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2021-09-30-accounts

Ref: T7552X / 073358

THE MASTER CHARITABLE TRUST

REPORT AND FINANCIAL STATEMENTS REGISTERED CHARITY NUMBER: 1139904

FOR THE YEAR ENDED 30th SEPTEMBER 2021

Messrs. Hoare Trustees

37 Fleet Street

London EC4P 4DQ

THE MASTER CHARITABLE TRUST CONTENTS

Page
Trustee's Annual Report 1 - 4
Independent Auditor's Report 5 - 7
Statement of Financial Activities 8
Balance Sheet 9
Cash Flow Statement 10
Notes to the Financial Statements 11 - 18

THE MASTER CHARITABLE TRUST TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 30th SEPTEMBER 2021

Reference and administrative information

Dates of Deeds Declaration of Trust - 23rd December 2009
Deed of Amendment - 5th January 2011
Trustee Messrs. Hoare Trustees
Directors of Messrs. Hoare Trustees A S Hoare
V E Hoare
S M Hoare
B S Hoare
A R Q Hoare
R R Hoare (appointed 10 May 2022)
N I Macpherson (resigned 10 May 2022)
A new Trustee or director may be appointed at any time and notwithstanding
that the total number of Trustees may exceed four.
Training is provided to the Trustee(s) on an on going basis.
Nature of Trust A registered charity, registered with the Charity Commissioners for England
and Wales as number 1139904.
Nicholas Messrs. Hoare Trustees
37 Fleet Street
London
EC4P 4DQ
Independent Auditors Moore Kingston Smith LLP
9 Appold Street
London
EC2A 2AP
Bankers C. Hoare & Co.
37 Fleet Street
London
EC4P 4DQ
Solicitors Bates Wells LLP
10 Queen Street Place
London
EC4R 1BE

Page 1

THE MASTER CHARITABLE TRUST TRUSTEE'S ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

Report of the Trustee for the year ended 30th September 2021.

The Trustee of the Master Charitable Trust (the Charity) presents its report along with the financial statements of the charity for the year to 30th September 2021. The financial statements have been prepared in accordance with the accounting policies set out on page 11 and 12 and comply with the charity's Trust Deed, the Charities Act 2011 and the requirements of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in July 2014.

Structure, Governance and Management

The Charity's registration number is 1139904. The principal and registered address is 37 Fleet Street, London EC4P 4DQ. The Charity is governed by a Declaration of Trust dated 23rd December 2009 (as amended by Deed on 5th January 2011). The Trustee, who is stated on page 1, is responsible for the management of the Charity.

The Charity's finances encompass the General Endowment Fund and individual Giving Funds. The Giving Funds comprise a capital account, an income account and a Giving Account. The capital accounts are treated as expendable endowments under the Charities SORP, and all the Funds are unrestricted under the terms of the Trust Deed.

Donors have the ability to name their own Giving Fund subject to the Trustee's approval. Donors can make an initial lump sum contribution through cash, shares or other assets and replenish their Giving Fund when they wish. Donors will receive a charity "cheque book" in the name of the Giving Fund and Donors can choose to invest the funds in a professionally managed portfolio in order to grow their fund.

Objectives and Activities

The Declaration of Trust directs that the capital (expendable endowment) and income of the Charity is to be held on trust for the benefit of such exclusively charitable objects and purposes in any part of the world as the Trustee may in its absolute discretion think fit.

The Charity provides a simple and cost effective way for donors to manage their charitable donations retaining the ability to direct the investment strategy or appoint an investment manager. The in-built flexibility and the way in which the Bank's Philanthropy and Giving service is supporting customers throughout the process makes it easier for customers to be more philanthropic.

Many donors are attracted by the fact the Charity can be used to create an enduring legacy and appoint a successor.

Fundraising

Due to the Coronavirus pandemic, no fundraising activities were undertaken during the year ending 30th September 2021 (2020; nil) As no fund raising was undertaken, no complaints were received in the year regarding fund-raising practices.

Grant making policy

A wide variety of UK charitable causes have been supported. The policy is to make grants to UK registered charities or for charitable purposes in any part of the world as approved by the Trustee.

