OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2025-09-30-accounts

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

A Charitable Incorporated Organisation (CIO)

Charity Number 1166697

Report of the Trustees and Audited Accounts

Year ended 30 September 2025

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation

Contents Page
Charity Information 1
Trustees' Report 2 to 13
Auditor's Report 14 to 16
Statement of Financial Activities 17
Balance Sheet 18
Cash Flow Statement 19
Notes to the Accounts 20 to 29

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Charity Information

Charity number

1166697

Trustees

G E Gordon OBE - Chair B Gordon L Blythe L Gakic K L Oliver (appointed 10 September 2025)

Principal address Fivefields 8-10 Grosvenor Gardens London SW1W 0DH

Registered office

34 Arlington Road London NW1 7HU

Auditors

Xeinadin Audit Limited Chartered Accountants 5 Technology Park Colindeep Lane Colindale London United Kingdom NW9 6BX

Accountants

Winston Hazelton & Co Ltd Chartered Certified Accountants 34 Arlington Road London NW1 7HU

Bankers

Barclays 1 Churchill Place London E14 5HP

Solicitors

Bates Wells 10 Queen Street Place London EC4R 1BE

Investment management

W1M Wealth 16 Babmaes Street St. James's London SW1Y 6AH

Website https://ethosfoundation.org.uk

1

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

The trustees present their report and accounts for The Ethos Foundation (the "Foundation") for the year ended 30 September 2025

This document includes commentary on the financial and strategic position of the Foundation, including its work and achievements during the last financial year.

The trustees have adopted the provisions of the Statement of Recommended Practice (FRS 102 Charities SORP) on "Accounting and Reporting by Charities", effective 1 January 2019, in preparing the annual report and financial statements of the Foundation.

Structure, Governance and Management

Structure and Governance

The Foundation was incorporated on 22 April 2016 as a Charitable Incorporated Organisation (CIO) with the Charity Commission in England. The Charity registration number is 1166697, the CIO number is CE006474, and it is governed by its constitution, also dated 22 April 2016.

The registered office is situated at 34 Arlington Road, NW1 7HU.

The trustees, who are also the members of the Foundation, have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

The number of trustees shall not be less than three, and there is no maximum number. Trustees must include at least one Independent Trustee, who must not be a member of the Founder Members’ family or a connected person.

The first trustees are the Founder Members; Grant Gordon OBE and Brigitte Gordon. Lucy Blythe was appointed as an Independent Trustee in 2016. Luka Gakic, the Founder Members' son-in-law, was appointed to the Board of Trustees in 2021 and chairs the Foundation's Investment Committee. Katie Oliver was appointed as an Independent Trustee in September 2025.

All trustees give their time freely, and no trustee receives remuneration, aside from reimbursement of reasonable expenses associated with their role. Details of trustee expenses are disclosed in Note 6 to the accounts.

The Foundation has implemented policies and procedures for the induction and training of both new and existing trustees. These are now formalised within the Foundation’s people policies.

Governance and operating principles

Trustees have continued to reflect broadly on the goals of the Foundation and how best to focus efforts to fulfil the Foundation’s founding vision of a society where individuals and communities thrive.

Key management personnel

The trustees appointed their first member of staff - a Foundation Director, Sarah Blackwood - in the previous financial year (June 2024). In January 2025, a Finance and Operations Manager, Saada Ibrahim, was appointed. These two roles make up the total Foundation staff team of paid permanent employees. Both post-holders work part-time. Whilst the Foundation retains flexibility to increase the working patterns of the existing roles, there are no current plans to recruit for additional roles.

2

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Structure, Governance and Management, cont.

Key management personnel, cont.

Responsibility for designing and delivering the Foundation’s strategy, partnership development, and dayto-day operations is delegated to the staff team, with appropriate oversight from Trustees.

In terms of employee remuneration, staff salaries are reviewed annually as part of the budget-setting process, with consideration to individual performance (formalised through annual appraisals), market benchmark data (Association for Charitable Foundations annual salary benchmarking reports), and inflation (Consumer Price Index).

Strategy: Objectives and Aims

Values

The Foundation’s work continues to be underpinned by a multi-generational family commitment to philanthropy and a set of core, consistent values:

The trustees confirm that they have referred to the information contained in the Charity Commission's general guidance on public benefit when reviewing the Foundation’s aims and objectives and in planning future activities and setting the grant-making policy for the year.

The trustees are satisfied that the objectives of the Foundation are met by supporting organisations aligned with their impact goals that demonstrate good governance and leadership in which the Board has confidence. Grantees are invited to apply once identified through research and knowledge of the ecosystem. The Foundation does not accept unsolicited grant applications or proposals for funding.

Strategic Development

The Foundation was set up in 2016 as a UK-based family foundation with the vision of a society where individuals and communities thrive. In 2022, the Founder Member Grant Gordon OBE donated an endowment to the Foundation to use in pursuit of this vision. The Foundation’s strategy is aligned with the mandate to spend down all the assets within this endowment before 31 December 2035.

During the financial year 2024–2025, the trustees and staff invested time and effort in organisational development to underpin the Foundation’s strategy for the coming ten years of the endowment’s spend down, building on learning from work to date and existing partnerships. The vision, mission and goals are set out below, and looking ahead, the implementation of the updated strategy began at the start of the 2025–2026 financial year.

