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2022-12-31-accounts

Charity registration number 1164682

Company registration number 09802468 (England and Wales)

THE STONE FAMILY FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

THE STONE FAMILY FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr J K Stone (Chairman)
Mr C H Edwards
Mr D J Steinegger
Charity number 1164682
Company number 09802468
Registered office 130 Wood Street
London
EC2V 6DL
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL

THE STONE FAMILY FOUNDATION

CONTENTS

Page
Statement of trustees' responsibilities 1
Trustees' report 2 - 7
Independent auditor's report 8 - 11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 26

THE STONE FAMILY FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees, who are also the directors of The Stone Family Foundation 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 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 charity and of the income and expenditure of the charitable company for that year.

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

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.

In so far as the trustees are aware:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

THE STONE FAMILY FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of 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).

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 applicable laws, 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)".

Objectives and activities Charitable objectives

The charity's principal objective is as follows:

To relieve persons, in any part of the world, who are in conditions of need, hardship or distress (including starvation, sickness or any disability or affliction) and primarily, but not exclusively, when such need, hardship, or distress is the result of local, national, or international disaster, war or civil disturbance or by reason of their social and economic circumstances.

In furtherance of the objects the trustees may make grants, donations and social investments to and in such institutions, foundations and trusts as they think fit, that are exclusively charitable according to the law of England and Wales.

When setting the objectives and planning the work of the charity for the period, the trustees have given careful consideration to the Charity Commission's general guidance on public benefit.

Listed and unlisted investments policy

There are no restrictions on the charity's power to invest and the investment strategy is agreed between the trustees and the investment managers and is regularly reviewed. It is the subject of a policy statement which has been completed by the trustees and forms an integral part of the agreement with the investment managers to provide investment management services.

The fundamental aim of the investment strategy is to achieve a target return agreed with the trustees and allowing for the current economic climate. To achieve the Foundation's objectives, the investment managers agree an appropriate level of risk for the portfolio and a suitable asset allocation is determined. For each asset class, there is a range around the proposed allocation to allow the investment managers to take action in light of prevailing or expected economic and market conditions. The performance of the portfolio is assessed against an inflation-linked benchmark.

The investment managers regularly report to and meet with the trustees to provide information regarding the performance of the portfolio, comparison against the benchmark and general market issues.

THE STONE FAMILY FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Grant making policy

In pursuance of its objectives, the charity's income and, if considered appropriate, reserves, are applied in in supporting organisations, initiatives and enterprises that pursue objectives which further the charity's objectives.

The trustees apply funds through grants, loans and social investments. These are directed towards the relief of poverty, hardship or distress in accordance with the charity's objects.

Applications for grants, loans or social investments must be in writing, and trustees seek the completion of formal terms and conditions. An updated grant agreement and impact investment contract, developed in late 2020 and early 2021 to ensure compliance with the latest relevant legislation, have been used throughout 2022. The management team plan to review and revise where appropriate all internal systems and processes in 2023.

Acknowledgement of receipt of funding is required after the signing of a formal agreement. Additional verification of bank details and, where relevant, common reporting forms are required. Financial reporting of expenditure is common, and trustees and staff will ask for copies of receipts for expenditure to be provided where relevant.

All grants and investments are subject to ongoing monitoring, and further instalments of funds are only released subject to milestones being reached within pre-agreed timelines.

Strategic report

The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report.

Achievements and performance Review of Activities

During the period under review the trustees continued to support enterprises and projects, and at the same time committed to support several new innovative organisations which met the charity’s aims and objectives.

The Foundation has three portfolios – one with an international focus which makes grants and social investments in water and sanitation enterprises and enterprise models in Africa and Asia; and two UK focused portfolios which support organisations working in the mental health and disadvantaged youth sectors. The strategies for each portfolio differ, and each has continued to expand its activities and impact following revisions in 2017.

