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2024-04-05-accounts

Registered Charity No: 255650

The Eranda Rothschild Foundation

Report and financial statements For the year ended 5 April 2024

The Eranda Rothschild Foundation

Contents

Pages
Charity details 1
2
6
7
10
Statement of financial activities 11 - 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15
27

The Eranda Rothschild Foundation

Charity details

Trustees Lady Lynn de Rothschild
Mr Anthony de Rothschild
Ms Jessica de Rothschild
Sir John Peace
Sir Benjamin Elliot
Mrs Geraldine Hedger (appointed 20 March 2024)
Principal/registered office 31 Tite Street
London
SW3 4JP
Auditors Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Bankers Coutts & Co
440 Strand
London
WC2R 0QS
HSBC
8 Canada Square
London
E14 5HQ
Investment managers BlackRock Investment Management UK Limited
12 Throgmorton Avenue
London
EC2N 2DL
Sarasin & Partners LLP
Juxon House
London
EC4M 8BU

Status The Eranda Rothschild Foundation was established by trust deed dated 10 February 1967 and is registered in the United Kingdom as a charity, number 255650.

Page 1

The Eranda Rothschild Foundation

Trustees report For the year ended 5 April 2024

The Trustees of The Eranda Rothschild financial statements for the year ended 5 April 2024, which have been prepared in accordance with the Charities Act 2011 Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK.

Reference and administrative information

This information is shown on page 1.

Structure, Governance and Management

The Foundation is an unincorporated trust, constituted under a trust deed dated 10 February 1967, and is a registered charity, number 255650.

The Trustees of the Foundation, as listed on page 1, have held office and served throughout the year unless otherwise indicated. The Trust Deed provides for a minimum of three trustees to a maximum of seven trustees. The statutory power of appointing new T vests with the Trustees. Trustees are aware of the aims and objectives of the Foundation and the manner in which the trustees carry out their responsibilities. In addition, each new trustee receives a copy of the Trust Deeds, Minutes of Meetings, Annual Reports and Accounts and a copy

The Trustees are directly responsible for the management of the Foundation and aim to meet at least three times a year to consider grant applications, review investment performance and other matters of an administrative and strategic nature. The Chairman supervises the processing of grant applications received remuneration in the year.

Risk Management

The Trustees have considered the major risks to which the Foundation is exposed and believe that there are two significant risks for the Foundation.

The first significant risk is fraud in relation to grants not being used for their intended purpose. The Foundation also awards grants to overseas charities whereby checks cannot always be made in the same way as a UK charity. The Foundation mitigates this risk by using eligibility criteria, assessing the applications raised and monitoring reports from the grant receiver. Reliance is also placed on the

The second significant risk is investment risk. As markets are volatile this can lead to fluctuations in income and valuation. This is mitigated by appointing well respected fund managers, setting and monitoring investment benchmarks and presentations from them at Trustee meetings. More information about investments can be found on page 4.

Risks are reviewed by the Trustees on an on-going basis.

Fund Raising

The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications on their activities. The Charity does not actively fundraise from the general public and therefore the Trustees do not consider it necessary to have a formal fundraising policy in place.

Page 2

The Eranda Rothschild Foundation

For the year ended 5 April 2024

Objectives and activities for public benefit

The Foundation furthers its charitable purposes for the public benefit through its grant making policy which aims to support charitable work in the advancement of:

health, welfare and medical research; and

The Foundation aims to award grants equal to the amount of income it receives during the year and to try and spread this evenly across the three activities noted above. This aim is dependent upon the applications that are submitted during the year.

In order to measure the success, the Trustees will review the number and value of grants awarded year on year. This is then compared against the amount of income received to ensure that grants are being

planning future activities setting the grant making policy for the year.

registered charities to whom funds can be distributed in accordance with the above objectives and to monitor and review the work of the beneficiary charities on a regular basis.

Grant making policy

The Foundation accepts applications from registered charities only and no applications from individuals are considered. The Trustees meet regularly to review and approve grants and regular contact is maintained with recipients of grants for monitoring purposes. The Trustees aim to achieve an appropriate balance between medical, education and arts causes.

Achievements and Performance

The Trustees are pleased with the achievements and performance of the Foundation as set out below.