Vision, Mission and Goals

The Foundation’s vision is a society without child poverty, where all children thrive.

The Foundation’s mission is to improve early childhood outcomes in the UK by uniting diverse coalitions and partners, in the service of parents, communities and society.

3

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Strategy: Objectives and Aims, cont.

Vision, Mission and Goals, cont.

The Foundation’s goals are to put early childhood at the centre of unified:

Alongside spending on early childhood-focused work, the Foundation makes a wide range of smaller family donations to a diverse set of organisations helping individuals and communities thrive.

The trustees confirm that they have referred to the information contained in the Charity Commission's general guidance on public benefit when reviewing the Foundation’s aims and objectives and setting the strategic objectives and grant-making policy for the year.

Principal Activity, Review of Business and Achievements and Performance

Approach

The Foundation is primarily a grant-making charity, operating as a trust-based donor. With its funded partners, it seeks organisations aligned with its vision and mission, supported by good governance and strong leadership. In most partnerships, the Foundation contributes multi-year, unrestricted funding, establishing close working relationships and a collaborative approach directed towards shared impact goals. A smaller proportion of funded partnerships is restricted to specific programmes or projects. Smaller donations are one-off and without conditions.

From time to time, the Foundation has identified new focus areas and will conduct research and due diligence to identify partners best placed to make a difference within a particular area of need. Those identified will be invited to apply for support and partnership. Upon invitation, prospective partners collaborate with staff to prepare proposals for a partnership that are reviewed and agreed upon by trustees.

Trustees and staff regularly assess all large grant applications, with reference to a set of guidelines used as a framework for grant-making decisions.

Achievements and performance

Headline Grant-making

During the Foundation's financial year, donations were made to 31 organisations totalling £2,995,063. These organisations included strategic partners, smaller grants, and memberships of sector networks and associations. In addition, the Foundation committed £170,000 towards the Start Strong programme, which also received contributions from other funders; £85,073 was spent on the programme during the year.

To manage the development of the Foundation’s long-term strategy, maximise the impact of our current grant-making activities, and steward relationships with our portfolio of charity partners, the Foundation incurred a total of £201,954 in support costs during the year (2024: £121,118).

4

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Achievements and performance, cont.

Headline Grant-making, cont.

In addition to support costs, £213,853 (2024: £261,385) was paid in investment management fees to W1M, an independent investment management firm. W1M manage the Foundation’s investments, which totalled £58 million at the end of the financial year, to preserve and increase their value, in accordance with the investment policy detailed in this report.

Charity Partnerships - Funded Strategic Partners

During the year, the Foundation continued to support three strategic partnerships with which it has worked since each of these organisations’ inception:

The Childhood Trust ("the Charity") received £1,100,000 (2024: £803, 000) in unrestricted funding. The Childhood Trust is London’s child poverty charity, dedicated to alleviating the impact of poverty on children and young people living in the UK’s capital. The Charity is guided by the aim that every child in the nation’s capital should have a healthy, happy, and safe childhood so that all children are prepared for life.

The Foundation helped underwrite the Charity's core costs as well as supporting its match funding campaigns with the Big Give which fund the delivery of projects across all London boroughs. Trustees recorded their continued satisfaction with the performance of the Charity against a backdrop of challenging circumstances for children and young people, including persistent high rates of child poverty in London.

The Charity's advocacy work, including the annual London Child Poverty Summit, continued to provide channels for London’s children to have a voice, enabling their experiences and views to raise awareness on the devastating impact of child poverty in the nation’s capital and inform public policy.

For further details visit: https://www.childhoodtrust.org.uk/

Thrive at Five (‘the Charity’) was granted £300,000 (2024: £150,000) by the Foundation as the second instalment of a three-year unrestricted grant agreement. This grant is part of a total commitment of up to £2,000,000 to support Thrive at Five’s organisational development over the 2024–2027 period, in line with their business plan.

The Charity entered its fourth year of operation in its work to support sustainable improvements in school readiness in our nation’s most disadvantaged communities. The overarching vision for Thrive at Five is a society where every child, irrespective of their circumstances and family background, can thrive and achieve their full potential. The Charity is scaling up its work through its backbone organisation pathfinder partnerships with 3 local authorities.

The Stoke-on-Trent partnership, which entered its fourth year, demonstrated measured improvements in school readiness as measured by GLD (EYFS General Level of Development) across the 7 schools in its area of operation. The 2nd pathfinder area in Redcar & Cleveland moved from a discovery phase to implementation, guided by the Thrive at Five’s playbook, while adapting to the needs of the local community. Scoping work continued in other places, including Middlesbrough and Scotland, to extend the Charity’s work in support of disadvantaged communities, continuing to test, learn and define Thrive at Five’s collective impact-based implementation model.

For further details visit https://thriveatfive.org.uk/

5

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Charity Partnerships - Funded Strategic Partners, cont.

The Cabrach Trust ("the Trust") received a total of £791,201 in grants (2024: £1,000,000), including the final tranche of a share of the capital funding to establish the Cabrach Distillery & Heritage Centre in the community. The first stage of this strategic capital project was completed.

The Trust’s vision and long-term ambition is to foster sustainable regeneration within this small rural community in NE Scotland. The Trust’s mission is to provide economic and social development opportunities in the Cabrach: creating employment; attracting new visitors and residents to the depopulated community; and celebrating the area’s cultural history and heritage, as well as promoting nature recovery and preserving the area’s wild landscape.

