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2025-06-30-accounts

The Penchant Foundation

(Charity Commission No 1188402)

Trustees' Annual Report and Financial Statements for the year ended 30 June 2025

The Penchant Foundation

Trustees' Annual Report for the year ended 30 June 2025

The Trustees present their annual report and financial statements of the charity for the year ended 30 June 2025. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s constitution, the Charities Act 2011 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 published in October 2019.

Reference and Administrative details

Name of Charity: The Penchant Foundation
Charity No.1188402
Trustees: Sir Charles Chadwyck-Healey Bt
Lady Angela Mary Chadwyck-Healey
Edward Alexander Chadwyck-Healey
Catherine Davies
Faith Miller
Principal Office Address: 5 Madingley Road
Cambridge
CB3 0EE
Bankers: NatWest Bank
21 Petty Cury Cambridge
CB2 3NE
Investment Managers: Brown Advisory
18 Hanover Square
London
W1S 1JY
Accountants: Reza Motazedi and Co LLP
7 Bell Yard
London WC2A 2JR
Reza Motazedi FCA
IndependentExaminer: 7 Bell Yard
London WC2A 2JR
Structure, GovernanceandManagement
Settlors: Sir Charles Chadwyck-Healey
LadyAngela Mary Chadwyck-Healey
GoverningDocument: The principal governing document is the constitution of the CIO dated 6 March
2020. Power of appointment of additional trustees lies with the existing
Trustees,who are the original trustees.No additional trustees have been
recruited since the inception of the charity, and it is not considered that any
additional trustees are required at present. The Trustees are permitted to
appoint income or capital to beneficiaries in the course of meeting the fund's
purpose.

Page 1

The Penchant Foundation

Trustees' Annual Report

for the year ended 30 June 2025

Investment Objectives: The Foundation seeks to produce the best financial return within an acceptable level of risk. The investment objective is to generate a return of inflation plus 4% per annum over the long term, after expenses. This should allow the Foundation to at least maintain the real value of the assets, whilst funding annual expenditure in the region of 4% of the average value of the assets over the prior three years. The Foundation adopts a total return approach to investment, generating the investment return from income and capital gains or losses. It is expected that if in any one year the total return is insufficient to meet the budgeted grantmaking expenditure, in the long term the real value of the Foundation will still be maintained in accordance with the investment objective above. Objectives and activities Objectives of the Charity: The charitable objectives of the Charity are to advance such charitable purposes (according to the law of England and Wales) as the Charity trustees from time to time see fit. The Charity intends to carry out its purpose by making grants. The Charity is governed by the charity Trustees of the Charity ("the Trustees") who have a duty, acting at all times in the best interests of the Charity, to apply the Charity's assets to advance the objects and have ultimate responsibility for all grant-making decisions. The number of projects and activities which can be supported is limited by the amount of funds available for distribution. The priorities for funding over the next year will be the making of grants to organisations that submit an application to the Charity (such applications may be by invitation). Public Benefit: The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity’s aims and objectives and in setting the grant-making policy for the year. Risk: Attitude to risk: The Foundation relies on the investment return to fund grant-making. However, grants are generally one-off awards and the number and value of these may vary depending on circumstances. The key risk to the long-term sustainability of the Foundation is inflation, and the assets should be invested to mitigate this risk over the long term. The Trustees understand that this is likely to mean that investment will be concentrated in real assets and that the capital value will fluctuate. The Trustees are able to tolerate volatility of the capital value of the Foundation, as long as the Foundation is able to meet its short-term grant making commitments through either income or liquid capital assets.

