## **THE GATSBY CHARITABLE FOUNDATION**
ANNUAL REPORT
5 APRIL 2024
The Peak 5 Wilton Road LONDON SW1V 1AP
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**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
|**CONTENTS**|**CONTENTS**|**PAGE**|
|---|---|---|
|**1**|Report of the Trustees|2-25|
|**2**|Independent Auditor’s Report|26-29|
|**3**|Statement of Financial Activities|30|
|**4**|Balance Sheet|31|
|**5**|Cash Flow Statement|32|
|**6**|Notes to the Accounts|33-43|
Report and Accounts – 5 April 2024
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**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **REPORT OF THE TRUSTEES**
## **Legal and Administrative**
The Gatsby Charitable Foundation (Gatsby) was established under a Trust Deed dated 17 March 1967 and is registered with the Charity Commission under No. 251988.
**Settlor** Lord Sainsbury of Turville **Trustees** Mr J C Burns Miss J S Portrait Ms A L Sainsbury Price Ms Francesca Perrin, from 26 June 2024 **Registered** The Peak, 5 Wilton Road **Office** London SW1V 1AP **Principal** Mr P Hesketh Chief Executive Officer **Officers** Mr J Highstead Executive Mr J Searancke Head of Finance Mr N Thomas Executive Mr G Wilson Executive, until 16 August 2024 **Bankers** Royal Bank of Scotland, 119-121 Victoria Street, London SW1E 6RA **Solicitors** BDB Pitmans LLP 1 Bartholomew Close London EC1A 7BL **Auditor** Crowe U.K. LLP 55 Ludgate Hill, London EC4M 7JW **Investment** Sarabaite Limited **Advisers** Lower Mill, Kingston Road, Ewell, Surrey KT17 2AE **Investment** Troy Asset Management Limited **Managers** Brookfield House, 44 Davies Street, London W1K 5JA Cooke & Bieler, L.P. 1700 Market Street, Suite 3222, Philadelphia, USA Tweedy Browne Company LLC 350 Park Avenue, New York, NY 10022, USA Devon Equity Management Limited 123 Victoria Street, London, SW1E 6DE
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## **REPORT OF THE TRUSTEES (continued)**
## **Legal and Administrative (continued)**
## **Objects**
The objects of Gatsby as given in the Trust Deed are for general charitable purposes.
## **Objectives**
The Trustees’ objectives within their current fields of interest are:
- **Plant Science** , to develop basic research in fundamental processes of plant growth and development and molecular plant pathology, and to encourage young researchers in the field of plant science in the UK.
- **Neuroscience** , to support world-class research in the area of neural circuits and behaviour and theoretical neuroscience, and to support activities which enhance understanding in these fields.
- **Science and Engineering Education,** to strengthen science and engineering skills in the UK by developing and enabling innovative programmes and informing national policy.
- **Africa** , to promote economic development in East Africa that benefits the poor through supporting the growth and sustainability of key sectors.
- **The Arts** , to support the fabric and programming of institutions with which Gatsby’s founding family has connections.
- **Public Policy** , to support: the Institute for Government as an independent centre available to politicians and the civil service focused on making government more effective; the Centre for Cities, which provides practical research and policy advice that helps cities understand how they can succeed economically; the Centre for Sectoral Economic Performance which will investigate ways of improving the competitiveness of the UK economy and driving economic growth; and independent research organisations which provide evidence based advice to policy makers.
The Trustees occasionally support other charitable work which falls outside their main fields of interest.
Within these categories the Trustees make grants in support of work which they judge to have particular merit. Many of their grants fund projects which Gatsby has helped to initiate. It is the policy of the Trustees to evaluate programmes and projects rigorously and carefully, and to assess when the evaluations should most usefully take place.
Generally, the Trustees do not make grants in response to unsolicited applications or to individuals.
## **Statement on Public Benefit**
Trustees are aware of the Charity Commission’s guidance on Public Benefit and confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have regard to it. They consider that the information set out in this annual report about the objects, activities and achievements in the many areas of interest that Gatsby supports demonstrates the benefit to its beneficiaries, and through them to the public.
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## **REPORT OF THE TRUSTEES (continued)**
## **Appointment and Powers of Trustees**
The terms of the Gatsby Charitable Foundation Trust Deed provide that the statutory powers of appointing Trustees are vested in the Settlor during his life. The Trust Deed enables the Trustees to delegate certain powers.
Trustees are provided with relevant information relating to their responsibilities as Trustees.
## **Investment Powers**
The Trust Deed empowers the Trustees to appoint investment advisers, who have discretion to invest the funds of Gatsby within guidelines established by the Trustees.
## **Charity Governance**
Trustees make sure that decision-making processes are informed, rigorous and timely, and that effective delegation, control, risk-assessment, and management systems are set up and monitored. Except for those matters specifically reserved for Trustees, decisions concerning the day to day operation of the Charity are delegated to the Principal Officers, who have implemented suitable programme, financial and related controls and reporting arrangements to make sure Trustees oversee delegated matters.
Trustees are aware of the Charity Governance Code published in 2017 (refreshed in 2021) which sets out the principles and recommended practice for good governance within the sector. The Charity has reviewed its governance arrangements against the principles within the code and believes that it is compliant with the code whilst maintaining its need to operate its governance efficiently.
The Charity’s Trustees are also trustees of other charities. Details about other charities for which the Trustees also act as trustee may be found on the Charities Commission website.
## **Organisation**
Gatsby is one of the Sainsbury Family Charitable Trusts (SFCT), which share a common administration.
The remuneration of the senior staff (including key management personnel) is reviewed by the Trustees on an annual basis taking into account the requirements of their role and performance during the year. From time to time the SFCT Management Committee benchmarks pay levels against comparable positions in similar organisations.
## **Financial overview of the past year**
The expenditure of Gatsby exceeded its income by £16.6 million for the financial year. In the previous financial year the expenditure of Gatsby exceeded its income by £68.2 million.
Gatsby received total income of £61.2 million during the year - gifts from the Settlor of £39.3 million and investment income of £21.9 million _._ Gatsby received £21.9 million of dividends and interest income from its investment portfolio, an increase of £7.5 million in comparison to the £14.4 million of investment income received in the previous year.
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## **REPORT OF THE TRUSTEES (continued)**
The income was used to meet total Charity expenditure of £82.8 million - grant expenditure of £60.5 million, charitable programme costs of £17.2 million and other operating expenditure of £3.5 million. Gatsby incurred foreign exchange losses of £0.8 million and investment management fees of £0.8 million.
A net gain of £4.9 million was made on the investment portfolio during the year.
At year end Gatsby held other investments of £267.8 million, short term deposits of £202.8 million and cash at bank of £124.7 million. Trustees remain concerned about the uncertain macro-environment caused by conflict in Europe and the Middle East, the outcome of elections in the United States, and growth prospects of major economies across the globe. In view of such conditions emphasis remains in preserving capital, achieving competitive real returns, and managing cash.
Trustees approved grants amounting to £95.6 million during the year, and made payments of £115.9 million covering some of these grants, as well as other grants approved in earlier years. In addition, payments of £17.2 million were made in relation to directly managed charitable programmes. Gatsby has significant unpaid grant commitments at year end totalling £83.4 million, of which £74.9 million is due to be paid within one year.
It is the intention of the Trustees to spend out the assets of Gatsby, with grant making over the next two to three years likely to be maintained at a significant level.
Trustees met three times during the year and used virtual communication tools as necessary to approve grants.
## **Future plans**
For the immediate future Trustees expect to continue to support long standing major beneficiaries and to continue making grants throughout the year in the areas in which they are interested, as detailed in the objectives section earlier in this report.
## **Reserves policy**
The Trustees treat their expendable endowment and unrestricted funds totalling £519.6 million as a single resource for grant-making, and do not consider it necessary to maintain a particular level of income reserves.
A transfer of £60.2 million has been made from the expendable endowment to unrestricted funds to cover the deficit of income that arises as a result of grant and operating expenditure charged against unrestricted income.
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## **REPORT OF THE TRUSTEES (continued)**
## **Risk assessment**
The Trustees have examined the major strategic, business, and operational risks to which Gatsby may be exposed. Risks considered by Trustees included processes in place to mitigate fraud, the disclosure of related party transactions, and non-financial risks including reputational risk. Through the joint office of SFCT, adequate systems are in place to meet such potential risks as the Trustees have identified in the context of their grant-making.
The Trustees have evaluated that a major risk faced by Gatsby is that grant payments may not be applied for the charitable purposes for which they were awarded. To mitigate this risk the Trustees have implemented a rigorous, proportionate set of governance procedures which considers whether programmes and activities of the organisation which are to be the recipients of payments are aligned with the charitable objectives of Gatsby. During implementation of these programmes there is a series of performance reviews which checks, amongst other matters, that the funding paid has been or continues to be applied to programme objectives and outcomes approved when the grant was awarded originally.
Another major risk is the possibility of systems or user devices being hacked by threat actors, or infected with viruses leading to wider contamination, including ransomware. To mitigate cyber security risks the organisation maintains a number of procedures including multi factor authentication, up to date virus detection software, boundary security testing, the application of patches to devices, and user training on best practice to pre-emptively prevent infection.
The Trustees, in consultation with and on the advice of their Investment Advisers, maintain a diverse and balanced portfolio to mitigate so far as possible against adverse risks affecting the overall value of the investment portfolio so that Gatsby can continue to pay approved grants to its beneficiaries. In particular, a high proportion of the investment portfolio is held in cash, and the diversified investment portfolio is professionally managed.
The Trustees regularly review investment strategy and monitor financial performance.
## **Fundraising**
The Charity and its Trustees are fully aware of the requirements and duties set out in the Charities (Protection and Social Investment) Act 2016. Gatsby does not raise funds from the public and as such has no fundraising activities requiring disclosure.
## **Investment policy and performance**
The Trustees maintain a diverse and balanced investment portfolio. The Trustees hold cash and near cash investments that equate approximately to at least three years of grant expenditure, which should avoid a forced sale of investments should investment markets deteriorate. Trustees seek to maximise yields received from cash deposits throughout the year, and through active investment and cash management seek to achieve a return above normally available market rates.