In terms of charitable activities, during the year the Trust continued to deliver a broad range of activities supporting community engagement and well-being, as well as the sustainability of the local natural & built environment.

For further details, visit: https://cabrachtrust.org/

Charity Partnerships - Other Funded Partnerships

The wider portfolio of the Foundation’s partnerships funded during the year encompassed:

The Centre for Young Lives is an independent think tank dedicated to improving the lives of children, young people and families in the UK, particularly those facing the biggest challenges. This year, the Foundation provided unrestricted funding to support the Centre’s work, including its research and advocacy, which helped to inform HM Government’s Best Start in Life early years strategy.

New Philanthropy Capital (NPC) is a think tank and consultancy working with individuals and organisations to maximise their social impact. The Foundation supported NPC to continue its work to bring philanthropy, business and government together to develop the UK’s Impact Economy.

Start Strong , a start-up initiative to shape communications, understanding and prioritisation of early childhood in the UK. The Foundation was one of five founder funders to support the programme’s development, governance set-up and team recruitment. The Foundation also acts as the programme’s financial host to help incubate the initiative during its development phase.

The Royal Foundation Centre for Early Childhood . The Foundation contributed to the Centre’s work, which encompasses a broad range of activities around early years. This year’s work included the continuation of the Shaping Us campaign, raising awareness of the unique importance of early childhood, and the Future Workforce Summit, bringing UK business leaders together to drive action and investment in the early years.

6

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Charity Partnerships - Other Funded Partnerships, cont.

Learning with Parents . The Foundation provided support for this charity’s Ready Teddy pilot programme, which uses a digital and data platform to engage families whose children are due to enter Reception year in activities that support school readiness and provide an earlier connection to school. The pilot showed success and has attracted additional funding from other parties for development and roll-out.

Dartington Service Design Lab . The Foundation has provided support over two years, to support the adoption and scale of the Common Outcomes for Children framework, hosted by Dartington. The framework provides a common approach, language and ways of measurement amongst stakeholders working with babies, children and young people.

Achieve Good . The Foundation granted support for the Impact Economy Policy Lab on Early Years, a collaborative design process facilitated by Achieve Good, with the Department for Education, philanthropists, social enterprises and charities to co-develop solutions to partner with HM Government to achieve its Best Start in Life mission. The Policy Lab co-developed four ideas that have been taken forward by the Department for Education into policy delivery. This includes a project to support early childhood collective impact backbone organisation models.

ReGenerate . The Foundation is two years into a three-year grant, which supports the Early Childhood Project that explores how businesses can improve early childhood development in a way that helps drive business success. This year, the programme launched a range of ideas on how businesses can support parents as employers, and more broadly have a positive impact on early childhood outcomes.

Early Childhood Funders Collective , hosted by the charitable foundation Collective Futures, is a network that aims to increase coordination and collaboration amongst UK funders focused on early childhood. The Collective’s work includes an annual report providing an overview of funders’ spending and a summary of the research and intelligence gathered by the network, shared as a public good.

Smaller Donations

The Foundation made several smaller donations totalling a further £154,500 in 2025 (2024: £310,000). These donations, which reflect the family’s wider philanthropy, supported a range of charities helping individuals and communities thrive.

Philanthropic Memberships

The Foundation provided total funding of £22,029 during the year to contribute as active members of three philanthropic networks/sector associations: Systems Shift Group; Philanthropy Europe Association (Philea) and the Association of Charitable Foundations (ACF). Through these networks, the Foundation can learn and share experiences to increase the impact of its own activity, as well as contribute to a strong and progressive philanthropic community.

7

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Charities Funded in the Year by the Foundation Strategic Partners (unrestricted funding)

Strategic Partners (unrestricted funding)
arities Funded in the Year by the Foundation
The Childhood Trust
The Cabrach Trust
Thrive at Five
Centre for Young Lives
New Philanthropy Capital
Total Strategic partners (unrestricted funding)
Strategic Partners (restricted project funding)
Centre for Early Childhood - The Royal Foundation
Ready Teddy - Learning with Parents
Common Outcomes for Children - Dartington Service Design Lab
Impact Economy Policy Lab on Early Years - Achieve Good Ltd
The Early Childhood Project - ReGenerate
Early Childhood Funders Group - Collective Futures
Total Strategic partners (restricted funding)
Smaller donations
National Trust for Scotland
The King's Foundation
London Without Limits
Forward Global
Distillers' Charity
AllChild
The Foundling Museum
Royal Academy of Dance
Sistema Scotland
The Maclean Foundation
Kensington & Chelsea Foundation
Pimlico Opera
Ft Financial Literacy and Inclusion Campaign
The Prince’s Trust
Haddo Arts
ORA Choir
My Name'5 Doddie Foundation
Total Smaller donations
Philanthropic Memberships
System Shift Group Ltd
Philanthropy Europe Association
Association of Charitable Foundations
Total Philanthropic Memberships
Total Granted		 £
1,100,000
791,201
300,000
100,000
50,000
2,341,201
250,000
90,000
35,000
7,333
75,000
20,000
477,333
50,000
25,000
10,000
9,000
9,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
6,000
4,000
1,250
250
154,500
14,618
4,922
2,489
22,029
2,995,063

8

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Programme hosted by the Foundation (by Restricted Funds)

Start Strong Programme 85,073

Operational Management

Grant Making

The Foundation will normally apply most of its annual income to charitable causes selected by its trustees. Grant-making decisions will honour and build upon the Foundation's historic philanthropic efforts, including that of its strategic charity partners, to build positive social impact.

