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2020-12-31-accounts

THE CYRIL TAYLOR CHARITABLE FOUNDATION (A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

THE CYRIL TAYLOR CHARITABLE FOUNDATION

CONTENTS

Page
Reference and Administrative Details 3
Report of the Trustees (including Strategic Report) 4 – 8
Statement of Trustees' Responsibilities 9
Independent Auditor's Report 10 - 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cash Flows 15
Accounting Policies 16 - 19
Notes to the Financial Statements 20 – 26

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees J M Berry A J Brookes J A Burg P Egan W L Gertz E Hawksworth J Husband C D Joseph T O Kiechle R W Maas M S Rasch C Tucker D G Wilson P Woodthorpe Company Secretary D G Wilson Principal Office & 37 Queen's Gate Registered Office London SW7 5HR Foundation Number 1152058 (England and Wales) Company Number 08524472 (England and Wales) Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Investment Managers Vermeer Partners Quilter Cheviot 130 Jermyn Street One Kingsway London London SW1Y 4UR WC2B 6AN Fransad Gestion SA Fidelity Investments Place de l'Université 7 Operations Company Inc. Case Postale 5054 82 Devonshire Street 1211 Genève 11 Boston MA 02109 Legal Advisors Loeb, Block & Partners LLP Penningtons Manches Cooper LLP 505 Park Avenue 125 Wood Street New York London NY10022 EC2V 7AW

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

REPORT OF THE TRUSTEES

The Trustees present their annual report together with the financial statements and auditor's report of the charitable company for the year 1 January 2020 to 31 December 2020. The report serves the purposes of both a Trustees' report, and a Directors' report under company law.

Structure, Governance and Management Governing document

The Cyril Taylor Charitable Foundation (hereinafter referred to as the Foundation) registered in England and Wales under charity registration number 1152058, is controlled by its governing document, the memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The charitable company was incorporated on 10 May 2013 under registration number 08524472.

Organisational structure

The Foundation Trustees, who are also directors for the purposes of company law, are responsible for the general control and management of the Foundation. The Trustees give their time freely and receive no remuneration or other financial benefits. The Chairman of the Trustees is Stephen Rasch, who was appointed for an initial three year term extended for a further year which expires in July 2021. The Foundation is administered on a daily basis by Debbie Wilson who is also a trustee and employed by American Institute For Foreign Study (UK) Limited (AIFS (UK) Limited). AIFS (UK) Limited is an indirect subsidiary of AIFS Inc., a company that specialises in educational and cultural exchange. William Gertz, a trustee of the Foundation, is also the chairman of AIFS Inc. Debbie Wilson's time and that of a member of finance staff from AIFS (UK) Limited have been donated to the Foundation. Trustees currently meet once a year, but other meetings are convened when required.

Appointment, induction and training of Trustees

The chairman can appoint a new trustee if a vacancy arises. There must be a minimum of 6 and a maximum of 16 Trustees. There are currently 14 Trustees. The level of competence required of a trustee is explained in its memorandum and articles of association. New Trustees are inducted by an existing trustee, briefing from the chairman and trained through regular attendance at meetings as well. All Trustees undertook training at the annual trustees meetings held in July 2018 and July 2019 and annually receive the Essential Trustee published by the Charity Commission.

Third party indemnity provision for Trustees

Qualifying third party indemnity provision is in place for the benefit of all Trustees (who are also directors) of the Foundation at the reporting date and was in place throughout the twelve month period.

Related parties and co-operation with other organisations

The Cyril Taylor Charitable Foundation has been a major donor to Richmond, The American International University in London ('Richmond University'). Richmond University occupies a site on Richmond Hill (Richmond upon Thames) owned by AIFS Inc. as well as two sites in Kensington also owned by AIFS Inc. Richmond vacated the Kensington sites in April 2021 and now only occupies the Hill site as a lease holder.

As a result of Sir Cyril Taylor’s death, the Foundation became entitled to receive the bulk of his estate. This included 99.9% of AIFS Inc A Shares, however due to the nature of the relationship the shares represent an investment in the Foundation. The Foundation receives dividends from AIFS Inc.

Risk management

The Trustees have a duty to identify and review the risks to which the Foundation is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. A number of internal controls have been implemented to provide assurance against fraud and error. The Trustees also consider variability of investment returns, to constitute towards the financial risk of the Foundation. This is mitigated by retaining expert investment managers and having a diversified investment portfolio.

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

REPORT OF THE TRUSTEES (CONTINUED)

Due to the nature of activities that AIFS Inc. has in the student educational and cultural exchange sector, the Covid-19 pandemic has reduced the company’s ability to pay dividends to the Foundation for 2021 and 2022. As a result of the impact Covid-19 will have on the Foundation’s fixed asset investment in AIFS Inc., the Trustees engaged Duff & Phelps to provide a valuation of AIFS Inc. during the pandemic. This valuation report was carried out in July 2020 and based on financial projections at 31 July 2020 and a 99.9% shareholding. Duff & Phelps have valued AIFS Inc. in the range of £156,372,454 to £163,759,553. The average value of £160,066,003 has been used to value AIFS Inc. at 31 December 2020 and is shown as part of the fixed asset investments on the balance sheet. The fall in valuation of the shareholding in AIFS Inc. is considered a significant risk for the Foundation.