In general Trustees are satisfied with the exposure, yield and spread of the investment portfolio. The macroeconomic is difficult, caused by a combination of international events, an inflationary environment and upcoming elections.
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## **REPORT OF THE TRUSTEES (continued)**
Rather than add more risk assets, the approach to the portfolio is to continue to invest in quality, and take a sensible, cautious approach in view of current market volatility.
Trustees met formally twice during the year with its investment advisers to discuss strategy and review the performance of the investment portfolio. Trustees are in close contact with its investment advisers throughout the year, assessing the performance of the investment portfolio continuously.
## **CHARITABLE ACTIVITIES**
Gatsby was established in 1967 by David Sainsbury (Lord Sainsbury of Turville). Gatsby acts as the enabler for projects, developing, overseeing and, in some cases, delivering activities across a small number of focus areas where the Trustees believe charitable funding can secure significant impact. Gatsby’s commitment to these areas dates back many years, as Trustees understand that long-term investment and development are often needed to secure significant, sustainable change. Each of Gatsby’s focus areas presents different challenges and each demands different models of support, intervention and evaluation. However, some common characteristics can be identified across the different areas.
Across all of Gatsby’s programmes the Trustees aim to secure maximum impact with a minimum of bureaucracy. To this end, as well as limiting itself to a small range of fields, Gatsby also adopts a tight focus within each programme area. Trustees are very aware that across even narrowly-defined fields such as plant science or neuroscience research there will never be a shortage of need, and spreading support too thinly risks a disproportionate reduction in impact.
Gatsby takes a proactive approach to both grant-making and directly managed programmes in its respective areas of focus. Rather than awaiting proposals from third parties, Gatsby identifies areas for action and builds hypotheses for action which can then be tested in the field. Where such tests are successful the intention is that such action is then scaled up and rolled-out. Such hypotheses are informed both by knowledge of the field in question (drawing on the experience of Trustees, expert advisers and staff) and by previous experience of what type of intervention is most likely to work. Where available, independent evaluation evidence is also fed into this process.
While rigorous research from the outset can greatly reduce the chance of failure, underlying Gatsby’s approach is an acceptance that not all projects will be successful if innovation is to be fostered. This is especially true of proof-of-principle initiatives which seek novel solutions to stubborn problems. Trustees are therefore willing to take calculated risks with their charitable expenditure in situations where there clearly exists significant potential for positive impact.
This report describes Gatsby’s aims in its main areas of interest and gives an indication of how Gatsby pursued them over the last 12 months. More detailed information can be found at www.gatsby.org.uk
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## **REPORT OF THE TRUSTEES (continued)**
## **PLANT SCIENCE**
_“To develop basic research in fundamental processes of plant growth and development and molecular plant pathology, and to encourage young researchers in the field of plant science in the UK.”_
Gatsby’s work in support of plant science seeks to nurture, sustain and increase the number of high-quality researchers for fundamental studies in plant biology. The programme aims to inspire an interest and excitement in plant science at all levels – from school students to graduate researchers – while also attracting world class talent to the UK by creating centres of excellence in the field.
## _Sainsbury Laboratory Cambridge University (SLCU)_
Gatsby's largest ever commitment in plant science funded the building of a state-of-the-art research institute, the Sainsbury Laboratory Cambridge University (SLCU), which opened in 2011. Set within the inspirational grounds of the University’s Botanic Garden, the aim of the Laboratory is to elucidate the regulatory systems underlying plant growth and development.
Over the past year, Dr Katharina Schiessl joined SLCU as a David Sainsbury Career Development Fellow. This new research group will use cutting edge genetic and imaging methods to understand how organ diversity of plants can be reshaped by their colonisers, such as symbiotic root nodules in legumes. SLCU made two new awards for new Group Leaders who will start in the autumn. The first is to Dr Neha Gupta, currently at the Max Planck Institute in Cologne, who will use quantitative approaches to investigate the role of cytokinin and other hormones in growth and differentiation in different stages of leaf development. The second award is to Prof Madelaine Bartlett, currently at the University of Massachusetts in Amherst, who will bring exceptional expertise in developmental and evolutionary questions in grasses, which will be a new model system at SLCU. These new groups will collaborate with the other SLCU members.
SLCU's extensive public engagement programme includes participating in local festivals, collaborating with other departments, and hosting secondary students (e.g. T-level and the Aspiring Scientist Training Programme). As an example, at the Cambridge Festival, SLCU hosted a public event, _Moving without Muscles - Plants as Mechanical Engineers_ , exploring how plants have evolved a wide range of mechanisms to generate motion. This activity involved using scientific tools, generating and interpreting data relating to current research on plant biomechanics at SLCU, and connecting these topics to broader scientific ideas.
## _The Sainsbury Laboratory (TSL)_
Since 1987 Gatsby has supported The Sainsbury Laboratory (TSL) at the Norwich Research Park to investigate how plants defend themselves against microbes that cause disease, and conversely how microbes manipulate host plants and cause disease. Over these three decades TSL has built an outstanding international reputation for scientific excellence.
During the reporting period, TSL teams have found new insights into effector biology and plant immune signalling using genomic analysis. These breakthroughs, involving TSL researchers as well as TSL core scientific support teams with cutting edge expertise in proteomics and bioinformatics, have provided key insights into the control of plant diseases. Research teams also have ongoing projects to help develop disease resistant crops for farmers in the Global South, focusing on staple food security crops such as potatoes, soybean and rice.
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## **REPORT OF THE TRUSTEES (continued)**
TSL Ventures was launched by TSL to fully realise the bioengineering potential of the fundamental discoveries made by the teams. TSL Ventures provides in-house support for the creation of new companies, the protection of intellectual property, and to train entrepreneurial scientists.
TSL Ventures is currently hosting two spin-outs exploring potential biotech applications for human health and plant health. The TSL/John Innes Centre spin-out, Norfolk Healthy Produce, achieved its first sales of engineered purple tomatoes with high anti-oxidants in US supermarkets. There is already considerable consumer enthusiasm for these tomatoes, where 13,000 packets of seeds sold out within weeks of their launch.
TSL and the Khalifa Center for Genetic Engineering and Biotechnology, United Arab Emirates, started a collaboration related to climate resilient plant immunity. The research will take advantage of Khalifa’s expertise in desert plant research. This collaborative programme will see an investment of £5.0 million from Khalifa as well as two scholarships for UAE University students to join TSL’s MSc in Global Plant Health.
TSL had two stands at the Royal Norfolk Show in June 2023. One stand showcased the genetic approaches used to create blight-resistant PiperPlus potatoes that greatly reduces the need for chemical fungicides. The other stand provided an opportunity for all aspiring scientists and plant enthusiasts to meet TSL technicians and learn more about science T-Levels at Norwich City College, and about local opportunities to receive technical laboratory training.
TSL contributed to the national debate on precision breeding technologies, engineering biology and biosecurity, including providing evidence to the House of Lords Selection Committee, authoring a major Royal Society report, and meeting with Ministers and a wide range of MPs and policymakers.
## _Gatsby Plant Science Research Network_
Gatsby further supports excellence in plant science in the UK through a suite of activities overseen by the Gatsby Plant Science Advisers.
The Gatsby Plant Science Network consists of Gatsby-funded undergraduates, postgraduates, postdocs and alumni, with mentors chosen from UK universities with teaching and research interests in plant science. The 2023 network meeting was held over two days in Oxford in September. Prof Gideon Henderson, a Professor of Earth Sciences at Oxford, and Chief Scientific Adviser and Director General for Science and Analysis, DEFRA, gave the evening lecture entitled _Feeding the world while addressing climate change and biodiversity loss; how can plant scientists help?_ Sainsbury-funded PhD students gave talks on their progress and results from the previous year. The closing lecture was given by Prof Wenbo Ma from TSL on her research on understanding of both plant immunity and microbial pathogenesis.
One new Sainsbury PhD student, Christopher Bell, started his research training on regulation of plant stem cells by nutrient signals, supervised by Dr Elena Baena-Gonzalez at the University of Oxford.
The 2024 training weekend for the PhD and Undergraduate students was again held in Cambridge in late March with sessions on scientific skills such as drafting papers and applications, and presenting posters and talks. The plenary speaker was Prof Dame Ottoline Leyser, Chief Executive Officer of UK Research and Innovation who gave a presentation on _UKRI: What is it and what does it do?_
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## **REPORT OF THE TRUSTEES (continued)**
## _Gatsby Plant Science Education Programme (GPSEP)_
The GPSEP aims to improve the teaching and learning of plant science at all ages, engaging and inspiring the next generation of plant scientists through projects in both schools and higher education. The programme is overseen by SLCU and the Cambridge University Botanic Garden.
Science and Plants for Schools (SAPS) creates opportunities for teachers, technicians and students to find out more about plants and to become more interested in plant science. Capitalising on previous enthusiasm for their ‘Train the Trainer’ events for initial teacher educators, the SAPS team ran an additional session during the year. The attendees included representatives from SSERC, CLEAPSS, the Royal Society of Biology, the British Ecological Society and 10 teacher training institutions (8 x HEI and 2 x SCITT) who are working with a combined total of 190 trainee teachers.
In early 2024 SAPS attended the Association for Science Education (ASE) Annual Conference at the University of Northampton to continue to build their networks and potential collaborations.
The five-day Gatsby Plant Science Summer School hosted 80 undergraduate students from the Gatsby network of 30 UK universities. Alongside careers guidance, a ‘next steps’ panel and daily practical sessions (cell biology, plant ID and systematics, pathology and development), there were plenary talks from: Dr Eirini Kaiserli (University of Glasgow) on _Seeing the light and feeling the heat – how plants sense and adapt to a changing environment_ ; Dr James Locke (Sainsbury Laboratory University of Cambridge) on _Does gene expression noise play a functional role in plants?_ ; Dr Yoselin Benitez-Alfonso (University of Leeds) on _Unlocking Plasmodesmata: from cell biology to biomaterials_ ; Prof Diane Saunders (John Innes Centre) on _Safeguarding wheat yields from cereal fungal invaders_ ; and, Dr Richard Lilley (Project Seagrass) on _Becoming #GenerationRestoration: From underwater gardening to Seascape restoration_ .