As required by the Charities Act 2011, the Trustee has referred to the Charity Commission's general guidance on public benefit when formulating the grant making policy. In particular, the Trustee has considered how grants can be made to ensure maximum benefit flows through to the intended ultimate beneficiaries. The grants benefit a number of public causes, as detailed in note 4. In shaping objectives and planning activities for the year, the trustee has considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'.

Achievements and Performance

Our donors have continued in their generosity in the past year, with donations totalling £58,183,436 to 1,125 different charities (2020; £43,533,342 to 627). Around a quarter of these donatons have been given to educational causes. This year we saw 8 donations over £1m, an increase on 5 in the previous year. We continue to provide a uniquely flexible service for our donors, supporting a wide variety of charities and projects. The Master Charitable Trust still sits at one tenth of the UK Donor Advised Fund market and we hope to continue to support our donors in having a positive impact in years to come.

Financial Review

The Trustee received donations during the year of £87,103,685 (2020; £86,745,231) which includes £4,517,914 of Gift Aid claims (2020; £5,239,012), and established a further 16 Giving Funds which between them donated new expendable endowments totalling £10,545,654 bringing the number of Giving Funds to 104 at the year end. The net inflow of funds after recognised gains and losses amounted to £55,437,569 (2020; £46,112,232). The financial statements for the year are set out on pages 8 to 18.

Page 2

THE MASTER CHARITABLE TRUST TRUSTEE'S ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

Risk Management

Messrs. Hoare Trustees is responsible for the oversight of the risks faced by the Charity. Messrs. Hoare Trustees regularly review the risk position, internal controls assessment and compliance with relevant statutory and finance regulations.

The Charity has a risk-management process designed to identify the major risks that could impact the Charity.

This process identifies the major risks the Charity faces, the likelihood of occurrence, the significance of the risk, and any mitigating controls that are in place. It also seeks to identify any actions and resources required to mange these risks further.

The Charity's investment activities are its main financial risk. This risk is managed, with the support of investment advisers, through: regular review of the investment policy; management of strategic asset allocation; risk measurement and reporting; independent valuation and performance reporting; diversification across a broad range of asset classes, geographies, investment managers and investment strategies.

To mitigate the possibility of any inappropriate donation being made, the Trustee undertakes certain due diligence on each benefitting charity to ensure that it is either a UK registered charity with the Charity Commission, an exempt charitable body (church or school etc) or a charity limited by guarantee. Where a donation is to be made to a foreign body or individual, more extensive due diligence is undertaken in accordance with HMRC guidelines.

Investment Policy and Performance

Under the terms of Clause 22 of the Trust Deed the Trustee is able to apply any money to be invested in the purchase of or at interest upon the security of such shares, stocks, funds, securities, land, buildings, chattels or other investments or property of whatever nature and wherever situate and whether involving liabilities or producing income or not, as it sees fit. For the avoidance of doubt, the Trustee may for investment purposes, pool all the property held by them under the terms of this Deed.

The Trustee has a policy statement in place for each of the Giving funds which is invested in line with the criteria and may differ for each fund. Performance is measured in accordance with the risk profile of each Trust Fund.

A donor may approach the Trustee with a suggestion of investing in a social investment project. Certain due diligence would then be carried out and the findings presented to the donor and Trustee. Once the donor and Messrs. Hoare Trustees are satisfied with the due diligence report both parties sign the report and the investment may proceed.

Reserves Policy

According to the Charity Commissioners guidance update in their Statement of Recommended Practice: "Accounting and Reporting by Charities" revised in July 2014, the Trust's expendable endowment is not considered part of the charity's free reserves. However, this endowment is a considerable sum, and the capital can be used at the discretion of the Trustee to fund any deficit on expenditure. It is therefore the view of the Trustee that the Trust does not need to hold any additional money in reserve.

Future Plans

In the medium to long term, the Trustee intends to increase the level of charitable donations by promoting increased participation and increasing the number of Giving funds. The Trustee is mindful of the potential impact that Covid-19 may have on the growth of the trust in terms of new Giving funds being established as well as the possible fall of investment value and income.

Page: 3

THE MASTER CHARITABLE TRUST TRUSTEE'S ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

Statement of Trustee's responsibilities

The Trustee is responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires the Trustee to prepare financial statements for each financial period that give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the Trustee is required to:

The Trustee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011.

