2020-12-31-accounts

2020 ANNUAL REPORT and ACCOUNTS

JNF Charitable Trust Company Number 355248 Charity Number 225910

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The leading UK charity for Israel

Supporting

This Year and Every Year SUPPORTING ISRAEL FOR LIFE

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“a unique period full of unprecedented challenges”

Samuel Hayek Chairman of JNF UK

CONTENTS
CHAIRMAN’S REVIEW	4
WHO WE ARE (History, Heritage, Today)	5 – 6
OUR VISION	7
OUR STRATEGY (Vision, Selection, Involvement,	8 – 9
Investment)
CURRENT PROJECTS	10 – 33
STRUCTURE, GOVERNANCE, MANAGEMENT &	35 – 40
FINANCIAL REVIEW
INDEPENDENT AUDITOR’S REPORT	41 – 45
FINANCIAL STATEMENTS & NOTES	46 – 63
FULL LIST OF PROJECT COMMITMENTS IN ISRAEL	64 – 65
REFERENCE & ADMINISTRATIVE DETAILS	66

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CHAIRMAN’S REVIEW

Samuel Hayek, JNF UK Chairman

This report is different from all previous reports since it covers a unique period full of unprecedented challenges. 2020 saw the world affected by both the Coronavirus and their government responses to this highly contagious and dangerous disease. Israel was no exception, implementing three national lockdowns during the year to try and combat high infection rates, whilst continuing to manage the economy and those affected.

JNF UK made the strategic decision to postpone certain projects to free up much needed funds for more pressing challenges and concerns, pivoting and adapting to the “new normal”.

Our staff worked tirelessly to ensure that we continuously engaged with our partner organisations in order to provide advice and stay up to date with how they were responding to the situation.

I am not only proud of the help that we were able to provide, but also of the expertise and passion of our staff who are at the heart of what we do.

Despite the unprecedented nature of the crisis that engulfed the world, this document shows that JNF UK was able to respond positively, and this version is especially poignant due to the genuine impact we were able to have supporting families facing unimaginable circumstances.

Examples of some of the initiatives included providing financial support with over 480 grants through Matan (a social charity) and the Avrut Hadadit, fund that made emergency payments to families that suddenly found themselves below the poverty line. Project Connected proved its true value as it continued to support Holocaust survivors, providing 50 computers and teaching the relevant skills to ensure that they were not left alone or isolated. Delivering hope during Covid, JNF UK supported the SAHI volunteers (Special Hessed Unit) collect food donations, put together packages and anonymously drop them off to the hundreds of families who suddenly found themselves unable to put food on the table.

When Israel needed us most, JNF UK was ready to act and, in the 120 years since we were first founded, JNF UK remains as relevant and important to the development of Israel and its people as we have ever been.

Samuel Hayek Chairman

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WHO WE ARE

HISTORY AND HERITAGE

The Jewish National Fund/Keren Kayemet LeYisrael (JNF/KKL) was founded at the fifth Zionist Congress in Basel, Switzerland, in 1901. JNF/KKL was a passion-project of Theodore Herzl, who had borne witness to the horrors of European anti-Semitism first-hand. Herzl’s experience of oppression led him to propose the establishment of an organisation which aimed to purchase land for an independent Jewish state in Eretz Yisrael. JNF/KKL was founded on the principle of Jewish national self-determination and we have spent the last century living up to this ideal.

Various Jewish National Funds sprung up across the world over the following decades. In 1939, JNF Charitable Trust was registered as a charity in England and Wales. We are also known as JNF UK and operate under this name for day-to-day operations. JNF UK has been for several decades an entirely independent organisation to JNF/KKL in Israel.

One of the most enduring symbols of JNF UK’s dedication to supporting Israel’s growth and development is our highly regarded Blue Box. This small metal tin has sat on Jewish mantelpieces across the world for over a century and has enabled every member of the Diaspora to contribute towards the building of a Jewish homeland.

In the years following our inception, the original JNF was chiefly committed to laying the foundation stones for a functioning state. This early incarnation purchased land, drained swamps, boosted infrastructure and – perhaps most famously of all – planted trees. Over 250 million trees have been planted by JNF member organisations on Israeli soil over the past century. Alongside this, JNFs have also built over 210 reservoirs, created over 100 parks and developed over 250,000 acres of land.

As the world’s oldest charity dedicated to developing the land of Israel, JNF UK has made considerable environmental contributions. Now, our focus is shifting more towards sustainably and environmentally social and economic challenges facing the people now living in Israel’s peripheries, which we have made habitable and beautiful.

JNF UK TODAY

JNF UK’s dedication to the future of Israel is an on-going commitment. Over the past century we have evolved into an organisation that maintains and supports the peripheral in the Negev and Galil communities - including some we helped establish - whilst continuing to build and develop new ones .

Compared to Israel’s relatively well-developed centre, the country’s peripheries are considerably less prosperous. The Negev region in Israel’s south is where much of our recent focus has been. This vast desert region comprises 60% of Israel’s total landmass yet is home to barely 10% of its population.

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The Negev plays an integral role in the continuing story of Israel’s success and we actively support the vision of a thriving and flourishing desert. The land may be inhospitable, but the people and the communities most certainly are not. By partnering with local mayors, municipalities, communities and a plethora of grassroots organisations, JNF UK has been able to touch the lives of countless residents by developing and growing these communities. We have nurtured communities in the Negev, and more recently in the Galil, through special projects that bring people together, fostering the inspirational pioneering spirit of modern Israel.

Our operations span four separate but related organisations. JNF Charitable Trust continues to support Israel’s development through direct fundraising activities, including appeals and events, as well as our beloved Blue Box. KKL Charity Accounts, operating under the trading name SmartGiving, provides a charity accounts, fundraising platform and payroll giving service.

KKL Executor & Trustee Co Ltd manages JNF UK‘s legacy administration, offers will drafting assistance as well as power of attorney and executorship . JNF UK Israel Limited is the executive branch in Israel responsible for identifying, executing and overseeing projects in Israel to the highest standards.

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OUR VISION

JNF UK’s original vision was the creation of a Jewish homeland in the land of our forefathers. Following the fulfilment of that vision with the establishment of the modern state of Israel in 1948, JNF UK has played its part in the continued development of this nascent country, which has flourished into a tolerant, multicultural, liberal democracy .

Israel has established itself as a true pioneer in many different fields, not just regionally but also globally. That it has managed to do so despite the immense challenges it has faced is nothing less than extraordinary. Alongside the constant external threat of danger, Israel also faces an ongoing internal challenge that does not gain the recognition it requires; a lack of viable living space.

Today, the population of Israel is just over 9 million. With the fastest growth rate in the developed world, that figure is increasing rapidly. By 2048 it is set to hit 15 million. Last year alone, over 33,000 immigrated into the country - the highest annual figure in over a decade. If all these new Israelis are to thrive, then urgent action is required.

We are at the forefront of making sure that this is realised and actioned. Every day, donations from our supporters are rejuvenating the parts of the country that have largely been ignored. JNF UK projects provide education, healthcare, employment, culture, environmental sustainability and more. Our vision is that places like the Negev and the Galil will play a key role in the development of Israel in the 21st century.

The plan is as ambitious as it is vital. Israelis should be just as able to successfully raise a family in Yerucham as in Jerusalem, just as able to build a career in Mitzpe Ramon as in Tel Aviv. It might seem like another impossible dream – but every day, with the help of our supporters, JNF UK is making that dream a reality .

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OUR STRATEGY

Our strategy is based on four main principles :

HOLISTIC VISION

JNF UK adopts a holistic approach to its strategy, developing the Negev and Galil, town by town, in conjunction with local mayors and municipalities. By focusing on varied projects all within the same area over a long period of time, the progress and changes we make are more than the sum of its parts.

An across-the-board effort in each town helps enhance life for different social groups, improving the overall quality of life for the entire town. For example, in Kiryat Malachi, we are achieving our goal of increasing the standard of education and giving the same opportunities to children in this peripheral town as children in the centre of Israel; renovating all the municipal kindergarteners in the city and now starting to renovate the schools.

We are investing in the town’s young adults too by providing them with greater options when it comes to higher education, employment training, and social and cultural activities, through the new Ottensooser Young Adult Centre.

We are supporting their welfare projects including improving the quality of life and restoring the dignity of some of the poorest families by renovating their homes.

We are also increasing the sense of pride the residents have for their town by renovating the entrance to the town, developing the promenade and building a park. By planting trees, we are uplifting the environment and bringing much needed beauty, shade and greenery.

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OUR STRATEGY (CONT)

PROJECT SELECTION

In the business world, investments look to make the greatest impact while achieving the best possible value for money.

By adopting this principle, JNF UK is looking for and investing in projects that make the largest social and economic impact on the local community in the most efficient way. In a normal year, JNF UK assesses hundreds of applications from people and organisations who know better than anyone what the needs of their communities are. We rigorously assess the candidates in order to select the best projects, before supporting them from planning through to completion.

The challenges presented by Coronavirus in 2020 meant that we had to temporarily change our approach by assessing and supporting short-term projects that would have the greatest and most immediate impact.

DIRECT INVOLVEMENT

JNF UK is more than just a grant giving organisation - we are directly involved in all stages of the project, ensuring it is running as efficiently and effectively as possible.

From architects and budgeting at the planning stages through to cutting the ribbon upon completion, JNF UK is there to offer professional advice and supervision to those we work with, to ensure the community gets the best possible results and that the funds entrusted to us by our donors are well spent.

We are proud of our “added value” – the support we bring to projects in the form of financial and strategic advice, raw materials and teams of enthusiastic volunteers - that make each pound donated to JNF UK go further.

SOCIAL INVESTING

At its core, JNF UK’s long-term social impact strategy looks at projects that will not only generate social, economic and cultural benefits, but will also, in the future, generate income that JNF UK can reinvest in more projects.

