MASONIC CHARITABLE FOUNDATION MASONIC CHARITABLE FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charity Number: 1164703 Company Number: 09751836 Page 1 of 66 MASONIC CHARITABLE FOUNDATION Contents Page President's Fopward strategic Report Trustees, Annual Report 24 Statemant of Trustees, Responsibillties 31 Auditorfs Report 32 Consolidated Statement of Financial ACtI￿tieS 35 Balance Sheets 36 Consolldated Statement of Cash Flows 37 Notes to the Financial Statements 38 Page 2 of 66 MASONIC CHARITABLE FOUNDATION PRESIDENT'S FORWARD Since it was established in 2016, The Masonic Charitab18 Foundation (MCF. The Freemasons, Charity), has awarded almost £150 million in support to indiwduals, both directly and through other charities. We aim to build better lives for people of all ages who are suffering distress in health or financially. with a rang8 of grants and services that can signrficantly improve their situation. For thos8 SUPPOrted through our grants to external charities, our particular focus currently is on children in their early years. children with special educational needs and disabilities, and on those in later life suffering wilh dementia. As President and Chaiman of Truslees of the MCF. l am pleased lo present our annual report and financial statements for the year ended 31 March 2024, a year which has again demonstrated the value of what we do, rooted deeply In the enduring princlples of Freernasonry. I would like to express my gratitud8 to thos8 Trustees who left us in the year, in particular Sir Paul Williams. our retiring Deputy President and Chairman, who gave great s8rvic8 over many years. I welcome our new Trustees, confident in their ability to help steer the Charity into the future with an even higher sense of purpose, fulfilling our charitable objects in a modem, efficient and effective manner, and I pay tribute to our loyal staff, based at Freemasons, Hall and beyond, who remain as committed as ever to delivering our charitable aclivilies. Above all, I warmly thank our donors and volunteers up and down tha land, have continued to demonstrate, in their generous support of this, 'The Freemasons, Charity. that service and charity are core to the Masonic principles we embrace. As you r8ad this reporl, you will discover Ihat the MCF Is a complex organisation. In fact, it comprises a group of charities, companies and discrete funds, having been fomied by the m8rger of 88V8ral older Masonic charities, some founded as long ago as the oight8enth cantury. All were designed to meet the needs of our memb8rship and wider society at the time and all have evolved, and continue to evolve, to reflect changes in society and in underlying need. This process of ren8wal and flexible response to n88d will continue to motivate and drive us all. Jam08 Long TD Pre81d•nt and Chalrnian of Trustees, Masonic Charltable Foundatlon Pag8 3 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Objectives and Actlvltles Obj•ctiv•s The Objects of the Charrty ar8. for th8 public benefit, to.. (a) relieve sickness and preserve health, advance education and prevent or relieve poverty or financial hardship, amongst such persons as the Trustees Gonsiderfrom time to time to b8 in need of assistance to the extent to which the Trustees in their absolut8 discretion think appropriate,. and to (b) further such other purposes IbeirvJ exdusively charitable} as the Trustees may from tirne to time in their absolute discr8tion consider appropriate. The Charity meets Its charltable objectives though activities that either focus on support for Freemasons and their dependants ("Masonic Support") or on 5UPPOrting need wlthln wid8r society { Charity Granls')- Actlvltles Support lo tho Ma80nlc communlty- Grants and serv1￿8 The Charity provides grants to assist members of the Masonic community throughout their lives, from childcare support for pre-school children through to respite care for older people. Th8 wide range of assistance offered is grouped into three core areas.. daily living costs; health, care and wellbeing., and Children, young people and education. Most grants involve e financial assessment to ensure support is targeted to those who need it most. In addition, independent living loans are offered to support people to adapt thelr homes to meet their mobility and health n88ds. Daily Living Costs The main provision Is through daily livlng costs grants paid to help Masonlc families who are un8bl8 to afford everyday living costs as a r8suII of a lrfe event that has left them in financial hardship. Grants are also provided for one-off ¢osts Ihat impad on wellb8ing. financial stsbility and independence. Health. Care arKI Wellbeing Medi¢81 and dental grants ar8 paid to help with the cost of private treatment or surgery, which cannot be provided freely or quickly through the NHS. Support for m8ntal health issues is available through a partn8r organisation offering professional, free and confidential support. Grants are offered to support family ¢arers to tske vital breaks from th8ir caring responsibilities. Mobility equipment including scooters. stair-lifts, power chairs and hoists is provided to support independent living. Grants are offered to pay for home adaplalions required due to medical or mobility needs. Int8rest- free loans can be considered for essential home repairs and adaptations to support continued Independen￿ al home. Page 4 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Activities (Contlnuad) Children, Young People and Education A wide range of educats'onal grants, including for IT equipment, uniforms and scholarships, are available to ensure that children ar8 not disadvantaged in their education because of a lack of funds. Grants are also off8r8d to young people with exceptional musical, sporting or artistic tal8nts io train and develop their skills further. School fees are paid to prevent children in fee-paying education having to leave when their parentslguardians have experienced 8 Ilfe change preventing them from meeting the fees. The total of Masonic Grants expenditure Is found in Note 6 to the accounts on page 44. Advlco and Support The Charity provldes practl¢al and emolional support Services that make a slgnificant contrfbution to the health and wellbeing of the Masonic community. A team of professional advisers bas8d throughout England and Wales provides advica and guidanc8 on a range of support issues. They will make contact or visit to listen, understand needs, discuss potential solutions and direct to organisalions and services Ihat can help. The team can assist with applications for charitable and state support as well as signposting to national and local services. Support to the charlty communlty- Charlty Grants Grants from the Charity a￿ made to charities regist8r8d wllh the Charlty Commlsslon and whose beneficiaries are located across England and Wales. In addition, grants are provided for disaster relief 8UPPOrt, bolh in the UK and overseas. The Charity made grants to charities in five key areas where public benefit is clearly demonstrated: Chlldron and Young People Gr8nls to support charities that help disadvantaged children and young people overcome the barriers they fac8 and achieve the best possible start in lrfe. Later Llfa - Grants to support charities that help people to overcome barriers enabling them lo participate actively in society in thelr later years. Medical Ro8earch - Grants to support medical research through PhD studentships. Ernoryoncy Grants - Emergency grants are made in times of emergency, both in the UK and overseas. Hosplces - A MCF Bursary scheme to provide training bursaries for hospice Staff, in order lo improve staff retention and develop their skills. Additional grants were also available to widen access and h81p improve local hospice services, with the focus this year on poverty and deprivation. Both grant programmes are administered via our partnership with Hospice UK. Page 5 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Activities (Continuod) The Charity operates two schemes to provide charitable grants via Masonic provinc8s: Matched Funding - The schem8 8nables prownces to double the amount of funds that they can provide lo local charities by applying for matched funding from the Charity. FestlV81 Grants Programme - This scheme offers support to provinces during their festsval appeal. Each province will be allocated a grant fund to offer to local registered charitl8s over the period of their festival. Funder Plus Initiatives The Charity has embarked on a n8w funder plus initiative in partnership vAth The Cranfield Trust, who have been awarded £228,000 over two years lo provide pro-bono consultancy and m8ntoring support to small and medium charitie5. The total of charity grant8 exp8nditure is found in Note 6 to the eccounts as Non-masonic Grants on page 44. Fundralsing Voluntary income for the MCF is generated solely through Freemasons and their families. Within this, fundraisin9 appeals. or festivals, provide the single largest source of incom8. Festival appeals are run on an'in aid of, basis by Masonic provinces with around 24 appeals running at any given time. During the year, five festival appeals were launched and four were Gompleted. The fundraising team provides ongoing practical support and advice to all fundraisers with further, more technical engagement and support for key fundraising stakeholders. In 2023, this included the biennial MCF Conference as well as other initiatives created as part of the donor 8ngag8ment strategy. The Charity has signed up with the Fundraising Regulator and follows its cod8 of practice. The Charity and ils subsidiaries receive a number of legacy gifts each year. The MCF is a Gharily partner of The Goodwill Partnership, providing free a¢c888 to the will-wriling service a5 a public benefit to freemasons and non-freemasons alike. Rollof Chest Scheme The Relief Chest Scheme I'RCS") offers individual relief chests to lodges, chapters, provinces and other recognised Masonic organisations, which a￿ used to generate funds for all types of charitable purposes. These funds are held by The Grand Charity unincorporated trust in a restricted fund. A donation can be made from a relief Chest to a charity, an organisation recognised as tharitable orfor an individual in distress. The RCS providès Mtal support to provinces in festival and other appeals. enabling them lo rèach their fundraising targels efflciently. It also ensures that all statutory compliance and administrative requirements of the Charity Commission, Information Commissioner's Office and HMRC hava been meL All services of the RCS arè provided free, no administration fee is charged to the chest holder. In 2018, RCS launch8d donor advised funds for individuals. It 15 now open to all Freemasons, their families and friends. These funds ar8 held by the Masonic Charitable Foundation in a restricted fund. Pag8 6 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Actlvlties (Continued) The seNces of tha RCS, vthich assist donors to give to both Masonic and non-masonic charitable causes, conlribule to the public benefit by crealing value for other charities. Royal Masonlc Banèvolont Institution Care Company The Royal Masonic Benevolent Institution Care Company { RMBICC") is a company limited by guarante8 and a subsidiary of the Charity and is one of the oldest Health and Social Care Charities with a history spanning 180 years of providing care for Freemasons. th8ir dependants and the wider community. The objects of the RMBICC are, for the public benefit, the r81ief of those individuals who are in need by reason of age, disability, poverty or ill-health by the provision of- (a) Accommodation in residential care facilities or shellered accommodation, and assoclated facllities: (b) Financial assistance by way of grant. andlor (c) Such other servic88 or assistance as Its trustees may from time to time think frt. In carrying out these objects, the RMBICC'S trustees shall lak8 r8ason8ble steps to give preference lo Individuals who are Freernasons lor indivlduals who hav8 at any poinl been the spouse, civil partner. child or olher dependant of a Freemason). The RMBICC provides residential, dementia, respite and nursing care across 17 locations for older people and younger learning andlor physical disability S8rwc88 at one location with a combined total of 999 placements. Its rnission is lo provide uniqu8 individual care, with kindness, support and trust helping deliver a service that Freemasonry can all be proud of in making a real difference lo people's everyday lives. The RMBICC employs around 1,500 staff, including agency workers, lo meet support and care needs. The RMBICC takes greal care lo ensure that applications for r8sid8nce In the ¢8re homes a￿ considered fairly and without prejudice.. based on actual assessed need and a new dependency tool. The majority of admisslon decisions are made 8nd applied by individual home managers. Only exceptional cases relating to financial hardship are referred to trustees for approval. About 30% of all placements are for non- freernasons, reflectiro the diversily and added value to the wider community of its seN￿s. The services provided are availab18 to those wlth flnancial means or limited financial resources. Th8 RMBICC complies wlth the Charging for Residential Accommodation Guid8 (CRAG) issued by the Department of Health. The resident numbers are split broadly 60.40 into those who are seif-funding and those who are placed and funded by Local Authorities. The RMBICC manages a further 64 prop8rties, induding some sheltered units for those who s88k independence with minimal cara provided. It also holds the freehold of 19120 Gr8at Queen Slreel, which was the fom8r haad office. Through a Special Purpose Vehicle with Latis Homes, Stability Investment Limited, a subsidiary, was established to build four apartments for sale and a leasehold retail unit on th8 ground floor. Three of the flats remain to be sold from which the proceeds will be utilised to help meet the development programme costs. One of these flats was subsequently sold in August 2024. Page 7 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Achievements and Performance Significant achievements during the year included: Masonic Support Gathering evidence of the Impact the Charity's support to the masonic community was having by way of its first impact survey of beneficiaries. From ovèr 1,000 beneficiaries that responded to th8 suivey, leamed that.. 62% report8d an increase in wellbeing 31% reported an increase in personal independence Undertaking a full safeguarding policy and proc88s review and strengthening safeguarding capacity by increasing the numb8r of trained staff. Enhancing equity. diversity and inclusion (EDI} data capture and understanding, to provide greater insights into the disadvantag8d groups th8 Charlty 15 SUPPOrting and. as a result. where it can target Its support towards those most in need. Charlty Grants Strategic work including consultalion wllh key stakeholders was undertaken to refine the funding priorlties of the Charity Grants programme in order to give more depth to the programmo and onablo the Charity to better understand the impact achieved through ils funding. These strategic discusslons led to the developmenl of four new major programmes, which were launched at the end of January 2024.. early y8ars (￿5) with a focus on poverty and n8glect, children affected by dome81i¢ abus8, children with special educational needs and