Reglstered Charity No 1136528 THE ERIC AND MARGAREf KINDER CHARITABLE TRUST REPORTS AND FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2024
THE ERIC AND MARGAREf KINDER CHARITABLE TRUST CONTENTS PAGE Referen and administratlon details Trustees, annual report Independent examiner's report Statement of financlal actlvities Balan sheet Notes to the accounts 10-16
THE ERIC AND MARGARET KINDER CHARrrABLE TRUST REFERENCE AND ADMINISTRATIVE DETAILS Legal status The Eric and Margaret Kinder Charitable Trust is a charity (registere number 1136528). It was set up on 2 June 2010 and Is governed by a trust deed. The Trustees of the charity during the period were as follows'.- Mr C W Kinder Mrs K M Allen Mr M J Harris- Retired on 24 Aprll 2024 Trustees Registered office Wrigleys Solldtors LLP 3rd Floor, Wellington Place Leeds LSI 4AP Independent examlner Ross Jordan FCCA SMH Bullockwoodburn Norfolk House Hardwick Square North Buxton SK17 6PU Bankers Natlonal Westminster Bank PIC 2 Howe Walk Burnley Lancashire BBII INZ Sollcltors Wrigleys Solicltors LLP 3rd Floor, Wellington Place Leeds LSI 4AP Investment advisers GAM London Llmited 8 Flnsbury Clrcus London EC2M 7GB Page I
THE ERIC AND MARGARET KINDER CHARrrABLE TRUST TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2024 The Trustee5 present thelr report wlth the financlal statements for the year ended 30 June 2024. The legal and administrative information set out on page I forms part of thls report. The financial statements comply with current statutory requirements and the trust deed. They also comply with the Statement of Recommended Practice 'Accounting and Reporting by Charities, (FRS 102) published in October 2019. structurei governance and management Trustees The Trustees of the charity during the year are as listed on page l. New trustees are appointed by a resolution of the existing Trustees, which is pa55ed at a Trustees, m&ting. The Trust Deed provides for a minimum of three and a maxlmum of eight indivlduals or a sole corporate trustee. Trustees a recrulted from the family and frlends of Eric Kinder In order to maintsin the ethos of the Trust. They are provided with training In charity law and trustees, obllgations. Organisational structure The Trust was created by a Trust Deed dated 2 June 2010 made by Erlc Kinder, Katharine Margat Allen, Chrlstopher William Kinder and Malcolm Harris. It was the intention of Eric Kinder to establlsh a charitable trust which had an endowment from whlch meaningful amounts of Income could be used for charitable purposes. In the perlod 2June 2010 to 30 June 2017 the late Eric Kinder and hfs estate gifted a total of £2,032,162 to the Trust. The Trust Is reglstered with the Charity Commission (no 1136528). The Trust was establlshed to make funds available for charitable purposes. The Trustees must use the investment Income and may use the capitsl of the Trust In promoting the objects. The Trustees meet on a gUlar ba51S to revSew, make grants and are In constant communlcation on Trust matters throughout the year. Rlsk assessment The Trustees have examlned the maJor strategic, business and operatlonal rlsks whlch the Trust fa$ and confimi that systems have been established to enable regular reports to be produced, as required, to enable steps to be taken to lessen those risks. The Trustees are satisfied that the systems now in platt are appropriate to the size and nature of the Trust and the limited scale and scope of its operations. Objectives and artivlties It has been the intention of the Trust to have a prlmary focus cn supporting young people In developlng careers in music and 5LlPPOrting Alzheimer's disease, care & research, and cancer care & research. The trustees have focused their activlties on the North West of England. Grants are made at the discretion of the Trustees, Page 2
