Charity number: 1180520
Joffe Charitable Trust CIO
Report and financial statements For the year ended 31 December 2020
Joffe Charitable Trust CIO
Contents
For the year ended 31 December 2020
Reference and administrative information .................................................................................... 1 Trustees’ annual report ................................................................................................................ 2 Independent auditor’s report ...................................................................................................... 10 Statement of financial activities .................................................................................................. 14 Balance sheet ............................................................................................................................. 15 Statement of cash flows .............................................................................................................. 16 Notes to the financial statements ............................................................................................... 17
Joffe Charitable Trust CIO
Reference and administrative information
For the year ended 31 December 2020
Charity number 1180520 Registered office Invicta House Golden Lane London EC1Y 0TL Trustees Trustees who served during the year and up to the date of this report were as follows: Myles Wickstead Chair of Trustees Barbara Frost Deputy Chair of Trustees Deborah Joffe Frances Longley Nick Perks Ruth Taylor Vanetta Joffe served as Trustee during the year and until her resignation on 20 January 2021. She was appointed Patron of the charity on 29 January 2021 with the title Co-Founder and Honorary President. Staff Alex Jacobs Director Carin Lake Trust Manager Bankers Lloyds Bank Investment Managers Cazenove Capital (a trading name of Schroder & Co Ltd) were appointed Investment Managers to the charity in lieu of Sarasin and Partners LLP on 22 May 2020. The transfer of the charity’s funds from Sarasin to Cazenove was completed in February 2021. Cazenove Capital (a trading name of Schroder & Co Ltd) 1 London Wall Place London EC2Y 5AU Auditors Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL
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Joffe Charitable Trust CIO
Trustees’ annual report
For the year ended 31 December 2020
The trustees present their report and the audited financial statements for the year ended 31 December 2020.
Reference and administrative information set out on page 1 form part of this report. The financial statements comply with current statutory requirements, the charity's Constitution and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
Objectives and activities
Objectives and aims
The objects of the Charity are to advance such charitable purposes for the public benefit as are exclusively charitable according to the laws of England and Wales as the trustees may from time to time determine.
Review of the Charity
Strategy
The Joffe Charitable Trust continues to implement our strategic plan, available here on our website.
Our mission is: “We support civil society leaders to build a fairer world, with opportunity for all. We encourage people to do as much as possible to realise human rights and reduce poverty in lower income countries. We particularly focus on tackling the systemic causes of poverty.”
Our two focus areas are:
a) Fighting corruption and promoting tax justice
b) Building stronger not-for-profit organisations
Within these, we have set the following objectives for the five years 2020 - 2025:
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To work with civil society leaders to build effective movements that position the UK as a leading positive influence in the fields of global tax justice and financial integrity.
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To support new and existing civil society leaders to build effective and sustainable nonprofit organisations that strengthen partnership between the UK and lower income countries and tackle the causes of poverty.
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Joffe Charitable Trust CIO
Trustees’ annual report
For the year ended 31 December 2020
We believe these objectives enable us to make the maximum contribution from our limited resources. They build on our history and strengths. They both have the potential to achieve disproportionate impact.
We will continue to make grants to organisations for charitable work in pursuit of these objectives. We will convene events where there is clear potential to add value this way. We will encourage greater collaboration among civil society organisations (including donors) in order to achieve shared goals. We will actively encourage the individuals involved in running the organisations we fund.
Activities
During 2020, the trustees approved 30 new grants with a total value of £897,934. Eight of these grants were for more than one year. We publish data on the grants we make using the 360giving standard, available on our website here.
We increased our grant making in response to the Covid pandemic, believing that it was more important than ever to support civil society and respond to the crisis.
We have continued to convene events where we believe they add value, with a particular emphasis on collective action. Our key events included:
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Running a strategic retreat for civil society leaders in the fields of tax reform and fighting corruption.
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Funder discussion on the Covid pandemic, convened with Partners for a New Economy.
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Funder roundtables on tax and corruption work, convened with the John Ellerman Foundation.
We have worked actively with civil society organisations and their funders to identify and respond to strategic opportunities during the year.
Within the Trust, we have completed the ESG Olympics process, led by the Friends Provident Foundation, and appointed Cazenove as our new investment managers. We hope that this will contribute to raising standards in the wider ESG sector, as well as aligning our investments with our values.
We have identified practical ways of improving our approach to diversity, equity and inclusion. And we have signed up to IVAR’s flexible funders campaign, which aligns well with our operating approach.
