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2022-06-30-accounts

National Philanthropic Trust UK Limited

Annual report and accounts

30 June 2022

Company Registration Number 11542102 (England and Wales) Charity Registration Number 1181128

Reports
Contacts, officials and advisors 1
Chair’s review 3
Trustees’ report 4
Strategic report 8
Statement of trustees’ responsibilities 13
Independent auditor’s report 14
Financial statements
Statement of financial activities 18
Balance sheet 19
Statement of cash flows 20
Accounting policies 21
Notes to the financial statements 26

NPT UK Limited

Contacts, officials and advisors

Chair Ceris Gardner Trustees Ceris Gardner (who served during the year) Richard Cassell Vivien Gould Eileen R. Heisman David Rowe Chief Executive Officer John Canady Company Number (England and 11542102 Wales) Charity Registration Number 1181128 (England and Wales) Independent auditor RSM UK Audit LLP 25 Farringdon Street London EC4A 4AB Bankers Bank of America NA 2 King Edward Street London EC1A 1HQ Principal investment managers UBS 5 Broadgate London EC2M 2QS Cazenove Capital 1 London Wall Place London EC2Y 5AU Partners Capital 5 Young Street London W8 5EH

NPT UK Limited 1

Contacts, officials and advisors

Solicitors Withers LLP 20 Old Bailey London EC4M 7AN Registered address 20 Old Bailey London EC4M 7AN Principal address 125 Old Broad Street Suite 610 London EC2N 1AR

NPT UK Limited 2

Chair’s review

I am pleased to update you on National Philanthropic Trust UK Limited's (“NPT UK”) achievements in fiscal year 2021/22. NPT UK is a UK registered charity that commenced operations in 2019 in response to growing demand for donor-advised fund giving vehicles. NPT UK is committed to increasing philanthropy in society by helping donors manage their charitable giving with maximum convenience and tax efficiency.

In the midst of the continued COVID-19 pandemic, and a volatile economic environment, NPT UK reached new milestones in its fourth year of operations.

We now manage £75.6 million of funds, all which aims to support the philanthropic interests of individuals and organisations in pursuing the most efficient way to achieve maximum charitable impact. We pride ourselves on providing exemplary service to our NPT UK donors. From processing each incoming contribution to sending out meaningful grants, we support our donors and their charitable goals. Together, we are working to achieve real impact in the UK and around the world.

It is an honour to serve as the NPT UK Board Chair.

Warm regards,

Ceris Gardner Chair, NPT UK Limited Board of Trustees

NPT UK Limited 3

Strategic report 30 June 2022

The Trustees (who are also the directors for purposes of Company Law) present their statutory report with the financial statements of NPT UK for the year ended 30 June 2022. The financial statements have been prepared in accordance with the accounting policies and comply with the charitable company’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

Mission and historical background

NPT UK’s mission is to inspire, support and increase charitable giving in society, primarily through charitable donor-advised funds (DAFs), which benefit charities and voluntary organisations in the UK and internationally.

NPT UK was established as a registered charity in England and Wales in May 2019 by National Philanthropic Trust, a charitable 501(c)(3) organisation in the United States (US), in response to growing international interest in DAFs. DAFs are a significant and popular form of giving in the US and are growing in popularity in the UK and in other countries around the world.

NPT UK aims to achieve its mission in a number of areas:

The Trustees have paid due regard to public benefit guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.

Governing document

The charity is controlled by its governing document, the Articles of Association, and constituted as a company limited by guarantee as defined by the Companies Act 2006.

The charity’s sole member is National Philanthropic Trust, a US charitable 501(c)(3) organisation.

NPT UK Limited 4

Strategic report 30 June 2022

Measuring impact and public benefit

As a grantmaking charity, providing public benefit is at the heart of the charity's activity. NPT UK seeks to advance philanthropy in society, primarily through the provision of charitable DAFs.

Donors to NPT UK can recommend grants from their DAFs to support organisations of their choice, provided that such organisations pursue charitable purposes as the term is defined under UK law. NPT UK reviews and must approve all grant recommendations before the grant can be issued.

