2020-12-31-accounts

THE HENRY SMITH CHARITY Registered Charity 230102 ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Contents Chair's Review Report of the Trustees Report of the Auditors 20 Financia5 Ststements 23

Contents The past year has been beyond challenging for all of us, with no part of UK society unaffected by the Covid-19 pandemic, and long-lasting restridions on most aspects of life. But I have been extremely proud of the way in which we have risen to that challenge. There was a seamless move from office to home based working for all staff, which continues at the time of writing. The Staff have shown great patience and resilience in these difficult circumstances. and it is through their efforts that we were able to continue grant giving without any interruption. We made total grants of £39.2m, a record. Some of this was made possible by ex￿lIent investment performance over recent years. which continued in 2020. In light of the impact of the pandemic on charities we decided to respond with greater flexibility and additional funds. We bid for DCMS Community Match Challenge funds (the first time to our knowledge that the Charity has been 8 grant applicant) and received £2m. which we matched with additional funding of our own and distributed to some of our existing grant holders, following a survey and application process to understand the additional needs they were meeting. or the income they had lost. We were very impressed by what this revealed about the resilience of many of our grant holders. their dedication and resourcefulness. In the past year w8 have been giving more attention to diversity. equity and indusion. in light particularly of the disparities in impact of the pandemic on different communities. This has involved carefully reviewing our F)olicies and processes. We know that we have more to do. and the Board will be overseeing the implementation of our action plan. During the year we awarded a £2m strategic grant. in partnership with Impetus. for distribution to organisations working to reduce exclusions from school. This seems especially timely following the long disruption to education. One disappointrnent has been the drop in applications and grants under our Strengthening Communities programme. We are keen to get more money into the most deprived places. We have made some adjustments to our policies and processes here. and plan to do much more to ensure that organisations working in these areas are aware of the funds available. We have some exciting plans for the coming years. Working with our Investrnent Advisers. we have concluded that we can draw addikn'onal funds from the endowment without compromising the level of futu￿ grant giving. The impacts of Ihe pandemic are likely to be with us for some years. and V￿ have decided that now is the time to increase our funding to the Gharitable sector. I should like to conclude with thanks to my fellow Trustees for their support and willingness to embrace new ways of working, both in relation to our grant giving and in our meetings which have been entirely virtual since March 2020. We were sad to say goodbye to Anna McNair Scott. who made a huge contribution to the Charity as County Trustee for Hampshire and leading on our Kindred programme, but we were glad to welcome new trustees, Faisel Rahman and George Roberts, and look forward to the new perspectives they will bring. Above all I should like to thank Nick Adand, and the staff team, along wtth our volunteer visitors. Without their hard work and dedication none of this would be possible. Vivienne Dews Chair

Report of the Trustees Trustees J Asquith B Colgrain V Dews P Feilden P HackwcK)d B Kemighan A McNair Scott {retired Dec 2020) H Ridha E Bolton E Davies E Feisal M Granger J P Hordem NGHManns F Rahman {appointed May 2021) G Roberts (appointed Jul 2021) V Dews was also a Director of Herry Smith Trading ￿MIted, the wholly ovmed subsidiary of the Charity. until its sale on 31 January 2020. Registered Office 65 Leadenhall StreeL London. EC3A 2AD Website www.henrysmithcharity.org.uk Director N Adand N Acland was also a Director of Henry Smith Trading Limited. the who15y owned subsidiary of the Charily, until 31 January 2020. Charlty Registration 230102 Bankors: Bank of Scotland. 8 Lc¢hside Avenue. Edinburgh, EH12 9DJ Solicitors: SNR Denton LLP, One Fleet Place. London, EC4M 7WS Veale Wasbrough Vttards LLP, 24 lfjng William Street, London, EC4R 9AT Auditor: Crowe U.K. LLP. 55 Ludgate Hill. LorKlon EC4M 7JW Inveslment Custodian: Northem TrusL 50 Bank St. London. E14 5NT Invostment Advlsers: Cambridge Assocaates, 80 Victoria Street. London, SW1 E5JL Property Advlsers: Lasalle Investment Mgl, 33 Cavendish Square, London, W1A 2NF Savills UK Ltd. Stuart H(yJse. Cty Road. Peterborough. PE1 1QF

Report of the Trustees Overview Introductlon The Henry Smith Charity was established from a gift of land given during the lrfetime of Henry Smith. and bequest upon his death in 1628. Since then, the charity has honoured the spirit of Henry Smith'5 will. working to combat disadvantage and meet the challenges and opportunities facing people in need throLJghout the UK. Nearly four centuries after we were first established. The Henry Smith Charity is one of the largest grant-making chariti8s in the UIQ The Henry Smith Charity aims to bring about lasting change trj peOp￿'S lives. helping them to benefit from and contribute to society. We achieve this by providing funding to reduce social and èconomic disadvantage. Our granlees a￿ at the core of our mission and work. The charity is registered in England and Wales and govemed by a Scheme of the Charity Commissioners dated 5 October 2000 which came into effect on 1 January 2001. Guiding PrSn¢iples The Charity has adopted a sel of guiding principles which ouuine how we aim to work as an organisalion. They guide our activity, serve as a reference for ongoing work, and help to ensure that our actions are consistent vrith our aspirations. These principles urNlerpin all our grant making activtlies. We aim to ¢￿tinue the legacy of philanthropy established by our founder Henry Smith We focus on those social problems where there is an opportunity for our money to make a difference We endeavour to maximise the effectiveness of ¢Jur funding We seek to be responsive to demand We aim to maintain a rational. pragmatic approach We aim to be as helpful as possible to those we seek lo assist Trustees The Charity is required to have belween len and hventy Trustees. The Trustees are listed on page 1 of this report. N8w Trustees seNe up to Iwo tems of five years each, with t)rovision in exceptional cases for a third lem of up to five years. Trustees are appointed following a fomal re(xuitsnenl proce5S. including an assessmenl of the Charity's needs and the mix of skills and experience on the Board. A structured induclion programme is provided for all for new Trustees. Board effectiveness is maintained and ensured throu9h regular reviews of both Board and individual Trustee perfonnance, and Trustee training is provided as needed. Declsion Maklng The Board is responsible for all Tnaior policy decisions and for approving strategy and objectives. They meet four times a year. Main grants are approved by the Board, but significant decisionvmaking authority is also delegated to the following committees: Decisions in respect of some of the Charity's smaller grant programmes are delegated to Trustee Committees or appointed Truslees, with recommendations and decisions being reported to the Board. The Governance and Norninations Committee is responsible for ensuring good govemance of the Charity. The current govemance arrangements were reviev￿￿ in 2018. The Remuneralion Committee is reS￿nsible for detemining the Directorfs and Senior Managers. remuneration. The Investment Committee is responsible for investment tx)licy. asset allocation and porformance monitoring. The Finance and General Purposes Committee is responsible for budgeting and financial management, organisational policies, staff remuneration. audit and risk management.

Report of the Trustees Day to day operalTonal adivities are delegated to the Director and members of the senior management leam, comprising Ihe Head of Finance & Resources. Head of Grants, Head of Grants Administration and Head of L8aming & Evaluatr'on. under a forn￿1 schedule of delegations. Slatement of Organisational Purpose In 2019, guided by the recommendation in the Charity Governance Code. we devetoped a staternenl of organisational purpose: 'To use our resources to help people and communltles at a tlme of need and to bring about positive change., We use Ihis ststement of purpose to infonn and guide our decision making across Ihe organisation. Public Benefft Trustees consider the Charity Commis5ton guidance on public benefit when planning future activities. setting grant-making policies and in maknng grants. The positive social impact anticipated from each grant Is considered before a grant is awarded and monitored. This enables Trustees to be confident that the Charity has. through its wide range of grant holders, achieved significant public b8nefft for a number of vulnerable groups across the UK. A diverse range of public benefit is provided by the hundreds of charities we support each year. as they WOTk to alleviate need and distress, and help people lead more fulfilling lives. A summary of our grant making in 2020 is set out below illustrating the work we have supported. Response to Covid-19 pandefflic 2020 was dominated by the Cowd-19 pandemic which continues to have far reaching implications for our grant hold8r5 and the people they are working to support. We are pleased to report that we carried on ryjr grant-making unintemjpted, switching immediately to full home-based remole working. We also quickly signed up to the flexible approach adopted by a number of funders. This gave grant hdders greater scope to use grants to address funding shortfalls or to meet changing needs by allowing flexibility on payment schedules and outcome reporting. We successfijlly applied for £2m from the DCMS as part of their Communty Match Challenge initiative, and awarded an additional 53 grants, (with £10k administration costs) to a total value of £4m to grant holders in England in October 2020. 45 of these grants were made to organisations experiencing an increased need for their services. and 8 were made to organisations experienang financial challenges to meet the needs of existing beneficiaries. We pul in place plans lo award similar grants to organisations working in Northern Ireland, Scotland and Wales. and made awards in 2021. Through our contact with our grant hdders we have been kept aware of the impact of the pandemic on those most in need in our society and Ihe lasting impacl we can expect to see for many year5 to come. We have been impressed by the financial resilience of the majority of the organis8tions we fund, and the extent to which emef9ency funding from govemment and elsewhere has been 8ffecltve in helping small charities over this period. We also recognise the concern that emergency funding and other support will end, while demand for services remains at unprecedented levels. Finally we have been inspired by the dedication and resourcefulness of so many organisations in adapting their Servi￿ in order to meet the needs of the people and communtlies they support.