The number of grants distributed to institutions during the year amounted to 17 (2023: 14). A summary of the grants awarded can be found in note 15 of the accounts.

Financial Review

During the year income of £5,251,016 (2023: £4,765,618) was received from investments held by the Foundation. This income was applied in part to furthering the objectives of the Foundation, and as such the Trustees approved and paid grants totalling £1,666,655 (2023: £488,990) during the year. Up until the approval of these financial statements the Eranda Rotschild Foundation has distributed a further £2.9 million to new grant recipients.

The net movement in funds for the year, as shown in the statement of financial activities, amounted to an overall increase in funds of £9,787,752 (2023: £2,351,450 decrease). This movement was primarily driven by market movements on quoted investments.

In the previous financial year, Sir Evelyn de Rothschild, the settlor of the Eranda Rothschild Foundation, sadly passed away. As previously reported the Trustees had fewer trustee meetings over the period which in turn led to significantly less grant making than the longer term historic average. To rectify this, the Trustees have worked to increase the annual grant levels that advance the Eranda Rothschild Foundations objectives.

Page 3

For the year ended 5 April 2024

The Eranda Rothschild Foundation

During the year, the Trustees have designated funds for several significant projects in memory of the late Eranda Rothschild Foundation settlor, Sir Evelyn de Rothschild as per note 13 in these financial statements. Some of these grants have been confirmed after the year end and will be made over a number of years. The Trustees have agreed to give $2,000,000 for The Sir Evelyn de Rothschild Career Development Award to the Mayo Clinic, and have allocated £12m to be granted as follows: a) £300,000 per year for The Sir Evelyn de Rothschild Fellowship for Nature Finance and Inclusive Capitalism with the Circular Bioeconomy Alliance and b) £300,000 per year for The Sir Evelyn de Rothschild Fellowship for Inclusive Capitalism with the Clinton Foundation. The Trustees have also allocated £2,000,000 to be granted as £100,000 a year to the Economist Educational Foundation, along with an endowment of £3,000,000 to the London School of Economics (both of these are subject to final details and agreements between the foundation and the respective organisations).

Investment policy and performance

Investment assets are held with the intention of retaining them on a long-term basis for the continuing benefit of the Foundation in the form of both income generation and capital appreciation. There are no specific investment policies concerning social, environmental or ethical considerations other than investments must not be made in institutions that would be adverse to the objectives of the Foundation.

During the year, the investment portfolio increased by £15,449,475 by means of capital growth and additional investment to £155,423,675 (2023: £139,974,200). The portfolio includes investments held directly by the Foundation amounting to £54,466,355 (2023: £54,849,170). A list of material investments held is included in Note 7 to these accounts.

aim of the investments is to generate a total return that can support ongoing spending requirements whilst also growing the capital over the long term. As at 5 April 2024 the value of the portfolio was £93,280,486 (2023: £85,125,030 was held with Sarasin & Partners).

The vast majority of the monies are invested in Blackrock with the aim of providing income and protect capital over the long term.

From 5 April 2023 to 5 April 2024, the investments between Blackrock and Sarasin delivered a total return of 6.5% net of fees (2023: 3.7% loss). This return continues on from the steady but slow global economic recovery. Despite significant central bank interest rate hikes aimed at restoring price stability, the global economy has shown surprising resilience with falling inflation, steady economic growth and ongoing geopolitical tensions.

The Foundation holds a number of investments directly with the aim of generating a total return that can support the ongoing spending requirements whilst also growing the capital over the long term. As at 5 April 2024 the total valuation of these investments was £ 54,446,355 (2023: £54,849,170). The Economist has provided the Foundation with substantial returns over time. The 2024 results confirmed that the full year dividend remained the same at 160p a share and the minority share price valuation remained the same at £31.5 per share. IHS Towers is now listed on the New York Stock Exchange (NYSE:HIS), and the investment is currently held through Coutts who will provide liquidity to the foundation according to the agreed sell down arrangements that were entered into by the IHS shareholders upon listing. Gwynnie Bee continues to show strong company growth but its capital valuation has stayed flat year on year. The Radcliff Holdings investments had a yearend valuation of approximately £11 m and made net distributions of £969,925 through the year.