In determining which organisations to support, the management team of the Foundation carry out scoping work and analysis to identify and carry out due diligence on potential beneficiary organisations in sanitation and water. New Philanthropy Capital (NPC) are contracted to carry out this work for the two UK focused portfolios. The trustees were also able to apply experience from working with organisations over a long period of time.

The trustees receive regular reports from the management team and NPC based on performance monitoring of grantees against milestones and deliverables agreed at the outset of the grant.

THE STONE FAMILY FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

WASH

In the water and sanitation portfolio, the Foundation shifted its enterprise-focused strategy in 2022 to focus on increasing access to safe water in the home. It also identified how non-financial support can be provided alongside funding to support the development and scaling of these organisations.

In addition, the Foundation continued to make strategic impact investments to support the water sector by supporting research, subsidy programmes, market collaboration and to enable new finance to flow into the sector.

Key grants and investments made in the year included continued support to enterprises in Africa and Asia, specifically for piped water enterprises in Cambodia, Sierra Leone, Ghana and Kenya. 2022 also saw some delayed impact of COVID-19 on organisations within the portfolio due to sporadic lockdowns and travel restrictions.

In 2019 the Foundation worked in partnership with iDE Cambodia and the United States Agency for International Development (USAID) to launch the first Development Impact Bond (DIB) in sanitation in November 2019. The Rural Sanitation in Cambodia DIB aims to eradicate the high rates of open defecation in the country and accelerate the Cambodian government’s efforts to reach universal sanitation. Progress with the DIB in the reporting period has continued to be strong, 1,500 Cambodian villages now claim defecation free status.

The Foundation continued to provide loans to private water operators that increase access to safe water for rural Cambodians in partnership with a Cambodian Bank that acts as an intermediary. Over 27 loans have now been issued and almost 90,000 new households have been connected. Support to operators has also been provided in sales and marketing, engineering design and financial management. Further expansion is expected in 2023.

Total WASH grants amounted to £4.62M, and in addition the trustees approved new impact investments and concessionary loans of £2.13M

UK Portfolios

The Stone Family Foundation made a total of £2.2m in grants across its UK based portfolios in 2022. One new grantee, Making the Leap, was added to the disadvantaged youth portfolio; no new grantees were added to the mental health portfolio.

As an example of impact from the disadvantaged youth portfolio, the Foundation supported The Tutor Trust with an unrestricted core costs grant of £120,000. The Tutor Trust recruits and trains university students and recent graduates as paid tutors, who provide small-group and one-to-one tuition in maths, english and science to primary and secondary school pupils. Tutor Trust is a lead provider for the National Tutoring Programme (NTP) - a government initiative to help disadvantaged pupils whose education was affected by Covid-19 lockdowns. Because of this, it has significantly exceeded its targets relating to numbers of pupils reached. In 2021/2022, Tutor Trust’s pool of tutors delivered over 35,000 hours of tutoring to 6,730 pupils—over 60% greater reach than it projected at the start of the SFF grant. SFF funding has strengthened Tutor Trust’s operations at the core, contributing to salary costs and enabling the charity to provide more subsidised tutoring for schools.

As an example of impact from the mental health portfolio, the Foundation supported The Listening Place with a grant of £80,000 in 2022. The organisation offers confidential listening support to those who feel that life is no longer worth living. It offers fortnightly volunteer-led listening sessions to anyone who meets its minimum criteria. In 2022 it opened its third site in Hammersmith, following the opening of its second site in King’s Cross the previous year. It now has geographical reach across all of London (with its original Pimlico site serving central and South London, King’s Cross servicing North and East London, and Hammersmith serving West London), and now has sufficient capacity to advertise its services for the first time—having previously relied on referral partners or word-of-mouth. It supports over 4,000 people annually. Its SFF-funded COO has brought operational rigour to the organisation—for instance through a formalised line management and appraisals process for all staff.

THE STONE FAMILY FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Financial review

Investment performance for the year to 31 December 2022

Total income from investments in the year amounted to £373,326 (2021 - £674,711). The Foundation realised a loss of £264,214 (2021 - £56,136 loss) on its investment portfolio and generated unrealised losses of £1,304,813 (2021 - unrealised gains of £3,055,131) on the movement in fair value (market value).

