2020-12-31-accounts

Trust for London

Annual Report and Consolidated Financial Statements for the Year ended 31 December 2020

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Registered Charity No. 205629

4 Chiswell Street London EC1Y 4UP

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Contents

Chair’s foreword
The Trustee’s Annual Report	pages 1 to 17
Independent Auditor’s Report	pages 18 - 21
Consolidated Statement of Financial Activities	page 22
Balance Sheets	page 23
Consolidated Statement of Cash Flows	page 24
Notes forming part of the accounts	pages 25 - 38
Five Year Summary	page 39
History	pages 40 - 41
Trustees, Co-opted Members, Ofcers and Advisers	pages 42 - 43

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Chair’s foreword

2020 was an immensely challenging year for everyone. The impact of the pandemic on London has been profound and the economic and health burdens have not been shouldered equally. COVID-19 has put a spotlight on the economic insecurity that many in our city live with and brought conversations about poverty to the fore.

Responding to the impact of the pandemic on London’s low-income communities has been a major priority in our funding. We have been working closely with our grantees as well as statutory and funder partners to coordinate our response to COVID-19. This has included contributing £1.5 million to the London Community Response Fund to support groups responding to the needs of communities affected by the pandemic.

Alongside our emergency COVID-19 funding, we also kept delivering against our main, fiveyear funding strategy. 2020 was its third year, and we continued to provide grant funding in seven areas. In 2020, we distributed £13.7m in grants, a 29% increase from 2019. We also committed £650,000 in social investment to advance our mission. This increase in funding from 2019 was made possible because of the continued strength of our endowment, which at the end of the year was valued at £335m, a rise of over 7% from its valuation at the end of 2019.

During 2020 we continued to invest in our special initiatives, which aim to strengthen the voices of people with lived experience of poverty and disadvantage. This includes the Commission on Social Security, a project led by Experts by Experience to improve the social security system, as well as Strengthening Voices, Realising Rights, an initiative to advance the rights of Deaf and Disabled people. We also progressed Moving on Up, a partnership initiative that seeks greater and more appropriate employment opportunities for young Black men.

We relaunched London’s Poverty Profile, improving user experience, adding new data indicators, and providing new insight and analysis, such as a paper on neighbourhood-level COVID-19 mortality in London. We also continued to place a strong emphasis on funding grassroots organisations; in 2020, of the grants we have data for, 70% of our funding went to organisations with an annual income of less than £1m.

What is next? We have yet to understand the full implications of the pandemic. However, it is clear that more needs to be done to tackle systematic disadvantage faced by certain groups in our city. We also know that rising unemployment, food insecurity, increased debt and the threat of evictions will be major issues in 2021.

The world of philanthropy is also changing. Rightly, more is expected of charitable foundations around transparency and accountability. The sector’s diversity is coming under increasing scrutiny, and through social media, grantees now have a powerful tool to hold funders to account.

I am proud of the Trust’s record on these matters, but we must never be complacent. In the year ahead we must continue to move forward on these issues and ensure that the way we operate exceeds the expectations of our stakeholders.

2021 will be another big year for the Trust. Sadly, we will say goodbye to our longstanding Chief Executive, Bharat Mehta. His legacy will be felt for many years to come. Following an external recruitment process, I am delighted that Bharat will be replaced by Manny Hothi, the Trust’s current Director of Policy. Manny will take up the position from 1 July 2021.

As we look forward with new leadership, we will continue to ask ourselves what more we can do to tackle poverty and inequality in all its forms, what more we can do to tackle systemic disadvantage, and what more we can do to bring together the people of this city in the spirit of progress.

Jeff Hayes

Chair of Trustees

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

The Trustee’s Annual Report

1. Overview

The overall objectives of the Trust are to tackle poverty in London through the Central Fund and to support the Church of England within London through the City Church Fund. This was the third year of the Central Fund’s 2018-2022 five-year funding programme. The number, size and destination of the grants awarded reflect that policy.

The financial position of the Trust was such that the endowment fund at the year end stood at £363 million, an increase of £21 million over the value at the end of 2019 following significant improvement in the stock market during the year.

The history of the Trust is given at pages 40 and 41 of this report.

2. Structure, governance and management

2.1 Structure

The trustee is Trust for London Trustee which exists solely for the purpose of carrying out the duties of the trustee and associated activities of Trust for London. All financial transactions are reported by Trust for London.

These consolidated accounts incorporate the entities shown within the dotted lines. Trust for London also has a 30.22% equity holding in the Social Justice and Human Rights Centre Limited.

2.2 Trust for London funds

Trust for London is made up of three funds. The Central Fund which aims to tackle poverty and inequality, the City Church Fund for the advancement of religion and the Trust for London Common Investment Fund, established to pool the investment assets of the other two funds.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

2.3 Trustee

Trust for London Trustee, the corporate trustee of the charity, has up to 18 Board member “trustees” who are normally appointed by a variety of nominating bodies or by itself. For its own appointments, a range of recruitment processes, including advertisement, are used, building on the trustee skills audit.

All the trustees are appointed on a five-year term. The administrative details regarding the Trustees are provided at page 42 of this report.

A full induction programme is provided for all new trustees. Both face-to-face where possible or electronic meetings and written information are provided and training opportunities are offered on an ongoing basis.

2.4 Key management personnel remuneration

The trustees consider the Board of trustees and the senior management team as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. See note 9.

All trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in notes 9 and 24 to the accounts. Trustees are required to disclose all relevant interests and withdraw from decisions where a conflict of interest arises in accordance with policy.

2.5 Governance

The Board believes that it is best placed to achieve its mission and objectives if it has effective, accountable and transparent governance structures. It believes that, to a considerable extent, its current practices and thinking already reflect the seven principles of the Charity Governance Code, with the trustees having a clear understanding of the Trust’s organisational purpose and providing strategic leadership in line with the charity’s aims and values.

The Board, which meets quarterly, has ultimate oversight and responsibility for the Trust’s activities but has delegated decision making to Board Committees.

Through the work of the Governance Committee, and by conducting reviews of the Board’s governance arrangements, the Trust aims to ensure an appropriate, and diverse, balance of skills, experience and backgrounds amongst trustees. The Trust believes that effective decision-making is reflected throughout the organisation through a clear system of delegation and robust management and control systems. The Trust intends to continue to apply the Governance Code’s recommended practices to support further improvements in its governance standards therefore creating a culture whereby all involved can work effectively and sustainably to achieve the organisation’s charitable purposes.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

The staff team, currently 23, led by the Chief Executive works for the Trust providing appropriate input into the policy debates, and the means of implementing all the decisions taken. In addition another two are employed by the Bellingham Community Project.

The advisers to the Trust, namely the Solicitors, the Property Investment Advisers, the Property Valuers, the Property Managing Agents, the Investment Managers and the Auditors, have an important role in raising issues and in some cases working with the staff on preliminary policy papers. The administrative details of the Trust’s advisers and key management personnel are provided on page 43 of this report.

2.6 Risk management

The Trust has a formal risk management process to assess business risks and implement risk management strategies in the context of the Trust’s strategic plan for 2018-2022. This involves identifying the types of risks it faces, categorising them in terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks.

The two most significant risks identified by the Trust and the plans and strategies for tackling these were:-

• 1) Adverse public and media comment in part due to increased working with commissioning bodies not under Trust’s direct control and from supporting “riskier” activities. The Trust strives to work with propriety at all times and seeks proper legal advice with regards to riskier areas of work. It has developed a communications strategy to ensure consistent messaging and undertaken crisis media training.

• 2) A crash in the financial and property markets and/or excessive volatility in the markets . The Trust uses asset allocation to spread portfolio risk and tasks the individual asset committees to assess risk. Securing good quality advice is also seen as a useful step towards minimising risk.

As part of the process the Trust reviews its existing internal controls, and ongoing work continues by all the working committees entrusted with oversight of control functions to ensure their adequacy.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

2.7 Covid-19

The Board and Senior Management Team have been regularly monitoring and reporting on the potential impact of Covid-19 on the organisation and its stakeholders since March 2020, and have been taking the appropriate action to mitigate as far as possible any immediate and ongoing financial and operational impact. The areas under review are formally included within the risk management process and include the impact on grantees and subsidiary companies, the impact on cash flow, the protection of the endowment fund and the care and safety of staff in following Government regulations relating to the pandemic.

Two interim desktop property valuations were carried out ahead of the year-end valuation and more frequent investment valuations were sought. Expected rental and dividend incomes from property and equity managers have been scrutinised monthly. The endowment fund at the year end showed a 6% gain over the previous year. The Board continues to monitor investment performance regularly.

Asset Allocation Committee met monthly until July, reviewed rolling twelve month cashflow forecasts and arranged a borrowing facility to ensure the Trust would have sufficient cash flow without realising equity and property at below market value.

All staff were able to work remotely ensuring that grants continued to be paid including £1.5 million to London Community Response Fund, the COVID relief fund.

As such, the Board considers that all appropriate steps have been taken to effectively manage the impact of Covid-19.

3 Objectives and activities for the public benefit

3.1 Core objects

The objects of the Central Fund are any charitable purposes, other than the advancement of religion, which are directed to the benefit of poor inhabitants in the area of benefit.

The Central Fund, through its grant making, aims to reduce poverty and inequality in London. It does this by funding the voluntary and community sector and others, as well as by using its own expertise and knowledge to support work that tackles poverty and its root causes.

The Trust considers that the relief and prevention of poverty is of public benefit to all.

The objects of the City Church Fund are the advancement of religion for the benefit of the public in accordance with the doctrines of the Church of England; the repair, restoration and maintenance or preservation of churches; the augmentation of clerical stipends; and the giving of theological instruction to persons preparing for Holy Orders.

The purposes to which the City Church Fund has to be applied are essentially religious. The monies have to be distributed in the following proportions: one third is given to the City churches within the City of London and two thirds to the six Dioceses of the Church of England, in whole or in part within the area of benefit, in such proportions as are determined by the Church Commissioners.

The Trustee confirms that it has had regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

3.2 Strategies employed to achieve objectives

The three key strategies employed to achieve these objectives are: -

i) Investment strategy

Use of permanent endowment

The Trust is authorised by the Charity Commission to pursue a total return approach to investment for the Trust’s permanent endowment. The total return approach enables it to exercise more effectively its duty to be even-handed as between present and future beneficiaries by allowing it to supplement its investment income with a proportion of the capital gains that have accumulated. The Trust’s 1942 Valuation of the Estate provided the initial value of the trust for investment. Detail of the operation of total return is given in note 5 to the accounts. The Trust is therefore able to focus on investments which are expected to give good performance in terms of their overall return. Social, ethical and environmental factors are considered when setting investment strategy. Financial markets are subject to volatility in the short run and the aim of this strategy is to keep the value of the endowment and the income available for grant making constant in real terms using an appropriate inflation index as the benchmark. The chart that follows shows the progress of the endowment against inflation since 2002.

----- Start of picture text -----
380
Trust for London - Common investment Fund Endowment
330 value 2002 to 2020 compared to inflation corridors
common investment fund endowment values
upper corridor 20%
280 endowment plus RPI from 2002
lower corridor 20%
endowment plus RPI since 1942
230
180
130
802002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
----- End of picture text -----

Use of expendable endowment

The funds within the expendable endowment of the Central Fund are not subject to the total return order but with the agreement of the Charity Commission remain expendable.

To enable the Trust to provide a regular and increasing stream of income for the Trust’s beneficiaries, the Trust has agreed that in addition to spending the income derived from the expendable endowment, it will also as required expend a proportion of the endowment fund itself.

The Trust also uses its expendable endowment to fund mission related investments.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

ii) Grant making strategy

The performance of the Central Fund is usually reviewed against its grant objectives every five years and its priorities are revised accordingly to ensure that it reflects the charity’s objects and thereby advances public benefit. Each year an extensive review is also undertaken to identify gaps in the programme areas and steps taken to address these and to reflect on learning from the work. It is currently intended to continue making fewer but larger grants with the intention that those grants have more impact and to encourage greater engagement in all aspects of the work by people with first-hand experience of the issues being addressed.

