Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
Charity registration number 1150801 (England and Wales)
Company ￿giStratIon number 8354834
THE TOLKIEN TRUST
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

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THE TOLKIEN TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Baillie Tolkien
Simon Tolkien
Royd Tolkien
(Appointed 1 December
2024)
(Appointed 1 December
2024)
(Appointed 1 December
2024)
Rachel Tolkien
Amanda Doyle
Secretary
Cathleen Blackbum
Charity number
1150801
Company number
8354834
Registered office
Prama House
267 Banbury Road
Oxford
OX2 7HT
Auditor
Gravita Audit Oxford LLP
First Floor. Park Central
41>41 Park End Street
Oxford
OX1 1JD
Bankers
Lloyds Bank plc
Oxford
Solicitors
Howes Percival LLP
Prama House
267 Banbury Road
Oxford
OX2 7HT
Investment advisors
Investec Wealth & Investment
30 Gresham Street
London
EC2V 7QN

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THE TOLKIEN TRUST
CONTENTS
Page
Trustees, report
Statement of trustees. responsibilities
Independent auditorfs report
Statement of financial activities
Balance sheet
10
statement of cash flows
11
Notes to the financial statements
12-22

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THE TOLKIEN TRUST
TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2024
The trustees present their annual report and financial statements for the year ended 31 December 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the
financial statements and comply with the charity's Memorandum and Articles of Associats'on, the Companies Act
2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities
preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of
Ireland (FRS 102) {effective 1 January 2019)"
Objectives and activities
The charity's objects are to benefit such charitable insb'tutions or purposes as the Trustees from time to time think
fit. Accordingly, the Trust operates for the public benefit. The Trustees have complied wth their duty under section
17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity
Commission. The policies adopted in furtherance of these objects are detailed below and there has been no change
in these during the year.
Grant-making policy
The Trust makes donations annually to a )Mde range of charities and charitable causes, but with a recurrent
emphasis upon those aimed at alleviating povety and social, educational and healthcare disadvantage, as well as
those focusing on environmental concerns and the arts. Charities and causes are selected by the Trustees in their
discretion on the basis of research undertaken on their behalf and, in the case of existing beneficiaries, the
Trustees, assessment of the use made of grants previously given. Though many of the charities receiving grants
are based in the United Kingdom, the funds given are expended on charitable work both at home and abroad,
including in Africa, North America and Europe (for assistance to refugees).
As a solely grant-making charity, the Trust's emphasis is on focused and effective giving. Recipients of grants are
therefore required to undergo monitoring and evaluation. which involves them in providing reports to the Trust on
how their grants have been used and, in certain cases, meeting with the Trustees, representatives to discuss their
achievements. The Trust, where appropriate, aims to build closer relationships with beneficiaries with a view to
maximising the impact of its giving. In some inStan￿S. the Trust makes grants which are conditional upon the
raising of matched funding, enabling the charities Con￿Med to leverage the Trust's contributions in order to
increase their supporter base and income. The Trust may also challenge charities to identify the actions which
would enable them to develop and grow. such as appointing a key member of staff or creating a new website
enabling greater online engagement and donations, and help to fund these actions.
Further details can be found on the Trust's v￿bsIte at YW4V.tolkientrust.org
Achievements and performance
During the year the Trust made distributs'ons from income to 102 charities.
Financial review
The Trust's chief assels consist of copyrights in ￿rtain works by J R R Tolkien, which provide royalty income, and
cash and investments. The Trust does not engage in ￿nd-raisIng. The Trust has no restricted funds and no
endowment.
For the year royalty income was £4,271.690 (2023= £9,155.049) and the charity awarded grants totalling
£6,044,078, 12023.. £5.520,000). Further details are included in the statement of financial activities and related
notes.
Reserves Policy
The Trust maintains a general reserve, the balance on which as at 31 December 2024 was £38,963.098 {2023:
£37,388,289). Of this £1,774,000 (2023.. £279,000) is represented by heritage assets leaving available reserves of
£37,179,078 {2023= £37,109,289). Reserves are held to enable the Trust to smooth out the fluctuations in its net
income from year to year and thus to maintain a substantial level of annual grant expenditure over the longer temi-
to meet future grant commitments where grants are payable over a number of years,. and to stand ready to defend
its copyright interests whenever these come under threat.

