LILLY FENICHEL FOUNDATION UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025
LILLY FENICHEL FOUNDATION INDEX TO THE FINANCIAL STATEMENTS for the year ended 31 October 2025 Page Charity Information Trustees, Report 2to5 Statement of Financial Activities Balance Sheet Notes to the Financial Statements 8t011
LILLY FENICHEL FOUNDATION CHARITY INFORMATION for the year ended 31 October 2025 CHARITY NUMBER: 1205185 TRUSTEES: CDZMartin S E Zelenka NRZMartin EHCOX REGISTERED OFFICE: 33 Dents Road London SW116JA ACCOUNTANTS: Dafferns LLP One Eastwood Harry Weston Road Binley Business Park Coventry CV3 2UB BANKERS: C. Hoare & Co 37 Fleet Street London EC4P 4DQ Page 1
LILLY FENICHEL FOUNDATION TRUSTEES, REPORT for the year ended 31 October 2025 The Trustees present their annual report along with the financial statements of the Charity for the year ended 31 October 2025. The Trustees have adopted the provisions of Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities" (FRS 102) in preparing the annual reports and financial statements of the Charity. The financial statements have been prepared in accordan with the accounting policies set out in notes to the accounts and comply with the Charity's goveming document, 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. OBJECTIVES AND ACTIVITIES The LFF'S charitable object is the furtherance of the education of the public in the appreciation of art and the promotion of art, including without limitation in the Abuquerque area in the state of New Mexico, USA, in such ways as shall be exclusively charitable. In practi, the trustees of the LFF intend to meet this object by, for the benefit of the public, protecting and promoting the oeuvre of Lilly Fenichel, a hitherto little-known, but important artist who started her work in the early Abstract Expressionist movement. Its ultimate objective is to make grants to aspiring young artists who share Lilly Fenichel's approach to artistic creativity. Its activities include the cataloguing and safeguarding of the body of arhNorks of Lilly Fenichel it owns, promoting Lilly Fenichel in the art world and making artworks available for selected exhibitions of public and private collections. In order to finance these activities, it partners with suitable galleries and individuals in the sale of a limited number of artworks. Funds permitting, it plans to trace and catalogue the artworks of Lilly Fenichel held by private collectors, which are currently either unknown to it or uncatalogued by it. Success in meeting The LFF'S objectives is, at present, measured by the quality and quantity of the exposure Lilly Fenichel's oeuvre gets in the art world, the extent to which Lilly Fenichel is acknowledged as an important artist of her time (often reflected in the prices buyers pay for her artworks), the sustainability of The LFF'S finances, and ultimately by its ability to make grants to aspiring young artists. It is also measured by the sustainability and suitability of the environment in which it stores its artworks and the completeness and accuracy of its catalogue. The trustees have regard to the Charity Commission's guidance on public benefit. ACHIEVEMENTS AND PERFORMANCE Lilly Fenichel died at the age of 89 in her adopted home in New Mexico, USA. in 2016, leaving her estate, including her collected artworks, to her three closest living relatives, her first cousins once removed, Charles and Nicholas Zelenka Martin, residents of London, UK and Stephen Zelenka, a resident of Los Angeles, USA. They, in turn, gifted them to the Charity, along with cash as mentioned below. The trustees were delighted that Lilly Fenichel's first solo exhibition since she passed, and her first ever outside the US, took place at the Gazelli Art House in Dover Street Mayfair London between January and April 2025. It featured over 20 pieces from her oeuvre and was entitled 'Against the Grain" A second edition of her catalogue by the same name was published at the same time. Feedback about the exhibition was universally positive and the trustees feel that the exhibition has helped to position Lilly's work in a new light. It was open free of charge to the public. The trustees are hugely grateful to Gazelli Art House for their support. Page 2