The Trust operates through a significant open programme and through the funding of special initiatives. The open programme is available to any eligible applicant whilst the special initiatives are designed to achieve greater impact on poverty and supporting disadvantaged communities in London through a more targeted approach. This latter approach leads to the Trust becoming more ‘engaged’ as a funder and in ‘adding value’. The many and varied ways in which this has been achieved include having a greater potential to influence policy makers, government and other external bodies and a greater capacity to get relevant people around the table – through our capacity to act as an ‘honest broker’ due to our independence. The Trust produces an Annual Review at the following link - https://www.trustforlondon.org.uk/publications/annualreview2020 to enable it to communicate information about individual grants and also the wider themes that underpin its grant-making to stakeholders and interested parties.

iii) Resources strategy

The Trust uses its resources in ways other than grant making such as the provision of facilities for charitable purposes and in direct charitable work e.g. London’s Poverty Profile.

3.3 Activities

The major activities in the year were: -

• a) the management of investment and property portfolios

• b) the making of grants for the relief of poverty

• c) the provision of facilities at Resource for London and Bellingham (see 4 iii) a & b)

The City Church Fund grants were administered in accordance with the core objects and on the instructions of the Church Commissioners.

There are additional disclosures required concerning new fundraising regulations. The charity is aware of the regulations and, as it does not undertake fundraising activity, has nothing to disclose under the provisions of section 13 of the Charities (Protection and Social Investment) Act 2016.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

4 Financial review and achievements in the year

i) Income and investment performance

Income from investment properties increased to £4.6 million (2019 - £4.2 million) and represented 45% of income. Dividends, alternative fund income and interest receivable were 15% lower than in 2019 decreasing from £4.4 million to £3.7 million.

Investment performance is driven by asset allocation decisions, the state of the investment markets and the investment manager performance. The total returns by investment asset class (net of fees except property) are set out in the table below:

----- Start of picture text -----
Sector Common Investment Fund Central Fund
Total return 2020 Total return 2020
% %
Direct property portfolio 12.8 -
Global equities portfolios 18.6 9.8
Alternative funds portfolio 7.6 10.4
Cash and near cash portfolio 0.1 -
Total portfolio 14.4 10.0
----- End of picture text -----

Property Investments

The Trust has gained fund value with the Common Investment Fund property portfolio showing a total return of 12.8% in 2020 despite COVID.

The investment property portfolio is shown in the accounts at a fair value (market value) of £154 million (2019: £126 million). This recognises gains on an agreed sale for £27.35 million that completed in March 2021. A significant investment in the year was the acquisition of a property in Cheapside, London at £11.5m.

The steps the Trust has taken to sell non-performing assets and restructure its property portfolio generally, to work risk within the portfolio and to increase the consistency of its rental income cash flows continue to lead to a better than benchmark performance by the portfolio.

BH2 manage the direct property portfolio on a non-discretionary basis and were set targets to improve and add to the portfolio within Central London; to increase the income yield and to de-risk the portfolio allowing other potentially riskier properties to be acquired within the existing risk management profile in terms of the lease maturities, exposure to voids and concentrated exposure to individual tenants. Their performance is included in the table above.

Loans

A loan facility was negotiated through Cazenove Capital and an amount of £2 million drawn down which remains in place at the end of the year. Against a back drop of COVID uncertainty, it was seen as a useful tool in ensuring the Trust could meet future commitments without having to sell risk assets. This necessitated loan assets being moved to the Central and City Church funds.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Listed Investments

From a starting value of £178 million and in variable market conditions, together with the sale of one of the global equity portfolios for £24 million, the value of the portfolio of alternative assets and global and emerging market equities within the Common Investment Fund permanent endowment ended the year at £157 million, after having had £2 million of net funds added.

The Central Fund endowment ended the year at £34.3 million after transfers in of £11.0 million from the Common Investment Fund (2019: £17.8 million).

The City Church Fund endowment ended the year at £6.9 million after transfers in of £7.1 million from the Common Investment Fund.

The global and emerging market equities managers are tasked to run actively managed portfolios for the Common Investment Fund on a discretionary basis with a mandate to outperform RPI by 4% net of fees. The alternative funds manager is tasked to outperform LIBOR plus 4% net of fees.

Social investments

The Trust committed to invest £0.65 million from the Central Fund expendable endowment in three social investments during the year. Three further investments totalling £1.75 million were agreed in principle. The total under management in Mission Related Investments at the year end was £4.5 million, as shown in note 11 to the accounts under mission related investments.

During the year Trustees established two key aims for the Trust’s social investment strategy:

1. To use concessionary social investment to help move frontline organisations and enterprises that are tackling poverty and inequality towards longer-term sustainability.

2. To continue to demonstrate that impact investments can offer good financial returns whilst also achieving positive social outcomes.

The building occupied by Resource for London, the Trust’s subsidiary, in the Holloway Road is shown under fixed assets. The Resource Centre is also considered as a social investment by Trust for London.

ii) Grants and grants related funding payable

Total grants payable in the year, including grants related funding and support and governance costs, were £23.2 million (2019: £18.5 million). Of this amount £15.4 million (2019: £12.0 million) was payable from the Central Fund and £7.8 million (2019: 6.5 million) was payable from the City Church Fund as detailed in note 8.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

a) Grants made from the Central Fund

2020 was the third year of the five-year funding programme during which the Trust was distributing grants to tackle poverty and inequality in London with the following priorities: Good Homes and Neighbourhoods, Better Work, Decent Living Standards, Pathways to Settlement, Shared Wealth, Stronger Voices and Connected Communities (small groups).

The beneficiaries of our grant-making programme are ultimately the poor of London and those at risk of falling into poverty.

Grants receivable from other foundations and stakeholders have enhanced our own grant-making on shared areas of interest. These have included joint initiatives such as the Citizenship and Integration Initiative (Unbound Philanthropy, Paul Hamlyn Foundation and Pears Foundation), Strengthening Voice, Realising Rights (City Bridge Trust) and the London Housing Panel (GLA), whilst others have been for re-granting as part of our programme areas. In 2020 these totalled £690k (2019: £45k) (see notes 3 and 20).

In total 227 grants (2019: 128) were made to charitable organisations working in the field of prevention or relief of poverty in London, in response to our core objectives. Ths included 98 emergency grants in response to COVID.

Significant grants during the year included:

• In collaboration with the London Community Response Fund, awarding £1.8m in response to the impact of Covid 19 on communities in London.

• £1.5m grant to the Justice Collaboration for work to increase provision of immigration advice in London, and improvements to referrals and coordination of advice in this sector.

• A grant of £195k to the Social Market Foundation for a new flagship programme on business accountability for poverty in London.

• Three grants totalling £341k for the second phase of Strengthening Voice, Realising Rights Initiative. This was towards policy and campaigning work to improve the rights of Deaf and disabled people.

We published ourselves, or by providing funding to organisations, 36 reports during the year including:

• Crisis in the Capital: how to protect low paid workers and deliver better work in London, Learning and Work Institute

• Victimisation and fear of crime in the gig economy, The Police Foundation

• The geographic impact of the pandemic on household spending, The Institute for Fiscal Studies

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

During the year we funded several policy and research projects that will produce findings in 2021, including a new cross-party commission that will look at the future of social security after the pandemic, a study into inequality in the experience of home-working during the pandemic, and research into how measures to regulate the private rented sector are affecting the market.

We had significant media coverage over the year in outlets such as the BBC, Guardian, and the Times. Our Twitter following increased by 11.5%. There were also 280,000 visitors to our website, down from 328,000 in 2019, mainly due to decreases in visitors to our page on the London Living Wage.

Our funding plus programme continued to provide support on advice services qualifications, outcome and impact training, and media training.

We also relaunched London’s Poverty Profile in April 2020, which contains over 100 indicators on poverty and inequality. The launch marked a shift to a new approach, where indicators will be updated much more frequently, reports will be released throughout the year, and new, innovative data sources will be incorporated.

The £476,058 that was unspent on Central Fund grants (2019: £468,931) will be carried forward to 2021 and this is reflected as restricted funds in the balance sheet.

An analysis of grants made from the Central Fund in 2020 other than that to Bellingham Community Project is shown in the chart below:

FUNDING PROGRAMMES SUPPORTED (by amount awarded)

----- Start of picture text -----
Good Homes and Neighbourhoods 8%
Better work 19%
Decent living standards 19%
Pathways to Settlement 25%
Stronger Voices 13%
Connected Communities 12%
Exceptional 1%
Trustees Distribution Fund 0%
Grants Related Funding (GRF) 3%
----- End of picture text -----

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Grants analysis and policies

A separate publication ‘Funding List 2020’ http://www.trustforlondon.org.uk/funding/ other-funding/ gives further details of every grant made from the Central Fund. Our grant policies are detailed in our current ‘Funding guidelines’ publication https://www.trustforlondon.org.uk/publications/funding-guidelines-2018-22/

It is our view that proper assessment and monitoring of charitable priorities in London cannot be achieved without making visits to all grant applicants be they electronic or face-to-face. Further details are available from our offices and on the website.

A reconciliation of grants and grants related funding authorised shown in the ‘Funding List 2020’ is given below:

List 2020’ is given below:
	2020	2019
	£	£
Grants and grants related funding	13,661,384	10,344,561
Grants written back	(129,510)	(239,903)
Other – Bellingham	(45,000)	(50,000)
	____	_____
Net Central Fund grants (see note 8)	13,486,874	10,054,658

b) Grants made from the City Church Fund

The income from this fund is divided between the Church Commissioners, the six Metropolitan Dioceses and the City Churches Grants Committee in accordance with the Trust’s governing instruments. One third of the income is allocated to the City churches and, after a contribution if requested towards prior charges made by the Church Commissioners, two thirds of the income is payable to the six Dioceses in the proportions listed below:

Diocese	%	£	Diocese	%	£
London	44.37	2,247,660	Rochester	6.18	313,062
Chelmsford	15.30	775,055	Southwark	29.05	1,471,592
Guildford	2.27	114,992	St Albans	2.83	143,360

Details of the grants payable from the City Church Fund are given in note 8.

The recipient bodies of the Church of England use the grants for the purpose of the advancement of religion including the repair, restoration and preservation of churches, the provision of church services, pastoral support and mission. There is more about the use of these grants on the Church of England website

https://www.churchofengland.org/about/leadership-and-governance/city-church-fund

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

iii) Subsidiary charities

a) Resource for London

In 1992 the Trust applied funds to the conversion of a property to house Resource for London at 356 Holloway Road, London N7. This subsidiary is itself a registered charity and is incorporated as a company limited by guarantee. The objective of Resource for London is to provide office space and meeting rooms to London based charitable organisations at an affordable rent.

Ethical Property Company continues to manage the Centre under a fifteen year lease granted in 2017 and works closely with the Board of Resource for London to meet this objective. COVID severely impacted the Centre’s operations and meeting room bookings.

The accounts of Resource for London show a net unrestricted loss of £148k and net restricted income of £3k (2019: total net income £195k). It had total funds at 31 December 2020 of £352k (2019: funds £497k).

The performance of Resource for London is shown in the SOFA within the restricted funds of the Charity. The statutory accounts are available from our offices.

b) Bellingham Community Project

The Trust owns property in Lewisham, London SE6. The Bellingham site comprises a 12 acre playing field. The playing fields are the direct responsibility of the Trust through its subsidiary, Bellingham Community Project Limited (BCP), a registered charity, which runs a leisure and lifestyle centre on the site for the benefit of the local community.

The Centre is run by the LB Lewisham and comes under the day-to-day management of Fusion, their borough-wide sports facilities provider. The principal funders of this £4 million building were Sport England, the Trust itself and LB Lewisham.

The Trust took on in 2016 90% of the costs of BCP’s repair obligations falling to it under the lease with LB Lewisham for the Centre, on the condition that BCP remained responsible for the first 10% of the costs and that BCP transferred £200,000 of its reserves to the Trust for spending on activities that benefitted the residents of Lewisham.

The directors aim is to continue to develop the facilities on the site and they are committed to ensuring that the charges for the facilities will be affordable by the local community.