As the modern world is changing, so too is the world of philanthropy. JNF UK is now looking at long term social impact projects (commonly referred to as “impact investing”) to ensure we can continue doing our life-changing work well into the future.

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OUR STRATEGY (CONT)

At JNF UK we understand that infrastructure is more than just roads and power stations. If a new generation is to make its home in the Negev or Galil it must feel it is possible to build a fulfilling life in Israel’s peripheries. JNF UK is at the forefront of achieving this.

For example, employment opportunities in Mitzpe Ramon were rare outside of the field of tourism and education. That was until JNF UK initiated the Business Valley – a contemporary office space to attract companies to open branches in Mitzpe Ramon.

Following its opening in 2018, it has created high quality job opportunities for local residents in a variety of fields to which they would not otherwise have had access. The investment attracted a large advertising firm, McCann, to the Business Valley that employs some 50 residents. During the pandemic these residents were able to work from home - something that many others in the area were not able to do.

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CURRENT PROJECTS

JNF UK supports a wide array of different projects, primarily in the Negev region of Israel. Without the support of our generous donors and volunteers, many of the projects we support would not exist. The diversity of Israeli ingenuity, innovation and resourcefulness are reflected in the many inspiring projects in which we are proudly invested and involved.

These projects cover a broad range of fields and are often situated in the same location. This is part of our belief that citizens in the peripheral regions should have access to the same opportunities and experiences as those in the rest of the country. By holistically improving every aspect of life in specific towns and cities, we are also helping those places attract new residents and investment.

SHOWCASING OUR WORK

To showcase these different aspects of our work, we have categorised the following projects in three different ways.

Firstly, we have a category looking specifically at JNF’s Covid-related work in 2020, looking at the fundraising work we did and the impact this had on those who needed support during this difficult time.

Secondly, we have highlighted a pair of towns in order to show the quantity and quality of work as part of our holistic vision of improving the overall quality of life in the locations we support.

Thirdly, we have placed the remaining projects into themed categories (health, welfare etc) in order to demonstrate the sheer breadth and diversity of the areas and sectors that we have an impact in.

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CURRENT PROJECTS (CONT)

COVID-19 AND JNF UK

Unsurprisingly, the effects of Covid-19 and the social restrictions it triggered had a considerable impact on our work in Israel. Our on-the-ground staff were in constant contact with our partners, helping them to assess the ongoing, changing circumstances and respond appropriately .

Many of our projects are construction based (ie building or renovating) and these updated projects (from the 2019 Annual Report) reflect the inevitable delays to their estimated times of completion.

Other projects consist of us supporting pre-existing organisations on the ground who have a specific social goal that they work towards. In many cases, these groups were able to pivot and adjust - often with our support - to continue work during the pandemic, dealing with increased demand or utilising their skills to help with the fallout of Covid .

Some examples of these initiatives included Yad Tamar who pivoted to providing social relief and support for families affected by the Covid virus; SAHI volunteers who collected and delivered food packages to those in need; and Tenufa Bakehila who despite restrictions still managed to renovate over 100 homes in the South, improving domestic living conditions during this period.

As well as our direct engagement with Covid-19 in Israel, we were also actively fundraising here in the UK. As soon as the crisis began, JNF UK launched an urgent appeal to support the Israeli charity Latet, who at the time were running a national campaign to distribute food parcels to the elderly in need, so that they did not leave their homes and risk exposure to the Coronavirus. As a result of the funds raised and as part of a larger project, JNF UK distributed over 650 food baskets in the Negev and Galil over a three-month period.

In September 2020 we approved funding to support Matan (a social charity) that established a fund called Arvut Hadadit (The “Israel Solidarity Fund”). This fund made emergency payments to Israeli families who suddenly found themselves below the poverty line due to Covid. The unique aspect of this campaign was that all the recipients had never previously required welfare support before. Over 480 grants were generated due to our support throughout the Negev and the Galil (up to Sept 2021). In early 2021, JNF UK provided additional funding to this project through funds raised during our Green Sunday appeal.

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CURRENT PROJECTS (CONT)

Through our annual Rosh Hashanah appeal, JNF UK again raised funds to help combat the effects of the pandemic in Israel which had a devastating impact on Israel’s most vulnerable citizens, especially in the underdeveloped peripheries. Too many are trapped in dilapidated homes, struggling with health problems, or unable to even feed themselves and their families.

The appeal focussed on three key areas, hunger, illness and poverty. Donations went to those working on the frontline, for example by giving extra funds to those running soup kitchens or tradespeople improving dilapidated homes during a time of mass quarantine.

JNF UK’s partner organisations are on the frontline of this national crisis, working harder than ever before to meet the unprecedented demand they are facing.

Further information on some of these specific and other projects where JNF UK is making a difference, can be found later in this report.

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CURRENT PROJECTS (CONT)

COMMUNITY SPOTLIGHT: YERUCHAM & KIRYAT MALACHI

YERUCHAM

Founded in 1951, Yerucham is a development town South East of Be’er Sheva with a population just shy of 11,000. This town is a perfect example of how JNF UK, working in tandem with local authorities, can help support positive change through long-term holistic investment.

Yerucham is not short of challenges: there are high levels of social deprivation, much poverty and a lack of infrastructure. As well as this, it is a great distance from the centre of the country, making it harder to attract new residents.

Nonetheless, JNF UK’s investment has helped to grow the town by 10% in the last five years, whereas previously the population was actually decreasing. Below is a closer look at how we are helping to regenerate Yerucham.

Earl Childhood Education y

Yerucham is home to over 2,000 children aged between new-born and nine, mostly from lowincome families. JNF UK identified that the basic needs of children were not being met due to a lack of early years infrastructure in the town.

In 2019, JNF UK began equipping a new day-care facility which is being built by the local municipality. This construction project that would not have been possible without our backing. While completion was delayed in 2020 due to Covid, it is due to be opened in 2021.

This represents JNF UK’s latest addition to Yerucham’s educational infrastructure. Between 2017 and 2019, JNF UK renovated 15 nurseries which are attended by around 500 children – roughly a quarter of all children in the town.

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CURRENT PROJECTS (CONT)

Ex ansion and Renovation of Yerucham Music Conservator p y

Yerucham’s Music Conservatory was old and too small to meet demand. It was run down and an unattractive place to study and play music.

Jointly with the young and dynamic centre manager, JNF UK built a plan to expand and modernise the conservatory to bring it into the 21[st] Century. The initial renovation work was completed in 2018 and the construction of the new wing was completed in 2020.

The Conservatory is now open and experiencing growing use as social restrictions continue to be lifted.

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CURRENT PROJECTS (CONT)

Develo ment of the Entrances to the Town p

As part of the long-term strategic plans for Yerucham, many new neighbourhoods are being built.

JNF UK is assisting the municipality by developing the entrances to the town and helping to beautify its public spaces to attract new families to live there and to give the town’s reputation a boost.

JNF UK is supporting this project by building a park lined with trees and bushes, installing an observation point, some cycle paths and new pavements.

The development work started in 2016 but was delayed due to the discovery of some significant archaeological findings. Work resumed at the end of 2018 and has continued throughout 2019.

Despite delays due to the Coronavirus, most of the work has been completed and the entrances are expected to be finished in 2021.

Ex andin the Senior and S ecial Needs Em lo ment Centre p g p p y

JNF UK’s vision is that the development of Israel’s peripheral regions should benefit everyone. One particularly powerful example of this is the unique Senior and Special Needs Employment Centre in Yerucham. This is a working factory that has been modified to provide employment for the elderly and those with physical and mental disabilities. Not only does this help tackle the high unemployment rate in the town, but it also provides a variety of positive benefits such as a sense of self-worth and belonging, as well as enabling the workers to draw a salary.

However, as the factory building has not been renovated since 1999, it no longer meets current standards and needs to be further adapted. The building is also too small and crowded, resulting in a waiting list of up to two years for potential new employees.

JNF UK is therefore assisting the local council in expanding and improving the building, including building an accompanying warehouse, a dining room and a reinforced bomb shelter. The increased size also means that the factory will be able to double the number of employees, up to around 100.

Covid delays mean the completion date has been pushed back to late 2021.

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CURRENT PROJECTS (CONT)

KIRYAT MALACHI

Kiryat Malachi is a development town in the south of Israel with a rising population of 24,000, including many Olim from Ethiopia and the former Soviet Union. The town suffers from a severe lack of resources and infrastructure.

As part of JNF UK’s holistic approach and to encourage social mobility, we have selected several projects to improve education, increase business opportunities and employment to give residents better prospects.

Develo ment of the Entrances into the Town p

The main entrance to Kiryat Malachi was dilapidated and shabby. Close to a major highway, the neglected area gives the impression that the town is rundown and impoverished. JNF UK is renovating the two main entrances to the town and building an adjoining promenade.

As well as the aesthetic improvement, the new greenery will also have environmental benefits for this development town.

The work was set to be completed in the second half of 2020. However, it has been delayed due to Covid, but is making progress and will be completed in 2021.

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CURRENT PROJECTS (CONT)

Renovation of Kindergartens

Giving children a good start in school gives them a good start in life. If a child’s first experience of education is in a bright, happy and clean nursery, it helps them associate learning with comfort and happiness. Unfortunately, Kiryat Malachi’s old kindergartens have fallen into disrepair.

In 2015, JNF UK initiated a plan to renovate kindergartens across the city to ensure that every child has access to good quality facilities. This ambitious project involves significant planning as well as renovation work inside and outside the kindergartens, including painting and decorating, fitting air conditioning units, repairing roofs, fixing toilets and installing playground equipment.

Due to the quantity of kindergartens that need renovating and the process slowing down as the buildings are in use for most of the year and therefore inaccessible, this is an ongoing plan that will take several years to complete.

In 2020 Covid restrictions also caused further delays meaning planned work was put on hold until 2021.