Objectives and activities Objectives and aims

The objectives of this Foundation, as set out in the Foundation’s memorandum and articles of association, are as follows:

“To further such charitable purposes and to make donations to such charitable institution, or institutions, at such time, or times, and in such manner as the directors may, in their absolute discretion, think fit.

Without prejudice to the generality of the foregoing, to advance education of the students of Richmond, The American International University in London by the provision of facilities and equipment, faculty and academic programmes, scholarships, endowments and special educational programmes.

For the public, by enabling citizens of the UK and other countries to participate in educational exchanges between those countries and support charities which promote international educational exchange and to make donations to such institutions at such time or times and in such manner as the directors may in their absolution discretion think fit.”

On his death in 2018, Sir Cyril Taylor bequeathed the bulk of his Estate to the Foundation to invest to generate income for the Foundation. The administration of Sir Cyril’s Estate has not yet been completed so the full and final amount of the bequest cannot yet be quantified. The estimated net fair value after fees of the remaining legacy as at 31 December 2020 totals £3,145,937. The major asset of the Estate was the holding of A shares in AIFS Inc which constitutes a 99.9% shareholding in that company. However, the rights of the B shareholders restrict the ability of the Foundation to dispose of its shares in the company, which is why the A shares in AIFS Inc. has been held for investment purposes only and therefore shown on the balance sheet as a fixed asset investment. The shares bequeathed to the Foundation were valued at £195,451,315 as at 29 January 2018 (see note 10). Although beneficial ownership rests with the Foundation, the title to the shares is held by The Cyril J. H. Taylor Capital Trust, New York.

Strategic report

Achievement and performance

During the year ended 31 December 2020, the Trustees made charitable grants of £1,984,331 (2019: £4,315,024), of which £1,600,000 (2019: £3,900,000) was made to Richmond University. The donations made reflect the objective to donate to institutions as Trustees think fit (and which support education, local work with vulnerable people, supporting research into how to improve educational opportunities etc). The trustees understand that Richmond University now considers itself financially secure, independent, more resilient and better equipped to deliver its vision and mission than it has been for decades.

Public benefit

The Trustees, as required charity law, have paid due regard to the Charity Commission’s guidance on providing public benefit while reviewing the Foundation’s aims and objectives, and while deciding what activities the Foundation should undertake and how the donations made will help the Foundation meet its objectives.

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

REPORT OF THE TRUSTEES (CONTINUED)

Financial review

The net income before gains on investments for the year ended 31 December 2020 is £7,927,468 (2019: £5,037,635). Income from donations and legacies totalled £10,024,353 (2019: £7,462,980), this was mainly due to recognising a further portion of the remaining legacy with a value of £9,979,964. Income from investments, which includes dividends received totalled £186,617 (2019: £2,493,033). No dividends were received from AIFS Inc. during the year (2019: £2,328,832). Total expenditure for the year was £2,283,502 (2019: £4,918,378), this includes grants made to institutions totalling £1,984,331 (2019: £4,315,024), the largest of which being made to Richmond University of £1,600,000 (2019: £3,900,000). Total expenditure also includes £100,706 (2019: £476,051) of legal and professional fees in respect of the work involved in dealing with the probate and legacies receivable from Sir Cyril Taylor’s estate. The total loss on investments was £69,012,795 (2019: £19,683,110 gain) including a net loss on the investment of AIFS Inc., amounting to £69,285,958 (2019: £19,874,478 gain) and a net gain on listed fixed asset investments of £273,163 (2019: £191,368 loss).

The Covid 19 epidemic will significantly reduce the Foundation’s income for 2021 and 2022. The business of AIFS Inc is largely the arrangement of international cultural and educational exchanges for students and young adults, so ongoing travel restrictions, border closures and visa suspensions have severely damaged its operations. Whilst it is a strong business, the lifting of travel restrictions to the degree needed to enable groups of students to travel internationally and the restoration of public confidence in such travel is likely to take some time. Accordingly, AIFS Inc. is unlikely to be in a position to pay dividends to the Foundation in 2021 or 2022. Similarly, the income from the Foundation’s investment portfolio of listed investments in the current year is likely to be substantially lower than in the previous year as companies recover gradually from the effects of the virus.

The Trustees are nevertheless of the view that the financial position of the Foundation remains strong.

Reserves policy

The trustees have been advised that the shares in AIFS Inc bequeathed from Sir Cyril Taylor constitute permanent endowment. The trustees have resolved to regard the remainder of the bequest from Sir Cyril as expendable endowment not available for distribution. The trustees do not see a need at the present time to build up further reserves.

As at 31 December 2020, the Foundation has total reserves of £179,796,871 (2019: £240,882,198) of which £160,066,003 (2019: £229,351,961) was represented by the permanent endowment fund.

Following the death of Sir Cyril Taylor, his donations to the Foundation have ceased leaving the Foundation reliant on its investments to continue to pay substantial dividends to enable the Foundation to pursue its objectives.

During the year to 31 December 2020, the investment income of the Foundation was insufficient to fund its grants and donations and it has decided to exercise caution as to the extent of donations until the medium term effect of the Covid 19 epidemic becomes clearer.