LILLY FENICHEL FOUNDATION TRUSTEES, REPORT for the year ended 31 October 2025 ACHIEVEMENTS AND PERFORMANCE CONTINUED One of Lilly's pieces is travelling to five different destinations in the US in a travelling exhibition drawn from the collection of Christian Levett between October 2025 and April 2027. It will travel to important venues in Wichita, Williamsburg, Louisville, Grinnel and Mobile. All exhibitions are open to the public. The trustees are grateful to Christian Levett, the organisers and all the venues for making this happen. Another piece is in demand for a future major exhibition on the West Coast USA. In March 2026 the Charity engaged a consultant in New Mexico to advise on storage, catsloguing and how to raise Lilly Fenichel's profile in the USA. We have asked also asked for her advice on developing relationships with selected public galleries in the USA with a view to furthering the charity's objective of promoting art and art education. Her report is expected in summer 2026. PLANS FOR FUTURE YEARS The trustees intend to consider and, where appropriate and affordable, to pursue some of the initiatives that emerge from the consultant's report referred to above. The trustees are in discussions which they hope will result in more extensive display of Lilly's work in New York, a very important venue for the art world. In future, financing permitting, it is the trustees, intention to move some of the collection to a specialist art facility, where it can be insured, and to make financial grants to aspiring young artists as mentioned above. FINANCIAL REVIEW Shortly after its inception, The LLF was endowed by its founders with approximately $94,000 in cash and a collection of Lilly Fenichel's artworks, valued for probate purposes in 2017 at about $1.5m. The sale of the artwork made in the year to 31st October 2025 was at a pri above its probate value and the proceeds nearly covered the yearfs expenditure. Cash reserves are at 8 yearfs worth of recurring expenditure. The trustees therefore consider The LFF to be financially sound. However, they are mindful that recurring costs are likely to increase and that income from sales is unpredictsble. The trustees have considered the principal non-financial risks to the trust. These are believed to relate to the storage, maintenance, access and transport ofthe artworks in New Mexico. These arrangements are considered sub-optimal, partly because of New Mexico's remoteness from the trustees and, as a result, the trust's reliance on its local unpaid, volunteer representative in New Mexico. In order to mitigate this risk, the trustees have contracted a part-time consultant in New Mexico. They are also sub-optimal, because the storage facility does not meet the standards required for the trust to be able to insure the artworks. The trustees have researched the cost of relocating the artworks to a specialist art storage unit and insuring them. They have concluded that the trust's financial position is not sufficiently strong to be able to afford such a move yet but will continue to review the situation at least annually and make the move when affordable. Total expenditure of $19,089 was related to the support costs for the Charity. RESERVES POLICY The operating costs of the Charity are low and consequently the Trustees consider there is no requirement to maintain a specific level of funds to meet these in fvture years. All retained funds are therefore available for distribution. Page 3
LILLY FENICHEL FOUNDATION TRUSTEES, REPORT for the year ended 31 October 2025 STRUCTURE GOVERNANCE AND MANAGEMENT Lilly Fenichel Foundation is a Charitable Incorporated Organisation governed by its constitution dated 12 October 2023. The Trustees who served during the year and since the year end are set out on page 1. The founding trustees were the three principal beneficiaries of Lilly Fenichel's will: Charles Zelenka Martin; Nicholas Zelenka Martin and Stephen Zelenka. None have any professional experience of the art world, but all have useful general management experience. Emma Cox, a UK solicitor who specialises in charity law, was appointed during the prior year as an independent, non-family trustee, with valuable relevant professional experience. In due course, the trustees would like to appoint another non-family trustee with professional management experience from the Art world, preferably based in the USA. Decisions are made collectively by the trustees. Major risks have been reviewed and policies established to manage those risks. as set out in the Financial Review. The LFF has no employees but relies on the help and efforts of two volunteer associates who are based in the USA. One is responsible for the storage, transport and cataloguing of the artworks and is based in New Mexico. The other looks after the website and art world public relations in the USA, based in LA. The trustees would like to record their thanks for the work they do for the LFF RISK MANAGEMENT The Trustees have considered the major risks to which the Charity is exposed and have reviewed those risks and established systems and prOdureS to manage them. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees 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). The 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 state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP 2019 (FRS 102); make judgments and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 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, the Charity (Accounts and Reports) Regulations 2008 and Trust Deed. 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. Page 4
LILLY FENICHEL FOUNDATION TRUSTEES, REPORT r ended 31 October 2025 Approved by the Trustees on . /cfj7°T21,,,.,,,.,,,,,, and ne N. R. Z. Martin- Trustee Page 5
LILLY FENICHEL FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) for the year ended 31 October 2025 Unrestricted Fund 2025 Total 2024 Total Note Income from: Donations and legacies Interest receivable Gain on disposal of heritage assets 1,529,651 214 17,759 214 17,759 18,863 Total Income 17,973 17,973 1,548,515 Expenditure on: Charitable activities 19.089 19,089 14,136 Total Expenditure 19.089 19,089 14,136 Net incomel(expenditure) and movement in funds (1,116) (1,116) 1,534,379 Reconciliation of funds: Total funds brought forward 1,534,379 1,534,379 Total funds carried forward 1,533,263 1,533,263 1,534,379 The statement of financial activities includes all gains and losses recognised during the year. The notes on pages 8 to 11 fonn part of these financial statements Page 6
LILLY FENICHEL FOUNDATION BALANCE SHEET at 31 October 2025 2025 2024 Notes FIXED ASSETS Heritage assets 1.411,182 1,410,155 1,411,182 1,410,155 CURRENT ASSETS Debtors Cash at bank and in hand 495 123,756 44,642 84,237 124,251 128,879 CREDITORS= Amount falling due within one year- Accrued expenses Other creditors (1.342) 828 (3,857) 798 NET CURRENT ASSETS / (LIABILITIES) 122,081 124,224 NET ASSETS 1,533,263 1,534,379 Charity Funds: Unrestricted funds 1,533,263 1,534,379 TOTAL FUNDS 10 1,533,263 1,534,379 The financial state ents have approved and authorised for issue by the Board of Trustees on and signed on its behalf by: N. R. Z. Martin Trustee The notes on pages 8 to 11 form part of these financial statements Page 7
LILLY FENICHEL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 October 2025 ACCOUNTING POLICIES The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: a) Basis of preparation Lilly Fenichel Foundation is a Charitable Incorporated Organisation in England registered on 12 October 2023. The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charity's operations and principal activities are the furtherance of public education in the appreciation and promotion of art by the late Lilly Fenichel. The Charity constitutes a public benefit entity under FRS102. The financial statements have been prepared in accordance with applicable accounting standards, the Charities Act 2011 and the Statement of Recommended Practice 'Accounting and Reporting by Charities" issued in October 2019 (SORP (FRS102)). The financial statements have been prepared to give a "true and fair. view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a "true and fair view" This departure has involved following the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are presented in US dollars which is the functional currency of the Charity, transactions are rounded to the nearest $. The significant accounting policies applied in the preparations of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. b) Income recognition All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income, the amount can be measured reliably, and it is probable that it will be received. The deemed value of artwork gifted to the Charity is recognised as donation income at the date the right of ownership has been transferred. Income is recognised on the sale of artwork, once ownership of the artwork has been transferred. Income is recognised on artwork held under consignment arrangement only when the artwork has been sold to a third party by the consignee. c) Expenditure recognition All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs related to the category. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. Page 8
