## **THE MASTER CHARITABLE TRUST**
**REPORT AND FINANCIAL STATEMENTS** REGISTERED CHARITY NUMBER: 1139904
## **FOR THE YEAR ENDED 30th SEPTEMBER 2023**
Hoares Trustees Limited
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 2023**
## **Reference and administrative information**
|Dates of Deeds|Declaration of Trust - 23rd December 2009|
|---|---|
||Deed of Amendment - 5th January 2011|
|Trustee|Hoares Trustees Limited - (Appointed 28/02/2024)|
||(Messrs Hoare Trustees Limited retired 18/04/2024)|
|Directors of Hoare Trustees Limited|Mr A. S. Hoare|
||Mrs V. E. Hoare|
||Mr S. M. Hoare|
||Mrs B. S. Hoare|
||Mr A. R. Q. Hoare|
||Mr R. R. Hoare|
||Ms D. S. Brightmore-Armour (Appointed 06/12/2023)|
||Ms. A. F. Rodwell (Appointed 13/08/2024)|
||Ms. A. M. R. Little (Appointed 13/08/2024)|
||A new Trustee or director may be appointed at any time and notwithstanding|
||that the total number of Trustees may exceed four.|
|Nature of Trust|A registered charity, registered with the Charity Commissioners for England|
||and Wales as number 1139904.|
|Trustee(s)|Hoares Trustees Limited|
||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|Birketts LLP|
||Providence House|
||141-145 Princes Street|
||Ipswich|
||IP1 1QJ|
Page 1
## **THE MASTER CHARITABLE TRUST TRUSTEE'S ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2023**
## **Report of the Trustee for the year ended 30th September 2023.**
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 2023. 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 (SORP) 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 bank account which is 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 can 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 and input into the investment strategy or appoint an investment manager. The in-built flexibility and the way in which the Charity and the 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
No fundraising activities were undertaken during the year ending 30th September 2023 (2022: nil) and as such, 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 approving grants. 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 £74,360,775 to 1,429 different charities (2022: £45,335,450 to 759). This year we saw a quarter of these donations go towards education, closely followed by grants in support of the health or saving lives causes. 13 donations of £1m or over were made in the year benefiting 11 different charities. We continue to provide a flexible service for our donors, supporting a wide variety of charities and projects. Alongside growth in the UK DAF market, MCT has also grown, continuing to hold a significant proportion of the market share. 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 £108,454,998 (2022: £140,171,977) which includes £3,032,366 of Gift Aid claims (2022: £1,560,049), and established a further 18 Giving Funds which between them donated new expendable endowments totalling £1,650,901 bringing the number of Giving Funds to 146 at the year end. The net inflow of funds after recognised gains and losses amounted to £42,114,719 (2022: £76,311,728). 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 2023**
## Risk Management
Hoares Trustees Limited is responsible for the oversight of the risks faced by the Charity. Hoares Trustees Limited 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 reviews of investments; 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 due diligence on each beneficiary 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 or part of the property held by them under the terms of this Deed.
Performance is measured in accordance with the risk profile of each Giving Fund.
## Reserves Policy
According to the Charity Commission's 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 impact of charitable donations and investments by promoting increased giving and impact investing and increasing the number of Giving funds.
It was approved by the Charity Commission on 24th January 2024 to transfer the assets of The Golden Bottle Trust to The Master Charitable Trust. This was agreed to be in the best interest of the Charity and is expected to complete before the end of 2024. The assets transferred will form a new Giving fund and will operate as such in the future.
Page: 3
## **THE MASTER CHARITABLE TRUST TRUSTEE'S ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2023**
## **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:
- select suitable accounting policies and then apply them consistently;
- comply with applicable accounting standards, including FRS 102, subject to any material departures disclosed and explained in the financial statements;
- state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any material departures which are explained in the financial statements;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Charity will continue in business.
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.
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 2023**
## **Opinion**
We have audited the financial statements of The Master Charitable Trust for the year ended 30 September 2023 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:
- give a true and fair view of the state of the Charity�s affairs as at 30 September 2023, and of its incoming resources and
- application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor�s Responsibilities for the audit of 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 Trustee's 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:
- the information given in the Trustee�s Annual Report is inconsistent in any material respect with the financial statements; or � the Charity has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we required for our audit.