COVID however has caused the closure of the Centre, activities being put on hold and a change in the delivery of local community support. New activities include food parcel delivery, befriending services and Christmas hamper delivery to isolated elderly.

The accounts of the Project show net incoming resources of £11k (2019: outgoing £73k) after receipt of £45k (2019: £50k) in grants from the Trust. It had total net assets at 31 December 2020 of £2.7 million (2019: £2.7 million).

Bellingham Community Project Management Company Limited, a wholly owned subsidiary of the Project, showed a net loss of £76 (2019: loss £305).

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

The performance of the Project is shown in the SOFA within the restricted funds of the Charity. The statutory accounts are available from our offices.

Both subsidiaries work towards the relief and prevention of poverty and, the Trust considers, provide public benefit. Resource for London is open to all charitable organisations in London and Bellingham Community Project is for the benefit of the people of Bellingham and its surrounding community, irrespective of wealth.

5 The Foundry

The Social Justice and Human Rights Centre Limited (also known as The Foundry) has been an associate entity of the Trust since the equity share holding acquired in a loan/equity swap in June 2017. A Trust representative sits on the Board to represent the Trust’s interests. Based on the 30 September 2020 accounts, the share of the profit and loss attributable to the Trust was £(59)k (2019: £317k) and the carrying value of the Trust’s investment in the Foundry was £3.384 million (2019: £3.443 million).

6 The London Trust

The London Trust is a sister charity of Trust for London but whose accounts are not consolidated with it. It is dormant and it is intended that The London Trust will be wound up in due course. The statutory accounts are available from our offices.

7 Going Concern

Financial resources are well placed to manage the business risks. Our planning processes have taken into account the current economic climate and its potential impact on sources of income. In particular the Board and Senior Management Team have been regularly monitoring and reporting on the potential impact of Covid-19 on the organisation and its stakeholders since March 2020, and have been taking the appropriate action to mitigate as far as possible any immediate and ongoing financial and operational impact. The areas under review are formally included within the risk management process and include the impact on grantees and subsidiary companies, the impact on cash flow, the protection of the endowment fund and the care and safety of staff in following Government regulations relating to the pandemic. The Board has considered budgets and forecasts for the period to December 2021 and are satisfied the funds available within the Trust’s substantial endowment are sufficient to cover existing commitments and planned spending over this period. As such, the Board considers that all appropriate steps have been taken to effectively manage the impact of Covid-19 and that overall there are no material uncertainties that call into doubt the charity’s ability to continue. The accounts have therefore been prepared on a going concern basis.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

8 Reserves policy

It is the Trust’s policy not to maintain any unrestricted reserves as ongoing working capital is available from the endowment under the total return policy adopted. The total value of funds at 31 December 2020 was £368.5 million, of which the endowment stood at £363.4 million with the balance of funds being £4.6 million of restricted funds relating to the Trust’s subsidiaries and £0.5 million of restricted funds being the amount unspent from the grant budget, a small proportion of which is permitted to be carried over at the year end.

9 Staff remuneration

Trust for London, a Living Wage employer, is committed to ensuring that we pay our staff fairly and in a way which ensures we attract and retain the right skills to have the greatest impact in delivering our charitable objectives.

In accordance with the Charities SORP FRS 102 the Trust discloses:-

• all payments to trustees (no trustees are remunerated)

• the number of staff in receipt of more than £60,000 and above (in bands of £10,000)

• pensions and other benefits

In addition the Trust publishes on its website key facts about salaries including ‘high to low’ pay ratios, staff salary bands and pay gap data, both by gender and ethnicity.

The Trust’s Chair, in consultation with the Vice Chair and Chair of Finance & Resources Committee, has governance responsibility for the oversight of the Chief Executive’s pay reviews, whilst the Trust’s Finance & Resources Committee have oversight of staff pay reviews. Both report to the Board of Trustees.

The Finance & Resources Committee meets annually to consider staff remuneration. The Chief Executive and members of the Senior Management Team are in attendance for the meeting. Its main responsibilities are to:-

• conduct five-yearly reviews of staffing structures and salaries

• decide the terms and conditions of service of the Trustee’s staff

• approve the annual cost of living percentage increase (which can be zero) taking into account a variety of indices

• approve any incremental increases

• approve any pay awards and staff salary increases outside of the annual review process as recommended from time to time by the Chief Executive

• determine pension arrangements

• approve staff policies

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Our remuneration policy

The Trust’s pay and grading policy will:

• determine the appropriate grade for all posts through the use of our Grade Profiles

• aim for consistency, fairness, transparency, and legal compliance within our grading and pay practice

• monitor our grading and pay practice to ensure that it complies with equal pay for work of equal value legislation and the best principles of equity

• take account of pay market data and practice within other comparable organisations when reviewing pay scales every five years

• develop pay levels that reflect appropriate internal differentials, and the need to recruit and retain high quality staff and be in keeping with our position as a charitable organisation

• provide pay progression on the basis of annual increments until the top of grade has been achieved

• refer to a range of indices and other sources of information on pay market movements in order to determine any appropriate cost of living increase, whilst also taking account of the charity’s financial circumstances and affordability

The appropriateness and relevance of the pay and grading policy is reviewed every five years including reference to comparisons with other charities ensuring the Trust remains sensitive to the broader issues e.g. pay and employment conditions elsewhere.

We aim to recruit, subject to experience, at a lower point within a band, providing scope for increases in line with experience. We pay any interns the London Living wage.

In 2020-21 the Trust awarded staff a 1.5% cost (2019-20 - 2.25%) of living increase in salary effective from March 2020. Four (2019 – four) members of staff earn more than £60,000 per annum (being three remunerated between £70,000 and £80,000 and one remunerated between £120,000 and £130,000). The Chief Executive is the highest paid member of staff. Further information on staffing costs and pensions is presented in the notes to the financial statements.

10 Plans for the future

In response to the severe problems faced by Londoners and the good returns generated by the investment portfolio, the Trust in 2021 has agreed to increase the overall amount available for grants from the permanent endowment by £17 million.

Due to the impact of the pandemic and changes to the Trust’s senior leadership, Trust for London has decided to extend its five-year funding strategy by one year. It will now run from 2018 to 2023.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

The grant guidelines are issued in summary format and are also on our website. These outline in detail the funding programmes and priorities, and expand upon how we intend to administer our funding and explain the application process.

The COVID-19 pandemic has presented low-income Londoners with significant challenges and we continue to review our funding strategy to ensure that it can meet existing and emerging needs. As part of this response, we have committed funding to the London Community Response Fund, an initiative of London Funders that has brought together several funders to take a coordinated response to the crisis.

The Trust also undertakes a programme of proactive work on specific issues, again in collaboration with other funders. Our plans for the future include: a major new programme to make London a Living Wage city, where everyone is paid at least the London Living Wage; new initiatives on racial justice, and disability justice; and a programme of work to support residents in temporary accommodation.

We will also continue to provide training and development support to organisations to improve their skills and capacity in evaluation, learning, campaigning and strategic communications.

The Trust has an evaluation plan, with anticipated outcomes for each of the programme areas as well as high-level organisational outcomes. In addition to assessing the outcomes from the individual grants, we also invest in commissioning external evaluations to assess the effectiveness of the work and to highlight the learning to share with others.

We will also be responding to the findings of our Grantee Perception Study by redesigning our approach to grant making using the principles of Human Centred Design. Trust for London intends to continue and expand its social investment activities with our newly approved Social Investment Strategy.

11 Trustee matters

Since the last accounts were published in September, Councillor Joseph Ejiofor, Denise Joseph and Precious Sithole have been welcomed as new trustees to the Board and Sue Logan has ended her term of office, leaving in December.

The work of the Trustee has been as efficiently supported as ever by the staff, to whom the Trust for London is very grateful for their enthusiasm, loyalty and commitment.

Bharat Mehta is particularly thanked as he retires after 23 years of service. The Board welcomes Manny Hothi as the new Chief Executive from 1 July 2021.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

• 12 Statement of Trustee’s responsibilities in respect of the Trustee’s annual report and the financial statements

Under the trust deed of the charity and charity law, the Trustee is responsible for preparing the Trustee’s Annual Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustee to prepare financial statements for each financial year.

The group and charity’s financial statements are required by law to give a true and fair view of the state of affairs of the group and the charity and of the group’s excess of expenditure over income for that period.

In preparing these financial statements, generally accepted accounting practice entails that the Trustee:

• selects suitable accounting policies and then applies them consistently;

• observes the methods and principles in the applicable Charities SORP;

• makes judgements and estimates that are reasonable and prudent;

• states whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;

• states whether the financial statements comply with the trust deed, subject to any material departures disclosed and explained in the financial statements; and

• prepares the financial statements on the going concern basis unless it is inappropriate to presume that the group and the charity will continue in business.

The Trustee is required to act in accordance with the trust deed of the charity, within the framework of trust law. It is responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the Trustee to ensure that, where any statements of accounts are prepared by it under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision.

The Trustee is responsible for the maintenance and integrity of the financial and other information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

13 Disclosure of information to auditor

The Trustee who held office at the date of approval of this Trustee’s report confirms that, so far as it is aware, there is no relevant audit information of which the Trust’s auditor is unaware; and the Trustee has taken all the steps that it ought to have taken as a Trustee to make itself aware of any relevant audit information and to establish that the Trust’s auditor is aware of that information.

By order of the Trustee

Jeff Hayes 25 June 2021

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Independent Auditor’s Report to the Trustee of Trust for London

Opinion

We have audited the financial statements of Trust for London (‘the charity’) and its subsidiaries (‘the group’) for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, Group and Charity Balance Sheets, Consolidated 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 December 2020 and of the group’s income and receipt of endowments and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s or the group’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 trustee with respect to going concern are described in the relevant sections of this report.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Other information

The trustee is responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

• the information given in the financial statements is inconsistent in any material respect with the trustee’s report; or

• sufficient and proper accounting records have not been kept by the parent charity; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of the trustee

As explained more fully in the trustee’s responsibilities statement, the trustee is 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 trustee 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 trustee is responsible for assessing the group and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustee and other management and inspection of regulatory and legal correspondence, if any.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance and Resources Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

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

Crowe U.K. LLP Statutory Auditor London

Date: 6th July 2021

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

page 22

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Consolidated Statement of Financial Activities					Year ended 31 December 2020	Year ended 31 December 2020	Year ended 31 December 2020
Note		Restricted	Restricted	Endowment	Total	Total
		Funds	Central Fund &	Funds
		Subsidiaries	City Church Fund
		& Associates
		2020	2020	2020	2020	2019
Income		£	£	£	£		£
Income and endowments
Donations
Grants receivable	3	-	690,000	-	690,000	44,811
Charitable activities
Resource for London income		964,004	-	-	964,004	1,572,272
Bellingham Community Project income		166,541	-	-	166,541	70,670
Social Justice & Human Rights Centre income	12	(58,567)	-	-	(58,567)	317,073
Investment income
Income from mission related assets		-	194,015	-	194,015	_209,615 _
Dividends, alternative fund income and interest	4	-	893,037	2,795,267	3,688,304	_4,357,381 _
Income from investment properties		-	-	4,639,107	4,639,107	_4,171,152 _
Income to cover rechargeable expenses		-	23,390	174,239	197,629	_192,440 _
Less: Rechargeable expenses		-	(23,390)	(174,239)	(197,629)	(192,440)
Transfer to income: Total return transfers
between funds	5	-	19,759,251	(19,759,251)	-	-
Total income		1,071,978	21,536,303	(12,324,877)	10,283,404	_10,742,974 _
Expenditure
Raising funds
- Costs of trading subsidiary		(78)	-	-	(78)	(310)
Investment management costs	6	-	(739,047)	(440,331)	(1,179,378)	(1,241,480)
Charitable activities
Relief of poverty	8	-	(15,414,257)	-	(15,414,257)	(12,036,283)
Furtherance of religion	8	-	(7,797,237)	-	(7,797,237)	(6,471,594)
Resource for London operations		(808,981)	-	-	(808,981)	(1,076,773)
Bellingham Community Project operations		(200,960)	-	-	(200,960)	(194,009)
Total expenditure		(1,010,019)	(23,950,541)	(440,331)	(25,400,891)	(21,020,449)
Net gains/(losses) on investments
Net gains/(losses) on listed investments and
cash and near cash instruments	11	-	-	23,597,758	23,597,758	_32,340,008 _
Net gains on investment properties	11	-	-	12,846,933	12,846,933	(101,208)
Total of netgains/(losses) on investment		-	-	36,444,691	36,444,691	_32,238,800 _
Net income/(expenditure)
before transfers		61,959	(2,414,238)	23,679,483	21,327,204	_21,961,325 _
Transfers between funds	18	(255,000)	2,421,365	(2,166,365)	-	-
Net income/(expenditure)		(193,041)	7,127	21,513,118	21,327,204	_21,961,325 _
before other recognisedgains/(losses)
Other recognised gains/(losses)
Net revaluation gains on fixed
assets for own use	10	-	-	(150,000)	(150,000)	148,614
Net movement in funds		(193,041)	7,127	21,363,118	21,177,204	_22,109,939 _
Fund balances brought forward at 1 January		4,808,697	468,931	342,013,440	347,291,068	_325,181,129 _
Fund balances carried
forward at 31 December		4,615,656	476,058	363,376,558	368,468,272	_347,291,068 _