## **TOTAL GRANT PAYMENTS made this year (from new and previous grants): £14,270,000**
- University of Cambridge £7,153,000
Towards research activities and core costs at the Sainsbury Laboratory; and start-up funding for new lecturers in the Department of Plant Sciences.
Sainsbury Laboratory - Norwich - £6,407,000
Towards core costs, new major research equipment and research activities; and funding to accelerate utilisation of intellectual property with the aim of positively impacting agricultural productivity and global food security.
2Blades Foundation - £500,000 Towards core and project costs.
- Cambridge Network £200,000
Towards support core costs of Agri-TechE over six years.
University of Reading – School of Plant Science - £10,000
Support for the Botanical University Challenge and Student Botany Festival in 2024
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## **REPORT OF THE TRUSTEES (continued)**
## **TOTAL DIRECT PROGRAMME EXPENSES paid this year: £3,596,000**
– - University of Cambridge The Sainsbury Laboratory £2,047,000
Towards Gatsby Fellowships to Principal Investigators at the Sainsbury Laboratory and the costs of the peer review.
- Science & Plants for Schools (SAPS) and the Gatsby Plant Science Summer School £928,000 Towards the Gatsby Plant Science Education Programme, including SAPS and the Undergraduate Summer School.
- Sainsbury PhD Studentships £300,000
Towards the Sainsbury PhD studentships in plant science.
Sainsbury Laboratory - Norwich – £101,000
To cover the cost of maintaining patents that are part of the current 2Blades programme on wheat stem rust resistance.
Further direct programme expenses totalling £220,000 were also paid in the year.
## **NEUROSCIENCE**
_“To support world-class research in the areas of neural circuits and behaviour and theoretical neuroscience, and to support activities which enhance understanding in these fields.”_
Understanding how the intricate anatomy of cells and circuits in the brain work together to generate complex behaviours is one of the most exciting challenges facing neuroscience today. Gatsby’s view, shared by many, is to work towards this by harnessing the efforts of a dynamic and multi-disciplinary group of scientists with a common interest in the workings of the brain. To this end, Gatsby is supporting a number of world-class research centres, programmes and activities.
_Sainsbury Wellcome Centre for Neural Circuits and Behaviour (SWC)_
Gatsby, in partnership with Wellcome and University College London (UCL), supports SWC where scientists are using state-of-the-art techniques to investigate how circuits in the brain process information to create neural representations and guide behaviour. It is directed by Prof Thomas Mrsic-Flogel.
During the reporting period Dr Julia Harris joined SWC as a Junior Group Leader. Dr Harris will combine her experience in brain energetics, sleep, behaviour and olfaction to study circuit reorganisation during sleep, from synaptic to population-level changes. Dr Harris’ laboratory is interested in the role that sleep plays in managing computational and energetic requirements that are crucial for survival.
Dr Athena Akrami was awarded a prestigious European Research Council consolidator grant, which will enable her group to continue a large, cross-species project looking at the computations and neural circuitry underlying learning and exploiting sensory statistics.
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## **REPORT OF THE TRUSTEES (continued)**
Dr Marcus Stephenson-Jones was successfully reviewed by a panel of international experts and promoted to Senior Group Leader.
As part of sector development and outreach, SWC hosted a Careers Fair in partnership with the British Neuroscience Association. The Careers Fair had more than 80 attendees and exhibitors from across academia and industry. The centre also ran a _Bias in the Brain_ event, exploring formation and consequences of biases in the brain, with discussion of implications for Equity, Diversity and Inclusion initiatives including real-world data-driven examples from industry and academia.
Two SWC researchers and one SWC PhD student took part in the In2Research mentoring programme, empowering undergraduate students from underrepresented backgrounds to progress to postgraduate research.
## _Gatsby Computational Neuroscience Unit (GCNU)_
Gatsby founded GCNU at UCL over two decades ago to bring together a critical mass of theoreticians focusing on the computational theories of perception and action in neural and machine systems. GCNU is directed by Prof Maneesh Sahani.
Over the past year, Dr Agostina Palmigiano joined GCNU as a Lecturer. Dr Palmigiano’s group will focus on uncovering the computational principles underlying sensory/motor processing and learning; exploring how distributed behavioural information such as choice influences computations across the cortex; and examining interspecies differences in circuit implementation of identical computations. Dr Palmigiano’s circuits-driven approach to theoretical neuroscience will complement and expand the scope of research in and collaborations between the Unit and SWC.
GCNU/SWC group leader, Prof Andrew Saxe, and his collaborators in Germany, Spain and the USA were awarded a Human Frontier Science Program grant to examine the fundamental principles of how humans and other animals work in groups to collectively solve problems.
The Unit ran the inaugural edition of its new annual Gatsby Bridging Programme. This is a mathematics summer school for penultimate or final year undergraduates and Masters students who aspire to pursue a postgraduate research degree in Theoretical Neuroscience/Machine Learning but whose undergraduate/masters degree does not have a strong mathematical focus. It is hoped that the Bridging Programme will encourage applications from students in underrepresented groups in Science, Technology, Engineering, and Mathematics (STEM) to consider postgraduate study and research in STEM.
## _Gatsby Initiative in Brain Development and Psychiatry (GIBDP)_
This is a new five year project, initiated at UCL and at Stanford, to investigate neurodevelopmental contributions to human psychiatric conditions, including genetics and early life insights.
GIBDP will contribute to the understanding of these conditions as well as providing another route into understanding the non-diseased brain. Participants from UCL include five SWC Group Leaders (Profs Tom Mrsic-Flogel, Sonja Hofer, Tim Behrens, Tiago Branco and Dr Ann Duan) and Prof Dimitri Kullman who works on the cellular basis of epilepsy. From Stanford, the participants are Profs Michelle Monje, Karl Deisseroth, Liqun Luo, Rob Malenka, Marc Tessier-Lavigne and Dr Erin Gibson. This new collaboration will have an emphasis on development and plasticity of neuro-modulatory circuity, anxiety, social function, motivational states and decision making, and the influences of early life immune challenges, exposure to drugs of abuse and sleep deprivation on these aspects of brain development and psychiatry.
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## **REPORT OF THE TRUSTEES (continued)**
## _Theoretical neuroscience and machine learning_
Gatsby’s support in the area of theoretical neuroscience and machine learning also includes two other worldclass centres as part of an ongoing partnership with GCNU. These are the Centre for Theoretical Neuroscience at Columbia University in the USA and the Gatsby programme in theoretical neuroscience at the Safra Centre for Brain Sciences (ELSC) at the Hebrew University in Israel. Gatsby support is typically used to fund graduate student placements, post-doc scientists, bridging academic personnel, some administrative support, as well as new key pieces of IT infrastructure.
At Columbia, five very promising postdoctoral scientists received Gatsby fellowships to work on theory, computation and machine learning applied to learning, vision, somatosensation, and motor sequencing. At Hebrew, 19 trainees across eight groups received support that covers a breadth of work including concept learning, visual processing, and interplay between olfaction and audition.
The annual three-day tricentre meeting in June 2023 took place at Gladstone’s Library in North Wales, where 30 researchers from across the three sites shared their latest research, exchanged ideas and explored potential future collaborations.
## _Cajal Advanced Neuroscience Training Programme_
Gatsby is supporting the continued development of the CAJAL programme, a dedicated neuroscience advanced training facility in Europe. During the reporting period there were four on-site, hands-on, threeweek advanced training courses: Neuro-vascular function in health and disease, Interacting with neural circuits, Glial cells in health and diseases, and Machine learning for neuroscience.
## _British Neuroscience Association (BNA)_
Gatsby provides support to the BNA to implement its strategy to broaden membership and stakeholder engagement with a wider range of activities. Such support ensures the Association is truly representative and relevant to everyone in neuroscience including those in the private sector, the clinic and in wider society.
Over the past year this has included activities to build bridges between industry and academia, policy and advocacy on behavioural tests in experiments, ‘Credibility in Neuroscience’ to support reproducibility, an exchange grant programme to build international connections between neuroscientists and clinicians, and a BNA Scholars Programme that supports students and early career researchers from underrepresented ethnic groups to thrive in neuroscience.
## _Nobel Prize Awards_
Gatsby Trustees congratulate two distinguished recipients of Nobel Prizes in 2024. Professor Geoffrey E. Hinton, who founded GCNU, was awarded the Nobel Prize in Physics for his pioneering work that enabled artificial intelligence used today. Sir Demis Hassabis, a post-doctoral researcher at GCNU, was awarded the Nobel Prize in Chemistry (jointly with his DeepMind co-founder) for his work in using AI to predict the structure of almost all known proteins.
## **TOTAL GRANT PAYMENTS made this year (from new and previous grants): £13,641,000**
- University College London £11,648,000
Towards the research activities and core costs of the Sainsbury Wellcome Centre for Neural Circuits and Behaviour; and the Gatsby Computational Neuroscience Unit.
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## **REPORT OF THE TRUSTEES (continued)**
- Stanford University £416,000
Towards research costs for Stanford Optogenetics Moonshot for Autism (SOMA) programme
- Columbia University, New York £331,000
Towards the Centre for Theoretical Neuroscience.
- Hebrew University of Jerusalem £331,000 Towards the Gatsby Theoretical Neuroscience Programme.
British Neuroscience Association - £320,000
To support the British Neuroscience Association to implement its strategic plan.
- University of Cambridge £230,000
Towards the planning phase for the Institute of Brain and Mind Health
- CAJAL Advanced Neuroscience Training Programme £222,000
Towards core costs and further development of the CAJAL training courses in cutting-edge neuroscience techniques
Further grant payments totalling £144,000 were also paid in the year.
## **TOTAL DIRECT PROGRAMME EXPENSES paid this year: £2,052,000**
- Gatsby Initiative in Brain Development and Psychiatry £2,000,000
To support the neuroscience and psychiatry research initiative at the Sainsbury Wellcome Centre/University College London and at Stanford University.