This will include the remaining legacies that are yet to be transferred to the Foundation, dividends from AIFS Inc. and fixed asset investment growth. As mentioned earlier, it is unlikely AIFS Inc. will be able to pay dividends in 2021 or 2022 and fixed asset investment growth will take time to recover from the effects of the pandemic. Current general unrestricted reserves are £19,730,868 (2019: £11,530,237). The increase was mainly due to recognising part of the remaining legacy at a transfer value of £9,979,964.

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

REPORT OF THE TRUSTEES (CONTINUED)

Investment policy and objectives

The objective of the Foundation's investment policy is to achieve a rising income for use in accordance with the Foundation's principal objective. The value of unquoted fixed asset investments decreased by £58,926,614, this was due mainly to the fall in value of AIFS Inc., as the valuation undertaken in July 2020 considered the effect of Covid 19. Unrealised gains on the quoted fixed asset investments totalled £302,342 during the year and this is considered a good result compared to current interest rates. The revaluation of AIFS Inc., amounted to an unrealised loss of £62,205,226 (2019: £27,794,873 gain) and a foreign exchange loss of £7,080,732 (2019: £7,920,395) for the year ended 31 December 2020.

The investment committee will continue reviewing annually with investment managers. Through a diversified portfolio Trustees hope to contain any losses and be poised for growth. Investment performance is measured against certain benchmark indices. The Foundation only trades in ethical securities.

Grant making policy and fundraising

The Trustees apply the funds of the Foundation at their discretion and in accordance with the charitable purpose and objectives of the Foundation. The grants committee is particularly interested in grant requests from charities which offer scholarships and special educational programmes for young people and students; as well as from those whose activities enhance the life chances of young people and students who may be socially or financially disadvantaged. The grants committee, which is made up of 10 Trustees, and meets once a year typically in May, receives proposals for grants both from charities and from the other Trustees. The proposals are then evaluated against its criteria above, and recommendations made to the main Board for approval at its annual meeting. The Foundation does not undertake any fundraising activities and it uses no third parties to do so either. Refer to note 5 for details of causes supported during the year to 31 December 2020.

Pay policy for senior staff

The directors consider the board of directors, who are the Foundation’s Trustees, the key management personnel of the Foundation in charge of directing and controlling, running and operating the Foundation on a day to day basis. All directors give up their time freely and no director received remuneration in the year. There is no senior management team.

Principal risks and uncertainties

The main form of financial risk faced by the Foundation is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors, and adverse foreign exchange movements. This is mitigated by investing in a diversified investment portfolio.

There is also a short term risk both to income and investment values created by the Covid 19 epidemic. The Foundation is not able to significantly mitigate this risk but believes that it has sufficient resources to alleviate it.

Plans for future periods

As mentioned above, following the death of Sir Cyril Taylor, the Foundation is reliant on the generation of income from its investment portfolio, particularly from AIFS Inc, to enable the Foundation to pursue its objectives. It expects income in 2021 and 2022 to be significantly impacted but to recover thereafter.

Going concern

The Trustees assess whether the application of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Foundation to continue as a going concern. The Trustees make this assessment in respect of a period of at least 12 months from the date of authorisation for issue of these financial statements and have concluded that as the Foundation has adequate resources to continue in operational existence and for the foreseeable future there are no material uncertainties about the Foundation’s ability to continue as a going concern. Thus, they continue to adopt the going concern basis.

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

REPORT OF THE TRUSTEES (CONTINUED)

In making the assessment the Trustees have considered that although AIFS Inc. is unlikely to be able to pay dividends to the Foundation in 2021 or 2022 and the income from other investments is likely to be substantially lower than in previous years, as companies recover gradually from the effects of the virus the Foundation will be able to withstand the impact of this by reducing its expenditure. Any grants payable from the Foundation are on a discretionary basis and their quantum is reviewed annually. The Foundation has unrestricted general reserves, that are held in highly liquid assets, totalling £19,730,868 as at 31 December 2020 and the trustees consider that this level of reserves is adequate for the needs of the Foundation.

Post balance sheet events

The Covid-19 epidemic is likely to significantly reduce the Foundation’s income for 2021 and 2022. The business of AIFS Inc. is largely the arrangement of international cultural and educational exchanges for students and young adults, so ongoing travel restrictions, border closures and visa suspensions have severely damaged its operations.

Auditor

In March 2021 RSM UK Audit LLP resigned as auditors and Buzzacott LLP were appointed. The trustees resolved that Buzzacott LLP be appointed auditor with effect from 20 April 2021, in accordance with the provisions of the Companies Act. Buzzacott LLP have expressed their willingness to continue in office.

In so far as the Trustees are aware at the time of approving our Trustees’ annual report:

The Report of the Trustees, which includes the directors report as required by company law and the strategic report, is approved by the Trustees in their capacity as the directors.