The Trustee is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Jul 27, 2022

Approved by the Trustee on:.................................................. Date

and signed on its behalf by:...................................................................... Director

.......................................................................... Director

Page: 4

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF THE MASTER CHARITABLE TRUST FOR THE YEAR ENDED 30th SEPTEMBER 2021

Opinion

We have audited the financial statements of The Master Charitable Trust for the year ended 30 September 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 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 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.

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 trustee is 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 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Page: 5

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF THE MASTER CHARITABLE TRUST (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

Responsibilities of trustee

As explained more fully in the trustee’s responsibilities statement set out on page 4, the trustee is 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 trustee determines 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 trustee is 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 trustee either intends 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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Page: 6

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF THE MASTER CHARITABLE TRUST (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charity's trustee, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustee 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 any party other than the charity and charity's trustee as a body, for our audit work, for this report, or for the opinion we have formed.

Moore Kingston Smith LLP Statutory auditor 9 Appold Street London EC2A 2AP

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

Page: 7

THE MASTER CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30th SEPTEMBER 2021

Notes
Income and Expenditure
INCOME AND ENDOWMENTS FROM:
Donations and legacies:-
Endowments received
2
Investment income
3
TOTAL INCOME
EXPENDITURE ON:
Cost of raising funds
Investment management costs
6
Charitable activities
4
TOTAL EXPENDITURE
NET OPERATING INCOME/(EXPENDITURE)
OTHER RECOGNISED GAINS/(LOSSES)
Gains on Investments
8&9
Realised (loss) adjustment
Losses on currency transactions
NET INCOME/(EXPENDITURE)
Gross transfer between Funds
13
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
14
BALANCES CARRIED FORWARD
14		 General
Total
Endowment
Expendable
Funds
Fund
Income
Endowment
2021
£
£
£
£
65,072
-
87,038,613
87,103,685
-
1,488,148
-
1,488,148
--------Giving Funds--------
-------------Unrestricted Funds-------------		 General
Total
Endowment
Expendable
Funds
Fund
Income
Endowment
2020
£
1,100
-
86,744,131
86,745,231
-
1,154,712
-
1,154,712
-------------Unrestricted Funds-------------
--------Giving Funds--------
65,072
1,488,148
87,038,613
88,591,833		 1,100
1,154,712
86,744,131
87,899,943
1,493
-
291,684
293,177
-
58,748,993
-
58,748,993		 2,155
-
178,340
180,495
-
44,031,296
-
44,031,296
1,493
58,748,993
291,684
59,042,170		 2,155
44,031,296
178,340
44,211,791
63,579
(57,260,845)
86,746,929
29,549,663
16,155
-
26,314,831
26,330,986
-
-
(6)
(6)
-
-
(443,074)
(443,074)		 (1,055)
(42,876,584)
86,565,791
43,688,152
12,972
-
2,450,144
2,463,116
-
-
(1,271)
(1,271)
-
-
(37,765)
(37,765)
79,734
(57,260,845)
112,618,680
55,437,569
(64,410)
57,265,945
(57,201,535)
-		 11,917
(42,876,584)
88,976,899
46,112,232
(4,522)
42,904,005
(42,899,483)
-
15,324
5,100
55,417,145
55,437,569
379,304
187,469
180,754,946
181,321,719		 7,395
27,421
46,077,416
46,112,232
371,909
160,048
134,677,530
135,209,487
394,628
192,569
236,172,091
236,759,288		 379,304
187,469
180,754,946
181,321,719

All amounts relate to continuing activities. All recognised gains and losses are included in the Statement of Financial Activities.

Page: 8

THE MASTER CHARITABLE TRUST BALANCE SHEET AS AT 30th SEPTEMBER 2021

Notes
FIXED ASSETS
Listed Investments
8
Unlisted Investments
8
Programme Related Investments
9
Tangible fixed assets
10
CURRENT ASSETS
Cash at Bank
Sundry Debtors
11
CURRENT LIABILITIES
Creditors - falling due within one year
12
NET CURRENT ASSETS
Total assets plus current assets
NET ASSETS
UNRESTRICTED FUNDS
General Endowment Fund
14
Giving Funds
Expendable Endowment
14
Income Funds
14		 2021
£
138,372,354
868,795
238,298
17,675
139,497,122
96,423,258
2,906,365
99,329,623
2,067,457
97,262,166
236,759,288
236,759,288
394,628
236,172,091
192,569
236,759,288		 2020
£
83,726,504
1,287,307
238,298
20,200
85,272,309
96,107,990
210,446
96,318,436
269,026
96,049,410
181,321,719
181,321,719
379,304
180,754,946
187,469
181,321,719