Given the stock market and economic conditions experienced in the year, the trustees were satisfied with the performance of the investments and that their investment objectives had been met.

Results for the year

A summary of the results can be found under the "Statement of Financial Activities" of this report and financial statements.

The trustees made grants to various institutions totaling £5.9m (2021 - £5.2m), and in addition provided additional financial support in the form of impact investments and concessionary loans for various water and sanitation solutions. Investment management, administration and governance costs totalled £0.2m (2021 - £0.9m). Losses on the investment portfolio of £1.57m (2021 - £3.0m gain) and a £1.01m profit (2021 - £60k loss) on foreign exchange contributed to the overall net surplus of £2.19m (2021 - £5.2m net surplus) for the year.

Fundraising

The Foundation does not fundraise directly with individuals and therefore is not registered with the Fundraising Regulator. Where donations from individuals are received, the Foundation aims to protect personal data and never sells data or swaps data with other organisations.

In the event of any complaints regarding its fundraising activities being received, the Foundation would undertake to react, investigate, respond and learn from the complaint and improve its service. During 2022, the Foundation received no complaints about its fundraising activities.

Approach to income and reserves

All income derived from the Foundation's investment portfolio is intended for the sole purpose of achieving social impact and therefore all income then forms part of the Foundation’s reserves and ultimately distributed using the grant making and social investment approach.

The unrestricted funds of £52.1m represent investments and cash held by the charity in order to meet any liabilities that may fall due for payment and to generate an income return for the future.

Financial Position

The balance sheet shows total unrestricted funds at 31 December 2022 of £52.1m (2021 - £50.0m)

The trustees consider that this level of free reserves meets the charity’s reserves policy as outlined above and they, therefore, consider free reserves to be adequate.

THE STONE FAMILY FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

FUTURE PLANS

The trustees regularly review their giving strategy based on experience gained of the organisations and sectors supported to date whilst also using research by the management team and New Philanthropy Capital.

The intention is to continue to focus on extending funding into enterprises and market-based models in the water sector globally where impactful opportunities arise; and maintaining the UK funding streams where appropriate with a focus on mental health and disadvantaged youth sectors. The trustees will also consider one-off smaller donations as they see fit.

Structure, governance and management

The charity is a company limited by guarantee with no share capital.

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:

Mr J K Stone (Chairman) Mr C H Edwards Mr D J Steinegger

Governance

The Stone Family Foundation is governed by its Memorandum and Articles of Association, adopted on 30 September 2015.

As set out in the Articles of Association, the directors of the Foundation are the trustees. The minimum number of trustees required is three and the maximum is five.

The names of the trustees who were appointed and served during the period and to the date of this report are given below with brief biographical details:

John K Stone

John Stone is FCII qualified and has spent the majority of his career within the insurance industry, holding various director/chairman positions with a number of organisations.

Charles H Edwards

Charles Edwards qualified as a Chartered Accountant and is currently employed as an investment manager with a major institution.

David J Steinegger

David Steinegger is a Chartered Accountant and has worked for over 30 years in the international financial services industry.

Trustees must be appointed by resolution of the trustees. Trustees are entitled to hold office for life. Every trustee must sign a declaration of willingness to act as a trustee of the charitable company before he or she is eligible to vote at any meeting of the trustees.

On agreeing to become a trustee of the charity, the trustees are thoroughly briefed by their co-trustees on the day-to-day management, the responsibilities of the trustees, the current objectives and future plans. The trustees are also encouraged to attend any courses which they feel are relevant to the development of their role, and to keep up-to-date on any changes in legislation.