THE ERIC AND MARGARET KINDER CHARITABLE TRusr TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30JUNE 2024 Public benefit The trustees conflrm that they have referred to the guidance contained in the Charity Commlssion's general guidan on public benefit when revlewing the Charity's aims and objectives and in planning future activities and settlng the grant making policy for the year. Details of how the charity has carried out ivs grant making activltles for the publlc benefit are given In the achievements and perfomiance sectlon of this report. Achievements and performance Investment reports are provlded by GAM on a three monthly basis. The Trustees review the perfomance flgures provided by GAM against their investment objectives of attaining long term capital appreciation over the full investment cyde, typically five years, with a tsrget volatility of 60 % . 80Q/o of World Equlty markets, on a three monthly basis. This is the thirteenth year that the Charity has made awards although some of these are commitments through to 2026. The awards to-date total £1,575,200 (£1,535,200 at 30 June 2023) and are broken down to the support of young people in developlng careers in music 51.830/0 (50.580h at 30 June 2023) and medical research & the Interaction of therapy created by music 48. 170/0 (49.42 % at 30 June 2023). The split of the awards is shown below and on page 4. Muslc First Award Date Total Awarded Cumulative New Awards slntr last accounts Sertor Whole Royal Llverpool Phllharmonic 31.08.11 285,000 34.911)/0 18.090/0 Royal Northem College of Music 04.01.11 338,000 41.400/0 21.450/0 Burnley Youth Theatre 11.10.17 145,000 40,000 17.760/0 9.210/0 Prlmary Robins 2015 17,000 2.080/0 1.08010 Olymplas Muslc Foundatlon 23.06.22 30,000 3.670/0 1,900/0 Awards for Young Musicians 15.06.18 1,500 0.180/0 O.IOO/o 816,500 40,000 iOO.OOO/o Page 3
THE ERIC AND MARGAREf KINDER CHARITABLE TRUST TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2024 Medlcal First Award Date Totsl Awarded Cumulative New Awards Sin last accounts Sector Whole Alzheimerfs Research UK 05.05.11 305,000 19.370/0 Alzheimer s Society 30.11.12 loo,000 13.18Wo 6.34 % Maggie Keswick Jenks Cancer Caring Cent$ Trust 11.040/0 27.02.15 173,700 22.890/0 Christle Hospital 2013 30,000 1.90 % Crossroads 2015 8,000 1.060/0 0.510/0 Derian House 18.04.17 10,000 1.320/0 0.630/0 Manchester Camerata 22.12.17 130,000 17.14 8,250/0 North West Alr Ambulan 14.02.20 2,000 0.260/0 0.130/0 758,700 100.OOO/o 1,575,200 40,000 iOO.OOO/o Music Medical researchltherapy 51.830/0 48.170/0 The Trustees have regular follow-up meetings with all of the major beneficiaries to revlew the effectiveness of the various programrnes supported by the Charity. Page 4
THE ERIC AND MARGARET KINDER CHARrrABLE TRUST TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2024 Flnanclal revlew Total income for the period under review amounted to £85,777 (2023: £24,155) whllst total expendlture amounted to £58,413 (2023., £164,124). As a result, net Income for the year before other galnsllosses amounted to £27,364 (2023: (£139,969)). Net galns on Investments amounted to £299,990 (2023: £105,021). Other recognlsed losses amounted to £1,293 (2023.. losses £86). In consequence the overall net inward movement in fvnds amounted to £326,961 (2023.. oUtard £35,034) and this has resulted in funds of £2,362,969 to carry foNard a5 at 30 June 2024 (2023: £2,036,908). Durlng the period under review, the Trust acquired investments costlng £515,423 (2023: £273,993) and realised investments totalling £580,044 (2023; £349,482). The market value of the Trust's remainlng investments amounted to £2,563,435 at 30 June 2023 {2023: £2,345,107). The trustees aim to keep a level of liquidity withln the Trust's assets and year on year will donate the surpluses of the Trust. The incomelprofits produclng investments are maintsined to generate future surpluses. The prlnapal source of fundlng for the Trust has been the Settlor, Erlc Kinder deceased. The donatlons supported the key objeciives of the Charlty by enabllng the fru5tees to purchase Investments that will generate capltal