trustees

Chairman Matthew Robbins Honorary Treasurer Kirsty McEwen Ginny Cannon (Appointed 10/3/21) Anthony Cumming Timothy Cuthbertson Tanya Dunbar Michael Gillman Christl Hughes Karen Matthews Adam Parker (Resigned 10/3/21) Haroon Qayum Shams Rahman Karen South Andrew Wauchope (Appointed 10/3/21) Matthew Rhodes OBE (Resigned 12/6/20)

The Solicitors’ Charity Staff

Chief Executive

Nick Gallagher

Caseworkers

Dervilla Carroll Jacqui Staniforth

Casework Manager Sue Ellis

Finance Director Andrew Imbrah

Marketing Executive Martyn Hayes

Operations, Risk & Compliance Manager Ricardo Premchand

Volunteers

Jeremy Abraham, London Sue Aggett, Devon Simon Alliott, S Yorkshire Charlie Anderson, London Janet Arthurs, Essex

Michael Bailey, Leeds Helen Barnes, Norfolk Stuart Berry, Harrogate Victoria Brandon, Greater Manchester Daniel Brooks, Suffolk Helen Broughton, Merseyside John Buchanan, Bournemouth Debra Burton, E Midlands

Peter Cadman, London & Bath Sally Cater, S Wales Yvonne Chapman, W Midlands Michael Clough, Cornwall Anthony Corcoran, W Sussex William Cowell, Cambridgeshire Caroline Coy, London John Crane, Leicestershire Tom Cryan, NW London

Anthony Cumming, N Yorkshire Jane Lougher, Berkshire Timothy Cuthbertson, Birmingham Del Magner, Buckinghamshire Simon Dinnick, London Joanna Maine, Teesside David Maydew, Bristol Rebecca Eels, Bath Gareth Morris, Aberystwyth Martin Elliott, Somerset Chris Nicholls, Cornwall Richard Fisher, Cardiff Michael Foster, Hastings Roger Owen, Powys Malcolm Fowler, W Midlands Rebecca Parkman, Weston-S-Mare Nigel Gibson Birch, Watford Jane Propert, Gwent Nick Gurney-Champion, IoW Matthew Robbins, Hampshire John Harmshaw, Wiltshire Elizabeth Roberts, Cheshire Alison Hegarty, Warwickshire Eila Rochfort, Surrey Anthony Hoffman, Gloucestershire Rhona Rowland, Northamptonshire Roderick Hursthouse, Hampshire

Geraldine Stephens, Trafford Charles Sweet, S London & Dorset Christian Swinburne, Tyne & Wear

Vanda James, Kent Ruth Jenkins, Ipswich Anwen Jones, Denbighshire

Rhian Williams, S Wales

Auditors

Mazars LLP 2nd Floor, 6 Sutton Plaza Sutton Court Road Sutton Surrey SM1 4FS

Bankers

National Westminster Bank plc PO Box 281, 156 Fleet Street London EC4A 2DX

Investment Managers

Investec Wealth & Investment Ltd 2 Gresham Street London EC2V 7QN

43 Annual Accounts 2020

1 Jaggard Way London SW12 8SG

Telephone: 020 8675 6440 Website: thesolicitorscharity.org

The Solicitors’ Charity exists to help persons in need who are or have been admitted to the Roll of Solicitors for England and Wales, or who are or have been married to or the civil partner of solicitors so admitted, or who are or have been dependents of solicitors so admitted.

Solicitors Benevolent Association Limited

A charitable company limited by guarantee registered in England & Wales number 6601907 Registered charity number 1124512

Registered Office 1 Jaggard Way London SW12 8SG

Patron HM The Queen