The Trustees seek to certify that each grant made from a DAF is made in furtherance of a charitable purpose and offers an identifiable benefit to the public or a significant section of the public. Furthermore, any private benefit that may arise to any person or company as a result is not more than incidental.

Charitable objectives

The charitable objectives are to increase the amounts available for charitable purposes by:

Fundraising statement

NPT UK does not actively solicit donations and therefore is not registered with the Fundraising Regulator or subscribed to any fundraising codes of practice. When donations from individuals are received, the charity aims to protect personal data and never sells data or swaps data with other organisations. During fiscal year 2021/22, the charity received no complaints about fundraising activities.

Energy and Carbon Reporting

NPT UK is committed to looking after the environment and is striving to become more energy conscious with a focus on reducing carbon emissions and the promotion of energy efficient actions. The COVID-19 pandemic had significant impact on NPT UK’s environmental performance. During the majority of fiscal year 2021/22, all staff worked remotely. The London business office was utilized during the last quarter of 2021/22 and business travel resumed then as well. NPT UK is exempt from disclosing energy consumption as less than 40,000kWh of energy was consumed during fiscal year 2021/22. Notwithstanding the effects of COVID-19, NPT UK will continue to actively promote and utilize video/audio conferencing (Zoom and Microsoft Teams) and work-from-home policies in support of energy efficient actions.

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Strategic report 30 June 2022

Plans for future periods

We will continue to promote philanthropy in society by working with donors to help them effectively manage their charitable giving. In addition to raising awareness of DAFs with donors, we will also partner with their advisors - wealth managers, tax advisors, solicitors and estate planners - to ensure advisors are aware of the benefits of incorporating philanthropy and DAFs into their client discussions. Our efforts to be a partner in giving are all focused on increasing charitable giving in the UK and beyond.

Grantmaking priorities and exclusions

The Trustees regularly review NPT UK’s policies, objectives and guidelines to ensure that grants made are in support of exclusively charitable purposes and for public benefit. As such, grants cannot be paid to:

Charities are notified electronically of grants awarded and grant payments are made electronically. Grant recipients may or may not submit to NPT UK regular or one-off progress reports, depending on the nature of the project, the purpose and terms of the grant and the size of the grant awarded.

Trustees

Recruitment and appointment of new Trustees

At any one time, the charity shall have at least three Trustees who meet in person and by teleconference a minimum of three times every year and additionally as required. The identification of potential new Trustees is carried out by the Board of Trustees, the aim being to appoint those with the appropriate expertise and experience for NPT UK’s work.

On agreeing to become a Trustee of the charity, new Trustees are thoroughly briefed by their co-Trustees and key management on the history of the charity, day-to-day management, responsibilities of the Trustees, current objectives and future plans. The Trustees are also encouraged to attend training and update courses.

NPT UK Limited 6

Strategic report 30 June 2022

Trustees (continued)

Register of Trustees’ interests

In accordance with Company Law and the Charity Commission guidance that charity Trustees and key management who may have a personal interest in any matter before the Trustees should declare that interest and refrain from taking part in any discussion relating to it, a ‘Register of Trustees’ Interests’ is maintained and updated annually.

Trustees are required to disclose all relevant interests and register them with the Chief Executive Officer, and in accordance with the charity's policy, withdraw from decisions where a conflict of interest arises.

Governance

Organisational structure

The Trustees are ultimately responsible for the policies, activities and assets of the charity. They meet a minimum of three times annually to review developments with regard to the charity and its grantmaking and investment activities, and to make any important decisions. When necessary, the Trustees seek advice and support from the charity's professional advisers.

Key management personnel

The key management personnel are considered to be the Trustees and the CEO. The Trustees are not remunerated for their roles.

Administration

NPT UK seeks to build efficient and effective administrative systems, whilst recognising the effectiveness of working in partnership with other organisations. To this end, administration, management information systems and technology functions of the charity are provided to NPT UK by two related organisations: NPT Transatlantic Limited of the UK and National Philanthropic Trust of the US. National Philanthropic Trust of the US is the sole shareholder of NPT Transatlantic as well as the sole member of NPT UK. Both arrangements are governed by service agreements which also make provisions for data protection and confidentiality/privacy requirements.