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THE TOLKIEN TRUST
TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Investment policy
The Trust has engaged professional investment managers to administer its investments. These consist of a
portfolio of equities, fixed interest securities, unit trusts and other instruments invested to provide both income
and capital appreciation. The return is measured on a total return basis. No initial holding can exceed 50A of the
total portfolio and the total sum of all equity holdings in excess of 50kn cannot be equal to or in excess of 40 % of
the fund's value. No investments are made in derivatives. The Trust follows an ethical investment policy and does
not invest directly in tobacco companies, or companies whose main business (i.e. >100/0 of revenue) is the
manufacture of amiaments or the provision of gambling seprfices.
Investment perforniance
The Trust has agreed an investment perfOrrnan￿ benchmark wth its investment managers based on the
Trustees, need to build capital to fund their grant making,. their attitude to investment risk., and the timeframe for
investment. These three factors detemiine an appropnate asset allocation and thus a benchmark against which
the investment managers, performance can be assessed. During 2023 the Trustees agreed to amend their
°bespoke" benchmark, after discussion with and advice from their investment managers, which benchmark
remains unchanged in 2024. The agreed benchmark is-. 50/0 of the return of the Bloomberg Global-Aggregate
Total Retum Index (GBP Hedged): 780h of the MSCI All Country World Index (NR),. 50/0 of the IPD Monthly
Property Index,. and 100kn of the Altematives Composite Index {37.50/0 BOA Merrill Lynch Sterling Corporate Bond
Index, 37.5% MSCI All Country World Index, 25% B o E Base Rate -0.5/1 against which the alternative
investments are measured.. and 2% cash. There are agreed limitations as to the minimum and maximum
amounts of each asset class that can be held. The investment managers deem a 'MediumlHigh" risk approach
suitable given the Trust's circUmstan￿S with a restriction to a maximum of 82.5% in equities.. UK and ex-UK
combined.
The Trustees understand that over the long temi the mandate will allow the capital value of the portfolio to be
retained in real terms and generate a good level of total retum. The Trustees also understand that as risk assets
do not necessarily move in a linear fashion, there may be periods when the portfolio value will fall. However, they
also understand that, based on historical retums, equity investment is necessary if the value of both the capital of
the fund and income is to maintain its purchasing power vthen compared with inflation.
The portfolio retumed 8.70k, net of fees, on a total retum basis for the 12 months ending 31 st December 2024.
The primary driver over this period, as was the case for much of the last two years, remained market
expectations on global inflation and the timing of interest rate cuts by the Central Banks. Balanced portfolios
made decent progress again during 2024 but there was no pronounced increase in returns towards the year end,
as there was during December last year. Evidence suggests that, in the UK and US, neither inflation nor interest
rates are projected to continue to fall as quickly as had been hoped. With investors also expressing concern
about fiscal deficits, bond markets have eXperIen￿d a sell-off. with global government bonds delivering another
year of negative retum contrasted against a strong perfomiance by global equities.
As with last year, the US economy belied the experts in proving to be more robust than expected, and US equities
have delivered the lion's share of retum to global investors (27% retum from the S&P Index vs 9.6Q/o from the UK'S
FTSE 100 Index) and a COn￿ntrated number of large technology companies dubbed 'The Magnificent Seven, put
on 67% over the year. However, this result comes in an environment of occasional squalls of volatility.. as an
example, global stock markets fell sharply in August during which spell the Magnificent 7 dropped by 17Qkn . Despite
perceived global instability, and concomitant market instability. balan￿d portfolios continue to deliver decent retums
above what would be achieved by holding cash. Global equities sit wthin a few percent of all-time highs despite
several occasions of market shock over the last few years which might have persuaded investors to exit. This has
contributed to the positive total return for the Trust's portfolio over the year.