Further direct programme expenses totalling £52,000 were also paid in the year.
## **SCIENCE AND ENGINEERING EDUCATION**
“ _To strengthen science, technology, engineering and mathematics (STEM) education and training in the UK by informing national policy and developing innovative programmes._ ”
Gatsby’s work in education focuses on five objectives:
- to support improvements in technical education
- to promote the uptake and recognition of high-quality technical education
- to support continuing improvements in career guidance
- to support STEM in schools
- to promote business education for those in the engineering profession.
Gatsby funds the core costs of a separate organisation – Gatsby Technical Education Projects (GTEP), a registered charity and company limited by guarantee – to oversee many of its programmes in this area.
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## **REPORT OF THE TRUSTEES (continued)**
Gatsby continues to support technical education providers to implement key reforms in technical education. This year, there has been significant progress in qualifications reform, which will ensure that all technical qualifications are aligned with occupational standards developed with employer expertise. Gatsby is supporting colleges and schools as they introduce these qualifications, which include T-levels. Eighteen T- level subjects are now available and they are enabling young people to develop the skills and knowledge they need for their next steps, whether that be going into work, an apprenticeship or higher education. Gatsby is working with employers – including NHS Trusts, and construction, engineering and digital businesses – and with T-level providers to support industry placements. The placements give all T-level students an invaluable opportunity to develop their knowledge and skills by working with an employer for 45 days.
Technical education needs teachers in further education (FE) who have expertise in both industry and teaching. Gatsby supports work that champions the role of industry professionals who contribute to technical education teaching, and ensures appropriate training pathways are available for new FE teachers. Gatsby also supports research aimed at gaining a better understanding of the salaries and career journeys of FE teachers.
Despite the widespread acknowledgement of the importance and value of higher-level skills for economic productivity and social mobility, higher technical education at Levels 4 and 5 has been in decline in England. Reversing this decline requires sustained action by policymakers and education providers, and increased awareness among employers and potential students.
Gatsby supports the twenty one Institutes of Technology so they can work together as a national network, share good practice about their role as flagships for excellent higher technical education in England, and raise their profile with partners and learners. This has included a national conference showcasing the value of employer engagement, and a range of communication activities with young people, teachers and adults.
Gatsby also advocates for the expansion of Higher Technical Qualifications (HTQs) and is funding international research by the OECD into successful strategies used in other countries, as well as further exploration of the motivations of current applicants to higher technical courses in England. The Institute for Apprenticeships and Technical Education (IFATE) started approving Level 4 and Level 5 qualifications as HTQs in 2020. There are currently more than 160 HTQs ready for delivery by more than 140 providers, including FE colleges, universities and private training providers.
Gatsby believes FE has a key role to play in supporting local growth and delivering the skills needed for the future economy. Gatsby has worked with Innovate UK to launch an innovation fund aimed at colleges. Gatsby is also working with Innovate UK and IFATE to ensure that the occupational standards that underpin all apprenticeships, T-levels and HTQs deliver the skills that will be required in the future.
Raising awareness and improving understanding of technical education qualifications and technician careers remains the focus of much of Gatsby’s engagement activities with the public. Both of Gatsby’s campaigns targeted at parents and carers have had a substantial impact, resulting in statistically significant improvements in awareness and understanding. These campaigns have helped parents and carers navigate career guidance information and have good career-focused conversations with their child(ren), and have showcased the benefits of T-levels. The use of data and insight in Gatsby’s campaign work was acknowledged this year with a prestigious Drum Award for Marketing. Gatsby’s ongoing campaign to inspire young people about technical education continued. This year Gatsby also teamed up with the BBC Bitesize Roadshow, which has enabled early career technicians to visit schools and to inspire the next generation.
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## **REPORT OF THE TRUSTEES (continued)**
The Gatsby-run campaign for young people complements the objectives of Technicians: The David Sainsbury Gallery at the Science Museum. The gallery, which Gatsby continues to support, surpassed the millionth visitor mark this year. Alongside the impressive range of immersive interactives that enable young people to experience a range of technician careers, early career technicians are frequently in the gallery, giving demonstrations to school groups and sharing their own technician career journey.
The Royal Society recognised the contributions of the technicians who have given their time and expertise to support Gatsby’s work with the presentation of the prestigious Hauksbee Award for outstanding achievement by those working behind the scenes in science.
It has been 10 years since the introduction of the Gatsby Benchmarks for Good Career Guidance in schools and colleges in England. To ensure their relevance for the next decade, Gatsby has completed a thorough review of their impact so far by analysing new evidence, speaking to practitioners and consulting with stakeholders. Results show universal support for the Gatsby Benchmarks and emphasise the importance of maintaining the stability of the national framework they provide for career guidance.
Gatsby continues to support the implementation of good career guidance for 11 to 18 year olds, and emphasises the importance of engaging parents.
As part of the continuing drive to support STEM in schools, Gatsby remains committed to commissioning research that directly influences government policy on the supply of science teachers. Last year we commissioned research to evaluate the long-term impact of training bursaries on teacher supply and the effectiveness of professional development on teacher retention. Gatsby also continues to support the core costs of the Big Bang Fair, the National STEM Learning Centre in York and a programme supporting Technician Clubs in schools.
Gatsby’s final objective in education is to promote business education for those in the engineering profession. This is delivered through the Engineers in Business Fellowship (EIBF), a charity established to manage the Sainsbury Management Fellowships (SMFs) scheme. Each year the SMFs scheme awards 10 bursaries of £50,000 to outstanding early career engineers to study for an MBA at a top international business school. Gatsby also supports the EIBF’s wider work, including the management of an inter-university competition in which teams of engineering undergraduates pitch business plans to expert judges.
## **TOTAL GRANT PAYMENTS made this year (from new and previous grants): £4,306,000**
– Gatsby Technical Education Projects £3,279,000
Towards the core costs of Gatsby Technical Education Projects.
– Engineers in Business Fellowship £877,000
Towards the core costs of the Engineers in Business Fellowship and the Sainsbury Management Fellowship bursary scheme.
– Engineering UK: Big Bang Education CIC £150,000 Growth and development of the Big Bang Fair.
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## **REPORT OF THE TRUSTEES (continued)**
## **TOTAL DIRECT PROGRAMME EXPENSES paid this year: £10,600,000**
## To support continuing improvements in technical education
Supporting the development and roll-out of technical qualifications and apprenticeships – £1,309,000
Ensuring infrastructure is in place to deliver high-quality technical education, including Institutes of Technology and an adequate supply of teachers in further education – £1,195,000
Informing policy on future skills needs, training provision for adults and how colleges can encourage employers to innovate – £503,000
- To promote uptake and recognition of high quality education
Promoting greater recognition of the importance of technicians, including support for a new gallery at the Science Museum in London – £1,686,000
Raising awareness of the reformed technical education system among employers, schools and colleges, parents and learners – £3,647,000
To support continuing improvements in career guidance
Supporting awareness and uptake in schools and colleges of the Gatsby Benchmarks for Good Career Guidance – £1,040,000
Exploring how career guidance for adults can be improved – £170,000
## To support STEM in schools
Seeking to ensure, typically through research, an adequate supply of high-quality STEM teachers – £194,000
Supporting the National STEM Learning Centre and STEM Clubs – £820,000
– To promote business education for those in the engineering profession £36,000
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## **REPORT OF THE TRUSTEES (continued)**
## **AFRICA**
_“To promote economic development in East Africa that benefits the poor through supporting the growth and sustainability of key sectors_ .”
Gatsby has funded, designed, and run programmes in Africa since 1985, with the overall aim of creating jobs and raising incomes for the poor. Gatsby’s programmes in Africa are now mainly implemented by a separate UK charitable company - Gatsby Africa (GA) - with registered branches in Tanzania and Kenya.
GA aims to help more people in East Africa benefit from economic growth, which in turn creates jobs, raises incomes, builds opportunities, and reduces poverty. GA looks to achieve this by:
- Transforming key economic sectors in East Africa by developing ambitious strategies and partnering with others to implement them; and
- Synthesising and sharing lessons from our programmes and elsewhere to enable their application at scale in GA’s own sectors of activity and in others.
In the past year, GA has concentrated on six sector programmes: forestry, livestock, textiles and apparel, tea, aquaculture, and water.
Despite this breadth of support, it is clear that many other sectors also need support. Each programme thus aims to capture what is working and what is not, and to share this with other stakeholders - particularly donors and governments - so that they can benefit from the lessons learned. In this way, GA aims to contribute to a wider movement and to see a series of sectors in East Africa and beyond transformed by its own efforts and those of others.
## **Total grant payments made this year (from new and previous grants): £13,548,000**
- Gatsby Africa (GA) £13,548,000 Towards GA programmes and operating core costs.
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## **REPORT OF THE TRUSTEES (continued)**
## **THE ARTS**
Gatsby provides core support for organisations with which it has a long-standing history, especially as the country faces a tough economic climate and cost of living challenges, which are seriously impacting parts of the UK Arts sector. Trustees continue to provide additional funding support and flexibility for the repurposing of existing grant commitments as these organisations cope with these unprecedented challenges.
## **TOTAL GRANT PAYMENTS made this year (from new and previous grants): £25,018,000**
- Backstage Trust £22,000,000
Towards core costs and project costs.
- Sainsbury Centre for Visual Arts (SCVA) £910,000 Towards core costs and exhibitions
- Chamber Orchestra of Europe £750,000
Towards core costs.
- Royal Shakespeare Company £500,000 Towards the Artist Development Programme.
- Sainsbury Institute for the Study of Japanese Art & Culture £466,000
Towards core costs.
- Sainsbury Research Unit for the Arts of Africa, Oceania & the Americas £275,000 Towards core costs and learning initiatives.
Further grant payments totalling £117,000 were also paid in the year.
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## **REPORT OF THE TRUSTEES (continued)**
## **PUBLIC POLICY**
_“To support independent research organisations which provide evidence-based advice to policy makers.”_
Gatsby’s grant-making in public policy focuses on six organisations: the Institute for Government; the Centre for Cities; the Centre for Science, Technology & Innovation Policy; Policy Links; the Babbage Policy Forum; and the Centre for Sectoral Economic Performance.