NPT UK Limited 7

Strategic report 30 June 2022

Trustees’ duties

The Trustees of NPT UK must act in accordance with a set of general duties. These duties are detailed in section 172 of the Companies Act 2006 which is summarised as follows:

“A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

The Trustees are briefed on their duties when accepting of the role and annually. Trustees fulfil their duties through a governance framework that delegates day-to-day decision making to key management and personnel (see page 6 and 7 for additional details).

The following sections of the strategic report highlight how the Trustees of NPT UK have successfully fulfilled their duties.

Achievements and strategic goals

Contributions

Our donors contributed £39,892,485 in fiscal year 2021/22 (2020/21 - £52,263,517) to NPT UK’s DAFs. Wire transfers are the most common method of making contributions. We have also accepted appreciated securities as contributions. These contributions are turned into philanthropic capital for the causes and charities closest to our donors' hearts.

Investments

NPT UK donors can indicate an investment preference, with reference to preapproved investments and separately managed accounts, including alternative and unlisted investments, in an effort to increase the amounts available for grants. However, investment performance was down for fiscal year 2021/22, with net losses of £4,969,971 (2020/21 gains of £1,517,300). NPT UK’s Trustees carefully review any new investments and also monitor the investment performance on an on-going basis.

NPT UK Limited 8

Strategic report 30 June 2022

Grantmaking

NPT UK's donors recommended 366 grants totalling £9,246,846 in fiscal year 2021/22 (2020/21 – 252 grants totalling £9,118,462). NPT UK’s staff assisted our donors with the grantmaking process, from answering basic questions about philanthropy to discussing complex grant agreements. Our team has substantial knowledge about philanthropy, DAFs and industry best practices that support our donors. We work to ensure our donors are able to achieve their philanthropic goals.

Financial review

NPT UK is committed to increasing philanthropy in society and the 2021/22 fiscal year demonstrated the continued success of the charity in its mission. Income for the 2021/22 fiscal year was £40,692,505 (2020/21 - £52,431,316). The decrease in contributions is a result of volatile economic conditions and smaller annual contributions from established donors.

Expenditure for the year was £9,747,314 (2020/21 - £9,401,703). This slight increase was driven by the generosity of approved donor’s grant recommendations to charitable organizations. As a result of fiscal year contributions exceeding charitable distributions for the year ended 30 June 2022, there was a surplus - after investment losses of £5,492,691 (2020/21 investment gains of £1,470,257) - of £25,452,505 (2020/21 - £44,499,870). Funds at the end of the year comprised £75,732,342 (2020/21 - £50,279,837) of unrestricted funds.

Reserves policy and funds

NPT UK’s free reserves policy is to maintain, ideally, a level equivalent to between three and six months’ general operating expenditure. Unrestricted operating funds are those funds which are not restricted and not represented by DAFs. At 30 June 2022, these funds were £179,335 (2020/21 - £65,512), representing 13.2 months of operating expenditure, and exceeds the stated policy.

The Trustees consider that reserves at this level will ensure that, in the event of a drop in funding, they will be able to continue the charity’s current activities for a period of time that allows for sufficient consideration to be given to ways in which additional funds may be raised.

Unrestricted donor-advised funds, which have been designated by the Trustees, are those funds held by NPT UK pending recommendation for onward distribution to third party charities. At 30 June 2022, these funds were £75,553,007 (2020/21 - £50,214,325).

NPT UK Limited 9

Strategic report 30 June 2022

Investment management

The Trustees of NPT UK are responsible for the management of all funds maintained by NPT UK. The funds are managed in accordance with the principles and standards of prudence applicable under English law. Under its Articles of Association, NPT UK has the power to invest funds that are not immediately required for charitable purposes. NPT UK's investment policy enables a diversified global portfolio of investments across a range of asset classes. The portfolio is managed by qualified investment managers approved by the Trustees. NPT UK seeks to balance risk, return and spend so as to observe proper balance between the need to meet present demands on the charity and the need to allow for future charitable objectives. NPT UK also takes Environmental, Social and Governance factors into account when making investments.