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THE TOLKIEN TRUST
TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties
The principal risks and uncertainties affecting the Trust arise from its ownership of copyright assets. It is necessary
from time to time to engage in legal action to defend these assets or to ensure that the Trust receives appropriate
value from them, which can increase the operating costs of the Trust. The income earned from these assets may
also fluctuate from year to year, often to a significant extent. The Trust deals with these risks and uncertainties by
adding to net income from its reserves in order to try to achieve a consistent level of annual grant expenditure. (It
should be noted, however, that this consistency is not always apparent when comparing the level of grant
expenditure from year to year, given that grants to be paid out over a term of years are accounted for in fvll in the
financial year in which they are initially agreed. Grants payable over a term of years also require the maintenance
of sufficient reserves to enable the Trust to honour future grant commitments.)
Plans for future periods
The Trust plans to continue to work with a limited number of charities, developing and consolidating its current
strategy, and modifying its approach if current monitoring practices suggest that increased impact can be achieved.
Structure, governance and management
The charity is a charitable company govemed by its Artides of Association.
The trustees, who are also the directors for the purpose of company law. and who served during the year and up to
the date of signature of the financial statements were=
Baillie Tolkien
Michael Tolkien
Simon Tolkien
Royd Tolkien
Rachel Tolkien
Amanda Doyle
(Resigned 31 December 2024)
(Appointed 1 December 2024)
(Appointed 1 December 2024)
(Appointed 1 December 2024)
The constitution of the charitable company establishes the tenns on which Trustees are appointed and exercise
their powers. New Trustees are given guidance on their legal responsibilities as charity trustees, and all Trustees
are kept up-to-date with relevant legal developments and Charity Commission guidance.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and
guarantee to contribute £10 in the event of a wnding up.
The Trustees make all strategic decisions relating to the charty, including decisions as to whom grants should be
paid.

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THE TOLKIEN TRUST
TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Disclosure of infomiation to auditor
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the
audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to
identify such relevant information and to establish that the auditor is aware of such information.
The report has been prepared in accordance wth the Small Companies Regime under Section 419(2) of the
CompaniesAct 2006.
The trustees, report was approved by the Board of Trustees.
Svjned by:
bAi(ts"L t&LtL
28E2YE54Y.
Simon Tolkien
Trustee
Baillie Tolkien
Trustee
17 September 2025
21 September 2025

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THE TOLKIEN TRUST
STATEMENT OF TRUSTEES. RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2024
The trustees, who are also the directors of The Tolkien Trust for the purpose of company law, are responsible for
preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom
Accounting Standards (United Kingdom Generally Accepted Accounting Practi￿}.
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair
view of the state of affairs of the charity and of the incoming reSoUr￿S and application of resources, induding the
income and expenditure, of the charitsble company for that year.
In preparing these financial statements, the trustees are required to=
select suitable accounting policies and then apply them consistently-
observe the methods and principles in the Charities SORP-
make judgements and estimates that are reasonable and prudent.,
state whether applicable UK Accounb'ng Standards have been followed, subject to any material departures
disclosed and explained in the financial statements.. and
prepare the financial statements on the going cOn￿M basis unless it is inappropriate to presume that the charity
11 continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at
any time the financial position of the charity and enable them to ensure that the financial statements comply with the
Companies Act 2006. They are 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.

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THE TOLKIEN TRUST
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE TOLKIEN TRUST
Opinion
We have audited the financial statements of The Tolkien Trust (the 'charity') for the year ended 31 December 2024
which comprise the statement of financial activities. the balance sheet. the statement of cash flows and notes to the
financial statements, including significant accounting policies. The financial reporting framework that has been
applied in their preparation is applicable law and United Kingdom Accounting Standards, induding Financial
Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United
Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements-
give a true and fair view of the state of the charitable company's affairs as at 31 December 2024 and of its
incoming resources and application of reSoUr￿s. induding its income and expenditure, for the year then
ended.,
have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
and
have been prepared in accordance viith the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance wth Intemational Standards on Auditing (UK) (ISAS IUK)} and applicable
law. Our responsibilities under those standards are further described in the Auditoffs ￿SponSIbl1111eS for the audit of
the financial statements section of our report. We are independent of the charity in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical
standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is suffiaent and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have conduded that the trustees, use of the going concem basis of
accounting in the preparation of the financial statements is appropriate.
Based on the work we have perfomied. 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 ￿e1ve months from vthen the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the twstees with respect to going concern are described in the
relevant sections of this report.
Other information
The other information comprises the infomiation induded in the annual report other than the financial statements
and our auditor's report thereon. The trustees are responsible for the other infomiation contained within the annual
report. Our opinion on the financial statements does not cover the other infomiation and, except to the extent
otherwise explicitly stated in our report, we do not express any fomi of assurance condusion thereon. Our
responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears
to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to detemiine whether this gives rise to a material misstatement in the financial statements themselves. If,
based on the work we have perfomied, we condude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit..
the information given in the trustees, report for the financial year for which the financial statements are
prepared, which includes the directors. report prepared for the purposes of company law, is consistent with the
financial statements., and
the directors, report included within the trustees, report has been prepared in accordance wth applicable legal
requirements.