LILLY FENICHEL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 October 2025 1. ACCOUNTING POLICIES (CONTINUED) d) Heritage Assets Heritage assets are initially accounted for at deemed cost. No heritage assets have been revalued nor depreciated due to the perceived infinite economic life of these heritage assets, which consist solely of artwork. The Lilly Fenichel Foundation has approximately 600 art pieces, which were gifted by the estate of Lilly Fenichel on incorporation of the Charity. The art collection is held in support of the Charity's primary objective of advancing arts and art education by promoting the oeuvre of Lilly Fenichel widely, by placing selected art pieces with museums and galleries and private collections. The art collection is held in New Mexico. Further information on the collection is given in Note 6 of the accounts. e) Financial Instruments Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. fj Unrestricted Funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. g) Foreign currencies Assets and liabilities in Sterling are translated to the functional currency of US Dollars, at the rates of exchange ruling at the balance sheet date. Transactions in Sterling are translated into US Dollars at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. h) Going concern The financial statements have been prepared on a going concem basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern. DONATIONS AND LEGACIES 2025 2024 Cash donation Donated heritage assets Gift aid income receivable 93,717 1,412,505 23,429 1,529,651 EXPENDITURE ON CHARITABLE ACTIVITIES 2025 2024 Storage of artwork Website and IT Transportation of artwork Sundry expenses Bank charges Foreign exchange (gain)/loss Audit and accountancy (govemance) Consultancy fees 9,658 814 3,924 1.195 3,941 791 197 231 3,857 2,621 893 (1,161) 2,174 4,090 19,089 14,136 Page 9
LILLY FENICHEL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 October 2025 AUDITORS REMUNERATION In 2024, auditorfs remuneration amounted to an audit fee of $3,214 and other services of $643. The charity was not subject to audit in 2025. EMPLOYEE AND TRUSTEE REMUNERATION AND EXPENSES The Charity had no employees during the year. No trustee or persons connected with Trustees received any remuneration from the Charity during the year. No Trustees received reimbursement of expenses from the Charity in 2024 or 2025. RECONCILIATION OF HERITAGE ASSErs Artwork Total Assets Cost 31 October 2024 Additions Disposals Cost at 31 October 2025 1,410,155 3,327 2,300 1,411,182 1,410,155 3,327 2,300 1,411,182 The initial collection of 638 paintings, less those since disposed, is reported in the Balance Sheet at deemed cost, being the probate valuation of the paintings. The valuation assessment was performed in 2017 by Appraisal & Connoisseur Associates, an International Society of Appraisers accredited appraisal firm based in New Mexico, USA. Subsequent additions are reported at cost, inclusive of associated costs of acquisition. The heritage assets have not been depreciated, as the assets are perceived to have an indefinite useful life. FINANCIAL SUMMARY OF HERITAGE ASSET TRANSACTIONS 2025 2024 Purchases Paintings 3,327 Donations Paintings 1,412,505 TOTAL ADDITIONS 3,327 1,412,505 Dis osal of Paintin Carrying value 2,300 2,350 Sales proceeds 20,059 21,213 DEBTORS 2025 2024 Proceeds receivable for sale of artwork Gift aid receivable Prepayments Other debtors 21,213 23,429 434 61 495 44,642 Page 10
LILLY FENICHEL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 October 2025 UNRESTRICTED FUNDS Analysis of movements in unrestricted funds Balance 31 October 2024 Income transfers and ains enditure transfers and losses Balance 31 October 2025 Unrestricted 1,534,379 17,973 (1g,08g) 1,533,263 1,534,379 17,973 19,089 1,533,263 10. ANALYSIS OF NET ASSETS BETWEEN FUNDS Analysis of net assets between funds Tan Fixed Assets Net Current Assets Total Unrestricted 1,411,182 122,081 1,533,263 1,411,182 122,081 1,533,263 11. RELATED PARTY TRANSACTIONS In the prior year, Trustees C. Martin and N. Martin gifted the Charity a cash sum of $93,757. In addition, they along with S. Zelenka, donated the 638 pieces of artwork they had inherited from the estate of Lilly Fenichel. There were no transactions with related parties in 2025. 12. CONTROLLING PARTY The Charity is under the control of its Trustees. Page 11