disabilities and people livlng with dementia and their carers. To support the launch of these programmes th8 Charity's website was updated with infomiation on funding prioritias, application guidance, and new application and monitoring forms. Additionally, database improvements wer8 made In order to slreamline the processing of applications and facilitate more efficient processes for our grant applicants. Hospic8s across England and Wales received £0.6 M through the two dedicated programmes. During the year, the Charity's partnership with Hospice UK supported projects that helped to improve local hospice services, with Ihe focus on tackling povety and deprivation. In total 13 hospices across England and Wales were awarded £398,000. A new MCF bursary scheme was introduced to provide training bursaries for hospic8 Staff, in order to improve slaff retenlion and develop thelr skills. ThSs bursary scheme is administered by Hospice UK on behalf of the Charlty, and is open to all hospices in England and Wa18S. Page 8 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Achievements and Performance (Continued) Fundraising The continued promotion of the use of online and digital resources as a way for members to make one-off contributions as well as regular, on-going donations. Use of these resources has increased over the year. The promotion of regular on*oing giving has been well received. with many festival appeals now seeing an increase in the number of memb8rs who wish to donate in this way. Th8 cr8ation of a18ga¢y giving fundraising plan has already seen an increase in engagement with members wishing to obtain a will. The Charity will continue with this plan, promoting legacy giving and th8 b8n8fils of having a will in place. Four festival app8als concluded in the year., Worceslershire1£2,109.6711. Berkshire {£2,268,5411, Cambridgeshire1£1,205,0181 and Warwickshire1£2,637,898). The Trustees are extr8mely grateful to Brethren and their families from these prownces for Ih8ir support. The average per capita across these festivals was £859. reflecting a healthy increase on the previous year1£644). Rollof Chest Schemo Implementing the new seven-year strategy for the Relief Chest to promote engagement and increase use by donors and potential donors. Engaging in a programme of cornmunity engagement with eight provinces visited during the year and holding an open week for London lodges in July 2023. Rolling out the new Relief Chest Online service that allows reli8f chest holders to access securely th8ir accounts online for enquiries and reporting. and to add second officers lo the account. By the end of the year, 51 % of Relief Chest holders had registered for the service. The numb8r of activ8 users had increased to 663 by the end of the year (2023.. 1081. Increasing the proportlon of donations r8ceived 818Ctronically from 10% in April 2023 to 17% by the end of the year. Increasing the proportion of charitable donats'ons paid through the e-voucher system to 66¥0 from 53% in Ihe prior year. Promoting'continuous giving. between festivals with eight provinces signed up and 2,808 direct debit5 processed. This will give the provinces concerned a "flwng start" for when their next festivals are launched. Page 9 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Achievaments and Perfonnanco (Contlnued) During th8 year, activity in th8 RCS included: 2024 2023 Number of Relief Chests Average numb8r of monthly donations into the Scheme Average number of monthly tax reclaims Average number of monthly paym8nts from th8 Scheme Number of new Reli8f Chests open6d 5,148 45,973 41,698 532 205 5,110 50,642 38,784 416 204 Relief Chest holders utilised the Scheme by requesting charitsble donations as follows. 2024 2023 £000 £000 Masonic Charitable Foundation and Subsidiarfes Other charitable purposes 11.326 11.930 Totsl Royal Masonlc Bonevolont In8tltutlon Carg Company ("RM8ICC") Reduction of the oper81ing deficit from £10.2 M in th8 prior year to £4.2 M for the current year. 999 beds provided across 17 Care Homes wllh over 500 n8w resident placements made in the ye8r. Occupancy increased from 82.2% in 2022123 to 83.8Yo for the current year. 61 % of residents were self-funding, an increase of 2 percentage points from the previous year. A 20% reductlon in Carbon Emissions since 2019 In Ilne wlth the RMBICC'S Suslainabilily Objectives. A fourth'outstanding, rating from the Care and Quality Commission forthe home In Bury St Edmunds adding to those prevlously achieved in the homes in York, Watford, and Leicester. Planning approval for the next Car8 Home development at Bury St Edmunds for 64 beds providing specialist nursing and dementia care, with build to commence in April 2024. Home managers at Shannon Court, Surrey and Devonshire Court, Leicester won their regional events in the Great British Care Awards 2023 and will enter the nation81 finals in 2024. Four homes were converted to solar energy supplies as part oflhe RMBICC'S continuing Sustainability Strategy to improve efficiencies and costs. Page 10 of66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Financial Review Revlew of th• Year The net result for the Group turned from a deficit of £29.8 M in the prior year to a surplus of £6.1 M for the current year. Thls was primarily due to strong investment returns from the CAIF as seèn below. MCF Net Surplus 2023124: £6.1 M £ioo.o £79.3 £85.7 £50.0 £23.8 £6.1 £o.o l£lQ.71 ¢£1.21 1£0.21 IE50.01 <£29.81 i£ioo.01 1£97.111£103.31 I£ISD.01 Income Expenditure Investment Penslons • 2022123 • 2023124 The Group's operating deficit reduced by 1.60/0 from £17.8 M to £17.5 M. Group income Incr8ased by 8.2% from the previous year to £86.7 M. The breakdown by income stream was as follows: MCF Group Income 2023124: £85.7 M Investment E8.9 £6.7 Rental £2.0 £1.8 Fee income from care hornes £52.7 £47.1 Annual contribution5 E3.2 E3.2 LeÈaile5 E4.4 £5.6 Donatlons- Other E3.6 £4.7 Donatlons- Festlvals £10.9 £10.2 £o.o £io.o £20.0 130.0 E40.0 £50.0 £60.0 £ Millions 2023124 •2022123 Page 11 of66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Review of the Year {Continu•d) Income from festiva15 maintained the strong recovery arising in the previous year. with a further increase of 7.2QA to £10.9 M. Legacies are by their nature volatile from y8ar to year and difficult to predict. After the extremely high return from the previous year, they fell by 20.6% to £4.4 M. Investment income of £8.g M was 33.4% higher than prior year. This was primarily du8 lo locking into higher interesl rates Wlth longer-temi deposits, the strong perfomiance from the RLAM money markel fund and the actions taken to Greate daily sweoping of surplus funds from operational accounts into the Barclays BPA inter8sI bearing accounts. Rental Income of £2.0 M was 11.1% higher than the previous year, mainly due lo th8 commencement of a new five-year lease on the Ruspini House flats with a serviced accommodation provider, followlnq completion of the refurbishment works in December 2023. Financial oulcomes by business activity are analysed as follows: Relief Chest 2024 £'ooo 2023 £'OOO Chan Incoming donations Interest from deposits 14,354 13,617 5.4% 891 309 188.7% Total Snwme Income transferred to the MCF and its subsidiaries Grants made to third party charities {11,327) {11,930) -5.1% (5,416) (3,4701 56.1% Total expenditure 16,743 8.7% Net surplusl(defi¢it} 1.6% The R81i8f Chest is a unique service provided to Fre8masonry to facilitate charitable giving. During the financial year, it reclaimed £1.4 M Gift Aid and generated £0.9 M interest on behalf of the 5,148 member lodges that utilised its services. The Relief Chesl holds funds on behalf of provinces and lodges pending Ih8ir instructions for disbursement. As such, these funds are treated as restricted funds for the purposes of the Group aGGounts. Disbursement of funds to the MCF transf8rs the income from restricted lo unrestricted funds for the Group. Lodges and Freemasons also donate to a wide rang8 of charities from their relief Chests. An inltiative lo release funds from domiant chests during the course of the year was very successful, resulting in an incrèase in Ihird-party charitable donations of 56.1% over the prior year. A trend analysis of the disbursement of funds is shown overleaf. Page 12of66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Review of the Year (Continued) External Grants from the Relief Chest E6.0 £5.0 EO.3 £4.0 E2.0, £3n EO.2 £0.2 £2.0 £0.9 É1.7 £1.5 £i.o £2.0 El.9 £i,o £o.o £0.4 2019120 2020121 2021122 2022123 2023124 Alr Ambulance and Rescue Servltes u Edutatlon ènd Ernployablllty Health and Dlsèbllity Hosplces Other Charltable Purposes Grant Maki 2024 £'ooo 2023 £'OOO Chan Festival income received from the Relief Chest Annual contribution from members Legacies and other donations Relums from financial investments Retums from property investments 10,927 10,192 3.196 3,232 4,875 7,363 27,174 (3,949) (1.256) (2,449) 7.2% -1.1% -33.8% -788.1 % -48.70/0 Totsl income 44,916 14 389 212.1% Masonic grants Annual income subsidy support grant to the RMBICC Grants made to third party charities Cost of generating funds Overheads (13.679) {11,151) (6.923) (8,670) (5,688) (6,820) (822) 1788) (5.806) (5,475) 22.7% 3.8% -16.6Vo 4.2Vo 6.1¥. Total 6xpenditure 32.918 30,904 6.50 Net surplusl(deflcil) 11.998 16.515 Unrestrictèd reserv95 R8Stricted reserves 18,667 7,532 (6,669) (24,047) 147.8'h -72.30 11.998 16.515 Page 13 of66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Review of the Year (Continued) A key slralegic objective behind the fomiation of the MCF was to build up unrestricted reserves to ensure that funds are available to meet the needs of benefic￿a￿eS wherever they lie. and not to be reslricted by the objècts of Ihe prewous central masonic charities. This is being achieved by attaching festivals to the MCF whilst simultaneously drawing down the funds of the other charities as far as possible towards funding grants to beneficiaries. For the first time in 2023124, all festival income was received as unrestricted funds within the Group. The Current year was parlicularly succ8ssful towards building up unr8Strict8d reserves with a 147.80h increase in the surplus from prior year io £18.7 M. The annual contribution is received from all Freemasons al the rate of £17 per membership and is collected through Ihe United Grand Lodg8 of England. The high level of investment retums from the CAIF has resulted in a tumaround of Incoming funds from Ihe prior year of £31.1 M. Whilst property InGome has increased from prfor year, contlnulng vacancy of several properties, especially the offices at 31 GQS, have led to a further write down in valuations of £1.0 Masonic grants increased by 22.7¥0 to £13.7 M, with the main driver being th8 65.1% increase of medical and ill-health grants to £4.3 M due to a backlog in NHS operations. Charitygrants reduced by 16.6% lo £5.7 M, mainly due to the £1.2 M disbursed from Ihe Ukraine appeal fund in the prior year. Care Com an eralions 2024 £'ooo 2023 £'OOO Chan Fee income on full recovery basis Subsidies to residents with no masonic connection Subsidies to residents with masonic connection 66,119 60,386 14,200> (4,400) 19,230) (8,894) 9.5¥0 3.810 Fee income r8C8ived Annual income subsidy support grant from the MSF 52,689 47,092 6,923 6,670 11.9¥0 3.8% Total income 59,612 53.762 10.9% Expenditure on care home operations (63,792) 163,915) -0.2% Operating surplusl(deficit) 4,180 10,153 -58.8Vo Retums from financial investments Returns from property investments Interest payable on Retail Charity Bond Non-operating incomel(expenditure) 2.418 (46) .5356.5% 549 463 (681) (480) (181) (1,120) 41.90 -83.80 Non-operating surplus1{deficit) 2,105 1.183 -277.9% Net surplusl(deficit) 2,075 11,336 -81.7% The operating deficit from care homes reduced by 58.8% to £4.2 M. Fee incom8 increased by 11.9% to £52.7 M. This wa5 primarily due to a 10% increase in private fee weekly rales from 181 April 2023 together with a greater focus upon dementia and high-dependency care. which provides higher levels of income and margins. Page 14of66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Reviow of th• Year (Continuod) The RMBICC subsidised r8sid6nts wth a masonic connection by £9.2 M (17.5% of total income that would be charg8ab18 on a full cost recovery basis) and residents without a masonic connection by £4.2 M (8.0%). The Charity has funded 75% of the masonic subsidy through a grant from the MSF. ri Du6 to hi9h staff retention rates and a focus upon agency cost premiums. operating expenditure of £63.8 M was contained to alevel of 0.2% lower than prior year. Non-operating movements ben8fitted from strong investment retums and significantly reduced actuarial losses on tha closed deflned benefits scheme. The scheme now has a surplus of assets over liabilities amounting to £2.7 M. A full year's int8r8St was incurred on the Retail Charity Bond. RMI The R l Masonic School 2024 £'ooo 2023 £'OOO Chan Rental Income from the Royal Masonic School Retums from financial investments Donatlon rec8ived from th8 Cadogan Trust 824 760 814 1.2% (1691 .550.8% 1,066 -100.0% Total income -7.40/0 Backlog works on the school Infrastructure Bursaries from the Cadogan Fund Ov8rheads {5,100) (2,651) 92.4% {256) (110) 132.5% {216) (111) 95.301ts Total expendilure 94.0% Increased provision for backlog works utilisation of provision {3,500) (1,986) 5,092 2,655 76.2% 91.8% Movement on provisions 1,592 669 138.1% Net surplusl(deficil) Sur lusl 492 387.1% deflcit on other activities 28 53 -50.1% Total MCF group not Surpluslldeficlt) 6,055 29,764 -120.30/0 The RMIG End0￿ent Trust's objects are to support the Royal Masonic School for Girls in Rickmansworth and its pupils. The incorne generated by the RMIG Endowm8nt Trusl ¢on$isls of rental received from the school, inv8Stment retums and bank deposit interest. The Charity took control of the RMIG Endowment Trust in April 2019, following which it created a provision of £13.4 M lo cover the backlog of repairs that had built up over previous decades for which the trust had repairing obligation und8r the term5 of its lease wilh the school. As the backlog works have been progressed, it has been found consistently that the (x)ndition of the infrastructure is worse than originally envisaged. Constructions costs have escalated significanlly over the period following Covid-19 and lockdown. Consequently. the proMsion has had to be increased several times including £3.5 M in th8 current year. Page 15of66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Review of the Year (Continued) Expenditure incurred against the provislon during the year increased by 91.8Vo from Ihe previous year lo £5.1 M. The main areas of expenditure were in relation lo th8 r8furbishment of the greal hall and replacement of the district heating systém. Overhea - the proportion of th8 Charity's expenditure spent on providing support to its beneficiaries has consistently exceeded 82% over the past five years, reaching a high point of 86.9¥0 in 2020121 with an additional £3.6 M of grants in response to the Covid-19 pandemic. The figures 8xclude the RMBICC'S care home operations, Relief Chest activilies and the backlog works being undertaken at the Royal Masonic School. Expenditure., Pence in the Pound I I I I I 82,2 86.9 83.5 82.2 83.3 2019120 2020121 2021122 2022123 2023124 Supporting beneflclaries Raising lund5 Running the charity Balance Sheel- the group's balance she81 r8mains strong, with total funds of £392.5 