All income derives from continuing operations. There have been no recognised gains or losses other than the net movement in funds in the year. The notes on pages 25 to 38 form part of these accounts.

page 23

Annual Report and Consolidated Financial Statements 2020 of Trust for London

				Year ended 31 December 2020	Year ended 31 December 2020
Balance Sheets
		Group	Group	Trust	Trust
	Note	2020	2019	2020	2019
		£	£	£	£
Fixed assets
Tangible assets	10	8,186,676	8,506,422	5,448,126	5,741,333
Investments	11	369,382,169	344,851,267	369,382,169	344,851,267
Investment in associate	12	3,384,249	3,442,816	1,875,000	1,875,000
		380,953,094	356,800,505	376,705,295	352,467,600
Current assets
Debtors	13	4,223,463	3,342,711	4,299,809	3,245,344
Short term cash deposits		968	967	-	-
Cash at bank and in hand		9,826,931	6,680,191	9,183,829	6,021,924
		14,051,362	10,023,869	13,483,638	9,267,268
Liabilities
Creditors: amounts falling due within
one year	14	(16,697,371)	(14,697,654)	(16,497,504)	(14,416,845)
Net current liabilities		(2,646,009)	(4,673,785)	(3,013,866)	(5,149,577)
Total assets less current liabilities		378,307,085	352,126,720	373,691,429	347,318,023
Creditors:amounts falling due
after more than one year	15	(9,838,813)	(4,835,652)	(9,838,813)	(4,835,652)
Total net assets	21	368,468,272	347,291,068	363,852,616	342,482,371
The funds of the group and charity
Permanent endowment funds	21	334,457,133	313,374,093	334,457,133	313,374,093
Central Fund expendable endowment fund	21	28,919,425	28,639,347	28,919,425	28,639,347
Restricted funds subsidiaries & associates	19	4,615,656	4,808,697	-	-
Central Fund restricted fund	20	476,058	468,931	476,058	468,931
Totalgroup and charity funds		368,468,272	347,291,068	363,852,616	342,482,371
		-		-
				-

The accounts were approved by the Board on 25 June 2021 and signed on their behalf by:

Jeff Hayes Chair

The notes on pages 25 to 38 form part of these accounts.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

			Year ended 31 December 2020	Year ended 31 December 2020
Consolidated Statement of Cash Flows
	Note	2020		2019
		£		£
Net cashprovided by/(used in) operating activities	A	(17,993,344)		(15,367,828)
Cash flows from investing activities
Income from mission related assets		194,015		_209,615 _
Dividends, alternative fund income and interest		3,688,304		_4,357,381 _
Income from investment properties		4,639,107		_4,171,152 _
Investment management costs		(1,179,378)		(1,241,480)
Purchase of listed investments		(39,603,058)		(11,941,769)
Sales of listed investments		63,438,804		_29,255,738 _
Purchase of unlisted investments		-		(300,451)
Sales of unlisted investments		1,550,985		-
Net movement in cash and near cash investments		5,900,000		(1,500,001)
Net movement in cash held by investment managers		(1,664,660)		_3,670,238 _
Purchase of investment properties		(15,698,567)		(7,295,208)
Sales of investment properties		23,500		-
Purchase of mission related investments		(2,387,945)		(1,155,782)
Sales of mission related investments		354,730		_735,484 _
Purchase of fixed assets		(115,752)		(41,323)
Sale of fixed assets		-		1,536
Net cash provided by/(used in) investing activities		19,140,085		18,925,130
Cash flows from financing activities
Loan		2,000,000		-
Net cashprovided by/(used in) financing activities		2,000,000		-
Increase/(decrease) in cash		3,146,741		_3,557,302 _
Analysis of change in cash
Cash balances as at 1 January		6,681,158		3,123,856
Net cash inflow		3,146,741		_3,557,302 _
Cash balances as at 31 December		9,827,899		6,681,158
Analsys of cash and cash equivalents
Short term cash deposits		968		967
Cash at bank and in hand		9,826,931		6,680,191
Cash balances as at 31 December		9,827,899		6,681,158
Notes to the cash flow statement
		£		£
A. Reconciliation of operating result to net cash outflow from operating	activities
Net income/(expenditure) for the reporting period		(15,117,487)		(10,277,475)
Social Justice & Human Rights Centre income		58,567		(317,073)
Depreciation charges		285,498		_286,755 _
Income from mission related assets		(194,015)		(209,615)
Dividends, alternative fund income and interest		(3,688,304)		(4,357,381)
Income from investment properties		(4,639,107)		(4,171,152)
Investment management costs		1,179,378		_1,241,480 _
Loss/(gain) on sale of fixed assets		-		(1,386)
(Loss)/gain on currency		-		-
Decrease/(Increase) in debtors		(880,752)		(125,719)
Increase/(decrease) in creditors: Amounts falling due within one year		1,999,717		_258,311 _
Increase in creditors: Amounts falling due after more than one year		3,003,161		_2,305,427 _
Net cashprovided by/(used in)operatingactivities		(17,993,344)		(15,367,828)
B. Reconciliation of net debt		Balance at	Change	Balance at
		31 December	in year	31 December
		2019		2020
		£	£	£
Cash and bank and in hand		6,680,191	3,146,740	9,826,931
Cash on deposit		967	1	968
Loan		-	(2,000,000)	(2,000,000)
Net debt		6,681,158	1,146,741	7,827,899

The charity has taken advantage of the exemptions in FRS 102 from the requirements to present a charity only Cash Flow Statement.

page 25

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Year ended 31 December 2020

Notes to the Financial Statements

1 Basis of preparation of financial statements and assessment of going concern

Trust for London is a charity registered in England and Wales governed by a 31 December 2004 scheme which operates from 4 Chiswell Street London EC1Y 4UP.

The financial statements are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.

The accounts have been prepared in accordance with applicable accounting standards, Charities Acts 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).

Financial resources are well placed to manage the business risks. Our planning processes have taken into account the current economic climate and its potential impact on sources of income. In particular the Board and Senior Management Team have been regularly monitoring and reporting on the potential impact of Covid-19 on the organisation and its stakeholders since March 2020, and have been taking the appropriate action to mitigate as far as possible any immediate and ongoing financial and operational impact. The areas under review are formally included within the risk management process and include the impact on grantees and subsidiary companies, the impact on cash flow, the protection of the endowment fund and the care and safety of staff in following Government regulations relating to the pandemic. The Board has considered budgets and forecasts for the period to December 2021 and are satisfied the funds available within the Trust's substantial endowment are sufficient to cover existing commitments and planned spending over this period. As such, the Board considers that all appropriate steps have been taken to effectively manage the impact of Covid-19 and that overall there are no material uncertainties that call into doubt the charity's ability to continue. The accounts have therefore been prepared on a going concern basis. The Board continues to monitor investment performance regularly.

The accounts 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Trust for London meets the definition of a public benefit entity under FRS 102.

In the application of the charity’s accounting policies, which are described in note 2, the trustee is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the accounts are described in the accounting policies and are summarised below:

Valuation of investment properties and valuation of land and buildings - the charity’s investment properties and land and buildings other than the Bellingham Leisure & Lifestyle Centre are stated at their estimated fair value based on professional valuations as disclosed in notes 10 and 11

Multi-year grant commitments - the charity recognises future liabilities discounted to their present value where material.

No material loss to investment value post balance sheet has arisen as a result of coronavirus.

The charity has taken advantage of the exemptions in FRS 102 from the requirements to present a charity only Cash Flow Statement and certain disclosures about the charity’s financial instruments.

2 Accounting policies

(i) Basis of consolidation

Resource for London and Bellingham Community Project Limited have been treated as subsidiary undertakings as defined in the SORP. Therefore all their transactions are accounted for gross in these accounts. The funds of these subsidiaries have been treated as restricted funds of the charity. Bellingham Community Project Management Company Limited is treated as a subsidiary as defined in the SORP. The costs of this company are shown on separate lines in the Statement of Financial Activities.

(ii) Income and expenditure

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

All income is accounted for on an accruals basis.

Grants receivable and donations are recognised upon notification in writing of the amount awarded or donated and date of entitlement.

page 26

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Year ended 31 December 2020

Notes to the Financial Statements (continued)

2 Accounting policies (continued)

Resource for London rent, service charge income and similar income represents income from the operation of Resource for London at 356 Holloway Road, London, N7.

Investment income and related tax credits are recognised upon notification in writing of the amount and date of entitlement.

In some cases the Trust pays property expenses on behalf of its tenants and recovers these expenses in full. In such circumstances the Trust has thought it appropriate to show these service charge expenses as a deduction from income on the face of the Statement of Financial Activities. Liabilities are recognised in the Statement of Financial Activities as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. Raising funds comprise those operational costs directly attributable to managing the investment and property portfolio and raising investment and rental income, those expended on marketing and an appropriate proportion of general overheads which are identifiable wholly or mainly in support of raising funds. Charitable activities include grants made for charitable purposes from the Central Fund at the discretion of the Trust. These are charged to grants payable when they are approved by the Trust and notified to the beneficiaries. When grants are withdrawn or unclaimed they are shown as a deduction from grants payable. Grants made by the Trust but not paid at the year end are carried forward as a liability. They also include grants staff costs, consultants and an appropriate proportion of general overheads which are identifiable wholly or mainly in support of charitable expenditure. Resource for London costs relate directly to the operation of Resource for London. Bellingham Community Project costs relate directly to the operation of Bellingham Community Project. Costs of trading subsidiary relate to the operations of Bellingham Community Project Management Company Ltd. Governance costs are those incurred in connection with the governance arrangements of the Trust as opposed to those associated with charitable activity. They cover the costs of compliance with constitutional and statutory requirements and include audit fees, legal fees and costs of trustee meetings. They are shown within charitable activities and raising funds in an appropriate proportion. (iii) Financial instruments

Trust for London has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at the present value of future cash flows (amortised cost). Financial assets held at amortised cost comprise cash at bank and in hand, short term cash deposits and the group’s debtors excluding prepayments. Financial liabilities held at amortised cost comprise the group’s short and long term creditors excluding deferred income and taxation payable. No discounting has been applied to these financial instruments on the basis that the periods over which amounts will be settled are such that any discounting would be immaterial. Investments (excluding property) are included in the balance sheet at their fair value as described in iv below. (iv) Investments Freehold and leasehold investment properties are included in the balance sheet at fair value (market value) at the balance sheet date. The valuation was prepared as at 31 December 2020 by Cluttons, Chartered Surveyors, in accordance with R.I.C.S. guidelines. The previous valuation had been carried out at 31 December 2019. Listed investments and indirect property holdings are shown at the middle market price ruling at the balance sheet date, with the exception of certain indirect property holdings which are shown at net asset value. Unlisted investments are shown at cost less impairment.. Gains and losses are reflected in the Statement of Financial Activities and allocated to the respective funds.

v) Associate entities Associate entities are included in the balance sheet under the equity method of accounting ie initially recognised at cost and then subsequently adjusted to to reflect the charity's share of the post-acquisition change in the net assets of the associate. (vi) Tangible fixed assets

Tangible fixed assets costing more than £1,000 are capitalised. All fixed assets other than freehold land and buildings are shown at cost less depreciation.