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CURRENT PROJECTS (CONT)

House of Excellence

The “House of Excellence” is a new model of educational support for all teenagers (including those at risk) from Israel’s peripheries who are in danger of dropping out of the education system without reaching their full potential or meeting basic scholastic standards.

As well as aiming to close the educational achievement gaps between the central and the peripheral regions, the project also provides a response to an urgent need for scholastic enrichment and community leisure facilities in Israel’s underdeveloped cities.

Each state-of-the-art building comprises various learning spaces and relaxation areas equipped with a variety of educational and multimedia resources to encourage creative learning. Teenagers can access the House after school hours, free of charge, for additional help in core subjects such as English, Mathematics and Science, as well as classes in hi-tech, technological entrepreneurship and innovation. In contrast to formal education frameworks, activities at the House are held in small groups, using innovative learning techniques, simulation games and meetings with professionals from various sectors.

The House of Excellence also provides an important place for a wide variety of group activities, where young people can meet, widen their social circles and develop social cohesion and interpersonal skills in a fun and invigorating atmosphere.

Despite the challenges of Covid-19, a new House of Excellence opened its doors in September 2020 benefitting hundreds of students from the services on offer.

MEDICAL

Refua v'simcha (Health and Happiness)

Refua V’simcha is a charity providing services to improve the conditions of patients in need.

The services on offer include respite care for disabled children, activities for hospital patients and residents of care homes, weekly food parcels for low-income families and a free transport service to help people requiring ongoing treatment such as dialysis, rehabilitation and chemotherapy.

Thanks to JNF UK’s generous donors, we have been able to provide ongoing support to Refua V’simcha so they can continue to offer their services to more people.

This was especially important in 2020, with a huge increase in demand for services due to Covid-19.

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CURRENT PROJECTS (CONT)

Marianne's Earl Childhood and Famil Centre y y

Marianne's Early Childhood and Family Centre is an NGO that provides all the early childhood services in the city of Kiryat Gat, including day care as well as specialised services for children with ADHD, autism and other similar conditions.

The unit provides over 4,000 treatments annually to over 300 children from Kiryat Gat and the wider region. With six different treatment rooms, it is the only facility of its kind in the area. Their portfolio includes the Therapeutic Unit, where paramedical treatments are provided in the fields of language and communication therapy, occupational therapy, emotional therapy and physiotherapy.

With high demand, and a significant waiting list, JNF UK is assisting in expanding the Therapeutic Unit by building a second floor. The plan is to treble the number of treatment rooms by adding 13 additional rooms, as well as building a therapeutic outdoor playground. Planning and permits were approved in 2020 and albeit construction was initially delayed due to Covid, work commenced at the start of 2021.

Yad Tamar

Established in 2009, Yad Tamar aims to assist cancer patients and their families by helping strengthen their emotional wellbeing and economic stability.

Their HUG Model (Help. Understand. Give.) for patients suffering long-term illness, draws upon the goodwill of the community to provide support. It empowers the extended community to become the front line of support, in a way that is kind, effective and nonintrusive. The model aims to reach hundreds of communities over the next decade.

JNF UK has continued its on-going support of Yad Tamar extending this model to six new communities in the Negev region and paying their running costs as part of a long-term commitment to keep expanding the reach of the organisation.

Their model of work was hugely beneficial during 2020, when the charity pivoted to providing social relief and support for families affected by the Covid virus.

WELFARE

Tenufa Bakehila (Building Hope)

Tenufa Bakehila transforms the lives of people living in some of the most socio-economically challenged towns in Israel.

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CURRENT PROJECTS (CONT)

They assist families and individuals living in appalling conditions, in dangerously dilapidated homes and helps them overcome their difficulties. The project’s professional tradesmen and volunteers fix any problems in the home, while dedicated social workers address the wider issues preventing families from standing on their own two feet.

JNF UK has been supporting this project since 2017, with these services being provided in Sderot, Kiryat Malachi and Ashkelon. In 2019, we enabled Tenufa Bakehila to assist 150 families.

Covid-19 presented a big challenge, but also a considerable opportunity for Tenufa Bakehila. Despite the difficulty of the situation, they still managed to renovate over 100 homes in the South. With so many people spending so much time indoors during the lockdowns, improving domestic living conditions became even more important, as it was now also impossible to remove families for several days to complete large-scale renovation work.

In response to this, Tenufa Bakehila launched several new initiatives. It started a hotline that assisted over 2000 families, either by providing DIY advice over the phone, or by directing them to other bodies who could provide aid or assistance. They also pioneered an “Emergency Repair-Mobile”, that could quickly respond to enquiries and visit homes that needed urgent repairs.

The organisation effectively pivoted to being a one-stop-shop for people trapped in their homes, and the impact of their work was officially recognised by the Israeli president.

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CURRENT PROJECTS (CONT)

Moadoniot (after-school clubs) in Hatzor Haglilit

Moadoniot are a nationally proven alternative to removing children from their family home when they come from at-risk families.

In Hatzor Haglilit, JNF UK is supporting two clubs. Each is a safe and welcoming ‘home’ for up to twelve children, aged six to eleven, for five days a week. All children receive hot meals, help with homework and partake in stimulating leisure activities in a protected environment. Such activities are hugely important for these children, who thrive from the interaction it provides.

JNF UK committed to renovating and upgrading both club buildings, which include decorating, renovation of kitchens and bathrooms and installing a fire exit and fire detection systems.

Renovation of the two clubs was completed in 2020 and are now fully operational and in use by children who are flourishing in their new environments.

Elderl Da Care and Treatment Centre y y

The town of Sderot currently has around 2,500 elderly citizens, many of whom benefit from access to the Elderly Day Care and Treatment Centre.

The Elderly Citizen Day Care Centres constitute daytime frameworks for senior citizens residing at home who require personal assistance. Each Centre enables them and family members to receive support services, preventing (or at least postponing) transfer to a retirement home.

The Sderot Centre provides a wide range of services, from assistance with personal care to group activities, designed to stimulate those who use the Centre. It is housed in a dual-purpose building, used in the morning as the Centre, and in the evening as a senior citizens’ club.

Despite the exceptional care the Centre provides, the building itself is small, old and not particularly well-suited for this role. Because of the building’s small size, the Ministry of Social Affairs has limited the license to 50 people per day and as the Centre is at full capacity, there is a long waiting list.

Sderot does not have facilities for sufferers of dementia and, as such, people have to stay at home with no acceptable support.

The local municipality is going to construct a new centre, which will not only be able to accommodate 80 senior citizens per day but will also have a new section to provide specialised treatment to 15 patients with dementia. This new centre will also include many new rooms which will enable it to provide more activities for Sderot’s senior citizens.

JNF UK is assisting with the construction, which, despite the impact of the Coronavirus, will be completed in 2021.

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CURRENT PROJECTS (CONT)

HOLOCAUST SURVIVORS

Project: Connected

Israel is home to the world’s largest Holocaust survivor community. Still scarred by the horrors they experienced over 70 years ago, sadly many now face financial hardship and extreme solitude.

Through Project Connected, JNF UK is working hard to tackle the problem of loneliness by bringing teenagers and survivors together, allowing them to form special and lasting relationships.

JNF UK has purchased more than 50 computers for survivors, as well as covering the cost of internet connection for two years for each one. Alongside this, we arranged for young teenage volunteers to visit their homes to teach them how to use a computer, utilise various programmes (Word) as well as navigate the internet and social media (Google and Facebook).

The project helped this community acquire new skills, but, more importantly, helped connect them to the outside world and the wealth of information and entertainment the internet can provide.

It was in 2020 that this project truly proved its value.

While the young volunteers could no longer physically visit the survivors, they spoke to them regularly via Zoom meetings. This would not have been possible without the equipment and confidence the survivors gained via the project. In general, while many elderly people across the world struggled with total isolation, members of Project Connected were at least still able to use modern technology to stay connected with others.

Our commitment will conclude in 2021, later than expected due to Covid-related delays.

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CURRENT PROJECTS (CONT)

Living in Dignity

Since 2011, the Foundation for the Benefit of Holocaust Victims in Israel has renovated more than 1,750 privately-owned flats for Holocaust survivors in need, making them more suitable for elderly survivors who are not as physically capable as they used to be.

These renovations, which usually take between three days and two weeks, include making the flats wheelchair accessible, installing safety accessories, transforming baths into walk-in showers and fixing plumbing and electrical hazards.

JNF UK committed to assist in funding the renovation of 90 flats.

Whilst this was due to be completed by the end of 2020, the Coronavirus made this impossible, as those living in these flats were the most vulnerable to the virus and therefore had to have zero contact with external people such as plumbers and electricians.

The renovations will now be completed in 2021.

Immediate Assistance Fund

Despite Israel’s government offering financial aid to Holocaust survivors who live below the poverty line, around a quarter of survivors are still struggling as their monthly pensions and other welfare payments are unable to cover any unexpected costs. The Foundation for the Benefit of Holocaust Victims operates an Immediate Assistance Fund that can step in to provide financial help when needed.

This help includes providing basic household equipment such as radiators, blankets, electrical appliances, beds, refrigerators, washing machines and air-conditioners, purchasing medicine, making payments for water or electricity bills and helping with daily expenses during times of hardship.

In 2020, together with JNF UK, the Foundation for the Benefit of Holocaust Victims and the Immediate Assistance Fund, supported 100 vulnerable survivors.

Monthl Food Basket : SAHI y

The SAHI model (Special Hessed Unit) is built around engaging teenagers from challenging backgrounds who take responsibility for their lives whilst also helping others by volunteering.

JNF UK is working in partnership with the charity SAHI to combat food poverty in Israel, including amongst Holocaust survivors. The two organisations are working together on a pilot

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CURRENT PROJECTS (CONT)

initiative to locate 150 vulnerable Holocaust survivors in the South of the country who would benefit from a regular monthly food package.