## _The Institute for Government (IfG)_
IfG works with the main political parties in Westminster, senior civil servants in Whitehall, and officials and politicians across the whole of the UK to promote more effective government. It provides impartial, evidencebased advice and training, drawing on best practice and research in government, universities and business from around the world. Dr Hannah White OBE is the Director and Chief Executive, and is accountable to a distinguished all-party board of governors chaired by Lord Sainsbury.
Over the past year, the Institute has continued to develop the IfG Academy, converting its extensive knowledge and expertise into a range of resources and tailored workshops for those inside and outside government - for ministers on how to get the most of their time in office, for officials on how to support their ministers effectively, and for subject specialists on how to engage meaningfully with policymakers. In anticipation of a general election in 2024, the Academy has focused particularly on preparing officials and politicians for a possible government transition.
The Institute’s research has included examination of persistent policy problems including obesity and asylum, the state of public services, civil service reform, the performance of government departments including the Treasury, the role of public bodies, scrutiny of regulators, and standards and ethics in government. The Institute has expanded its work on English devolution, examining the role of mayoral combined authorities in regional economic development.
In March 2024, the Institute published the final report of its Commission on the Centre of Government, a major new programme of work to look at why No.10, the Cabinet Office and HM Treasury do not always work as well as they should, making concrete recommendations for a confident, proactive, coherently structured centre of government.
## _The Centre for Cities_
The Centre for Cities is an independent research and policy organisation, chaired by Nigel Hugill and directed by Andrew Carter. The Centre is committed to helping Britain’s cities and large towns improve their economic performance by focusing on the drivers of urban economic success. The Centre produces practical research and policy advice for city leaders, national government and businesses.
In collaboration with the Resolution Foundation, and funded by the Nuffield Foundation, the Centre produced research entitled 'In place of centralisation: Devolution for London, Greater Manchester, and the West Midlands'. It proposed a triple devolution deal for England’s three biggest city-regions with fiscal devolution at its core to unlock dynamism in the biggest urban economies that has been missing from devolution deals so far, including the “Trailblazer” agreements struck with the West Midlands and Greater Manchester earlier this year.
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## **REPORT OF THE TRUSTEES (continued)**
With a general election in calendar year 2024, where growth will be central to the debate, the 2024 edition of Cities Outlook, the Centre’s annual health check of the economic performance of urban Britain, had a special focus on the economic performance of cities since 2010.
## _The Centre for Science, Technology & Innovation Policy (CSTI)_
Based at Cambridge University’s Institute for Manufacturing (IfM), CSTI carries out practical policy research exploring what makes national innovation systems effective at translating new science and engineering ideas into technologies, industries and economic wealth. Under the direction of Dr Eoin O'Sullivan, CSTI brings a science and engineering perspective to innovation and industrial policy.
Over the past year, as part of a collaborative project, two CSTI members were seconded to Department for Science, Innovation and Technology (DSIT), to work on effective practices for developing national emerging technology strategies. The research will be published in academic journals as well as developed into a practical 'handbook' for policymakers. Building on last year’s work on the ‘Drivers of Technology Needs’ with the Government Office for Science, the project has looked at how to break down complex systems change into tangible innovation goals with a view to improving how the research and innovation communities can respond to grand challenges.
As in previous years, CSTI members have participated in a large number of roundtables and review panels on a wide range of topics such as the research ventures catalyst, the geography of innovation and entrepreneurship, science and technology value chains, and emerging areas such as quantum technology.
_Policy Links (PL)_
The Policy Links unit, directed by Dr Carlos López-Gómez, is a not-for-profit consultancy that works with governments and international organisations to develop effective industrial innovation policies based on the latest academic thinking and the study of international best practice. Gatsby supports PL’s charitable educational programmes and activities.
Also based at IfM, PL works closely with CSTI and with the Babbage Policy Forum under the shared banner of Cambridge Industrial Innovation Policy, which operates at the intersection of technology, innovation and industrial competitiveness. In the UK, PL continued to work closely with several government departments. Last year this was with Department for Business and Trade (DBT) around the Advanced Manufacturing Plan and a national Manufacturing Observatory. PL also provided, in collaboration with CSTI, bespoke training on this topic and innovation to civil servants in DBT.
For the Department for Science, Innovation and Technology (DSIT), PL conducted a review of innovation centres related to the semiconductor value chain to inform the viability of creating infrastructure and support for a UK semiconductor sector.
Outside of the UK, PL maintained partnerships with the United Nations Industrial Development Organization and the World Economic Forum, contributing to white papers on gender disparities in industry and manufacturing, decarbonisation and industrial strategies. In Southeast Asia, PL assessed and advised on ASEAN’s wider plans on science, technology and innovation. In Latin America, PL started a partnership in Chile, advising on international policy approaches with a focus on emerging industries such as hydrogen.
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## **REPORT OF THE TRUSTEES (continued)**
## _The Babbage Policy Forum_
The Babbage Policy Forum, chaired by Prof Sir Mike Gregory, aims to provide a unique network and symposia within which to develop novel thinking and insights at the interface of economics, engineering, and management. The Forum’s purpose is to inform and underpin industrial policies for economic competitiveness and growth.
In September 2023, the Babbage Forum convened senior industrial innovation leaders from across the globe to delve into the findings of the recent international Babbage study and the dynamic landscape of national industrial policymaking. Leaders discussed industrial innovation policies in Asia, China, Europe, and the USA. Attendees explored how major global events since 2020 have influenced their regions’ policies, focusing on issues such as supply chain management, technology access, and improving national capabilities.
Delegates had the opportunity to network and discuss policy approaches and policymaking concerns about the stability of the global environment and, more recently, the global pandemic and war in Ukraine.
At the start of 2024, in collaboration with the Industry Studies Association (ISA), a prestigious new award to recognise outstanding contributions to innovation policy was launched. The inaugural “Babbage Best Paper in Industrial Innovation Policy” award aims to highlight research that pushes the boundaries of industrial strategy, and elevate ISA’s commitment to fostering excellence in research on clean energy, sustainability, and industrial strategy.
## _Sector Economic Performance at Imperial College London_
Gatsby supported reports on UK’s competitiveness in Biopharmaceuticals, Fine Chemicals, Medtech, and Telecommunications. The reports assessed the value-added per capita of each sector and how they compare internationally, and identified technological solutions and policy recommendations for government and industry to make the sectors more innovative and increase their ‘value added’.
Building on this, Gatsby made a long-term commitment to create the new Centre for Sectoral Economic Performance which will investigate ways of improving the competitiveness of the UK economy and driving economic growth. The Centre’s activity will address the major global challenges facing economies such as net zero, economic competition, and technological disruptions that require joint innovation, business, policy, and a societal response. The Centre will bring together the UK’s top engineers, scientists and economists with the UK’s science and technology based industries to co-design globally competitive strategies.
## **TOTAL GRANT PAYMENTS made this year (from new and previous grants): £8,929,000**
Institute for Government - £5,253,000
Towards core costs.
Centre for Cities - £1,300,000 Towards core costs.
– Imperial College, London £1,285,000
Towards the core costs of Centre for Sectoral Economic Performance and research into sectoral systems of innovation and the competitiveness of the UK.
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## **REPORT OF THE TRUSTEES (continued)**
- University of Cambridge £942,000
Towards the core costs of the Centre for Science, Technology and Innovation Policy, and of Policy Links.
## ’ - King s College, University of Cambridge £150,000
Towards supporting entrepreneurship and innovation via the King's Entrepreneurship Lab
- Bennett Institute for Public Policy, University of Cambridge £139,000 Towards a research programme into sectoral productivity across countries.
## **TOTAL DIRECT PROGRAMME EXPENSES paid this year: £917,000**
- Babbage Symposium and Professor Mike Gregory support £268,000 Towards Phase 2 of the Babbage Symposium.
## - Royal Academy of Engineering £649,000
Towards a project to develop policy recommendations to decarbonise the UK electricity systems to accelerate the UK’s 2050 NetZero commitment.
## **GENERAL**
_‘To support on occasion other charitable work which falls outside the Trustees’ main fields of interest.’_
## _Three Guineas Trust_
A registered UK charity which accepts applications for practical projects in the field of autism and makes grants in the fields of disability, violence prevention and access to justice.
## _True Colours Trust_
A registered UK charity that focuses on improving access to palliative care in the UK and Africa.
## _Indigo Trust_
A registered UK charity which supports access to justice, the prevention of child sexual abuse, those with visual impairment in low income countries, and transparency amongst charitable donors.
## _University of Cambridge - Whittle Laboratory_
Gatsby is supporting a research project exploring the potential gain of switching the fuel used by jet engines from kerosene to liquid hydrogen.
## _Anthony Lester Fellowship in Human Rights_
Gatsby is supporting the Human Rights Project at Bard College (US) to create a fellowship programme for lawyers or law students to conduct field work in human rights.
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## **REPORT OF THE TRUSTEES (continued)**
## **TOTAL GRANT PAYMENTS made this year (from new and previous grants): £36,098,000**
Three Guineas Trust - £20,000,000
Towards core costs and expendable endowment
True Colours Trust - £10,000,000
Towards core costs and expendable endowment
- Indigo Trust £5,000,000 Towards core costs and expendable endowment
- - University of Cambridge Whittle Laboratory £500,000
Towards a research project into the replacement of kerosene by liquid hydrogen
- Bard College £250,000
Towards the Anthony Lester Fellowship in Human Rights
- Imperial College London £128,000
Towards a project to complete a high-quality book aimed at young people to encourage them to take up a career in engineering; and, towards the 'Engineers Making a Difference' social media campaign
Further grant payments totalling £325,000 were also paid in the year.
## **GRANTS CANCELLED**
Grants totalling £290,000 were cancelled or amended during the year.
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## **REPORT OF THE TRUSTEES (continued)**
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS**
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.
Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its net result for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Board of Trustees on 21 November 2024 and signed on their behalf by
…………………… Mr J C Burns TRUSTEE
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## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE GATSBY CHARITABLE FOUNDATION**
## **Opinion**
We have audited the financial statements of the Gatsby Charitable Foundation (‘the charity’) for the year ended 5 April 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 5 April 2024 and of 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 Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the 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 about the charity’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.
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## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE GATSBY CHARITABLE FOUNDATION** _**(continued)**_
## **Other information**
The Trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Trustees’ report; or
- sufficient and proper accounting records have not been kept by the charity; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit
## **Responsibilities of Trustees**
As explained more fully in the Trustees’ responsibilities statement set out on page 20, the Trustees 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE GATSBY CHARITABLE FOUNDATION** _**(continued)**_
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations, are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR).
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
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## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE GATSBY CHARITABLE FOUNDATION** _**(continued)**_
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## **Use of our report**
This report is made solely to the charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Crowe U.K. LLP Statutory Auditor London
## 17 December 2024
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Report and Accounts – 5 April 2024
30
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2024**
|**_Notes_**
**INCOME AND ENDOWMENTS**
**FROM:**
Donations and gifts
**_2_**
Investments
**_3_**
**Total income**
**EXPENDITURE ON:**
**_Raising funds_**
Investment management costs
4
**_Charitable activities_**
Grant expenditure
**_5_**
Direct programme costs
**_6_**
Support costs
**_7,8_**
Foreign exchange loss
Total cost of grant making
**Total expenditure**
Gains/(Losses) on investment assets
**Net (expenditure)/ income for the**
**year before transfers**
Transfers between funds
**_14_**
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward at 6 April 2023
Total funds carried forward at 5 April 2024|**Unrestricted**
**Expendable**
**Total**
**Funds**
**Total**
**Funds**
**Funds**
**Endowment**
**2024**
**2023**
**£'000**
**£'000**
**£'000**
**_£'000_**
-
39,343
39,343
_75,258_
21,905
-
21,905
_14,438_
**21,905**
**39,343**
**61,248**
**_89,696_**
-
(765)
(765)
_(874)_
(59,817)
(17,165)
-
(59,817)
_(134,536)_
-
(17,165)
_(15,754)_
(3,522)
-
(3,522)
_(3,287)_
(845)
-
(845)
_(1,911)_
(81,349)
-
(81,349)
_(155,488)_
**(81,349)**
**(765)**
**(82,114)**
**_(156,362)_**
4,900
4,900
_(1,508)_
**(59,444)**
**43,478**
**(15,966)**
**_(68,174)_**
59,444
(59,444)
**-**
**_-_**
**-**
**(15,966)**
**(15,966)**
**_(68,174)_**
-
536,221
536,221
_604,395_
**-**
**520,255**
**520,255**
**_536,221_**|
|---|---|
The notes on pages 33 to 43 form part of these accounts.
Report and Accounts – 5 April 2024
31
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **BALANCE SHEET AS AT 5 APRIL 2024**
|**_Note_**
**FIXED ASSETS**
Tangible fixed assets
_9_
Investments
_10_
**CURRENT ASSETS**
Debtors
_11_
Cash at bank and in hand
**LIABILITIES**
Creditors - amounts falling due within 1 year
_12_
**NET CURRENT ASSETS/(LIABILITIES)**
**TOTAL ASSETS LESS CURRENT**
**ASSETS/(LIABILITIES)**
**LIABILITIES**
Creditors - amounts falling due after 1 year
_13_
**NET ASSETS**
**THE FUNDS OF THE CHARITY**
**Capital funds**
Expendable endowment
**Income funds**
Unrestricted funds
_14_|**2024**
**_2023_**|
|---|---|
||**£’000**
**_£’000_**
146
_195_
470,581
_597,215_|
||470,727
_597,410_|
||8,937
_7,691_
124,671
_70,406_|
||133,608
_78,097_
(75,568)
_(128,774)_|
||58,040
_(50,677)_|
||528,767
_546,733_
(8,512)
_(10,512)_|
||**520,255**
**_536,221_**|
||520,255
_536,221_
-
_-_|
||**520,255**
**_536,221_**|
These financial statements were approved and authorised for issue by Trustees on 21 November 2024 and were signed on their behalf by:
……………………………………………….
Mr J C Burns TRUSTEE
The notes on pages 33 to 43 form part of these accounts
Report and Accounts – 5 April 2024
32
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **CASH FLOW STATEMENT FOR THE YEAR ENDED 5 APRIL 2024**
|**Net cash (used) by operating activities**
**Net cash provided/(used in) by investing activities**
**Change in cash and cash equivalents during the year**
Cash and cash equivalents at the beginning of year
**Cash and cash equivalents at the end of year**
**Reconciliation of net (expenditure) to net cash (used in) operating**
**activities**
Net (expenditure)/income for the year (as per the Statement of Financial
Gift of investments
(Gains)/Loss on investments
Depreciation charges
Income from investments (interest and dividends)
(Increase) in debtors
(Decrease)/Increase in creditors and provisions
**Net cash (used in) by operating activities**
**Net cash provided by/(used in) investing activities**
Purchase of investments
Income from investments
Proceeds from sale of investments
**Net cash provided/ (used in) by investing activities**
**Cash and cash equivalents**
Cash at bank and in hand
Cash balances held by investment managers|Activities)
**Change in year**|**2024**|**_2023_**|
|---|---|---|---|
|||**£’000**
**(133,518)**
**187,783**|**_£’000_**|
||||_(62,580)_|
||||_(68,949)_|
|||**54,265**
70,406|_(131,529)_|
||||_201,935_|
|||**124,671 **|_70,406_|
|||**2024**||
|||||
||||**_2023_**|
|||**£’000**
(16,641)
(34,343)
(4,900)
49
(21,905)
(496)
(55,282)|**_£’000_**|
||||_(68,174)_|
|||||
||||_(49,952)_|
||||_1,508_|
||||_49_|
||||_(14,438)_|
||||_(6,296)_|
||||_74,723_|
|||(133,518)|_(62,580)_|
|||**2024**||
|||||
||||**_2023_**|
|||**£’000**
(149,145)
21,905
315,023|**_£’000_**|
||||_(454,268)_|
||||_14,438_|
||||_370,881_|
|||187,783|_(68,949)_|
|||**2024**||
|||||
||||**_2023_**|
||**£’000**
53,809
456|**£’000**
123,663
1,008|**_£’000_**|
||||_69,854_|
||||_552_|
||**54,265**|**124,671**|_70,406_|
The notes on pages 33 to 43 form part of these accounts.
Report and Accounts – 5 April 2024
33
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS**
## **1. PRINCIPAL ACCOUNTING POLICIES**
## **a) Basis of preparation and consolidation**
The financial statements have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.
The financial statements have been prepared to give a 'true and fair view' and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014.
Gatsby constitutes a public benefit entity as defined by FRS102.
In the view of the Trustees, there are no material uncertainties casting doubt on the going concern of the charity. The value of the investment portfolio has increased by approximately £4.9 million in comparison to the end of the previous financial year. Gatsby’s endowment assets remain significant, and this, together with future investment income that is generated, will continue to be paid out to approved beneficiaries in accordance with the objectives of the charity.
## **b) Tangible fixed assets**
Tangible fixed assets are stated at cost less accumulated depreciation and any provision for impairments in value. Fixed assets are depreciated at rates which reflect their useful lives to Gatsby. The following rates have been used:
Leasehold improvements - over the remaining lifetime of the lease Equipment - 10-33% straight line
## **c) Income**
- (i) Donations are shown gross which includes the associated tax credit unless the tax so deducted is considered irrecoverable.
- (ii) Dividends are included by reference to their due dates.
- (iii) Interest is recorded on an accruals basis.
## **d) Grants payable**
Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.
The view of the Trustees is that any instalments payable within 12 months of the reporting date are expected to be paid regardless of the status of attached conditions and so these are accrued. Any payments due in more than 12 months from the reporting date, where conditions exist that have not been met at the reporting date, are not accrued but are reported as an unaccrued future commitment.
## **e) Investments**
Net realised and unrealised gains and losses are reflected in the Statement of Financial Activities. Investments are shown at mid market value. Partial disposals are accounted for using average book value. Unquoted investments which represent programme related investments are carried at cost less provision for impairment where required (See note 11).
## **f) Support costs**
These costs support predominantly the grant-making activity of Gatsby. Such costs include a share of the staff and office costs of the joint office of the Sainsbury Family Charitable Trusts, which are allocated in proportion to time spent on Gatsby matters and grants paid.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include fees for statutory audit, legal fees where relevant, together with an allocation of support costs.
Report and Accounts – 5 April 2024
34
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
## **1. PRINCIPAL ACCOUNTING POLICIES (continued)**
## **g) Fund accounting**
Details of the nature and purpose of each fund is set out in note 16.
## **h) Pension costs**
Gatsby has a money purchase scheme for qualifying employees. Pension costs charged to the Statement of Financial Activities represent the contributions payable by Gatsby in the year (See Note 8).
## **i) Foreign currencies**
Foreign currency transactions are translated into sterling at the rate prevailing at the time of the transaction. Balance sheet items are translated using the year end rate of exchange. Foreign exchange gains and losses resulting from the settlement of transactions and from translation using year end rates of exchange, are recognised in the Statement of Financial Activities.
## **j) Financial instruments**
Gatsby has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand, together with accrued interest and other debtors. Financial liabilities held at amortised cost comprise grants payable and accruals. Investments, including bonds held as part of an investment portfolio, are held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure.
At the balance sheet date the Charity held financial assets at fair value of £470,581,000 _(2023: £597,215,000)._
## **k) Cash and cash equivalents**
Cash and cash equivalents include cash at bank and in hand, cash held for reinvestment and short term deposits.
## **l) Critical accounting judgements and key sources of estimation uncertainty**
ln the application of the charity's accounting policies, which are described in note 1, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an 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 the current and future periods.
ln the view of the Trustees, the critical judgments that have been made at arriving at the amounts recognised in the financial statements and the key estimation uncertainty that has a significant risk of causing a material adjustment to the carrying values of assets and liabilities in the next financial year are as follows:
## _Impairment of programme related investments._
The carrying values of these investments are reviewed for impairment only when events or circumstances arise which may indicate impairment. Assessment is made initially in relation to the investments ability to continue to operate and deliver charitable benefit, the net asset values of the companies involved, and the consideration of budgets and any wider economic factors.