From time to time, the Foundation may identify new focus areas and will conduct research and due diligence to identify the charities best placed to make a difference within a particular area of need. Those identified will be invited to apply for support. Upon invitation, potential grantees are formally invited to work with the Foundation in preparing grant materials for proposal development and review by the trustees.

Trustees regularly assess all large grants made, ensuring that charities supported by the Foundation are well governed, have strong leadership and have sufficient reserves to provide for their financial sustainability following a set of guidelines as a framework for grant-making decisions.

Risk management

The trustees have a risk management strategy that comprises:

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

The Foundation’s attitude to financial risk is described in its Investment policy below.

The key strategic risks faced by the Foundation are uncertainty inherent in deliberately pursuing a strategy aiming to change wider systems and in pursuing trust-based philanthropy. Both features of the Foundation’s work means that there are factors influencing impact that are out of the organisation’s control. To partially mitigate these risks, the Foundation maintains a strict focus – pursuing a smaller number of larger scale partnerships centred around the charity’s mission. This provides time to build mutual understanding and intelligence with our strategic partners on their programmes, external contexts and wider relationships.

As part of ongoing work to operationalise its next ten-year strategy, the Foundation will keep its risk management approach under review and, going forward, make changes if required.

Conflict of interest

Conflict of interest is mitigated by keeping the conflict of interest register up to date and following procedures stated in the Constitution for trustees to abstain from certain decisions where a potential conflict exists. Founder Members or a member of the Founders' family shall not be in a position of conflict of interest merely by virtue of being a trustee of, or being otherwise connected with, a charity connected to a Founder Member or a member of the Founders' family.

9

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Conflict of interest, cont.

This includes but is not limited to: The Childhood Trust (Registered Charity No 1154032), The Cabrach Trust (Scottish Charity no SC043771), Thrive at Five (Registered Charity No: 1195059) and The Distillers' Charity (Registered Charity No 1038763), where Grant Gordon is a trustee of each of these organisations.

Financial Review

Review of Statement of Financial Activities (Including Income and Expenditure Account)

Total income for the year was £1,091,061 (2024: £1,129,373) and total expenditure was £3,518,808 (2024: £3,124,505). The overall surplus was £1,133,066 after taking into consideration the gain on fixed assets of £3,560,813 (2024: £4,680,655).

Reserves at the year-end were £58,474,863, of which £58,129,936 was unrestricted and £344,927 restricted (2024: £57,341,797 all represented by unrestricted funds).

Unrestricted reserves included £5,020,000 of designated funds (2024: Nil).

Principal funding sources review

During the financial year, the Foundation's principal charitable funding came from interest and dividends totalling £831,061 (2024: £1,129,373), as well as £260,000 restricted donations for the Start Strong initiative that the Foundation is hosting.

The trustees are confident that the Foundation will continue to have sufficient funds to meet its grant obligations.

Reserves policy

The trustees seek to retain a prudent level of reserves while managing them in line with the Charity’s spend-down policy, with the expectation that funds will be drawn down over time to deliver social impact.

The reserves policy accords with the Charity Commission's guidelines. Reserves levels are reviewed annually in line with an annual planning and budgeting process and monitored throughout the year. Reserves comprise unrestricted, designated, and restricted funds. Unrestricted funds are available for general use. Within these, the trustees may designate amounts for specific future purposes; such designated funds remain unrestricted but are not intended for general expenditure. Restricted funds are subject to donor-imposed conditions and can only be used for the specified purposes.

The year-end balances of each category are disclosed in the Financial Review above.

Fundraising

As the main source of funds for grant-making is from the Charity’s annual income and related investment funds, the Foundation did not undertake any fundraising activities for itself. However, it supported our partners' fundraising to leverage additional scale and diversity of income using the Foundation’s cornerstone funding commitments, including as match funding.

10

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Investment policy

The trustees take a conservative view regarding the investment of funds. Under the Constitution, the Foundation has the power to make any investment which the trustees see fit after obtaining advice from a financial expert as the trustees consider necessary and are permitted to do by the Trustee Act 2000.

The trustee’s Investment Committee maintained oversight of the Foundation’s funds, which are managed by an independent investment manager, obtaining guidance from specialist financial management consultants.

The Foundation divides its investment funds into a short-term and a long-term fund.

The aim of the short-term fund is to safeguard approximately three years of expenditure with very low tolerance for volatility and risk of capital loss; and its performance is benchmarked against CPI measured over three years and the Asset Risk Consultants (ARC) Sterling Cautious index.

The aim of the long-term fund is to take advantage of the higher tolerance of volatility afforded by its longer-term time horizon in order to increase the Foundation's grant-making capacity through the spenddown period out to 31 December 2035; and its performance is benchmarked against CPI+2% and the ARC Sterling Balanced index.

For both the short-term and long-term funds, the investment manager will be expected to meet Ethos’ investment objectives net of fees.