THE STONE FAMILY FOUNDATION TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Stru¢tur• aThd managomgnt reportlng The Iw$tees are ultitnal4y responsible for the polve5, ￿￿'￿ille5 and a55ets of the tharity. They meet on regular basis to wiew the developments WI￿ regard to the ch8rity, its grant glving and sock81 investment villes and maké any important deusions. Th8 Iruslees rtrview the proposals forgranls and social investments and appiove propcszjs 8s appropriate. They also rewew progre$5 on major cfigoing grant ￿gramMeS. When necessary, the Iru5tee5 seek advi￿ and SUPPDrt from the chariV5 profess￿￿31 advis￿5 inckndirg inve51menl managers, solicit￿5 and 3cc(xJnlants. The day to day managemwl of the ¢hariVs acuvllies. and Ihe implamentalion of policies, is delegated to fwr membars of staff èn6urtr that grani a￿￿cationS are processed and presented 10 the Iru$t&as as appropriat8 and keep the bDoks and records of the d￿rIty. Soparat8 meetings take place ba￿488n Ih8 trustees and inveslrnant mana9ars dataits of th& invtr6iment performano and aclmty are reported and re￿ewed. Thi5 enables the trustees lo update the fund managers wilh regard to funding requirements to rneel the granls agreed. Regular liaison also lakes plac8 be￿88n Ihe N¥0 Investment managers appdntsd to ensure that a ho11s￿¢ 8pproach18 adopted Sn rospg¢t of fv Investrngn15 held. Key management personnel The Iru5tees consider that the board of Iru51ees and its employees. of which there were 5 for the duration of the year. compnse ihe key management personnel In charge of directing and controlling, running and operating the charity ¢n a day lo day basis. Th8 Intslees give their time freely and nD trustee rec￿Ve￿ remuneration yi the year. The pay of Ihe employees is reviewed annually by the trustees. Risk managemènt Tho Iruslees have assessed the major rlsks to whkh the charfly Ss exrosad, in partlcular those rélating lo ils inveslmenls and its finarKes. Th8 Irusl88s beliava that by 8nsurin9 controls exist ovèr kpy fnancial tsystsms and by delegating the inveslment rnanagefftent funCt￿n to investment manager5, sui4e¢t lo regular monilwng. induding perio￿1¢ reviews of performawe ag8in5t benchmark5, th?y estsbli$hed effectsv8 systems to mlilgale those fl$k8. In addition, the IriJ5tees have revEwed and re-assessed the coTrlrols and protocols ev8r th8 Id8nlific&on and reporting of potential iriegu18ri1ie$ and conflicts of interest relating lo Organ￿ationS receivlng grants m8de by th8 Feundation. The truslBe$ bÈlv8 Ihat the58 contro15 have been effeclNe in the pemd under rwew and th81 appropriate aclN)n has been taken to ensure the Foundatirm's respDnsibililies have been di5ch8rged. Auditor In accordance wilh the company's a￿ClOs. a rasolulh)n prep)slng that Buzzacott LLP be r8aFpointed as aLlil of thÈ compatTryTrAryII b8 Put at a G£neral Me9ting. The tru5tees' report. induding the strategic report. was approved by the Board ofTNsts6& Mr J K Stone lchdirrnanl Trustee Dated..

THE STONE FAMILY FOUNDATION

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE STONE FAMILY FOUNDATION

Opinion

We have audited the financial statements of The Stone Family Foundation (the ‘charitable company’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, and statement of cash flows, the principal accounting policies and the notes to the financial statements. 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 financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of 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 sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The 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.

THE STONE FAMILY FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE STONE FAMILY FOUNDATION

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

THE STONE FAMILY FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE STONE FAMILY FOUNDATION

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:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

THE STONE FAMILY FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE STONE FAMILY FOUNDATION

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 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.

Katharine Patel (Senior Statutory Auditor) for and on behalf of Buzzacott LLP

.........................