Page: 5
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF THE MASTER CHARITABLE TRUST (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2023**
## **Responsibilities of The 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:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and � perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a � basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting � from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in � the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the Charity�s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustee.
- Conclude on the appropriateness of the Trustee�s use of the going concern basis of accounting and, based on the audit � evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on � the Charity�s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw � attention in our auditor�s report to the related disclosures in the financial statements or, if such disclosures are inadequate, � to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor�s report. � However, future events or conditions may cause the Charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether � the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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 2023**
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the Charity and considered that the most significant are the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the Charity complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
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.
**James Cross (Senior statutory auditor) Moore Kingston Smith LLP**
30 September 2024 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
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## **THE MASTER CHARITABLE TRUST BALANCE SHEET AS AT 30th SEPTEMBER 2023**
|**Notes**
**FIXED ASSETS**
Listed Investments
8
Unlisted Investments
8
Programme Related Investments
9
Tangible fixed assets
10
Fixed bank deposits
**CURRENT ASSETS**
Cash at Bank
Debtors
11
**CURRENT LIABILITIES**
Creditors - falling due within one year
12
**NON-CURRENT LIABILITIES**
Creditors - falling due more than 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
Approved by the Trustee and authorised for issue on:
and signed on its behalf by:
..............................................................................
............................................
Date
Director
............................................
Director|**2023**
**£**
187,366,417
3,704,882
228,046
12,625
30,775,000
222,086,970
132,292,073
2,169,766
134,461,839
1,088,074
275,000
133,098,765
355,185,735
**355,185,735**
344,960
354,840,775
-
**355,185,735**
..................................
..................................|2022
£
159,867,653
949,689
228,198
15,150
-|
|---|---|---|
|||161,060,690
152,295,914
235,880|
|||152,531,794
521,468
-
152,010,326|
|||313,071,016|
|||313,071,016|
|||351,586
312,510,712
208,718|
|||313,071,016|
||||
Page: 9
## **THE MASTER CHARITABLE TRUST CASH FLOW STATEMENT FOR THE YEAR ENDED 30th SEPTEMBER 2023**
|**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
Purchase of fixed bank deposits
Redemption of programme related investments
Cost incurred on programme related investments capitalised
**Net cash used in investing activities**
**Cash flows from financing activities**
Movement on loan
**Net cash used in financing 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
152,495,914
Loan
(200,000)
**Net debt**
**152,295,914**|Notes
15
3
8
9
8
9
9
9
**Cash flows**
(19,988,841)
(15,000)
**(20,003,841)**|**2023**
**£**
28,277,667
5,276,072
57,322,724
-
(80,087,266)
-
(30,775,000)
-
(3,038)
(48,266,508)
(15,000)
(15,000)
(20,003,841)
152,295,914
**132,292,073**
**Other**
**movements**
-
-
**-**|2022
£
78,266,297
2,229,788
82,625,597
6,211
(105,928,880)
(1,445,673)
-
1,469,317
-|
|---|---|---|---|
||||(21,043,640)
(1,350,000)|
||||(1,350,000)
55,872,657
96,423,257|
||||152,295,914|
||||**At end of year**
132,507,073
(215,000)|
||||**132,292,073**|
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 2023**
## **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 The Trustee 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 2023**
## **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 . In particular the Trustee has taken account of investment income pressures and the
likely impact of the volatile investment markets, 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) and derivatives, all other debtor and credit balances are considered to be basic financial instruments under FRS 102. See notes 11 and 12 for the debtor and creditor notes.