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THE TOLKIEN TRUST
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE TOLKIEN TRUST
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charty and its environment obtained in the course of the
audit, we have not identified material misststements in the directors, report included within the trustees, report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires
us to report to you if, in our opinion-
adequate accounting records have not been kept, or retums adequate for our audit have not been received
from branches not visited by us- or
the financial statements are not in agreement with the accounting records and returns,. or
certain disclosures of trustees. remuneration specified by law are not made" or
we have not received all the infom)ation and explanations we require for our audit., or
the trustees were not entitled to prepare the financial statements in accordance with the small companies
regime and take advantage of the small companies. exemptions in preparing the trustees, report and from the
requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the statement of trustees. responsibilities, the trustees, who are also the directors of the
charity for the purpose of company law, are responsible for the preparation of the financial statements and for being
satisfied that they give a true and fair view. and for such intemal control as the trustees determine is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or
error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to
continue as a going concem, disclosing, as applicable, matters related to going concern and using the going
concem basis of accounting unless the trustees either intend to liquidate the charitable company or to Cease
operations, or have no realistic altemative but to do so.
Auditorfs responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
th ISAS (UK} will always detect a material misstatement vthen it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities. induding fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including
fraud and non-compliance with laws and regulations, was as follows..
the engagement partner ensured that the engagement team collectively had the appropriate competence.
capabilities and skills to identify or recognise non-complian￿ with applicable laws and regulations.,
we identified the laws and regulations applicable to the charitable company through discussions with
directorsltrustees and other management, and from our kno￿edge and experience of the client's sector,.
we focused on specific laws and regulations which we considered may have a direct material effect on the
financial statements or the operations of the charitable company,.
we assessed the extent of compliance Vlryth the laws and regulations identified above through making
enquiries of management., and
Identified laws and regulations were communicated wthin the audit team regularly and the team remained
alert to instances of non-compliance throughout the audit.

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THE TOLKIEN TRUST
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE TOLKIEN TRUST
We assessed the susceptibility of the charitable company's financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by..
making enquiries of management as to where they considered there was susceptibility to fraud, their
kno￿edge of actual. suspected and alleged fraud: and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations.
To address the risk of fraud through management bias and override of controls, we..
performed analytical procedures to identify any unusual or unexpected relationships.,
tested journal entries to identify unusual transactions.,
assessed whether judgements and assumptions made in detemiining the accounting estimates were
indicative of potential bias-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-complian￿ V￿th laws and regulations, we designed procedures
which included, but were not limited to..
agreeing financial statement disclosures to underlying supporting documentation-
reading the minutes of meetings of those charged wth governan￿., and
enquiring of management as to actual and potential litigation and claims.
A further description of our responsibilities is available on the Financial Reporting Council's website at.. https=Il
www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company s members, as a body, in accordance with Chapter 3 of Part 16
of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's
members those matters we are required to stste to them in an auditor's report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable
company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we
have fomied.
Colin Mills (Senior Statutory Auditor)
For and on behalf of Gravita Audrt Oxford LLP. Statutory Auditor
Chartered Accountants
First Floor, Park Central
4041 Park End Street
Oxford
OX1 1JD
Date: 22 Sopt¢.mber 2025

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THE TOLKIEN TRUST
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
Unrestricted Unrestricted
funds
funds
2024
2023
Notes
Income from:
Donations and legacies
Investments
Royalties
14
1,495,000
691,463
4,271,690
538,437
9,155,049
Total income
6,458,153
9,693,486
enditure on:
Raising funds
302,201
295,592
Charitable activities
6.305,610 5,515.733
Total expenditu
6,607,811
5,811,325
Net gainsl(losses) on investments
11
1,724,467
1,853,241
Net income and net movement in funds
1,574,809
5,735,402
Fund balances at 1 January 2024
37.388,289 31,652.887
Fund balances at 31 December 2024
38,963,098 37,388.289
The statement of financial activities indudes all gains and losses recognised in the year. All income and expenditure
derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account
under the Companies Act 2006.