ON BEHALF OF THE BOARD

…………………………. …………………………. M S Rasch Date Trustee

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

For the year ended 31 December 2019

The Trustees (who are also directors of The Cyril Taylor Charitable Foundation for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Foundation/company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

BY ORDER OF THE BOARD OF TRUSTEES

…………………………. …………………………. M S Rasch Date Trustee

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CYRIL TAYLOR CHARITABLE FOUNDATION

Opinion

We have audited the accounts of The Cyril Taylor Charitable Foundation (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the accounts 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 charitable company’s ability to continue as a going concern for a period of at least twelve months from when the accounts 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 trustees are responsible for the other information contained within the annual report. 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.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CYRIL TAYLOR CHARITABLE FOUNDATION (CONTINUED)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CYRIL TAYLOR CHARITABLE FOUNDATION (CONTINUED)

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

Use of this 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 state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Edward Finch (Senior Statutory Auditor) For and behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

………………………………… Date

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account) For the year ended 31 December 2020

Notes
INCOME FROM:
1
Investments
2
TOTAL INCOME
EXPENDITURE ON:
Raising funds
3
Charitable activities
4
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE) AND NET
MOVEMENT IN FUNDS BEFORE GAINS AND
LOSSES ON INVESTMENTS
Net loss on sale of investment
properties
9
Net gains/(loss) on other investments
10
NET INCOME/(EXPENDITURE)
Reconciliation of funds:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
11
Donations and legacies		 Unrestricted
Funds
2020
£
10,024,353
186,617
10,210,970
84,311
2,199,191
2,283,502
7,927,468
-
273,163
8,200,631
11,530,237
19,730,868		 Endowment
Funds
2020
£
-
-
-
-
-
-
-
-
(69,285,958)
(69,285,958)
229,351,961
160,066,003		 Total
Total
Year ended
31 December
2020
2019
£
£
10,024,353
7,462,980
186,617
2,493,033
10,210,970
9,956,013
84,311
29,445
2,199,191
4,888,933
2,283,502
4,918,378
7,927,468
5,037,635
-
(127,000)
(69,012,795)
19,683,110
(61,085,327)
24,593,745
240,882,198
216,288,453
179,796,871
240,882,198

The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

BALANCE SHEET At 31 December 2020

Company number: 08524472 Registered charity number: 1152058

Notes
FIXED ASSETS
Investment properties
9
Investments
10
CURRENT ASSETS
Sundry debtors
Cash at bank and in hand
CURRENT LIABILITIES
CREDITORS: Amounts falling due
within one year
Trade creditors
Accruals
NET CURRENT ASSETS
NET ASSETS
THE FUNDS OF THE FOUNDATION:
ENDOWMENT FUNDS
11
UNRESTRICTED FUNDS
General Funds
11
TOTAL FUNDS
11		 2020
£
-
178,654,041
10,828
1,218,347
1,229,175
14,965
71,380
86,345		 2020
2019
2019
£
£
£
-
237,580,655
178,654,041
237,580,655
5,331
3,427,647
3,432,978
465
130,970
131,435
1,142,830
3,301,543
179,796,871
240,882,198
160,066,003
229,351,961
19,730,868
11,530,237
179,796,871
240,882,198

The financial statements on pages 13 to 26 were approved by the Trustees and authorised for issue on …………………......………... and are signed on their behalf by:

………………………….

M S Rasch Trustee

The trustees have been advised that the shares in AIFS Inc bequeathed from Sir Cyril Taylor constitute permanent endowment. The trustees have resolved to regard the remainder of the bequest from Sir Cyril as expendable endowment not available for distribution.

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

STATEMENT OF CASH FLOWS

For the year ended 31 December 2020

Notes
CASH FLOWS FROM OPERATING ACTIVITIES
Net (expenditure)/ income for the financial year
Adjustments for:
Interest receivable
2
Dividend income
2
Loss on sale of properties
9
Net loss/(gains) on investments
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Donation of investments from Sir Cyril Taylor's Estate
1
NET CASH USED IN OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments
Proceeds from sale of properties
Proceeds from sale of investments
Movement in investment cash account
10
Interest
2
Dividends received
2
NET CASH GENERATED FROM INVESTING ACTIVITES
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
ANALYSIS OF CHANGE IN NET FUNDS
1 January
2020
£
Cash
3,427,647		 Year ended
Year ended
2020
2019
£
£
(61,085,327)
24,593,745
(81,387)
(136,986)
(105,230)
(2,356,047)
-
127,000
69,012,795
(19,683,110)
(5,497)
2,212
(45,090)
93,853
(9,979,964)
(7,424,115)
(2,289,700)
(4,783,448)
(10,456,362)
-
-
5,673,000
8,195,686
-
2,154,459
10,121
81,387
136,986
105,230
2,356,047
80,400
8,176,154
(2,209,300)
3,392,706
3,427,647
34,941
1,218,347
3,427,647
Cash Flows
31 December
2020
£
£
(2,209,300)
1,218,347

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

ACCOUNTING POLICIES

For the year ended 31 December 2020

The financial statements have been prepared in accordance with applicable UK accounting standards and the Companies Act 2006. The principal accounting policies adopted, judgements and key sources of estimation in the preparation of the financial statements are as follows:

BASIS OF PREPARATION

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Companies Act 2006.

The Foundation meets the definition of a public benefit entity under FRS 102.

The financial statements have been rounded up or down to the nearest whole pound and the reporting and functional currency is British pounds.