M (prior year.. £386.5 M), including investments of £240.3 M (610kn), investm8nt properties of £45.6 M {120/0), RMBICC operating properties of £68.9 M (18%) and bank balances and short-t8rm deposits of £44.7 M (11Qkn). External financing included the RMBICC Retail Charity Bond1£10.0 M) and bank loans of £0.29 M. The level of reserves is in accordance with the policy set out on pages 17 and 18. Balance Sheet- As at 31st March 2024 - Total net assets of £392.5 M 2.55, 1% Snve5tment properties Investments Operating propertie5 Cash deposit5 less loans Other assetslllabllltle5 9.59, 18% 199.83, YI If4 Page 16 of66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Reserves Policy The Group's reserves ar8 summarfsed by business actliAty and category of fund as follows.. Group Reserves by Business Activity Other Supportlng the RMS Cornpany Operatlon5 Grant Making Rellef Chest 150.001 0.00 50.00 100.c 150.00 200.00 250.00 300.00 £ Millions Summary by Fund Category Endowrnent Funds Restrlcted Funds 0.00 50,00 loo.00 150.00 200.00 250.00 3CrtJ.00 £ Millions Illiquid reserves are those wher8 assets and Ibabilities are not re81isable into cash withln on8 year. Unrestricted funds are almost entirely located within the MCF and RMBI charltles. The key obj8Ctive of the reseprfes pollcy Is to maintsln funds at a level that can be applied in accordance with the Charity's objects over the long term. With the exception of The Grand Charity and The Royal Masonic Benevol8nl Institution, the CMCS have specific objectiV88 that may prevent the group as a whole from applylng funds to areas where support is most needed. Thelr reserves are accordingly treated as restricted funds in the Group accounts. Followlng the commencement of operations of the Charity in April 2016, all festivals are now targeted to ralse funds for the new Charity. whilst current grant expenditure is charged to the CMCS. Over time, it is expected that th8 reserves of th8 CMCS will diminish lo a minimal level, subject to the 0￿s1Onall8gacy, at which lime the Charity will take over full responsibility for the CMCS, objectives. Whilst free reserves have increased over the period in accordance wth the Charity's strategic objectiV8S. th8 trustees do not consider them to be loo high at £94.9 M as of 31•1 March 2024. Page 17of66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT R•sorvos Policy (Continued) The overall reserves policy for the group recognises that investment retums provide diversity of incom8 and enable th8 MCF to provide funding for Its charitable activities over and above in-year incorne from the real fetums arising from the portfolio. The RMBICC holds £24.4 M of free reserves that amounts to 4.5 months of annual expenditure. This has fallen beneath the target rang8 of 8 to 12 months held to manage the financial and business risks to which the RMBICC is exposed. The RMBICC has developed and commenced Ihe implementation of a recovery plan to build reserves back up to target level over th8 n8Xt decade. Total group reserves of£392.5 M (2023: £386.5 M) includè £285.9 M set aside lo prowde future investment returns for funding expanditure in supporting beneficiaries. £74.6 M for replacing operating properties and other fixed assets and £32.0 M to cover operalional requirements, primarily in the RMBICC. The current level of reserves is within the range recommended by the Trustee Board of£350.00 M to £450.00 M, and is kept under regular review. Investm•nt Poll¢y and Porfomiance The group's global investment strategy seeks lo prot8Ct the capital value of investmenls that are ￿quired to fund operations for a two-year time horizon (the "Cash Reserve.) 8nd to invest 811 remaining funds for long temi growth, on a total return basis, with an overall objective of making a return of RPI plus 3010 n8t of all expenses. The Cash Reserve Is provided by Royal London Asset Management and utilises three of their funds, whlch provide a mix of instruments, including cash instruments, Treasury Bills, cov8r8d (secured) bonds, corporate bonds. Supranationals and mortgag8-backed securities. The performance objectives of the thre8 funds ar8: Short Tenn Money Market Fund: Short Tem Fixed Income Fund.. Short Tem Fixed Income Enhanced Plu8 Fund.. SONIA SONIA plu8 0.50% gross of fees SONIA plus 1.00% gross offees The Charity sponsored the launch of the Masonic Charitable Foundation Invèstm8nt Fund CAIF, which took plece on 18l October 2018. This is a unit trust with a highly efficient tax wrapper in which the Charity and several of its subsidiary charities own their shares in the fomi of unlts. Units will be sold as required in order lo top up th8 Cash Raserve on a quarterly basis. The investment strategy is directed for °Steady Growth" which is a medium-high risk strategy. Risk is managed through diversification, with the funds split between four different fund managers operating on multi asset mandates but utilising differing investment manag8ment styles. Th8 overall fund manager is Thesis Unit Trust Managemenl Limited and the custodian is Northem Trust. Page 18of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Inv•stm•nt Pollcy and P•rformanc• (Continued) The strategic and aclual asset allocations as at 31 at March 2024 are shown in the following tsble.. Asset Class Strategic Allocatlon 0.00% 7.500 54.500 Bonchmark Actual 31. March 2024 2.44% 5.67¥0 Cash Fixed Income International E U.K. E Emer in Market E uil Alternative Investments Pro ert SONIA FTSE UK World Gov. Bond Indax GBP MSCI Wodd ex UK NR GBP MSCI UK E uit NR GBP MSCI Eme in Markets E uit NR GBP HFRX Global Hed e Fund GBP IA UK Direct Pro ui 12.69 /0 2.85P/o 6.35/0 1.15°/0 3.750 3.75% 100.00% In order to balance property exposure across the group. sorne of the subsidiary charities 8180 made direct investments into the CCLA prop8rty fund. Performance under the new arrangements is Shown in the following table: MCF CAIF RLAM Money Market RLAM Short Torm Flxgd Income RLAM Short Tgrm Flxed Income Enhanced £0.23 M Capital Proleclion CCLA Property Fund Fund 8131° March 2024 Investment approach £192.83 M Steady Growth Multi- Assel £39.53 M Capilal Protection £0.67 M Capital Protedion £0.66 M Income & long-term Capital Growth MSCIIAREF UK other balanced ert ARC Charity GBP Steady Growth Benchmark Composite SONIA SONIA SONIA Peer Group ARC Charity GBP Steady Growth None None None Retum for the ar Benchm8rk return for Peer rou retum for ear return 3 ear benchmark ear er rou 16.20% 14.70% 9.70% 26.90% 25.40% 11.90¥0 5.31% 4.97Yo 4.30% 2.58¥0 2.42¥0 1.70% 5.69% 6.650 4.97°/0 4.30% 2.31°/ 2.42% 1.70% ear ear 1.10 9.700 6.20% 2.20 11.90Yo 4.300 2.60% 2.42% 1.70% Stock markets had a very strong run in the final quarter of the financial year, resulting in an increase in the valuation of the MCF CAIF from its opening value of £126.25 to close at £146.47 per unil. Page 19 of66 MASONIC CHARITABLE FOUNDATION Principal Risks and Mitigation Th8 principal risks identified and agreed actions to mitigate these are showm in the following table: Rlsk Signific8nl reduction in voluntary income from feslivals or the annual conlribulion recelved throu h UGLE Slgnificanl unexpected financial lo$$ from operations Cons uenco Diminishing reserves. particularly unrestricted funds, leading to inability lo fund current levels of grant expenditure over the longer term. Mltl atlon Reduce level of 5UPPOrt provided to beneficiaries and reduce overhead expenditure. Repulalional damage, loss of confidence with key slakehold8TS and Impa¢1 upon continuing firsancial SU5tainabllit Poor service lo benefi¢l8rles and pulalional damage. Wllhdrawal of ke services from su liers Impacts financial sustainability ard repulalional damage with donors Robu51 financial procedures, particulady budgetary planning and control. Oversight from the Finance Committee. Inadequate liquidity lo meet financial commitment5 Significant long-term lo¥s In the value of the investment portfollo Cash flow forecasting and liquidity plannlng wlthin the Inve8lmenl Strategy Appolntment of A88el Risk Consullanls as expert investment advisors, providing monthly performance reporting and analysls. Oversight from investment and ro ert Commlttees. Strong procedure8 and contro18 for processing grants. Oversight from Ma8onlc ort and Charll Grantg committee8 UGLE manage and monitor network5, servers and backup systems, and has deployed approprSate defence mechani8m8 e.g. firewalls, anlivlrus elc. Third party hosl6d systems lapplicalion8 have relevant controls and sccurily regimes. Infomiallon gy$lem8 are only acce$$ed via the VPN network andlor mulll- factor aulhenlicallon protocols. Grants made outside the Charity's Objects and ralin uidelines Cyberaltack on IT Systems Repulatlonal damage,1058 of confidence with key stakeholder8 and 18nlial Truslee liabilit Operational di3ruplion resulting In financial, reputational, legal and regulatory damage. MCF'5 Information Secudty Group IISG) have various digital & IT proGeduras and policies In place. Cyber awaren88s and Irainin ramme mandalo for all 81aff. Data protection policy, IT security and HR olicies in lac8 Financial proceduros, $eg￿8t￿on of duties, authority limits, IT security, In¢reased awarenes5 amon sl 51aff MCF Business Conlinuily Plan Oala protection breach Reput81ional damage and 8lgn6ficanl financi81 enallies Financial loss, reputational d8mage, adverse impact upon staff Fraud Unavailabilily of offlca accommodation Lack of compliance wllh employment legislallon Operations compromised Breach of legal obligations, potential flnancial penalties, breakdown of staff morale and adverse Impact on 8eNice rovlslon Operallonal breakdown, adverse impact upon staff morale, poor service lo beneficiaries and potentlal re utallonal dama HR procedures and staff handbook. Induction processes for new Staff. Ongoing management training and Personal Develo ment Review HR procedures.. organisalional and succession planning. Comprehensive documentation of procedures and conlrd$ Undue reliance on key persons Risks ar8 actively monitored by the executive and the senior18adership team. and fomially reviewed by the audit and risk wmmittee at its quarterly meetings. Page 20 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Streamline Enorgy and Carbon Roporting Introduction The Companies (Directors, Report) and Limited Liability Parlnerships (Energy and Carbon Report) Regulations 20181.the 2018 Regulations.) implement Ihe Governmenl's policy on Streamlined Energy and Carbon Reporting (SECR). This legislation came into force on th8 1$1 April 2019 and affects.. quoted compani8s' large unquoted companies (including charitable compani8s): large Limited Liability Partnerships (LLPS). Under SECR large unquot8d companies including charitsble organlsatlons are obliged to report their UK energy use and associated greenhouse gas emissions as a minimum r81ating to gas. electricity and transport fuel, a5 well as an intensity ratio and infonnation relating lo energy efficlency action, annually through their annual r8POrts. The Group Is a large unquoted company and is required to comply with SECR. Summary of group omlsslon8 for 2023124 Prevlous years 2021122 2020121 UK Ireenhouse i*s emlsslons and ener8V Uge dats for the perlod l Aprll 2012 to 31 March 2023 Ener8y consumptbon used to calculate emlsslons Energy consumptSon break down Gas total Curr•nt Y•ar 2023124 2022123 2019120 Unlts 21.090.778 15,450,977 27,528,532 27,700,175 28,536.643 kwh 16,846.083 19,975,023 21,657,456 21,999,504 22,468,982 kwh Purchased fuel18eneratorsl 12,780 13,356 5,106 7,473 Information omitted 5,428,311 kwh Electrlclty total 4,766,345 4,749,336 5,409,426 5,323,912 kwh Transport fuel Icompany fleet) Other Fuel Itravel in em loyee-owned vehicles Scope l emlsslons Gas consumption 88,701 313,CQ4 226,958 254,747 278,929 kwh 376,869 400,257 229,586 114,538 360,421 3,105 3,646 3,966 4,045 4,144 tC02e Owned tran5PQrt 22 79 55 63 98 tC02e Other Fuel Igeneratorsl NIA tC02e Sco e 2 emls51ons Purchased electrlcitv 987 918 1,149 1,241 1,387 tC02e 5copt 3 emission5 Businèss travel in ernployee- owned vehicles Totsl Gross emlsslons 57 28 128 tcoie 4,207 4,746 5,228 5,379 5.756 IC￿? Inten51ty ￿tIO 4.35 4.55 5.35 tC02elFTE Page 21 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT Streamline Energy and Carbon Reportlng (Continu•d) Roporting requlrnmènts: Thls Is the fifth year of reporting for the Group under SECR. Th8 reporting will b8 carried out annually and the relevant data and emissions will be included in ourAnnual Report. Emissions from prewous year are also includ8d as required by SECR guidance. The Group has now included all five y8ars of reporting to show the trajectory of emissions. Methodology The 2019 HM Govemment Environmental Reporting Guidelines have been followed. The Group has also U88d the GHG Reportin9 Protocol - Corporate Slandard and have used 2023 UK Government's Conversion Factors for Company Reporting. The Group has included 1000/0 of emissions from the parent company and all subsidiaries In the SECR reporting. Ap8rtfrom the RMBI Care Co. care homes and MCF HQ, the majority of the Group's properties are leased out and therefore MCF is not the energy user. Where properties arg vacant, billed consumption has been included in the SECR submissions. In many cases, properties have been undergoing major refurbishments and energy meters hav8 been removed. Inten81ty ratlo The chosen intenslty measur8m8nt ratio is total gross emissions In metric tonnes C02e per full time employee {FTE). During 202312024, the number of FTE for th8 Group was 1,090. which includes FTE for its biggest subsidiary, RMBICC (996 FTE for 2023124). Energy èfflcloncy actlon8 No energy efficiency actions were undertaken In this reporting year. The Group's overall emisslon8 for 2023- 24 have decreased by 539 tonnes of CO2e, (approximately 11 %). This is mainly du8 to a reduced portfolio of properties wlth gas and an updated methodology for co118ting mlleage data for company fleet from RMBICC records, with RMBICC now managing their own fleet and mowng away from a fleet managemenl contract. The Group has included all data since the start of SECR complianc8 and its first reporting year to show the steady reduction in our emissions {27% overall) and corresponding energy use. The Charity is contlnuing lo V￿rk closelywith RMBICC, as its laffJest subsidiary, to address Its environmental impacts and reduce its emissions. Since March 2019, RMBICC has been working with Lantem (UK) Ltd as its trusted sustainability partner and has initiated several sust8in8bility projects to address energy consumption within the Care homes. Plans for Future Perlods In March 2023 the trustee board approved a seven-year {2023 - 2030) strategy in which it was stsled that the Charity would continue in its mission to build better lives by continuing its principal areas of activity, viz. supporting disadvantsged familie5 within the Masonic community, awarding grants to local and r8gional charities and supporting the development and upgrading of th8 RMBICC care home network to enable il to reach profitability and eventually become a net contributor within the consolidated MCF group. Whilst doing this the MCF would a150 continue to strength8n its relationship with the membership body, the United Grand Lodge of England ("UGLE'I, and seek to achieve greater alignment with its vision and purpose. UGLE Since then has unveiled its own strategy for the next seven years and it has further described how it intends to lay a greater emphasis on "Community Engagement., a concept that would include, but not be solely restricted to charitable activities undertaken by the MCF. Page 22 of 66 MASONIC CHARITABLE FOUNDATION STRATEGIC REPORT The new UGLE strategy presents challenges and opportunities for the MCF, which we are currently evaluating. The trustees will continue to seek above all else lo pursue activities in the best interests of the MCF itself and the achievement and furtherance of its own Objects, but we are also cognisant that we must consider the expressed view5 and opinions of the body representing the members from whom alone we have always drawn our support. Mutual feedback and consultation are underway and we are reviewing elements of our 2023 strategy in the light of these developments. Our strategy committee has been refomied, consisting of members of the trustee board and appointed external experts. This committ88 will lead an initial review of the Charity's strategic prioriti8s and the resources required to achieve them, which will then be fully consid8red by the Iruslees. We are confident that we shall be a significant contributor to the success of the UGLE strategy and emerge stronger from the collaborative effort. Apart from this more fundamental review, and to enable it to achieve its strategic goals over the next 12 months. we will undertake a range of activities. including- Meetin the need of its stakeholders Undertaking membership activities to establish awar8n8SS, Sentiment and engagernent benchmark5 and trends. Developing new theori8s of change that illustrate the pathw8y for how the Charity will achieve the outcomes defined in ils new strategy for both its masonic and charitable target groups. Rewewing independent living loans lo establish the best appllcats'on of loans for the benefit of those in need. Und8rtaking a r8Vi8w of Ihe Charity's statutory and impact reporting, including the statutory report and accounts, financial highlights and impact report to ensure publications have a clear intended audience and purpose and 8void unnecessary duplication. Cre81ing a learning and development plan for Trustees and committ88 memb8rs that S88k furth8r development in their roles. Delivering Ihe biennial festival forum for Charity fundraisers O timisin the efflclenc and effectiveness of delive of its serwces Undertaklng an IT systems upgrade to ensure staff and volunteers are working and collaborating effectively to the best of their ability when delivering support and services lo the communities the Charity supports. Imp18menting a n8w digital purchase to pay system to streamline ordering and payment processes across th8 Charity and its subsidiaries. Undertaking a full rewew of workflow and streamlining of operations. Enhancing automation of Grft Aid envelop8 processing to improve digital scanning and data capture. Page 23 of 66 MASONIC CHARITABLE FOUNDATION TRUSTEES, ANNUAL REPORT Reference and Administrative Information The trustees are pleased to submit their report for the year ended 3181 March 2024. This report includes a dir8Ctors' report as required by Section 415 of The Companies Act 2006 and a strategic report as r8quired by The Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013. Name and Registered Offlca The name of the charity is the Masonic Charitable Foundation (the 'charit￿) and it has its registered office at 60 Great Queen Street, London, WC2B 5AZ. Trustsos The Tfuslees who served during the year were.. John Boyington. CBE {Reslgned 31SI July 2023) Sinead Brophy {Resigned 3151 July 20231 Simon Duckworth, OBE, DL (Resigned 31SI July 2023) Clive Em8rson {Appointed Treasurer 1st August 2023) Dr Simon Fellemian Edward Goodchild (Appointed 131 August 2023) Alan Graham, MBE Antony Harvey (Resigned 3181 July 2023) Chnstoph8r Head Michael Heenan (Treasurer} {Resigned 31. July 2023) James Long, TD (President) (Appointed Chairman 151 January 20241 Charlotte Millar (Appointed co-optee 1. August 20231 Stephen Robinson Marie Shenton (Appointed 1* August 20231 David Southem Bruce Walker Andrew Wauchope (ResSgned 31￿ July 2023) Sir Paul Williams, OBE, KStJ, DL (Deputy President and Chairman lo 31Jl December 2023) Howard Wilson Exocutlve The senior leadership team {"SLf) during the year to 3111 March 2024 we￿. Les Hutchinson. Chief Executive Suhail Alam, Chief Digital and Technology Officer Charles Angus, Group Financ8 Director Louise Bateman, Group Human Resources Director Paul Crockett, Head of Fundraising Gareth Everett, Head of Masonic Support Mark LLoyd, Managing Director Royal Masonic Benevolenl Institution Care Company R8b8cca Lloyd, Head of Charity Grants John Mccrohan, Operations Director Brenda Nurse, Company Secretary Harry Smith, Head of Communications Raluca Utureanu-Tsakiris. Head of Property Page 24 of 66 MASONIC CHARITABLE FOUNDATION TRUSTEES, ANNUAL REPORT Auditor Knox Cropper LLP, Chartered Accountants, 65 L8adenhall Street, London, EC3A 2AD Bankers BarGlays Bank Plc, Level 28, 1 Churchill Place, Canary Wharf, LorKlon, E14 5HP Nalional Westminster Bank Plc, Bloomsbury Parfs Branch, 214 High Holbom. London. WC1V 7BX Coutts & Co, 440 Strand, London, WC2R OQS Investment Advlsors Asset Rlsk Consultants Limited, 7 New Street, St. Peter Port, Guemsey. GY12PF Investment Managers CCLA, Senator House, 85 Queen Victoria Street, London, EC4V 4ET Sar8sin & Partners LLP, Juxon House. 100 St. Paul'5 Churchyard. London, EC4M 88U Royal London Asset Managemenl Ltd,, 55 Gracechurch Street, London. EC3V OUF Thesls Unit Trust Management Ltd. Exchange Building, St John's Street, Chlchester, West Sussex P019 1UP Waverton Investment Man8g8ment Ltd., 16 Babmaes Street. st. James. London. SW1Y 6AH Solicitors Stone ￿'ng LLP, Boundary House, 91 Charterhouse Street, London, EC1 M 6HR Wedlake Bell LLP. 71 Queen Victoria Str88t, London, EC4V 4AY Page 25 of 66 MASONIC CHARITABLE FOUNDATION TRUSTEES, ANNUAL REPORT Structure. Governance and Management Organlsatlon The Charity is constituted as a company limited by guarantee and its governing document is its articles of association. It was registered as a charity on 4th December 2015 and commenced activities on 1" April 2016. The Charity is the parent or ultimate parent company to Ihe following organisations: Charlty Name Legal Status Charlty Rogistorod No. 1170335 Mombership D￿211# Truste• or Company Board The Grand Charity Company Ilmlted by guarantee MCF is sole company law member MCF is sole member MCF and Chalrman of MCF The Grand Charlly Unincorporate¢J Irusl Company Ilmlted by guarantee 281942 MCF Is sole cor orate trustee MCF and Chairman of MCF The Royal Masonic Trust for Glrl8 and Boys 1170336 MCF is 8018 company law member Trustees of MCF The Royal Masonlc Trust for Girls and Bo The RMIG Endowment Trust The Masonic Samaritan Fund Unincorporated trust Unincorporated tru81 Cornpany limlled by guarantae 285836 MCF18 801e cor rale Irusle8 MCF 18 sole cor rale Iruslee MCF and Chairman of Mcr 290883 MCF 1$ sole member 1130424 MCF is sole company law member MCF 58 Sole member The Royal Masoni Benevolenl Inslilulion The Royal Ma50niG Benevolenl Institution Ca Com an The Royal Masonic Hos ital Charil The Rusplnl Fun(i Unincorporated trust Company limlled by gtsaranlee 207360 MCF is sole cor rale Iruslee Direclorsllru5tees of RMBICC 1163245 MCF is sole company law member MCF is sole member Unincorporated trust Unincorporated Irusl Company Ilmlted by shares Company limited by shares Company limited by shares 205793 MCF is 501e cor rale Iruslee MCF is sole cor rale Iruslee MCF appoints the directors RM8ICC appoints the directors RMBICC and Latis Homes Limited inl directors MCF appoints the directors RM81CC appoints the directors RM81CC appoints the directors 1176327 MCF is sole member MCF Trading Limited NIA MCF 18 the sole shareholder RMBICC RMBI Tradlng Lirnlled NIA Stability Inveslrnenta Limited NIA RMBICC and Lali8 Homes Llmlled Compass Housing Communily Benefit Socie Company limited by Shares Company limlled by Shares NIA MCF. its chairman and CEO RMBICC RMBI Iselllementl Limiled NIA 19121 GQS Limited NIA RMBICC The basss for delermining that the above charities are subsidiaries of the Charity are that they are effectively under the control of the Charity's Trustees and they undertake charitable activities which further the charitable aims of the Charity. Th8 Trusteas of the Charity, as a body, either act as trustee of the charit8bl8 subsidiary, have the right to appoint the majority of trustees of the subsidiary or act in accordance with their statutory powers as sole member. Page 26 of 66 MASONIC CHARITABLE FOUNDATION TRUSTEES, ANNUAL REPORT Governance and Management The registeredlmain offI￿S for all the subsidiary organisalions Is 60 Great Queen Streat, London. WC2B 5AZ. Details of the summarised results are given in nole 20 to the accounts on page 62. The organisations detailed in the table below were known collectively as the Central Masonic Charities I"CMCs'}. The primary purpose of the consolidation of the activities of the CMCS under the Charity was to streamline the provision of support to beneficiaries and to provlde greater flexibility in ensuring that support is prioritised towards those areas of greatest need. Charlt Namo The Grand Charit The Roy81 Masonic Trust for Girls and Boys Referenc TGC RMTGB De8crl tion of Chari Dormant.. future income receivad granlad to the MCF Grant making.. individual beneficiaries and institutions. focusing upon relief of poverty and advan¢emenl of education for Child￿n Grant making.. individual b8neficiaries, focusing upon relief of hardship or distress of children Support for the Royal Masonic School and masonic puplls at the school Grant making.. individual b8n8ficiari8s and inslitutions, focusing upon health and disability, and mèdical res8arch Grant making: individual beneficiaries. focusing upon end of life care The Ruspini Fund Ruspini The RMIG Endowm8nt Trust RMIGET The Masonic Samaritan Fund MSF The Royal Masonic 88n8volent Institution RMBI The Royal Masonic Benevolent Institution Care Company RMBICC Provision of specialist nursing and dementia registered care through operation of care homes The Trustee Board is the ultimate decision-making and controlling body for the Charity. It d&l8gates day to day operalions to the SLT in accordance with a schedule of delegated financial authorities. Additionally, a number of areas of governance are delegated to the committees detailed in the following tabl8. Boardlcommlttoe Purpose Megtlng8 Tru8le8 Board Main d8clsion-making body wilh ultimate responsibility for the Chari Identification and mitigation of risk (including cyber security), oversi ht of extemal and internal audit Considaration of applications for grants from organisations istered with the Charit Commission Ensuring adequate procedures are in place to manage all aspects of financial lannin controllin and re ortin Supporting the Masonic community's fund raising activities lo su ort the Chari Maintaining investment strategies lo meet the requirements of th8 Chari ointment and monitorin offund mana ers Determining eligibility criteria and range of grants and support services to individuals connected with the Masonic communi Appointment of Trustees and committee members Audit 8nd Risk Charlty Grants Finance Fundraising Investmenis Masonic Support Nominations needed Prop8rty Development and execution of strategies to optimise the returns from the Charil ro erl ortfolio Page 27 of 66 MASONIC CHARITABLE FOUNDATION TRUSTEES, ANNUAL REPORT Governance and Management (Continued) Remuneration strategy D8t8miination of executive and staff & benefits Development and implementation of strategies to support the Chari ectives. The Trustee Board and ¢ommitt88s also hav8 regard to the affairs of the CMCS with the excèption of The Royal MasoniG Benevolent Institulion Care Company I'RMBICC") and its subsidiaries, which are run by their own board of trust88s and committees. This is subject to a memorandum of understanding which lays out key strategic decisions Ihal require endorsement by th8 MCF'S Trustee Board. With the exccption of RMBICC, the CMCS do not employ any staff. Services are providcd to the CMCS by the Charity and are recharged to the Cmcs (excluding RMBICC) monthly, based upon the number of grants processed on behalf of each CMC. The chief executive chairs a monthly SLT team meeting, which handles all operational matters. Appolnlmont, Induction and Tralnlng of TrustO08 and Commlttfje M•mbor8 Up to 18 Trustees can be appointed to the Board through 8818ction by the nominations commlttee and approval by the Grand Master on the recommendation of the Grand Masler's Council. In addition, up lo 5 persons may be co-opted by th8 Trustees to fill specific skills gaps or casual vacancies, again following recommendation of the nominations committee and with the approval of the Grand Masler on the recommendation of the Grand Master's Council. Trustees may include people who are not Fr8em8sons. The recruitment process for trus18es and committe8 members adheres to a robust 5uccession-planning framework based on core competencie5. bringing together diversity of interests and 8xperience. All Trustees and committee members are requlred to demonstrate that they have the skills and beh8viours required to govem the Charity in the long term. To support this the￿ is an evaluation of expertise, perfomiance and the identification of development goals made on a periodic basis. An induction programme for new recruits and refresher induction for existing Trustees and committee members is tailored to meet individual needs. The President and Deputy President are appointed annually by the Grand Mast8r on the recommendation of the Grand Mastels Council. The chaimian and treasurer are elected by the Trustees annually. Remuneratlon of tho SLT The Charity's poll¢y is to reward members of the SLT according lo their expertise and experience. The benefit package comprises a basic salary. pension contribution and private health provision. Basic salaries are reviewed annually against the charlty sector as well as the wider professional market and information is presented to the chief executive for his consideration and then lo the MCF remuneration committèe. No member of the SLT is able to make a decision on their own pay. Page 28 of 66 MASONIC CHARITABLE FOUNDATION TRUSTEES, ANNUAL REPORT Governanc8 and Managem•nt (Continued) Equity, Diversity and Inclusion (EDI) The Board continuously rewews the Charity against the Charity Govemance Code and recognises there is more to be done lo create a rnore diverse Board and committee structure. Following input from staff across Ihe organisalion, an EDI charter was d8v8loped and implemanted for the Charity. Members of the senior leadership team hosted a number of cultural, religious and social events during the year to help promote greater understsnding and Inclusi￿ty. Trustees, Duty to Promote the Succ088 of tho Charlty- Soctlon 172 8tatsmont Trustees have a duty to promot8 the success of the Charlty and. In doing so, are required by Section 172 of the Companies Act 200610 have regard Io v8rious fa￿OrS. Robust forward planning and decision making proc8sses ar8 raquir8d to ensure that the Charity continues to meet its objectives and deliver services lo its beneficiaries in the most efficient and effective manner. Trustees regularly consider progress made against the Charity's strategic plan 2023 to 2030 and consider advice received from th8 strategy committee r8garding potential chang8s to 8nhan¢e the activities that