Report of the Trustees Diverslty. Equlty and Inclusion During the year it became dear that the impact of Cobid-19 was falling disproportionately on some of the most deprived communities and in particular Black and Minority Ethnic communities. This fact, as well as the murder of George Floyd in the US and the Black LNes Matter movement in the UK. highlighted the need for us, in common with many other grant-making frjundations, to carefulty review our practices in the context of Diversity, Equity and Inclusion (DEI). In response to these events the Board set up a working group consisting of trustees, staff and volunteer wsitors. This group reviewed the DEI praciices wtihin the charity against the ACF pillars of stronger foundations practice. This resutted in the Board wth'ng in hand a number of actions including approwng the following DEI statement.. As a charity w0￿1ng to reduce social and economic disadvantage. the values of dlvw51ty, equity and inclusion are central to the ethos of The Henry Smith Charity. We believe these values should be reflected thrnughout our whole oryanisation and in everything we do. Thls Includes working to address social inequity in all its fornis including racial injustice and discrimlnadon. We recognise that this ambition will not be achleved wlthout self4wareness and work on our part. We are therefore committed to measuring. monitoring and publishlng ourprogress In these areas. We also commissioned a firm of independent consultants to carry out a diversty audit of the Chartty and provide an indU￿On report. The report stated that the Henry Sfflith Charity was viewed by stsff as a good place to work and that the Charity made a conscious effort to be indusive, but there were a number of areas highlighted where improvements were needed. Actions to address these areas for improvement induded reviewing recTUttment practices to ensure they were accessible to as diverse a group of applicants as possibFe and also to avoid any unconscious bias. It was also suggested that *• undertook training for staff and Trustees in indusive leadetship. We are now taking action on these issues and deveEopiTrJ a DEI strategy for the Charlty to ensure we continue to make progress in this area. We have carrted out an analygs of our main grant programme and the extent to which it reaches black and minority ethnic communilies and have shared this infomation with the Fundets for Race Equalty Alliance. The results of this analysis were p)sitsve in tems of the reach of our grant-making bul less positive in fiJnding to organisations led by and for black and minority ethnic groups. Future Y￿rk wll Include reviewing the accessibilty of our application process. We believe we are making goLhJ progress in these areas but reGognise that there is further work to be done.

Report of the Trustses Grant Making Programmes We awarded grants through a number of different prograrnrnes durirwJ the year. Programme Overview Main Grants Grants for organisions that work to reduce social and economic disadvantage. Main grants are divided into separate prc#Jrammes'. Improving Lives and Strerythening Communities. Each of these programmes has a separate set of priorrf(ies and guKlelines. Grants for organisations enabling them to continL to deliver established vital services wtth those most affected by Covid-19, and to delNer newldrfferent servi￿$ to respond to challenges rdated to the current crisis. Grants V￿re also given to support charities in high finanaal need caused by Covi(k19. to enable them to continue to o Grants for smaller organisatK)ns working with disadvantaged people and communities in one of eight English count￿$ with whith the Henry Sm5th Charity has a historical connection. Communty Match Challenge (CMC) Grants County Grants HolKlay Grants Grants for recreational trips and holidays for groups of children aged 13 and under in the UK who are disabled or disadvantsged. the programme was suspended during throu h the ear. rants were awarded in the firsl uarter. Grants for local organisations, mainly based broadly on an allocation set out by the Trustees of Henry Smtth's will for the relief of poverty in specified parishes but widened in 2020 to tndude parishes located in some of the most deprived areas in the UK as hi hted b the irKlTrces of de ation Grants to support [￿oieCts that expliaty promote the Christian faith in the UK. Grants to individuals who are descendants of the sister of Henry Smith or adopted by a descerKlant. Grarts are awarded on a means-tested basis. Parish Grants Clergy and Christian Projects Kindred Grants Grants totall1￿ £39.205.000 were awarded as folltxs.. Programme Main Grants Strat ic Grants CMCICovid-19 Grants Coun Grants Holiday Grants Parish Grants and Christian Kindred Grants Less.. cancelled rants Total Grant Awards Total Funding Commttted £27 192 £3.S￿￿.LK)O £4,467,IxIO £1,179,CQO £120.000 £855,000 £1.166,000 £762 000 £496.000 000 A full list of the grants we made to organisations over the last yts al￿ wilh the detailed criteria for each grant programme is available on our website (http5".Il%Yww.henrySmFthcharity.org.uklr￿n1lY- awarded-granw.

Report of the Trustees Achlevements and Perforniance- Main Grdnts £27,192.000 Our Main Grants Strategy comprises two programmes: Improving Lives and Strengthening Communities. Each programmè has its ovm priorities and guidelines. In 2020, we made 211 grants- 190 Improving Lives grants and 21 Strengthening Communities grants. We re￿iVed 983 applications in total, a decrease in numbers compared lo 2019. Improving Lives Strengthening CommunÈb"es 118 21 18% To121 number ol a Total number ol Success rate licalions rants 211 21% 22% Almost all grants Y￿re for three years and the average &year total grant award was £131.000. 8 slight increase on 2019. The average Improving Live5 grant was £132.000. The average Strenglhening Communities grant was £108,000. Continuation grants (repeat grants made to applicants who we wrrenly fund) accounted for 33 % of all Main Grants. Continuation grant applicants have s1gnff￿n1lY higher success rates than non- conlinuation grant applicanls. Improvlng Llves Through the Improving Lives grant programme. we support charitable organisations across the UK to help people for whorn other sources of support have failed. been inappropriate or are simply not available. This is our largest funding programme. through which we distribute most of our funds. In 2020. we made 190 Improving Llves grants in response to 865 applications. The Improving Lives programme has six funding priorities. vthich describe the work we fund and how we want to bring aboul chan9e for Ihe most disadvantsged people in the greatest need. During the application pr¢xess grantees must demonstrate how the ouicc¥nes they ddiver meet one or more of th88e priority areas: Help at a Critical Moment- Helping people to rebuild their lives following a crisis, critical moment. trauma or abuse Posilive Cholces - Helping people, whose actions or behaviours have led to negative consequences ts themselves and olhers. to make positive choices Accommodation l Housing Support- Enabling people to vK>fk towards or maintain accommodation Employment and Training - sup[￿l￿g people to fflove towards or gain employment Financial Inclusion, Rights & Entitlements - SuppKlrting people to overcome their financial problems and ensure they can daim their rwJhts and entitlements Support NetwoJ*s & Family- Working with peopie to develop improved support nebNorks and family relationships Help al a Critical Moment was the most popular priority area in 2020. selected by 58% of applicants and 590A of grant holders. Support Ne￿OrkS and Family was the nexi most popular, selected by 57 % of applicants and 49 /0 of granl holders. This was consistent with 2019. Consistenuy lower numbers of appli(xnts and grant holders are addressing Accommcxjation l Housing Support. We are addressing thi5 through our targeted Housing FiT5t strategic grantrnaking programme. Grants were awarded through this programme in 2020.

Report of the Trustees Grants can be made for an organisation's running costs (induding salaries and overheads) or the costs of a 5pecffjc project (induding staffing costs). In 2020 we awarded 126 grants towards proj8Ct costs and 64 grants towards organisational running costs. In 2020 our Improving LNes 9rants funded wojects that ￿an to directly support 106.407 beneficiaries. We will touch the lives of a further 70.905 beneficiaries through funding running costs of organisations. These are the lolal numbers of beneficiaries that projecls or organisations exped to support over the course of their Henry Smith grant, not the number of beneficiaries directly attributable to our funding. Compared to the figures for our Improving ￿VeS grants in 2019. the headline beneficiary numbers we expect lo ￿ach are higher in 2020. The variance also highlKJhts the Challenge of aggregating number5 across grants from a range of drfferent cause areas. Strengthening Communllles The Strengthening Communities prcrfJramme suprorts small grassrwts organisations working in th8 most deprived areas of the UK (measured by national indi￿S of multiple deprivation). We know that smaller organrsations rooted in Iheir communities play a vital role in supporting people to make positive changes. We support these organisations to create lasting solutions to both the individuals and the community. We make Running Costs gfants only. In 2020, we made grants to 21 organisations in response to 118 applications. a reduction in both applicant and grant numbers compared to 2019. The proportion of the Main Grants budget going to St￿n9the￿Ing Communilies has decfeased from 19Yo in 2018 to 10% in 2020.The average grant value totalled £107.000. a slighl decrease compared to 2019. The number of StrengthenirvJ Communities applications has fallen steadily ￿nce we launched the programme in 2018. We carried out a review of Ihe programme in 2020 and plan to cary out promolion to increase the number of applications as part of our strategy but also as a response to the disproportj'onate impart of coronavirus in deprived communihes. Cause Areas Supported Cause area Grants Rejected ications Succes5 Rates Black and Minority EthnK Communities Carefs 21 30% 23 23% Children and Y¢JJng people Disability Disadvantaged Communities Domestic and Sexual Abuse 152 120A 13 61 18/0 40 140 22° 22 Family Services Homelessness Learning Disabilities LGBTQ IAentsl Health ar￿ Wellbeing Older People Prisoners and Ex4Jffenders Refi5ge8s and AsyhJm Seekers Sex Wottt. Trafficking and Modern SL9very subSts￿¢@ Misuse and Dependency Ineligible loulside of crilgria) Totsl 40V 130 200 45% 35 39 10 73 11° 11 37 23¥. 19 21° 14 24 37/0 25% 15 27 772 170 0% 211

Report of the Trustees Our grant makirvJ focus remains rellqtively broad and responsive. We aim to respond to the needs identified by applicants. and therefore make grants to charities supporting irKlividuals facing disadvantage in diverse areas of their lives. We continue lo see a high demand ftx grants related to domestic and sexual abuse. family supp services, mental health and wellbeing, and children & young peopl8. Geographical Distribution As a UK-wde responsive funder running an open grant programrne. it is important that we make grants across the UK. The table below shows the number of grants made and applications received in 2020 split by geographical area. We continue lo find that much of the work rneekn.ng the g￿alest need is within the most deprived, mainly urban areas of the UK. In 2020. we made 44°h of our grants are made to organisations based in geographical areas in the bottom 20% on the Indus of Multiple Deprivation. The Strengthening Communities programme has a particular focus on areas of deprivation. In 2020. we made 17 of 21 grants to organisations working in the 5% most deprived areas of the county. Applicants working in the 10/0 mosl deprived areas had the highest chance of being awarded a grant Wtth a 40 /0 success rate. We will continue lo review the geographical spread of our grant making to ensure that we are rerANing applications from all areas of the UK and that our grant making is targeted to need. eographlcal area rown Depend8ncy ast Midlands Grants .Appltcations 14 50 asl of England ondon alional orth East 14 46 105 51 36 orth West 26 77 20 orthern Ireland cot]and 95 88 ulh East 18 uth Wesl 15 ales 37 est Midlands orkshire and The Humber 16 21 58 otal 211 772 Grant Assessment We assess the quality of appltcations against a wide variety of different criterra to ensure that we are achieving our charitable objectNes and that we are making robust, transparent and consistent funding decisions.