GOING CONCERN

The Trustees assess whether the application of going concern is appropriate, i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Foundation to continue as a going concern. The Trustees make this assessment in respect of a period of at least 12 months from the date of authorisation for issue of these financial statements and have concluded that as the Foundation has adequate resources to continue in operational existence and for the foreseeable future there are no material uncertainties about the Foundation’s ability to continue as a going concern. Thus, they continue to adopt the going concern basis.

In making the assessment the Trustees have considered that although AIFS Inc. is unlikely to be able to pay dividends to the Foundation in 2021 or 2022 and the income from other investments is likely to be substantially lower than in previous years, as companies recover gradually from the effects of the virus the Foundation will be able to withstand the impact of this by reducing its expenditure. Any grants payable from the Foundation are on a discretionary basis and their quantum is reviewed annually. The Foundation has unrestricted general reserves, that are held in highly liquid assets, totalling £19,730,868 as at 31 December 2020 and the trustees consider that this level of reserves is adequate for the needs of the Foundation.

UNRESTRICTED FUNDS - GENERAL

Unrestricted general funds comprise of funds which the Trustees are free to use for any purpose in the furtherance of the charitable objectives and which have not been designated for other purposes.

ENDOWMENT FUNDS

The endowment funds are considered to be permanent endowment funds. Due to a constructive trust, the Foundation currently has no power to convert the capital element of the original gift into income. The permanent endowment funds are required to be held by the Foundation as the related investments cannot be sold unless the Foundation receives specific investment advice to do so. At this point, the related investments would become unrestricted and the proceeds could then lawfully be expended. Income generated by the permanent endowment assets is available for use for the general purposes of the Foundation and as such is treated as unrestricted.

INCOMING RESOURCES

All income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. All incoming resources are included on the Statement of Financial Activities.

Page | 16

THE CYRIL TAYLOR CHARITABLE FOUNDATION

ACCOUNTING POLICIES (CONTINUED) For the year ended 31 December 2020

LEGACY INCOME

For legacy income, entitlement is taken as the earlier of the date on which either the Foundation is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the Foundation that a distribution will be made, or when a distribution is received from the estate.

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the Foundation has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Foundation or the Foundation is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material – see note 16.

INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Foundation; this is normally upon notification of the interest paid or payable by the bank.

DONATED SERVICES AND FACILITIES

Donated services or facilities are recognised as income when any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Foundation of the item is probable and that economic benefit can be measured reliably.

On receipt, donated services and facilities are recognised on the basis of the value of the gift to the Foundation which is the amount the Foundation would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

EXPENDITURE RECOGNITION

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Foundation to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

GRANTS PAYABLE

Grants payable are included in the Statement of Financial Activities when they have been approved for payment or the recipient has been informed of this decision.

IRRECOVERABLE VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

ALLOCATION OF SUPPORT AND GOVERNANCE COSTS

Support costs comprise governance costs and other support costs and have been allocated to charitable activities. Governance costs comprise all costs involving the public accountability of the Foundation and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

The allocation of support and governance costs is analysed in note 7.

COSTS OF RAISING FUNDS

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

CHARITABLE ACTIVITIES

Costs of charitable activities includes charitable donations (grants), governance and other support costs as shown in note 5.

TAXATION

The Foundation is exempt from tax on income and gains falling under section 466 to 493 of the Corporation Tax Act 2010, to the extent that these are applied to its charitable objects.

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

ACCOUNTING POLICIES (CONTINUED) For the year ended 31 December 2020

INVESTMENT PROPERTIES

Investment properties are held for capital appreciation, they were initially recognised in the financial statements at fair value on the date the assets were transferred to the Foundation, and subsequently measured at fair value. Changes in fair value are recognised in the statement of financial activities. On disposal of an investment property, it shall be derecognised. The difference between the net disposal proceeds and the carrying value is recognised in the income statement in the period of the disposal.

FIXED ASSET INVESTMENTS

Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction value, unless they are a gift that is initially recognised at its fair value at the date of the gift. Fixed asset investments are all subsequently measured at their fair value as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. The fixed asset investments are also revalued using the closing spot rate at the balance sheet date and any foreign exchange gain or loss is included in the Statement of Financial Activities.

The Foundation only trades in ethical investment portfolios and does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the Foundation is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

INVESTMENT GAINS AND LOSSES

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.

Unrealised gains and losses on investments are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are amalgamated in the Statement of Financial Activities.

FINANCIAL INSTRUMENTS

The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. The policy for investments is as described above, other basic financial instruments, which include other debtors, are initially recognised at transaction value and subsequently measured at their settlement value.

CASH AT BANK AND IN HAND

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

FOREIGN EXCHANGE

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

All translation differences are taken to the Statement of Financial Activities, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

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THE CYRIL TAYLOR CHARITABLE FOUNDATION

ACCOUNTING POLICIES (CONTINUED) For the year ended 31 December 2020

CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

As a result of Sir Cyril Taylor’s death, the Foundation became entitled to receive the bulk of his estate, including 99.9% of the unlisted shares of AIFS Inc., which is incorporated in the United States under registration number EIN06-0890698-DEL. The Trustees have assessed whether this entity should be consolidated into the financial statements of the Foundation as a subsidiary undertaking. The Trustees have concluded that the subsidiary should be excluded from any consolidated financial statements on the basis that the interest in the subsidiary is held as part of the investment portfolio, and the subsidiary has not previously been consolidated in the financial statements of the Foundation. The Foundation holds the investment for capital appreciation purposes as part of an investment portfolio rather than as a medium through which to conduct business. The Foundation has no power or influence over the day to day operational or strategic decisions of the AIFS Inc. and in accordance with 9.9C (a) and 9.9 (b) of FRS 102 the subsidiary is excluded from consolidation and is held as a fixed asset investment measured at its fair value with any changes in fair value recognised in income and expenditure.