Several groups of volunteer teenagers are responsible for collecting and delivering food packages to those in need, including the elderly, and this new pilot scheme would therefore be part of this existing mission.

Never has this simple model been more needed than during the last year, when hundreds of families who suddenly found themselves unable to put food on their tables, were thrown a lifeline by the amazing SAHI volunteers.

The project commenced in October 2020 and will be completed in October 2021.

ENVIRONMENT

Urban Forests

Over the past century, JNF organisations have planted over a quarter of a billion trees across Israel, turning barren wastelands into thriving forests.

JNF UK recently switched our attention to “urban forests” – the planting of mature trees in towns, cities and communities across Israel’s Negev and Southern district. Urban forest projects provide an abundance of benefits. They help purify the air, beautify an area and

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CURRENT PROJECTS (CONT)

provide much needed shade and shelter from the sweltering desert sun across public pathways, parks and schools.

Each urban forest project is unique and often involves more than just planting. Often, we will also irrigate the land, lay grass, landscape and add seating areas.

In 2020, JNF UK continued developing various urban forests around the Negev including in Yerucham, Kiryat Malachi, Mitzpe Ramon and Bnei Dekalim.

Some of these urban forests are part of larger projects. For example, in Yerucham and Kiryat Malachi, JNF UK is updating the town entrances which includes the addition of tree-lined paths and parks.

Whilst Covid-19 reduced the amount of planting in 2020, we will continue to contribute to new and existing urban forests in the years to come.

Public Park in Beit ann J

The Druze village on Mount Meron in northern Israel suffers from a lack of public spaces such as parks and playgrounds. The closest recreational space is only reachable only by car. As many of the female residents do not drive, this means they lack the opportunity to access these facilities for their children and the ability to meet other mothers.

JNF UK is funding the development of a new park which will include playgrounds and picnic tables and will be a place where families can connect and children can play.

Most of this project was completed in 2020. The final stage of the project is reliant on governmental funding but, due to the recent unstable political situation, it has been put on hold until 2022.

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CURRENT PROJECTS (CONT)

LONG TERM SOCIAL IMPACT

The Valle NF UK Roburn Business Centre y (J )

Encouraging companies to relocate to the south is a key aspect of JNF UK’s vision for the Negev. An influx of new businesses, new opportunities and new talent is key to reinvigorating this flagging region.

With the vision of creating job opportunities in the Negev, JNF UK constructed a state-of-theart Business Valley in Mitzpe Ramon named after John Roburn, a JNF UK donor.

The Centre, which opened in early 2018, now provides office space for firms active in digital marketing and new media. The Valley has already attracted a Fortune 500 company, global advertising agency McCann. The presence of such a prestigious company will encourage other firms to see the potential in Mitzpe Ramon and look to locate to the region, bringing more high-paying jobs and further disposable income.

While in 2020 the staff had to work from home due to Covid, they were still able to keep providing for their families - highlighting the benefit of adding new high-quality jobs to the region.

Flats for New Olim

The development of the state of Israel relies heavily on new immigrants (‘Olim’ in Hebrew). Their contribution to the social, economic and demographic welfare of Israeli society is paramount to ensuring the state of Israel continues to flourish and succeed.

Settling in a new country is challenging and often after a few years many Olim return to where they came from.

JNF UK identified that offering accommodation at subsidised rates would ease the process of establishing oneself in a new country and to this end purchased a number of flats to rent out.

The income generated will be invested back into JNF UK’s projects, making it a win-win solution for JNF UK, the new Olim and the development of the state of Israel.

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CURRENT PROJECTS (CONT)

Orr Shalom House

Orr Shalom is a not-for-profit organisation that provides foster homes for neglected or at-risk children.

The standard model is that a family will take in up to 12 foster children at a timewhich means that they will require a large house renovated specifically for the task. In most cases the family will be in rented accommodation which leaves them vulnerable to rent increases or being asked to leave by the landlord, resulting in them then having to find a new property large enough to accommodate the extended foster family.

JNF UK helped to alleviate this issue by purchasing and renovating a foster home in Ashkelon in July 2019.

Since then, the building has continued to house a family with foster children, providing them with a loving, stable environment, whilst also generating rent for JNF UK which is then invested into other projects.

MindCET Flats

MindCET is a hub of innovation and development in the field of education technology (EdTech), pioneering the use of the latest technology to benefit the world of teaching. One of the ways that MindCET fosters creativity is by running a bi-annual, six-month intensive programme for EdTech entrepreneurs, who work on a specific research and development project at their campus in Yerucham.

The programme supports participants along the way by offering workshops and experienced specialist advice in areas such as product development, design, user experience and usability testing.

Those accepted onto the programme receive a scholarship as well as subsidised accommodation in Yerucham.

JNF UK purchased flats which have been renovated to an ultra-modern high specification as the accommodation previously on offer was substandard and detracted people from applying to the programme.

Not only do the flats help to attract young talented individuals on the programme, but this inturn also helps to invigorate Yerucham’s population as programme participants integrate themselves and their families into community life there.

Alongside this, the rent that JNF UK generates can be reinvested into other worthwhile projects.

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CURRENT PROJECTS (CONT)

OTHER

JNF UK works in so many different fields that some of the projects are not easily categorised. They are included here to further emphasise the range and scope of JNF UK impact.

Derech Eretz Youth Pro ramme ( g )

Derech Eretz is a leadership programme aimed at developing the capabilities of teenagers from Israel’s social and geographic peripheries.

The programme inspires participants to take responsibility for their lives, laying the groundwork for a life of personal fulfilment, success and giving to the community.

JNF UK has an ongoing commitment to the operational and capital costs of the organisation.

Since its establishment in 2011 and with the support of JNF UK, Derech Eretz has gone from strength to strength. To manage the growing demand, JNF UK supported the development of a 4[th] new campus, with each of the campuses now responsible for around 40 participants each year.

Albeit in 2020, social restrictions had a significant impact on the running of Derech Eretz, 160 students graduated from the programme - the highest annual figure so far.

Although the Derech Eretz participants were not able to meet in person for much of the year, many of them kept the spirit of the organisation alive by putting their programme values into action during lockdown by volunteering and helping others.

DIY Volunteering Programme

Volunteers have played an integral role in the building of Israel and are a key component in the success of JNF UK’s work and the future of the Jewish state. As a result, JNF UK is promoting a professional volunteering programme across Israel.

This innovative scheme enlists volunteers to work on JNF UK projects and often involves the project beneficiaries as volunteers themselves.

The programme provides a means for young people to make an immediate and lasting contribution to Israel’s success, strengthens their connection to the land and helps develop their teamwork skills.

In addition, it enables JNF UK to make each pound donated go further by making great savings on labour costs.

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CURRENT PROJECTS (CONT)

Despite the Coronavirus, JNF UK still managed to organise nine different volunteering sessions in 2020.

Each session consisted of between four and eight days of continuous work, totalling 46 days altogether throughout the year. While the sessions were all similar in terms of the work carried out (ie manual labour renovating physical environments in order to improve living conditions for a local community), this benefitted a very broad range of groups.

In one case, volunteers at a kibbutz built a communal quiet space, complete with trees and a fountain, in order to commemorate a young member who had unexpectedly passed away. In another, the volunteers worked hand-in-hand with local Bedouins to help renovate an old school that would now serve as a base for a pioneering leadership programme to support and integrate this traditionally nomadic minority group into Israeli society. In another location, volunteers patched a hole in a mobile home to provide a safe and supportive space for children with autism to play.

All of these different activities show the value added by JNF UK’s volunteer days.

Gvahim

Every year about 20,000-30,000 new Olim (new immigrants) arrive in Israel, about a third of whom are classed as being highly skilled or having an academic background.

Despite Israel’s need for additional skills, research indicates that around 40% of these professionals will leave Israel within three years of making Aliyah due to a failure to meet their career expectations. The reality of the situation is that the more skilled and educated an immigrant is, the more likely it is that, ultimately, they will leave Israel and take their accomplishments, knowledge and experience elsewhere.

‘Gvahim’ is a not-for-profit organisation that offers Olim and returning citizens from all over the world the proper advice and guidance to integrate themselves into Israeli society, as well as promoting their professional skills and careers.

In the last year, the Covid-19 crisis has resulted in high unemployment rates and economic instability among Israelis. This has been especially true for new Olim, particularly those who were already looking for work.

In 2020 JNF UK helped to fund training courses and mentoring schemes to support Gvahim.

Despite exceptionally difficult circumstances, three quarters of Gvahim participants were still able to find a job thanks to the support they received.

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CURRENT PROJECTS (CONT)

Su ortin the Bnei HaManashe Communit pp g y

The Bnei HaManashe community aspires to move from India to Israel. Those who have already made Aliyah, live a traditional Orthodox lifestyle and take special pride in integrating and contributing to wider society.

The community in the northern city of Nof Hagalill, consists of 60 families representing approximately 250 people.

An old, rundown building was allocated to the community to serve as a multi-functional space for social, cultural and educational activities, as well as a place to exhibit the community’s unique heritage to local and national visitors.

In October 2020, JNF UK with the help of its supporters, renovated and equipped the building, providing a warm and inviting space for the community to enjoy, as well as funding an additional year of running costs.

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CURRENT PROJECTS (CONT)

CONNECTING UK JEWISH COMMUNITIES TO ISRAEL

Jewish communities in the UK are at the heart of JNF UK’s work.

A key part of our mission is fostering the strong relationship between these communities and Israel. In particular, we focus on showcasing the remarkable impact that their contributions to our campaigns and projects make.

Tri s and Missions p

Our day trips to the Negev take people to see a different side of Israel.

JNF UK introduces them to grassroots organisations, shows them the impact donations are having on local communities and gives them the opportunity to enjoy the beautiful scenery and visit historical sites.