Report of the Trustees Assessment of the organisations is diwded into the followirKJ headings: Wision. mission and strategy Integration into the ojmmuntty Financial Eligibility Budgeting and fundraising Assessment of the servicels) provided is divided up into Ihe following headings: Need for the service Description of the service Is it dear how the service is making a drfrerer￿e? Service impact - How 'significant' is the difference? Monitoring & evaluation quatsty Ability to deliver Is the work delivered as intended? Once an application has passed the initial paper-based assessmenl. an assessment visit will take place. This enables us to assess the need for the projed. ensure the organisation's management and governance are fit for purpose. confim) that the project is sustainable. and the outcomes are both realistic and achievable. Grant Holdars. Progress Reports Once a grant has been approved grant holders report back to us on their wogress annually for the duralion of iheir grant. They report on the numbers of people they helped. activities delivered, beneficiary outcomes. organisational developments. extemal changes that have affected their work. their financial performance and outlook for the year ahead. They also provide beneficiary case studies. These reports provide valuable infomiation on issues our grant-holders are facing. and on progress of work supported by our grants. It is pleasing to note that the vast majority of grants have met or exceeded expectations wilh a small number not having done so but usually for reasons vthich are well explained and are being addressed. Learning and Evaluation In line with the wider voluntary sector we are aware of the need to demonstrate the impact of our work. We require those applying to us to demonstrate the outcomes they are achieving and believe we should apply the same rigour to out5elves. This is a challenge. as our grants cover a WKle range of sery1￿s and groups to relieve poverty. dewivation and di5a(fvantage. We monitor grant outcomes through our grant progress reporting tThxs. We examine the Specific outcomes that organisations have achieved in terms of the number of people they work with and the benefit they provide. The framework we have in place allows us to review perfomiance of grants and collect leaming about the organisation, the operating environment and le550ns learned. Over lime we are able lo use the informalion prowded to report on the (x)Ilective impact of our grant making. We also have enhanced reportirvJ processes for a small number of selected grants. We monilor our granlmaking throughoLrt the year but also cary out a detailed annual review of our main grants programmes lo confinn our understanding of whom arKI what we are funding. W8 analyse applications and grants made and use the data to infom our policy-making and future planning. This has been particularly imwrtant this year to undersland the rapidly changing environment and the impact of coronavirus on our grantholders. 10

Report of the Trustees As we build our kn￿edge and leaming from our own grant makirHJ. we are also looking to leam from 8Xternal sources. We are carying out a series of sector reviews to prowde an overview of the context. needs and issues in each of the major sectors we fund. In time this work will allow us to add further clarity to OLtr priorities. We also plan lo identify strategic grant opportunities where our funding ccwld have magnified impact. Over the last year we have been developing an intemal leaming log as a systematic way to collect and store our intemal leaming. Achlevements and Perfomiance- Other Programmes County Grants £1.179.000 The County Grants programme supports the work of small organisations and charities in eight counties with which the Henry Smith Charity has a historical connection. The eight counties are Gloucestershire, Hampshire. Kent, Leicestershire, Suffolk, Surrey, East Sussex and West Sussex. Grants support work th people experiencing social andlor economic disadvanlage (people with disabilities. for example) and work that tac￿e5 problems in areas of high deprivation broadly in line with our main grant objectives. Grants range from £2,000 to £20.IXKI an average grant size of £12.500. To be elHJible to apply for a County Grant. the organisation's annual income musl be below £250,000. unless the organisation is working county-WKle, in which case tls income must be below £1 million. Grant recornmendation5 are made by County Trustees who use their local knowledge to assess the merit of applicalions. currently the Suffolk and Surrey schemes are administered by the local Community Foundations. County grant recommendations are approved at the quarterly Board meeling. In 2020, 94 grants were awarded across the eight counties. Coun Easl Sussex Gloucestershire Ham shire Kent Lei￿Stershire Suffolk Surr8 West Sussèx Granl Number Grant Amount 16 £84,000 £110.000 £154,000 £284,000 £108.000 £120,000 £186,000 £133.000 24 io 10 10 Grants V￿re used for 0￿JanIsation wnning costs, salaries. project costs, or one-off small capiial expen¢Jiture such as building refurbishment or equipment. During 2020 the Board decided that the small grant pro9ramrne in the C￿tieS would be progressively dosed as County Trustees reached the end of their terms of office. Thi5 is in recc*3nilion of the fact that the counties are not in the area5 of greatest deprivation in the UK. We also felt that the requirement to recruit trustees who are resident in these counties was a significant addIt￿nal restriction on the field of eligible Candidales to serve on our Board. Hollday Grants £120,CMX) The Holiday Grants programme provides grants for short holidays and recreational trips for groups of children aged 13 and under in the UK who are disabled or disadvanlaged. In 2020 we made 61 one off grants. 11

Report of the Trustees Grants ranged between £500 and £2.500 and were made to schools. youth groups. not for profil organisations and charities. Trips ranged from days out up to week-long stays in activity centres. Due to the impact of CoMd-19 only 17 trtps benefiting 671 children and young people took place It is important to us that no child be exduded on financrdl grounds from a trip we are 5UPPQrting, and all grants are aYRrded on this condition. In line wf(h our commitment to be Ilexible and supportive to our grant holders, we have agreed to charoes to dates arKJ duration of trips as necessary. Clergy and Chrlstlan Projects £1.166,000 The Clergy and Chrislian Projects grants programme has three element5 and in 2020 grants were made as lollows: Pro ramme Grants lo support individual dergy, managed through Churth of EnAland dioceses Bursaries for Church of En land Ordinand trainin Grants to Christian Projects that explicitly promote the Christian faith in the UK Granl Amounl £559,000 £80.000 £527,000 In the Christian Projects programme we value projects that set out to nurture and grow people's joumey in Christian faith and grow churches. and only supwrt work that comes from a Church of England contexl, or that is fully ecumenical. There are four priority areas for this fund and all applications must expliciily address one or more of these wiorities. 1. Meeting the spiritual needs of older people. indudir@ those with dementia 2. Meeting the spirttual needs of those with leaming dtsabilitss arKI those who have cognitive impaiments 3. Reaching out to the unthurc*ed- especially young people and young families- by nurturing their spintual interest welkbeing 4. Projects which support and care for Anglican dergy at times of acute need. Klndred £762.0 In line with Henry Smith's will, whith induded a legacy to help members of his family in financial need, we award granls to individuals who are descendants of the sister of Henry Smith or adopted by a descendant. Grants are awarded on a means-tested basis. to address financial need. A free confidential Helpline is also provided as an altemative means of assislance. More than 2.5CQ kindred are registered with us and over 150 people received financial support in 2020. We were also pleased to introduce an emer9ency grant scheme for Kindred who were facing financial hardship as a result of the pandemic espectally in the period before govemment support payments reached those in need. Parish Grants £855.000 The parish scheme is a separate fund wtthin the endowment, representing approximately 2% of our assets. Under the scheme we distribute annual grants of between £2.000 and £20.000 to over 150 entities. based broadly on an allocation sel out by the Trustees of Henry Smith's will for the relief of povety in particjjlar paTishes. These entities then use the Tnoney for the relvaf of povety within their designated parish. and report annually how the money was used. The entities irKaude l¢xal erxlesiastiG31 parishes, specially established local Henry Smith Charities and larger grant making organisations such as Trust for Lond(￿ and Crippl8gate Foundation. Over 1,000 volunteers administer the local grant-making and more than 5,000 people receive a grant each year. 12

Report of the Trustees During the year we conlinLd to offer the opportunty frx parishes to apply for supplementsry grants to meet additional needs in their area, many of which are more acute due to the impact of Covid-19. In addf(ion we widened the scope of the scheme to cover 19 add￿onal patIsF￿5. based in the most deprived areas, who were in a position to make grarrts to meet the nls of people in their areas. Strateglc Grants £3.960.000 We are tradttionally a responsive grant maker bui are willing to use some of our funds in a rnore proactive and strategic manner. where this can increase the impact of our grant-making. We have been carying oul reviews of our various grant-making areas. which has identified some possibilities for strategic grant-making. arKI this is an ongoing process which may identify fvture opportunities also. We made a strategic gr￿lt of £1.9m in earfy 2020 to support six organisations to run Housing First Programmes over the next four years. In September 2020, we committed £2m to a £3m fund we created with Impetus {another grantmaker focused on improving educational outcomes for young people) - called The Engage Fund. This fund supports charibes tackling sthool exclusions in England. Community Match Challenge {CMCyCovld-19 grants £4.467,000 We successfully applied for £2m of funding from the DCMS under their CMC funding scheme and matched this with £2m from the Charity's reserves. to enab￿ grants totalling £4m to provide support to organisations enabling them to conlinue lo delNer established vital services with those most affected by Covid-19. and to deliver nvwldrfferent services to respond to challenges related to the crisis. Grants were also given to support charities in high financial need caused by Covid-19, to enable them to continue to operate. An additional £467k was awarded to organisations lne1￿1blÈ for the CMC stheme. bLrt whose work is meeting addttional need through the Covid-19 pandemic. 13