Page 4

The Eranda Rothschild Foundation

For the year ended 5 April 2024

Note that over the period of 5 April 2023 to 5 April 2024 USD relative to GBP fell by 1.3% (2023: increase of 6.0%) which in turn has had an impact on those investments (IHS Towers, Gwynnie Bee and Radcliff Holdings) that are held in USD.

Reserves policy

expendable, is normally retained in order to provide income to fund the main objects in view of the fact that the Foundation does not have any other sources of funding and does not undertake any fundraising activities.

At 5 April 2024, the free reserves of the Foundation had increased by £3,488,027 to £29,209,794, of which £18,635,414 has been designated to specific projects as per note 13 in these financial statements. funds within these guidelines over a reasonable timescale.

Plans for the future

The Foundation intends to continue to make grants to appropriate registered charities.

accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for making reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information dissemination of financial statements may differ from legislation in other jurisdictions.

Page 5

The Eranda Rothschild Foundation

For the year ended 5 April 2024

Auditors

A resolution to re-appoint Saffery LLP as auditors will be proposed at the T the financial statements.

Approved by the Trustees and signed on their behalf on by:

Lady Lynn de Rothschild

Page 6

The Eranda Rothschild Foundation

Independent auditors report to the trustees

Opinion

We have audited the financial statements of The Eranda Rothschild Foundation for the year ended 5 April 2024 which comprise a statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our 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 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

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 to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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

We have nothing to report in this regard.

Page 7

The Eranda Rothschild Foundation

Independent auditors report to the trustees

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 require us to report to you if, in our opinion:

Responsibilities of trustees

ties Statement set out on page 5, 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.

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.

We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.

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

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

Page 8

The Eranda Rothschild Foundation

Identifying and assessing risks related to irregularities:

fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with trustees and updating our understanding of the sector in which the charity operates.

Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

www.frc.org.uk/auditorsresponsibilities

Page 9

The Eranda Rothschild Foundation

Use of our report

(Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery LLP 71 Queen Victoria Street London EC4V 4BE

Statutory Auditors

Date:

Saffery LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.

Page 10

The Eranda Rothschild Foundation

Statement of financial activities For the year ended 5 April 2024

Notes
Income
Investment income
2
Total income
Expenditure
Costs of raising funds
Investment management costs
3
Expenditure of charitable activities:
Grant-making
Grant related support costs
4
Grant expenditure
5
Total expenditure
Net income/(expenditure) before
other recognised gains and losses
Net (losses)/gains on investments
7
Gains/(losses) on foreign currency
translation
Net movement in funds
Reconciliation of funds
Balance at 5 April 2023
Balance at 5 April 2024
12		 General
Funds
£
5,251,016
5,251,016
-
169,296
1,666,655
1,835,951
3,415,065
-
72,962
3,488,027
25,721,767
29,209,794		 Expendable
Endowment
Funds
£
-
-
255,821
-
-
255,821
(255,821)
6,690,839
(135,293)
6,299,725
119,364,370
125,664,095		 2024
Total
Funds
£
5,251,016
5,251,016
255,821
169,296
1,666,655
2,091,772
3,159,244
6,690,839
(62,331)
9,787,752
145,086,137

154,873,889
 General
Funds
£
4,765,618
4,765,618
-
156,385
488,990
645,375
4,120,243
-
166,399
4,286,642
21,435,125
25,721,767		 Expendable
Endowment
Funds
£
-
-
282,214
-
-
282,214
(282,214)
(7,177,237)
821,359
(6,638,092)
126,002,462
119,364,370		 2023
Total
Funds
£
4,765,618
4,765,618
282,214
156,385
488,990
927,589
3,838,029
(7,177,237)
987,758
(2,351,450)
147,437,587
145,086,137

Page 11

The Eranda Rothschild Foundation

Statement of financial activities (continued) For the year ended 5 April 2024

The statement of financial activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing operations.

The notes on pages 15 to 27 form part of these financial statements.