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THE TOLKIEN TRUST
BALANCE SHEET
AS AT 31 DECEMBER 2024
2024
2023
Notes
Fixed assets
Heritage assets
Investments
14
15
1,774.000
27,828.945
279.000
25,619.620
29,602,945
25,898,620
Current assets
Debtors
Cash at bank and in hand
16
3,092,023
11,077,843
4,537,212
9,129,336
14,169,866
13,666,548
Creditors: amounts falling due within
one year
17
(4.414.713)
(1,636.879)
Net current assets
9,755.153
12,029.669
Total assets less cur￿nt liabilities
39,358,098
37,928,289
Creditors: amounts falling due after
more than one year
18
(395,000)
{540,000)
Net assets
38,963.098
37,388.289
Income funds
Unrestricted funds
38,963,098
37,388,289
38,963,098
37,388,289
1710912025
The financial statements were approved and authorised for issue by the Trustees on .........................
stgned by..
Do¢¥S*ned by.
rnbiE
Baillie Tolkien
Trustee
Simon Tolkien
Trustee
Company registration number 8354834
10-

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THE TOLKIEN TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
2024
2023
Notes
Cash flows from operating activities
Cash generated from operations
22
1,741.902
1,253.728
Investing activities
Purchase of investments
Proceeds from disposal of investrnents
Investment income received
(6,046,261)
5,561,403
691.463
(22,246,374)
21,815,487
538,437
Net cash generated from investing activities
206,605
107,550
Net cash generated from financing activities
Net increase in cash and cash equivalents
1,948.507
1,361.278
Cash and cash equivalents at beginning of year
9,129.336
7,768.058
Cash and cash equivalents at end of year
11,077,843
9,129,336
11

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Accounting policies
Charity information
The Tolkien Trust is a private company limited by guarantee incorporated in England and Wales. The
registered office is Prama House, 267 Banbury Road, Oxford, OX2 7HT.
1.1 Accounting convention
The financial statements have been prepared in accordan￿ with the charity's Memorandum and Articles of
Association. the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and
Republic of Ireland" ('FRS 102-) and the Charities SORP "Accounting and Reporting by Charities.. Statement
of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial
Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 20191. The
charity is a Public Benefit Entity as defined by FRS 102.
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 £.
The financial statements have been prepared under the historical cost convention. modified to include certain
financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concem
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity
has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees
continue to adopt the going concem basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtheran￿ of their charitable
objectives.
1.4 Income
Income from royalties an similar income is recognised net of VAT and when the charity is legally entitled to it
after any performance conditions have been met, the amounts Can be measured reliably, and it is probable
that income will be received. Amounts eamed in respect of the year to 31 December are recognised as
income in the year if they can be quantified by the time of the approval of the financial statements. Dividends
are included when they are received. Interest is included on a receivable basis.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a
third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of
the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each adivity are made up of the total of direct costs and
shared costs, including support costs involved in undertaking each activity.
Grants are nomially recognised as an expense when they are approved for payment by the Trustees.
However, if the Trustees have entered into a grant agreement with a beneficiary, the full amount of the grant is
recognised when the agreement is signed. Expenditure is recognised on an accruals basis and include any
irrecoverable VAT. Any costs that need to be apportioned between costs of generating funds, support costs
and governan￿ costs are done so based on the Trustees. estimate of the amount of costs applicable to each
category.
1.6 Heritage assets
Purchased heritage assets are capitalised in the balan￿ sheet at cost. Donated heritage assets are included
in the balance sheet at their value at the date of donation (which becomes the deemed cost). No depreciation
is Charged as the assets have an indefinite life.
12-

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Accounting policies
{Continued)
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction pri￿ excluding transaction costs, and are
subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net
incomel(expenditure) for the year. Transaction costs are expensed as incurred.
1.8 Uncapitalised fixed assets
The assets of the charity consist in part of copyrights in relation to works written by the late J R R Tolkien.
These are shown in note 12. They have no value in the financial statements as these were mostly settled into
The Tolkien Trust (when it was an unincorporated charity) many years ago.
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
1.10 Financial instruments
The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12
'other Financial Instruments Issues, of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes paty 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 re￿gnised amounts and there is an intention to settle on a net
basis or to realise the asset and setue the liability simultaneously.
Basic financial assets
Basic financial assets, which indude debtors and cash and bank balances, are initially measured at
transaction price.
Basic financial liabilities
Basic financial liabilities, including creditors and grants awarded not paid are initially recognised at transaction
price . Financial liabilities are not discounted as the effect would not be material
Amounts payable are classified as current liabilities if payment is due wtthin one year or less. If not, they are
presented as non-current liabilities.
Critical accounting estimates and judgements
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates
and assumptions about the carying amount of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experien￿ and other factors that
are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised where the revision affects only that
period, or in the period of the revision and fijture periods where the revision affects both current and future
periods.
Critical judgements:
Investment values
Investment values are determined using the stock market value as at the year-end date.
13-