Principal risks and uncertainties

In line with the requirement for Trustees to undertake a risk assessment exercise and report on the same in their annual report, the Trustees initiated a process to assess organisational risk. The Trustees have identified five main areas where risk may occur:

Governance risks include those the charity might suffer from lack of direction, skills and training of the Trustees and good use of its funds.

Operational risks include those inherent in the charity's activities including supporting unsuitable appeals from charities, continuity of staff, disaster recovery, and other issues.

Financial risks include those arising as a result of poor budgetary control, inappropriate spending, inaccurate accounting and inappropriate investment policies.

Environment or external risks include the possible damage to the charity's reputation, through association with unsuitable charities, or with inappropriate investment activity.

Compliance risks include the effects of government policies, potential adverse changes in these policies and the consequences of non-compliance with applicable laws and regulations.

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Strategic report 30 June 2022

Principal risks and uncertainties (continued)

The major forms of financial risk NPT UK faces are volatility in equity and other investment markets due to economic conditions, the attitude of donors relative to their recommendations on investment risk and changes in sentiment concerning equities within particular sectors or sub-sectors. Where significant reserves are held as cash, the charity faces the risk that such funds lose value in real-terms, due to low interest rates and/or currency exchange rates.

Having assessed the major risks to which the charity is exposed, in particular to its finances, the Trustees believe that by monitoring reserve levels, by ensuring that controls exist over the key financial systems and by examining the operational and business risks faced by the charity, effective systems are in place to mitigate those risks. The charity maintains an upto-date risk register in order to identify and establish effective systems to mitigate those risks.

In addition to the identified major forms of financial risk, the charity’s risk register is a dynamic document and process that will change over time as different risks are identified and other risks are downgraded or removed. The risks at any one time are graded depending on their perceived likelihood and impact. Assessments are also made as to whether the risks are increasing, decreasing or remaining stable and the action plans, responsibilities and timeframes for their implementation are also reviewed regularly by Trustees during the year. There are generic risks of running any charitable or business undertaking. The most significant risk identified for NPT UK relates to:

♦ disaster recovery and planning, including cyber breaches.

Disaster recovery and planning refers to the significant impact that a major cyber breach or unpredictable disaster could have, such as failures in IT systems or physical damage to property and equipment by way of fire, flood or other natural forces. These risks cannot be predicted, but can be prepared for, and NPT UK does so through the creation and review of IT and disaster recovery plans; implementing digital and physical security measures; and obtaining appropriate insurance coverage.

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Strategic report 30 June 2022

Auditor

RSM UK Audit LLP have indicated their willingness to be reappointed for another term.

Disclosure of information to auditor

Each of the Trustees confirm that:

The Trustees’ Report prepared under the Charities Act 2011, which also contains all information required in a Directors' report by the Companies Act 2006, and the incorporated Strategic Report prepared under the Companies Act 2006, were approved by the Board of Trustees and signed on behalf of the Trustees by:

Ceris Gardner Chair

Date: 3 November 2022

For more information on DAFs see our website at www.nptuk.org.

NPT UK Limited 12

Statement of Trustees’ responsibilities 30 June 2022

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

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time, the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

NPT UK Limited 13

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NATIONAL PHILANTHROPIC TRUST UK LIMITED

Opinion

We have audited the financial statements of National Philanthropic Trust UK Limited (the ‘charitable company’) for the year ended 30 June 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charitable company 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 charitable company’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 Trustees’ Report other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the Trustees’ 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.