The Foundations’ approach to responsible investment is guided by an Investment Policy Statement (IPS) approved by the trustees and implemented by its appointed discretionary investment manager. Ethos’ IPS does not intend to list specific exclusions but expects that all appointed discretionary investment managers will:

Fixed Assets

During the year the Foundation has acquired one laptop computer.

Plans for future

The Foundation’s investment funds constitute its pool of charitable resources for future grant-making. The funds provide the opportunity for the Foundation, which aims to spend down its endowment, to drive forward its mission to improve early childhood outcomes in the UK. It is still planned that these funds will be fully spent by 31st December 2035. The next year will be the first year operating against its ten-year strategy for spending down its funds. The Foundation aims to continue to pursue impact with its partners and continuously learn and improve its work to act as a funder of systemic change for children in the UK.

As part of operationalising the Foundation’s strategy for the next decade, the organisation will shift towards a mission-aligned impact approach across all its investments and philanthropic donations.

11

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Trustees

The trustees had no beneficial interest in the funds of the Charity and they were as follows:

G E Gordon OBE - Chair B Gordon L Blythe L Gakic K L Oliver (appointed 10 September 2025)

Trustees responsibilities

The trustees are responsible for preparing the report and accounts in accordance with applicable law and regulations.

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial period. Under that law the trustees have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under the applicable law trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the income or expenditure of the charity for that period. In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Constitution and with the requirements of the Statement of Recommended Practice Accounting and Reporting by Charities, as well as that they are prepared in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102).

They are also responsible for safeguarding the assets of the Foundation and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity's website.

12

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation, Registered Charity Number: 1166697 Trustees' Report

Disclosure of information to auditors

All the trustees at the time this report was approved confirm that:

22 May 2026

This report was approved by the board on ……………………..... and signed on its behalf.

…………………………… G Gordon OBE Founder Member

13

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation

Independent auditors' report to the members of The Ethos Foundation

Opinion

We have audited the financial statements of The Ethos Foundation (the ‘charity’) for the year ended 30 September 2025 which comprise the statement of financial activities, balance sheet, cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

14

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation

Independent auditors' report to the members of The Ethos Foundation

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

Audit procedures performed included reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; discussions with the charity on their own assessment of the risks that irregularities may occur either as a result of fraud or error, their assessment of compliance with laws and regulations and whether they were aware of any instances of non-compliance, including any potential litigation or claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates and business rationale of any significant transactions that are unusual or outside the normal course of business.

As a result of our assessment, it is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business. However, laws and regulations considered to have a direct effect on the financial statements included the Charities Act 2011 together with the Charities SORP (FRS 102).

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with the ISAs (UK).

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

15

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation

Independent auditors' report to the members of The Ethos Foundation

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Gedalia Waldman BA FCA (Senior Statutory Auditor) for and on behalf of Xeinadin Audit Limited, Statutory Auditor

5 Technology Park Colindeep Lane Colindale London United Kingdom NW9 6BX

………………………….

Date 2 June 2026

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

16

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Statement of Financial Activities for the year ended 30 September 2025

Notes
Income
Income from:
Donations
Income from investments
3
Total Income
Expenditure
Expenditure on:
Charitable activities
4
Other expenditure
4
Total Expenditure
Other recognised gains/losses
8
Net movement in funds
Transfer between funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net gains on fixed assets investments
Net incoming / (outgoing) resources		 Unrestricted
Funds
2025
£
-
831,061		 Restricted
Funds
2025
£
260,000
-		 Total
Funds
2025
£
260,000
831,061
1,091,061
(3,475,813)
(42,995)
(3,518,808)
(2,427,747)
3,560,813
1,133,066
-
1,133,066
57,341,797
58,474,863		 Total
Funds
2024
£
-
1,129,373
831,061 260,000 1,129,373
(3,390,740)
(42,995)		 (85,073)
-		 (3,093,451)
(31,054)
(3,433,735) (85,073) (3,124,505)
(2,602,674)
3,560,813		 174,927
-		 (1,995,132)
4,680,655
958,139
(170,000)		 174,927
170,000		 2,685,523
-
788,139 344,927 2,685,523
57,341,797 - 54,656,274
58,129,936 344,927 57,341,797

Continuing operations

All of the above results in the current and comparative years are derived from continuing activities.

Other recognised gains and losses

There were no other recognised gains or losses other than those stated above.

Movements in funds

Movements in funds are disclosed in Note 14 to the Accounts.

Comparative figures

See note 21.

17

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation
Balance Sheet
as at 30 September 2025
Notes
Fixed assets
Tangible assets
7
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due
within one year
10
Net current assets/(liabilities)
Net assets
Funds
Restricted Funds
12
Unrestricted Funds
13
Total funds		 £
£
3,112
57,996,932
58,000,044
219,154
877,629
1,096,783
(621,964)
474,819
58,474,863
344,927
58,129,936
58,474,863
2025		 Charity Number
1166697
CIO No CE006474
£
£
2,416
57,846,797
57,849,213
1,274
85,268
86,542
(593,958)
(507,416)
57,341,797
-
57,341,797
57,341,797
2024		 Charity Number
1166697
CIO No CE006474
£
£
2,416
57,846,797
57,849,213
1,274
85,268
86,542
(593,958)
(507,416)
57,341,797
-
57,341,797
57,341,797
2024
57,341,797
-
57,341,797
57,341,797