The Trustees have exercised judgement over the valuation of unlisted shares included within fixed asset investments (note 10) The investment in AIFS was valued by Duff & Phelps Limited, an independent valuer, at 29 January 2018, 31 December 2018, 31 December 2019 and 31 July 2020 using an approach that provides an estimation of the fair value of an investment based on the expectations about the cashflows that an investment generates over time. The valuation undertaken in July 2020 was to show the fall in valuation due to Covid 19, this valuation has been used to value AIFS Inc. at 31 December 2020. The method Duff & Phelps Limited used to value AIFS Inc. is based on the income approach for 31 December 2020, which relied on management financial projections as at 31 July 2020 (for 31 December 2019 financial projections for the years ended 31 December 2020 and 2021). Duff & Phelps Limited made several assumptions when valuing AIFS Inc., the most significant one being extending management forecast projections to 2026 (2019: 2024). The Trustees consider the valuation method applied to be appropriate on the basis of available information.

As at 31 December 2020, the Trustees are aware of further assets, with an estimated net fair value after fees of £3,145,937, that are likely to be bequeathed to the Foundation from Sir Cyril Taylor's Estate. However, at the year end the estate accounts have not yet been finalised. As such, the Trustees feel that there is sufficient uncertainty as to the amounts that are likely to be ultimately realised by the Foundation from the remaining legacy due to potential liabilities to the IRS and HMRC. As the value cannot yet be reliably measured these additional assets have not been recognised in these financial statements.

Page | 19

THE CYRIL TAYLOR CHARITABLE FOUNDATION

NOTES TO THE FINACIAL STATEMENTS

For the year ended 31 December 2020

1 DONATIONS AND LEGACIES

Legacies
Donated services in kind		 2020
2019
£
£
9,979,964
7,424,115
44,389
38,865
10,024,353
7,462,980

The income from legacies and donated services in kind of £10,024,353 (2019: £7,462,980) was unrestricted and £nil (2019: £nil) was endowment.

Bank and other interest receivable
Income from listed investments
Income from unlisted investments		 2020
2019
£
£
81,387
136,986
105,230
27,215
-
2,328,832
186,617
2,493,033

The investment income of £186,613 (2019: £2,493,033) was unrestricted.

3
COSTS OF RAISING FUNDS
Investment portfolio management fees
The costs of raising funds of £48,311 (2019: £29,445) was unrestricted.		 2020
2019
£
£
84,311
29,445
Grants
Other support costs
Governance costs		 2020
2019
£
£
1,984,331
4,315,024
44,390
41,147
170,470
532,762
2,199,191
4,888,933

The costs of charitable activities of £2,194,696 (2019: £4,888,933) was unrestricted.

Page | 20

THE CYRIL TAYLOR CHARITABLE FOUNDATION

NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020

5
ANALYSIS OF GRANTS
10,000 Degrees
Scholarship fund for graduating high school seniors from challenging backgrounds
AFS Intercultural Programmes: Sir Cyril Taylor Young Leaders Awards
Expand access to intercultural education with scholarships and outreach
AIFS Foundation
Scholarships for international students to come to US on AYA programme
Article 1/Waging Peace
Helping Sudanese genocide survivors rebuild their lives in UK
Burien Montessori School
Financial need for needy immigrant children
BUTTLE UK
Supporting boarding school places for young people
Friends of Atwood
Sensory & Learning Garden for children at Atwood Primary Academy
Friends of Beit Issie Shapiro (UK)
Relief of mentally handicapped/developmentally disabled children in Israel
Fulbright CT Memorial Award
Granting highly qualified scholars financial support to study abroad
Fulbright Foundation UK
Granting highly qualified scholars financial support to study abroad
Fund Education Abroad
Scholarships to under-represented American college students to study in the UK
Institute International Education
Emergency scholarships for international students in the US
Lee Abbey International Students' Club
Running a students' hostel for students of all nationalities.
National Society for the Gifted & Talented
SIG scholarships to attend gifted and talented summer schools
National Society for the Gifted & Talented
Teacher training financial assistance
Norden Farm
Sum-Art Time creative workshops for children
Richmond University
Scholarship support & enhancing student facilities
The Agahozo Shalom Youth Village
Helping young Rwandans rebuild lives
6
GOVERNANCE AND SUPPORT COSTS - EXPENDITURE
Support costs:
Staff costs - donated
Rent & Rates
Utilities		 2020
2019
£
£
-
4,132
38,462
-
72,769
33,884
15,000
10,000
-
3,876
22,500
9,000
-
10,000
-
4,000
-
34,615
69,231
74,380
38,462
41,322
76,922
82,645
43,485
-
-
82,645
-
12,893
7,500
7,500
1,600,000
3,900,000
-
4,132
1,984,331
4,315,024
2020
2019
£
£
39,794
35,186
4,492
4,095
104
1,866
44,390
41,147