Statutory Auditor 28 September 2023 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE STONE FAMILY FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted Unrestricted
funds funds
2022 2021
Notes £ £
Income and endowments from:
Donations and legacies 2 9,518,741 7,736,849
Investments 3 373,326 674,711
Net exchange gain on currency 1,010,367 -
Total income 10,902,434 8,411,560
Expenditure on:
Expenditure on charitable activities 4 7,031,562 6,066,094
Investment managers' fees 8 182,561 178,115
Total expenditure 7,214,123 6,244,209
Net gains on investments 9 (1,569,046) 2,998,995
Net movement in funds 2,119,265 5,166,346
Fund balances at 1 January 2022 50,032,650 44,866,304
Fund balances at 31 December 2022 52,151,915 50,032,650

The statement of financial activities includes 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.

THE STONE FAMILY FOUNDATION

BALANCE SHEET

AS AT 31 DECEMBER 2022

Notes
£
Fixed assets
Investments
10
Programme related investments
11
Mixed motive investments
11
Current assets
Debtors
12
11,981
Cash at bank and in hand
5,605,873
5,617,854
Creditors: amounts falling due within
one year
13
(113,438)
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2022
£
£
32,965,506
13,681,993
-
46,647,499
1,934,896
1,475,122
3,410,018
(169,275)
5,504,416
52,151,915
52,151,915
52,151,915		 2021
£
35,154,045
11,385,136
252,726
46,791,907
3,240,743
50,032,650
50,032,650
50,032,650

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2022, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements were approved by the Trustees on

.............................. Mr J K Stone (Chairman) Trustee

Company Registration No. 09802468

THE STONE FAMILY FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
Notes £ £ £ £
Cash flows from operating activities
Cash generated from/(used in) operations 16 5,828,616 (1,485,280)
Investing activities
Proceeds on disposal of investment
property - 1,846,634
Purchase of other fixed asset investments (12,414,798) (9,474,214)
Purchase of social investments (3,128,309) (6,234,428)
Proceeds on disposal of other investments 12,215,155 9,390,382
Proceeds on disposal of social investments 831,452 4,943,749
Investment income 373,326 674,711
Net cash (used in)/generated from
investing activities (2,123,174) 1,146,834
Net cash used in financing activities - -
Net increase/(decrease) in cash and cash
equivalents 3,705,442 (338,446)
Cash and cash equivalents at 1 January 2,492,655 2,831,101
Cash and cash equivalents at 31 December 6,198,097 2,492,655
Relating to:
Cash at bank and in hand 5,605,873 1,475,122
Short term deposits included in current
asset investments 592,224 1,017,533
6,198,097 2,492,655

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

The Stone Family Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 130 Wood Street, London, United Kingdom, EC2V 6DL.

1.1 Accounting convention

The financial statements have been prepared in accordance with 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)". 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 assets at fair value. The principal accounting policies adopted are set out below.

Critical accounting estimates and areas of judgement

The preparation of financial statements requires the use of certain critical accounting estimates and judgements. It also requires the trustees to exercise judgement in the process of applying accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including an expectation of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the trustees' best knowledge of the amount, event or actions, actual results may differ from those estimates.

Areas requiring the use of estimates and critical judgements that may impact on the charity’s financial activities and financial position include:

1.2 Going concern

The trustees have not identified any material uncertainties relating to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern and consider it to be appropriate for the charity’s financial statements to be prepared on a going concern basis.

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Income

Income is recognised 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.

Income from donations and legacies is recognised in the period in which the charity becomes entitled to the donation and where receipt is probable and its amount can be measured reliably.

Investment income comprises dividends and interest on the Foundation’s portfolio of investments Dividends are recognised once the dividend has been declared and the Foundation has received notification that the dividend is due.

Interest is recognised when receipt is probable and the amount can be measured reliably using the effective interest method.

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 activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. It includes VAT which cannot be recovered.

Expenditure on charitable activities comprises grants payable, administration expenses and governance costs.

Grants payable

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for.

If the beneficiary has not been informed or has to meet certain conditions before the grant is released, the grant is not accrued for in the financial statements but is disclosed as a financial commitment in the notes. Similarly, if the grant obligation is conditional on an annual review process and the discretion to terminate the grant is retained by the trustees, the grant is not accrued in the financial statements but is disclosed as a commitment.