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Joffe Charitable Trust CIO
Trustees’ annual report
For the year ended 31 December 2020
Performance
Feedback
In November 2020, we asked grantees and others to tell us what think they about working with us. 61 people responded, giving anonymous feedback through GrantAdvisor UK. We’ve published a short report of what they said, available on our website here.
Overall, their feedback was extremely positive, as in previous years. Most respondents expressed a great deal of appreciation for how we work and what we do. They want us to keep doing the same and made a few specific suggestions for improvement.
Comments included: “pushes us to perform without being on our backs” and “a strategic and empathetic funder”.
Grant assessments
We review and rate all the reports we receive from grantees as well as the overall performance of our grants. We aim to provide systematic comments back to grantees within one month, which we achieved for 98% of reports received in the year. We assess mid-grant reports on a traffic light scale. When a grant is complete, we assess its overall performance on a scale of 1 (low) to 5 (high).
Our assessments over the year were as follows:
| Mid grant assessment | Jan – Dec 2020 |
Jan – Dec 2019 |
|---|---|---|
| Green | 24(73%) | 22(79%) |
| Amber | 8(24%) | 5(18%) |
| Red | 1(3%) | 1(4%) |
| Total | 33 | 28 |
| End of grant assessment | Jan – Dec 2020 |
Jan – Dec 2019 |
|---|---|---|
| 5 – highest | 7(33%) | 2(15%) |
| 4 | 5(24%) | 5(38%) |
| 3 | 7(33%) | 2(15%) |
| 2 | 2(10%) | 4(31%) |
| 1 - lowest | 0 | 0 |
| Total | 21 | 13 |
The highest rated grants were used by organisations to carry out work that makes a significant difference which they would not have been able to do without us. They used our funding to invest
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Joffe Charitable Trust CIO
Trustees’ annual report
For the year ended 31 December 2020
in developing their organisations for the medium term. We were pleased to see an increase in the highest rated grants.
The lowest rated grants did not demonstrate significant results in either the short or long term. Some were for higher risk initiatives that were appropriate to support but did not achieve the promise hoped for. We were pleased to see a fall in the number of lowest rated grants.
Grantee diversity
We started monitoring grantee diversity during 2020, as part of our commitment to improving diversity, equity and inclusion.
| Grantee CEOs | Grants made Jan - Dec 2020 |
Grants made Jan - Dec 2020 |
|---|---|---|
| n | % | |
| Female | 13 | 45% |
| Male | 16 | 55% |
| N/A | 0 | |
| Person of colour | 6 | 21% |
| White | 23 | 79% |
| N/A | 0 |
| Grantee boards | Grants made Jan - Dec 2020 |
Grants made Jan - Dec 2020 |
|---|---|---|
| n | % | |
| No Female | 0 | 0% |
| 0-50% Female | 11 | 48% |
| >= 50% Female | 12 | 52% |
| N/A | 6 | |
| Nopeople of colour | 9 | 39% |
| 0 - 20%people of colour | 5 | 22% |
| >= 20%people of colour | 9 | 39% |
| N/A | 6 |
We are continuing to develop our approach to monitoring grantee diversity carefully. In line with emerging practice in the grant-making sector, these figures are based on our own assessments. They are not objective or self-assessed by the people involved. This was a practical compromise, to reduce the burden on grantees while providing a broad indication of performance. As we build up data, we will be able to provide comparative figures in future. We note that:
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Joffe Charitable Trust CIO
Trustees’ annual report
For the year ended 31 December 2020
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45% of our grantees during the year are led by women; and 21% are led by people of colour.
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All of our grantees’ boards have women on them, and over half of our grantees during the year have boards that are over 50% female.
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39% of our grantees during the year have no people of colour on their boards. This may be a particular area to focus on for improvement.
Plans for the year ahead
We expect to continue our core work and focus areas. The heart of our work will be making grants in our two focus areas. We intend to clarify our criteria for Focus Area 2 further. We will continue to take a proactive and engaged approach as a funder. We expect to convene events including:
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An annual strategic retreat for UK work on tax reform and fighting corruption (held as a series of remote events, as necessary).
-
Workshops for small organisations, for instance in the areas of digital mobilisation and fundraising.
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Meetings with other funders, to identify connections with their priorities and advance joint agendas.