22 May 202

Approved by the board on ……………………..... and signed on its behalf by:

…………………………… G Gordon OBE Founder Member

18

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Cash Flow Statement for the year ended 30 September 2025

The Ethos Foundation
Cash Flow Statement
for the year ended 30 September 2025
Cash generated from operating activities
Net income/(expenditure) for the reporting period
Adjustments for
Depreciation
Dividends, interest and rents from investments
Investment management fees
Net gains on fixed assets investments
(Increase)/decrease in debtors
Increase in creditors
Net cash (used in)/provided by operating activities
Cash from investing activities
Interest received
Purchase of tangible fixed assets
Proceeds from sale of investments
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Consisting of:
Cash at bank and in hand at end of the period		 2025
£
1,133,066
802
(831,061)
213,853
(3,560,813)
(217,880)
28,006
(3,234,027)
27,886
(1,498)
4,000,000
4,026,388
792,361
85,268
877,629
877,629		 2024
£
2,685,523
182
(1,129,373)
261,385
(4,680,655)
229
576,643
(2,286,066)
7,683
(2,598)
1,400,000
1,405,085
(880,981)
966,249
85,268
85,268

19

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

1 Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention (unless otherwise stated in the relevant policy or note) and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - Charities SORP FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011.

Presentation currency

The financial statements are presented in Sterling.

Public benefit entity

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

Going concern

The trustees consider that there are no material uncertainties related to event or conditions that cast significant doubt upon the Foundation's ability to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees considered the Charity's budget projection. The trustees made enquiries and have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

Fund accounting

Unrestricted funds comprise income receivable or generated for the furtherance of the objects of the Charity without a specified purpose and are available as general funds. Expenditure which meet these criteria are charged to the funds, together with a fair allocation of support costs. Accumulated surpluses are available for use at the discretion of the trustees.

Designated funds are a type of unrestricted fund set aside by charity trustees for a specific future purpose; such designated funds remain unrestricted but are not intended for general expenditure.

Restricted funds are used for the specific purposes laid down by the donor (if any). Expenditure which meet these criteria are charged to the funds.

Income

Total income is included in the Statement of Financial Activities. Income comprises donations, interest and dividends to further the charity's objectives. Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Expenditure

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

Support costs

These are management and administrative costs and comprise expenditure not directly attributable to the generated funds, charitable or fund raising activities of the Charity, but relate to furtherance of the Charity's objectives. They are therefore allocated to the relevant category of resources expended based on estimates of the time devoted to each activity.

20

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

Accounting policies, cont.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Computers

over 5 years

Fixed asset investments

Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. The current market value is obtained from the statements prepared by the active fund managers.

Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening carrying value (or purchase date if later).

Financial instruments

a) Basic financial assets

Basic financial assets, including cash, bank balances, and debtors are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

b) Other financial assets and liabilities

Other financial assets and liabilities, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the Statement of Financial Activities.

c) Basic financial liabilities

Basic financial liabilities, including accruals, are initially recognised at transaction price and subsequently carried at amortised cost, using the effective interest rate method. They are classified as current liabilities if payment is due within one year or less.

Cash at bank and in hand

Cash at bank and in hand includes bank balances held in current account and instant access deposit account. All of the amounts held on interest bearing deposit are available to spend on charitable activities.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

21

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

Accounting policies, cont.

Taxation

The Foundation is not liable to corporation tax as it is a Registered Charity.

The Foundation is not VAT registered and can therefore not recover input tax on goods and services purchased.

Pensions

The charity operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

Short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

2 Significant judgements and estimates

Preparation of the financial statements requires trustees to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Trustees make assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The trustees’ estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically.

Support costs:

Costs such as travel, consultancy fees and subscriptions are allocated to the relevant activity based on estimates by the trustees of time they devoted to charitable activities – 90% of the time spent and other expenditure -10% of the time spent.

3
Analysis of income
Income from investments:
Investment income dividends
Investment income interest
Bank and other interest		 2025
£
569,725
233,450
27,886
831,061		 2024
£
652,570
469,120
7,683
1,129,373

22

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

4 Analysis of expenditure

Analysis of expenditure Analysis of expenditure
Charitable donations - unrestricted
Charitable donations - restricted
Wages and salaries
Employer's NI
Pensions
Insurance
Travel and subsistence
Consultancy and organisational development
Accommodation, services and venue hire
Recruitment and HR costs
IT, software, website and social media costs
Depreciation
Subscriptions
Investment fees and gifting costs:
Investment management fees
Charity platforms administrative charges
Governance cost:
Unrestricted
funds:
Charitable activities
£
Charitable donations
2,973,034
Memberships with other charitable
organisations given as donations
22,029
Investment fees and gifting costs: 100%
213,918
Support costs: 90% of support costs
181,759
3,390,740
Other expenditure
Support costs: 10% of support costs
20,195
Governance costs: 100% of governance
costs
22,800
42,995
Total expenditure
3,433,735
Audit and accounting fees
Memberships with other charitable organisations given
as donations		 Charitable
activities
£
2,973,034
85,073
-
-
-
-
-
-
-
-
-
-
22,029		 Support
costs
£
-
-
91,092
8,899
4,571
48
7,856
50,031
3,546
33,150
1,959
802
-
201,954
-
-
-
22,800
224,754
Allocations
2025
£
(181,759)
(20,195)
(22,800)
-		 2025
2024
Total
Total
costs
costs
£
£
2,973,034
2,723,000
85,073
-
91,092
18,397
8,899
1,206
4,571
785
48
-
7,856
3,996
50,031
64,806
3,546
4,943
33,150
18,216
1,959
3,263
802
182
5,324
22,029
-
3,080,136
213,853
65		 3,282,090
2,844,118
213,853
261,385
65
60
213,918
-		 213,918
261,445
22,800
18,942
3,294,054 3,518,808
3,124,505
Restricted
funds:
£
85,073
-
-
-		 Total costs
2025
Total costs
2024
£
2,723,000
-
261,445
109,006
3,093,451
12,112
18,942
31,054
3,390,740 85,073 3,093,451
20,195
22,800		 -
-		 12,112
18,942
42,995 - 31,054
3,433,735 85,073 3,518,808 3,124,505