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Support costs and governance costs

Included within charitable activities expenditure are support costs incurred in assisting the grant making programme of the Foundation. Governance costs include audit costs and legal costs relating to the Foundation’s compliance with regulation and good practice.

Investment management fees

Investment management fees are incurred in managing the Foundation’s investments and are charged in the statement of financial activities and are stated net of rebates.

1.6 Fixed asset investments

The Foundation’s investment in quoted shares and similar investments are initially measured at cost and subsequently at market value. Investment gains and losses, whether realised or unrealised, are recognised in the statement of financial activities in the period in which they arise.

Investments in unlisted equity and similar investments are initially measured at cost and subsequently at market value unless the market value cannot be measured reliably in which case they are valued at cost less impairment. Investment gains and losses, whether realised or unrealised, together with impairment charges, are recognised in the statement of financial activities in the period in which they arise.

Social investments

Social investments include programme related investments and mixed motive investments.

Programme related investments

Programme related investments are made exclusively to further the Foundation’s charitable objectives by funding specific activities and where a financial return is not the primary reason for making the investment.

Programme related investments consist of unquoted shares and concessionary loans. Unquoted shares are initially recognised at cost and subsequently at fair value. If fair value cannot be measured reliably, the unquoted shares are measured at cost less impairment. Concessionary loans are initially recognised at the amount paid, with the carrying value being subsequently adjusted for repayments and any impairment.

Mixed motive investments

Mixed motive investments are made to provide funding to organisations in order to generate a financial return for the Foundation but also to contribute to the Foundation achieving its charitable objectives.

Mixed motive investments consist of quoted and unquoted shares and similar financial instruments and are initially recognised at cost and subsequently at fair value. If fair value cannot be reliably measured, the investment is carried at cost less impairment.

Gains on the disposal of social investments, together with impairment losses, are recognised in the statement of financial activities in the period in which they arise.

1.7 Cash and cash equivalents

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

1.8 Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the Foundation becomes party to the contractual provisions of the instrument.

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Basic financial assets

Debtors are initially recognised at their settlement amount and subsequently at amortised cost or their recoverable amount. Impairment provisions are recognised when there is objective evidence, such as significant financial difficulties on the part of the counterparty or default or a significant delay in payment, that the Foundation will be unable to collect all of the amounts due.

Prepayments are valued at the amount prepaid.

Basic financial liabilities

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be measured or estimated reliably.

Creditors and provisions are initially recognised at fair value, being the amount the Foundation anticipates it will pay to settle the debt, and subsequently at amortised cost

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.10 Retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

1.11 Foreign exchange

Transactions undertaken in foreign currency during the period are translated into sterling at the spot rate of exchange on the day of the transaction. Exchange differences are taken to the statement of financial activities. Foreign exchange gains (or losses) arising on the translation of monetary assets and liabilities at the period end date are taken to the statement of financial activities.

2 Donations and legacies

**Unrestricted ** Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 9,518,741 7,736,849

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

3 Investment income

Unrestricted Unrestricted
funds funds
2022 2021
£ £
UK equities 280,658 504,404
Social investments 92,667 168,641
Interest receivable 1 1,666
373,326 674,711

4 Expenditure on charitable activities

Staff wages
Staff social security
Staff pension costs
Staff development
Travel expenses
Rent and office costs
IT costs
Grant administration
Staff medical insurance
Consultancy
Net exchange (gains)/losses on currency
Bank charges
Trustees' expenses
Auditors' remuneration
Accountancy costs
HR payroll and tax costs
Legal expenses
Loss on disposal
Reversal of impairment losses
Grant funding of activities (see note 5)		 Governance
costs
2022
2022
£
£
307,005
-
33,112
-
15,101
-
16,757
-
63,604
-
69,144
-
12,659
-
23,341
-
2,690
-
527,664
-
-
-
1,128
-
-
30,615
-
11,250
-
33,576
-
21,706
-
777
-
-
-
-
1,072,205
97,924
5,861,433
-
6,933,638
97,924		 Total
Total
2022
2021
£
£
307,005
273,821
33,112
25,536
15,101
13,802
16,757
11,200
63,604
24,775
69,144
38,750
12,659
51,300
23,341
34,844
2,690
-
527,664
327,541
-
60,300
1,128
1,471
30,615
-
11,250
9,780
33,576
26,014
21,706
8,982
777
16,948
-
3,366
-
(16,300)
1,170,129
911,980
5,861,433
5,154,114
7,031,562
6,066,094