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Investments
Unrestricted Unrestricted
funds
funds
2024
2023
Dividends re￿iVed
Interest receivable
512,873
178,590
345,431
193,006
691,463
538,437
Raising funds
Unrestricted Unrestricted
funds
funds
2024
2023
UK legal fees relating to contract and copyright matters
US and other overseas legal fees
Other professional fees
152,063
43,544
2,650
168.645
29.646
2.509
Legal and professional
198,257
200,800
Investment management fees
103,944
94,792
302,201
295,592
Induded in other professional fees is £2,615 (2023.. £2,472 of fees payable to auditors for non-audit services.
14-

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Expenditure on charitable activities
Grant
making
2024
Grant
making
2023
Direct costs
Grant funding of activities {see note 6)
6,044,078
5,250,000
Share of support and governance costs Isee note 7)
Support
Governan
131,738
129,794
184,779
80,954
6.305,610
5,515.733
Analysis by fund
Unrestricted funds
6.305,610
5,515.733
Grants payable
GrantGrant funding
funding
2024
2023
Grants to institutions..
Analysed below
6,044,078 5,250,000
2024
2023
AAPLE Academy Foundation
ActionAid
Arbor Day
Age UK
Aladdin Project
Alzheimer's Research UK
Association IMAD
Asylum Welcome
Basmeh & Zeitooneh
Be Free Young Carers
Become Charity
Best FriendsAnimal Society
Birdlife Intemational
Blackfriars Oxford
British Red Cross
British Friends of Neve Shalom
30,000
30,000
125,000
25,000
70,000
10,000
70,000
22,000
60,000
22,000
20,000
50,000
95,000
22,000
10,000
120,000
70,000
70,000
10,000
70,000
22,000
124,000
22,000
20,000
50.000
85.000
22.000
55,000
15-

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Grants payable
{Continued)
Camfed Intemational
Centre Primo Levi
Challenging MND
Children on the Edge
Claremont McKenna College
ClientEarth
Collectif des Artistes Liriques et Musiciens pour la Solidarite (CALMS)
Colorado State University Foundation
Creation Theatre
Cutteslowe Community Association
Detention Action
Doctors of the World UK
Dragon School Trust
Duke of Edinburgh's Award
Dyslexia Research Trust
Extreme Medical Services (EMR)
Festival Medical Services
Freedom from Torture
Glass Door Homeless Charity
Greenpeace Enviromental Trust
Help Lesotho
Hope Project Lesvos
Howard League for Penal Reform
Humanity & Inclusion
Kent Refugee Action Ne￿rk
La Cimade
Leeds Hospitals Charity
Linda Norgrove Foundation
Linkage Community Trust Ltd
Maison Shalom
Mango Tree Orphan Support Programme
Marie Curie
Medecins du Monde Fran
MMR Rescue {Ukrainel
Medecins Sans Frontieres UK
Memorial de la Shoah
Museum of Oxford
My Name'5 Doddie Foundation
One Acre Fund
Oxford Bach Choir
Oxford Food Hub
Oxford Lieder Limited
Oxford Philharmonic Orchestra
Oxford Playhouse Trust
Panzi Foundation
Pembroke College Oxford, Tolkien Memorial Sculpture
Pesticide Action Network UK
Photography Oxford
Pilotes Volontaires
Prison Phoenix Trust
Prisoners Abroad
110,000
44,000
50,000
33,000
20,000
155,000
25,000
35,000
45,000
15,000
40,000
80,000
30,000
70,000
49,000
130,000
110,000
44,000
50,000
33,000
50,000
155,000
25,000
40,000
45,000
15,000
40.000
80.000
30.000
35.000
49.000
90,000
20,000
83,000
120,000
30,000
30,000
30,000
11,000
15,000
55,000
50,000
22,000
120,000
33,000
20,000
70,000
200,000
100,000
275,000
20,000
40,000
50,000
100,000
128,000
120,000
30,000
30,000
11,000
15,000
55,000
50.000
22.000
45.000
33.000
20,000
70,000
200,000
275,000
20,000
93,000
50,000
100,000
25,000
33,000
25,000
15.000
10.000
125.000
33,000
25,000
15,000
10,000
125,000
7,500
110,000
110,000
10,000
158,000
20,000
138,000
78,000
20,000
88,000
16-