NPT UK Limited 14

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NATIONAL PHILANTHROPIC TRUST UK LIMITED

Other information (continued)

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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 13, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless

NPT UK Limited 15

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NATIONAL PHILANTHROPIC TRUST UK LIMITED

the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected noncompliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the charitable company operates in and how the charitable company is complying with the legal and regulatory frameworks;

• inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

• discussed matters about non-compliance with laws and regulations and how fraud might occur, including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011 and the charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NATIONAL PHILANTHROPIC TRUST UK LIMITED

The extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Sladden (Senior Statutory Auditor) For and on behalf of RSM UK Audit LLP, Statutory Auditor Chartered Accountants 25 Farringdon Street London EC4A 4AB Date: 09/11/22

NPT UK Limited 17

Statement of financial activities Year to 30 June 2022

Notes 2022
Unrestricted
Operating
Funds
£		 2022
Unrestricted
DAF
Funds1
£
39,892,485
522,708
-
40,415,193
99,319
9,484,501
9,583,820
(5,492,691)
25,338,682
50,214,325
75,553,007		 2022
Total
Funds
£		 2021
Total
Funds
£
Income from:
Donations
Donations to giving
funds
1
Investments
2
Other income
Total income
Expenditure on:
Raising funds
3
Charitable activities
3
Total expenditure
Realised and unrealised
gains /(losses) on
investment assets
8
Net income and net
movement in funds
4
Reconciliation of
funds
Total funds brought
forward
Total funds carried
forward		 -
7
277,305		 39,892,485
522,715
277,305		 52,263,517
47,043
120,756
277,312 40,692,505 52,431,316
114,028
49,466		 213,347
9,533,967		 81,993
9,319,710
163,494 9,747,314 9,401,703
5 (5,492,686) 1,470,257
113,823
65,512		 25,452,505
50,279,837		 44,499,870
5,779,967
179,335 75,732,342 50,279,837

1 Donor-advised funds

NPT UK Limited 18

Balance Sheet 30 June 2022

Company Number: 11542102

Notes 2022
Unrestricted
Operating
Funds
£		 2022
Unrestricted
DAF
Funds
£
68,749,373
-
6,897,487
6,897,487
(93,853)		 2022
Total
Funds
£		 2021
Total
Funds
£
Fixed assets
Investments
8
Current assets
Debtors
9
Cash at bank and in
hand
Current liabilities
Creditors: amounts
falling due within one
year
10
Net current assets
Total net assets
Represented by the
funds of the charity:
Unrestricted operating
funds
12
Unrestricted DAF funds
12
Total funds		 - 68,749,373 33,599,348
101,852
126,489		 101,852
7,023,976		 111,076
16,653,911
228,341
(49,006)		 7,125,828
(142,859)		 16,764,987
(84,498)
179,335 6,803,634
75,553,007
-
75,553,007
75,553,007		 6,982,969 16,680,489
179,335 75,732,342 50,279,837
179,335
-		 179,335
75,553,007		 65,512
50,214,325
179,335 75,732,342 50,279,837

These accounts were authorised and approved by the Trustees and signed on their behalf by:

Ceris Gardner Trustee

Approved on: 3 November 2022

NPT UK Limited 19

Statement of cash flows 30 June 2022

Notes 2022
£		 2021
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from sale of investments
Purchase of investments
Net cash used by investing activities
Change in cash and cash equivalents in the period
Cash and cash equivalents at the beginning of the reporting
period
Cash and cash equivalents at the end of the reporting period
B		 30,490,061
522,715
17,048,371
**(57,691,082) **		 42,945,120
47,043
12,748,285
(42,716,034)
**(40,119,996) ** (29,920,706)
(9,629,935)
16,653,911		 13,024,414
3,629,497
7,023,976 16,653,911
A. Reconciliation of net income to net cash used in operating activities
2022
£		 2021
£
Net income per the statement of financial activities
Adjustments for:
Realised and unrealised losses/(gains) on investments
Dividends and interest from investments
Decrease/(increase) in debtors
Increase in creditors
Net cashprovided by operating activities		 25,452,505
5,492,686
(522,715)
9,224
58,361		 44,499,870
(1,470,257)
(47,043)
(96,369)
58,919
30,490,061 42,945,120
B. Analysis of cash and cash equivalents 2022
£		 2021
£
Cash at bank and in hand
Total cash and cash equivalents		 7,023,976 16,653,911
7,023,976 16,653,911

NPT UK Limited 20

Accounting policies 30 June 2022

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are described below.