Freehold land and buildings other than the Bellingham Leisure & Lifestyle Centre is included in the balance sheet at fair value (market value) at the balance sheet date. The valuation was prepared as at 31 December 2020 by Cluttons, Chartered Surveyors, in accordance with R.I.C.S guidelines. The previous valuation had been carried out at 31 December 2019.

Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value in equal instalments over its expected useful life as follows:

Investment freehold land and buildings - nil: Operational freehold buildings - 50 years: Operational leasehold land and buildings - life of the lease: Assets in the course of construction - nil: Leasehold improvements 4%: Computer equipment - 25%: Leisure & Lifestyle Centre equipment - 10%: Furniture and fittings - 20%

(vii) Short term cash deposits

Short term cash deposits are bank and money market deposits which do not have instant access but have a requirement for no more than three months notice before withdrawal.

(viii) Pensions

There is a group personal pension scheme for staff. Contributions are accounted for as and when the amounts become payable.

page 27

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Year ended 31 December 2020

Notes to the Financial Statements (continued)

2 Accounting policies (continued)

(ix) Fund accounting

Funds are available for use at the discretion of the Trust in furtherance of the general objectives of the Trust.

The investment assets of the Central Fund and the City Church Fund are held within the Trust for London Common Investment Fund. These assets are permanently endowed. Trustees confirm that, as per the total return policy adopted, funds can be transferred from the endowment fund to meet current liabilities obligations as they fall due.

(x) Taxation

Trust for London is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is exempt from taxation in respect of income or capital gains received, as long as the income and gains are all within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, and to the extent that such income or gains are applied exclusively to charitable purposes. Income tax will be payable to the extent that these conditions are not met.

Where appropriate, costs are shown inclusive of VAT as the charity is partially unable to recover VAT on its activities.

3 Grants receivable Restricted Grants receivable Lloyds Foundation Walcott Foundation Greater London Authority Paul Hamlyn Foundation City Bridge Trust Unbound Philanthropy Total grants receivable	Restricted Total Total Central Fund 2020 2019 £ £ £ - - 4,811 - - 10,000 40,000 40,000 30,000 100,000 100,000 - 400,000 400,000 - 150,000 150,000 -
	690,000 690,000 44,811

4 Dividends, alternative fund income and interest receivable

	Restricted	Restricted	Permanent
	City Church	Central	endowment	Total	Total
	Fund	Fund	funds	2020	2019
	£	£	£	£	£
Income from listed investments	89,434	574,726	2,228,783	2,892,943	3,368,998
Income from cash held as part of investment portfolio	-	115	1,292	1,407	14,790
Alternative fund income	-	228,736	564,648	793,384	972,361
Bank and other interest receivable	3	23	544	570	1,232
	89,437	803,600	2,795,267	3,688,304	4,357,381

5 Total return transfers between funds

On 10 November 2003, the Charity Commissioners authorised the Trust to adopt a Total Return approach to the management of its investment portfolios. On 1 January 2003 the Trust adopted this approach and selected 31 December 1942 as the reference date from which the permanently endowed funds have been analysed between the trust for investment and the unapplied total return, the two components of a permanent endowment specified in the Charity Commission's regulations.

Under the total return approach, the Trust is permitted to allocate from the total return element of permanent endowment to the trust for application (income) such sums as it thinks appropriate in furtherance of its work providing it undertakes prescribed tasks. These tasks are essentially to exercise its statutory duty to be even-handed as between present and future beneficiaries, to maintain the balance of the unapplied total return at such a level that it will remain positive considering the volatility of investment markets and to take such professional advice as it considers necessary in the exercise of these responsibilities.

The Trust’s strategy is to manage the endowment effectively in order to maximise the amount available for distribution whilst maintaining the real value of the Trust’s permanent endowment.

page 28

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Year ended 31 December 2020

Notes to the Financial Statements (continued)

5 Total return transfers between funds (continued)

A summary of the Trust's permanent endowment is as follows:

	Trust for	Unapplied	Endowment
	investment	total return	funds
	£	£	£
Aggregate value of the assets since the outset of total return
Value at 31 December 1942	3,262,620	-	3,262,620
Additional endowed capital	1,159,639	-	1,159,639
Gain in value	-	308,951,834	308,951,834
Value at 1 January2020	4,422,259	308,951,834	313,374,093
Aggregate value of the assets for the year ended 31 December 2019
Brought forward at 1 January 2020	4,422,259	308,951,834	313,374,093
Gain in value	-	33,407,917	33,407,917
Investment income receivable	-	7,434,374	7,434,374
Transfers to trust for application	-	(19,759,251)	(19,759,251)
Carried forward at 31 December 2020	4,422,259	330,034,874	334,457,133

The aggregate value of the unapplied total return continues to form part of the permanent endowment and does not constitute a separate fund for accounting purposes.

6 investment management costs

Common Investment Fund: Permanent endowment:	2020	2019
	£	£
Investment management fees	450,928	461,247
Property management fees	232,698	275,825
Depreciation	27,591	30,728
Staff costs (net)	221,331	251,927
Other costs of raisingfunds	91,231	124,992
Investment management costs	1,023,779	1,144,719
Costs transferred to restricted funds	(583,448)	(644,349)
Costs charged topermanent endowment funds	440,331	500,370
Being:-
Investment management fees	(409,615)	(461,247)
Propertymanagement fees	(30,716)	(39,123)
	(440,331)	(500,370)
Central Fund: expendable endowment:	2020	2019
	£	£
Investment and property management fees	75,974	57,179
Depreciation	4,678	3,044
Staff costs (net)	37,523	24,955
Other costs of raisingfunds	17,418	11,583
Investment management costs	135,593	96,761
Costs transferred from permanent endowment funds	583,448	644,349
Costs charged to restricted funds	719,041	741,110
City Church : permanent endowment:	2020	2019
	£	£
Investment and property management fees	20,006	-
Depreciation	-	-
Staff costs (net)	-	-
Other costs of raisingfunds	-	-
Investment management costs	20,006	-
Costs transferred from permanent endowment funds	-	-
Costs charged to restricted funds	20,006	-

page 29

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Notes to the Financial Statements(continued) 7 Governance costs Legal and professional fees Auditor's remuneration - audit & scrutiny fees Governance costs - trustees Staff costs (net)	Notes to the Financial Statements(continued) 7 Governance costs Legal and professional fees Auditor's remuneration - audit & scrutiny fees Governance costs - trustees Staff costs (net)	Notes to the Financial Statements(continued) 7 Governance costs Legal and professional fees Auditor's remuneration - audit & scrutiny fees Governance costs - trustees Staff costs (net)	Year ended Total 2020 £ 21,410 35,160 4,263 51,841	31 December 2020 Total 2019 £ 45,450 32,970 6,908 _80,213 _
			112,674	_165,541 _
Amounts payable to auditors Payable to Group auditor: Audit of group and charity (net of vat) Payable to other auditors: Bellingham Community Project audit (net of vat) Bellingham Community Project accountancy services (net of vat) Total 8 Analysis of charitable expenditure Operational Central Fund activities of the Grant making City Church Fund Central Fund and direct work Grant making - grants and grants related funding activity Central Fund grants and grants related funding authorised 13,616,384 Central Fund grants written back (129,510) Grants made for the relief of poverty 13,486,874 Church Commissioners and Dioceses 5,065,721 City Churches Grants Committee 2,502,500 Schedule VII payments to City Churches 30,360 Grants for the furtherance of religion 7,598,581 Resource for London and Bellingham operations 811,737 - - - support, direct work and governance costs Staff costs 88,558 1,031,186 120,611 Website and e-bulletins - 190,211 - Media communications - 16,724 - Grant support consultancy - 23,659 569 Depreciation 109,646 128,548 15,035 Legal and professional fees - 40,051 3,251 Audit fees - 18,082 8,057 Communications costs - - - Governance costs - trustees - 3,116 364 Other support costs - 475,806 50,769			35,400 3,891 540	33,380 4,147 538
			39,831	38,065
			Total funds 2020 13,616,384 (129,510)	Total funds 2019 10,294,561 (239,903)
	13,486,874 - 1,031,186 190,211 16,724 23,659 128,548 40,051 18,082 - 3,116 475,806		13,486,874 5,065,721 2,502,500 30,360	10,054,658 4,164,411 2,051,651 _30,555 _
		7,598,581 - 120,611 - - 569 15,035 3,251 8,057 - 364 50,769	21,085,455 811,737 1,240,355 190,211 16,724 24,228 253,229 43,302 26,139 - 3,480 526,575	16,301,275 1,078,450 1,295,295 165,907 13,429 22,812 252,983 62,209 24,511 20,825 5,621 535,342
Totals for 2020 1,009,941	15,414,257	7,797,237	24,221,435	19,778,659
Totals for 2019 1,270,782	12,036,283	6,471,594	19,778,659
Where costs are allocated the basis of apportionment is staff time spent o	n each activity.

Further details and analysis of grants made and consultancies undertaken is available in the Trustee's report and, for the Central Fund, in 'Review 2020' (www.trustforlondon.org.uk/publications/review-2020) and its companion document 'Funding List 2020' (www.trustforlondon.org.uk/funding/funded-projects/). The last two reports are available from our offices as well as being on the website.

page 30

Annual Report and Consolidated Financial Statements 2020 of Trust for London

	Year ended 31 December 2020	Year ended 31 December 2020
Notes to the Financial Statements(continued)
9 Analysis of staff costs and remuneration of key management personnel
a) Staff costs	2020	2019
	£	£
Wages and salaries	1,211,698	_1,124,557 _
Death in service costs	12,180	198,080
Social security costs	120,106	_109,710 _
Pension costs	148,525	_139,831 _
Total costs charged	1,492,509	_1,572,178 _
	2020	2019
	No.	No.
The average head count(number of staff employed)duringtheyear was:	25	24
The average number of employees (head count) analysed by function was:
Grant making	16	15
Bellingham	2	2
Administration	7	7
	25	24
Number of employees who earned between:	2020	2019
	No.	No.
£60,001 and £70,000:	0	1
£70,001 and £80,000:	3	2
£120,001 and £130,000:	1	1

b) Remuneration of key management personnel

The Trust considers its key management personnel comprise the trustees and the members of the Senior Management Team ie Chief Executive, Director of Finance & Admin, Director of Grants and Director of Policy. The total employment benefits including employer pension contributions of the key management personnel were £448,000 (2019: £434,389).