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Grants payable
{Continued)
Reading List Foundation
RefuAid (Prism the Gift Fund)
Refugees at Home
Reprieve
RESQ ONLUS
Road to Recovery
Santa Barbara Museum of Art
Santa Barbara Wildlife Care Ne￿Ork
Save the Children Fund
Schoolreaders
Settle Support
Shelterbox
Shelter Cymru
Skidmore College
Solidarites International
SOS Humanity
SOS Mediterranee France
Southampton and Wnchester Visitors Group
Spark Inside
St Luke's Oxford
Support a Survivor of Torture
The Christian Heritage Centre at Stonyhurst
The Porch
The Tablet Trust
The Turtle Hospital
Theatres Trust
TREAT ffrust for Research and Education on the Arms Trade)
Uganda Childbirth Injury Fund
Ukrainian Patriot
University of Oxford Botanic Garden and Art)oretum
University of Oxford (Care for COVID-orphaned children)
University of Oxford - Management of Tolkien Archives
University of Oxford - reversal of B(>Jleian Archives grant superseded
University of Sussex
Videre Est Credere
Virtual Doctors
VNA Health Foundation
Vblener Holocaust Library
Imlderness Youth Project
Work Rights Centre
Working chan￿ Limited
28,000
20,000
20,000
105,000
11,000
53,000
28,000
20,000
20,000
105,000
11,000
53,000
15,000
15,000
122,000
55,000
40.000
77.000
52.000
10,000
250,000
55,000
40,000
80,000
52,000
20,000
80,000
28,000
50,000
22,000
25,000
205.000
28,000
50,000
22,000
25,000
11,000
28,000
60,000
20,000
20,000
20,000
20,000
105,000
28,000
80,000
30,000
20,000
20,000
25,000
20,000
105.000
28.000
80.000
28.000
94,000
1,020,000
(156,422)
10,000
35,000
30,000
30,000
17,000
30,000
20,000
44,000
10,000
35,000
30,000
30,000
17,000
30,000
20,000
44,000
6,044,078 5,250.000
17-

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Support costs allocated to activities
2024
2023
UK legal fees relating to grant adminsitration
Other professional fees
other costs
Governan￿ costs
20.946
43.750
67.042
129,794
12.677
171.016
1.086
80,954
261,532
265,733
Analysed between:
Grant making
261,532
265,733
2024
2023
Governance costs comprise:
Audit fees
Legal and professional
11,100
118,694
9.120
71,834
129,794
80,954
Net movement in funds
2024
2023
The net movement in funds is stated after chargingl{crediting)'.
Fees payable to the charity's auditor=
for the audit of the charity's financial statements
adjustment in respect of prior year
10.400
700
9.230
{110)
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the
charity during the year.
10 Employees
The average monthly number of employees during the year was..
2024
Number
2023
Number
Total
18-

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Gains and losses on investments
Unrestricted Unrestricted
funds
funds
2024
2023
Gainslllossesl arising on=
Revaluation of investments
1,724,467
1,853,241
12 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
13 Copyright Assets
The charity's literary assets comprise-.
Certain US copyrights in The Lord of the Rings." and the worldwide copyrights in Smith of Wootton
Major, TTre and Leaf, Roverandom, Mythopoeia, The Legend of Sigurd and Gudmn, The Fall of
Arthur and Beowulf." A TTrns1at￿n and Commentary, all by J R R Tolkien.
The copyrights in the published editions of various philological writings and fragments by J R R
Tolkien.
Certain unpublished papers, letters, artistic works, pictures, photographs and other documents
originally forming part of the Estate of J R R Tolkien, and the copyright in such materials formerly
owned by the Estate.
14 Heritsge assets
Archive
At 1 January 2024
Donated assets
279,000
1,495,000
At 31 December 2024
1,774,000
The acquired heritage assets have been placed on long-temi deposit in the Tolkien Archive at the Bodleian
Library in the University of Oxford so that they may be held with the literary papers and other archives of J R
R Tolkien and the Tolkien family, and be ac￿Ssible to scholars.
The donation (by legacy) in 2024 with a value of £1.495.000 and the acquisition in 2021 for £279,000 are the
only heritage asset transactions in the past 5 years.
19-