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instrumen These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
## **(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|**2023**
**£**
102,241,707
3,032,366
3,180,925
**108,454,998**|2022
£
119,506,925
1,560,049
19,105,003|
|---|---|---|
|||140,171,977|
Page: 12
## **THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2023**
## **3 INVESTMENT INCOME**
|**INVESTMENT INCOME**|||
|---|---|---|
|Investment income
Interest on cash deposits
Gain on cash currency difference|**2023**
**£**
3,136,468
2,123,415
16,189
**5,276,072**|2022
£
2,058,270
164,316
7,202|
|||2,229,788|
## **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
Support costs (see note 6)
Realised loss on lease of Warren Farm
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|**2023**
**£**
74,360,775
720,424
-
**75,081,199**
9,355,838
18,233,553
1,180,299
14,657,041
9,458,015
7,763,823
374,380
213,260
1,879,205
3,065,468
569,283
291,009
7,319,601
**74,360,775**|2022
£
45,335,450
655,082
825,215|
|---|---|---|
|||46,815,747|
|||4,921,615
6,336,483
401,943
6,398,245
9,699,276
8,395,247
381,320
385,791
1,261,459
2,429,689
377,750
76,120
4,270,512|
|||45,335,450|
Page: 13
## **THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2023**
## **4 CHARITABLE ACTIVITIES (continued)**
|**Institutional Donations of £250,000 and over**
Royal College of Art
Royal Opera House Covent Garden Foundation
London Clinic
Trussell Trust
UK Youth
Prince's Trust
GiveWell UK
Clink Charity
National Gallery Trust
National Association of Citizens Advice Bureaux
Duke of Edinburgh's Award
Macmillan Cancer Support
National Portrait Gallery
Forward Trust
Substance Abuse Foundation
Strategic Resource Group Inc.
Governors For Schools
The Big Give Trust
Maggie's
Stowe School Foundation
Kindred Squared
World Land Trust
St Martin-in-the-Fields Christmas Appeal Charity
Barnardo's
English Heritage Trust
Medecins Sans Frontieres (UK)
Institute for Cancer Vaccines and Immunotherapy
National Star
Fareshare
Sue Ryder
The Foundling Museum
Greenhouse Sports
Gloucester Cathedral
The Felix Project
The Branch Trust, Chipping Norton
Wentworth Woodhouse Preservation Trust
British Exploring Society
Science Museum Group
Comic Relief
Dogs Trust
Glass Door Homeless Charity
North Western Reform Synagogue
Royal Trinity Hospice
University College London|**2023**
**£**
6,103,451
4,012,550
4,000,000
3,605,000
3,071,271
2,275,000
2,100,000
2,000,000
1,621,123
1,178,583
1,160,000
1,011,220
950,000
915,254
901,229
660,000
618,312
610,700
605,000
600,000
550,000
532,000
500,500
500,050
500,000
473,980
450,000
440,000
392,528
350,500
325,000
318,760
318,571
310,000
280,000
275,000
255,381
255,000
250,000
250,000
250,000
250,000
250,000
250,000|
|---|---|
||**46,525,963**|
Page: 14
## **THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2023**
## **5 RELATED PARTY TRANSACTIONS**
|Donations received from a Director of the Trustee
The Golden Bottle Trust (Charity Commission no. 327026)
David Nott Foundation
Intermission Youth Theatre
The Fore
Donations received from other charities where
Hoare Trustees Limited is a Trustee:
Donations made to other charities where a director
of Hoare Trustees Limited is a Trustee:|**2023**
**£**
91,000
31,000
2,000
5,000
100,000
**229,000**|**2022**
**£**
62,500
20,000
-
-
-|
|---|---|---|
|||82,500|
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 £929,520 (2022: £744,506).