Page 2

The Penchant Foundation

Trustees' Annual Report

for the year ended 30 June 2025

Assets: The Foundation's assets can be invested widely and should be diversified by
asset class, by manager and by security. Asset classes could include cash,
bonds, equities, property, hedge funds, structured products, private equity,
commodities, property and any other asset that is deemed suitable for the
Foundation.
Currency: The base currency of the investment portfolio is Sterling.
Investment may be made in non-Sterling assets but should not exceed 50%
of the total investment portfolio value.
Hedging is permitted.
Credit: The Foundation's cash balances should be deposited with institutions with a
minimum rating of A- or invested in a diversified money market fund.
Bond exposure should be predominantly focused on investment grade
issuers.
Liquidity Requirements: The Foundation aims to distribute grants of between £150k and £200k per
annum.This can be funded from both income and capital.
The Trustees wish to keep at least 70% of the assets in investments that can
be realised withinthreemonths.
To allow for volatility of capital values, the Trustees wish to maintain at least 3
years' worth of budgeted grant-making in cash or lower risk liquid
investments.
A minimum of 2% of the total assets should be kept in cash or near cash
investments at all times.
Time Horizon: The Foundation is expected to exist in perpetuity and investments should be
managedtomeet the investment objective and ensure this sustainability.
The Foundation can adopt a long term investment time horizon.
Management, Reporting The Investment Manager is required to produce a valuation and performance
and Monitoring: report quarterly. The Foundation has nominated a list of authorised
signatories, two of which are required to sign instructions to the Investment
Manager.
The Trustees have responsibility for agreeing strategy and monitoring the
investment assets. The Trustees meet at least annually to review the portfolio,
including an analysis of return, risk and asset allocation. Performance will be
monitored against agreed market benchmarks, and againsttheinvestment
objective of inflation plus 4% over thelongterm.
ReviewofActivities: Grants totaling£250,820were made in 2025 (2024: £176,158). The
breakdown of the grants is shown in note 9 of the accounts. The Trustees
monitor their level of grant-making and are prepared to utilise capital for this
purpose where needed.
Financial Review: Total income was £135,454(2024: £80,749) with expenditure amounting to
£290,718(2024: £213,832). Net assets at the end of the year were £5,644,430
(2024:£5,464,275).

Page 3

The Ponchant Foundation Trustees. Annual Report forth• yMr•nd•d 30Jun• 2028 The of th? Tru8tee8 iStoaimtodistribLrte all the ir￿m8 8$ it arises to dwitteseach yew8ThY notto arnjwlate ￿ServeS. Tlw usetheir discretion to dthbute frtwn t3￿1 from b'me to tinw. pr4n• forlulur• wlod•: Tho Tnth8 short.term KI long48mi objeLives are to continue lo make grants in accxdarYa 4Mth their grant maknng The Trustees aim to ulil1wtheufftstric￿ a￿1 furbJ$ ¢oathieve th18 0ty'ec'v8. The Trustee#, plan8 are to r￿ea￿ fundts from 0ndvm￿l fund, arKt the Chanty intsnds lo carry its purposes ty making gTanl8. Thi8 Invoslment Poly Slatamwl w88 wepared by the Trustees of t Ponthant Foundation lo pro¥th a framthvoth for thg Man￿ment of its Inve8tmerrt assets. K ￿11 an b￿8 to ￿rIjIng aFPrOpnater￿SS. Approv•1 •nd rnvlvK. Accoun￿ry Guld•llnM: Thè Tr￿t￿l are T￿￿￿1b18 ky w•pariry tha Twstee¥' Rewl th8 ftnancid 8tatonwnts In ac￿darte vAth opplicat4e and Unitsd ￿n9 Accojnling Standards {United lQwJom Gtrngralty AGC•Pted Accounting PTKcl. L74V aFtyK0￿e to d￿l￿eS in England & Wa￿5 requir•s the TrL$8le88 to epao financial stslem•nts foreach financial yearvthith give 8 trn and fw'r view of tho state of allw'r8 of lh8 thanty and of the irvyr#ng r•8ource8 and applthon of resources of thanty kn that p￿.&￿. In proparing th•88 flnancaal Stater￿ts, th• Tru#tee8 are requlred to.. bl observe tho rrothod• and pri￿￿8$ th the ChariUti$ SORP 2019 IFRS1021,' dl state whther appI￿able SLY￿ardS h8v8 been fdl¢Md, sutpct to •)y ntsiial (knpartuw th8dc4•d arAt ex[4￿￿3 In the financi •) prnpar• tr fi￿¢1•1 Statem￿ on the conc•m ba$1$ unl•88 rt 50 Ingwcpriate to yesum thatth8 thrity vlll conlinue in op•ration. Th• TrLt••• •r• v••p•n•ll>l• k4r k••wnq aooypJntlry dlodooo th r•awne a￿1racY at any b'm• the financyal p08ition oflhe thaTity and enable them to •nSLn th•t the fin￿Cial 8lat•monts CoM￿Y wth th8 Statement of R•commerthd knLntirg Pr¥ctice.' AcCo￿￿'r￿j and Reporting by Charib"e8 (SORP 2019) UK Standard8, th• ChaTrties Act 2011 and thè CtrMrib/s Thy are also rgsp)n8fjbL for safeguayding the assats ofthe chanty and her￿fOr￿kIng reasonable staps forthe preventlon and detecon of fraud and ¢)Ihef iffegularities. The financial 8lat•rronts love been prepared In accordanee wlih th• a(￿Unting set out in the notes tothg finan¢aal statement$ and comp the Ch8rlty'$ conslibjtson, th• Chanlie8 Acl 2011 and tha Statsment of R•¢ommentsJ Prth.. AC￿Unts.￿9 and Rwting by Chaiib"e$ ap￿iCabl8 to charities preparing theirfinantxl statements in OCAxJrtIar￿ wth tha Finanrial StarJard in tho UK ar*J Rap￿1¢ ￿ Irdand {FRS 1021 issued in Octob8r 2019. Sign•d.' onbahaif of theT . /0 P8ge 4