Report of the Trustees Plans for Future Development In 2021 we WAI operate our grant rnakirwJ programmes as ouuined above, while developing our leaming and evaluation work and continuing to focus our funding in areas where we can maximise the impact of our grant making. An interirn review of our Main Grants Str*gy is planned for late 2021. In response to the Covid-19 pandemi¢. the Charity has agreed to release additional funds from its endowment, arKI we will be working up plans for increasing our funding. ￿th to new applicants and through current grarrt hotders. We anticipate that over £3Ckn in addttional funding will be released over the next three years. Having worked primarily fr(xn home durirKJ most of 2020, we are planning to retum to office-based working a5 and when Covid guidelines are relaxed. We will trial new ways of Working which will include continuing with a greater level of workirwJ from home than was the case before the pandemic. Following the completion of the DNersty. Equty & Inclusion (DEI) review in earty 2021, we wll review our organisational and grant making poliaes, procedures and processes aThl put in place an action plan to make changes and improvements where required. Financial Revlew Investments The Henry Smith Charity is a pem)anent erKlowmen( with assets hekl in perpetuty. These assets are the primary funding source for the Charty, so the perfornance of investments over the long term vitally important to the long-tenn sustainablty of the Charity. and the impact it can make through the grants it awards. The Charity operates a Total Retum approach to investment, with prrwer to spend both income and capital. provided the Gore endowment ofthe furKJ is maintsined. The Charity has power under its Scheme to invest in stocks, shares. funds. securities arKI otw property. The Trustees have appointed professional investment advisors. who advise on invesknent poliw and straty, asset allocation and the perfomiance of managers. Investment Pollcy The investment portfolio has the primary long-tern objective of maximising sustainable spending from the portfolio in order to support grant-making. The secondary long-temi obJectNe is to maintsin the real value of the fund in perpetuity after SF￿K1Ing. The Char￿Y currently aims to Spend 4% of the portfolio in grant-making over the It)ng-tenn and the portfolio has a goal of retuming an annual retum of CPl+4% over a rolling 5 year period. It is recognised that in order to athieve the primary objective of sustaining a 4Y• spending rate over the long temi, there will be periods of short-temi volats.lity of investment fetums. The investment strategy seeks to build a diversified portfolio that minimises the impact of short4em losses. GNen the portfo]io's strategic asset allocation and investment strategy it is Unde￿tOOd that potential short-tern losses are possible (in the order of losses up to 11>15% within a y￿. during a norn￿1 market cyde). 14

Report of the Trustees The Charity also recognises that there are several other foms of risk beyond short tenn volatility that need to be managed as part of the ongoing oversight monitoring pr(￿esS of the portfolio. These risks include the careful management of liquidty, the level of exposure lo non-steding denominated assets, the level of overall leverage in the p¢ytfolio and risks associated with investing alongside investors with different goals. The Charity has adopted the following policy in relation to Environmenlal. So(xal and Govemance (ESG) issues. and has communicated the policy to all furKJ managers viith whom tt invests. We take ESG factors into account when we buy new managers and when assessing existing managers. We also review our direct equty investrnents held via tracker fvnds io assess which companies we may ¥Msh to excludelengage with. We apply a materiality lens to any obsepéations and judgements that we make. The Trustees have exduded from our directly held investrnent portfdK) companie5 Vh￿ have significant involvem8nt {greater than 10% of tumover) in the production or retailing of alcohol or tobac(x). gambling or predalory lending. Companies wtth any involvement in the production or sale of indiscriminate weaponry are also excluded. Asset Allocation and Strategy 65.fi of the investment portfdio was allocated to growth assets durin9 the year. to provide longer lem relurns, with the remaining 35Yo alk>calion invested in dNersify'ng assets. Further details are given in note 9 to the accounts. Total Return Approach lo Investing The Charity operates a Total R81um approach to nvestrnents. V￿th freedom to invest the entire endowment with the aim of maximising total retums regardless of whether those returns accwe by way of income or capital growth. Investment Rolurns for 2020 Investment retums, net of fees, were almost £1 SOM. Total retums for the portfolio for the year were 14.3% {2019: 14.8%) and outperfomed Ihe portfdio benchfnark by 5.8 %. Over the last 3 years the p)rtfolio has exceeded its lontemi benchmark of CPI + 4% by 4.4% per annum. Investment Costs The Charity aims to maintain transparency over the tota fees paid on investments and regularfy reviews manager fees to ensure they are matched by performance. All investment perfornance is reported net of fees to enable us to monitor this closety and take coThective aCt￿n where necessary. We spent £13.9m (2019.. £9.1 m) on our investment fees and costs {excluding our private equity assets). This reflects both fees charged intemally within the investrnent funds as well as fees and cosis of £4.3m {2019= £4.1 m) paid in cash during the y8ar. Of the £13.9m. £8.8m was for management of our invement$ in altemative assets such as hedge funds. These are more expensive than traditi¢)nal lon￿On[Y investrnents. but over time we have obtained good retums wth lower volatility, which has more than compensaled for the additional fee costs. Fee costs Comprise ongoing fees generally set as a fixed percentage of the investment value and additional fees payable only if performartce thresholds and hurdles are exceeded. The perforfflance-related fees for our alternative investrnent assets amounted to £5.8m of the total expendtture, resulting from strong retums in 2020. 15

Report of the Trustees For our PrNate Equty investments. manager fees and profit share for investsnents are set against the fund'5 investment gains as general running costs of these funds. For the sake of transparency we note that a notional prowrtion of manager fees and profits for this part of the portfolio. based on the Chariws share of fund investments. was equivalent to a base arnount of £2.8m (2019.. £3.7m) and a performance-related profit share element of £9.8m12019'. £6.1 m). The size and increase in this element of the costs is due to the outslanding perfomiance of this part of our portfolio. "Core Endowmenv, (endowment funds) Under the Total Return approach. the Charity must ensure that the value of total endowment funds does not fall below the Core EndowmenL The Core Endowment is fixed at £276m. representing the value of the endowment as al 31 December 1991. Endowment fijnds in excess of the Core Endowment are known as the Unapplied Total Retum: these are the accumulated returns from whi(* the Charity may make funds available for grant-making. For intemal purposes the value of endowment funds is also compared to an inflation-adjusted measure of the Core EndowmenL The Charity's current pc4icy is to transfer each year from the endowment funds, into the Main Un￿Stricted and Estates Restricted funds, 4.0% of the total value of the endowment as averaged over Ihe previous 5 years (referred to as the "Distribution Rate-)- these funds are then available for grant making and operations. These transfers are funded over time by the lotal investment retums achieved by the Charity's endowment. The Trustees the Dislribvtion Rate from time to time and adlust as necessary to take account of prevailing rates of investment retvm. The movements in Unapplied Total Retum for 2020 a￿ shown in note 7 to the accounts. The Charity transfe￿ad £37.7 million into the Main Unrestricted and Eststes Restricted funds, calculated at a 4.00 Distribution Rate. For 2021 the Trustees have agreed a transfer of 4.0¥o. amounting to £39.5 million. At 31 December 2020. the end0v￿eTrt tunds of £1.2bn were well in excess of Ihe Core Endowment. ReseNes {grant4naklng funds) The Trustees consider that the Charitys endowment tunds provide sufficient flexibilty should unforeseen circumstances arise to give an urgenl need for additional grants or other spend, and the Trustees will consider additional spending from the endovmient if the needs arises. This is in addition to the annual distribution policy. which currently provides for a 4010 annual distribution. Given the unprecedented circumstances CA the Covid pandern￿, the Trustees have agreed lo withdraw additional funds from the Endowment in 2021 and anticipate doing thi5 untsl 2024 al the eadie5t. The Trustees stated policy is Ihat any unspent amounts from the annual investment distribubons should be retained in grant-making funds and spent in future yea￿. The Main Unrestricted fund balance stood at £1.4 million at the year-end and will be fully spent in 2021. The Estates Restricted fund balance. used solely for grants under the Parish programme, stocKI at £0.8 million at the year-end and will be spent in ￿tUre years as opwrtunities for new and increased Parish grants aro found. Risk Management The Trustees fo￿allY review risk on an annual basis as Y￿11 as vthen issues arise. and during the year adopted a new risk rnanagement framework to enable more effecttve risk managemenl. The Trustees also meet Ihe auditors during the year to discuss rerx)mmendations arising from their annual audil, which inform our approach. The Trustees have rewewed area5 of kX)lential risk for ihe Charity and wnduded that there are sufficient controls in place across Ihe organisation. 16