Approved by the Trustee and authorised for issue on:

and signed on its behalf by:

Jul 27, 2022

.............................................................................. Date

.............................................................................. Director

.............................................................................. Director

Page: 9

THE MASTER CHARITABLE TRUST CASH FLOW STATEMENT FOR THE YEAR ENDED 30th SEPTEMBER 2021

Cash flows from operating activities
Net cash provided by operating activities
Cash flows from investing activities
Dividends and interest from investments
Proceeds from sale of fixed asset investments
Proceeds from sale of programme related investments
Purchase of fixed asset investments
Purchase of programme related investments
Net cash (used in) investing activities
Cash flows from investing activities
New loan
Net cash (used in) investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Net debt
At start of year
Cash and cash equivalents
96,107,990
Loan
-
Net debt
96,107,990		 Notes
15
3
8
9
8
9
Cash flows
315,268
(1,550,000)
(1,234,732)		 2021
£
14,961,090
1,488,148
41,630,514
679
(59,315,162)
-
(16,195,822)
1,550,000
1,550,000
315,268
96,107,990
96,423,258
Other
movements
-
-
-		 2020
£
15,252,898
1,154,712
49,253,821
10,000
(42,603,099)
(78,242)
7,737,191
-
-
22,990,089
73,117,901
96,107,990
At end of year
96,423,258
(1,550,000)
94,873,258

The notes on pages 11 to 18 form part of these financial statements.

Page: 10

THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th SEPTEMBER 2021

1 ACCOUNTING POLICIES

(a) Basis of Preparation

These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value through income and expenditure within the Statement of Financial Activities.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charity is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP) and the Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

(b) Fund Structure

The General Endowment Fund is a fund which the Trustee is free to use in accordance with the charitable objects.

Giving Funds comprise those funds that Donors have donated to their Giving Fund. Whilst these funds are technically unrestricted, donors are able to request Messrs. Hoare Trustees to make payments and understand that these are not legally binding instructions. Within the Giving Funds, the expendable endowment represents those assets which are held for the longer term of the Trust, in accordance with the terms of the Declaration of Trust.

Income arising within the General Endowment Fund and Giving Funds can be used in accordance with the objects of the Trust as well as the expendable endowment, which can be spent in certain circumstances in fulfilment of the Trust's objects.

Any capital gains or losses arising on the investments held in the Expendable Endowment Fund form part of that Fund.

(c) Income

All income is recognised in the Statement of Financial Activities (SOFA) when the conditions for receipt have been met, the amount is measurable and receipt is probable. Where a claim for repayment of income tax has been or will be made, such income is grossed up for the tax recoverable. The following accounting policies are applied to different categories of income:

Grants and Donations Receivable

Grants and Donations are recognised in the SOFA when conditions for receipt have been complied with.

Investment Income

Interest receivable on deposit and securities is accounted for as it accrues. Dividend income receivable on securities is accounted for when received by the investment manager.

(d) Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The following accounting policies are applied to the different categories of expenditure:

Costs of Raising Funds

The costs of raising funds consist of investment management and certain legal fees.

Charitable Activities

Donations payable are recognised when they are approved by the trustees and the recipient of the grant has been informed of the amount to be paid.

Governance Costs

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit fees together with support costs.

Page: 11

THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th SEPTEMBER 2021

1 ACCOUNTING POLICIES (Continued)

(e) Tangible Fixed Assets

Tangible fixed assets costing more than £100 are capitalised and depreciated over their useful lives and shown in the balance sheet at cost less accumulated depreciation. Depreciation has been calculated at the rate of 10% of original cost, per year.

(f) Investments

Investments are stated at market value at the Balance Sheet date. The SOFA includes the net gains and losses on revaluation and disposals throughout the year.

(g) Realised and Unrealised Gains and Losses

All gains and losses are taken to the SOFA as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).