Basis of preparation

The accounts have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The accounts have been prepared in accordance with the charity’s governing documents, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019).

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Status

The charity is a private company limited by guarantee and incorporated in England and Wales. The registered office and principal activity are disclosed in the Trustees’ Report.

Critical accounting estimates and areas of judgement

The most significant areas of judgement and key assumptions that affect items in the accounts are in respect to the allocation of support costs between activities and the value of alternative investments as explained more fully in the policies set out on pages 22-24. Alternative investments are recorded at estimated fair value in the absence of readily determined fair values. Management’s estimates are established from valuations provided by the respective funds which are based on the recognized exchange value of the underlying security, recent transaction value, net asset value or current bid price and are believed to be a reliable best estimate of fair value. With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the charity are the level of fundraising achievable, the investment return and the performance of the investment market generally.

Going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

NPT UK Limited 21

Accounting policies 30 June 2022

Going concern (continued)

The Trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. This is because the National Philanthropic Trust, the charity’s sole member, has donated to NPT UK in support of operating costs and has committed to provide financial support to the extent necessary to enable the charity to continue to pay its liabilities as they become due for a period of at least 12 months from the date of approval of these financial statements. Additionally, the strategy document plans for growth and this is to be closely monitored.

Income

Income in the form of contributions is recognised in the period in which the charity is entitled to receipt and the amount can be measured reliably and it is probable that the funds will be received. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or when the donor or funder has specified that the income is to be expended in a future accounting period.

Dividends earned on fixed asset investments are recognised once the dividend has been declared and notification has been received of the dividend due. Interest on cash deposits is recognised as it is earned.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered. All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses are allocated or apportioned to the applicable expenditure headings.

Resources expended comprise the following:

NPT UK Limited 22

Accounting policies 30 June 2022

Expenditure recognition (continued)

It includes both costs that can be allocated directly to such activities and those indirect costs necessary to support them (see c. below).

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Financial instruments

The charitable company applies the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues” of FRS102 to all of its financial instruments. Financial assets and financial liabilities are recognised when the charitable company becomes a party to the contractual provisions of the instrument and are offset only when the charitable company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Investments

Listed investments (with the exception of FX products and derivatives, which form an immaterial part of investments held and are therefore treated the same) are initially recognised at transaction value and subsequently measured at fair value as at the balance sheet date using the closing quoted market price.

Alternative investments, including hedge funds and private equity funds, are recorded at estimated fair value generally established on the basis of the valuations provided by respective investment managers that determine the unit value based on the net asset value (NAV) of the underlying investments.

NPT UK Limited 23

Accounting policies 30 June 2022

Investments (continued )

Money market time deposits are fixed term cash deposits designed to provide a higher rate of return, but cannot be freely accessed before maturity. They are valued based on the amount of cash invested.

Realised gains (or losses) in investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial period. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Financial assets

Basic financial assets, including trade debtors and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where the arrangement with a debtor constitutes a financing transaction, the debtor is initially measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument and subsequently measured at amortised cost.

Financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Judgement has been applied in whether certain funds held by NPT UK should be classified as restricted funds or unrestricted funds.

NPT UK Limited 24

Accounting policies 30 June 2022

Fund accounting (continued)

Trustees consider that funds held by NPT UK in donor-advised funds pending recommendation for onward distribution to third party charities are classified as designated within unrestricted funds. However, the Trustees note the following:

Taxation

NPT UK is a registered charity and as such its income and gains falling within Sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives. Accordingly, no provision for current or deferred taxation is considered necessary.

Value Added Tax

Value Added Tax is not recoverable by the charity and as such is included in the relevant costs in the statement of financial activities.