Report of the Trustees One of the key risks identified is that of substantial investment losses, which would reduce the amount of money available for grant-making over the longer-teTm and hence the impact of the Charity through the grant5 It awards., to address this the Charity. assisted by its investment adviser, has built diversified investment portfolio and has put processes in place to monitor cash flow aThJ spending, which should minimis& the potential for long tenn losses. The investment porrfolio has proved to be resiSient through the Covid-19 crisis. and the Charity is monitoring other risks vthich have been h￿ghtened by the ￿l$Is. This includes business continuty in the event of disaster or other business interruption; a policy arKI action plan have been adopted to ensure adequats contrd of this risk and plans were enacbj to ensure the oryoing operations of the Charity through the Cowd-19 lockdown. The Charity has been monitoring the perfOrfflan￿ of grants and the level of applications, as Covid-19 has proved very disruptive to many charities. The majority of ts Charity's existing grants have continued to run, though changes to the objectives have been agreed for some grants in response to the changed environment. The level of grant applications remains strong but manageable. Safeguarding is a key risk area, and a safeguarding polry and training plan are in place. Work is ongoing with regards lo Data Protection and the GDPR legislalion. Key areas have been addressed. arKI work continues to maintsin full Complian￿ as the Charity's aclivities develop over time. staff wellbeirg has an area of PriOTty duriTVJ Covid-19 pandemic. Th8 Charity continues to monitor staff wdlbeing, aiming to provide a supportive and safe working environment despite the difficulties that can arise wlh protracted working-from-home. along with speafic support and tools where this can benefft individuals. Preparatlon of the Accounts on a Golng Concem The Chariws nomial practice is to distribute no more than 4% of assets annually calculated on a five- year rolling basis, and this was the case in 2020. On occasion. the Chartty may make additional distributtons, in which case an assessment of affordability and ltyem sustainability is carried out, with athice from its investm￿1 advisor. Total assets at 31 December 2020 were well in eX￿$S of the £276 million "core endowmenf, which must be preserved. The Trustees continue to consider the Charity to be a going oyw and to prepare the accounts on this basis. Remuneration of Key Management Personnel and Staffing The Trustees consider the Board of the Charity and the Senior Management Team (the Director, Head of Grants, Head of Grants Administration, Head of Leaming and Evaluation. ard Head of Finance & Resources) as comprising the key managemerrt personnel of the charity. in charge of direding and ontrolling the charty and running and operating ￿ Ghanty on a day-toffjay basis. No Trustees are remunerated by the Charity. Remuneration for the Senior Management Team is reviewed annually, with salary increases detennined in light of inflation rates and affordability. Salary increases and remunerats'on levels are reviewed against other grant-making charities of a similar size and activty, to ensure remuneration is fair and not out of line with that generalty paid for Similar roles. Average staff numbers increased to 31 in 2020 (2019". 28), as we continued to invest in grant-making capabilities to support our main grant5 Strategy arKI the development and growth of other programmes. More detsils are given in note 6 of the accounts. 17

Report of the Trustees Conflicts of Interest From time to time the Charity makes grants to organisalions with whorn one or more of its Trustees is connected, typically as a trustee or member of staff. Tr Charity takes steps to ensure that decisions on these grants are made at amis-leruth, and in acctjrdance with its policies for dealro with potential conflicts of interest Tradlng Subsldiary and Fundralslng The Charity established a trading subsidiary in 2016. Henry Smith TradirwJ Ltd. to manage the grant making ServI￿S it provided to the Trusthouse Charitabte FourKJation. These seNces were provided by a separate staff team housed within the Charity. The company was sold on 31 January 2020 and the Servi￿ are now provided elsewhere. The subsidiary was wholty owned by the Charity. with a share capital of £100, bui the result5 of the subsidiary are not consolidated within these accounts as the overall impact on the financial statements is immaterial. The subsidiary donated £2k under Gifl Aid to the Charity in 2020. The Charity has no fundraisirvJ aththes requiring disdosure urKler S162A of the Chartlies Act 2011. The Charity's objects and actlvltles for the public benefft The Charity is constituted as Iwo funds. the Main Fund and Estates FurKI. The objects of the Main Fund of the Henry Smith Charity have been changed at various points over the years. while maintaining the spirit of Henry Smith's original bequesL The objects as currentty stated in the Charity Commission Scheme of 5 April 2000 are as fOll￿s. For the rdief of the poor kindred of Henry Smith. For hospitals. hOsp￿e$ arKI othw foms of residenlial Ca￿ or provision of health care for those who are sick OT in need and for other ¥￿tItU1M)n$ FYovidNvJ rned￿l asststan￿ for those in financial need. For the relief of po￿, aged CK sick and their spouses. Wtdows, widowers and dependants. For the relief of poor, aged or sick members of the cletgy and their spouses, whkn￿, widowers and dependants". For the relief. rehabilitation WKI training of dtsabted persons indLKlirvJ dvsabled ex-servicemen and war widows., For any medical research. For the prOm￿lOn of moral welfare or xrial service.. and For the relief and rehabilitation of those persons who are or have slaves or serfs and their deperKlants who are in or distress or for weventing their seizure. The objecs of the Estates Fund of the Henry Smiih Charity are as foll￿S. For the relief of w, aged or infim in spe¢rf￿. historic parishes.. For the relief of poor. aged or infim) elsthyhere in England arKI Wales; For the benefft of hospitals or convalescent homes in the specffied, historic parishes; and For the benefrt of hospitals N convalescwtt homes elsw*here in England and Wales. The Charty's objecls provide the framework within which more detailed furKlirvJ prioritw are set; these priorities will change from time to time as needs change and the furKling landscape shtfts. Current priorities for the Charity's grant programmes are set out on the Charity's websrte. 18

Report of the Trustees In summary, the Charity aims to bring about lasling change to people's lives. helping them to benefit from and contribute to society. This is achieved by funding organisations that work with people to reduce soual and economic disadvantsge. Statement of Trustees. Responslbllltles The Trustées are responsible for preparing the Ttustees. Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (Untled Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Twslee5 to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that peri¢￿1. In preparing these finanaal statements, the Trustees are required to: select suitable accounting polides and then appfy them consistently; obsèrve the methods arml PTinaples in the Charities SORP. make judgments and eslimales that are reasonable and prudent" state whether applicable accounting standards have been frAlowed. subject to any material departures disclosed arKJ explained in the financial statements: and prepare the financial statements on the going concem basis unless li is inappropriate to presume that the Charity will continue in business. The Trustees a￿ responsible for keeping proper accounting records that disclose wth reasonable accuracy at any time the finanaal position of the Charity and enable them to ensure that the financial ststements comply wth the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and Ihe provisions of the trust deed. They are also reSponsi￿e for safeguarding the assets of the Charity and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustees on 23 September 2021 Qw Vivienne Dews Chair 19

Independent Auditorfs Report to the Trustees of The Henry Smith Charity Oplnion We have audited the ffin8n¢yal statements of The Henry Smth Ch￿lty {'Ihe charity.) for the year erKled 31 December 2020 which comprise the Stslement of Financial Activities, Charity Balance Sheet. Stslemenl of Cash Flows and notes lo Ihe financial siatements. induding significant accounling pOI￿leS. The financial reporting framework that has been applied in their preparth.on is appI￿￿e law and United Kingdom counting Standards, including Financial ReKKJrting Standard 102 The Financial Repofting Standard applicable in the UK and Republic of Ireland (United KingdNn Generauy AC￿pted Accounting Practice). In our the financial ststements.. ve a true s￿1 fair vtew of the state of the charity's affairs as at 31 December 2020 and of the ch8rty's income and receipt of endowments arml expenditure. for the year then ended; have been Properly rryared in accordance with United Kngdom Generalty Accepted h£c(￿￿ting Practice-, and have been prepared In accord8n￿ wlih the rewirements ofthe Charities Act 2011. Basis for oplnlon We Gonducted our audrt in accordance with Intemalional StarKlards on Audibng IUKI IISAS IUK)) and applicable law. Our responsibilities under those stsndards are further described in the Auditor's responsibilitie5 for Ihe audil of the financial slalements sect￿￿ of Our repc¥t- We are independent of the charity in accordance bmth the ethical requirem8nts thal are relevant to our audit of the financial statements in the UK, including Ihe FRC'S Ethical Stsndard. and we have fijlfilled our other ethical responsibllrties in accordance wrth these Tequirements. We belvdve that the audit evidence we have oblained is sufficient and appropriate to provide a basis for our o￿n￿)n. Concluslons relatlng to golng concèrn In auditing the financi81 stslements, we have cOrK4￿jed Ihat the trustees use of the going concern basis of accounting in the preparab'on of the financial ststements is appropriate. Based on the work we have performed. we have nol identified any material uncertainties relating lo events or condition5 that. individualty or c(Alectively. may cast signtficanl dcmjbl on the charity's ability to continue as a going concem for a peric*J of at least twelve months from when the financial statements are authorised for issue. Our responsibl11t￿S and the responsikn"lities of the Iruslees with respect to going concem are described in the relevant sections of this reporL Other Infoffliation The trusiees are reswjnsible for the other infomation contsined wilhin the annual ￿pOrL The other information comprises the infomalion included in the annual report. other than the financial sialements and our audilorfs re￿)rt thereon. Our opinion on the financial slatements does not cover Ihe other infomiation ￿d. except lo the extent otherwise ewicily staled in our report. ￿ do not express any form of assurance condusion thereon. Our responsiblity is to read the other infwmation and. in doing 50. consider whethw the other information is malerialty inconsislenl with the financkil slalements ￿ our knowledg8 obtained in the audit or othemise appears lo be materially misstated. If we kdentrfy such material inconsi%tencies or appa￿nt material misslatements, we are required lo delermine ￿elher this gNes rise to a material mis5talement in the financial slalements themselves. If. based on the work we have perf0M￿l. we conclude that there is a material mlsstalement of this other infomalion. we are required to reporl that facL We have nothing lo repcfft in thi5 regard.