growth and income which can then be used for grant making purposes. Reserves pollcy The intention of the Trustees is to maintain the capltal value of the Trust and to make charitable donations whlch are broadly consistent with the income and capital aPprecation arlsing from the investments held by the Trust. In vlew of thi5 approach It is not felt necessary for any additional sums to be set as reserves. At 30 June 2024, the charity had no free reseryes (2023: £nil). The expendable endowment fund at 30 June 2024 amounted to £2,362,969 (2023: £2,036,908). Plans for future periods The Trust contlnues to look at opportunities to wlden the scope of its awards wlthin Its stated objectives and activities focus. The Trustees have also agreed to set aside up to £10,000 per annum to cover smaller awards and donations similar to Crossroads, Prlmary Robins and Awards for Young Musicians. Subject to investment returns belng maintslned at acceptable levels taking account of the risk profile agreed with the fund managers the trustees have a long term target of making overall annual awards in the range of £120,000 to £150,000. Golng concern After making appropriats enquiries, the Trustees have a reasonable expettation that the charity ha5 adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basls in preparing the financial statements. Further details regardlng the adoption of the going concern basis can be found in the Accountlng Policies. Page 5
THE ERIC AND MARGAREf KINDER CHARITABLE TRUST TRusfEES' ANNUAL REPORT FOR THE YEAR ENDED 30JUNE 2024 Trustees, responslbHStles statement The trustees are responsible for preparlng the Tnjstees, Annual Rep)rt and the finanoal statements In accord9n with appllcable law and United ngdoM Accountlng StafKlards (Llnlted Kingdom Generally Accepted Accoundng Pract[). The law appllcable to tharitles In Enqland & Wales requires the trustee5 to prepare financlal statements for each financlal period whlth glve a true and falr view of the state of affalrs of the tharfty and of the Incomlng resources and applICaOn of resour of the charity for that year. In preparing these financial 5tatewEnts, the trustees are requlred to: select sultsble accounting pole5 and then apply them conslstently; obsetve the methods and prlnclple5 In the Charltles SORP 2019 (FRS 102) make j}gements and estlmatss that a reasonable and prudent. stste whether appllcable accountrng standard5 have been followed, subject to any materlal departures dlsdosed and explalned in the finandal ststements; prepare the flnandal statements on the goir4J concern basls unless It Is inappropriate to presume that the charity wlll conynue in operab'on. The trustees are responsible for keeplng proper accountsng records that dlsclose wlth reasonable accuracy at any time the flnanclal posltlon of the charftsble company and enable them to ensure that the financlal ststements comply wlth the Charitles Act 2011, the Charlty (Accounts and Reports) Regulatlons 2008 and the provlsEons of the irust deed. They are also responsble for safeguardlng the assets of Its charitable company and hence for taking asonable step5 for the prevention and detethon of fratKJ and other Irregularltles. Approved by the Trustets o and slgfRd on thelr behalf by.. C W Klnder Trustee P8ge 6
THE ERIC AND MARGARET KINDER CHARITABLE TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES Independent examlner's report to the trustees of The Erlc and Maryaret Klnder Charitable Trust (-the Charltf) I report to the chaklty trustees on my examination of the accounts of the charty for the year ended 30 June 2024 which are set out on pages 8 to 16. Responslbilltles and basls of report As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charitles Act 2011 Cthe Acfj. I report in respert of my examinatlon of the charlty's accounts carried out under section 145 of the Act and irn carrying out my exarninatlon I have followed all the applicable Dirertors given by the Charity Commission under section 