NPT UK Limited 25

Notes to the financial statements 30 June 2022

1. Donations to giving funds

Donations to giving funds
2022
£		 2021
£
Monies received as contributions to Donor Advised Funds (DAFs)
(Unrestricted funds)		 39,892,485 52,263,517
39,892,485 52,263,517

2. Investment income

Investment income
2022
£		 2021
£
Listed and unlisted investments
Interest on cash held as part of investment portfolio		 508,872
13,843		 46,000
1,043
522,715 47,043

Investment income was wholly unrestricted in both years.

3. Total expenditure

Raising
Funds
£		 Charitable
Activities
£		 2022
Total
Funds
£
9,246,846
427,907
72,561
9,747,314		 2021
Total
Funds (c)
£
9,118,462
248,360
34,881
9,401,703
Direct costs
Grants (a)
Allocated support costs (b)
Other
Governance costs (d)
Total		 -
142,786
70,561		 9,246,846
285,121
2,000
213,347 9,533,967

NPT UK Limited 26

Notes to the financial statements 30 June 2022

(a) Grants

Grants for the year have been made in support of the following charitable activities:

2022
£
2,251,971
1,941,111
1,511,374
1,178,830
1,032,858
1,020,886
249,526
60,290
9,246,846		 2021
£
Social welfare
Nature and the environment
Education
General charitable organisations
The arts
Medicine and health
Religion
International		 254,154
613,880
3,567,664
1,041,445
2,555,180
838,644
184,999
62,496
9,118,462

The following institutions received total grants which are considered to be material in the context of NPT UK’s expenditure for the year ended 30 June 2022. Grants are not made to individuals.

2022
£
The Woodland Trust
Impetus – The Private Equity Foundation
The Foundation and Friends of the Royal Botanic Gardens, Kew
Harpenden Spotlight on Africa
International Foundation for Research and Education
Boxwise London CIC		 1,015,000
800,000
425,000
416,000
398,707
347,500
3,402,207

The following institutions received total grants which are considered to be material in the context of NPT UK’s expenditure for the year ended 30 June 2021. Grants are not made to individuals.

2021
£
Yale University
Donmar Warehouse Projects Limited
International Foundation for Research and Education
Princeton Charitable Foundation Limited
Tusk Trust Limited
The Royal Academy of Arts
Berkshire Youth Trust		 1,021,211
700,000
525,750
395,983
380,000
375,000
300,000
3,697,944

NPT UK Limited 27

Notes to the financial statements 30 June 2022

(b) Allocated support costs

Support costs are allocated based on time spent on activities.

(c) Comparative information

Comparative information for total expenditure, analysed by fund, is as follows:

Unrestricted
Operating
Funds
£		 Unrestricted
DAF
Funds
£
25,779
9,298,376
9,324,155		 2021
Total
Funds
£
Raising funds
Charitable activities		 56,214
21,334		 81,993
9,319,710
77,548 9,401,703

(d) Governance costs

Governance costs comprised:

2022
£		 2021
£
Trustee grants
Legal expenses
Accountancy and audit fees		 2,000
46,801
23,760		 -
13,281
21,600
72,561 34,881

4. Net movement in funds

This is stated after charging:

Net movement in funds
This is stated after charging:
2022
£		 2021
£
Auditor’s remuneration (inclusive of VAT)
Accountancyfees		 14,400
9,360		 13,080
8,520

5. Key management personnel

The key management personnel during the year were the Trustees and the Chief Executive Officer. The total cost of employment of the key management personnel (including employer’s national insurance and pension contributions) are incurred by NPT Transatlantic Limited as governed by the service agreement with NPT UK and adequately disclosed in the accounts of NPT Transatlantic Limited.

NPT UK Limited 28

Notes to the financial statements 30 June 2022

6. Trustees’ remuneration and expenses

No Trustee received any remuneration or were reimbursed for any expenses from the charity for their services (2020/21: £nil).

7. Taxation

NPT UK is a registered charity and therefore is not liable to corporation tax on income derived from its charitable activities, or on income and gains arising from investment, as it falls within the various exemptions available to registered charities.