## **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 provision of previous years audit fee
**INVESTMENT RELATED FEES**
Investment Management fees
Custody Fees
Enhance Investment Review Fees|**2023**
**£**
989
204
2,525
24,861
23,735
652,497
21,034
(5,421)
**720,424**
500,216
50,324
-
**550,540**|**2022**
**£**
783
2,760
2,525
12,404
38,349
577,821
28,825
(8,385)
655,082|
|---|---|---|
|||290,865
45,500
1,750|
|||338,115|
## **7 REMUNERATION OF TRUSTEE**
For the year ended 30th September 2023, the Trustee charged £645,897 (2022: £572,361) 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, £6,600 (2022 : £5,460) 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 2023**
|**8**
**FIXED ASSET INVESTMENTS**
Movement in fixed asset investments
**Investments**
Market Value Brought Forward (restated)
Investments gifted in
Add:
Acquisition costs
Less:
Disposal proceeds
Realised (losses)/gains on disposals
Unrealised (losses)/gains
**Market Value Carried Forward**
Historical cost as at 30th September 2023|**Listed**
**Unlisted**
**£**
**£**
159,013,553
1,803,789
2,162,067
1,018,858
79,173,475
913,791
(56,990,583)
(332,141)
2,041,405
119,741
1,966,500
180,844
**187,366,417**
**3,704,882**
**180,471,054**
**3,686,573**|**Total**
**2023**
**£**
160,817,342
3,180,925
80,087,266
(57,322,724)
2,161,146
2,147,344
**191,071,299**
**184,157,627**|**2022**
**£**
139,241,149
19,105,003
105,928,880
(82,625,597)
(4,883,538)
(15,948,555)|
|---|---|---|---|
||||160,817,342|
|||||
||||159,231,940|
The market value of investments to 30th September 2023 includes an investment of unlisted shares in Beagle Bidco Limited, totalling £2,143,824 (2022: £868,795) that was acquired on the 9th December 2020.
During the year, it was discovered that some of the unlisted investments were incorrectly categorised and disclosed under listed investmen 2022 financial statements. The values brought forward have been reclassified to listed investments in the current year as a result.
## **9 PROGRAMME RELATED INVESTMENTS**
Movement in programme related investments
|**Unlisted programme related investments**
Value brought forward
Programme related investments Acquired:
Land at Warren Farm
Programme related investments Redeemed:
Mustard Seed Maze equalisation payment
40,000 Adoption UK Charity 5% Fixed Rate Unsecured Loan Notes 2022
813 Herddle Group Limited
Land at Warren Farm leased to Surrey Wildlife Trust
Legal fees paid for land capitalised
Gain on investments
Unrealised loss on investments
**Value Carried Forward**
Historical cost as at 30th September 2023|**2023**
**£**
228,198
-
-
-
-
-
3,038
-
(3,190)
**228,046**
**224,577**|**2022**
**£**
238,298
1,445,673
(6,211)
(53,607)
(50,039)
(1,365,673)
19,757
-|
|---|---|---|
|||228,198|
|||221,539|
All of the programme related investments were held in the United Kingdom and are unlisted. They have therefore been valued at par.
|**Unlisted programme related investments held**
25,000 CW Renewable Energy EIS Fund
1 EcoPower Indian Ocean Ltd
10,623 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
Land retained at Warren Farm|**2023**
**£**
25,000
23,165
10,623
41,220
5,000
39
14,961
25,000
83,038
**228,046**|**2022**
**£**
25,000
23,165
10,623
44,410
5,000
39
14,961
25,000
80,000|
|---|---|---|
|||228,198|
Page: 16
## **THE MASTER CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30th SEPTEMBER 2023**
## **10 TANGIBLE FIXED ASSETS**
|**Cost**
At 1st October 2022
Additions
Disposals
At 30th September 2023
**Depreciation**
At 1st October 2022
Charge for year
At 30th September 2023
**Net book value**
At 30th September 2023
At 30th September 2022
**11 DEBTORS**
Cash due from donors
Gift aid tax reclaim
Investment income/interest due
Recoverable tax on investment income