Given the severe restrictions - not least to international travel - caused by Covid, there were no physical trips this year. However, several online Zoom events were arranged for our supporters, enabling them to visit Israel virtually with us from the comfort of their own homes.

Israel Education Grants and 6[th] Form Programme

Israel Education Grants

In 2018, JNF UK launched a four-year £1.2m grant campaign to help strengthen young students’ Jewish identity and connection to Israel through boosting Israel education programmes in Jewish schools across the UK.

This grant scheme is unique as it gives the schools the ability to shape the programmes in line with their curriculum and ethos and decide how the money is spent. The grants ensure that the schools deliver a diverse range of projects and activities to deepen young people’s association to Israel and show the important role they can play in the country’s future. Through learning about JNF UK’s projects in Israel, the pupils gain a better understanding of the importance of continuous development of Israel for the benefit of all Jews around the world.

In 2020, 16 primary and secondary schools, amounting to over 12,000 students, benefitted from these additional funds. The four-year programme has seen primary schools receive grants of up to £10,000 a year and secondary schools up to £50,000 a year to expand their Israel education programmes. In 2020 JNF UK conducted two major projects in schools. Firstly, before the Covid lockdowns, we ran our “Second Festival of Spoken Ivrit” bringing Israeli actors to the UK to give performances using age-appropriate Hebrew for both primary and secondary schools. Once the lockdowns were implemented, amongst other

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CURRENT PROJECTS (CONT) y

2,

Covid safe activities, we launched a competition for pupils to design colourful face masks. Over 1,000 children from 14 different schools submitted designs, three of which were made into actual masks and then distributed to school children in Israel.

6th Form Programme

September 2020 saw the launch of our secondary schools’ Year 12 programme. During students’ penultimate year of secondary school in preparation for university or work life, a programme of high quality, inspiration speakers was brought to the schools.

The programme with JFS and Yavneh College benefitted 69 students providing engaging speakers who enlightened students with an insight into Israel and JNF UK from several angles, including history, culture, politics and innovation. Speakers included Gideon Falter, Lyn Julius, Alex Vaskevitch, Dr Alan Mendoza and Baroness Deech.

Despite Covid challenges, the great success of this programme’s pilot year included very positive feedback from both teachers and students.

• …. a staple part of our 6th Form provision. There is certainly a demand …and the content is invaluable ….. (JFS 6th Form Jewish Studies Coordinator)

As a result of this feedback and positivity, we have been asked to expand our 6[th] Form programme to include additional Leadership Sessions. These sessions will look to provide the students with the confidence and skills needed to address challenges as strong advocates for the Jewish community, Israel and the projects that JNF UK supports.

…. an extremely insightful experience …. made a significant impact on me …. very enjoyable …. a greater extent of knowledge surrounding Israel and Jewish people…. (JFS 6th Form Pupil)

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CURRENT PROJECTS (CONT)

We are now looking forward to larger attendance in the next academic year for JFS and Yavneh College whilst further expanding the programme to additional schools in the next including Immanuel College and King David Manchester. This will boost our community outreach, broaden and promote the JNF UK connection to Israel by highlighting the projects and their outcomes which have daily and lasting impact on peoples’ lives.

These education projects (both the Grants and 6[th] Form programmes) are at the heart of how we must engage with future generations to strengthen and deepen their connection and ties with Israel as well as ensure that they are made aware of the huge impact and difference that the JNF UK projects make to the lives of the Israelis in the Negev and Galil peripheries.

The investment, building and roll-out of these programmes is the foundation on which we need to build and is key to raising JNF UK’s profile with the next generation, thereby securing our future donor base.

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STRUCTURE, GOVERNANCE, MANAGEMENT AND FINANCIAL REVIEW

Governin Document g

The company is a registered charity and a company limited by guarantee, without share capital, originally incorporated on 21 July 1939. It is governed by its Memorandum and Articles of Association, the most recent version of which was adopted on 21 July 2015.

A ointment of Trustees pp

As set out in the Articles of Association the Chairman and up to 2 Vice-Chairmen are elected by the members for a term of up to 3 years. Up to 2 Treasurers are appointed by resolution of the Trustees for a similar period. The foregoing (together with the Chairman of the Charity’s subsidiary KKL Executor & Trustee Company Limited) comprises the Honorary Officers of the Charity. They, together with up to 12 further Trustees, comprise the Board of Trustees of the Charity. One third of them must normally offer themselves for re-election each year.

The Trustees retiring by rotation are D Berens, A Mendoza and G Mond who, being eligible, offer themselves up for re-election. G Avshalom resigned as Trustee on 24 March 2020. A Kimche resigned as Trustee on 23 June 2020. L Julius was appointed as Trustee on 24 March 2020. T Kendal was appointed as Trustee on 23 June 2020. B Oakland was appointed as Trustee on 22 September 2020.

Trustee Induction and Trainin g

New Trustees undergo an orientation process to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction period they meet key employees and other Trustees.

Organisation

The Board of Trustees, which can have up to 19 members, administers the Charity. The Board meets not less than quarterly and there are sub-committees which meet more regularly. A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the charity.

Related Parties

KKL Charity Accounts Limited is a connected party as most of the board members of that charity are on the board of JNF Charitable Trust. Their results are consolidated into JNF Charitable Trust’s results. KKL Executor & Trustee Company Limited is a wholly owned subsidiary of the Charity and operates in facilitating a will writing and executorship service (in its capacity as a Trust Corporation) and the Charity’s legacy administration. JNF UK Israel Limited is a wholly owned subsidiary, which sources and manages the projects in Israel.

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STRUCTURE, GOVERNANCE, MANAGEMENT AND FINANCIAL REVIEW (CONT)

Internal Control and Risk Management

The Trustees have overall responsibility for the Charity’s systems of internal control that are designed by Senior Management to ensure effective and efficient operations, including financial reporting, and compliance with laws and regulations. In establishing and reviewing the system of internal control, the Trustees and Senior Management have regard to the materiality of relevant risks, the likelihood of loss being incurred and the cost of control. A risk assessment report and register of risks are produced and reviewed by the Trustees at least annually and key managers and staff have been consulted to ensure that all areas of risk are identified and managed appropriately.

The Charity is committed to a policy of identifying, monitoring and managing the risks that might adversely affect the activities in which it is involved. In this context, risk is defined as the potential for loss, financial and reputational, inherent in the environment in which the Charity operates and in the nature of the transactions undertaken. The Trustees believe that an appropriate review of risks is necessary, that risks are ranked and periodically reviewed, and that appropriate action is identified to mitigate the consequences of the risks. The Trustees believe that the principal risk faced by the Charity is the effect an economic downturn might have on our donors.

The Trustees have considered the potential impact of the Covid-19 pandemic, which has been spreading since early 2020, on the Charity’s activities. Like many other charities, the outbreak has caused and is going to cause some disruption to the Charity, including the adaptation to virtual events, cancelling certain events, staff working from home and some staff being furloughed. The Trustees understand that these issues are having and will have a detrimental effect on the Charity’s finances and have taken appropriate action on expenditure to mitigate the effects. The Trustees are confident that the Charity has adequate reserves and resources to continue its operations both in the UK and Israel for the foreseeable future.

The Trustees have resolved that project commitments are booked in Sterling to mitigate exchange risk with the Israeli Shekel.

The organisation is run on a day-to-day basis by the Chief Executive who is supported by a Senior Management Team consisting of the Executive Vice-Chairman, the Finance Director, the Head of Marketing, the Director of KKL Executor & Trustee Company Limited and the Head of the team based in Israel.

The Trustees and Senior Management Team are supported by the following committees:

• Finance and Management Committee. The Finance and Management Committee comprises several Trustees and selected members of the Senior Management Team. The Committee meets six to eight times per year and has been delegated by the Board certain decision-making powers. It also discusses all financial matters relating to the Group.

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STRUCTURE, GOVERNANCE, MANAGEMENT AND FINANCIAL REVIEW (CONT)

• Projects Committee. This Committee receives and considers requests for funding projects, deciding how the application fits in with the medium to long term plan of JNF UK and how much to allocate from both existing funds and potential future funds.

Criteria for the assessment of projects are contained in the Charity’s Project Criteria Policy and summarised as follows:

• projects should be in Israel and preferably in the Negev or Galil

• the contribution and support of JNF UK should make a significant difference to the success of the project

• the project and any partner organisations must satisfy JNF UK’s requirements regarding transparency and accountability

• the project must be charitable under UK law and adhere to any legal restraints

• the project can only be for charitable purposes as set out in the Charity’s Articles of Association.

• Projects should not be beyond the Green Line.

In setting its programme of funding each year, the Charity takes into consideration the Charity Commission’s general guidance on public benefit. The Trustees always ensure that the funding JNF UK undertakes is in line with its charitable objectives and aims.

• Education Committee. This Committee, consisting of Trustees and senior management, monitors the Israel Educational Grants Programme that is operated by KKL Charity Accounts (SmartGiving) on behalf of JNF UK.

Volunteers

JNF UK is grateful for the considerable contribution made by volunteers to its activities. As well as the expertise provided by lay experts on the Charity’s Board and Committees, which is hugely beneficial to the professional management of the organisation, JNF UK’s fundraising and operational activities are substantially enhanced by our loyal team of volunteers.

Financial Review

The full results for the year to 31 December 2020 are shown in the attached Financial Statements. The Consolidated Statement of Financial Activities set out on page 46 reflects all incoming resources.

Our total income reduced by 7% from the previous year to £15,411,000 (2019: £16,505,000). Donations have increased to £2,266,000 (2019: £1,800,000), an increase of 26%. Legacies reduced to £3,822,000 (2019: £6,603,000), a fall of 42%. KKL Charity Accounts income increased to £8,712,000 (2019: £7,627,000), an increase of 14%. Rental income from long term social impact projects increased by £108,000 (37%) to £398,000 (2019: £290,000). This was

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STRUCTURE, GOVERNANCE, MANAGEMENT AND FINANCIAL REVIEW (CONT)

offset by a fall in interest and dividends received. In 2020 the Charity claimed £84,000 (2019: £nil) of Furlough Grants from the UK Government.