Independent Auditorfs Report to the Trustees of The Henry Smith Charity Matters on whlch we are requlfed to rnport by ex¢eptlon We have nothing lo report in respect of the fojlowng matters ￿ relation lo which the Charities (Accounts and Reports) Reg￿allonS 2Th)8 requires us lo reKx)rt to you rf. in our opinion.. the information given in the financial slatements is incOr￿lsten1 in any material resp￿￿ the Iruslee's rey)¢ or sufficaenl and proper accounting rgcords have not been kepl ty Ihe parent charity: or the financial ststements are not agreement wilh the acC￿￿ti￿j rec(Yds and returrts,. or W8 have not received al the inf(Thatk)n arKI eXplanatiC￿ we require for our audtL Responsibilit185 of the trustees As explained more fvlty in the trustees, resFonsilNlibes ststemenL the trustees are responsible for the preparation of the finanoal stslements and for being satisfied that they give a tnje and fair view. arml for such internal control as the Iruslee determine is necessary to enable the preparation of financial statements that are free from m8terial mbsstalement. whether due to fraud or eFror. In preparing the financial slalemenls. the Irustee is responsible for assessing Ihe charity's ability lo continue as a going concem. disclosiryJ. as aprAicable. matters r81aled lo g￿ng concem and using the going concem basis of 8Gcounling unles5 Ihe truslee either intends to liquidate the charity OT to cease Iwerations, or have no realistic alternative bul to do so. Audltorfs responslbllllies foi the audit of the financial slatem•nts We have been app)inled as 8ud5tor under sectton of the Charittes Act 2011 and report in accordance with the Acts and relevant wulabons made ￿ having effect thereunder. Our objectives are to obtain reasonable assurdn￿ about whether the fmancial statements as a whole are free from material rnisstalem8nl. whether due lo fraud ￿ error. and to issue an auditor's report Ihat includ8s our opinion. Reasonable assurance i% a high ￿ve1 of assurance, but is not a guarantee ihal an audit conducted in accordance with ISAS (UK) will always det8Ct a material misststemenl when ti exi515. Misstatements can arise from fraud or error and arè considerÉd matenal rf. indivKlually or in the aggregale. they coukj reasonably be expected lo in11uence the ewnomic decisKJns of users taken on the basis of these financial statements. Details of Ihe extent to which the audit was Cor￿Idered capable of detectiro irregularibes, including fraud 8nd nonknC(Nnpliance wtlh laws ar￿ regul8t40ns are set out beknw. A further description of our responsibilttses for thg audil of ihe finanaal statements 15 bcated on the Financial Reporting Counol's ¥￿ile al: www.frc.o .ukJaudilor5res nsibilities. This d￿CriptIon fom￿ part of our auditor's Teport. Extent lo whlch the audlt was consldered capable of detecting irregularities. Ineludlng fraud Irregularities. including fraud, are instances of non-coM￿￿1nce with laws and re9￿ationS. We idenlrfied and assessed the risks of material misstatement of the financial statements from irregularibe5. vthelher due to fraud or error. and discussed these between our audit team members. We then desb3ned and performed audit procedures responsive to those risks. indudiry oblaining a￿1[1 evIde￿e sufficient and appropriate to provide a basis for our opinion. We obtsined an underslandlng of the legal and regulatory fraMey￿ rythin which the charity 0￿rates. focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the finanud stalements. The laws and regulations we constdered in contsxt were the Charities Act 2011 together V•4th the Charities SORP {FRS 1021. We assessed the required complianc8 wilh these laws and regulations as part of our aLJdil py￿￿ure5 on the related financÉal stalement items. In addition. we consi(Jered provisions of other laws and regulations that do not have a direct effect on the financial statements but complh2nce wh￿h might be knndamental to the Charity's ability lo operate or to avoid a mateiial penalty. We also considered the opportunits arKI Ir￿entiveS that may exisl within the charity for fraud. Auditing standards limit Ihe required audit [￿ed￿re$ to wjentify r￿n-cOMpliance with these laws and regulations to enquiry of the Trustee arKY other mar￿gernent and inspection of regulalory and legal correspondence. if any. 21

Independent Auditorfs Report to the Trustees of The Henry Smith Charity We identsfied the grealest risk of material impact ￿ the financial statements from wregularities. I￿luding fraud. lo b8 the oveffide of contr(As by managemenL Our aurjit procedures to Tespond lo these risks includetj enquirie5 of management and the Finance and General Purposes Committee about their own identification and assessment of the risks of irregularities. sample tesb.ng on the wsting of journa15. re¥1￿1ng accounting estimates for biases. reviebwro regulalory correspondence wilh the Charity c￿nmISSIon and mading minutes of meetings of those charged with governance. Owift9 to the inherent limitstion$ of an audil. Ihere is an unav(idabl& risk that we may not have ￿tected some material misstatements in the financial ststements. even though we have properly Flanned and performet1 our audit in accordance with auditing slandards. For examp￿. the further removed non-compliance with laws and regulations lirregularitiesl is from Ihe events arKI transactsons reflecled in the finan￿al statements. the less likely the inherendy limited procedures requirg(J by auditing stsndafds woukj identify IL In additKsn. a5 wilh any audit. there remained a higher risk of non-delectson of irregularities. as these may involve Collusion, forgery. intentional ornissions, rnl51epresentati￿$. or the override of intemd controFs. We are not responsi￿e for preventing n0n0imF4ian￿ and cannot bg 0xp￿d to detect noTrcomFAian¢o wilh all laws and regulation5. Us¢ of our report This report is made solely lo the tharitls trustee. as a body. in accord8nce with Part 4 of the Charities (Accounts and ReFM)rts) Regulations 2008. Our audit work has been urldertaken 50 that we might state lo the charity's trustee those matters we are required lo state to them in an auditorfs report and for no other purwjse. To the fullest exlenl permitted by law. we do not accept or assume respon5ilj.lity to anyone other than the charity and the charity's truslee as a bcty. for wr audit work. for this reporL or lor the oplnions we have fom)ed. .L. LLf Crowe U.K. LLP Slalutory Auditor London 5 OctobÈr 2021 Crowe LJ K LLP Is arfrthlmrnla5 ty¥irth￿ Ll its as •Jdilcf cla corwy und2r ￿ttIc￿ 1212 of the CcrfnpwAB5 Ad 2r

Statement of Financial Activities for the Year Ended 31 December 2020 Main cmc Unrestricted Reslricied RestriL#ed Fund Fund Fund £'ooo 2020 Totsl £'ooo 2019 Total £'ooo Fund5 £'ooo £'o INCOME Investment income (note 3) Olher income Transfer to income (note 7) 10.038 10,038 2.027 11.907 129 27 36,852 {37.7001 TOTAL INCOAIE 36.879 2,000 127,6621 12.065 12,036 EXPENDITURE (note 4) Expenditure on raising funds (investment costs) 13.882 13.882 9,111 Charltable 8¢tlvltles Grant-Tnaking 38,661 855 2,000 41.516 33.909 TOTAL EXPENLIITURE 38.661 855 2,000 13.882 55,398 43.020 Gains on investment and urrency assets Inole g) 153.242 153,242 142.377 NET MOVEMENT IP4 FUNDS {1.7821 171 111.698 109,9)9 111.393 TOTAL FUNDS BROUGHT FORWARDA T 1 JAPIUAR Y 2020 3.135 775 1,088,320 1.092.230 980,837 TOTAL FUNDS A T 31 DECEMBER 2020 1.353 1.21)0.018 1.202.139 1.092.230 The notes on pages 26 to 37 forrn part of Ihese accounts. All income and expenditure dwive from conlinuing activities. The statemènt of financial activities includes all gains and losses recognised during the year and there is no differen￿ be￿een the results for the year staled above and their hiStOr￿al cost equivalents. 23

Balance Sheet as at 31 December 2020 Main Unrestricted Fun(J £'o Estsles CMC Restricted Restricted Fund Fund £'ooo £'ooo ErKlowment Funt £'OLf) 2020 Tolal £'ooo 2019 Total £'ooo FIXED ASSETS Tangible Fixed Assets (note 8} Invèslmenls (note 91 Programme Related Investments (note 91 Totsl Fixed Assets 123 43.307 123 123 1.243.613 1.126.616 1.200.306 16 16 16 43.430 1200.322 1.243.752 1.126.755 CURRENfASSETS Debtors Inote 101 Cash at bank 780 5,688 1,000 592 2.372 6.687 621 6,262 6.468 592 9.059 6,883 CREDITORS Amounts falling due within one year {nolè 111 (28.4681 (231) (1.0001 {896) 130.5951 124,059} NET CURRENT ASSETS/ (LIABILITIES) {22,(M)01 768 1304) 121,5361 (17.176) TOTAL ASSETS LESS CURRENT LIABILITIES 21.430 1,200.018 1.222.216 1.109,579 CREDITORS Amoun15 falling due after one year {not8 121 (20,077) (20.077) 117,3491 NET ASSETS 1,353 1.200.018 1.202.139 1.092.230 FUNDS Main Endowment FuTrJ Estates Endowment Fund Main Unrestricted Fund Eststes Restricted Fur CMC Restricted FurKI 1,172.758 27.260 1.172.758 1.063.676 27.260 24,644 1,353 3.135 775 1.353 768 TOTAL FUNDS A T 31 DECEMBER 2020 1,353 1.200.018 1.202.139 1.092.230 Approved by the Trustees on 23 September 2021 and signed on their behalf by: MQ Vivienne Dews Chair Ben Kemighan Trustee The notes on pages 26 10 37 form part of these accounts. 24

Cashflow Statement for the Year Ended 31 December 2020 2020 2019 £'ooo Net cash used in operatlng activitles (note 16 {37,021) (32,689} Cash flows from Invesllng actlvllies Investment Income received Payments for Investrnent Management and advice Purchase of tangible fixed assets Cash withdrawn from fixed asset investrnents lo fund operating costs Repaymenl of social investsmenis 9.178 (4,365) (43) 11,987 (4,1221 (69) 32.676 24,434 Net cash provldtd by Investlng actlvitles 37,446 32,234 Chango In and cash equlvalenls In the year 425 {455} Cash and cash equivalents at 1 January 2020 6.262 6.717 Cash and cash e ulvalents at 31 December 2020 6,687 The notes on pages 26 to 37 forn part of these accounts. 25