Page 12

The Eranda Rothschild Foundation

Balance sheet At 5 April 2024

Notes
Fixed assets
Investments
7
Current assets
Debtors
8
Cash at bank and in hand
Current Liabilities
Creditors: amounts falling due within one year
9
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
10
Net assets
The funds of the charity
Expendable endowment
12
Unrestricted general funds
12
Designated funds
12/13
Total charity funds		 2024
£
155,423,675
128,767
1,645,028
1,773,795
(1,487,081)
286,714
155,710,389
(836,500)
154,873,889
125,664,095
10,574,380
18,635,414
154,873,889		 2023
£
139,974,200
177,311
6,823,005
7,000,316
(1,088,379)
5,911,937
145,886,137
(800,000)
145,086,137
119,364,370
25,721,767
-
145,086,137

The notes at pages 15 to 27 form part of these accounts.

Approved by the trustees on and signed on their behalf by:

Lady Lynn de Rothschild Trustee

Page 13

The Eranda Rothschild Foundation

Statement of cash flows For the year ended 5 April 2024

Notes
Cash flows from operating activities:
Net cash used in operating activities
14
Cash flows from investing activities
Interest received
Dividends received
Purchase of fixed asset investments
Proceeds from sale of fixed asset investments
Net cash (used in)/provided by investing activities
Increase / (decrease) in cash and cash equivalents in the
year
Cash and cash equivalents at the beginning of the year
14
Total cash and cash equivalents at the end of the year
14		 2024
£
(1,432,427)
99,066
5,151,950
(205,864,412)
196,867,846
(3,745,550)
(5,177,977)
6,823,005
1,645,028		 2023
£
(615,728)
4,551
4,761,067
(2,422,138)
36,676
2,380,156
1,764,428
5,058,577
6,823,005

Page 14

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

1. Accounting policies

Charity information

Wales under the number 255650. The principal place of business of the Foundation is at 31 Tite Street, London, SW3 4JP.

1.1 Accounting convention

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP 2019 (Second Edition, effective 1 January 2019)), and the Charities Act 2011.

departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent llowing Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £.

The foundation constitutes a public benefit entity as defined by FRS 102.

1.2 Going concern

continue as a going concern. The most significant areas of adjustment and key assumptions that affect items in the accounts are to do with estimating the liability of multi-year grant commitments (see note 1.4 for more information).

With respect to the next reporting period, 2024-25, the most significant areas of uncertainty that affect the carrying value of assets held by the Foundation are the level of investment return and the performance of investment markets (see the investment policy and performance and for more information).

1.3 Income recognition

Income is credited to the statement of financial activities on a receivable basis. Investment income is stated inclusive of recoverable taxation. Donated services and facilities are included in the financial statements in the year in which they are receivable, where they are quantified, material and where a third party is bearing a cost.

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

Page 15

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

1.3 Income recognition (continued)

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

1.4 Expenditure recognition

Grants are included in the statement of financial activities in the year when the offer is conveyed to the recipient except when the offer is conditional. Grants offered subject to conditions which have not been met at the year-end are included in the Statement of Financial Activities where the condition is not within the control of the Trustees or disclosed as a financial commitment where the Trustees retain that control. The Foundation has only one charitable activity, therefore all support costs have bee statement of financial activities.

Governance costs include expenditure on compliance with constitutional and statutory requirements.

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For the information on this attribution refer to note 1.5.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the Foundation. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Foundation.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.

The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Foundation that would permit the Foundation to avoid making the future payment(s), settlement is probable and the effect of discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant award is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the Foundation.

Page 16

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

1.5 Allocation of support and governance costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

Governance costs and support costs relating to charitable activities have been apportioned based on the value of grants awarded made in recognition that the administrative costs of awarding, monitoring and assessing education grants, the arts grants and health, welfare and medical research grants are broadly equivalent. The allocation of support and governance costs is analysed in note 4.

1.6 Cost of raising funds

The costs of generating funds consist of investment management costs and certain legal fees.

1.7 Charitable activities

Costs of charitable activities include grants made, governance costs and an apportionment of support costs as shown in note 4.

1.8 Investments

Investments are included in the financial statements at market value, as determined by the trustees based on professional advice, at the balance sheet date. Realised and unrealised gains and losses are credited or debited to the statement of financial activities in the year in which they arise.

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Foundation does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Page 17

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

1.9 Fund accounting

The Funds consist of the expendable endowment, retained to generate income for the Foundation's main objectives, and unrestricted funds, which may be used to meet the Foundation's charitable objectives at the trustees' discretion.