145(5)(b) of the Act. Independent examiner'5 Statement Your attention is drawn to the fact that the tharity ha5 prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practi applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charitles,. Statement of Recommended Practlce Issued on l April 2005 which is referred to in the extant regulatlons but has been withdrawn. l understand that thls has been done in order for the accounts to provide a true and fair vlew In accordan with the Generally Accepted Accountjng Practi effective for repordng periods beginning on or after l January 2019. I have completed my examinatlon. I confirm that no material matters have come to my attention In connection wlth the examinatlon whlch glves me cause to belleve that in, any materlal respect: accounting records were not kept in respect of the charlty as required by section 130 of the Act; or the accounts did not accord with the accounting records. or the accounts do not comply with the applicable requlrements cOnrnIng the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair vlew, which is not a matter considered as part of an independent examination; or that there is further informatton needed for a proper understanding of the accounts. I have no concerns and have come across no other matters Sn connectlon wlth the examlnation to which attention should be drawn In this report In order to enable a proper understanding of the accounts to be ached. R055 Jordan FCCA SMH Bullockwoodbum Norfolk House Hardwick Square North Buxton SL17 6PU Page 7
THE ERIC AND MARGARET KINDER CHARITABLE TRusr srATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 30 JUIVE 2024 Expendable Nots Unrestricted Endowment Funds Fund 2024 2024 Total 2024 Totsl 2023 Income and endowments from Investments 85,777 85,777 24,155 Total income and endowments 85,777 85,777 24,155 Expendlture on Ralslng funds.. Investment management fees 8,021 8,021 8,491 Charltable activltles 50,392 50,392 155,633 Total expenditure 50,392 8,021 58,413 164,124 Net gainl(loss) on investments 299,990 299,990 105,021 Net (expenditure)/ Income 35,385 291,969 327,354 (34,948) Transfers beeen funds 10 (35,385) 35,385 Other recognlsed losses Exchange rate gains/(losses) (1,293) (1,293) (86) Net movement In funds 326,061 326,061 (35,034) Reconcillatlon of funds Total Funds brought forward 2,036,908 2,036,908 2,071,942 2,362,969 2,362,969 2,036,908 Total Funds carrled forward All amounts derive from continulng actlvltles. All gains and losses recognlsed in the period are Induded in the Statement of Finanaal Activitles. Page 8
THE ERIC AND MARGAREf KINDER CHARrrABLE TRusr BALANCE SHEET ASAf30JUNE2024 Trtal 2024 Total 2023 Fixed assets Investhients 2,563,435 2,345,107 Detknrs Cash at bank a1 in hat 166 173 166 173 Credltors due wlthin one year (11032? (138,372) Net cwrent asséts1(IlabJlltles) (110,466) (138,199) Credltors due In more than one year (90,000) (170,000) 2,362,969 2,036,908 Funds Unrestrlded fuThls Expen(lable endowrnent fu1 2,362,969 2,036,9)8 2,362,969 2,036,908 The finandal statements on page5 8 to 16 We approvdl and authofised for [ue lry the Tntstees on 71nriSnd $19ned on their belkilf by: C W Kinder Trnstee
THE ERIC AND MARGAREf KINDER CHARrrABLE TRUST NOTES TO THE ACCOUNTS YEAR ENDED 30 JUNE 2024 ACCOUNTING POLICIES Basis of accountlng The financial ststements are prepared under the h15torical cost conventlon. The financial statements have been prepared in accordan with Statement of Recommended Practice on Accounting and Reporting by Charities (SORP 2019) published in October 2019, applicable accounting standards, Flnanaal Reporting Standard applicable in the UK and Republlc of Ireland (FRS 102). The finanaal statements are prepared in sterllng which is the functional currency of the charity and rounded to the nearest £. The Eric and Margaret Kinder Charitsble Trust meets the definltion of a public benefit entity under FRS 102. Assets and liabllities are inltially recognised at historical