Notes to the Accounts CHARITY INFORMATION The Charity (registered no. 230102) is a public benefft entity estsblished in the UK as a Trust governed by a Scheme of the Charity Commissioners dated 5 Ociober 2000. It operates from its principal place of business, 65 Leadenhall Street. London EC3A 2AD. ACCOUNTING POLICIES Basls of Preparation The accounts have been prepared on a going concem basis under the historical cost convention, as modified by the revaluation of certain fixed asset investments, and in accordance with applicable accounting standards, the Ststement of Recommended Practi￿.. Accounting and Reporting by Charities preparing their accounts in accordance with Ihe Financial Repo￿ng Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and the Financial Reporttng Standard applicable in the UK and Repu￿1¢ of Ireland {FRS1021 and the Charities Act 2011. The finanoal statements have been prepared to giv8 a 'true and fairf view and have departed from the Charities {Accounts and Reports) Regulations 2008 only to the exient required to provide a 'true and fair view.. This departure has involved followng the Statement of Recommended Practice applicable to tharities p￿paring their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Irdand IFRS 1021 issued on 16 July 2014 rather than the previous Statement of Recommended Practice: Accounting and Reporting by Charitses effective from l April 2005 which has since been withdrawn. Truslees have considered the impact of the Covid-19 pandemic on the Charivs actNities and resources. Effects of Ihe crisis on investment perfomiance and grant making activilies have been reviewed and included in our risk management framework. These factors have been considered aiongside relevant forecasts and budgets and trustees are not aware of any material uncertaintie5 surrounding the Chariws ability to continue as a going concem. During 2016 a trading subsidiary, Henry Smith Trading Limited. vms established with a share capttal of £100. c(Knpany number 10153657 arKJ registered add￿$$ at 65 Leadenhall St. London, EC3A 2AD, and was wholly owned by the Charity until its sale on 31 January 2020. The results of the trading subsidiary are nol consolKlated as the impact on the financial statements is immaterial. More details are given in note 9. Funds The Charity's Funds indude two pwmanent endowments. The Main Endowment Fund may be used to support all the Charity's objects. The Estates Endowment Fund may only be used to support charitsble activities in specffied, historic parishes in England. The assets of both funds are pooled and managed as a single investment porttolio. investment reiums are allocated in proportion to the Funds. asset values. The Estates Restricted Fund refiects funds made available from the Estates Endowment Fund for granl-making which are not yet spenL The CMC Restricted Fund ￿presents funding provided by DMCS for grant-making to address the impact of the Covid-19 pandembc. £2m wa5 received from DCMS and awarded in grants during the year. A further £2m of grants. matching the DCMS-funded grants, were funded from the Charity's Unrestricted Fund. The Charity also holds fvnds to cover the cAJsts of managing legacy activities related to the Equitable Charitable Tnjsl. Once these legacy activilies are cotnpleted any remaining funds will be made available for grant-making. At 31 De￿rnber 2020 £151 k was held within endowment funds for this purpose. Income Dividends are recognised as receivable when a security is fisted as ex4ividend. Income from fixed interest investments is recognised when receivable and the amount can be rneasured reliably by the Charity; this is norrnally upon notification of the interest pa"Kl LY payable by the bank or investment fund. Other investment income is recognised v4hen notified as payable to Ihe Chartty by the relevant fund managers. Other income indudes fees for administralion services provided lo Henry Smith Trading Limited and is ￿CogniSed in line with the serwce provided.

Notes to the Accounts Expendituro Liabilities are recognised as expenditure when there is a legal or constructrve obligakn.on committing the Charty to the expenditure. Grants, both single and mult￿year, are recognised in the accounts as liabililies after they have been approved by the Trustees. the recipients have been notified and there are no further tenms and conditions to be fulfilled within Ihe control of the Charity. In these ircumstances there is a valid expectation by the recipients that they will receive the grant. Expenditure on ralslng funds Expenditure on raising funds indudes the direct costs paid to service providers for managing the investment asset5. the direct costs of activtties indudin9 Staff salaries and other expenditure, and an allocation of related SUPFQrt costs. Support costs are allocated aGcording to an estimale of the proportional usage across different activities supwrted. generally on a stsff time basis. Charltable actlvltles The cost of charitable activities consists of grants awarded, the direct costs of grant making activities including staff salaries and other expenditure. and an alIc￿tiOn of related support costs. Investments Marketable investment assets are induded in the financial statements at their fair values, eilher al closing market prices (listed investments) or through independent valuation (unlisted direct propety) or from valuations provided by the investment manager (unlisted hedge funds, private equty and indirecl propety). Cash held for inve5trnent purposes 15 included within investments. The Charity enters into forward currency ￿)ntraCtS to reduce ￿rrencY exposure in its investrnent portfolio. The basis of fair value of these forward exchange contracts is estimaled by using the gain or loss that would arise from closing the contract at the balance sheet date. All investment and currency gains and losses are recognised as incurred. Penslons The Charity operates a defined contribulion schem8. Contributions payable to the ￿heme are included as expenditure in the period in whith the Charity receives the related seNic8s from the em￿oYees. Irrecoverable VAT Irrecoverable VAT is incknled in the Statement of Financial ActivitEs or Fixed Asset5 Within the expenditure to whlth it relates. Fixed assets Leasehold improvements are included at cost and depreaated on a straight-11￿ basis over the remaining temi of (￿patIOn of the Charrvs premise5. Fixtures. fittings and equipment are included al cost and depreciated on a straight4ine basis over 4 years. Assets below £1,000 in cost are not capilalised. The cost of assets indLKles the original purchase price of the asset and the cosls attributsble to bringing the asset to its vlorking condition for its intended use. Operating leases Rental costs of operating leases where the Charity is a lessee are charged on a straight-line basis ovèr th8 lease term, even if the payments are not mad8 on such a basis. Benefrts received and receivable a5 an incentive to sign an operating lease are similarly 5wead on a stra￿hl-11ne basls over the lease temi. Rental income from operating leases where the Charity is a lessor is recognised on a straight-line basFS over the term of the relevant lease. 27

Notes to the Accounts Key Judgements and assumptlons In the application of the charity's accounting wlicies. Trustees are required to make judgements, estimates and assumptions about Ihe carrying values of assets and liabilities that are not readily apparent from other sources. The estimales and underlying assumptions are based on historical experience and other factors congdered to be relevant. Actual results may differ from these estimates. Th6 estimates and underlying assumptions are rewewed on an on-going basis. Revisions to a¢counting estimates are recognised in the perioj in which the ests'mate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods. The key sour(Ys of estimatton uncertainty that have a signtficant effect on the amounts recognised in the financial statements a￿ described in the accounting policies and are summarised bekny: Valuation of investment properties- these are staled at their estimated fair value based on professional valuattons as disdosed in note 9. Commercial Property valuations are prepared by applying an investment yield to the appropriate rental income stream. having regard to Ihe individual asset fundamentals. including inter alia. location. lease length and tenant covenant strength. The relevant investmenl yield and rental values are determined prinupally through the use of comparative data. Valuations for Rural Estates properties let on Assured Shorthold. Fafm Business or protected r8sidential tenancies are calculated by applying a discount lo the vacant possession value to reflect the degree to which vacant possession is not immediately available. Valuations for properties let under Ihe Agricultural Hoidings Act 1986 are prepared by making an assessment of the estimated rental value of the properties. as compared to the current rent passing, and applying lo the estimated rental value a valuatron yield to refiect the indNÉdual characteristics of the property. Valuation of private equty investments- these are staled at their estimated fair value based on valuations carried ￿t by the fund managets. Flnancial instruments The Charity has financial assets and financial liabilities of a kind that qualfy as basic financial instruments. Basic financial instruments are initially recognised at transaclion value and subsequently measured at amorbsed cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank. tcyther V￿th trade and other debtors. Financial liabilities held al amortised cost comwse trade and other credrtors. Investments held as part of an investment p￿￿10 are hekl at fair value at the Balance Sheet date, with gains and losses being recognised within income and expendilure. INVESTMENT INCOME 2020 £'ooo 2019 £￿0 Equities Fixed Income Propety 3.189 5.038 457 6,412 6.559 10,038 11,907 28

Notes to the Accounts EXPENDITURE Expenditure on Raising Funds Grant- Goveman making £.￿0 Total 2020 £'ooo Total 2019 £'ooo £'ooo Grants awarded lnote S) 39.205 39,205 31,706 Direct costs Direct propety costs Investment management. administration an(1 advi Staff costs (note 6) Auditors, remuneration other costs 2,029 2.029 929 11,704 82 11,704 1.068 40 133 8.041 993 36 210 894 92 40 42 91 13.815 40.190 174 54.179 41.915 Support costs Staff costs (note 61 Premises and Offi￿ services 17 472 651 496 723 483 622 67 1.123 1,219 1,105 Totsl expenditure 13,882 41,313 203 55,398 43,020 GRA￿s AWARDED 2020 £'ooo 2019 Grants to organisations Grants to individuals Grants retumed or cancelled 38,380 1.321 (496) 30.646 1.371 (311) Total Grants Awarded 39,205 31,706 Further analysis of cxff main grant awards is given in the Trustees. Rep(Kt and a full listing of grants awarded to organisatsons is aVaila￿e on our website. This infomation has not been audrted. 29

Notes to the Accounts STAFF COSTS 2020 £'ooo 2019 Wages and salaries costs Social security costs Pension costs Other benefrts 1.227 138 131 68 1.166 118 125 67 1.564 1.476 The average number of employees Generating Funds Grant-making Governance 29.00 1.00 26.00 Total 31.00 28.00 The number of employee5 With emoluments greater than £60.IYJO £110.000-£120.000 £80.000-£90,000 £60.000-£70.000 No pension conlribulions were outstandirbg at the year end. Total remuneration for key management personnel for the year amounted to £469,CQO {2019: £463,000). MQVEMENT IN UNAPPLIED TOTAL RETURN The overall movement in unapplied total relum in the year was as follows: 2020 £'ooo 2019 £'ooo Unapplied total return at 1 January 2020 812.320 702.877 Add: Income ￿CeiVed Less- Costs of raising funds Add '. Investment gains 10.038 (13.882) 153,242 11.977 (9.111) 142.377 Unapplied totsl retum before transfer to income 961.718 848.120 Less: transfer to income (37.7(M)) (35.800) Unapplied total retum at 31 December 2020 924.018 812,320 Add: core endowment 276.OCMJ 276.000 Endowment assels at 31 December 2020 1,200.018 1.088.320 30