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

5 Grants payable

2022 2021
£ £
Grants to institutions:
1001Fontaines 830,614 775,310
3BL 114,609 10,895
Aerosan Sustainable Sanitation Nepal - 14,524
ATEC Sales & Marketing - 87,736
Beat 149,972 144,627
Bipolar UK 55,000 55,000
Birmingham Mind - 92,432
CBSA 35,000 -
Cellar Trust 115,000 115,000
Clean Team - 165,120
Container Based Sanitation Alliance - 14,000
Drinkwell Bangladesh - 50,000
Eau et Vie Bangladesh 44,269 43,217
Elphrods Digitsation 21,955 -
Empire Fighting Chance 100,000 100,000
Gret - 277,873
Hillside Clubhouse 134,000 134,000
IDE 7,449 -
Impetus PEF 225,000 200,000
IntoUniversity 100,000 100,000
iSEA - 158,587
KWSH 10,170 7,108
Laos Feasibility Study 30,177 -
Leap confronting conflict 150,000 150,000
Longford Trust 20,000 20,000
Loowatt - 50,000
Making The Leap 100,000 -
Max Tapwater Pilot 78,351 -
Mental Health Innovations 250,000 250,000
Mosaic Clubhouse 103,061 136,830
OCA - 19,802
On Purpose Careers 50,000 50,000
Opero Kenya - 100,000
Oxfordshire Mind 85,000 -
PFNL 50,001 -
Place2Be - 104,489
PSI - 57,317
Redthread - 150,000
Rethink 115,196 111,039
Ruwasco 52,691 -
Safe Water Network 1,012,910 394,039
Safi Sana 478,733 224,618
Samaritans 90,000 -
SandONE - 2,800
Sanergy 450,248 436,751
Shish Malhotra - 5,000
Sonic Fresh 52,691 -

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

5 Grants payable

Grants payable
Sport 4 Life
The Listening Place
Tutor Trust
Tutors United
Water4
Wheels Project
Youth Moves
Opero Services		 (Continued)
65,000
65,000
80,000
80,000
120,000
110,000
130,202
-
238,086
-
25,000
56,000
25,000
35,000
66,050
-
5,861,433
5,154,114

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, however £30,615 of travel expenses were reimbursed during the year (2021 - £0).

7 Employees

Number of employees

The average monthly number of employees during the year was:

2022
Number
5
Employment costs
2022
£
Wages and salaries
307,005
Social security costs
33,112
Other pension costs
15,101
355,218		 2021
Number
5
2021
£
273,822
25,386
13,802
313,010

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the charity and are represented by the trustees and the Foundation's employees. The total remuneration paid to the key management personnel was £355,218 (2021 - £313,010).

The number of employees whose annual remuneration was £60,000 or more were:

were:
2022 2021
Number Number
£60,001 to £70,000 1 1
£80,001 to £90.000 1 -
£90,001 to £100,000 - 1

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

8 Investment managers' fees

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Investment managers' fees 182,561 178,115
182,561 178,115

9 Net gains on investments

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Unrealised (loss)/gain on revaluation of investments (1,962,873)
3,055,131
Realised (loss)/gain on sale of investments 393,827 (56,136)
(1,569,046)
2,998,995
Fixed asset investments
Listed and Cash in Total
unlisted portfolio
investments
£ £
Cost or valuation
At 1 January 2022 34,136,512 1,017,533 35,154,045
Additions 12,414,798 - 12,414,798
Valuation changes (1,962,873) - (1,962,873)
Cash changes - (425,309) (425,309)
Disposals (12,215,155) - (12,215,155)
At 31 December 2022 32,373,282 592,224 32,965,506
Carrying amount
At 31 December 2022 32,373,282 592,224 32,965,506
At 31 December 2021 34,136,512 1,017,533 35,154,045