Key management personnel by job title	2020	2019
£80,001 and £90,000:	Director of Policy	Director of Policy
£90,001 and £100,000:		Director of Finance & Admin and
		Director of Grants
£100,001 and £110,000:	Director of Finance & Admin and
	Director of Grants
£150,001 and £160,000:	Chief Executive	Chief Executive

No Board member received remuneration or any other benefits during the year (2019: nil). Out of pocket expenses were reimbursed to Board members as follows:

Board members as follows:
	2020	2019	2020	2019
	No.	No.	£	£
Travel	2	4	5	1,278
Training/seminars/induction	1	-	180	-
	3	4	185	1,278

page 31

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Year ended 31 December 2020

Notes to the Financial Statements (continued)

10 Fixed assets

Group	Leasehold	Leasehold	IT	Furniture, fittings	Freehold land	Freehold land
	improvements		equipment	and equipment	and buildings		Total
		£	£	£		£	£
Cost or valuation
Brought forward at 1 January	829,982		395,336	2,036,000	9,042,279		12,303,597
Additions in the year	51,476		62,572	1,704	-		115,752
Disposals/transfers in the year	-		(1,224)	-	-		(1,224)
Realisedgains and revaluation ofproperties	-		-	-	(150,000)		(150,000)
Carried forward at 31 December	881,458		456,684	2,037,704	8,892,279		12,268,125
Depreciation
Brought forward at 1 January	189,232		340,122	1,996,759	1,271,062		3,797,175
Charge for year	152,867		40,127	13,063	79,441		285,498
Disposals/transfers in theyear	-		(1,224)	-	-		(1,224)
Carried forward at 31 December	342,099		379,025	2,009,822	1,350,503		4,081,449
Net book value at 31 December 2020	539,359		77,659	27,882	7,541,776		8,186,676
Net book value at 31 December 2019	_640,750 _		_55,214 _	_39,241 _	_7,771,217 _		_8,506,422 _
Trust	Leasehold		IT	Furniture, fittings	Freehold land
	improvements		equipment	and equipment	and buildings		Total
		£	£	£		£	£
Cost or valuation
Brought forward at 1 January	715,373		259,290	24,831	5,150,000		6,149,494
Additions in the year	13,601		17,340	1,704	-		32,645
Disposals/transfers in the year	-		(1,224)	-	-		(1,224)
Realisedgains and revaluation ofproperties	-		-	-	(150,000)		(150,000)
Carried forward at 31 December	728,974		275,406	26,535	5,000,000		6,030,915
Depreciation
Brought forward at 1 January	178,844		215,849	13,468	-		408,161
Charge for year	147,608		24,342	3,902	-		175,852
Disposals/transfers in theyear	-		(1,224)	-	-		(1,224)
Carried forward at 31 December	326,452		238,967	17,370	-		582,789
Net book value at 31 December 2020	402,522		36,439	9,165	5,000,000		5,448,126
Net book value at 31 December 2019	_536,529 _		_43,441 _	_11,363 _	_5,150,000 _		_5,741,333 _
*Total historical cost at 31 December					-		-
*Historical cost of freehold land and buildings is shown as nil as the acquisition of the charitable				properties occurred over fifteen years ago.

Freehold land and buildings represent a proportion of 350-356 Holloway Road, London, N7 which is occupied by Resource for London and the Bellingham Leisure & Lifestyle Centre managed by Bellingham Community ProjectLtd. All fixed assets are held for charitable purposes.

page 32

Annual Report and Consolidated Financial Statements 2020 of Trust for London

			Year ended 31 December 2020	Year ended 31 December 2020
Notes to the Financial Statement(continued)	2020	2020	2019	2019
	£	£	£	£
11 Fixed asset investments
	Group	Trust	Group	Trust
Investment properties
Market value at 1 January	125,940,000	125,940,000	_118,746,000 _	_118,746,000 _
Additions to investment properties	15,698,567	15,698,567	_7,295,208 _	_7,295,208 _
Disposals of investment properties	(23,500)	(23,500)	-	-
Unrealised gains on revaluation of investment properties	12,823,433	12,823,433	(101,208)	(101,208)
Realised gains on investment properties	23,500.00	23,500.00	-	-
Market value at 31 December	154,462,000	154,462,000	_125,940,000 _	_125,940,000 _
Listed investments*
Market value at 1 January	198,807,660	198,807,660	_184,022,580 _	_184,022,580 _
Additions to listed investments	39,603,058	39,603,058	_11,941,769 _	_11,941,769 _
Disposals of listed investments	(63,438,804)	(63,438,804)	(29,255,738)	(29,255,738)
Realised and unrealised (losses)/gains on listed investments	23,627,343	23,627,343	_32,099,049 _	_32,099,049 _
Market value at 31 December	198,599,257	198,599,257	_198,807,660 _	_198,807,660 _
* includes global equities, bonds, multi-asset funds and alternative asset funds
Unlisted investments
Value at 1 January	1,550,985	1,550,985	1,324,367	1,324,367
Additions to unlisted investments	-	-	300,451	300,451
Disposalstransfers of unlisted investments	(1,550,985)	(1,550,985)	-	-
Realised and unrealised (losses)/gains on unlisted investments	-	-	(73,833)	(73,833)
Value at 31 December	-	-	_1,550,985 _	_1,550,985 _
UK listed investments	148,032,245	148,032,245	153,880,669	153,880,669
Overseas listed investments	50,567,011	50,567,011	44,926,991	44,926,991
UK unlisted investments	-	-	1,550,985	1,550,985
	198,599,256	198,599,256	_200,358,645 _	_200,358,645 _
Cash held by investment managers
Market value at 31 December	3,497,241	3,497,241	1,832,581	1,832,581
Mission related investments
Value at 1 January	2,431,190	2,431,190	1,809,657	1,809,657
Additions/transfers in the year to mission related investments	2,387,945	2,387,945	1,155,782	1,155,782
Repayment/transfers of mission related investments	(354,730)	(354,730)	(735,484)	(735,484)
Realised gain on Mission related investments	17,801	17,801	201,235	201,235
Value at 31 December	4,482,206	4,482,206	_2,431,190 _	_2,431,190 _
Cash and near cash investments
Market value at 1 January	14,288,851	14,288,851	_12,675,293 _	_12,675,293 _
Additions	9,000,000	9,000,000	_5,625,000 _	_5,625,000 _
Disposals	(14,900,000)	(14,900,000)	(4,124,999)	(4,124,999)
Realised and unrealised (losses)/gains on cash and near investments	(47,385)	(47,385)	_113,557 _	_113,557 _
Market value at 31 December	8,341,466	8,341,466	_14,288,851 _	_14,288,851 _
Total market value at 31 December	369,382,169	369,382,169	_344,851,267 _	_344,851,267 _
+Total historical cost at 31 December	139,873,508	139,873,508	153,802,980	153,802,980

+Historical cost excludes investment properties as some of them were acquired over 100 years ago. All investment properties are situated in the UK.

page 33

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Year ended 31 December 2020

Notes to the Financial Statements (continued)

12 Investment in associate

The Trust holds a 30.22% equity holding in the Social Justice and Human Rights Centre Limited (SJ&HRC). Accordingly an appropriate share of the net assets of SJ&HRC has been recognised in the group balance sheet as an investment in associate during the year as follows:

	Group	Group	Trust	Trust
	2020	2019	2020	2019
	£	£	£	£
Cost	1,875,000	1,875,000	1,875,000	1,875,000
Share of net assets at 31 December 2019	1,567,816	1,250,743
Share of surplus/(loss)in theyear	(58,567)	317,073	-	-
	(58,567)	317,073	-	-
Share of net assets at 31 December 2020	3,384,249	3,442,816	1,875,000	1,875,000
Share of net assets at acquisition	2,492,826	2,492,826
13 Debtors	Group	Group	Trust	Trust
	2020	2019	2020	2019
	£	£	£	£
Grants receivable	895,000	390,000	895,000	390,000
Resource for London trade debtors	28,003	80,525	-	-
Rent and insurance due from tenants	2,401,780	1,793,049	2,556,780	1,822,209
Amount due from connected charities	21,823	22,434	21,823	22,434
Rent deposits with solicitors	18,705	36,159	18,705	36,159
Other debtors	148,730	58,531	126,846	50,959
Prepayments	176,662	166,926	156,364	139,294
Accrued income	532,760	795,087	524,291	784,289
	4,223,463	3,342,711	4,299,809	3,245,344
14 Creditors: Amounts falling due within one year
	Group	Group	Trust	Trust
	2020	2019	2020	2019
	£	£	£	£
Grants payable for the relief of poverty	12,386,994	11,505,754	12,386,994	11,505,754
Grants payable for the furtherance of religion	2,386,132	1,310,633	2,386,132	1,310,633
Resource for London trade creditors	33,725	116,903	-	-
Rents received in advance	685,122	534,350	685,122	534,350
Rent deposits with solicitors	18,705	36,159	18,705	36,159
Taxation and social security	35,539	30,228	35,539	30,228
Other creditors	737,450	776,885	677,457	688,190
Accruals	315,898	376,176	246,285	311,531
Deferred income	97,806	10,566	61,270	-
	16,697,371	14,697,654	16,497,504	14,416,845
15 Creditors: Amounts falling due after more than one year
	Group	Group	Trust	Trust
	2020	2019	2020	2019
	£	£	£	£
Grants payable for the relief of poverty	4,722,717	2,978,958	4,722,717	2,978,958
Grants payable for the furtherance of religion	3,116,096	1,856,694	3,116,096	1,856,694
Loan(repayable in full within 2-5years)	2,000,000	-	2,000,000	-
	9,838,813	4,835,652	9,838,813	4,835,652
15a Movement in provisions and funding commitments during year
	Central fund	City Church Fund	Group	Group
	grants payable	grants payable
	2020	2020	2020	2019
	£	£	£	£
Grants payable at start of year	14,484,712	3,167,326	17,652,038	15,462,474
New grants charged to the SOFA in year (see note 8)	13,661,384	7,598,581	21,259,965	16,591,178
Writebacks credited to the SOFA in year (see note 8)	(129,510)	-	(129,510)	(239,903)
Grantspaid in theyear	(10,906,875)	(5,263,679)	(16,170,554)	(14,161,711)
Grantspayable at end ofyear	17,109,711	5,502,228	22,611,939	17,652,038

page 34

Annual Report and Consolidated Financial Statements 2020 of Trust for London

Year ended 31 December 2020

Notes to the Financial Statements (continued)

16 Operating leases

16 Operating leases
	2020		2019
a) lessor		£		£
The Trust is entitled as landlord to income from investment properties under operating leases.
For non-cancellable leases with lives of less than 25 years
Future minimum lease payments under non-cancellable operating leases for the each of the following periods :-
- not later than one year	1,589,096		_1,064,043 _
- later than one year and not later than five years; and	5,012,897		_3,414,100 _
- later than five years	13,838,386		12,296,958
	20,440,379		_16,775,101 _
For non-cancellable leases with lives of 25 years and over*
Future minimum lease payments under non-cancellable operating leases for the each of the following periods :-
- not later than one year	3,022,057		_3,195,886 _
- later than one year and not later than five years; and	12,788,546		_12,783,544 _
- later than five years	593,249,383		594,572,151
	609,059,986		_610,551,581 _
* these leases can have lives up to 1,000 years as they include ground rent leases which are valued at £92.7m and form some 71% of the			portfolio.
	2020		2019
b) lessee		£		£
The Trust as tenant has to pay rent under an operating lease at 4 Chiswell Street.
For non-cancellable leases with lives of less than 25 years
Future minimum lease payments under non-cancellable operating leases for the each of the following periods :-
- not later than one year	333,202		333,202
- later than one year and not later than five years; and	572,376		239,174
- later than five years	-		-
	905,578		572,376

17 Pension Scheme

The Trust provides a group personal pension scheme.

The Trust makes contributions at a rate of 10% to individuals' personal pensions within the group scheme, provided they make a personal contribution of at least 3%. During a transitional period, for certain members, the percentage of contributions may vary between 3% and 17% depending on the age of the employee. In 2020 the Trust made contributions of £139,981 (2019 : £131,533) to the scheme.

In addition staff at the Trust's subsidiary charities are entitled to contributions at a rate of 10% of gross salaries to a personal pension scheme. Total contributions made in 2020 at the Bellingham Community Project were £8,544 (2019: £8,298). No staff are directly employed at Resource for London.

Staff were enrolled under auto-enrolment as from 1 June 2016.

18 Transfers between funds

Grants and charges between the Trust and its subsidiaries are shown as transfers between funds rather than as income in the Statement of Financial Activities.

The Central Fund spent in the year from its expendable endowment to supplement the income derived from it. The amount is shown by way of transfer between funds.

	Restricted	Restricted	Endowment
	funds	Central Fund	funds
	Subsidiaries
	£	£	£
Subsidiary charity adjustments	(255,000)	255,000	-
Central Fund - expendable endowment - spent in the year	-	2,166,365	(2,166,365)
	(255,000)	2,421,365	(2,166,365)

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Notes to the Financial Statements (continued)

19 Restricted funds - subsidiaries and associates

19 Restricted funds - subsidiaries and associates
	Balance at	Income	Expenditure	Balance at
	31 December		and transfers	31 December
	2019			2020
	£	£	£	£
Resource for London	497,215	964,004	(1,108,981)	352,238
Bellingham Community Project Limited	2,743,666	211,541	(201,038)	2,754,169
Social Justice & Human Rights Centre Limited	1,567,816	(58,567)	-	1,509,249
	4,808,697	1,116,978	(1,310,019)	4,615,656

These funds have been shown as restricted because the charity's branches and associates have separate charitable purposes.