Support costs include all expenditure not directly related to the charitable activity. These are allocated to the relevant activity based on estimates of time devoted to each activity.

All grants given were to charitable institutions. Details and reconciliations of material grants given are presented and reconciled in the Trustees' Annual Report.

23

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

5
Net movement in funds
This is stated after charging:
Accountancy services
Audit fee		 2025
£
11,664
11,136
22,800		 2024
£
9,048
9,894
18,942

6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Wages and salaries
Employer's NI
Pensions
Travel and subsistence - staff
Travel and subsistence - trustees
Consultancy and organisational development - trustees
IT, software, website and social media costs - trustees		 2025
£
91,092
8,899
4,571
6,706
1,150
771
259
113,448		 2024
£
18,397
1,206
785
2,158
1,838
-
-
24,384

The Charity had two employees (Headcount FTE:1.4) during the year in the roles of Foundation director and Foundation financial and operations manager who comprised the key management personnel (2024: one, headcount FTE 0.8).

Total cost to employ the charity's key management personnel: £104,562 (2024: £20,388).

The average number of trustees during the year was 4 (2024: 4). The trustees did not receive any remuneration for services to the Charity in the year. During the year the Trustees spent their time on governance, fundraising and representation.

One trustee received re-imbursement for travel and conference expenses in the year (2024: 2). The charity paid for a trustee to attend an international forum event on its behalf. The charity covered software security for two trustees’ laptops, which are used to access and manage the charity’s financial

7 Tangible fixed assets

Cost
At 1 October 2024
Additions
At 30 September 2025
Depreciation
At 1 October 2024
Charge for the year
At 30 September 2025
Net book value
At 30 September 2025
At 30 September 2024		 Computer
Equipment
£
2,598
1,498
4,096
182
802
984
3,112
2,416

24

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

8
Fixed assets - Investments
Market value brought forward
Additions to investments at cost
Disposals at carrying value
Net gains on fixed assets investments
Market value carried forward
Net gains on fixed assets investments
Gains on revaluation of fixed assets investments
Losses on foreign exchange within fixed assets investments		 2025
£
57,846,797
803,175
(4,213,853)
3,560,813
57,996,932
2025
£
3,583,637
(22,824)
3,560,813		 2024
£
53,705,837
1,121,690
(1,661,385)
4,680,655
57,846,797
2024
£
4,684,247
(3,592)
4,680,655

Fixed asset investments are revalued and stated at market value at the balance sheet date. In terms of assessing the portfolio's market value, the portfolio's management team is relied upon.

The risk from financial instruments is considered in the Trustees report. The Foundation's Investment Committee mitigates these risks by retaining W1M Wealth as discretionary fund management. As Ethos’ fund managers W1M Wealth operate an investment policy, approved by trustees, that provides for low to medium risk and a high degree of diversification of holdings within investment asset classes, and has due regard to sustainability and responsible investment as it relates to environmental, social and governance issues.

Investments by type

W1M Wealth: The Ethos Foundation (Bonds):

The investment policy for the above portfolio is a fixed interest mandate for those who require low risk to capital in nominal terms.

Risk profile - Low Volatility.

W1M Wealth: The Ethos Foundation (Cautious):

The investment policy for the above portfolio is a medium risk mandate for clients who wish to have some participation in the higher returns available from equities, but prefer a more cautious stance than the typical “Balanced” investor.

Risk profile - Medium/low volatility; highly diversified.

W1M Wealth: The Ethos Foundation (Bonds):
- Total Securities
- Total Cash
W1M Wealth: The Ethos Foundation (Cautious):
- Total Securities
- Total Cash
- Income due from dividends not yet paid
Total market value carried forward		 2025
£
Market value
carried
forward
17,941,494
21,481
17,962,975
39,109,167
920,201
4,589
40,033,957
57,996,932		 2024
£
Market value
carried
forward
17,178,322
19,683
17,198,005
40,210,416
436,766
1,610
40,648,792
57,846,797

25

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

9 Debtors 2025 2024
£ £
Prepayments and accrued income 219,154 1,274
**10 ** Creditors: amounts falling due within one year 2025 2024
£ £
Trade creditors 35,000 -
Accruals 586,964 593,958
621,964 593,958
**11 ** Financial instruments
2025 2024
£ £
Financial assets:
Financial assets measured at amortised cost 1,096,783 86,542
Financial assets measured at fair value 57,996,932 57,846,797
59,093,715 57,933,339
Financial liabilities:
Financial liabilities measured at amortised cost 621,964 593,958
621,964 593,958
**12 ** Restricted Funds
Funds Movement in funds Funds
Transfers
brought Income from Total between carried
forward Donations Expenditure Funds forward
at 30
at 1 October September
2024 2025
£ £ £ £ £
Start Strong - 260,000 (85,073) 170,000 344,927
Total - 260,000 (85,073) 170,000 344,927

Description of the Start Strong Programme is already included in the Trustees’ Report. Please refer to the Trustees’ Report for full details.