contribute towards Ihe meeting of the Charity's objects. A strategic financial p18n is refreshed and reviewed annually by the Trustees to ensure that the appropriate financial resourc88 are availabl8 to m881 the n88ds of beneficiaries for the long term. Trustees are responsible for identifwng and managing risks, which could impact upon th8 achievement of the Charity's objectives or damage its repulation. They delegate Ihe detailed oversight to their audit and risk Gommittee and receive and consider updates arKI recommenijalions from that committ88 at every Board m88ting. A risk manag8m8nt tool has b88n imp18mented during the year Ihat facilitates Ihe management and reporting of rlsk and the aGtions developed to rnitigate those risk5. The 5enlor leadership team reviev and updates the reglster prlor to each of Its monthly meetings. Trustees, responsibilities include setting the Charity's culture. values and standards and ensuring that its obligations to its stakeholders are mel. The Charity has a range of policies and processes that promote corporate responsibility and ethical behaviour. Areas covered include fundraising, grant-rnaking, financial probity, conflicts of interest, safeguarding, dignity at work and whistleblowing. A policies register is maintained and reviewed regularly by the audit and risk committee. The MCF, and before it the CMCS have hlstorical and very strong connections wlth Freemasonry, most parti¢ulady wlth the UGLE and its members in England and Wales, and its Districts and lodges. Masonic provinces run appeals to support the activities of the Charity through its unique and highly effective system of festival app8als and the Charity supports m8mb8rs of th8 Freemasonry community who a￿ in need of support. The Charity is strongly aligned towards supporting Freemasonry at all levels, recognising that both will prosper from such engagemenL The Charity recognises that its employees are central to delivery of ils support to beneficiaries in accordance with its values. rosponding to need making a difference" and "striving for excellence" It is important lo the Charily that all employees feel valued and fully engaged in the delivery of the mission. To facilitate this, it undertakes regular team and organisational meetings and briefings as well as individual appraisals and feedback sessions. A full salary benchmarking exercise is undertaken every third year to ensure that amployees are paid appropriately, with annual reviews against external pay data. Page 29 of 66 MASONIC CHARITABLE FOUNDATION TRUSTEES, ANNUAL REPORT Gov•rnanc• and Managam•nt (Continuod) The Charity has implemented an equity. diversity and inclusivity policy that promotes equality of opportunity for all staff and job applicants. This applles over the duration of their relationship with the Charity, from recruitment, training, career development and promotion within the organisation. Provision Is made lo support staff who becomè disabled during the course of their employment. Staff are supported by a network of visiting volunteers, drawn from the Masonlc communily. who are provided with full training and support from specialist staff from th8 Charity, These volunteers perform a key rol8 of engaging with actual and potential new beneficiaries to ensure thal they rec8lV8 th6 SUPPOrt they require. linking closely with the Masonic Support teams within the Charity. The Charity views suppliers as key partners in the delivery of its servlces and values the fflany long-term relalionships that is has built up over many years. It understands the importance of timely engagement to ensure a mutual understanding ofboth parties, requirements to derive optimum value from the r8lalionships. The Charity makès prompt paym8nl on all validal8d invoices and engages proactively with suppliers in resolving any ar888 of disput8 in 8 prompt and fair manner. The Charity places expectstlons on its key suppliers thal they undertake business in a transparent manner and hav8 in plac8 policies such as a modern slav8ry policy and statement, which demonstrate their commitment to this important aspect of ethical and responsible business practice. When setting the objectives and planning the work of the Charity for th8 year, the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit. Page 30 of 66 MASONIC CHARITABLE FOUNDATION TRUSTEES, ANNUAL REPORT STATEMENT OF TRUSTEES RESPONSIBILITIES Statement of Responslbllltl88 The Trustees, who are also the directors of the Charity for the purposes of company law, are responsible for preparing the Trustees, report and financial statements in accordance wlth applicable law and United Kingdom Accounting Standards (U.K. °GAAP'). Company law requires the Trust88S to prepare financial staternents for each financial year. which give true and fair vi8w of the slate of affairs of the Charity and the group and of the income and 8XP8nditure of the group for that year. In preparing these financial ststements. the Trustees are required to.. sel8Ct suitabl8 accountlng policies and then apply them consistently., observe the methods and principles in Accounting and Reporting by Charitl88.' Statement of Recommended Practlce 8ppIic8ble to charities preparing their financial slatements in accordance with the Financi81 Reporting Standard applicable in the Unit8d Kingdom and Republic of Ireland (FRS102),' make judgements and estimates that are reasonable and prudent., slate whether United Kingdom accounting stand8rds have been foll0v￿d, subject to any material departures disclos8d and explained in the financial statements; and prepare the financial stal8m8nts on the going concern basis unless it is inappropriate to presume thal the charity wlll continue lo operate. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any tim8 the finan¢lal position of the Charity and the group and enable them to ensure that the financial statements comply wilh the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and d8t8Ction of fraud and other irregularities. Statsment of Dlsclosure of Infomiatlon to Audltor Each of the Trustees has confirmed that there is no Infomiation of which they are aware which is re18vant to the audit, bul of which the auditor is unaware. They hav8 further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such infomiation. Audltor A resolution proposlng Ihal Knox Cropper LLP be re8ppointed as auditor will be put to th8 members. Approval by Trustees This report, including the strategic report, was approved by the Trustees on121h September 2024 and signed ont ir behaw by me Longi TD Pr8sident and Chairman, MCF Page 31 of 66 MASONIC CHARITABLE FOUNDATION REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF THE MASONIC CHARITABLE FOUNDATION Opinion We have audited the financial statements of tha Masonic Charitable Foundation (the'charitable Companl,) and its subsidiaries {'the group'l for the year ended 31 March 2024 which comprise the Consolidat8d Statement of Financial Activities. the Consolidated and Parent Charity Balance Sheets, Consolidat8d stat8m8nt of Cash Flows and notes lo the financial statéments, including a summary of significant accounting policies. The financial reporllng framework thal has been applied in Iheir preparation is applicab18 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: give a true and fair view of the slate of the group's and the Charitabl8 Compangs affairs as at 31 March 2024 and of the group's income and expenditure for Iha year then ended; have been properfy p￿pared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have b88n prepared in accordance with the requirements of the Companies Act 2006. Bag18 of oplnSon We conducted our audit in accordance with Int8mational Standards on Auditing (UK) (ISAS (UK)) and applicabl8 law. Our responsibilities under those standards ara further described in the Auditor'5 responsibilities for the audit of th8 financial statements section of our report. We are independent of the group 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 responsibilitie5 in accordance with these requirements. We b81i8V8 that the audit evidence we have obtained is sufficient and appropriat8 to provide a basis for our opinion. Concluslons rolatlng to golng conc•rn In auditing the financial slalemenls, we have conGluded that the Trust88s' use of the going concem basis of accounting in th8 preparation of the financial stalements is appropriate. Based on the work we hav8 P8rfomi8d, we have not identified any malerial unc8rtainti6s relating to events or conditions that, individually or collectively. may cast significant doubt on Ihe Charitab18 Company's abilily to continue as a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the re18vant sections of this report. other Infomiatlon The other information comprises the infomation included in the annual report, other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other infomiation. Our opinion on the financial ststements does not cover the other information and. 8xcepl to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. Pag8 32 of 66 MASONIC CHARITABLE FOUNDATION REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF THE MASONIC CHARITABLE FOUNDATION Our r8sponsibility is to read the oth8r 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 Ihe audit or otherwis8 appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we ar8 required to determine whether ther8 is a material misstatement in th8 financial stat8ments themselves. If. based on the work we have performed, we conclude that there is material misstatement of this other infomation, we are required to r8POrt that fact. We have nothing to report in this regard. Oplnlon on other mattors prescr1￿d by the Compani•s Act 2006 In our opinion, based on th8 VKJrk urMJertaken in the course of the audit: the infomiation glven in the Trustees, report, which includas the directors, report and the strateglc report prepared for the purposes of company law, for Ihe financial year for which the flnancial ststem8nts are prepared is consistent with the financial slatements- and the strategic report and the directors, report included within the Trustees, report has been prepared in accordance with applicable legal requirements. Mattern on whlch w• arn required to rnport by exception In the light of the knowledge and understandlng of the group and the Charltable Company and its environment obtained in Ihe cours& of the audit, we have not identified material misstatements in the strategic report or the direclors, rèport included within the Trustees, report. We have nothing to report in respect of the following Matters wh8r8 the Companies Act 2006 require8 US to report to you if. in our opinion.. the Charitable Company has not kept adequat8 and sufficient accountlng records, or returns adequate for our audit hav8 not been received from branches not visited by us., or the Charitable Company's flnancial statements are not In agreement with the accounting records and returns,. or certain disclosures of Trustees, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Respon8lbllltles of Tru8tee3 As explained more fully in the Truste8s' Responsibilities Stalement set out on page 34, the Trustees {who are also the directors of the Charitable Company for the purposes of company law) are responsible for tha preparation of the financial statements ané for being satisfied that they give a true and fair view, and for such internal Gontrol as th8 Truslees determine is necessary lo enable tha preparation of financial statements that are f￿e from material misststement, whether due to fraud or error. In preparing the finanGial statements, the Trustee5 are r8sponsible for assessing the group's and Charitable Company's ability to continue as a going concern, disclosing, as applicable. matters related to going concern and using the going ¢on¢8rn basis of accounting unless Ihe Trustees either intend to liquidate tho group or parent charity or to cease operations, or have no realistic altemalive but to do so. Page 33 of 66 MASONIC CHARITABLE FOUNDATION REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF THE MASONIC CHARITABLE FOUNDATION Audftor's responsibilities for tho audit of the financial stat•m•nts Our objectives are to obtsin r8asonable assurance aboul whether the financial statements as a whole are free from material misstatement, whether dua to traud or error, and to issue an auditor's report that includes our opinion. Reasonable assuranc8 Is 8 high level of assurance, but is not a guarantee that an audit conducted in accordanc8 With ISAS {UK) will always detect a material misstalement when it exists. Misstatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, Ihey could reasonably be èxpected to influence the 8conomic decisions of us8rs taken on the basis of these financial statements. Irregularltles. including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibllities. outlined above, lo clet8Ct material misstatements in respect of irregularities. including fraud. The extent to which our procedures are capable of dat8cting irregularities, including fraud is detailed b61ow'. The group is required to comply with both compeny law and charity law and, based on our knowledge of its activit188, we identified that the legal r8quirement to correctly account for restricted funds is of key significance. The group is also required to comply with the Health and Social Care Act and th8 regulations issued thereunder and compliance wilh these is a key issue. W8 gained an understanding of how the group complied with Its legal and regulatory framework. including the requirement to properly account for restricted funds and lo comply with the Heath and Social Care Act. through dlscusslon8 Wlth management and a ￿VIeW of the document8d policies. procedures and controls. The audit team, whi=h is experienccd In the audlt of charities, considered the group's suscept bility lo material misstatement and how fraud may occur. Our considerations inclLKled the risk of management override. Our approach was to check that all restricted Income was properly identlfied and separately accounted for and to ensure that only valid and appropriate expenditure was charged to reslrict8d funds This ncluded revlewing joumal adjuslrnents and unusual Iransactlons. We also reviewed reports issued for the care homes, by the Care Quality Commisslon. to ensure there ware no cases of non- compliance. A further descrlptlon of our r85ponsibllltl8s for the audlt of the flnanclal staternents Is located on the Financial Reporting Council's website at.. www.frc. auditor5res onsibilities. Thls description forms part of our auditor's report. Uso of tho audit rnport Thi5 report is made solely lo the Charitable Company's members 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 charitabl8 Company's member those matters we are requir8d to state to them in an auditorfs report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume r85ponsibility to anyone other than the Charitsble Company and tha Charitable Company's members for our audit work, for this report or for the opinions we hav8 fomed. Neil Wilkinson FCA Senior Slatutory Auditor for and on behalf of Knox Cropper LLP Statutory Auditor 65 Leadenhall Street. London EC3A 2AD Page 34 of 66 MASONIC CHARITABLE FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including an Income and Expenditure Account) YEAR ENDED 31 MARCH 2024 Nole Unrestricted Restricted Endowment funds funds funds 2024 2024 2024 £'ooo £'ooo £'ooo Tolal Funds 2024 £'ooo Total Fund5 2023 £'ooo