We will work on identifying ambitious priorities for progress that may realistically be implemented within the lifetime of the current UK government, and encourage a collective approach among allies. We will also support work to build civil society organisations for the long term.
We expect to recruit two or three new trustees, to fill vacancies that naturally arise as current trustees reach the end of their term. We will continue to develop our work on diversity, equity and inclusion and expect to see that reflected in the new board composition.
Finally, we intend to identify specific goals for the Trust to spend out over approximately the next ten years. We hope these will reflect our founder Joel Joffe’s values and form a lasting legacy from our work at the Trust.
Public Benefit
All grants made and work undertaken by the charity were for charitable purposes and for the public benefit and the Trustees have had regard to the Charity Commission's public benefit guidance where relevant.
Financial Review
Investment policy and objectives
The trustees manage the charity’s investments in line with our investment policy. This sets the aim “to obtain medium / high income with medium growth from medium risk investments that are
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Joffe Charitable Trust CIO
Trustees’ annual report
For the year ended 31 December 2020
consistent with our approach to responsible investing. We seek to use our investments in ways that are consistent with our mission and values.”
The charity's investments continue to be invested by professional fund managers. During the period, the trustees completed the process of reviewing investment managers and appointed Cazenove Capital as the charity’s new fund managers. The transfer of funds to Cazenove’s new Sustainable Growth Fund was completed in February 2021.
We are delighted to have been initial seed investors in this new fund, alongside the Friends Provident Foundation and the Blagrave Trust, as part of the “ESG Olympics” process. We believe that this will generate resources to fund our work and align our investments with our values. We hope it helps strengthen momentum for a wider move to high quality responsible investing.
Reserves policy and going concern
The charity’s investment portfolio is unrestricted and therefore the trustees have full discretion as to how these funds are applied. The investment funds support the trustees’ strategy in relation to grant-making activities.
The charity has no requirement to retain reserves to support specific on-going liabilities. Sufficient liquid working capital is maintained to ensure that future grant payments can be fulfilled.
Financial Review
The financial position of the charity is shown in the attached financial statements, which comply with current statutory requirements, the charity's governing documents and Statement of Recommended Practice - Accounting and Reporting by Charities.
The charity's total funds at the year end were £10,497,351.
The charity's principal source of income was the return on investments. During the year, the charity’s investments regained most of the value lost when markets fell at the start of the Covid19 crisis.
The grants paid out to support charitable causes amount to £882,455. At the end of the financial year a further £516,613 grants had been committed in this or previous financial years but not yet paid out. Of these commitments, £408,338 will be paid within one year and £108,275 will be paid after one year.
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Joffe Charitable Trust CIO
Trustees’ annual report
For the year ended 31 December 2020
Structure, governance and management
Governing document
The charity is governed by its constitution, dated 31[st] October 2018.
All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 9 to the accounts.
Organisational structure
The Trustees meet regularly throughout the year to discuss the strategic direction and relevant matters including grant applications, operational plans, investment strategy, financial accounts and staff performance. The charity employs a Trust Director and a Trust Manager to support all aspects of its work.
Statement of responsibilities of the trustees
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:
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Select suitable accounting policies and then apply them consistently
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Observe the methods and principles in the Charities SORP
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Make judgements and estimates that are reasonable and prudent
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State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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Joffe Charitable Trust CIO
Trustees’ annual report
For the year ended 31 December 2020
Auditor
Sayer Vincent LLP continues to be the charity's auditor.
The trustees’ annual report has been approved by the trustees on 14 May 2021 and signed on their behalf by
Myles Wickstead
Chair of Trustees
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Independent auditor’s report
To the members of
Joffe Charitable Trust CIO
Opinion
We have audited the financial statements of Joffe Charitable Trust CIO (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet 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:
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Give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended
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Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
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Have been prepared in accordance with the requirements of the Charities Act 2011
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 Joffe Charitable Trust CIO'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.
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Independent auditor’s report
To the members of
Joffe Charitable Trust CIO
Other information
The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Act 2011 requires us to report to you if, in our opinion:
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The information given in the trustees’ annual report is inconsistent in any material respect with the financial statements;
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Sufficient accounting records have not been kept; or
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The financial statements are not in agreement with the accounting records and returns; or
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We have not received all the information and explanations we require for our audit
Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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.
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Independent auditor’s report
To the members of
Joffe Charitable Trust CIO
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Capability of the audit in detecting irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
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We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
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Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
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Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
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The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
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We inspected the minutes of meetings of those charged with governance.