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15 Fixed asset investments
Listed Fixed interest Cash held by
investments
securities
investment
Ilistedl
managers
Total
Cost or valuation
At 1 January 2024
Additions
Valuation changes
Disposals
22,215.329
5,949,079
1,821,880
(5,384,239)
2,365.934
97,182
(97,413)
(96,577)
1,038,357
194,414
25,619.620
6,240,675
1,724,467
1275,000) {5,755,816)
At 31 December 2024
24,602,049
2,269,126
957,771
27,828,946
Carrying amount
At 31 December 2024
24,602,049
2,269,126
957,771
27,828,946
At 31 December 2023
22,215.329
2,365.934
1,038,357
25,619,620
16 Debtors
2024
2023
Amounts falling due within one year:
Royalties re￿1vable
Other debtors
Prepayments and accrued income
3,078,710
13,313
4,512,480
12,836
11,896
3,092,023
4,537,212
17 Creditors: amounts falling due within one year
2024
2023
Grants awarded not yet paid
Accruals and deferred income
4,313,000
101,713
1,507,387
129,492
4,414,713
1,636,879
18 Creditors: amounts falling due after more than one year
2024
2023
Grants awarded not yet paid
395,000
540,000
-20-

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19 Grants awarded not yet paid
At31
December
2024
At 1 January
2024
Amounts Payments
Awarded
Made
2024 movements
Bodleian Archivist
Bodleian Curator of Medieval Manuscripts
Bodleian Library- other
Bodleian Libary- Tolkein Archives
University of Oxford The JRR Tolkien
Professorship of English Literature and
Language
Awarded December 2023,. paid in 2024
Awarded and paid in 2024
Awarded December 2024.. paid in 2025
145,000
200,000
11,422
{145.000)
200,000
11.422
1.020.000
490,000
530.000
640,000
1.050,965
320,000
1,050.965
1,522.500
320,000
1.522,500
3.658.000
3,658.000
2.047,387
6.044.078
3,383,465
4,708.000
At31
December
2023
At 1 January
2023
Amounts Payments
Awarded
Made
2023 movements
University of Manitoba
Alan Klass Memorial Fund Programme
Bodleian Archivist
Bodleian Curator of Medieval Manuscripts
Bodleian Library- other
University of Oxford The JRR Tolkien
Professorship of English Literature and
Language
Awarded December 2022,. paid in 2023
Awarded and paid in 2023
Awarded De￿mber 2023,. paid in 2024
90,000
205,000
265,000
11,422
90,000
60,000
65,000
145,000
200,000
11,422
960,000
10,000
320,000
10,000
4,199,035
640,000
4,199,035
1,050,965
1,050,965
1,541,422
5,250,000
4,744,035
2,047,387
21

Docusign Envelope ID.. l88F706t￿FA0c4BS1>91F￿2A08E3AA04S6
THE TOLKIEN TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are
not subject to specific conditions by donors and grantors as to how they may be used. These include
designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
At 1 January
2024
Income Expenditure
Gains and
losses
At31
December
2024
General funds
37.388,289
6,458.153
(6,607,811)
1,724,467
38,963,098
Previous year:
At 1 January
2023
Income Expenditure
Gains and
losses
At31
December
2023
General funds
31.652,887
9,693.486
(5,811.325)
1,853,241
37,388,289
21 Related party transactions
There were no disclosable related party transactions during the year (2023 - none).
22 Cash generated from operations
2024
2023
Surplus for the year
1,574,809
5,735,402
Adjustments for:
Investment income recognised in statement of financial activities
Non-cash legacies
Fair value gains and losses on investments
(691,463)
(1,495,000)
(1,724,467) {1,853,241)
{538,437)
Movements in working capital:
Decreasel(increasel in debtors
Increase in creditors
1,445,189
2,632,834
(2,602,901)
512,905
Cash generated from operations
1,741,902
1,253,728
23 Anatysis of changes in net funds
The charity had no material debt during the year.