INCOME Donallons and legacies Annual contributions from Lodges Charilable aclivities Investm8nl income Other income 14,369 3,196 4,537 18,906 20.425 3,196 3.232 52,689 47.092 10,907 8,477 22 29 52,689 8,488 22 2.337 82 Total Incomo 19.902 65,736 82 85,720 79,255 EXPENDITURE Cost of generating fvnds Investrnent manag8menl costs (7881 (8201 (34) (966) (8221 1787) (18> (1,8041 (2,116} 1,608 1,000 18 2,826 2,903 Charltablo actlvltlos Masonic grants Non-masonic grants Residential and care homes {6,8301 112,290) (1,892) 115,150) 0 (64,473) 0 {19,1201 (16,2711 0 (17,042) (13,5171 0 (64,473) (64.3951 8,722 91,913 100,635 94.183 Total •xpondlturo 10,330 92,913 18 103,261 97,086 Net gainslllossesl on Investments 12.13 9,095 12,680 2,064 23,839 10,726 Not incomel(expendltur•) Transfers between funds 18,667 (14,497) 2,700 2.128 6,298 (28,5571 (2,700) OTHER RECOGNISED GAINSI(LOSSES) Actuarial gainsl(losses) on pension scheme Pension Liability Buy out NET MOVEMENT IN FUNDS {271) 28 (271) {1,2431 28 36 18.667 572 Totsl funds brought forward 80,048 295,053 11,364 386,465 416,229 Totsl funds carrfod forward 98 715 283,013 10792 392520 386465 All income and expenditure derive from continuing activities and all gainsllosses are included in the statement of financial activities The notes on pages 38 to 66 form part of these financial statem8nts. The prior y8ar figures are analysed by fund in note 21 on page 64. Page 35 of 66 MASONIC CHARITABLE FOUNDATION BALANCE SHEET as at 31 March 2024 Company Number 09751836 Note March 2024 March 2023 Group Company £'ooo £'ooo Group Company £'ooo £'ooa FIXED ASSETS Intangible assets Tangible assets Investment properti8S Investments 10 103 77,086 45.618 199,829 103 223 47 77.002 39.526 194,037 47 312 12 13 60.729 48,205 322.636 61,055 310,612 48,564 CURRENT A38ETS Debtors Investments Short tem deposits Cash at bank and in hand 14 13 10,340 40,482 28,858 15,880 2,467 3,143 11,905 41.028 29.107 17,872 2,543 5.795 6,291 95,560 11,405 99,912 CURRENT LIABILITIES Creditors falling due within one year 15 (16,658) (3,553) (14.930) (3,463) NET CURRENT ASSETS 5,371 TOTAL ASSETS LESS CURRENT LIABILITIES 401,538 68,907 395,594 53,935 Creditors falling due after one year Pension scheme a6seVlliabilityl 15 16 (11,706) 2,688 {515> 111,9521 2,823 (500) Total not a850ts 392,520 CHARITABLE FUNDS Endowment funds 17 10.792 11,364 Rostrlctod Income funds 17,18 283.013 1,171 295,053 1,014 Unrostrlcted funds 17 98,715 67,221 80,048 52,421 Total charitable funds 392,520 68,392 386,465 The financial statemants W8re approved and authorised for issue by the Trustee 8oard on 121h September 202 and signed on th8ir behalf by: esL ng, TD ent and Chaiman Clive Em8rson Presi Treasurer The notes on pages 38 to 66 fomi parl of Ih8S8 financial statements Page 36 of 66 MASONIC CHARITABLE FOUNDATION CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2024 Note 2024 £'ooo 2023 £'ooo Op•ratin9 Activltlos Net ¢ah provlded byllus•d in) O￿latIng Actlvtti•s 26,410 27,379 Caoh flow• from Inv08tlng a¢tlvltl Dividends. intere81 and rents from investments Proceeds from the Sale of tangible fixed assets Purchase of tangible fixed assets Tran8fer in of Compa85 Housing assets Purchase of Intangible flxed as5el8 Pro¢eeé$ from Ihe sale of Investments Purchase of Inveslmenls 10,WJ7 ,477 1,072 (5,614) {4.7031 (87) 43.386 (25,1281 171 38.747 {22,845) Net cash provlded byllu8ed In) Inva•tlng Actlvltl88 24.383 19,830 C￿h IIow8 from flnanclng actlvltl•8 Bank loan Repayment of bank loan8 10,000 {188) (194) Not ¢Mh provlded byllused ln) Flnancln9 Actlvltl•8 194 Chang• In ca8h and cuh •qulval•nt8 In th• roportlng perlod Cash and cash equivalents al the beginning of the reporting per￿￿ 12.241) 2,263 46,979 44,716 Cash and cuh •qulvJlents at Ihe end of tho reportlng Porlod 24 44,738 46,979 Notes on the ca•h flow Statement Roconclllatlon of not Incomel(oxp•ndlturo} to n•t ca8h flow from operatlng actlvltle8 Nel incomelexp8ndilure ag per the Statement of Financial Activities 6,298 (28,557) Adjuslmenls for.. Depreciation charges Dividend$, interest and rents from investments (Gainslllosses in investments (excluding within ¢a¥h balanwJl Movements in deflned benefit pension scheme IGainyLoss on sale of tangl￿e fixed assets Decreasellincreasel in debtors Increase In Credltors 4,650 110,9)7) 129,577) 1138) {8) 1,565 1.705 3,662 18,4771 6,070 11071 1,207 12,1451 Not ca8h provlded byllu8od In) Opwating Actlviti8s 26,410 27,379 Page 37 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (a) Statement of compllanc¢ The financlal statements of the Masonic Charitable Foundatlon and its subsidiaries (th8 °group°) have been prepared in accordance wlth appllcable UK accounting standards, including Financial Reporting Stsndard 102 'The Financial Reporting Standard applicable In the United Kingdom and the Republic of Ireland" I'FRS 102.). Additionally, they comply with the Companies Acl 2006, the Charities (Accounts and Reports) Regulations 2008 and the Statement of Recommended Practice 'Accounling and Reporting by Charities" (FRS 102 second edition) published in 2019 (thè 'SORP") in all material respects. I he Chanty meets the definition of a public b6nefit entity under FRS 102. (b) Ba818 of pr•paratlon The financial stat8m8nts have been prepared on a going concem basis under the historical cost convention. as modified by the revaluation of inveslm8nts and investment properties, on a basi5 con8lSt8nt with previous years. The functional currency of the group is considered to b8 Pounds sterling because that is th8 currency of tha primary economic environment in which the Charity operates. The Charity commenced activities from 111 April 2016. The Charity has taken advantage of the exemption conferred by Section 408 Companies Act 2006 and has not presented a separate charlly statement of financial activity. (c) 8a8lc of con8olldatlon Consolidated financial statements have been prepared on a line by line basis. and unifomi accountlng policies have been used. (d) Golng concorn The Trustees heve essessed wheth8r the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of thes8 financial statements. The Trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concem. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due. Page 38 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (e) Incoming resources Revenue is recognised when the significant risks and rewards of ownership have b88n transfèrred. the amount of revenue can be measured reliably. it is probable that future 8conomic benefits will flow to the group and when the specific criteria relating to certain of the group's revenue channels have been mat, as described below: Monetary donations are brought into account when received. Legacies are recognised where there has been a grant of probate, the executors have identified Ihal th8r8 ar8 sufficient assets in the e51ate after selllement of liabilities to pay the legacy and any conditions attached to the legacy are either in control of the group or have been met. Legaciès subject to the int8rast of a life tenant are not recognised during the lifetime of the lrfe t8nanl. Dividends are reinvested in the CAIF on th8 date that they are declared. Rental incom8 is recognised on an accruals basis, with rent free periods spread over the period of the lease to the next break clause. If) R080urce8 exp•nded Llabilities are racognlsed as expenditu￿ as soon as there Is a legal or constructive obligation committing the group to that expenditure, it is probable that settlement will be required and the amount of any obligation can b8 measured reliably. All resourc85 expended are recognised on an accruals basis, with the exception of grants as noted below. Expenditure on generating funds includes costs of fundraising and maintenance of festival and donor records, together with the management of the inv8Stment and property portfolios. These costs include the allocation of support costs r8lating to these actimties. Charitable activities are split between masonic activities and grants awarded to external institutions Id85ignated as "non-masonic" within the SOFA). Masonic activities include the payment of grants directly to beneficiarie5 together with related welfare and support costs. Non-masonic activities consist of th8 payment of grants to extemal institutions. Support costs are allocated to these activities on the bases laid out in note 7. Grants are recognis8d as expenditure in the year In whlch the grant is fomially approved by the Charlty and has been communicated in writing to the recipient, except to the extent that it is subject to conditions that enable the group to revoke the award. The provision for multi-year grants is recogniseé at ils present value when settlement is due over more than one year from the dale of the award. there are no unfulfilled p6rfomance conditions under the control of the group that would permit it to avoid making futurè payments. settlement is probable and the effecl of discounting is material. The discounl rate used is the long-term return of inflation plus 4 percent used as the target for the group's investment portfolio. Page 39 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (g) Employees All staff are employed by the Charily and recharged to subsidiary charities based upon the relalive number of grants processed by those charities. (h) Fund accountlng Restricted funds are subject to SP8¢ific conditions imposed by the donors andlor for the purpos8s for vthich they are raised. The aim of each material restricted fund is set out in not8 18. Unrestricted funds may be utilis8d for any purpose in accordance with the charitable obje¢tiv66 of tha group. (i) Intangible fix•d a8S•ts Intangible fixed assets. consisting of computer software, held by the group are stated at cost less accumulat8d d8pr8ciation and any accumulated impairment losses. Cost includes the original purchase price and costs directly allrlbulable to bringing the asset to its working condition for its intended use. Intangible fixed assets are subject to review for impairment when th8r8 is an indication of a reduction in their carrying valu8. They are reviewed annually and any impairment is recognised in the year in which it occurs. The threshold for ¢8pitslis8tion 18 £10,000 and depreciation is calculated using the slraighl-line method to allocate the cost of each asset18SS its residual value over ils useful lrfe, estimated at 4 y8ars. Assets in the course of construction are not deprecia18d untsl available for use. (J.) Tanglble flxed assets Tangible fixed assets, excluding land and investment properties, held by the group ere stat8d at cost less aGcumulated depreciation and any accumulated impaimient losses. Land is stated at cosl less any accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset lo ils working condition for its Intended use. Fixed assets are subject to review for impairment when there is an indication of a reduction in their carrying value. They are reviewed annually and any impairment is recognised in the year in which it occurs. Assets in the cours& of construction are stated at cost and not depreciated until available for use. The threshold for capitalisation is £10,000. In line with the revised FRS102, depreciation for freehold and leasehold properties (with a lease life of more than 50 years) have been provided on a straight line basis at rates between 2% to 10%, depending on its useful economic life of Ihe cornponenl parts of properties. Depreciation is calculated on other assets using the slraight-line method to allocate the cost of each asset less its residual value over its eslimaled useful life. as follows.. ear 10 Short leasahold improvements and fumiture Motor vehicles. computers and equipment Page 40 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (kl Investment properties Investment properties are measured at fair value by third party professional valuers on an annual basis using RICS Red Book valuation rules. Gains or Ioss8s ara re¢ognised wthin the Statement of Financial Acliwties. No depreciation is provided on investment properties. They are reviewed annually and any impairment is recognised in the year in which it occurs. (l) Social Investment Property- Royal Masonic School This social investment property has b88n valued through the discounting of expected future leas8 payments using a yleld of 5.5% as the cost of capital, less the residual value of the provision for backlog repairs. This provision is being released back to the endowment fund in line with the works being completed and charged to the unr8slricted general reserve. The provision for backlog repalrs is reviewed on an annual basis. and adjusted as required in accordanc8 Wlth the evolving cost for the planned work5. Galn5 or losses are recognised within the Statement of Financial Activities. No depreclellon is provlded on social investment properties. (ml Investrnonts Investments are recognised initially at fair v8lue which is normally the transaction pric8 8xcluding transaction costs. Subsequently, they are staled at market value. All realised and unrealised gains and losses are recognised withln the Statement of Financial Activities. Investments, which the group holds for resale or pending their sale and cash or cash equlvalents with a maturity date of less than one year, which are held for investment purposes, are disclosed as current asset investments. (n) Flnanclal a88•t8 and Ilabllltlos The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. Financial assets and liabilitles are recognised when the Group becomes a parly lo the contractual prowsions of the Instrument. Financial assets and liabilities which qualify as basic financial instruments are Inltlally recognlsed at the s8ttlam8nt amount after any trade discounts. They ar8 subsequently valued at arnort15ed cost and assessed for impaimienl at the end of each reporting period. Where settlement is not expectèd withln 12 months of Ihe balance sheet date. then the asset or liability is discountad uslng the long tem return of inflation plus 4 percent used as the target for the group's investment portfolio. Basic financial instruments include debtors, cash and Greditors within the balance sheet. (o) Provislons Provisions are rècognlsed when the group has a present legal or construdive obligation as a result of past events, il is probable thal an oufflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions a￿ discounted to present value where the effect is material. Pag6 41 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (p> Contlngencles Contingent liabilities are potential future cash oufflows, where the likelihood of payment is considered mor8 than remote, but is not considered probable or cannot be measured reliably. These are nol recognised but are disclosed in the notes to the financial statements. Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of benefits Is considered probable. {q) Foreign curroncl•8 Transactions denominated in foreign currencies are translated into Pounds Sterling at the exchange rates ruling at the dale of transaction. Monelary assets and liabilities d6nominaled in foreign curren¢les are translated into Pounds Steding at thè rate ruling at the balance sheet date. All foreign exchange gains and losses, realised and unrealised, are r8cognised in the Statement of Financial Activilles. Ir) Taxatlon The group is 8X8mpt from taxation on its income and gains falling within Part 11 of the Corporation Tax Act 2010 or 6ection 256 of the Taxation of Chargeable Gains Acl 1992 to the extent that they are applied lo ils charitable activities. The group Is unable to recover Valued Added Tax (VAT) incurred on expenditure except on property related cosls where an option to tax has been taken and the developmenl of new investment prop8rt18s. The amount of VAT that cannot be recovered is inGluéed within the underlying cost to which it relates. {s) Penslon costo Defined contribution pension plans are accounted for in th8 year Sn whlch the contrlbutions ar8 payable. Differences arising be￿en contributions payable and amounts actually paid are shown as either accruals or prepayments in the Balance Sheet. Multi-employer defined benefit pension plans are accounted for on the same basis as defined ontribution plans. Where there is an agreement in place to fund a pasl service deficit, full provision is made for the total d8ficit contributions payabl8. Other defined benefit pension plans are accounted for based on actuarial estimations of scheme liabilities and the fair value of scheme assets. Actuarial valuations are obtained at least triennially and are updated at each balance sheet dale. The resulting defined benefit assel or liability IS S8parately disclosed on the Balance Sheet. Net interest costs arising on the assets and liabilities are in¢lud8d as part of charitsble adiviti8s. Actuarial gains and losses arising are includ8d under other recognis8d gains and losses. Page 42 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 DONATIONS AND LEGACIES Unrestricted Restricted Endowment funds funds funds 2024 2024 2024 £'ooo £'ooo £'ooo Total Funds 2024 £'ooo Total Funds 2023 £'ooo Festivals Other donations Legacies 10,926 374 3,069 10,927 3,560 4,419 10.192 4.666 5.567 3,186 1,350 14,369 18,906 20,425 CHARITABLE ACTIVITES Unrestricted R8Stricted Endowmenl funés funds funds 2024 2024 2024 £'ooo £'ooo £'ooo Total Funds 2024 £'ooo Total Funds 2023 £'ooo Residents. Fees Receivable Other charitable income 52,600 89 52,600 89 46,979 113 INVESTMENT INCOME Unreslricted Reslrfcted Endowment funds funds fund8 2024 2024 2024 £'ooo £'ooo £'ooo Total Funds 2024 £'ooo Total Funds 2023 £'ooo Interest on bank deposits Income from investment portfolios Rental income Interest income from pension scheme assets 162 1,232 1,394 459 2,175 4,426 2,013 82 6,682 2,013 5,619 1,812 817 817 587 2.337 8,488 82 10,907 8.477 Page 43 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 INVESTMENT MANAGEMENT COSTS Unreslrictsd Restricted Endowment funds funds funds 2024 2024 2024 £'ooo £'ooo £'ooo Total Total Funds Funds 2024 2023 £'ooo £'ooo Investment fund management Property manag8m8nt Support costs 616 264 86 18 1,115 1,189 568 791 121 136 304 35 820 966 18 1804 2.116 CHARITABLE ACTIVITIES Unreslric18d Re8tricted Endowment funds funds funds 2024 2024 £'ooo £'ooo Total Total Funds Funds 2024 2023 £'ooo £'ooo £'ooo Masonlc Care and welfare support Poverty reliaf Sickness and illness Total Grants Support Costs 68 5,136 4,224 4.292 3,970 5.136 4,602 4.252 2 575 13,680 11,147 5,440 5,124 5,204 1,826 8.476 3.814 6.830 12,290 19,120 16,271 Non-masonlc Air Ambulance and Rescue Services Armed Forces Arts, Culture & Sport Covid-19 Emergency Grants Dlsaster Relief Early Interv8ntions - Children & Families Education and Employability Environment, Conservation and Heritage Festival Grants Freemasons Community Fund Health and Dis8bility Hospices Isolation in Later Lif8 Medical & Social Research Programme Other Charitable Purposes Royal Masonic School Total Grants Support Costs 1,949 66 79 1.949 66 79 423 (20) 132 1,353 3,358 2,991 621 413 80 52 3,358 621 22 22 95 47 90 176 1.969 1,672 936 817 1,176 963 123 364 832 1,054 5.100 2,656 16,458 13,055 584 462 1,969 936 1.176 123 489 5,100 14.769 381 343 1.689 203 15,150 17.042 13,517 Page 44 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 6. CHARITABLE ACTIVITIES (Contlnuèd) Ma50niG 5UPPOrt of £13,680k consisted of 4,576 grants made to 3.036 individual benefiGiaries. 339 grants were made directly from the Charity to charitable institutions: these grants are detailed in www.mcf.or .uklfinancial-re The figures above include a sum of £5,416k for donations made to charitable inslitutions directly by Ihe Masonic community through Ihe Relief Chest Scheme. Non- Cost of Investment Masonic Masonic Total Generating Management 2024 Fund8 £000 7. SUPPORT COSTS Basis for Allocallon £'ooo £'ooo £'ooo £'ooo Relief Chest- Fundraising Fundraising Legacies M8sonb Support - Grants mason￿ Support - Ad¥￿e & Support mason￿ Support . Provincial & Volunteers Rellef Che81- Charltable Community Support & Research Slraleglc Devalopmenl & Speclal Projects Execullve Finance Infomalion Tochnology Human Resources Communicallon8 Governance Facilities & Admini81rallon Adminislralion and Support Fa¢ililies & Admin - Ruspini House Olhor 269 305 289 305 90 911 980 (a) (a) (a) (a) (a) 911 980 235 184 235 199 288 (a) (a) (a) 15 167 401 286 452 184 549 182 366 324 70 169 13 180 541 516 488 177 592 196 395 350 78 179 Ibl (cl (cl Ibl Ibl Ibl Ibl {bl Ibl {bl 108 52 155 23 13 43 14 26 {21 1341 46 822 121 5.440 584 6,967 Ba¥1¥ for allocalDn lal Directly allribuled Ibl Number of grants proce55ed Ic l Headcounl and number of grants processed Page 45 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Non- Cost of Investment Masonic Masonic Total Generating Management 2023 Funds £'cKJo 7. SUPPORT COST8: 2023 Basis for Allocation £'o £'ooo £'ooo £￿00 Relief chest- Fundraising Fundraising LegacSes MasonSc Support- Grants Masonic Support- Advice & Support Masonic Support - Provincial & Volunteers Relief Chest- Charltable Communily Support & Research Strategic Development & Special Prolecls Executiv8 Flnance Information Technology Human Resources Communication8 Governance Facilitie8 & Administration Administration and Support Facilities & Admin- Ruspinl House Other 282 282 268 92 855 (a) (a) (a) {a) {a) 92 855 889 294 143 lal 181 lal 12 287 155 287 116 374 257 438 216 607 178 523 124 501 Ibl Icl Icl (b) (b) (b) Ib) Ibl Ib) Ibl 100 46 27 19 32 16 138 468 232 651 189 581 326 10 (571 11351 13 38 22 121 175) 787 136 482 6 609 Ba818 for allocallon 181 Directly attributed Ibl Number of granls proce88ed (cl Head¢ount and number of grants proce88ed NET INCOMEI(EXPENDITURE) WAS AFTER CHARGING 2024 £'ooo 2023 £'ooo Deprecialion Auditors remuneration 4.650 129 3.662 149 Page 46 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 STAFF COSTS 2024 £'ooo 2023 £'ooo Wages and salaries Social security costs Pension contributions Employee benefits Redundancy 36,301 3,053 1.130 226 38 33,164 2,859 1,053 176 40,748 37.258 AVERAGE NUMBER OF STAFF 2024 2023 Generating funds Grant making activities Care home operations 13 81 996 14 78 999 1,090 1,091 STAFF EARNING MORE THAN £60,000 (INC. BENEFITS) 2024 2023 £60,000 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £100.000 £100,001 to £110,000 £110,001 to £120,000 £120.001 to £130,000 £130.001 to £140,000 £140.001 to £150,000 £150.000 to £160,000 £160,001 to £170,000 £170,001 to £180,000 £180,001 to £190,000 £190.001 to £200,000 20 14 19 Total 51 Members of the MCF and RMBICC Executive and senior le8dership teams received remuneration of £2,009k during the period (2023.. £1,855k). No Trustees. or related persons, received any ￿muneratIon from the Charity during the year (2023.. None). Total travel and subsistence expenses of£26k were paid to 13 Trustees during the year {2023.' £26k paid lo 15 Trustees). Indemnity insuranc8 was provided to Trustees at a cost of £36k12023= £36k). Page 47 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Assats Computer under Software Construction £'ooo £'ooo 10. INTANGIBLE FIXED ASSETS Group and Company Total £'ooo C￿t Balance at 1 April 2023 Additions Transfer of completed projects 277 12 284 87 75 Balance at 31 March 2024 289 82 371 D•pr•clatlon B81ance at 1 April 2023 Charge for th8 y8ar (237) (311 (237) (311 Balance at 31 March 2024 268 268 Net book valu• At 31 March 2024 21 82 103 At 31 March 2023 47 Page 48 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 11. TANGIBLE FIXED ASSETS 11 la) Group Computers, Assets Motor Equipment under Cars & FurnSlure Construction £'ooo £'ooo £fX)O Freefv)Id Leasehold Buildlngs Buildings rooo £'ooo Total £'ooo Co•1 Balan¢e at 1 April 2023 Additions Dl$posal8 109.566 2,188 1.500 12 912 25 (797) 7.438 1,476 11,4581 2.944 122.360 1,002 4,703 0 12.255) Balance at 31 March 2024 140 3946 124808 D•pr•¢latlon Balance a11 Aprll 2023 Charge for the year Dlsposal3 (39,268} 13,6341 (8901 (891 1865) 127) 797 14,5371 18691 1,458 0 145,3581 0 14,6191 2,255 Balance al 31 March 2024 42 900 779 95 N•t b¢)ok valu• Al 31 March 2024 733 45 3 946 77 086 Al 31 March 2023 810 47 Leasehold buildings are all in excess of 50 y8ars wilh the exception of the leasehold improvements held by the Charity as disGIosed in note 11 (bl overleaf. Page 49 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 11 {b) Charlty Leasehold Buildin95 £'ooo Motor Computers, Cars Equipment & £'ooo Furniture £'ooo Total £'ooo Cost Balance at 1 April 2023 Additions 652 242 894 13 Balance at 31 March 2024 663 244 Dopreclatlon Balance 8t 1 Aprll 2023 Charge for the year (401) (66) {181) (361 (5821 (102) Balance at 31 March 2024 467 217 684 Not book valu• At 31 March 2024 27 223 At 31 March 2023 251 312 12. INVESTMENT PROPERTIES March 2024 Group Cornpany £'ooo £'ooo March 2023 Group Company £'ooo £'ooo Balance at 1 Aprll 2023 Additions Transfers from social investments Disposals Change In mark81 value 39,526 615 7,500 41,166 358 <2,023) (1,998) Balance al 31 March 2024 45,618 39,526 Investment properties consist of freehold properties in Great Queen Street and Parker Street, London WC2 and land at Rickmansworth Park Estate and Bushey Grange. During the year, the social investrnent property at Ruspini Hous8 was refurbished to provide six flats for commercial letting and was accordingly reallocated as an investment propety at the yearvend. The properties were valued by Gould and Co as at 3151 March 2024 based on open market value, assuming that the properties would be sold subject to existing tenancies. Due to the long term nature of ownership the exact historical cost of the properties is unknown, however, for the purposes of calculaling the revaluation reserve it has been estimated at £7,321 k. Page 50 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 13. INVESTMENTS March 2024 Group Company £'ooo £'ooo March 2023 Group Company £'ooo £'ooo Flxed Asset Investments.. Managed Funds MCF CAIF CCLA Propety Fund Investment in MCF Trading Limiled Social investments Ruspini House Royal Masonic School Loans to beneficiaries 192,833 664 57,229 184,563 666 44,705 3,500 3.500 4,004 3,621 5,212 199829 60,729 194037 Current Asset Investments - RLAM Cash Reserve funds Cash and cash equivalents 40,431 51 3,143 40,965 63 240311 235 065 MOVEMENTS IN INVESTMENTS a) Ll8t•d and unllst•d Balance al 1 Aprll 2023 Additions Disposals Transfers fromllto) group undertakings Inveslmenl income reinvested Management fees charged to the fund Gainsl{losses} Changes in cash balances held 226,257 21,701 (43,3031 48,205 7,750 247,432 22,009 (38,640) 44,348 4,900 6,687 19371 23,585 (121 1,397 {246> 6,766 5,589 1994) 19,197) 58 1,075 {2041 (1,9141 Balance al 31 March 2024 233,978 63,872 226,257 48,205 b) Social Balance al 1 April 2023 Additions New loans issued Loans repaid Transfer to investment properties Revaluation 8,807 2,812 7,968 404 74 (107) (63) (7.5001 2,277 469 Balance al 31 March 2024 Page 51 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 13. INVESTMENTS {Contlnuad) The social investments consist of the property, which forms the Royal Masonic School in Rickmansworth and loans made to beneficiaries to effect urgenl property renovations to accommodate medical conditions. RMBI Trading Limited. Stability Investments Limited, RMBI (Settlement) Llmltad and 19121 GQS Limited are wholly owned subsidianes of RMBCCI, a subsidiary of the MCF. Their results are consolidated in these accounts. At 3151 March 2024 thelr net asséts stood at -£699,000, -£360, £7,000, and £4 respectively (2023: -£696,OOOk, -£360, -£8,000 and £4). The companies, principal activities are the design, build and alteration of RMBICC properties end management and residential billings. MCF Trading Limited is a wholly owned subsidiary of the Charity for which the Charity issued 3.500,000 shares of £1 in 2022. The company's principle activity is the development of the group's land assets. RECONCILIATION TO SOFA Merch 2024 Group Company £'ooo £'ooo March 2023 Group Company £'ooo Gainslllosses) on listed inv8slmenls Chang8 in market value of investment properties 23,585 6,766 {9,1971 (1,914> 254 {1,5291 23.839 6,766 14. DEBTORS March 2024 Group Company £'ooo £'ooo March 2023 Group Company £'ooo £'ooo Trade debtors Amounts owed by group undertakings Prepayments and accrued income Other debtors 3,951 3,890 1.902 339 226 1,781 364 398 4,355 2,034 4.461 3,554 2.467 11,905 2,543 oth8r debtors includes a loan of £364k du8 from the Royal Masonic School for its share of the buy-ou of the pension liability. The loan is being paid off in monthly instalments including interest, which for thts year to March 2024 totalled £166,191 (March 2023: £157,050). The loan has been discounted to a net present value of £333k for inclusion in the accounts. Page 52 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 15. CREDITORS March 2024 Group Company £'ooo £'ooo March 2023 Group Company £'ooo £'ooo Falllng due wlthln one yoar Grants payable Bank loans and overdr8fts Trade creditors Amounts owed to group und8rtakings AGcruals and deferred income Taxation and social security other creditors 8.467 193 2.518 2,835 7,862 193 1,912 2,921 348 33 178 111 48 95 49 244 107 47 3.210 701 1,569 2,851 653 1,459 16,658 3,553 14,930 3.463 Falllng due after morn than on8 year Grants payable Retail Charity Bond Bank loans 1,612 10,000 94 515 1,664 10,000 288 500 11.706 515 500 The RMIG Endowment Trust took out a new bank loan on P April 2021 for an amount of £835,817. It is repayable in 52 monthly instalments ending 1 Oih August 2025. Intaresl is chargeable at a fixed rate of 3.31%. For the purpose of rnodernisation of its property portfolio, RMBICC raised £10 M in March 2023 through the issue of a £20 M sustainable bond by Retail Charity Bonds plc. {'RCB'). £10 M of the bond was sold lo inslitutional and retail investors and the proceeds loaned to tho RMBICC under the lemis of 8 loan agreement with RCB. The ramaining £10 M was retained by RCB and may be sold at th8 request of the RMBICC at a future date, with the proceeds of any such sale advanced to RMBICC as a further advan￿ under the loan agreement. The inlerest rate on the bonds, and correspondingly Ihe interest rate on the loan, is a fixed rat8 of 6.25% per annum, payable six-monthly in arrears on Ph March and 7th September until the maturily dat8 of 7th March 2029. 