## **m) Provisions for liabilities and charges**
Provisions for liabilities and charges are made when a present obligation has arisen as a result of a past event, payment is probable, and the amount can be estimated reliably.
Report and Accounts – 5 April 2024
35
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
## **2. GRANTS AND DONATIONS**
Gatsby received donations from the Settlor during the year totalling £39,343,000 _(2023: £75,258,000)._
## **3. INVESTMENT INCOME**
Income received on investments may be analysed as follows:
|UK equities
Overseas equities
Term deposits
Bank interest|**2024**
**_2023_**|
|---|---|
||**£’000**
**%**
**_£’000_**
**_%_**
3,797
18
_5,199_
_36_
1,551
7
_1,969_
_14_
16,470
75
_7,237_
_50_
87
-
_33_
_-_|
||**21,905**
**100**
**_14,438_**
**_100_**|
## **4. COST OF RAISING FUNDS**
Fund raising costs comprise the fees of investment managers. Investment management fees amount to £765,000 _(2023: £874,000)._ The Trustees are of the opinion that these costs contribute to the generation of a total return on the investment portfolio and, as such, have charged the Expendable Endowment with these fees.
## **5. GRANTS PAYABLE**
|**GRANTS PAYABLE**|||||
|---|---|---|---|---|
|**Reconciliation of grants payable:**
Commitments at 6 April 2023
Grants not accrued at 6 April 2023
Grants approved in the year
Grants cancelled, refunded or amended
Revaluation of liabilities
Grants not accrued at 5 April 2024
**Grants expenditure for the year**
Grants paid during the year
Commitments at 5 April 2024|**2024**
**£’000**
**£’000**
138,806
85,654
95,610
(2,084)
(2,092)
(117,271)
**59,817**
(115,165)
**83,458**||**_2023_**||
||||**_£’000_**
**_£’000_**||
||||||
|||||_63,809_|
||||||
||||_80,557_||
||||_140,599_||
||||_(966)_||
||||_-_||
||||_(85,654)_||
|||||**_134,536_**|
||||||
|||||_(59,539)_|
||||||
|||**83,458**||**_138,806_**|
Report and Accounts – 5 April 2024
36
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
## **5. GRANTS PAYABLE (continued)**
## **Commitments at 5 April 2024 are payable as follows:**
|Within one year (note 13)
After more than one year (note 14)|**2024**|**_2023_**|
|---|---|---|
||**£’000**
74,946
8,512|**_£’000_**|
|||_128,294_|
|||_10,512_|
||**83,458**|**_138,806_**|
The Trustees had appointments with the following organisations which received grant funding during the year:
Mr J C Burns – Centre for Cities, Gatsby Africa, Gatsby Technical Education Projects, Sainsbury Institute for the Study of Japanese Arts and Cultures, Sainsbury Research Unit for the Arts of Africa, Oceania & the Americas, Sainsbury Centre Endowment Fund
Miss J S Portrait – Gatsby Africa, Gatsby Technical Education Projects, Sainsbury Institute for the Study of Japanese Arts and Cultures (as Trustee of HON & V Trustee Limited), Sainsbury Research Unit for the Arts of Africa, Oceania & the Americas (as Trustee of HON & V Trustee Limited), Sainsbury Archive, Sainsbury Centre Endowment Fund (as Trustee of HON & V Trustee Limited) Ms A L Sainsbury Price – The True Colours Trust Ms F Perrin – The Indigo Trust
## **Commitments**
In addition to the amounts committed and accrued noted above, the Trustees have also authorised certain grants which are subject to the recipient fulfilling certain conditions relating to the delivery of the grant-funded activities.
The total amount authorised but not accrued as expenditure at 5 April 2024 was £116,596,000 _(2023: £85,654,000)_ . Of this total, £65,872,000 will be payable during 2025/26 and £23,117,000 during 2026/27.
The amount payable during 2024/25 includes the following:
|The amount payable during 2024/25 includes the following:|**£’000**|
|---|---|
|**Neuroscience**||
|University College London – Sainsbury Wellcome Centre for Neural Circuits and Behaviour|13,289|
|University College London - Gatsby Computational Neuroscience Unit|4,880|
|Columbia University – New York|692|
|Cajal Advanced Neuroscience Training Programme|404|
|Hebrew University of Jerusalem|327|
|Other grants|169|
|**Plant Science**||
|The Sainsbury Laboratory – Norwich|2,657|
|University of Cambridge – the Sainsbury Laboratory|2,307|
|2Blades Foundation|544|
|Cambridge Network|400|
|Other grants|25|
|**Science and Engineering Education**||
|Gatsby Technical Education Projects|2,091|
|Engineers in Business Fellowship (formerly Sainsbury Management Fellows' Society)|1,119|
|**Africa**||
|Gatsby Africa|25,550|
|The Wood Foundation|1,147|
Report and Accounts – 5 April 2024
37
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
|**5. **|**GRANTS PAYABLE (continued)**||||**£’000**||
|---|---|---|---|---|---|---|
||**Arts**||||||
||Sainsbury Centre for Visual Arts||||1,563||
||Chamber Orchestra of Europe||||750||
||Royal Shakespeare Company||||500||
||Sainsbury Institute for the Study of Japanese Art and Culture||||411||
||Clore Duffield Foundation||||130||
||University of East Anglia-Sainsbury Research unit for the Arts of Africa,||Oceania & the Americas||275||
||Smaller grant||||35||
||**Public Policy**||||||
||Institute for Government||||5,509||
||Imperial College – Technology & Medicine||||2,708||
||Centre for Cities||||1,100||
||Institute for Manufacturing, University of Cambridge||||755||
||Imperial College, London||||222||
||University of Cambridge, King’s College||||150||
||Smaller grants||||25||
||**General**||||||
||Radboud University Medical Centre||||2,108||
||Parkinson’s UK||||1,000||
||Cure Parkinson’s Trust||||900||
||Imperial College, London||||464||
||Quentin Blake Centre for Illustration||||350||
||Smaller grants||||390||
||**Total due within one year (Note 12)**||||**74,946**||
|**6.**|**DIRECT PROGRAMME EXPENSES**||||||
|||||**2024**|**_2023_**||
|||||**£’000**|**_£’000_**||
||Science and Engineering Education|||10,600|_12,302_||
||Plant Science|||3,596|_3,198_||
||Public Policy|||917|_244_||
||Neuroscience|||2,052|_5_||
||Other|||-|_5_||
|||||**17,165**|**_15,754_**||
|**7.**|**SUPPORT COSTS**||||||
|||**Charitable**|
**Governance**|**2024**|**_2023_**||
|||**Activities**|
|**Total**|**_Total_**||
|||**£’000**|
**£’000**
|**£’000**|**_£’000_**||
||Staff costs|1,792|
-|1,792|1,750||
||Share of joint office costs|1,190|
-|1,190|_885_||
||Direct costs including travel, consultancy, legal and||||||
||professional fees|450|
-|450|_565_||
||Depreciation|49|
-|49|49||
|||**3,481**|
**-**|**3,481**|**_3,249_**||
||Auditors’ remuneration|-|41|41|38||
|||**3,481**|
**41**|**3,522**|**_3,287_**||
Report and Accounts – 5 April 2024
38
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
## **7. SUPPORT COSTS** (continued)
Audit fees include irrecoverable VAT of £6,825 _(2023: £6,367)._
## **8. ANALYSIS OF STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs
The average number of employees within the charity was as follows
Charity|**2024**
**_2023_**|
|---|---|
||**£’000**
**_£’000_**
1,476
_1,459_
195
_188_
121
_103_|
||**1,792**
_1,750_|
||**2024**
**_2023_**|
||**No.**
**_No._**
**4**
_4_|
The number of employees whose earnings in relation to time spent on Gatsby’s affairs exceeded £60,000 p.a. excluding pension contributions was:
|£60,000-70,000
£70,000 - £80,000
£90,000 - £100,000
£280,000 - £290,000
£300,000 - £310,000|**2024**
**_2023_**|
|---|---|
||**No.**
**_No._**|
||**-**
_1_
**2**
_-_
**1**
_2_
**-**
_1_
**1**
_-_|
As mentioned in Note 1a, Gatsby is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office. 20.2% of the total support and administration costs of these trusts have been allocated to the Gatsby Charitable Foundation, including a proportionate share of the costs of employing the total number of staff serving in the office in 2023/24.
Staff costs equivalent to 11 staff _(2023: 8)_ were charged to Gatsby during the year under joint administration arrangement, with some being on a part-time basis. This equates to 3.67 full-time employees _(2023: 3.6)_ .
The Trust considers its key management personnel to comprise of 4 staff _(2023: 4)_ . The total employment benefits, including employer pension contributions, of these key management personnel, were £684,000 _(2023: £631,000)_ .
One Trustee had travel expenses of £1,542 paid during the year _(2023: One Trustee, £5,020)._
Report and Accounts – 5 April 2024
39
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
## **8. ANALYSIS OF STAFF COSTS** (continued)
Mr P Hesketh and Mrs K Everett were appointed as Trustees of Gatsby Africa in January 2023 to enable its better administration. Gatsby Charitable Foundation has met staff costs of £245,000 _(2023: £209,000)_ apportioned under joint administration arrangements for executive services provided by Mr P Hesketh and Mrs K Everett to Gatsby Africa, and will continue to do so for the duration of the appointments.