8. Investments

2022
£		 2022
£		 2021
£
2021
£
2,161,342
42,716,034
(12,748,285)
1,470,257
33,599,348
Market value at 1 July
Additions at cost
Disposals at market value
Net realised and unrealised
(losses)/gains
Market value at 30 June		 33,599,348
57,691,082
(17,048,371)
(5,492,686)
68,749,373

Investments at market value comprised:

UK
£		 Overseas
£		 2022
Total
£
2021
Total
£
Accounts and investments on call
Money market time deposits
Listed investments
Bonds
Multi asset funds
Alternative investments
Historical cost of investments		 3,674,734
201,383
16,012,756
2,991,213
19,946,126
3,859,142		 -
-
-
-
-
22,064,019		 3,674,734
2,576,962
201,383
437,416
16,012,756 13,056,288
2,991,213
2,912,569
19,946,126
6,931,409
25,923,161
7,684,704
68,749,373 33,599,348
46,685,354 22,064,019
73,463,221

9. Debtors

Debtors
Unrestricted
Operating
Funds
£
-
101,852
101,852
48,548		 Unrestricted
DAF
Funds
£		 2022
Total
Funds
£
-
101,852
101,852
111,076		 2021
Total
Funds
£
Debtors and prepaid expenses
Other debtors		 -
-		 3,600
107,476
- 111,076
Total 2021 62,528

NPT UK Limited 29

Notes to the financial statements 30 June 2022

10. Creditors: amounts falling due within one year

Unrestricted
Operating
Funds
£
13,326
30,780
1,400
3,500
49,006
39,550		 Unrestricted
DAF
Funds
£		 2022
Total
Funds
£
13,326
30,780
95,253
3,500
142,859
84,498		 2021
Total
Funds
£
Purchase ledger balances
Audit fee
Accrued expenses
Due to NPT-US		 -
-
93,853
-		 15,120
22,680
44,948
1,750
93,853 84,498
Total 2021 44,948

11. Financial instruments

Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through surplus/deficit		 2022
£		 2021
£
68,749,373 33,599,348

12. Movements in funds

Movements in funds
Balance
as at
1 July
2021
£		 Income
£		 Expenditure
£		 Realised &
Unrealised
gains/
(losses)
£		 Balance
as at
30 June
2022
£
Unrestricted operating funds
Unrestricted DAF funds
65,512
50,214,325		 277,312
40,415,193		 (163,494)
(9,583,820)		 5
(5,492,691)		 179,335
75,553,007
50,279,837 40,692,505 (9,747,315) (5,492,686) 75,732,342
Balance
as at
1 July
2020
£		 Income
£		 Expenditure
£		 Realised &
Unrealised
gains/
(losses)
£		 Balance
as at
30 June
2021
£
Unrestricted operating funds
Unrestricted DAF funds
22,309
5,757,658		 120,756
52,310,560		 77,548
9,324,155		 (5)
1,470,262		 65,512
50,214,325
5,779,967 52,431,316 9,401,703 1,470,257 50,279,837

Unrestricted operating funds can be applied towards fulfilling NPT UK’s charitable purposes.

Unrestricted DAF funds represent funds available for the support of charitable activities.

NPT UK Limited 30

Notes to the financial statements 30 June 2022

13. Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted
Operating
Funds
£		 Unrestricted
DAF
Funds
£		 2022
Total
Funds
£
Fixed assets
Current assets
Current liabilities		 -
228,341
(49,006)		 68,749,373
6,897,487
(93,853)		 68,749,373
7,125,828
(142,859)
179,335 75,553,007 75,732,342
Unrestricted
Operating
Funds
£		 Unrestricted
DAF
Funds
£		 2021
Total
Funds
£
Fixed assets
Current assets
Current liabilities		 -
105,062
(39,550)		 33,599,348
16,659,925
(44,948)		 33,599,348
16,764,987
(84,498)
65,512 50,214,325 50,279,837

14. Related party transactions

Purchases of £31,500 (2020/21 - £23,008) were made from the National Philanthropic Trust in respect of operating expenses. At 30 June 2022 £3,500 (2020/21 - £1,750) was owed to the National Philanthropic Trust.

NPT UK Limited 31