Other debtors and prepayments
**12 CREDITORS**
**Due within one year**
Loan
Trustee administration fees
Independent auditor's remuneration
Investment management fees
Investment trade to settle
Custody fees
Grants payable
Financial instruments
Other creditors
**Due more than one year**
Grants payable|Motor vehicles
Totals
£
£
25,250
25,250
-
-
-
-
25,250
25,250
10,100
10,100
2,525
2,525
12,625
12,625
12,625
12,625
15,150
15,150
**2023**
**2022**
**£**
**£**
2,030
-
1,490,877
142,500
646,159
7,396
-
997
30,700
84,987
**2,169,766**
235,880
**2023**
**2022**
**£**
**£**
185,000
200,000
192,817
164,206
26,910
29,340
107,888
68,253
218,630
-
-
10,361
207,207
-
149,622
-
49,308
**1,088,074**
521,468
275,000
-
**275,000**
-
**2023**|Motor vehicles
Totals
£
£
25,250
25,250
-
-
-
-
25,250
25,250
10,100
10,100
2,525
2,525
12,625
12,625
12,625
12,625
15,150
15,150
**2023**
**2022**
**£**
**£**
2,030
-
1,490,877
142,500
646,159
7,396
-
997
30,700
84,987
**2,169,766**
235,880
**2023**
**2022**
**£**
**£**
185,000
200,000
192,817
164,206
26,910
29,340
107,888
68,253
218,630
-
-
10,361
207,207
-
149,622
-
49,308
**1,088,074**
521,468
275,000
-
**275,000**
-
**2023**|
|---|---|---|
||25,250|25,250|
||10,100
2,525|10,100
2,525|
||12,625|12,625|
||12,625|12,625|
||15,150|15,150|
||**2023**
**£**
2,030
1,490,877
646,159
-
30,700|**2022**
**£**
-
142,500
7,396
997
84,987|
||**2,169,766**|235,880|
||**2023**
**£**
185,000
192,817
26,910
107,888
218,630
-
207,207
149,622
-|**2022**
**£**
200,000
164,206
29,340
68,253
-
10,361
-
49,308|
||**1,088,074**|521,468|
||275,000|-|
||**275,000**|-|
The loan is repayable on demand and does not bear any interest.
## **13 FUND TRANSFERS**
The Trustee made a transfer of £3,370 from the General Endowment Fund as well as a transfer of £68,872,993 from the Expendable Endowment Fund, totalling £68,876,363 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 2023**
## **14 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
-------------Unrestricted Funds-------------
|Fixed Assets
Listed Investments
Unlisted Investments
Programme Related Investments
Tangible fixed assets
Fixed bank deposits
Current Assets
Cash
Sundry Debtors
Creditors due within one year
Creditors due more than one year
Total|General
Endowment
Fund
2023
329,502
-
-
-
-
16,337
425
(1,304)
-
**344,960**|Income
2023
£
-
-
-
-
-
-
-
-
-
**-**|Expendable Endowment
2023
£
187,036,915
3,704,882
228,046
12,625
30,775,000
132,275,736
2,169,341
(1,086,770)
(275,000)
**354,840,775**|**Total Funds**
**2023**
**£**
**187,366,417**
**3,704,882**
**228,046**
**12,625**
**30,775,000**
**132,292,073**
**2,169,766**
**(1,088,074)**
**(275,000)**|
|---|---|---|---|---|
|||||**355,185,735**|
-------------Unrestricted Funds-------------
|General
Endowment
Fund
Income
2022
2022
£
£
Fixed Assets
Listed Investments
333,556
-
Unlisted Investments
-
-
Programme Related Investments
-
-
Tangible fixed assets
-
-
Current Assets
Cash
31,224
208,718
Sundry Debtors
425
-
Creditors due within one year
(13,619)
-
Total
351,586
208,718
**15 RECONCILIATION OF OPERATING SURPLUS TO NET CASH**
**INFLOW FROM OPERATING ACTIVITIES**
Net operating income
Investment income
Investments gifted
Gains on Currency transactions
Depreciation
(Increase)/decrease in Debtors
Increase/(decrease) in Creditors
Net cash inflow from operating activities|Expendable Endowment
2022
£
159,534,097
949,689
228,198
15,150
152,055,972
235,455
(507,849)
312,510,712
**2023**
**£**
38,099,331
(5,276,072)
(3,180,925)
(289,912)
2,525
(1,933,886)
856,606
**28,277,667**|**Total Funds**
**2022**
**£**
159,867,653
949,689
228,198
15,150
152,295,914
235,880
(521,468)|
|---|---|---|
|||313,071,016|
|||**2022**
**£**
95,247,903
(2,229,788)
(19,105,003)
1,876,161
2,525
2,670,485
(195,989)|
|||78,266,296|
Page: 18