10 Fixed asset investments

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

10
Fixed asset investments
Investments at fair value comprise:
Listed on UK stock exchange
Listed on overseas stock exchanges
Gilts and fixed interest
Property funds
Unlisted UK equities
Equity managed funds		 (Continued)
2022
2021
£
£
3,639,254
4,351,133
17,229,841
14,825,672
5,301,606
8,004,467
-
32,847
5,996,101
5,996,101
206,480
926,292
32,373,282
34,136,512

The following individual holdings had a carrying value in excess of 5% of the entire portfolio at 31 December 2022

£
NanoDimension II, L.P. £1,813,907
Sway Ventures Accelerate AJTV LP £5,115,107
JJ&P (Belvin Franks) £5,996,101
Blackrocks Coutts UK Index Fund C GBP Income £2,279,300
Blackrocks Solutions Funds ICAV Coutts US EQTY INDX C USD DIS £1,906,456
Blackrocks Coutts US & Canads Enhanced Index Government Bond £3,422,690

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

11 Social Investments

Programme related investments

Programme related investments
2022 2021
£ £
At 1 January 2022 11,385,136 8,705,393
Additions 3,128,309 6,234,428
Disposals (831,452) (3,421,515)
Exchange differences - (149,470)
Impairments - 16,300
At 31 December 2022 13,681,993 11,385,136

Financial commitments on programme related investments amounted to $1.563m at 31 December 2022 (2021 - $2m), payment of which is dependent on performance milestones being achieved. No liability has been recognised on the balance sheet in respect of these amounts.

Mixed motive investments

Mixed motive investments
2022 2021
£ £
At 1 January 2022 252,726 1,779,803
Movement in fair value (252,726) (4,842)
Disposals (1,522,235)
At 31 December 2022 - 252,726

Social investments, consisting of programme related and mixed motive, can be further broken down as follows:

Loans
UK equities
Overseas equities
OEIC and unit trust
Fixed deposits		 2022
£
1,623,655
-
3,922,100
-
8,136,238
13,681,993		 2021
£
2,455,107
252,726
2,384,207
-
6,545,822
11,637,862

These investments support:

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12 Debtors

Amounts falling due within one year:
Other debtors
Prepayments and accrued income
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2022
£
8,812
3,169
11,981
2022
£
48,239
21,232
6,523
37,444
113,438		 2021
£
8,828
1,926,068
1,934,896
2021
£
32,582
1,619
-
135,074
169,275

13 Creditors: amounts falling due within one year

14 Related party transactions

Mr John Stone, a trustee, made donations of cash amounting to £7,684,820 to the Foundation (2021 – £5,886,665). In addition, the Foundation made grant payments to Impetus - The Private Equity Foundation of £225,000, a charity in which Mr Charles Edwards, a trustee, is also a director (2021 – £200,000).

15 Analysis of changes in net funds

The charity had no debt during the year. The net movement in funds is positive because realised and unrealised gains on investments exceeded expenditure during the year .

THE STONE FAMILY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

16 Cash generated from operations 2022 2021
£ £
Surplus for the year 2,119,265 5,166,346
Adjustments for:
Investment income recognised in statement of financial activities (373,326) (674,711)
Foreign exchange differences - 149,470
(Gain)/loss on disposal of tangible fixed assets - 3,366
Loss on disposal of investments 252,726 56,136
Fair value gains and losses on investments 1,962,873 (1,911,510)
Gift of investments - (1,850,000)
Impairment of investments - (16,300)
Movements in working capital:
Decrease/(increase) in debtors 1,922,915 (1,322,392)
(Decrease) in creditors (55,837) (1,085,685)
Cash generated from/(used by) operations 5,828,616 (1,485,280)