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We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
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We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
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We reviewed any reports made to regulators.
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We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
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Independent auditor’s report
To the members of
Joffe Charitable Trust CIO
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We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
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In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charity's trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.
19 May 2021
Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006
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Joffe Charitable Trust CIO
Statement of financial activities
For the year ended 31 December 2020
| Forthe yearended 31 December 2020 | Forthe yearended 31 December 2020 | ||||
|---|---|---|---|---|---|
| Unrestricted Note £ Income from: 2 25,000 3 402,900 4 4,362 432,262 5 70,338 5 1,022,224 1,092,562 347,266 (313,034) Reconciliation of funds: 10,810,385 10,497,351 Donations and legacies Total expenditure Charitable activities Expenditure on: Other income Raising funds Investments Total income Total funds carried forward Net movement in funds (660,300) Total funds brought forward Net gains on investments Net income / (expenditure) before net gains / (losses) on investments |
Restricted £ - - - |
2020 Total £ 25,000 402,900 4,362 432,262 70,338 1,022,224 1,092,562 347,266 (313,034) 10,810,385 10,497,351 (660,300) |
Unrestricted 10,365,584 300,205 2,094 |
Restricted Total - 10,365,584 - 300,205 - 2,094 - 10,667,883 - 52,607 - 550,692 - 603,299 - 745,801 - 10,810,385 - - - 10,810,385 9 months to 31 December 2019 10,064,584 - |
|
| 432,262 | - | 10,667,883 | |||
| 70,338 1,022,224 |
- - |
52,607 550,692 |
|||
| 1,092,562 | - | 603,299 | |||
| 347,266 (660,300) |
- - |
745,801 10,064,584 |
|||
| (313,034) 10,810,385 |
- - |
10,810,385 - |
|||
| 10,497,351 | - | 10,810,385 |
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.
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Joffe Charitable Trust CIO
Balance sheet
For the year ended 31 December 2020
| Note Fixed assets: 12 Current assets: Current liabilities: 13 Total unrestricted funds Creditors: amounts falling due within one year Investments Cash at bank and in hand Net current assets The funds of the charity: Unrestricted funds Unrestricted income funds: Total charity funds Total net assets |
£ 187,662 |
2020 £ £ 10,314,688 10,314,688 54,218 54,218 (5,750) 182,662 10,497,350 10,810,385 10,497,351 10,497,351 |
2019 £ 10,761,917 |
|---|---|---|---|
| 10,761,917 | |||
| 187,662 (5,000) |
|||
| 10,497,351 | 48,468 | ||
| 10,810,385 | |||
| 10,810,385 | |||
| 10,810,385 |
Approved by the trustees on 14 May 2021 and signed on their behalf by
Myles Wickstead Chair of Trustees
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Joffe Charitable Trust CIO
Statement of cash flows
For the year ended 31 December 2020
| Note £ Cash flows from operating activities Net income / expenditure for the reporting period (313,034) (Gains)/losses on investments (347,266) Dividends, interest and rent from investments (402,900) Increase/(decrease) in creditors (750) Transfer in of assets from Trust - Net cash provided by operating activities (25,000) 402,900 949,877 (78,329) (52,053) Cash flows from investing activities: Donation of shares Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Change in cash and cash equivalents in the year Dividends, interest and rents from investments Proceeds from sale of investments Purchase of investments Net cash (used in) investing activities Cash movements within investment portfolio |
Note £ Cash flows from operating activities Net income / expenditure for the reporting period (313,034) (Gains)/losses on investments (347,266) Dividends, interest and rent from investments (402,900) Increase/(decrease) in creditors (750) Transfer in of assets from Trust - Net cash provided by operating activities (25,000) 402,900 949,877 (78,329) (52,053) Cash flows from investing activities: Donation of shares Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Change in cash and cash equivalents in the year Dividends, interest and rents from investments Proceeds from sale of investments Purchase of investments Net cash (used in) investing activities Cash movements within investment portfolio |
9 months to 31 December 2019 £ £ £ 10,810,385 (745,801) (300,205) 5,750 (10,365,584) (1,063,950) (595,455) 10,365,584 300,205 288,076 (10,304,192) - 1,197,395 649,673 133,445 54,218 54,218 - 187,663 54,218 2020 |
|---|---|---|
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Joffe Charitable Trust CIO
Notes to the financial statements
For the year ended 31 December 2020
1 Accounting policies
a) Statutory information
Joffe Charitable Trust CIO (reg. no. 1180520) was registered with the Charity Commission on 1 November 2018. The registered office address is Invicta House, Golden Lane, London EC1Y 0TL
b) Basis of preparation
The financial statements have been prepared 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 2015) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (September 2015) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
c) Public benefit entity
The charitable company meets the definition of a public benefit entity under FRS 102.
d) Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
e) Income
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.
f) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
g) Fund accounting
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.
h) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Expenditure on charitable activities includes the costs of delivering services and making charitable donations and grants undertaken to further the purposes of the charity and their associated support costs
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
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Joffe Charitable Trust CIO
Notes to the financial statements
For the year ended 31 December 2020
- 1 Accounting policies (continued)
i) Grants payable
Grants payable are made to third parties in furtherance of the charity's objects. Grants are accounted for on a cash basis when the recipient has received the funding.
j) Listed investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. Listed investments are presented at fair value.
k) Social investments
Social investments are carried at fair value or impaired costs when it is not practical to recognise at fair value. Such investments are subject to regular review and any impairment is charged to the statement of financial activities.
l) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
m) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
n) Creditors and provisions
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.
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Joffe Charitable Trust CIO
Notes to the financial statements
For the year ended 31 December 2020
2 Income from donations and legacies
| Gifts | 2020 9 months to 31 December 2019 Total Total £ £ 25,000 10,365,584 25,000 10,365,584 |
|---|---|
The main assets of the Joffe Charitable Trust legally transferred to Joffe Charitable Trust CIO (charity registration no: 1180520) at midnight between 5 April 19 and 6 April 19. Funds held in the Trust’s bank account therefore became the property of the new CIO on 6 April 19.
3 Income from investments
| Income from investments | ||
|---|---|---|
| Other Other income Dividends from listed investments |
2020 Total £ 402,900 402,900 2020 Total £ 4,362 4,362 |
9 months to 31 December 2019 Total £ 300,205 |
| 300,205 | ||
| 9 months to 31 December 2019 Total £ 2,094 |
||
| 2,094 |
- 4 Other income
All income was unrestricted in the year.
19
Joffe Charitable Trust CIO
Notes to the financial statements
For the year ended 31 December 2020
- 5 Analysis of expenditure current year
| Staff costs (Note 8) Grants to institutions (Note 6) Investment management costs Events Sundries Trustee expenses Professional services Support costs Governance costs Total expenditure 2020 Total expenditure 2019 |
£ - - 70,338 - - - - 70,338 - - 70,338 52,607 Raising funds |
£ 78,799 882,455 - 19,240 - - - 980,494 7,740 33,990 1,022,224 550,692 Charitable activities |
£ 26,266 - - - - 676 7,048 33,990 - (33,990) - - Governance costs |
£ - - - - 5,590 - 2,150 7,740 (7,740) - - Support costs |
£ £ 105,065 76,514 882,455 452,621 70,338 52,607 19,240 6,692 5,590 7,269 676 1,223 9,198 6,373 1,092,562 603,299 - - - - 1,092,562 603,299 2020 Total 9 months to 31 December 2019 |
|---|---|---|---|---|---|
20
Joffe Charitable Trust
Notes to the financial statements
For the year ended 31 December 2020
5b Analysis of expenditure prior period
| Staff costs (Note 8) Grants to institutions (Note 6) Investment management costs Events Sundries Trustee expenses Professional services Support costs Governance costs Total expenditure 2019 |
Raising funds £ - - 52,607 - - - - 52,607 - - 52,607 |
Charitable activities £ 57,523 452,621 - 6,692 - - - 516,836 9,269 24,587 550,692 |
Governance costs £ 18,991 - - - - 1,223 4,373 24,587 - (24,587) - |
Support costs 9 months to 31 December 2019 £ £ - 76,514 - 452,621 - 52,607 - 6,692 7,269 7,269 - 1,223 2,000 6,373 9,269 603,299 (9,269) - - - - 603,299 |
|---|---|---|---|---|
21
Joffe Charitable Trust CIO
Notes to the financial statements
For the year ended 31 December 2020
- 6 Grant making
Grants to institutions