The funding of project commitments in Israel showed a net credit £3,557,000 (2019: a net charge of £7,107,000). This was the result, as shown in note 3 on page 44, of the Charity approving new project commitments of £1,221,000 (2019: 6,206,000). Following the Covid 19 pandemic, the Trustees reviewed certain project commitments from earlier years and cancelled or postponed some totalling £5,334,000. Some commitments made in 2019 and earlier will either be met or reallocated to Covid 19-related charitable projects in Israel.

As a result, a surplus was generated of £8,630,000 (2019: deficit £902,000).

Fundraisin g

The Charity is actively involved in fundraising activities either through legacies, regular donations from individuals and corporations or fundraising events. Potential donors are approached by email, post, telephone or newsletter and are given the opportunity to opt out from receiving any fundraising communication from the charity. For this purpose, the Charity is regulated by the Fundraising Regulator.

During the year ended 31 December 2020, the Charity received one complaint about its fundraising activities and practices. In May 2020 the Trustees of JNF Charitable Trust were informed by the Fundraising Regulator that they had received a complaint about its fundraising activities. The complaint was investigated by the Fundraising Regulator, which, in May 2021, decided that the Charity was not in breach of its Code of Fundraising Practice and made no recommendations regarding further action by the Charity.

Reserves Polic y

It is the policy of the Trustees of the Charity to hold reserves against its obligations. The Trustees believe that a reserve equivalent to not less than 3 months operating expenditure should be held. The unrestricted reserves as at 31 December 2020 comfortably exceeded this level. Operating expenditure is defined as unrestricted expenditure less donations to projects in Israel net of support costs.

Investment Powers and Polic y

The Memorandum and Articles of Association empower the Charity to invest monies not immediately required for its purposes in such investments, securities or properties as may be thought fit. JNF UK holds its assets in long term social impact projects in Israel in order to earn rental income and provide an associated level of social and economic impact, bank deposits so that monies can be quickly sent to projects in Israel in accordance with the objects of the charity and some investments, including, in the past, where it has been bequeathed some properties where there is a life tenant.

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STRUCTURE, GOVERNANCE, MANAGEMENT AND FINANCIAL REVIEW (CONT)

Statement of Trustees’ Res onsibilities p

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

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the Trustees are required to:

• Select suitable accounting policies and then apply them consistently

• Observe the methods and principles in the Charities SORP

• Make judgements and estimates that are reasonable and prudent

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation

• State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the Charities Act 2011. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website, legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to Disclosure of Information to the Auditors

So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company’s auditors are unaware and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company`s auditors are aware of that information.

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STRUCTURE, GOVERNANCE, MANAGEMENT AND FINANCIAL REVIEW (CONT)

Auditors

A resolution proposing the re-appointment of Nyman Libson Paul LLP as Auditors of the charity will be put to members at the Annual General Meeting.

This report was approved by the Board on 27 September 2021.

onl Samuel Hayek, Chairman

40

INDEPENDENT AUDITORS REPORT

JNF CHARITABLE TRUST

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF JNF CHARITABLE TRUST

Opinion

We have audited the financial statements of J.N.F Charitable Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 December 2020 and of the Group's incoming resources and application of resources, including its income 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 Companies Act 2006 and 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.

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INDEPENDENT AUDITORS REPORT (CONT)

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

O inion on other matters rescribed b the Com anies Act 2006 p p y p

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

• the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' report has been prepared in accordance with applicable legal requirements.

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INDEPENDENT AUDITORS REPORT (CONT)

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

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

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

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

• certain disclosures of Trustees' remuneration specified by law are not made; or

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

• the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.

Res onsibilities of trustees p

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

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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INDEPENDENT AUDITORS REPORT (CONT)

Auditors' res onsibilities for the audit of the financial statements p

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 auditors' 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.

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the charity and the industry in which it operates, and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and the Charities Act 2011. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, reading minutes of meetings of those charged with governance, enquiries with management and review of accounting estimates. There are inherent limitations in the audit procedures described above and, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.

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 auditors' report.

44

INDEPENDENT AUDITORS REPORT (CONT)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

JENNIFER POPE FCA Senior Statutory Auditor Nyman Libson Paul LLP Chartered Accountants and Statutory Auditors 124 Finchley Road London NW3 5JS

Date 27 September 2021

Nyman Libson Paul LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

45

JNF CHARITABLE TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Notes	Unrestricted Funds £’000 Restricted Funds £’000 2020 Total £’000 Unrestricted Funds As restated £’000	Restricted Funds As restated £’000 2019 Total As restated £’000
INCOME
Donations Legacies Investment income - rental income Investment income – interest and dividends receivable KKL Charity Accounts income Government grant from CJRS Other income Total Income	1,013 1,253 2,266 728 2,798 1,024 3,822 6,327 398 398 290 55 55 176 266 8,446 8,712 321 84 84 - 74 74 9	1,072 1,800 276 6,603 - 290 - 176 7,306 7,627 - - 9
	4,688 10,723 15,411 7,851	8,654 16,505
EXPENDITURE/(RECOVERY)
Fundraising costs of donations and legacies 2 Charitable activities Funding project commitments in Israel 2 & 3 UK Charitable projects 2 & 4 Governance costs 2 Total Expenditure 2, 5 & 13 Net Incoming/(Outgoing) Resources Increase in fair value of property assets and investments NET MOVEMENT IN FUNDS	1,724 1,724 1,762 (5,422) 1,865 (3,557) 5,827 507 7,988 8,495 690 119 119 55	- 1,762 1,280 7,107 7,802 8,492 - 55
	(3,072) 9,853 6,781 8,334	9,082 17,416
	7,760 870 8,630 (483) - - 9	(428) (911) - 9
	7,760 870 8,630 (474)	(428) (902)
RECONCILIATION OF FUNDS
Total funds brought forward TOTAL FUNDS CARRIED FORWARD	24,246 6,424 30,670 24,720	6,852 31,572
	32,006 7,294 39,300 24,246	6,424 30,670

The Charity has no recognised gains or losses other than the results for the year, as set out above. All the above incoming resources and resources expended were generated from continuing operations.

The notes on pages 49 to 63 form part of these financial statements.

46

JNF CHARITABLE TRUST

BALANCE SHEETS AS AT 31 DECEMBER 2020

Registered Company Number: 355248 Registered Charity Number: 225910

		2020	2020 2019	2020	2019
		Group	Group Group	Charity	Charity
	Notes	£’000	£’000 £’000	£’000	£’000
FIXED ASSETS
Tangible Assets	8	191	191 167	89	98
Investments	9	22,501	501 18,781	20,871	17,435
		22,692	22,692 18,948	20,960	17,533
CURRENT ASSETS
Debtors falling due within one year	10	5,911	5,911 5,167	8,939	7,946
Cash at bank and in hand		16,777	777 20,504	9,321	13,381
		22,688	22,688 25,671	18,260	21,327
Creditors falling due within one year	11	(5,135)	(5,135) (9,430)	(4,899)	(9,185)
NET CURRENT ASSETS		17,553	17,553 16,241	13,361	12,142
Creditors falling due after one year	12	(945)	(945) (4,519)	(945)	(4,559)
NET ASSETS		39,300	300 30,670	33,376	25,116
FUNDS
Unrestricted funds		32,006	32,006 24,246	33,139	24,808
Restricted funds	13 & 14	7,294	7,294 6,424	237	307
TOTAL FUNDS		39,300	300 30,670	33,376	25,116

The financial statements were approved and authorised by the Board of Trustees on 27 September 2021 and were signed on its behalf by:

ap sh Samuel Hayek, Chairman Gary Mond, Hon Treasurer

The notes on pages 49 to 63 form part of these financial statements.

47

JNF CHARITABLE TRUST

CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

CONSOLIDATED CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020
Notes	2020 Group £’000 2019 Group £’000
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities 16	(4,117) 1,668
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Income Acquisition of tangible assets Net cash provided by investing assets Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	453 466 (63) (10,631)
	390 (10,165)
	(3,727) (8,497) 20,504 29,001
	16,777 20,504

The notes on pages 49 to 63 form part of these financial statements.

48

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING CONVENTION AND POLICIES

JNF Charitable Trust is registered under the Companies Act 2006 no 355248 and is registered with the Charity Commission no 225910.

• a. Accounting Conventions

• The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FR102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The reporting currency is GBP and the figures in the accounts are rounded to the nearest thousand pounds. JNF Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

• b. Group Financial Statements

• These financial statements consolidate the results of the Charity and its wholly owned subsidiaries KKL Executor and Trustee Company Limited, JNF UK Israel Limited and KKL Charity Accounts Limited. A separate statement of financial activities (SOFA) is not presented because the charity has taken advantage of paragraph 397 of SORP FRS102. The Charity had incoming resources of £6,168,000 (2019: £8,516,000) and expenditure of (£2,096,000) (2019: £8,533,000) and net incoming resources of £8,264,000 for the year (2019: net outgoing resources of £17,000).

• c. Incoming Resources

• Donations and receipts from functions are accounted on a receivables basis. Legacies are accounted for either when received or when the Charity is notified of the legacy and receipt of the legacy is considered by the Trustees to be both probable and measurable. Donated services are included at their fair value to the Charity. Gift Aid recoverable in respect of income is accounted for on a receivable basis. Income from shares in subsidiary undertakings is accounted for on a received basis. Other interest receivable and similar income is accounted for on a receivable basis. Rental income from long term social impact projects is accounted for on a receivable basis.

Government grants received are from the Coronavirus Job Retention Scheme (“CJRS”). Income from government grants is credited to the statement of financial activities as the related expenditure is incurred.