26

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

13 Unrestricted Funds
At the beginning of year
Resources incoming
Resources outgoing
Transfer to Restricted Funds
Net gains on fixed assets investments
Transfer to Unrestricted - Designated
funds
At the end of the year		 2025
Unrestricted
General
£
57,341,797
831,061
(3,433,735)
(170,000)
3,560,813
(5,020,000)		 2025
Unrestricted
Designated
£
-
-
-
-
-
5,020,000		 2025
Total
Funds
£
57,341,797
831,061
(3,433,735)
(170,000)
3,560,813
-
58,129,936		 2024
Total
Funds
£
54,656,274
1,129,373
(3,124,505)
-
4,680,655
-
53,109,936 5,020,000 57,341,797

In total, the Foundation has designated funds of £5,020,000 (2024: £Nil) relating to committed grants included within unrestricted reserves as at the year end.

14 Analysis of net assets between funds
Tangible assets
Investments
Current assets
Creditors: amounts falling due within one
year		 2025
Unrestricted
Funds
£
3,112
57,996,932
742,406

(612,514)		 2025
Restricted
Funds
£
-
-
354,377
(9,450)		 2025
Total
Funds
£
3,112
57,996,932
1,096,783
(621,964)
58,474,863		 2024
Total
Funds
£
2,416
57,846,797
86,542
(593,958)
58,129,936 344,927 57,341,797

15 Charity information

The Ethos Foundation is a Charitable Incorporated Organisation (the CIO) which has a principal office in England. Registered office is at 34 Arlington Road, London, NW1 7HU. The Foundation's principal address is Fivefields, 8-10 Grosvenor Gardens, London, SW1W 0DH.

16 Transactions with trustees

There were no transactions with any trustee in the year or previous year other than disclosed in note 6.

17 Liability of members

The members of the Charity (being the Charitable Incorporated Organisation, the CIO) have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities on wounding up.

27

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

18 Connected charities

Some Trustees of the Charity are also Trustees of other organisations that received material donations during the year. These include The Childhood Trust (Registered Charity 1154032) which received £1,100,000, The Cabrach Trust (Scottish Charity SC043771) which received £791,201, Thrive at Five (Registered Charity 1195059) which received £300,000, and The Distillers' Charity (Registered Charity No 1038763) which received £9,000.

These donations were made in the normal course of the Foundation’s charitable activities. No amounts were outstanding at the year-end, except as disclosed under future commitments.

19 Commitments to Multi-Year Donations

No liability has been recognised in respect of the following multi-year grants, as payments are conditional upon recipients meeting specified requirements. The charity has committed to provide funding to a number of partner organisations over multiple years, subject to agreed conditions and reporting requirements. These include:

20 Accounting period

30 September continued to be a preferred date to report the achievements of the Charity.

28

Docusign Envelope ID: 8B5BA0D8-3B10-8AD4-81E3-975E2F65138B

The Ethos Foundation Notes to the Accounts for the year ended 30 September 2025

21 Statement of Financial Activities

for the year ended 30 September 2024 (comparative figures)

Unrestricted
Funds
2024
Note
£
Income
Income from:
Income from investments 3
1,129,373
Total Income
1,129,373
Expenditure
Expenditure on:
Charitable activities 4
(3,093,451)
Other expenditure 4
(31,054)
Total Expenditure
(3,124,505)
Net incoming/(outgoing) resources
(1,995,132)
Other recognised gains
Net gains on fixed assets investments 8
4,680,655
Net movement in funds
2,685,523
Reconciliation of funds:
Total funds brought forward
54,656,274
Total funds carried forward
57,341,797		 Unrestricted
Funds
2024
Note
£
Income
Income from:
Income from investments 3
1,129,373
Total Income
1,129,373
Expenditure
Expenditure on:
Charitable activities 4
(3,093,451)
Other expenditure 4
(31,054)
Total Expenditure
(3,124,505)
Net incoming/(outgoing) resources
(1,995,132)
Other recognised gains
Net gains on fixed assets investments 8
4,680,655
Net movement in funds
2,685,523
Reconciliation of funds:
Total funds brought forward
54,656,274
Total funds carried forward
57,341,797		 Restricted
Funds
2024
£
-		 Total
Funds
2024
£
1,129,373
1,129,373 - 1,129,373

(3,093,451)
(31,054)		 -
-		 (3,093,451)
(31,054)
(3,124,505) - (3,124,505)
(1,995,132)
4,680,655		 -
-		 (1,995,132)
4,680,655
2,685,523
54,656,274		 -
-		 2,685,523
54,656,274
57,341,797 - 57,341,797

29