(h) Going concern

The Trustee has assessed whether the use of the going concern basis is appropriate and has considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustee has made this assessment for a period of at least one year from the date of approval of the financial statements and has considered the potential impact of the Covid-19 pandemic. In particular the Trustee has taken account of investment income pressures and the likely impact of the pandemic on investment values, as well as expenditure. The Trustee has the flexibility to draw down on the expendable endowment fund if required to support grant expenditure. After making enquiries the Trustee has concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

(i) Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income (which are not financial investments), all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 11 and 12 for the debtor and creditor notes.

(j) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investment with original maturities of three months or less.

(k) Key Estimates and Judgements

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements.

In the view of the Trustee in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

2 ENDOWMENTS RECEIVED

Cash:
Donations received in year
Gift Aid reclaimable
Investments:
Transferred into Trust at Market Value		 2021
£
72,373,388
4,517,914
10,212,383
87,103,685		 2020
£
53,651,393
5,239,012
27,854,826
86,745,231

Page: 12

THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

3 INVESTMENT INCOME

INVESTMENT INCOME
Investment income
Interest on cash deposits
Interest on loan notes
Income cash currency gain/(loss)		 2021
£
1,231,089
2,413
252,255
2,391
1,488,148		 2020
£
800,821
116,176
238,022
(307)
1,154,712

4 CHARITABLE ACTIVITIES

The charity undertook no direct charitable activities but awarded donations to a number of institutions in furtherance of its charitable activities.

Grants made during the year
Previous years donation adjustments - Over provision of previous year
Support costs (see note 6)
The total comprised grants to the following:
The prevention or relief of poverty
The advancement of education
The advancement of religion
The advancement of health or the saving of lives
The advancement of citizenship or community development
The advancement of the arts, culture, heritage or science
The advancement of amateur sport
The advancement of human rights, conflict resolution or reconciliation or the
promotion of religious or racial harmony or equality and diversity
The advancement of environmental protection or improvement
The relief of those in need, by reason of youth, age, ill-health, disability,
financial hardship or other disadvantage
The advancement of animal welfare
The promotion of the efficiency of the armed forces of the Crown, or of the
efficiency of the police, fire and rescue services or ambulance services
Any other charitable purpose		 2021
£
58,183,436
-
565,557
58,748,993
4,774,552
13,695,443
487,760
10,141,625
10,690,567
9,955,351
450,057
131,321
1,006,892
4,636,572
318,594
124,820
1,769,882
58,183,436		 2020
£
43,533,342
(2,284)
500,238
44,031,296
3,779,801
5,993,814
813,853
15,778,193
1,775,869
4,744,601
108,940
51,030
787,987
3,975,834
473,072
218,545
5,031,803
43,533,342

Page: 13

THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

4 CHARITABLE ACTIVITIES (continued)

Institutional Donations of £250,000 and over
Action on Addiction
Bradfield Foundation
British Film Institute
Canine Partners For Independence
Clink Charity
Down's Syndrome Association
Federation of London Youth Clubs
Forward Trust
Governors For Schools
Greenhouse Sports
Helpforce Community Trust
Institute for Cancer Vaccines and Immunotherapy
International Spinal Research Trust
Kindred Squared
Mail Force Charity CIO
Mayor's Fund for London
National Gallery Trust
National Portrait Gallery
One Small Thing
Passage 2000
Prince's Trust
Rock UK Adventure Centres
Roundhouse Trust
Royal Academy of Arts
Royal National Theatre
Royal Opera House Covent Garden Foundation
Sheerness Dockyard Preservation Trust
Stowe School Foundation
Strategic Resource Group Inc.
Substance Abuse Foundation
The Big Give Trust
UK Youth
Young Minds Trust
Total grants of £250,000 or over		 2021
£
287,103
250,000
353,000
310,000
2,000,000
250,000
267,000
1,120,676
433,083
330,000
250,000
400,000
320,000
698,846
500,000
250,000
753,209
1,000,000
458,500
2,001,000
2,426,242
255,343
428,155
2,503,000
263,712
2,662,700
500,000
350,000
700,000
729,328
326,000
1,892,900
250,000
25,519,797

Page: 14

THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

5 RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS
Donations received from a Director of the Trustee
The Golden Bottle Trust (Charity Commission no. 327026)
Donations received from other charities where
Messrs. Hoare Trustees is a Trustee:		 2021
£
50,000
41,000
91,000		 2020
£
45,000
108,000
153,000