49

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

• d. Resources Expended

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised when the conditions attaching are fulfilled. Grants offered, which are subject to conditions that have not been met at the year end, are noted as a commitment, but are not accrued as expenditure in the financial statements. Project commitments in Israel includes all funds remitted to Israel by the charity in direct pursuit of its charitable objectives and their associated support costs and governance costs. Remittances to UK Charities consist of (i) those made in accordance with instructions received for donors' individual accounts within KKL Charity Accounts Limited and include their associated support costs and governance costs, (ii) grants made to UK schools under the KKL Charity Accounts educational grants programme, and (iii) payments to other UK charities. Support costs is expenditure incurred in providing administrative and financial services in support of the charitable expenditure above. Support costs are generally allocated over charitable expenditure headings in a similar proportion to existing expenditure under those headings. Governance costs are incurred in compliance with constitutional, legal and statutory requirements related to the general running of the Charity and are incurred in support on the charitable expenditure above. Governance costs are generally allocated over charitable expenditure. Irrecoverable VAT is included under the relevant expense headings.

e. Capitalisation and depreciation of tangible fixed assets

Tangible fixed assets are stated in the balance sheet at cost less depreciation.

Depreciation is provided to write off the cost of fixed assets over their estimated useful lives.

Rates of depreciation:

• Leasehold improvements are amortised over the period of the lease.

• Furniture and Equipment - 10% of the net book value.

• Computer Equipment - 33 1/3% of the net book value.

• Motor Vehicles - 25% of the net book value.

Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition.

f. Impairment

Property and investments are assessed for impairment indicators. Where indicators are identified an assessment for impairment is undertaken comparing the asset's carrying amount to its recoverable amount. Where the carrying amount of an asset is deemed to exceed its recoverable amount, the asset is written down to its recoverable amount, this is likely to be the value in use of the asset based on its service potential. The resulting impairment loss is recognised as expenditure in the Statement of Financial Activities.

g. Pension Scheme

Payments to defined contributions schemes are written off as incurred.

50

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

h. Funds

Unrestricted funds comprise those funds which the Trustees are free to use in accordance with the charitable objects.

Restricted funds are funds which have been given for particular purposes and projects.

• i. Investments

• Investments (other than long term social impact projects) are valued at market value at the balance sheet date. Realised gains and losses on investments are calculated by comparing the sale proceeds with the market value at the end of the previous financial year. Unrealised gains and losses represent the difference between the market value of investments held at the end of the financial year with their value at the beginning of the year or with their cost if purchased subsequently.

• j. Long term social impact projects Long term social impact projects are long-term investments made into Israeli properties with the intention to generate social and economic impact alongside a financial return. They are valued at cost less any impairment.

• k. Debtors

• Debtors include amounts owed to the Charity for the provision of goods and services or amounts the Charity has paid in advance for the goods and services it will receive. Debtors also include amounts receivable on grant funding and legacies to which the charity is entitled. Debtors are measured at their recoverable amounts (the amount the charity anticipates it will receive from a debt or the amount it has paid in advance for goods or services). An amount recoverable more than a year after the end of the reporting date is measured at its present value at the balance sheet date if the time value of money is material and the settlement terms constitute a financing transaction.

• l. Liabilities

Liabilities are amounts due to creditors and any provision made as a result of an obligation to transfer economic benefits, usually in the form of a cash payment, to a third party. Liabilities are measured at their settlement amount except for certain types of financial liabilities. A liability is recognised for the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as an advance payment for goods or services it must provide.

m. Financial Instruments

The Charity only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

51

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

• n. Foreign Currencies

• Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

• o. Judgements in applying accounting policies and key sources of estimation uncertainty In the application of the Charity’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 ongoing 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 both current and future periods. During the year, there were no judgments in applying accounting policies and key sources of estimation uncertainty which materially affected the financial statements.

52

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

2. TOTAL RESOURCES EXPENDED

		Project	UK
		Funding in	Charitable		2020	2019
	Fundraising	Israel	Projects	Governance	Total	As restated
	£’000	£’000	£’000	£’000	£’000	£’000
Staff costs	515	280	207		1,002	968
Direct costs	629	(3,981)	8,125	119	4,892	15,445
	1,144	(3,701)	8,332	119	5,894	16,413
Share of support
costs	580	144	163		887	1,003
	1,724	(3,557)	8,495	119	6,781	17,416

Included in fundraising direct costs of £629k (2019: £819k) is expenditure of £180k (2019: £180k) for grants provided to a UK charity, which has a trustee who is also a Trustee of JNF Charitable Trust.

The analysis by fund is:

Unrestricted fund Restricted fund	Fundraising Project Funding in Israel UK Charitable Projects Governance 2020 Total 2019 As restated £’000 £’000 £’000 £’000 £’000 £’000 1,724 (5,422) 507 119 (3,072) 8,334 1,865 7,988 - 9,853 9,082
	1,724 (3,557) 8,495 119 6,781 17,416

The resources expended are stated after charging:

he resources expended are stated after charging:
	2020	2019
	£’000	£’000
Depreciation	39	41
Payments to auditors for audit services	22	16
Payments to auditors for non-audit services	4	3

53

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

3. FUNDING PROJECT COMMITMENTS IN ISRAEL

Education/Training Advancement of Health Youth Economic/Community Environment Welfare Projects less than £25,000 Total funding committed to new projects Adjustment to prior year project commitments Currency exchange adjustments Direct staff and other costs and share of allocated costs	2020 £’000 2019 £’000 268 3,107 90 231 140 267 406 824 - 300 206 1,375 111 102
	1,221 6,206 (5,334) 99 54 177 502 625
	(3,557) 7,107

The funding of project commitments in Israel showed a net credit £3,557k (2019: a net charge of £7,107k). Following the Covid 19 pandemic, the Trustees reviewed certain project commitments from earlier years and cancelled or postponed some totalling £5,334k.

A full list of the projects approved is set out on pages 64 and 65.

4. DONATIONS TO UK CHARITIES

KKL Charity Accounts through individual and corporate sub-accounts (a) KKL Charity Accounts educational programme (b) Share of support costs	2020 2019 As restated £’000 £’000 7,988 7,802 344 362
	8,332 8,164 163 328
	8,495 8,492

Payments to UK charities principally represent:

• (a) Payments from KKL Charity Accounts through individual and corporate KKL Charity subaccounts. Details of these payments are not disclosed as they are made in accordance with specific restrictions imposed by the donors and are not necessarily representative of the Charity’s own grant making policies.

• (b) Educational grants. KKL Charity Accounts used its free reserves to make educational grants of £344k (2019: £362k) to UK primary and secondary schools.

54

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

5. SUPPORT COSTS

An analysis of the major support costs in note 2 is as follows:

Staff costs Direct costs Analysed between: Fundraising Funding project commitments in Israel UK charitable projects	2020 2019 As restated £’000 £’000 422 398 466 605
	888 1,003
	580 540 145 135 163 328
	888 1,003

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or benefits for the years ended 31 December 2020 and 31 December 2019.

The only Trustees’ expenses paid in the year were for the Project Committee’s review of potential and ongoing projects in Israel: £nil (2019: £14k).

7. STAFF COSTS

Salaries Social security costs Pension costs	2020 2019 £’000 £’000 1,234 1,176 117 109 73 81
	1,424 1,366

55

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

The average monthly number of employees during the year was as follows: Fundraising Israel Project Team Finance, Management, Administration, Legacy & Education	2020 2019 5 5 6 6 17 13
	28 24

The number of employees whose emoluments (including benefits), as defined for taxation purposes, amounted to over £60,000 in the year was as follows:

	2020	2019
£80,000 - £90,000	1	1
£100,000 - £110,000	1	-
£150,000 - £160,000	-	1

Contributions were made to defined contribution schemes for two high paid employees (2019: two employees) and contributions amounted to £8,056 (2019: £9,100). The total is disclosed in the above.

The total remuneration of key management within the Charity totalled £325,000.

56

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

8. TANGIBLE FIXED ASSETS

GROUP	Leasehold Improvements Furniture, Computer and Equipment Motor Vehicles £’000 £’000 £’000	Total £’000
COST
At 1 January 2020 Additions Disposals At 31 December 2020	91 472 87 - 63 -	650 63
	91 535 87	713
DEPRECIATION
At 1 January 2020 Charge for year Disposals At 31 December 2020	25 426 32 9 10 20	483 39
	34 436 52	522
NET BOOK VALUE
At 31 December 2020 At 31 December 2019 CHARITY	57 99 35	191
	66 46 55	167
	Leasehold Improvements Furniture, Computer and Equipment Motor Vehicles £’000 £’000 £’000	Total £’000
COST
At 1 January 2020 Additions Disposals At 31 December 2020	91 324 10	415 10
	91 334	425
DEPRECIATION
	25 292 10 10	317 20
	35 302	337
	56 32	88

The leasehold property is the Charity’s Head Office, based in Hendon, London.

57

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

9. INVESTMENTS

Property investments Long term social impact projects Investment in subsidiary undertakings Quoted investments	Group 2020 Group 2019 Charity 2020 Charity 2019 £’000 £’000 £’000 £’000 3,083 3,083 3,083 3,083 19,287 15,567 17,568 14,132 - - 89 89 131 131 131 131
	22,501 18,781 20,871 17,435

Long term social impact projects relate to commitments in Israel, where the Group owns properties and receives rental income and where there is an associated high level of social and economic impact. These are shown at cost.