20 Restricted funds - Central Fund and City Church Fund

	Balance at	Transfer from	Net income/	Revaluations	Balance at
	31 December	unapplied return	(expenditure)	and transfers	31 December
	2019				2020
	£	£	£	£	£
Central Fund	468,931	12,079,350	(13,607,235)	0	(1,058,954)
City Church Fund	-	7,708,673	(7,727,806)	0	(19,133)
	468,931	19,788,023	(21,335,041)	0	(1,078,087)

These funds have been shown as restricted because the Central and City Church Funds have separate charitable purposes. Included within the Central Fund are restricted grant balances carried forward as follows:

	Balance at			Balance at
	31 December			31 December
	2019	Income	Expenditure	2020
	£	£	£	£
Citizenship and Integration (Unbound Philanthropy)	87,457	150,000	73,045	164,412
Citizenship and Integration (Paul Hamlyn Foundation)	-	100,000	84,500	15,500
Citizenship and Integration (Pears Foundation)	24,440	-	-	24,440
Strengthening Voices Realising Rights (City Bridge Trust)	-	400,000	209,500	190,500
Private Rented Sector (Oak Foundation)	288,150	-	238,150	50,000
London Housing Panel (Greater London Authority)	-	40,000	40,000	-
	400,047	690,000	645,195	444,852

• The purposes of these Trust initiatives are: Citizenship and Integration - to improve social cohesion in London by working closely with the Mayor of London and the GLA Strengthening Voices Realising Rights - to support Deaf and Disabled people’s organisations (DDPOs) in their work protecting, promoting and advancing equal rights and inclusion for Deaf and Disabled Londoners (DDL).

• Private Rented Sector - to strengthen the voice of tenants in the private rented sector

• to consult with London’s voluntary and community sector on housing issues and policies, with a focus on London Housing Panel (Greater London Authority the Mayor of London’s housing policies

21 Analysis of net assets between funds

21 Analysis of net assets between funds
	Tangible			Net current	Long term
	fixed assets		Investments	(liabilities)/assets	liabilities	Total
a Group		£	£	£	£	£
Endowment funds
permanent endowment funds	448,126		325,249,767	13,875,336	(5,116,096)	334,457,133
expendable endowment - Central Fund	5,000,000		46,007,402	(17,365,260)	(4,722,717)	28,919,425
Restricted funds
Central Fund	-		-	31,206	-	31,206
Central Fund - restrictedgrants	-		-	444,852	-	444,852
Trust net assets/(liabilities)	5,448,126		371,257,169	(3,013,866)	(9,838,813)	363,852,616
Restricted funds
Bellingham Community Project Limited	2,550,776		-	203,393	-	2,754,169
Resource for London	187,774		-	164,464	-	352,238
Social Justice & Human Rights Centre Limited	-		1,509,249	-	-	1,509,249
Group net assets/(liabilities)	8,186,676		372,766,418	(2,646,009)	(9,838,813)	368,468,272

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Year ended 31 December 2020

Notes to the Financial Statements(continued)
21 Analysis of net assets between funds (continued)
	Tangible		Net current	Long term
	fixed assets	Investments	(liabilities)/assets	liabilities	Total
b Trust	£	£	£	£	£
Endowment funds
permanent endowment funds	448,126	325,249,767	13,875,336	(5,116,096)	334,457,133
expendable endowment - Central Fund	5,000,000	46,007,402	(17,365,260)	(4,722,717)	28,919,425
Restricted funds
Central Fund	-	-	31,206	-	31,206
Central Fund - restrictedgrants	-	-	444,852	-	444,852
Trust net assets/(liabilities)	5,448,126	371,257,169	(3,013,866)	(9,838,813)	363,852,616
	-

The entitlement of the two participating funds in the Common Investment Fund (also known as the Pool) at 1 January 2020 was 59.8% Central Fund and 40.2% City Church Fund. The entitlement remains unaltered at the year end at 59.8% Central Fund and 40.2% City Church Fund. The average entitlement over the year which is to be applied to the income distribution is also unaltered from 2019 and is 59.8% Central Fund and 40.2% City Church Fund. As a result, the allocation of income, gains and related expenditure across the two endowments has therefore been in the ratio 59.8% Central Fund and 40.2% City Church Fund.

22 Connected charities

During 2020 Trust for London was a fellow trust of The London Trust, a charity which is also administered by Trust for London Trustee and which produces separate accounts. The charity is dormant.

23 Subsidiary Undertakings

Resource for London (Charity Registration Number 1015305)

Resource for London is a subsidiary of the Trust. The Trust for London is the sole member of Resource for London. The liability of the member is limited to £1. Resource for London operates from offices at 356 Holloway Road, a property leased to it by the Trust. It operates a resource centre for charities, providing them with office accommodation, conference, meeting rooms and other facilities. Amounts payable of £300,000 (2019: £323,019) were made by Resource for London to Trust for London for rent (£300,000). The amount due to the Trust from Resource for London at the end of 2020 was £230,000 (2019: £104,160).

Bellingham Community Project Limited (Charity Registration Number 1036667)

Bellingham Community Project Limited is a subsidiary of the Trust. Bellingham Community Project Limited is a charitable venture run by Trust for London in Bellingham. The liability of the members is limited to £1. The Trust has control over the Project by virtue of the fact that it has a majority vote on the Board of Directors of the company. The Project operates from an office in Randlesdown Road, Bellingham. Grants totalling £45,000 (2019: £50,000) were made by the Trust towards running costs. It runs a leisure and lifestyle centre for the benefit of the local community which is managed by the London Borough of Lewisham and provides support for local community projects. During 2020 the Project Director was seconded to the Trust one day a week to work on missionrelated investmentprojects for the Trust. The secondmentfee paid to the Projectwas £14,868 (2019:£14,453) .

Bellingham Community Project Management Company Limited

Bellingham Community Project Management Company Limited, a company incorporated in the UK, is a subsidiary of Bellingham Community Project Limited. The charity, through its charitable subsidiary Bellingham Community Project Limited, wholly owns the shares of Bellingham Community Project Management Company Limited, a company incorporated in the UK. Its principal activity is to provide advisory services, in a consultancy capacity, to charities, community groups, service providers and businesses who are looking to set up their own projects. Accounts are filed at Companies House.

Greenford Playing Fields Limited (Charity Registration Number 1036672)

Greenford Playing Fields Limited is a subsidiary of the Trust. The liability of the members is limited to £1. The Trust has a dominant influence over this company by virtue of the fact that it has a majority vote on the Board of Directors of the company and by virtue of the fact that each of its votes as a member counts three times. The company was treated as dormant in the year ended 31 December 2020.

23 Associate entity - Social Justice and Human Rights Centre Limited (Company Number 7630171)

Social Justice and Human Rights Centre Limited, also known as the Foundry, is an associate entity of the Trust. It is a company limited by share capital. The Trust has a significant influence over this company by virtue of the fact that it has a vote on the Board of Directors of the company and that it owns 30.22% of the share capital. See note 12 - Investment in associate.

24 Relatedparty transactions

The Trust has a policy for declaration of interests by both trustees and staff. The declaring of interests by a trustee forms part of a wider code of behaviour expected of trustees in fulfilling their obligations towards the Trust and its beneficiaries. There have been no situations during the year where a trustee or member of staff has declared a commercial interest in any transaction. There are instances where for example a trustee is also a trustee of another charity that has provided funding to the Trust, or a trustee of a grant applicant charity and also where trustees are employed by grant applicant charities which are not disclosed here.Any gifts or hospitality with a value of more than £50 are disclosed unless itis in the normal course of business.

The Trust has agreed to take on 90% of the costs of the repair obligations for the leisure centre falling to its subsidiary Bellingham Community Project Limited (BCP) under the lease with London Borough of Lewisham. As regards the future repair obligations, the potential extent of this liability is unknown and may be in place until 2053 should the original head lease signed by the Trust and BCP run to term.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Notes to the Financial Statements (continued)

26 Comparative Statement of Financial Activities

Consolidated Statement of Financial Activities					Year ended 31	Year ended 31	December 2019	December 2019
	Restricted		Restricted		Endowment		Total
	Funds		Central Fund &		Funds
	Subsidiaries		City Church Fund
	& Associates
	2019		2019		2019		2019
		£		£		£		£
Income
Income and endowments
Donations
Grants receivable	-		44,811		-		44,811
Charitable activities
Resource for London income	1,572,272		-		-		1,572,272
Bellingham Community Project income	70,670		-		-		70,670
Social Justice & Human Rights Centre income	317,073		-		-		317,073
Investment income
Income from mission related assets	-		209,615		-		209,615
Dividends, alternative fund income and interest	-		644,923		3,712,458		4,357,381
Income from investment properties	-		-		4,171,152		4,171,152
Income to cover rechargeable expenses	-		23,019		169,421		192,440
Less: Rechargeable expenses	-		(23,019)		(169,421)		(192,440)
Transfer to income: Total return transfers	-		16,688,473		(16,688,473)		-
between funds
Total income	1,960,015		17,587,822		(8,804,863)		10,742,974
Expenditure
Raising funds
- Costs of trading subsidiary	(310)		-		-		(310)
Investment management costs	-		(741,110)		(500,370)		(1,241,480)
Charitable activities
Relief of poverty	-		(12,036,283)		-		(12,036,283)
Furtherance of religion	-		(6,471,594)		-		(6,471,594)
Impairment of mission related investment	-		-		-		-
Resource for London operations	(1,076,773)		-		-		(1,076,773)
Bellingham Community Project operations	(194,009)		-		-		(194,009)
Total expenditure	(1,271,092)		(19,248,987)		(500,370)		(21,020,449)
Net gains/(losses) on investments
Net gains on listed investments and
cash and near cash instruments	-		-		32,340,008		32,340,008
Net gains on investment properties	-		-		(101,208)		(101,208)
Total of netgains/(losses) on investment	-		-		32,238,800		32,238,800
Net income/(expenditure)
before transfers	688,923		(1,661,165)		22,933,567		21,961,325
Transfers between funds	(250,000)		808,318		(558,318)		-
Net income/(expenditure)	438,923		(852,847)		22,375,249		21,961,325
before other recognisedgains/(losses)
Other recognised gains/(losses)
Net revaluation gains on fixed
assets for own use	-		-		148,614		148,614
Net movement in funds	438,923		(852,847)		22,523,863		22,109,939
Fund balances brought forward at 1 January	4,369,774		1,321,778		319,489,577		325,181,129
Fund balances carried
forward at 31 December	4,808,697		468,931		342,013,440		347,291,068

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Notes to the Financial Statements (continued)

27 Comparative statement of Restricted funds - subsidiaries

Restricted funds - subsidiaries and associates				Year ended 31	December 2019
		Balance at	Income	Expenditure	Balance at
		31 December		and transfers	31 December
		2018			2019
		£	£	£	£
Resource for London		301,716	1,572,272	(1,376,773)	497,215
Bellingham CommunityProject Limited		2,817,315	120,670	(194,319)	2,743,666
Social Justice & Human Rights Centre Limited		1,250,743	317,073	-	1,567,816
		4,369,774	2,010,015	(1,571,092)	4,808,697
These funds have been shown as restricted because the charity's branches		have separate charitable purposes.
28 Comparative statement of Restricted funds - Central Fund and City Church Fund
Restricted funds - Central Fund and City Church Fund				Year ended 31	December 2019
	Balance at	Transfer from	Net income/	Revaluations	Balance at
	31 December	unapplied return	(expenditure)	and transfers	31 December
	2018				2019
	£	£	£	£	£
Central Fund	1,321,778	10,278,928	(11,668,237)	536,462	468,931
City Church Fund	-	6,909,915	(6,931,771)	21,856	-
	1,321,778	17,188,843	(18,600,008)	558,318	468,931

These funds have been shown as restricted because the Central and City Church Funds have separate charitable purposes.