cost or transactlon value unless otheNlse stated in the relevant accounting policy. The significant accounting policies applied in the preparatlon of these financial statements are set out below. These polides have been consistently applied to all years presented unless otherwise ststed. The financlal statements have been prepared to give a 'true and fair, view and have departed from the Charitles (Accounts and Reports) Regulatlons 2008 only to the extent required to provide a 'true and fair vlew,. This departure has Involved followlng the Accounting and Reporting by Charities.. ststement of Recommended Pract1 applicable to charltles preparlng thelr accounts In accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practlce effectNe from I )rI1 2005 which has since been withdrawn. Fund Accountlng Unrestricted funds are those funds which are avallable for use at the discretlon of the trustees in furtheran of the general objectlves of the charity, and whlch have not been designated for other purposes. Expendable endowment fund The expendable endowment fund comprises the glfts from Erlc Klnder. Income from the endowment fund can be used in accordance wlth the objects of the charity and the capltal may be expended at the dlscretlon of the trustees. Income JI incoming resources are recognised once the charity has entitlement to the resouros, It is probable that the resources will be received and the monetary value of Incomlng resources can be measured with sufficient reliability. Page 10
THE ERIC AND MARGAREf KINDER CHARITABLE TRUST NOTES TO THE ACCOUNTS- CONTINUED YEAR ENDED 30 JUNE 2024 ACCOUNTING POLICIES - CONTINUED Expenditure Liabiltties are recognised as resources expended as soon as there is a legal or constructive obligatlon committlng the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headlngs that aggregate all costs related to the category. Grants payable are payments made to third parties in the furtherance of the charitable objectlves of the Trust. 51ngle or multl-year grants are accounted for when either the reclpient has a reasonable expectation that they will recelve a grant and the trustees have agreed to pay the grant without condition, or the redpient has a reasonable expectation that they wlll receive a grant and any condltion attaching to the grant is outside the control of the Trust. Irrecoverable VAT is charged against the category of OUrceS expended for which It was incurred. Fixed asset Investments Investments are stated at market value as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluatlon and disposals throughout the period. Debtors and credltors recelvable I payable withln one year Debtors and credltors with no stated Interest rate and receivable or payable wlthin one year are recorded at transaction price. Any losses arising from Impairment are recognlsed in expenditure. Derivatlves Derivative flnanclal Instruments are Initially measured at fair value at the date on whlch a derlvative contract is entered Into and are subsequently measured at fair value through proflt or loss. Gain and losses All gains and losses are tsken to the Statement of Finanaal Activities as they arise. Realised gains and losses on investments are calculated as the dIffen belmeen the sales proedS and opening market value (purchase date If later). Unrealised gains and losses are calculated as the difference between the market value at the period end and opening market value (or purchase date if later). Reallsed and unaliSed gains are not separated In the Statement of Financial Actlvities. Taxatlon The charity is considered to pass the tests set out in Sch. 6, para. l of the Finantr Act 2010 and therefore it meets the definition of a charity for UK income tax purposes. Accordingly, the charity is potentially exempt from taxatlon in respect of Income or capital gains recelved within categories covered by Income Tax Act 2007, Part 10 s521- s537 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such Income or galns are applied exclusively to charitsble purposes. Going Concem The financial statements have been prepared on a going conrn bas15 as the trustees belleve that no materlal uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authori5ing these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charlty to be able to continue as a going concern. Page 11