Independent examiner's report to the Trustees of the Penchant Foundation

I report to the Trustees on my examination of the accounts of the charity for the year ended 30 June 2025, which are set out on pages 1 to 14.

Responsibilities and basis of report

As the Charity’s Trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

SIGN Signed:

Reza Motazedi FCA 7 Bell Yard London WC2A 2JR

Date: 24/11/2025

Page 5

The Penchant Foundation

Statement of Financial Activities For the year ended 30 June 2025

2025
Expendable
Endowment
Funds
Unrestricted
Income
Funds
Note
£
£
Income and endowments:
Investment income
3
-
99,309
Other income
6
-
36,145
Total income
-
135,454
Expenditure on:
Costs of raising funds
4
31,243
-
Charitable activities
5
-
259,475
Total expenditure
31,243
259,475
Net income/(expenditure) before
net gains/(losses) on investments
(31,243)
(124,021)
Net gains/(losses) on investment
335,419
-
Net income/(expenditure)
304,176
(124,021)
Transfer between funds
(124,021)
124,021
Net movement in funds
180,155
-
Reconciliation of funds
Total funds brought forward
5,464,275
-
Total funds carried forward
5,644,430
-
Total
£
99,309
36,145
135,454
31,243
259,475
290,718
(155,264)
335,419
180,155
-
180,155
5,464,275
5,644,430
2024
Total
£
80.749
-
80,749
28,108
185,724
213,832
(133,083)
487,913
354,830
-
354,830
5,109,445
5,464,275

Page 6

The Penchant Foundation Balance sheet As at 30 Jun• 2025 2026 Exp•nd•l)l• Unr•strl¢tod Endo￿nI Incom Fund¥ Fund• 2024 T¢)t•l T¢Xal Flx•d M••ts Inve81ment8 01 market value 5.451.707 5,451,707 5,267,844 Currnnt aM•ts Investment managttr8' bank accounts NatWo81 bank accounts 113.432 79.291 113,432 88.491 105,678 97.953 7200 192,723 7200 199.923 203.831 Llablllti Cr•dltor•: •mount• lalllng du• wllhln one y•ar A¢counlanl8' charges Independent •xamIn￿, remun•ration 5.41)0 1.800 1.800 1.800 7.200 7,200 Not curr•nt •u•tsllllabllltlv) 192,723 192.723 I￿.431 M•t •v•t• 5.644.430 s,644,430 5,484,275 Allo¢atlon olth• ¢harlty n•t ••sgts: The net assets arg held for the Various fund8 a8 fc4I(y￿..- Exp•ndabla ondowm•nt fund• u￿r￿trIcted fvnd• 10 10 5.844,430 5.644.430 5,484.275 Tol•1 charlty fund• 5.644.430 S.644.430 5,484,275 Approved ty the Trustee8 on..... .... .. .. .... and signed on Iheir behalf ty Twstee Pagè 7