| ActionAid (for Bretton Woods Project) Alive and Kicking Amaudo UK Anti Tribalism Movement Bright Blue Campaign Canon Collins ELAT Chayn CIC Church Action for Tax Justice (via ECCR) City of Sanctuary Coalition for Global Prosperity Consortium for Street Children Corporate Accountability Network Demos Global Greengrants Fund UK Global Justice Now Trust Global Legal Action Network International Lawyers Project International Senior Lawyers Project Jubilee Debt Campaign King's College London Korea Future Initiative Labour Behind The Label Trust Lawyers Against Poverty Omega Research Foundation Open Secrets Open Trust (for open Democracy) People & Planet Student Activities Prisoners of Conscience RAID Redress Trust South West International Development Network Spotlight on Corruption Swindon City of Sanctuary Tax Justice Network (for CICTAR) Tax Justice Network (for ICRICT) Tax Justice UK Tax Watch Limited The B Team The Ecology Trust (for Unchecked) The Equity Index The Lotus Flower Transparency International Worldwide Hospice Palliative Care Other grants of £10,000 or less At the end of the year Cost |
2020 £ £ - 30,000 25,000 - 2,400 16,896 20,000 - 30,000 - - 24,000 30,000 - 20,000 - 35,000 - 10,000 - 15,000 25,000 15,000 - 30,000 - 30,000 30,000 - 20,000 26,000 - 30,000 - - 30,000 20,000 20,000 30,000 30,000 17,000 - 20,000 - 35,000 - - 20,000 13,000 - - - - 43,350 30,000 30,000 40,000 - 25,000 - - 10,000 40,000 30,000 20,000 20,000 25,000 - 25,000 - 30,000 - - 15,000 20,000 - 20,000 - 20,000 - 30,000 - - 29,875 40,000 - 34,055 28,500 852,455 452,621 9 months to 31 December 2019 |
|---|---|
At the end of the financial year a further £516,613 grants had been committed in this or previous financial years but not yet paid out. Of these commitments, £408,338 will be paid within one year and £108,275 will be paid after one year.
22
Joffe Charitable Trust CIO
Notes to the financial statements
For the year ended 31 December 2020
- 7 Net (expenditure) / income for the year
| Net (expenditure) / income for the year | ||
|---|---|---|
| 9 months to | ||
| 31 December | ||
| This is stated after charging / (crediting): | 2020 | 2019 |
| £ | £ | |
| Auditor's remuneration (excluding VAT): | ||
| Audit | 3,250 | 3,750 |
| Other services | 1,750 | 2,000 |
8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
| Other staff costs The Joffe Charitable Trust CIO employed two members of staff in the year. Staff costs were as follows: Salaries and wages Social security costs Employer’s contribution to defined contribution pension schemes |
£ £ 89,320 66,000 9,912 7,322 3,573 2,640 2,260 552 105,065 76,514 2020 9 months to 31 December 2019 |
|---|---|
One employee earned more than £60,000 during the period (2019: nil).
The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £80,099 (2019: £59,185).
9
Trustee remuneration and expenses
The charity trustees were neither paid nor received any other benefits from employment with the charity in the period.
Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £676 incurred by 5 members relating to attendance at meetings of the trustees (2019: £1,223).
There were no donations made by the trustees within the period.
10 Related party transactions
Myles Wickstead, the chair of trustees, was on the Advisory Board of the Coalition for Global Prosperity. A grant of £10,000 was made to the Coalition for Global Prosperity in the year and a grant is committed for 2021.
Deb Joffe, a trustee, is a former colleague of the Advocacy Director of Labour Behind the Label. A grant of £20,000 was made to Labour Behind the Label in the year and a grant is committed for 2021.
Aggregate donations from related parties were £25,000 (2019: £nil).
23
Joffe Charitable Trust CIO
Notes to the financial statements
For the year ended 31 December 2020
11 Taxation
The CIO is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
12 Listed investments
| Listed investments | ||
|---|---|---|
| Accruals Creditors: amounts falling due within one year Net gain / (loss) on change in fair value (Disposals) within portfolio Fair value at the start of the year Investments transferred in the year Cash held by investment broker pending reinvestment Fair value at the end of the year Additions within portfolio |
2020 £ 10,672,485 25,000 78,329 (949,877) 347,266 |
9 months to 31 December 2019 £ - 10,156,760 58,000 (288,076) 745,801 |
| 10,173,203 141,485 |
10,672,485 89,432 |
|
| 10,314,688 | 10,761,917 | |
| 2020 £ 5,000 |
9 months to 31 December 2019 £ 5,750 |
|
| 5,000 | 5,750 |
13 Creditors: amounts falling due within one year
24