Page | 21

THE CYRIL TAYLOR CHARITABLE FOUNDATION

NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020

Governance costs:
Auditors remuneration:
Audit fees - Buzzacott
2019 Audit, Accounting & Legal fees - RSM
Legal & Professional fees
Administrative expenses
Govenamce and support costs of £170,470 (2019: £532,762) was unrestricted.
7
TOTAL EXPENDITURE
Net income/(expenditure) for the period is stated after charging:
Auditors remuneration:
- Audit fees - Buzzacott
- 2019 Audit, Accounting & Legal fees - RSM
Legal & Professional fees
Loss on sale of investment properties		 2020
2019
£
£
12,000
-
35,147
43,334
100,706
476,051
22,617
13,377
170,470
532,762
2020
2019
£
£
12,000
-
35,147
43,334
100,706
476,051
-
127,000

There were no persons employed by the Foundation during the year ended 31 December 2020 (2019: Nil).

8 TRUSTEES' EXPENSES AND REMUNERATION

Trustees' travel expenses reimbursed for the year ended 31 December 2020 amounted to £Nil (2019: £Nil), this represents 0 trustee out of 14 trustees (2019: 0 out of 14).

All trustees are considered key management personnel. No trustees were paid remuneration or received other benefits from an employment with the Foundation or from a related entity (2019: Nil).

9
INVESTMENT PROPERTIES
At 1 January 2020
Additions during the year
Disposals during the year
At 31 December 2020		 Land
£
-
-
-
-		 Buildings
Total
£
£
-
-
-
-
-
-
-
-

Investment properties were initially recognised using the probate value from Sir Cyril Taylor's estate on the date of transfer to the Foundation. The investment properties were sold in the year ended 31 December 2019, realising a loss of £127,000.

10
Unlisted investments
Quoted investments
FIXED ASSET INVESTMENTS		 2020
2019
£
£
160,066,003
229,351,961
18,588,038
8,228,694
178,654,041
237,580,655

Page | 22

THE CYRIL TAYLOR CHARITABLE FOUNDATION

NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020

UNLISTED - AIFS Inc.
FAIR VALUE
At 1 January
Unrealised (losses)/gains on investments
Foreign exchange losses on investments
At 31 December
QUOTED
FAIR VALUE
At 1 January
Transfer in
Transfer from Sir Cyril Taylor's estate
Additions at cost
Disposals at carrying value
Unrealised gains on investments
Foreign exchange losses on investments
Movement in cash accounts
Fair value at 31 December
Quoted investments are analysed by class as follows:
Fixed interest- UK
Fixed interest- Overseas
Equities
Cash
All investments are carried at fair value		 2020
2019
£
£
229,351,961
209,477,483
(62,205,226)
27,794,873
(7,080,732)
(7,920,395)
160,066,003
229,351,961
2020
2019
£
£
8,228,694
-
-
1,006,066
9,979,964
7,424,115
10,456,362
534,276
28,665,020
8,964,457
(7,345,440)
(328,225)
302,342
224,894
(879,425)
(586,778)
20,742,497
8,274,348
(2,154,459)
(45,654)
18,588,038
8,228,694
2020
2019
£
£
-
101,297
7,165,479
3,720,944
8,398,436
3,698,941
3,024,123
707,512
18,588,038
8,228,694

Unlisted investments

As a result of Sir Cyril Taylor’s death, the Foundation became entitled to receive the bulk of his estate, this includes 99.9% of the unlisted shares of AIFS Inc, which was incorporated in the United States under registration number EIN06-0890698-DEL. The investment was transferred at a cost of £nil and was initially recognised at the fair value of the shares as at 29 January 2018 and the corresponding bequeathed amount was recognised as income from legacies in the Statement of Financial Activities. This valuation was updated at 31 December 2018, 31 December 2019 and 31 July 2020 any subsequent foreign exchange and fair value gains and losses have been recognised as unrealised losses and gains within net gains on investments in the Statement of Financial Activities.

All fixed asset investments are carried at their fair value. The investment in AIFS was valued by Duff & Phelps Limited, an independent valuer, at 29 January 2018, 31 December 2018, 31 December 2019 and 31 July 2020 using an approach that provides an estimation of the fair value of an investment based on the expectations about the cashflows that an investment generates over time. The valuation undertaken in July 2020 was to show the fall in valuation due to Covid 19, this valuation has been used to value AIFS Inc. at 31 December 2020. The method Duff & Phelps Limited used to value AIFS Inc. is based on the income approach for 31 December 2020, which relied on management financial projections as at 31 July 2020 (for 31 December 2019 financial projections for the years ended 31 December 2020 and 2021). Duff & Phelps Limited made several assumptions when valuing AIFS Inc., the most significant one being extending management forecast projections to 2026 (2019: 2024).