The Penchant Foundation

Statement of Cash Flows

for the year ended 30 June 2025

Note
Net cash used in operating activities
8
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the reporting world
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Representing:
Investment managers’ accounts
Charity’s bank account
Total
Funds
2025
£
(254,573)
99,309
918,448
(766,892)
(3708)
(3,708)
203,631
199,923
113,432
86,491
199,923
Total
Funds
2024
£
(212,632)
80,749
757,595
(784,879)
(159,167)
(159,167)
362,798
203,631
105.678
97,953
203,631

Page 8

The Penchant Foundation

Notes to the accounts

for the year ended 30 June 2025

1. Accounting policies

a) Basis of preparation

The accounts have been prepared in accordance with FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102"), 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 the Republic of Ireland issued in October 2019; the Charities Act 2011 and UK Generally Accepted Practice. The Charity constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared to give a 'true and fair' view and have therefore necessarily departed from the extant Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Statement of Recommended Practice: Accounting and Reporting by Charities applicable to charities preparing their financial statements in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, rather than the Statement of Recommended Practice: Accounting and Reporting by Charities effective from 1 April 2005, which has since been withdrawn.

The accounts are prepared in Sterling, which is the functional currency. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention.

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

The endowment funds represent the original capital gift to the charity, plus subsequent additions to the endowment, less amounts which have been transferred to the unrestricted funds for distribution. The Trustees are entitled to use the endowment in furtherance of the general objectives of the charity at their discretion, and they transfer funds from the endowment to the unrestricted funds as required. Any gifts made to the charity as additions to the endowment are treated as expendable endowment unless otherwise directed by the donor.

d) Grants payable

Grants are included in the accounts on an accruals basis, and unconditional grant commitments payable within one year after the balance sheet date are included in the Statement of Financial Activities. Grants which have been promised subject to satisfactory performance are not included until payable.

e) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

g) Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of transaction. All differences are taken to the Statement of Financial Activities.

Page 9

The Penchant Foundation

Notes to the accounts

for the year ended 30 June 2025

1. Accounting policies (continued)

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:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Debtors

Trade and other debtors are recognized at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid after taking account of any discounts offered.

j) Cash and cash equivalents

Cash and cash equivalents include 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.

k) Creditors and provisions

Creditors and provisions are recognized when 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 recognized at their settlement amount after allowing for any discounts due.

l) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

2. Fixed asset investments

Marketvalueat 30 June 2024
Additions
Disposals
Net investment gains/ (losses)
Market value at 30 June 2025
Historical cost at 30 June 2025
estment income
Dividends and interest received
2025
£
5,267,844
766,892
(918,448)
335,419
5,451,707
4,410,564
2025
£
99,309
2024
£
4,752,647
784,879
(757,595)
487,913
5,267,844
4,626,496
2024
£
80,749

3. Investment income

Page 10

The Penchant Foundation

Notes to the accounts

for the year ended 30 June 2025

4. Cost of raising funds

Investment management charges
The investment managementcostsare all attributable toendowmentfunds.
5. Charitable activities
Charitable activities
The breakdown of charitable activities is as follow:
Grants–note 9
Governance costs
Accountants’ charges
Independent Examination charges
2025
£
31,243
2025
£
259,475
2025
£
250,820
2025
£
6,855
1,800
8,655
2024
£
28,108
2024
£
185,724
2024
£
176,158
2024
£
8,066
1,500
9,566

The charity undertakes its charitable activities through grant making and awarded grants to a number of institutions in furtherance of its charitable activities.