A S Hoare, a director of the trustee, is also the Chair of the Board of Directors of Snowball Impact Investments LP. At the year-end the Trust had an investment in Snowball Impact Investments LP worth £516,768 (2020: £nil)

6 ANALYSIS OF SUPPORT COSTS

Bank charges
Cost of printing voucher books
Depreciation of tangible fixed asset
Legal fees
Rausing's office + Simon Fourmy's contract
Administration(includes old staff costs)
GOVERNANCE COSTS
Trustee Administration Fee (including VAT)
Independent Auditor's Remuneration
(Over)/Under provision of previous years audit fee
INVESTMENT RELATED FEES
Investment Management fees
Custody Fees
Enhance Investment Review Fees		 2021
£
757
2,532
2,525
26,123
28,360
482,415
25,500
(2,655)
565,557
283,343
8,334
1,500
293,177		 2020
£
322
5,988
2,525
50,046
58,626
359,676
23,055
-
500,238
156,499
22,646
1,350
180,495

7 REMUNERATION OF TRUSTEE

For the year ended 30th September 2021, the Trustee charged £477,015 (2020: £359,676) for their administrative fees in accordance with the power given to them by virtue of clause 28.3 of the Declaration of Trust. In addition, £5,400 (2020: Nil) was paid towards Trustees' due diligence fees. No out of pocket expenses were reimbursed by the Charity.

Page: 15

THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

8 FIXED ASSET INVESTMENTS

Movement in fixed asset investments
Investments
Market Value Brought Forward
Investments gifted in
Add:
Acquisition costs
Less:
Disposal proceeds
Realised (losses)/gains on disposals
Unrealised gains:
Market Value Carried Forward
Historical cost as at 30th September 2021		 Listed
Unlisted
£
£
83,726,504
1,287,307
10,212,383
-
59,303,816
11,346
(39,619,989)
(2,010,525)
6,349,962
1,108,209
18,399,678
472,458
138,372,354
868,795
114,266,903
47,570		 Total
2021
£
85,013,811
10,212,383
59,315,162
(41,630,514)
7,458,171
18,872,136
139,241,149
114,314,473		 2020
£
61,867,522
27,333,911
42,603,099
(49,253,821)
(1,476,629)
3,939,729
85,013,811
76,402,893

The market value of investments to 30th September 2021 includes an investment of unlisted shares in Beagle Bidco Limited, totalling £868,795 that was acquired on the 9th Decemebr 2020.

9 PROGRAMME RELATED INVESTMENTS

Movement in programme related investments

Unlisted programme related investments
Value brought forward
Programme related investments Acquired:
813 Herddle Group Limited
Programme related investments Redeemed:
Mustard Seed Maze equalisation payment
100 London Missional Housing Bond
Gain on investments
Value Carried Forward
Historical cost as at 30th September 2021		 2021
£
238,298
-
(679)
-
679
238,298
238,469		 2020
£
170,040
78,242
-
(10,000)
16
238,298
238,469

All of the programme related investments were held in the United Kingdom and are unlisted. They have therefore been valued at par.

The Herddle Group Limited strives for cost efficient, socially responsible, fully intergrated, data driven property management. For responsible owner, residents and communities.

Unlisted programme related investments held
40,000 Adoption UK Charity 5% Fixed Rate Unsecured Loan Notes 2021
25,000 CW Renewable Energy EIS Fund
1 EcoPower Indian Ocean Ltd
813 Herddle Group Limited
10,000 Mission Housing Limited 1.25% Loan 30/11/2024
50,000 Mustard Seed Maze Social Entrepreneurship Fund
33.33333 Oikocredit GBP Depository Receipts
39 Relational Analytics Ordinary £1 Shares
14,961 Relational Analytics Preference Shares of £1
25,000 Relational Analytics Subordinated Loan Notes		 2021
£
40,000
25,000
23,165
50,040
10,623
44,470
5,000
39
14,961
25,000
238,298		 2020
£
40,000
25,000
23,165
50,040
10,623
44,470
5,000
39
14,961
25,000
238,298