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Donations and legacies receivable Debtors, prepayments and accrued income Due from subsidiary undertakings	Group 2020 Group 2019 Charity 2020 Charity 2019 £’000 £’000 £’000 £’000 5,833 5,023 5,833 5,023 78 144 30 75 - - 3,076 2,848
	5,911 5,167 8,939 7,946

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Other creditors Accruals and deferred income Taxation and social security Project commitments Due to subsidiary undertakings	Group 2020 Group 2019 Charity 2020 Charity 2019 £’000 £’000 £’000 £’000 48 31 9 14 10 1,601 10 1,502 349 1,033 32 782 26 25 26 25 4,702 6,740 4,702 6,740 - - 120 122
	5,135 9,430 4,899 9,185

58

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

12. CREDITORS: AMOUNTS FALLING DUE OVER ONE YEAR

	Group	Group	Charity	Charity
	2020	2019	2020	2019
	£’000	£’000	£’000	£’000
Project commitments	945	4,519	945	4,559

13. RESTRICTED FUNDS

With the exception of donations via KKL Charity Accounts, all other restricted donations were for projects in Israel.

KKL Charity Accounts Beit Uri Benji Hillman Environmental projects ESRA Refua Vesimcha Be’er Sova - Soup kitchen Ben Hashitin - Leadership programme Derech Eretz - Youth Programme Garin Harel in Tzohar Kerem Shalom Community Project Ruhama Forest Latet Hakeren Leyedidot Meitarim Lachish Matan Avrut Adadit Ramat Hanegev- Young Adult Centre Rachashei Lev Simcha Layeled Tenufa Bakehila Yad Tamar Student Village in Kibbutz Misgav Am Afike Orot -Ofakim Bnei HaMenashe Community Be’er Milka Community Nitzan LaNoar Therapeutic Farm Others Legacies

Balance at 1 January 2020 Incoming resources Resources expended Balance at 31 December 2020 £’000 £’000 £’000 £’000 6,120 8,446 7,957 6,609 17 27 44 - 4 57 59 2 31 31 77 77 13 250 180 83 10 10 10 10 15 30 7 38 29 2 2 29 4 37 41 - 11 30 41 22 22 - 47 47 - 44 44 - - 75 75 - 77 77 - 70 70 - 170 90 80 1 1 10 10 - 85 85 - 57 27 30 25 25 9 4 5 20 20 8 8 4 179 58 125 - 1,024 1,024 -

6,424 10,723 9,853 7,294

59

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets Investments Current assets Current liabilities Creditors more than 1 year	Unrestricted Funds Restricted Funds Total 2020 Total 2019 £’000 £’000 £’000 £’000 191 191 167 22,501 22,501 18,781 15,394 7,294 22,688 25,671 (5,135) (5,135) (9,430) (945) (945) (4,519)
	32,006 7,294 39,300 30,670

15. SUBSIDIARY COMPANIES

The Charity owns two active subsidiaries, KKL Executor and Trustee Company Limited and JNF UK Israel Limited. A summary of their results is shown below:

Total Income Total Expenditure Total 2020 £’000 £’000 £’000 KKL Executor and Trustee Limited 529 525 4 JNF UK Israel Limited 687 672 15 1,216 1,197 19 The aggregate of the assets, liabilities and funds were: Assets Liabilities Funds 2020 £’000 £’000 £’000 KKL Executor and Trustee Limited 141 35 106 JNF UK Israel Limited 1,296 1,262 34 1,437 1,297 140	Total Income Total Expenditure Total 2020 £’000 £’000 £’000 529 525 4 687 672 15	Total 2019 £’000 4 6
	1,216 1,197 19	10
		Funds 2019 £’000 102 19 121

The Charity also owns the following dormant subsidiaries:

JNF Limited Jewish National Fund Limited Jewish National Fund for Israel Limited JNF UK Limited

JNF Executor and Trustee Company Limited KKL Limited

60

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

16. RECONCILIATION OF NET INCOME TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net Income for the year, as per the Statement of Financial Activities Adjustments for: Investment income Depreciation Decrease/(Increase) in fair value of investments Increase/(decrease) in creditors (Increase)/decrease in debtors Net cash flow from Operating Activities	2020 2019 £’000 £’000 8,630 (902) (453) (466) 39 41 (3,720) (9) (7,869) 5,128 (744) (2,124)
	(4,117) 1,668

17. CONNECTED CHARITIES

KKL Charity Accounts is a connected charity (Charity Number 1105998), which operates from the same address as the Charity. All but one of the Trustees of KKL Charity Accounts are also Trustees of this Charity and it is therefore treated as a subsidiary. A summary of its results is shown below:

Total income Total expenditure Net result	Restricted Funds Unrestricted Funds Total 2020 Total 2019 £’000 £’000 £’000 £’000 8,446 324 8,770 7,690 (7,957) (549) (8,506) (8,371)
	489 (225) 264 (681)

61

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

The aggregate of its assets, liabilities and funds were:

Assets Liabilities Net assets Unrestricted funds Restricted funds Total funds	2020 2019 £’000 £’000 7,535 7,156 (875) (760)
	6,660 6,396
	51 276 6,609 6,120
	6,660 6,396

18. FINANCIAL ASSETS AND LIABILITIES

Financial assets measured at fair value through the Statement of Financial Activities Financial assets measured at amortised cost Financial liabilities measured at amortised cost	Group 2020 Group 2019 Charity 2020 £’000 £’000 £’000 39,278 39,284 9,321 5,023 5,023 20,871	Charity 2019 £’000 13,381 17,435
	44,301 44,307 30,192	30,816
	(5,783) (11,290) (5,577)	(11,314)

62

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

19. FINANCIAL COMMITMENTS

As at 31 December 2020, the Board of Trustees has authorised commitments relating to further long term social impact projects which are not included as liabilities in the accounts:

Authorised and committed	Group 2020 Group 2019 Charity 2020 Charity 2019 £’000 £’000 £’000 £’000 - 8,200 - 8,200
	- 8,200 - 8,200

As disclosed in Note 8 the Charity has a leasehold property being the Charity head office in Hendon. The rental is £84,942 per annum and the lease expires on 9 August 2026. This means that the Charity has operating lease obligations of £482,000 (2019: £567,000) not included on the balance sheet.

20. RELATED PARTIES

Details of the related party transactions are set out in note 2.

63

JNF CHARITABLE TRUST

FULL LIST OF PROJECT COMMITMENTS IN ISRAEL

FULL LIST OF PROJECT COMMITMENTS IN ISRAEL
	2020 £’000 2019 £’000
Education/Training
Arad Children’s Day-care Centre Ben Hashitin - leadership programme Karmiel – Kerem Gfanim school for children with autism Ma’or Hadarom – Or Layeled – learning centres House of Excellence - opportunities for youth in Kiryat Malachi ORT ISRAEL - Empowerment and gymnastics classes for Bedouin girls Petachia Day-care Treatment Centre - for kids with disabilities Sderot - Establishing a New Protected High School Student Village in Kibbutz Misgav Am Latet Meitarim Lachish – Leadership Program Gvahim Career Programme Be’it Uri	- 54 - 30 - 133 - 102 - 1,111 - 56 - 350 -- 1,133 27 138 95 - 75 - 44 - 27 -
	268 3,107
Advancement of Health
Ezra LeMarpe Kiryat Gat - Marianne - Expanding the Therapeutic Unit for children Rachashei Lev	- 120 - 111 90
	90 231
Youth
Derech Eretz Youth Programme Nitzan Lanoar therapeutic farm for youth at risk Simcha Layeled - programmes for children with disabilities	140 181 - 44 - 42
	140 267

64

JNF CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONT)

	2020 £’000 2019 £’000
Economic/Community
Avshalom Community Centre Bnei HaMenashe community club in Nof Galil Hub in Ashdod - Establishing Business Hub for the Ultra-Orthodox community DIY volunteering project Kerem Shalom community project Kiryat Gat - Equipping the New ‘Carmei Gat’ Community Centre Matan Arvut Hadadit Sderot - Senior’s Day-care and Treatment Centre Yerucham - Expanding the Senior and Special Needs Employment Centre	- 78 - 39 - 200 84 44 - 30 - 100 322 - - 200 - 133
	406 824
Environment
Kibbutz Holit - Renovation of the Sports Court Kiryat Malachi - Renovating and Equipping 3 Sports Halls Ruhama Forest Urban Forest - Planting trees in the newly settled village - Carmit	- 67 - 189 - - 44
	- 300
Welfare
Afike Orot Ofakim Benji Hillman Hakeren Leyedidot Supplying Food Vouchers to Families in Need SAHI - Supplying Elderly and Holocaust Survivors with a Monthly Food Basket Shaldag Veteran – Supporting Holocaust Survivors The Foundation for the Benefit of Holocaust Victims - Immediate Assistance Fund The Foundation for the Benefit of Holocaust Victims - Living with Dignity The Foundation for the Benefit of Holocaust Victims - Project Connected Tnufa Bakehila – renovation of low-income family homes Yad Tamar Projects less than £25,000 Total donations to charities/projects Net adjustment to prior year project commitments Currency exchange adjustments Direct staff and other costs and share of allocated costs	- 302 - 82 121 - - 178 - 32 - 453 - 45 - 44 - 46 - 73 85 120
	206 1,375 111 102
	1,221 6,206 (5,334) 99 54 177 502 625
	(3,557) 7,107

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JNF CHARITABLE TRUST REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 355248 (England and Wales) Registered Charity number 225910 Registered office Mountcliff House 154 Brent Street London NW4 2BF Trustees S Hayek – Chairman D Berens G Falter L Julius (appointed 24 March 2020) M Lee A Mendoza G Mond M Waisman H Wayne T Kendal (appointed 23 June 2020) B. Oakland (appointed 22 September 2020) Company Secretary D Berens Auditors Nyman Libson Paul LLP 124 Finchley Road London NW3 5JS Solicitors Mischon de Reya LLP Africa House 70 Kingsway London WC2B 6AH Bankers Barclays Bank plc 1 Churchill Place London E14 5HP

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Israel for Life

JNF Charitable Trust Mountcliff House 154 Brent Street London NW4 2BF

Tel: [phone] Email: [e-mail] Web: www.jnf.co.uk