29 Comparative statement of Analysis of net assets between funds

Analysis of net assets between funds						Year ended 31	December 2019	December 2019
	Tangible			Net current		Long term
	fixed assets		Investments	(liabilities)/assets		liabilities	Total
a Group		£	£	£		£		£
Endowment funds
permanent endowment funds	591,333		310,820,273	3,819,181	-	1,856,694	313,374,093
expendable endowment - Central Fund	5,150,000		35,905,994	(9,437,689)		(2,978,958)	28,639,347
Restricted funds
Central Fund	-		-	68,884		-	68,884
Central Fund - restrictedgrants	-		-	400,047		-	400,047
Trust net assets/(liabilities)	5,741,333		346,726,267	(5,149,577)		(4,835,652)	342,482,371
Restricted funds
Bellingham Community Project Limited	2,632,217		-	111,449		-	2,743,666
Resource for London	132,872		-	364,343		-	497,215
Social Justice & Human Rights Centre Limited	-		1,567,816	-		-	1,567,816
Group net assets/(liabilities)	8,506,422		348,294,083	(4,673,785)		(4,835,652)	347,291,068
b Trust
Endowment funds
permanent endowment funds	591,333		310,820,273	3,819,181	-	1,856,694	313,374,093
expendable endowment - Central Fund	5,150,000		35,905,994	(9,437,689)		(2,978,958)	28,639,347
Restricted funds
Central Fund	-		-	68,884		-	68,884
Central Fund - restrictedgrants	-		-	400,047		-	400,047
Trust net assets/(liabilities)	5,741,333		346,726,267	(5,149,577)		(4,835,652)	342,482,371

The entitlement of the two participating funds in the Common Investment Fund (also known as the Pool) at 1 January 2019 was 59.8% Central Fund and 40.2% City Church Fund. The entitlement remains unaltered at the year end at 59.8% Central Fund and 40.2% City Church Fund. The average entitlement over the year which is to be applied to the income distribution is also unaltered from 2018 and is 59.8% Central Fund and 40.2% City Church Fund. As a result, the allocation of income, gains and related expenditure across the two endowments has therefore been in the ratio 59.8% Central Fund and 40.2% City Church Fund.

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Five Year Summary

		2020	2019	2018	2017	2016
		£000	£000	£000	£000	£000
STATEMENTS OF FINANCIAL ACTIVITIES
Income
charitable activities*		1,762	2,005	3,906	2,736	1,456
investment and other income		8,521	8,738	8,615	7,578	7,028
Total income		10,283	10,743	12,521	10,314	8,484
Expenditure
Raising funds
Investment management costs		(1,179)	(1,241)	(1,048)	(1,177)	(1,310)
Charitable activities*	(24,222)		(19,780)	(18,394)	(16,038)	(13,848)
Total expenditure	(25,401)		(21,021)	(19,442)	(17,215)	(15,158)
Net gains/(losses) on investment assets		36,445	32,239	(1,433)	21,255	27,596
Net income/(expenditure)		21,327	21,961	(8,354)	14,354	20,922
Other recognised gains and losses
Gains on assets for own use		(150)	149	150	-	227
Net movement in funds		21,177	22,110	(8,204)	14,354	21,149
Fund balances brought forward	347,291		325,181	333,385	319,031	297,882
Fund balances carried forward	368,468		347,291	325,181	333,385	319,031
BALANCE SHEETS AS AT 31 DECEMBER
		2020	2019	2018	2017	2016
		£000	£000	£000	£000	£000
Fixed assets
Tangible fixed assets		8,187	8,506	8,603	10,061	10,236
Investments	369,382		344,851	324,081	328,239	312,646
Investment in associate		3,384	3,443	3,126	2,959	-
Current assets
Debtors and stock		4,223	3,343	3,217	1,949	2,983
Short term cash deposits		1	1	3	3	3
Cash at bank and in hand		9,827	6,680	3,120	4,535	5,551
		14,051	10,024	6,340	6,487	8,537
Current creditors	(16,697)		(14,697)	(14,439)	(12,573)	(10,995)
Net current (liabilities)/assets		(2,646)	(4,673)	(8,099)	(6,086)	(2,458)
Creditors: amounts falling due		(9,839)	(4,836)	(2,530)	(1,788)	(1,393)
after more than one year
Net assets	368,468		347,291	325,181	333,385	319,031
Capital funds of the group
Permanent endowment funds	334,457		313,374	293,526	301,911	290,465
Expendable endowment funds		28,919	28,639	25,963	26,265	24,969
Restricted funds		4,616	4,809	4,370	4,042	2,952
Unrestricted funds		476	469	1,322	1,167	645
	368,468		347,291	325,181	333,385	319,031

• Resource for London and Bellingham income and costs are all under these headings ** Previously combined with gains on assets for own use

This page does not form part of the audited accounts

Budgeted drawdown from capital 11,594 9,591 7,358 7,776 5,979

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

History

On 10 August 1878, a Royal Commission was appointed to investigate the parochial charities of the City of London. Its report resulted in the City of London Parochial Charities Act, 1883. This Act provided that the five largest parishes should continue to manage their own charitable endowments, but that the bulk of the remainder should be administered by a new corporate body, to be known as the Trustees of the London Parochial Charities, with perpetual succession and a Common Seal. The Act further provided that the Charity Commissioners should prepare Schemes for the proper application of these funds. It defined the area of benefit as the City of London and the Metropolitan Police District of London, the largest boundary definition available for Greater London. The outcome was a Scheme promulgated on 23 February 1891 which brought all the endowments together into two funds, a City Church Fund and a Central Fund. Together these constituted the City Parochial Foundation, with the Trustees under the 1883 Act serving as the Foundation’s Central Governing Body.

The assets of the City Parochial Foundation derive from the philanthropy of the people of London. Around 1,400 separate charitable gifts and bequests, some of them 400 years old, were held by the 112 parishes within the City of London, to be used for the benefit of the churches or, more often, the poor of those parishes. During the 19th century, the City grew to be a world financial centre and the income of these charities, many endowed with City properties, rose substantially. In contrast, the number of beneficiaries fell. Some parishes had no residents at all.

In 1986 the City Parochial Foundation became the Trustee of the Trust for London. At the outset the Trust was endowed with £10m derived from the sale of the Greater London Council’s assets. It targeted small locally based community organisations which were independent of larger bodies.

The City Parochial Foundation was governed by the 1891 Central Scheme and various subsequent amending Schemes and orders.

At 1 January 2002 a single Common Investment Fund was established by City Parochial Foundation to pool the investment assets of the Central and City Church Funds and manage the endowment in a more effective and efficient manner.

The entitlement of the two participating funds in the Combined Fund at 1 January 2002 was 60% Central Fund and 40% City Church Fund, such proportions being settled by reference to the ten year historical average of distributable income of each fund prior to that date. The entitlement of the two funds may change over time.

City Parochial Foundation adopted the total return approach with effect from 1 January 2003.

By an Order of the Charity Commissioners dated 31 December 2004, the City Parochial Foundation Trustee, a newly created charitable company limited by guarantee, was appointed as the trustee of City Parochial Foundation.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

This change took effect from 1 January 2005 and the Trustees serving on the Foundation’s Central Governing Body on that date became Directors and Trustees of the new company. This company was also appointed as trustee of Trust for London with effect from 19 February 2005 in place of City Parochial Foundation by a similar Order of the Charity Commissioners.

At 1 January 2010, all the assets and liabilities of the Trust for London were transferred to City Parochial by an Order of the Charity Commissioners dated 11 December 2009.

As from 26 March 2010 the Central Governing Body was renamed the Board.

Trust for London continued its separate grant making programme under an indemnity from the Foundation until 30 June 2010 when the two grant programmes were combined, within the Central Fund, under new unified grant guidelines. All the entities were rebranded as at 1 July 2010. City Parochial Foundation Trustee was renamed Trust for London Trustee, City Parochial Foundation was renamed Trust for London and the former Trust for London was renamed The London Trust.

In September 2013 an order was obtained from the Charity Commission giving permission for a loan facility agreement to be made between the Common Investment Fund and the Central Fund in order to enable the Trust to manage better its internal cash flow.

The Trust celebrated its 125th anniversary in 2016 and after thirty years in Middle Street moved to new office premises in Chiswell Street in 2018.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Trustees, Co-opted Members, Officers and Advisers

The Trustee of Trust for London is the Trust for London Trustee whose board members, up to 25 June 2021, and nominating bodies are listed below:

----- Start of picture text -----
Nominating Body Trustee Committees
----- End of picture text -----

Nominating Body	Trustee	Committees
Trust for London	Peter Baxter	A,G,Sec
	Andrew Brown	A,E,G
	Stephen Burns	E,G
	Grey Collier	G,Sec
	Alexandra Doyle	G,Sec
	Tara Flood	A,E,F,G,Go,Sec
	Jeff Hayes	A,E,F,G,Go,Sec
	Nigel Howell	A,E,F
	Denise Jospeh (appointed March 2021)	F
	Sue Logan (term ended December 2020)
	Meredith Niles	A,G,Sec
	Precious Sithole (appointed March 2021)	F
	Sonia Sodha	A,G,Sec
City of London	Rehana Ameer	G
	Alderman Sir Peter Estlin	A,G,F
	Alderman Alison Gowman	A,E,G
Church Commissioners	Dr Joanne Woolway Grenfell, Bishop of Stepney	G,Go,Sec
	Rosemarie Paul	G,Go
London Councils	Joseph Ejiofor (appointd December 2020)
Greater London Authority	Dr Onkar Sahota	G

----- Start of picture text -----
Key to Committees
----- End of picture text -----

Key to Committees	Key to Committees
A	Asset Allocation Committee	E	Estate Committee
F	Finance & Resources Committee	G	Grants Committees
Go	Governance Committee	Sec	Social Enterprise Committee

Co-opted Members as at 25 June 2021	Co-opted Members as at 25 June 2021
Asset Allocation Committee	Professor Vikrant Vig, Nick Peters, Luis Correia da Silva and Rebecca MacDonald (appointed December 2020)
Grants Committees	Mulat Haregot (term ended March 2021), Babette May, Adam Matan, John Colbert, Rickardo Stewart, Naomi Eisenstadt and Loraine Martins.
Estate Committee	Cliff Hawkins, Alison McDonald and Andrew Allen.
Finance & Resources Committee	Bernadette McKernan, Bims Alalade and Edward Lord.
Governance Committee	Sue Logan(appointed December 2020)
Social Enterprise Committee	Antony Ross (term ended October 2020), Luis Correia da Silva, Jonathan Page and Jem Stein.

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Annual Report and Consolidated Financial Statements 2020 of Trust for London

Key management personnel:	Key management personnel:
Chief Executive & Clerk to the Trustees	Bharat Mehta
Director of Finance & Administration	Carol Harrison
Director of Grants	Sioned Churchill
Director of Policy	Manny Hothi

Professional Advisers:	Professional Advisers:
Solicitors	Farrer & Co, 66 Lincoln’s Inn Fields, London WC2A 3LH
	Birketts LLP, 22 Station Road, Cambridge CB1 2JD
Property Investment Advisers - directly held portfolio	BH2 , 6, 7 & 8 Tokenhouse Yard, London EC2R 7AS HK London, 37-39 Lime Street, London, EC3M 7AY
Property Managing Agents	Savills plc, 33 Margaret Street, London W1G 0JD
Property Valuers	Cluttons LLP, 2 Portman Street, London W1H 6DU
Auditors	Crowe U.K. LLP, 55 Ludgate Hill, London, EC4M 7JW
Bankers	Lloyds Bank plc, 39 Threadneedle Street, London EC2R 8AU
Investment Managers	Aviva Investors Global Services Ltd, St Helen’s, 1 Undershaft, London EC3P 8DQ
	Cazenove Capital Management Ltd, 1 London Wall Place, London EC2Y 5AU
	CCLA Investment Management Ltd, Senator House, 85 Queen Victoria Street, London EC4V 4ET
	Lindsell Train Ltd, 5th Floor, 66 Buckingham Gate, London SW1E 6AU
	Newton Investment Management Ltd, 160 Queen Victoria Street, London EC4V 4LA
	Veritas Investment Partners (UK) Ltd, Riverside House, 2A, Southwark Bridge Road, London, SE1 9HA