16. PENSION SCHEMES ASSETI(LIABILITY) PROVISIONS FOR PENSIONS March 2024 Group Company £'ooo £'ooo March 2023 Group Company £'ooo £'ooo RM81 Pension Schemes 2.688 2,823 Page 53 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 16. PROVISIONS FOR PENSIONS (Continued) There were three defined benefit schemes operated by subsidiaries of the Charity. These were as follows= 8> TGC Grand Lodge Pension Scheme was a multi-employer definèd benefrt pension scheme which was in deficit and to which the participating employers were making fixed contributions to fund the shortfall. The Section 75 liability was bought out on 23° July 2018. b) RMTGB Pension Scheme was a closed defined benefit scheme and a buy-inlbuy-out agreement has been en18red into with a third party pension provider whereby the latter has assumed full liabllity for the scheme. including all future pension payments. c) RMBI Pension Scheme is a defined benefit scheme closed to new entrants and to future accrual. The provision represents the excess of the present value of defined benefit obligations over the market value of the scheme assets. In addition, the Charity wn8 a d8fin8d contribution scheme with Royal London. RMTGB Pension Scheme A subsidiary charity, the Royal MasonicTrustfor GSrls and Boys I'RMTGB") operated a defined benefit pension scheme, tha RMTGB Staff Pension Scheme {the"Scheme"}.11 entered into a'buy-inlbuy-out. arrangement with Pension Insuran￿ Corporation I'PIC.) whereby the latter has assumed Ihe liabilili8S of th8 Sch8me and undertaken to make all future payments due under the scheme. Due diligence on the tr8nsaclion was completed by Septemb8r 2017 at which tirne the final instslment was paid to PIC on the formal transfer of the Scheme. There were two participating ernployers: the RMTGB (Ihe 'Sponsoring employerf and the Royal Masonic School for Girls Limited (the °School'). Th8 RMTGB has entered into an arrangemenl with Ihe School where by the School will repay to the Charily, the School's 24QA of the Scheme's wind up and closure costs. The period of the loan is for len years. Interest is charged at the 8ank of England, base rate. The School is currently repaying off the loan in monthly instalments of £12k per month. Mov8ments on the liabilities on the scheme in the y8ar are detailed as follows.. 2024 £'ooo 1508) 1221 2023 £'ooo 16521 {131 157 Balance 8t 1 April 2023 Interest charged Less payments made on account by RMS in 2023124 £364 £508 The amount recoverable from the school is included within other debtors (note 14). Page 54 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 16. PROVISIONS FOR PENSIONS (Contlnuad) MBI Pension Schemes The RMBI operates two pension schemes. One of these peng￿n schemes is 8 defined contribution scheme. The other 15 a defined benefits pension scheme, whlch was closed lo new enlranls on 4th September 1996. The ¢Jefined benefits scheme was also c103ed for the existing employees in September 2010. l. Defined conlrlbulion The RMBI operates a defined contrlbutlon pension scheme. During the year the charity made payments totalling £813k {2023'. £750kl. 11. Defined benefit The RM81 Penslon and Life Assurance Fund I'the Fund") is a funded dèfin8d benefit arrangement which provides retirement beneflt8 based on final pensionable salary. The valuation used for FRS102 disclosures h86 been based on a full as5essm8nl of Ihe118bllilies of the Fund. On 30 September 2010 the scheme stopped a¢¢ruing benefits lo Ils mernbers and all the employees at that Ilme were transferred lo the group Pe￿Onal Pension Scheme. Hence, there is no current s&Nice c051 for the defined benefit Scheme and all Contrlbutions in note 9 relate8 to the defined contrlbullon scheme. 111. Principal a¢tU8rl81 assumptions al the balance sheet dale: The r8su118 of the last valuation as al 31 March 2022 have been updated lo 31 March 2024 by a qualrfied Sndependenl actuary. The assumption8 used were as follows,. ial assum tSons: arch 2024 Oi8count rale 4.8¥• 4.8% Rale of Infiation {RPII Rale of Inflation {CPII 3.3% 3.3% 2.8% 2.7% Rale of Increase In pensionable salarie¥ Rale of increas8 in pensions- Post 88 GMP Rale of increase in pengions- Pre 97 XS Rate of irKrease in pensions- Post 97 pension Rale of iruea5e in pensions- Post 05 pensions Revaluation of deferred penslons {non-GMPI 3.3% 3.3% 2.3% 2.3% 0.0% 0.0% 3,2% 3.2Q 2.2% 2.3% 3.30A 3.30 Page 55 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 16. PROVISIONS FOR PENSIONS (Contlnuad) RMBI Pension Schemes Continued March 2024 March 2023 MortalS1 assum ti as per post retiremonl as per post fell￿ment Mortallty befoTr retirement Mortality before and after retirement- S3PMA I S2PMA Morlalily before and after retirement- S3PFA I S2PFA 100% 100% 100% 1LY)% ex ectan ars For an indfvldual aged 65 in 2024 Male8 20.9 21.4 Fem8168 23.4 23.8 At age 85 for an Individual aged 45 In 2024 Males 22.2 22.7 - Females 24.8 25.3 CHANGES IN PRESENT VALUE OF DEFINED BENEFITS OBLIGATION iv. £'ooo £'ooo Balance at 1 April 2023 Past service cost Interest cost Actuarial lossesl(gains) Benefits paid 14.822 18,234 681 (290) (1,267) 480 (2,964) {928) Balance at 31 March 2024 13,946 14,822 CHANGES IN FAIR VALUE OF SCHEME ASSETS £'ooo £'ooo Balance 8t 1 April 2023 Interest incorne Administration expenses Actuarial gainslllosses> Employer contributions Benefits paid 17.645 817 22,193 587 (561) <4,207) (1.267) (928) Balan￿ at 31 March 2024 16,634 Page 56 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 16. PROVISIONS FOR PENSIONS (Contlnued) RMBI Pension Schemes Continued March 2024 March 2023 vi. FAIR VALUE OF ASSETS £'ooo £'ooo Equities Properties Corporate bonds Fixed interest gilts Index linked gilts Liability￿riVen investments Diversified growth and credit fund8 8uy out aware fund5 Cash 16,296 338 17.538 107 Tho roturn on the assot8 wa•: Interest income Return on 8ssets less interest Income 817 {5611 587 (4,207) Total retum on as88ts 256 VII. RECONCILIATION TO THE BALANCE SHEET £'ooo £'ooo Market value of assets Present value of defined benefit obllgation 16,634 (13,946) 17,645 (14,822) Net suTplu51(deficil) 2.823 vlli. RECOGNITION IN SOFA £'ooo £'ooo Re8ource8 exponded Past Service cost Administration costs Interest on obligation Interest retum on fund assets 681 {8171 480 (587) 136 107 other re¢ogni8gd gainslllosses) Actuarial gainsl{losses) in the defined benefit obligation Retum on assets less interest incom8 290 (561) 2,964 (4,2071 271 Page 57 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 17. MOVEMENT IN FUNDS Balance at Income Expenditur8 1 April 2023 £'ooo Gainsl Transfers Balanc8 at (losses) 31 March 2024 £'ooo £'ooo £'ooo £'ooo £'ooo Endowm•nt fund• RMIG Endowment Trust Royal Masonic Benevolent Institution Care Company 11.283 82 118) 2.064 (2,700) 10,711 81 81 11,364 82 18 2,084 Rostrlctod funds Relief Chest Royal Masonic Trust for Girls and Boys Rusplni RMIG Endowment Trust Compass Housing Masonic Samaritan Fund Royal Masonic Hospital Royal Masonic Benevolent Institution Car8 Company Victor Donaldson Specific gifts, donations and legacies for homes Prince Edward Duke of Kent Court, Essex L H Miles Frederick Philips Fund Intragroup (incomeyexpenditure other 21,313 15,245 {16,743) 19,815 144,815 1,234 3.599 104 16.489 5,043 32 1,048 {11,168) 11,098 114) 163 {5,572) {7) (13,132) 149,788 1,415 1,775 102 4,528 13 2,700 1.084 49 47 40 (40) 102,471 61,324 2,585 79 (64,340} (7> 994 100,449 2,657 388 20 (125) 283 325 563 1,014 23 {47) (4) (5) 301 559 1,171 27 135 0 (18,249) 149 18,249 157 295,053 65,736 92,913 12,437 2,700 283,013 Unrestrlcted fund8 General reserves Designated reserves 79,334 19,902 714 (10.3301 9,095 284 (284) 98.285 430 80,048 19,902 10,330 9.095 98,715 Total funds 386,465 85.720 103,261 23.596 392,520 The Transferred Beneficiaries Fund was created as a restricted fund in the TGC following the transfer of unrestricted funds from the RMBI in 2002. Following the return of the fund on 1 $1 November 2017, it has been dereslricted to bring il bad( lo its original form held in the RMBI. The Trustees have designat8d £0.43 M to b8 held for the future expected commilment to beneficiaries. Page 58 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 17. MOVEMENT IN FUNDS (Continued) Intragroup (incomeyexpenditure includes festival Income collected through the Relief Chest {£11.33 M) and the support grant made to the RMBICC from the MSF (£6.92 M). MOVEMENT IN FUNDS Prior Yoar Balance at Income Expendilure 1 April 2022 £'ooo Gain81 Transfers Balance at (losses) 31 March 2023 £'ooo £'ooo £'ooo £'ooo £'ooo Endowment funds RMIG Endowment Trust Royal Masonic Benevolant Institution Car8 Company 10,529 141 (29) 342 300 11,283 81 81 10,610 141 342 300 11,364 Re8trlctod funds Relief Chest Royal Masonic Trust for Girls and 8oys Rusplni RMIG Endowment Trust Compass Housing Masonic Samaritan Fund Royal Masonic Hospital Royal Masonic Benevolent Institution Care Company Victor Donaldson Specific gifts, donations and legacies for homes Prince Edward Duke of Kent Court, Essex L H Miles Frederick Philips Fund Intragroup (incomeyexpenditure Other 22,787 13,926 (15,400) 21,313 158,486 1,291 4,848 96 26,736 3,889 30 1.925 15 1.030 109 (10.700) (8,860) 125) (621 {2.872) (7) (11,238) (1471 144,815 1,234 3,599 104 16,489 1300) 108 1108) 113,460 55,210 2,588 (64,304) (2.175) (6) 280 102,471 2,585 770 58 1160) {2801 388 325 563 1.041 325 563 1,014 24 (s} (46) 0 (18,601) 111 41 18,601 (31 86,119 149 333,103 57.659 300 295 053 Unre8trlcted fund8 General reserves Designated reserves 71.613 21,455 903 {10,938) (2,985) 189 (189) 79,334 714 72,516 21,455 10,938 2,985 80,048 Total funds 416.229 79,255 97,086 11,933 386,465 Page 59 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 18. RESTRICTED FUNDS Fund Nam• Relief Chest Scherne Pur oso of Fund To maintain Relief Chests to recognised masonic organisations. which are used to generate funds for all tyP8S of charitsble oses Relief of poverty for nam8d fomer beneficiaries of the Royal Masonlc Benevolent Institution Relief of poverty and advancement of education Transf8rred Beneficiaries Fund Royal Masonic Trust for Girls and Bo Ruspini Reliel of need, hardship and distress of the children of freemasons Support for the Royal Masonic School and masonic pupils al the School To advance health and r81ieve those in need by reason of ill- h8allh or disabilily through the provision of medical assistance, support, trèatment, care and advice. Commissioning of research that Is anticipated to offer benefits to beneficiaries Relief of poverty amongst freemasons and their dependants who are sick or infim. All income is transferred to the Masonic Samaritan Fund lo further this ur ose Rcl cf of ncedi ￿UffCrlng and di:Iress +lrougl provision of accommodation in residential care facilit18s or sheltered accommodation To advance secured108ns to b8n8ficiaries to enhance Ihelr ualit of life For the specific use of care homes towards costs of improving facilities for the benafil of residents To 8551st dependants of needy freemason8 towards education costs Donation by Mark Master Masons for the development of Ihe Thomas Were Howard House Grou To provide financial relief for Ess8x masons in Prince Edward Duke of Kent Court Various funds consisling of amounts under £50k for varying oses Royal Masonic Institution for Girls Endowment Trust Masonic Samaritan Fund Royal Masonic Hospital Royal Masonic Boncvolcnt Institution ViGtor Donaldson Fund Sp8cific gifts, donations and acies for homes Hutchinson Prince Edward Duke of Kent Court Essex L H Miles Other Page 60 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS FOR THE GROUP ASSETS AND LIABILITIES 31 March 2024 Fixed Investment Investments Current Assets Properties Assets £'ooo £'ooo £'ooo Liabilit18S Fund Total £'ooo £'ooo £'ooo Endowment funds 8.709 2,083 10,792 Restrlcted funds 76,863 42,607 111.087 73.905 (21,449) 283,013 Unrestrlcted funds General reserves Designated reserves 326 3.011 80,033 19.142 430 14.227) 98,285 430 326 3,011 80 033 19 572 4.227 98,715 Total fundg 77,189 45,618 199,829 95,560 25,676 392,520 ASSETS AND LIABILITIES 31 March 2023 Fixed Investment Investments Current Liabilitles Asset8 Properties Assets £'ooo £'ooo £'ooo Fund Total £'ooo £'ooo £'ooo Endowmont fund8 9.282 2,082 11.364 Restrlcted funds 76.690 36,512 117,524 84,188 (19,861) 295,053 Unrnstrlctad fund8 General reserves Designated reserves 359 3,014 67.231 12,928 714 (4.1981 79,334 714 359 3,014 Total fund8 194 037 99 912 386 465 Page 61 of 66 too |lil-akL, r£ Li O c) o ttiio MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 21. STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2023 (Including an Income and Expenditure Account) Not8 Unrestricted funds 2023 £'ooo Restricted Endowment funds funds 2023 2023 £'ooo £'ooo Total Funds 2023 INCOME Donations and legacies Annual contributions from Lodges Charitable actiwties Investment income Transfer in of RMIGET net assets Other income 16,451 3,232 3,974 20,425 3,232 47,092 8,477 47,092 6,573 1,763 141 20 29 Total income 21,455 57.659 141 EXPENDITURE Cost of generating funds Investment manag8m8nt cost8 (757) (670) 130) {1,417) {7871 (2,116) {29) 29 Charltabl• actlvltle8 Masonic grants Non-Masoni¢ granls Residential and care homes {6.149) (3,362> (10,1221 (10,155) (64,395} (16.271) (13.517) (64.3951 94,183 Total •xpendlture Net gainsl(lossesl on inveslments Net In¢om•l(•xpondltur•) Transfers belween funds 86,119 29 97,086 2,985 8,083 342 10,726 7,532 {36.543) (300) 454 128,557) 300 OTHER RECOGNISED GAINSI(LOSSES) Actuarial gainslllossesl on pension scheme Pension Llabillty Buy out (1,243) 36 {1.243) 36 NET MOVEMENT IN FUNDS 38,050 754 29.764 Total funds brought fofward 72,516 333.103 10.610 416,229 Total funds carrled forward 295 053 386 465 Page 64 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 22. RELATED PARTY TRANSACTIONS 8} The Charity has paid out grants on behalf of the Royal Masonic Trust for Girts and Boys, The Grand Charity and the Masonic Samaritan Fund during the year, and has been reimbursed by these charities. Additionally, the Charity has borne all the administrative costs of supporting the above subsidiary charities. The Charity has recharged a proportion ofthese costs to its subsidiary charities bas8d upon the r81ative number of grants processed. b> RMBI Pension Trust Llmlted RMBI Pension Trust Lifflited is the sole trustee ofthe RMBI Pension Scheme, the d8fin8d benefit scheme of RMBICC. RMBICC pays pensions on behalf of the RMBI Pension scheme. The tot81 amount payable to the RMBICC, by the Pension (Scheme). as a131 March 2024 was £ Nil (2023: £ Nil). cl United Grand Lod eofEn land As laid out in the Tnjstees report on page 7, the appointment of Trustees is approved by the Grand Master on the recommendation of the Grand Master's Council. The United Grand Lodge of England (UGLE) co-ordinates the collection of the annual contribution made by its members for supporting the Charity. UGLE prowdes part of the lower ground floor of Freemasons, Hall to the Charily to accommodate ils staff and operations. The18ase is rent fr88 but allows for th8 r8covery of an appropriate proportion of costs through a service charge. 23. CAPITAL COMMITMENTS March 2024 Group Company £'ooo £'ooo March 2023 Group Company £'ooo £'ooo Construction and r8furbishm8nt of ¢8re homes: contracted for authorised but not contracted for 1.038 257 852 1,295 852 Page 65 of 66 MASONIC CHARITABLE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ANALYSIS OF CHANGES IN CASH AND CASH 24. EQUIVALENTS LESS DEBT Al 1 April 2023 £'ooo Cash Flow Non-cash At 31 Mar¢h Changes 2024 £'ooo £'ooo £'ooo Cash and cash equlvalents Short term deposits Cash at bank and in hand 29,107 17,872 {249) (1,992) 28,858 15,880 46,979 2,241 44,738 Borrowlngs Bank loans due within one year Bank loans due after one year (193) 10,288 10,481 194 (1941 194 (193) 10,094 10.287 194 Total ca8h and cash equlvalonts less debt 36,498 2.047 34,451 25. LIABILITY OF MEMBERS The Charity is constituted as a company Ilmlted by guarantee. In the evenl of the Charity being wound up each of the members would be required to conlribute an amount not exceeding £1. Page 66 of 66