Notes to the Accounts The Chaiity is perniitted to adopt a total relum approach to ils investrnents by Order of the Charity Commissioners for England and Wales dated 20 December 2006. TANGIBLE FIXED ASSETS Fixlures. Fittings & Equipment £'ooo 161 Leasehold lrnprovemenls £.(￿0 264 Total £'ooo 425 Cost at 1 January 2020 Additions Disposals 49 49 (61 16) Cost at 31 December 2020 210 258 468 Accumulated depreuation al 1 January 2020 73 302 Depreciation charged in Ihe year 38 43 Accumulaled depreuation at 31 December 2020 111 234 345 Net Book Value at 31 December 2020 123 Net Book Value at 31 December 2019 88 35 123 INVESTMENTS 2020 £'ooo 2019 £'ooo Listed Investments Unlisted Investment5 Investment Properties Cash and other balances 355,177 629.414 196,386 62.636 332.783 $34,205 201.947 57.681 Totsl Investments 1.243,613 1.126.616 The movement in market value of investrnents (exduding cash and other balances) was as follows: 2020 2019 £'oTh) Listed Investments Market Value at 1 January 2019 Investment gainsl(losses) net of fees Addrtions Disposals 332,783 355.786 33,842 47,459 1,933 118.244 113.381) (188,706) Market Value at 31 December 2020 355,1n 332.783 31

Notes to the Accounts Unlisted Investn7ents Market Value at 1 January 2020 Investmenl gains net of fees Additions DisFTrosals 534,205 420,258 121.452 65.929 61,555 160,856 (87.798) (112.838) Market Value at 31 December 2020 629,414 534.205 Inv8Stmenl Properties Market Value at 1 JanLBry 2020 Investment gainsl(losses) net of fees Addilions Disposals 201.947 (4.434) 336 (1.463) 176.593 26.741 (1.387) Market Valuè at 31 Decèmber 2020 196.386 201.947 Total gain5 were made up as follows: 2020 £0 2019 Gains on Investment assets Other cU￿encY Ilossesygains 159,042 (5.800) 144.978 (2,601) Inveslment and currency galns 153.242 142,377 The market value of lisled investrnents al the year-end was £355m {2019." £333m). None of these were UKaonly investrnents (2019: Nil). The historical cost of listed investments was £246ffl12019: £253m). 2020 Eooo 2019 £'ooo Programme Related Investments 16 16 Ai 31 December 2020 the Charity had nine foreign exthange forward contracts open in eight currencles, with a notional sterfing asset of £13.5 million. These contracts were entered into lo mitigate the currency risk of being a UK based charity while holding global equity and hedge fund assets in local currencies. These foreign exchange forward contracts have all been revalued at the applicable year-end rates and the ￿sUltIng unrealised gains are induded within the overall value of the investrnents above. The settlement date for the contracts ranged from 31 January 2021 to 30 June 2021. The Charity's direct holdings in property were value(l at 31 December by currently Registered RICS Valuers employed by the Charity's property advisers, and in accordance with the RICS Valuation - Professional Standards (January 2014> published by the Royal Instilution of Chartered Surveyors. 32

Notes to the Accounts The Charity has ￿mmItted lo fund up to a fijrther £103m of ￿pital calls from private equity fijnds. These calls will be funded from the sale of liquid assets across the investrneni Portfolio, and from distributions from private equity fvnds. During the year the Charity hekl 100 ordinary shares. comprising 1￿ of the share capital, in Henry Smith Trading Limited bvhose registered Off￿ was at 65 Leadenhall St, London, EC3A 2AD. The company was sold on 31 January 2020. £2,000 was dC￿￿ted to the Chartty under Gift Aid during 2020. 10. DEBTORS 2020 2019 £'o Rents receivable Other debtor5 Prepayments 1.199 1.002 171 311 69 241 1372 621 11. CREDITORS AMOUNTS FALLING DUE wrrHIN ONE YEAR 2020 £'ooo 2019 £'ooo Grants payable Accruals Rental income in advance 29,603 698 294 22,144 1.632 283 30.595 24.059 Movements in rental income in advance were as fdlows: Balance brought forward at 1 January 2020 Released to incom8 in the year Deferred in the year 283 (283) 2g4 Balance carried forward at 31 December 2020 12. CREDITORS - AMOUNTS FALUNG DUE AFTER MORE THAN ONE YEAR 2020 £'OCNJ 2019 £'ooo Grants payable Accruals and provisions 19.910 167 17,164 185 20.077 17,349 33

Notes to the Accounts 13. MATURITY OF FINANCIAL UABIUTIES 2020 2019 In one year or less. or on demand 30.595 In more than on8 year, but not more than Iwo years 14.275 In more than ￿ years, but not more than five yeats 5,709 In more than five yea 93 24.059 12.561 4,675 113 50.672 41.408 The movement in grants payable during the year was as follows: 2020 2019 £,￿0 Grants payable at 1 January 2020 Grants awarded Cancelled grants Payments made 39,308 39,701 (496) (29.000) 35.982 32.017 {311) (28,380) Market Value at 31 December 2020 49.513 39.308 14. RELATED PARTY TRANSACTIONS Expense5 of £425 {201g: £3.9641 were reimbursed to one Trustee during the year12019: four) to cover travel and other related costs lncaj￿ed by them in fulfilment of their duties. Th8 Trustees re￿IVed no remuneralion during the year or in the previous year. Annual subscription, grant awards. conference arKI training expenses totalling £32.170 were paid during the year (2019.. £13,058) to the Association of Charitable Foundations. of vthich N Adand, Director of The Henry Smith CharTty, is a Trustee. During Ihe year costs of £12k12019: £52k) from the Charity We￿ recharged to Henry Smith Trading Limited in ￿latiOn to its management and administration. D Allam and V Dews. Trustees of The Henry Smith Charity, and N Acland. Director of The Henry Smith Charity. were also Directors of Henry Smith Trading Limited until rt5 sale in January 2020.

Notes to the Accounts 15. OPERATING LEASE COMMITMENTS At year-end th8 Charity held a lease for tls premises expiring in March 2026. Rentsl payments amounted to £220.000 in 2020 and are contracted to be £191.000 per annum until the end of the lease tem. At year-end the Charity held rental leases on its investment properbes under which payments are receivable until lease expiry or temi of notice as follows: Yèar Payments receivable In year £000 2021 2022 2023 2024 2025 and subsequently 1.632 3,340 611 1.208 The total pa￿ents receivable under rental leases at 31 December 2020, until expiry or tenn of notice for all leases. was £51.6 million. 16. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NEf CASH FLOW FROM OPERAnNG ACTIVITIES 2020 £'ooo 2019 £'ooo Net movement in funds 109.909 111.393 Investrnent gains Investment income and deposit interest Investment management and advice Depreciation De¢rease1(inc￿a$e) in debtors Increase in creditors Currency (losses}Igains (153,242) (142.377) 110.0651 (11,966) 13.733 8.970 43 33 {863) 329 9.264 3,530 {5,800) (2.601) Not flow from operatlng actlvltlos (37,021) {32,689) 35

Notes to the Accounts 17. STATEMENT OF HNANCIAL ACTIVMES FOR PRIOR YEAR Re5taled 2018 Total £'o 2019 Total Fun Furxj Funds INCOME Investment incorne (note 3) Other Income Transfer to Income (nele 7 11.￿J7 70 (35.8001 11.￿7 129 12.986 116 34.995 TOTAL INCOAIE 35.054 (23.8fdl 12,036 13,102 EXPENDITURE Inote 4) ExpendibJre on raising funds linv•strnenl c05ts1 Charltable Ktivities Granl-mèkng 9.111 7.677 33.640 TOTAL EXPENOITURE 33.309 9.111 43.DXI Gainslllosses) on mve5trnerhl4nd cwrency a55e15 (note 91 142.377 142.377 (1mOI NET MOVEAIENf114 FUNDS 1.745 205 109.443 111.393 <30.1051 TOTAL FUNDS BROUGHT FORWARD A T I JANUAR Y 2019 570 978.877 980.837 1,010.912 TOTAL FUNDS A T 31 DECEh18ER 2019 3.135 1.08JA20 1,fA2,230 9￿,837 36

Notes to the Accounts 18. BALANCE SHEET FOR PRIOR YEAR Main 2019 2018 Tolal Furnl Fw)J FIXED ASSErs Tang1t4e Fixed Assets (￿te ei Inveslmenfs Inole 91 Prograrnme Related Inveslmenis IrKJle 91 123 37.644 123 1,126.616 87 1,010.921 1.088.972 16 16 20 Tol•l Fix•dAssets 37,767 1,CQ8.988 1.126,755 1.011.02B CURRENT ASSETS DebtW5 Inole 101 Cash al bank 197 424 621 970 6.717 5.$03 424 6.883 7,687 CREDifoRS Ams)unts lauing due wilhin one year Inole 131 (22.786) {1811 11.0921 124.0591 124.6921 NEf CURRENfASSErs/ (UA8ILmESJ 117283) 77S 16681 117.1761 {17,CKISI TOTAL ASSETS LESS CURRENTLIA8ILmES 775 1,008.320 1.109.579 994.023 CREDffORS Amounts fallirwj after ong year Inole 121 117.3491 117.3491 113.186) NEfASSErs 3.135 715 1.088.320 1.091230 980,837 FU14DS Main EThl0wff￿I Fund Estales En(Sowment Fund Main unreStr￿ted Fund Estsles RestrKled Fu￿1 1,063.676 24.644 1,Cfj3.676 24,644 3.135 TTS 956.758 22,119 1.390 570 3.135 T15 TOTAL FUNDS A T 31 DECEMBER 2019 J,135 775 1.088.320 1,092.230 980,037 37