Amounts paid by Gatsby Charitable Foundation in connection with executive services on behalf of Gatsby Africa were:
|Wages and salaries
Social security costs
Other pension costs|P Hesketh
K Everett
**2024**
**_2023_**|
|---|---|
||**£’000**
**£’000**
**£’000**
**_£’000_**
143
69
212
_182_
22
9
31
_26_
-
2
2
_1_|
||165
80
**245**
_209_|
## **9. TANGIBLE FIXED ASSETS**
|Cost
At beginning and end of year
Depreciation
At beginning of year
Charge for the year
At end of year
**Net book value 5 April 2024**
Net book value 5 April 2023|**Leasehold**
**Improvements**
**Equipment**
**Total**|
|---|---|
||**£’000**
**£’000**
**£’000**
1,106
34
1,140|
||912
34
946
48
-
48|
||960
34
994|
||**146**
**-**
**146**|
|||
||_195_
_-_
_195_|
Leasehold improvements consist of Gatsby's share of the cost of refurbishment of leasehold premises at The Peak, 5 Wilton Road, London SW1.
## **10. FIXED ASSET INVESTMENTS**
|**Term deposits**
Market value 6 April 2023
Disposals
Acquisitions at cost
Net gains on investments
**Market value 5 April 2024**|**2024**
**_2023_**|
|---|---|
||**£’000**
**_£’000_**
286,828
_123,120_|
||(215,321)
_(248,958)_|
||131,144
_412,478_
113
_188_|
||**202,764**
**_286,828_**|
Report and Accounts – 5 April 2024
40
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
|**Other investments**
Market value 6 April 2023
Disposals
Acquisitions at cost
Gift of shares
Net gains/(losses) on investments
**Market value 5 April 2024**|**2024**
**_2023_**
**£’000**
**_£’000_**
310,387
_342,263_
(99,701)
_(121,833)_
18,001
_41,790_
34,343
_49,952_
4,787
_(1,785)_
**267,817**
**_310,387_**|
|---|---|
Total disinvestments from fixed asset investments during the year to meet operating cash requirements amounted to £125,500,000 _(2023: £59,000,000)._
The investments held as at 5 April 2024 were as follows:
|U.K. equities
Overseas equities
Overseas equities – unquoted
**Other investments**
Term deposits
**Total fixed asset investments**|**2024**
**_2023_**
**Cost**
**Market**
**_Cost_**
**_Market_**
**Value**
**_Value_**|
|---|---|
||**£’000**
**£’000**
**_£’000_**
**_£’000_**
123,696
160,516
_160,626_
_214,264_
84,412
107,301
_79,323_
_96,123_
2,581
-
_2,581_
_-_|
||**210,689**
**267,817**
**_242,530_**
**_310,387_**
202,737
202,764
_286,864_
_286,828_|
||**413,426**
**470,581**
**_529,394_**
**_597,215_**|
UK equities held at 5 April 2024 has the following market values:
|Trojan Investment Funds
LF Ruffer Funds
J Sainsbury plc
Other UK equities|**2024**
**_2023_**|
|---|---|
||**£’000**
**_£’000_**
65,069
_87,459_
57,455
_87,463_
33,052
_33,961_
4,940
_5,381_|
||**160,516**
**_214,264_**|
Overseas equities - unquoted principally comprises programme related investments to provide both equity finance and loans to small and medium sized enterprises in the agricultural sector in East Africa, and similar investments to improve overall employment opportunities, and support sector development. Gatsby is exiting its programme related investments.
Term deposits include Lloyds Bank and Natwest Bank money market deposits and a treasury facility with Barclays Bank which at 5 April 2024 had a market value of £199,330,000 _(2023: £284,000,000)_ .
## **11. DEBTORS**
|**DEBTORS**||
|---|---|
|Gift Aid receivable
Other debtors
Accrued income|**2024**
**_2023_**|
||**£’000**
**_£’000_**
1,000
_-_
1,547
_2,128_
6,390
_5,563_|
||**8,937**
**_7,691_**|
Included in other debtors is a concessionary loan of £750,000 to the Centre for Sectoral Economic Performance, repayable over a period of 10 years.
Report and Accounts – 5 April 2024
41
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
## **12. CREDITORS - amounts falling due within 1 year**
|**CREDITORS - amounts falling due within 1 year**||
|---|---|
|Grants payable (note 5)
Trade creditors
Other creditors
Accruals and deferred income|**2024**
**_2023_**|
||**£’000**
**_£’000_**
74,946
_128,294_
29
_124_
471
_291_
122
_65_|
||**75,568**
**_128,774_**|
## **13. CREDITORS - amounts falling due after more than 1 year**
|**CREDITORS - amounts falling due after more than 1 year**||
|---|---|
|Grant payable (note 5)|**2024**
**_2023_**|
||**£’000**
**_£’000_**
**8,512**
**_10,512_**|
## **14. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
||||**Total**|
|---|---|---|---|
||**Unrestricted**|**Expendable**|**Funds**|
||**Fund**|**Endowment**|**2024**|
||**£'000**|**£'000**|**£'000**|
|Fund balances at 5 April 2024 are represented||||
|by:||||
|Tangible fixed assets|-|146|**146**|
|Investments|-|470,581|**470,581**|
|Current assets|-|133,608|**133,608**|
|Current liabilities|-|(75,568)|**(75,568)**|
|Long term liabilities|-|(8,512)|**(8,512)**|
||**-**|**520,255**|**520,255**|
|**Movement in the year**||||
|Opening balance as at 5 April 2023|-|536,221|**536,221**|
|Total income and endowments|21,905|39,343|**61,248**|
|Cost of raising funds|-|(765)|**(765)**|
|Cost of grant-making|(81,349)|-|**(81,349)**|
|Net gain on investments|-|4,900|**4,900**|
|Transfers between funds|59,444|(59,444)|**-**|
|Closing balance as at 5 April 2024|**-**|**520,255**|**520,255**|
Report and Accounts – 5 April 2024
42
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
## **15. CONTINGENT LIABILITIES AND GUARANTEES**
Gatsby acts as guarantor for certain property leasehold arrangements on behalf of the Sainsbury Family Charitable Trusts (for which Gatsby has received counter-indemnities). Gatsby has provided undertakings in connection with funds it has received from third parties.
## **16. FUNDS**
**Unrestricted funds** comprise those funds which the Trustees are free to use in accordance with the charitable objects.
**Restricted funds** comprise those funds held by Gatsby which can be used solely for the purpose which they were given.
**Expendable Endowment** represents those assets held by the Trustees principally in investments. Income arising on the expendable endowment fund can be used in accordance with the objects of the charity and is included as unrestricted income. Investment management charges are charged against the fund. The fund is available to meet grant commitments as the Trustees may see fit.
## **Material transfers between funds**
Transfers have been made from expendable endowment to eliminate the deficit on unrestricted funds where the deficit is considered to be non-reversing with regard to Gatsby's normal grant making.
## **17. COMPARATIVE ANALYSIS OF NET ASSETS BETWEEN FUNDS AS AT 5 APRIL 2023**
|Fund balances at 5 April 2023 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Provisions
**Movement in the year**
Opening balance as at 5 April 2022
Total income and endowments
Cost of raising funds
Cost of grant-making
Net gain on investments
Transfers between funds
Closing balance as at 5 April 2023|**_Unrestricted_**
**_Expendable_**
**_Total Funds_**|
|---|---|
||**_Fund_**
**_Endowment_**
**_2023_**|
||**_£'000_**
**_£'000_**
**_£'000_**|
|||
||_-_
_195_
_195_|
||_-_
_597,215_
_597,215_|
||_-_
_78,097_
_78,097_|
||_-_
_(128,774)_
_(128,774)_|
||_-_
_(10,512)_
_(10,512)_|
|||
||**_-_**
**_536,221_**
**_536,221_**|
|||
||_-_
_604,395_
_604,395_|
|||
||_14,438_
_75,258_
_89,696_|
||_-_
_(874)_
_(874)_|
||_(155,488)_
_-_
_(155,488)_|
||_-_
_(1,508)_
_(1,508)_|
||_141,050_
_(141,050)_
_-_|
|||
||**_-_**
**_536,221_**
**_536,221_**|
Report and Accounts – 5 April 2024
43
**THE GATSBY CHARITABLE FOUNDATION 5 April 2024**
## **NOTES TO THE ACCOUNTS (continued)**
## **18. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2023**
|**_Note_**
**INCOME AND ENDOWMENTS FROM:**
Donations and gifts
_2_
Investments
_3_
**Total income**
**EXPENDITURE ON**
**_Raising funds_**
Investment management costs
4
**_Charitable activities_**
Grant expenditure
_5_
Direct programme costs
_6_
Support costs
_7,8_
Foreign exchange loss
Total cost of grant making
–
**Total expenditure**
(Losses)/Gains on investment assets
**Net income/(expenditure) for the year**
**before transfers**
Transfers between funds
**Net income/(expenditure) for the year**
**after transfers**
**Reconciliation of funds**
Total funds brought forward at 6 April 2022
Total funds carried forward at 5 April 2023|**_Unrestricted_**
**_Expendable_**
**_Total_**
**_Funds_**|
|---|---|
||**_Funds_**
**_Endowment_**
**_2023_**|
||**_£'000_**
**_£'000_**
**_£'000_**|
|||
|||
||_-_
_75,258_
_75,258_|
||_14,438_
_-_
_14,438_|
||**_14,438_**
**_75,258_**
**_89,696_**|
|||
|||
|||
|||
||_-_
_(874)_
_(874)_|
|||
|||
||_(134,536)_
_-_
_(134,536)_|
||_(15,754)_
_-_
_(15,754)_|
||_(3,287)_
_-_
_(3,287)_|
||_(1,911)_
_-_
_(1,911)_|
||_(155,488)_
_-_
_(155,488)_|
|||
||**_(155,488)_**
_(_**_874)_**
**_(156,362)_**|
|||
||_-_
_(1,508)_
_(1,508)_|
|||
||**_(141,050)_**
**_72,876_**
**_(68,174)_**|
||_141,050_
_(141,050)_
_-_|
||_-_
**_(68,174)_**
**_(68,174)_**|
|||
|||
||_-_
_604,395_
_604,395_|
||_-_
_536,221_
_536,221_|
## **19. PURCHASE OF PROPERTY**
In September 2024 Gatsby purchased the leasehold for premises located in London for £19.3 million. Trustees intend to hold the premises for future use by the Institute for Government, a Gatsby beneficiary.
Report and Accounts – 5 April 2024