Page | 23

THE CYRIL TAYLOR CHARITABLE FOUNDATION

NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020

Quoted investments

Quoted investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets. Holdings in common investment funds, unit trusts and open ended investments companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

11 ANAYLSIS OF CHARITABLE FUNDS

1 January
2020
£
Endowment Funds
229,351,961
Unrestricted Funds
General Funds
11,530,237
240,882,198
1 January
2019
£
Endowment Funds
209,477,483
Unrestricted Funds
General Funds
6,810,970
216,288,453
ANAYLSIS OF NET ASSETS BETWEEN FUNDS
Fixed asset investments
Cash at bank and in hand
Current assets
Current liabilities
Total		 Incoming
resources
£
-
10,210,970
10,210,970
Incoming
resources
£
-
9,956,013
9,956,013		 Resources
expended
£
-
(2,283,502)
(2,283,502)
Resources
expended
£
-
(4,918,378)
(4,918,378)
Endowment
Fund
£
160,066,003
-
-
-
160,066,003		 Net gains
31 December
(losses)
2020
£
£
(69,285,958)
160,066,003
-
273,163
19,730,868
(69,012,795)
179,796,871
Net
31 December
gains
2019
£
£
19,874,478
229,351,961
(318,368)
11,530,237
19,556,110
240,882,198
General
Total
Fund
31 Dec 2020
£
£
18,588,038
178,654,041
1,218,347
1,218,347
10,828
10,828
(86,345)
(86,345)
19,730,868
179,796,871

12 ANAYLSIS OF NET ASSETS BETWEEN FUNDS

Page | 24

THE CYRIL TAYLOR CHARITABLE FOUNDATION

NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020

Fixed asset investments
Cash at bank and in hand
Current assets
Current liabilities
Total		 Endowment
Fund
£
229,351,961
-
-
-
229,351,961		 General
Total
Fund
31 Dec 2019
£
£
8,228,694
237,580,655
3,427,647
3,427,647
5,331
5,331
(131,435)
(131,435)
11,530,237
240,882,198

13 RELATED PARTY TRANSACTIONS

As a result of Sir Cyril Taylor’s death, the Foundation became entitled to receive the bulk of his estate. This includes 99.9% of AIFS Inc A Shares, valued at £195,451,315 as at 29 January 2018 (see note 10). No dividends were received from AIFS Inc. during the year (2019: £2,328,832 ).

Trustees declare any conflicts of interest in writing through their annual declarations of interest, and in addition at the beginning of any meeting Trustees declare any interest, and do not take part in any discussion, where they may be conflicted.

During the year £1,600,000 (2019: £3,600,000) has been granted to Richmond University in which Clifford Joseph was also a trustee during the year. Michael Berry, Ailsa Brookes and Stephen Rasch resigned as trustees of Richmond University in 2019. Clifford Joseph resigned as a trustee of Richmond University in March 2020.

During the year, the Foundation received donated services in respect of staff time, rent, rates and utilities from The American Institute of Foreign Study (UK) Ltd., an organisation under common Trusteeship to the value of £44,389 (2019: £38,856). At the balance sheet date, £Nil was owed to the AIFS (UK) Ltd. (2019: £Nil).

During the year the Foundation received legal advice from Loeb, Block & Partners LLP at a cost of £72,782 (2019: £103,201) in which one of the partners, Stephen Rasch, is also the Chairman of the Foundation. During the year the Foundation received legal advice from Clifford Joseph at a cost of £5,600 (2019: £1,200) and made a donation of £7,500 (2019: £7,500) to Norden Farm. Clifford Joseph, is also a trustee of the Foundation and Norden Farm.

During the year the Foundation donated £Nil (2019: £95,538) to the National Society for the Gifted & Talented, in which William Gertz and Jack Burg are also trustees. During the year the Foundation donated £72,769 (2019: £33,884) to the AIFS Foundation, in which William Gertz, Jack Burg and Thomas Kiechle are also trustees.

14 LEGAL STATUS OF THE FOUNDATION

The Foundation is a private charitable company limited by guarantee and has no share capital, its registered address can be found on page 3. In the event of the Foundation being wound up, the liability in respect of the guarantee is limited to £1 per member while he/she remains a member or within one year after he/she ceases to be a member.

15 FINANCIAL INSTRUMENTS

The carrying amount of the Foundation's financial instruments were:
Financial assets measured at fair value:
Fixed asset investments		 2020
2019
£
£
178,654,041
237,580,655
178,654,041
237,580,655

Page | 25

THE CYRIL TAYLOR CHARITABLE FOUNDATION

NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020

As at 31 December 2020, the Trustees are aware of further assets, with an estimated net fair value after fees at 31 December 2020 of £3,145,937 that are likely to be bequeathed to the Foundation from Sir Cyril Taylor's Estate. However, at the year end the estate accounts have not yet been finalised. As such, the Trustees feel that there is sufficient uncertainty as to the amounts that are likely to be ultimately realised by the Foundation from the remaining legacy due to potential liabilities to the IRS and HMRC. As the value cannot yet be reliably measured these additional assets have not been recognised in these financial statements.

17 POST BALANCE SHEET EVENTS

The Covid-19 epidemic is likely to significantly reduce the Foundation’s income for 2021 and 2022. The business of AIFS Inc. is largely the arrangement of international cultural and educational exchanges for students and young adults, so ongoing travel restrictions, border closures and visa suspensions have severely damaged its operations.

Page | 26