6. Other income

er income
Donations
Gift Aid
Repayment interest
2025
£
28,885
7,260
-
36,145
2024
£
-
-
-
-

7. Trustees ’ remuneration and expenses

During the year, no Trustees were reimbursed for travel and Trustees meeting expenses. Trustees' remuneration was nil.

Page 11

The Penchant Foundation

Notes to the accounts

for the year ended 30 June 2025

8. Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Deduct interest income shown in investing activities
(Deduct gains)/ add back losses on investments
Increase (decrease) in creditors
Net cash used in operating activities
nts made
Arthur Rank Hospice Charity
Baronets Trust
Birdlife International
BritishTrust for Ornithology
Britten Pears Arts
Cambridge and District CAB
Cambridge Arts Theatre
Centre33
CIWF
Clock Tower Sanctuary
Fanny Basa
Fauna & Flora International
Feeding Families
J Dallaway (Individual)
Makhad Trust
Ora Choir
Orchestra of St.John
Order of St Etheldreda
RSPB
Swandro-Orkney
Table Talk Foundation
Team Dominica
Tee Valley YMCA
UK Men's Sheds Association
University of Cambridge (Archeology)
University of Cambridge (Kettle's Yard)
University of Cambridge (Library Visiting Scholar)
University of Cambridge (Library)
University of Cambridge Fitzwilliam Museum
Vic’s in the community
Waterlife Recovery Trust
Wildlife Trust for Bedfordshire, Cambridgeshire & Northamptonshire
Wolvercote Primary
Young Carers
2025
£
180,155
(99,309)
(335,419)
-
(254,573)
2025
£
40,000
-
31,000
10,000
2,400
40,000
975
25,000
1,000
5,000
-
10,000
3,500
-
5,000
5,000
5,000
2,000
15,000
2,000
1,500
3,000
5,000
1,500
1,800
2,145
-
-
1,500
1,500
15,000
15,000
-
-
250,820
2024
£
354,830
(80,749)
(487,913)
1,200
(212,632)
2024
£
20,000
50
-
3,000
-
975
25,000
5,000
816
10,000
3,500
15,000
5,000
1,000
15,000
-
-
1,500
900
11,775
10,000
10,000
1,500
1,500
15,000
15,000
250
4,392
176,158

9. Grants made

Page 12

The Penchant Foundation

Notes to the accounts

for the year ended 30 June 2025

9. Grants made (continued)

The grants above are categorised as below: 2025 2024
£ £
Biodiversity and Conservation–6 donations 76,000 55,000
Social&Community - 7 donations 42,500 36,615
Overseas Poverty Relief - 1 donation 5,000 5,000
Arts & Culture - 8 donations 16,675 22,477
Education - 9 donations 67,645 37,066
Medical - 3 donation 43,000 20,000
250,820 176,158
nalysis of charitable funds
2025 Expendable Unrestricted Total
Endowment Income Funds
Funds Funds
£ £ £
Analysis of fund movements:
Balance b/fwd 5,464,275 - 5,464,275
Income - 135,454 135,454
Expenditure (31,243) (259,475) (290,718)
Gains/(losses) 335,419 - 335,419
Transfers between funds (124,021) 124,021 -
Fund c/fwd 5,644,430 5,644,430
10
A
nalysis of charitable funds
2025

Page 13

The Penchant Foundation

Notes to the accounts

for the year ended 30 June 2025

10. Analysis of charitable funds (continued)

2024 Expendable Unrestricted Total
Endowment Income Funds
Funds Funds
£ £ £
Analysis of fund movements:
Balance b/fwd 5,109,445 - 5,109,445
Income - 80,749 80,749
Expenditure (28,108) (185,724) (213,832)
Gains/(losses) 487,913 - 487,913
Transfers between funds (104,975) 104,975 -
Fund c/fwd 5,464,275 - 5,464,275

Page 14