Page: 16

THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

10 TANGIBLE FIXED ASSETS

Cost
At 1st October 2020
Additions
At 30th September 2021
Depreciation
At 1st October 2020
Charge for year
At 30th September 2021
Net book value
At 30th September 2021
At 30th September 2020
11 DEBTORS
Cash due from donors
Gift Aid tax reclaim
Investment income/interest due
Recoverable tax on investment income
Donations to be repaid/to be received
Loan to Herddle Limited
Other Debtors and prepayments
12 CREDITORS
Due within one year
Loan
Trustee Administration Fees
Independent Auditor's Remuneration
Investment Management Fees
Custody fees
Other creditors		 Motor vehicles
Totals
£
£
25,250
25,250
-
-
25,250
25,250
5,050
5,050
2,525
2,525
7,575
7,575
17,675
17,675
20,200
20,200
2021
2020
£
£
400
-
1,293,524
62,688
66
1,186
64,612
64,131
30,000
25,000
5,000
5,000
1,512,763
52,441
2,906,365
210,446
2021
2020
£
£
1,550,000
-
357,216
102,620
48,555
40,305
59,767
43,259
8,782
5,581
43,137
77,261
2,067,457
269,026
2021		 Motor vehicles
Totals
£
£
25,250
25,250
-
-
25,250
25,250
5,050
5,050
2,525
2,525
7,575
7,575
17,675
17,675
20,200
20,200
2021
2020
£
£
400
-
1,293,524
62,688
66
1,186
64,612
64,131
30,000
25,000
5,000
5,000
1,512,763
52,441
2,906,365
210,446
2021
2020
£
£
1,550,000
-
357,216
102,620
48,555
40,305
59,767
43,259
8,782
5,581
43,137
77,261
2,067,457
269,026
2021
25,250 25,250
5,050
2,525		 5,050
2,525
7,575 7,575
17,675 17,675
20,200 20,200
2021
£
400
1,293,524
66
64,612
30,000
5,000
1,512,763		 2020
£
-
62,688
1,186
64,131
25,000
5,000
52,441
2,906,365 210,446
2021
£
1,550,000
357,216
48,555
59,767
8,782
43,137		 2020
£
-
102,620
40,305
43,259
5,581
77,261
2,067,457 269,026

The loan is repayable on demand and does not bear any interest.

13 FUND TRANSFERS

The Trustee made a transfer of £64,410 from the General Endowment Fund as well as a transfer of £57,201,535 from the Expendable Endowment Fund, totalling £57,265,945 to the Giving Fund in order to meet the level of donations as suggested by donors and in accordance with the terms under which the Giving Funds are operated.

Page: 17

THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2021

14 ANALYSIS OF NET ASSETS BETWEEN FUNDS

-------------Unrestricted Funds-------------

General
Endowment Expendable
Fund Income Endowment Total Funds
2021 2021 2021 2021
£ £ £
Fixed Assets
Listed Investments 349,145 - 138,023,209 138,372,354
Unlisted Investments - - 868,795 868,795
Programme Related Investments - - 238,298 238,298
Tangible fixed assets - - 17,675 17,675
Current Assets
Cash 47,022 192,569 96,183,667 96,423,258
Sundry Debtors - - 2,906,365 2,906,365
Creditors due within one year (1,539) - (2,065,918) (2,067,457)
Total 394,628 192,569 236,172,091 236,759,288
-------------Unrestricted Funds-------------
General
Endowment Expendable
Fund Income Endowment Total Funds
2020 2020 2020 2020
£ £ £ £
Fixed Assets
Listed Investments 350,727 - 83,375,777 83,726,504
Unlisted Investments - - 1,287,307 1,287,307
Programme Related Investments - - 238,298 238,298
Tangible fixed assets - - 20,200 20,200
Current Assets
Cash 29,917 187,469 95,890,604 96,107,990
Sundry Debtors - 210,446 210,446
Creditors due within one year (1,340) - (267,686) (269,026)
Total 379,304 187,469 180,754,946 181,321,719
**15 ** RECONCILIATION OF OPERATING SURPLUS TO NET CASH 2021 2020
INFLOW FROM OPERATING ACTIVITIES £ £
Net operating income 29,549,663 43,688,152
Investment income (1,488,148) (1,154,712)
Investments gifted (10,212,383) (27,333,911)
Gains on Currency transactions (443,080) (39,036)
Depreciation 2,525 2,525
(Increase)/decrease in Debtors (2,695,919) 411,507
Increase/(decrease) in Creditors 248,431 (321,628)
Net cash inflow from operating activities 14,961,090 15,252,898

Page: 18