THE ERIC AND MARGAREf KINDER CHARITABLE TRUST NOTES TO THE ACCOUNTS- CONTINUED YEAR ENDED 30 JUNE 2024 2024 Total 2023 Total NEf EXPENDITURE Surplus for the period Is after charging:" Independent examinerfs fees 1,320 1,950 TRUSTEES. REMUNERATION AND BENEFITS No trustees, remuneratlon or other beneflts were paid during elther year. 2024 Total 2023 Total COSTS OF CHARITABLE ACTIVITIES Grants: Instltutions 40,000 145,000 Govemance costs (note 5) 10,392 10,633 50,392 155,633 Grants awarded to institutions Include grants to: Bumley Youth Theatre Royal Liverpool Philharmonlc Primary Robins Crossroads Royal Northem College of Music 40,000 80,000 2,500 2,500 60,000 40,000 145,000 2024 Total 2023 Total GOVERNANCE Accountancy & taxation fees Independent examiner's fees Legal fees 8,400 1,320 672 8,011 1,950 672 10,392 10,633 Page 12
THE ERIC AND MARGAREf KINDER CHARITABLE TRUST NOTES TO THE ACCOUNTS- CONTINUED YEAR ENDED 30 JUNE 2024 2024 Totsl 2023 Total INVEsfMENTS Market value at l July 2023 Additions at cost Disposals - proceeds Gain on disposals Gainl (loss) on revaluatlon during the year 2,285,670 515,423 (580,044) 84,886 215,104 2,256,138 273,993 (349,82) 33,599 71,422 Market value at 30 June 2024 Cash held as investment 2,521,039 42,396 2,285,670 49,437 Total investsnents at 30 June 2024 2,563,435 2,345,107 2024 Totsl 2023 Total DEBTORS DUE wrrHIN ONE YEAR Share dealing debtors 2024 Total 2023 Total CREDITORS DUE wrrHIN ONE YEAR Grant commltments Accruals and deferred Income 100,000 10,632 127,500 10,872 110,632 138,372 2024 Total 2023 Total CREDThORS DUE IN MORE THAN ONE YEAR Grant commltments 90,000 170,000 io. TRANSFERS A transfer has been made from the expendable endowment fund to cover the deficit on the unrestricted fund In accordance with the provislons of the trust deed. Page 13
THE ERIC AND MARGARET KINDER CHARrrABLE TRUST NOTES TO THE ACCOUNTS - CONTINUED YEAR ENDED 30 JUNE 2024 ii. RELATED PARTY TRANSAclloNS There has been no related party transactions to disdose. 12. LEGACY Erlc Kinder, a trustee of trhe charity, died on 30 August 2011. The Trustees agre& with the Estate Admlnistrators the final sum of the legacy which was fully reported in the 2017 accounts. Page 14
THE ERIC AND MARGAREf KINDER CHARITABLE TRUST NOTES TO THE ACCOUNTS - CONTINUED YEAR ENDED 30 JUNE 2024 13. STATEMENT OF FUNDS FUNDS- cuRREr YEAR l July 2023 Income Expenditure Transfers Gainsl 30 Juna Losses 2024 Unrestricted funds 85,777 (50,392) (35,385) Expendable Endowment fund 2,036,908 (8,021) 35,385 298,697 2,362,969 Total funds 2,036,908 85,777 (58,413) 298,697 2,362,969 FUNDS- PRIOR YEAR l July 2022 Income Expendlture Transfers Galnsl 30 June Losses 2023 Unrestrirted funds 24,155 (155,633) 131,478 Expendable Endowment fund 2,071,942 (8,577) (131,478) 105,021 2,036,908 Total ftjnds 2,071,942 24,155 (164,210) 105,021 2,036,908 14. ANALYSIS OF NET ASSETS BEfwEEN FUNDS Current year Unrestricted funds 2024 Endowment funds 2024 Total 2024 Investments Cash and current Investments Other current assets I liabilities Liabilities due in more than one year 2,563,435 2,563,435 166 166 (110,632) (110,632} (90,000) (90,000) Total 2 362 969 2 362 969 Page 15
THE ERIC AND MARGAREf KINDER CHARITABLE TRUST NOTES TO THE ACCOUNTS- CONTINUED YEAR ENDED 30JUNE 2024 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS- CONTINUED Prior year Unrestrirted funds 2023 Endowment funds 2023 Total 2023 Investments Cash and current Investments Other current assets I liabilities Liabilities due In more than one year 2,345,107 2,345,107 173 173 (138,372) (138,372) (170,000) (170,000) Total 2 036 908 2 036 908 Page 16