Designated funds are unrestricted funds set aside by the Trustees for specific purposes. As of April 5, 2024, these funds include amounts allocated for several significant projects in memory of the late Eranda Rothschild Foundation settlor, Sir Evelyn de Rothschild. These grants will be distributed over several years.

1.10 Financial Instruments

The Charity has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments including trade and other debtors and creditors, are initially recognised at transaction value and are subsequently recognised at their settlement value.

1.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments.

1.12 Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

1.13 Creditors

Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

1.14 Taxation

The Foundation is a registered charity, and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

1.15 Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movements in funds.

Page 18

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

2. Investment income

Bank interest
Net investment income receivable
Investment income is analysed as follows:
Quoted investments in the UK
Unquoted investments in the UK
Unquoted investments outside the UK
3.
Investment management costs
Investment management fees		 2024
£
99,066
5,151,950
5,251,016
2024
£
2,699,284
1,641,168
910,564
5,251,016
2024
£
255,821
255,821		 2023
£
4,551
4,761,067
4,765,618
2023
£
2,385,462
1,660,328
719,828
4,765,618
2023
£
282,214
282,214

Page 19

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

4. Allocation of governance and support costs

Breakdown of support costs and how these were allocated between governance and other support costs:

Governance
Other
related support costs
£
£
Cost type
Admin costs
-
89,104
Other costs
75,898
4,294
Total
75,898
93,398
Governance
Other
Related support costs
£
£
Cost type
Admin costs
-
92,368
Office rent
-
(375)
Other costs
59,014
5,378
Total
59,014
97,371
Allocation of costs by nature:
Auditors
remuneration
Accountancy fees
Payroll administration fees
Legal Fees
General advice and charity matters
Support costs (see above)		 Total
2024
Basis of apportionment
£
89,104
Direct cost
80,192
Direct cost
169,296
Total
2023
Basis of apportionment
£
92,368
Direct cost
(375)
Direct cost
64,392
Direct cost
156,385
2024
2023
£
£
25,788
29,485
6,070
17,705
3,450
3,695
16,560
1,829
24,030
6,300
93,398
97,371
169,296
156,385		 Total
2024
Basis of apportionment
£
89,104
Direct cost
80,192
Direct cost
169,296
Total
2023
Basis of apportionment
£
92,368
Direct cost
(375)
Direct cost
64,392
Direct cost
156,385
2024
2023
£
£
25,788
29,485
6,070
17,705
3,450
3,695
16,560
1,829
24,030
6,300
93,398
97,371
169,296
156,385
156,385

The total support costs attributable to charitable activities is then apportioned pro rata to the value of grants awarded as shown in note 5. The trustees have decided to meet all governance costs from unrestricted funds and so no allocation or charge is made to restricted funds for any governance related costs.

Page 20

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

5. Analysis of charitable expenditure

The number of grants distributed to institutions during the year was as follows:

The arts
Health, welfare and medical research
Education		 2024
Number
of grants
3
6
8
17		 2023
Number
of grants
2
3
9
14

See note 15 for details of the grants paid.

The Foundation undertakes its charitable activities through grant making and awarded grants to institutions in furtherance of its charitable activities:

The arts
Education
Health, welfare and medical research		 Support
Grant
and
funded
governance
activity
costs
£
£
175,000
23,300
992,201
80,676
499,454
65,320
1,666,655
169,296		 Total
2024
£
198,300
1,072,877
664,774
1,935,951
The arts
Education
Health, welfare and medical research		 Support
Grant
and
funded
governance
activity
costs
£
£
50,000
15,991
80,000
25,585
358,990
114,809
488,990
156,385		 Total
2023
£
65,991
105,585
473,799
645,375

Page 21

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

6. Staff costs and remuneration of key personnel

Aggregate remuneration comprised:

Wages and salaries
Social security costs
Pension costs		 2024
£
73,167
7,562
8,375
89,104		 2023
£
71,841
7,784
12,743
92,368

The average number of employees during the year is 2 (2023: 2).

The trustees received no remuneration in respect of their services to the Foundation during the year (2023: Nil). No trustee received any reimbursement of expenses during the year (2023: Nil).

No employees received remuneration in excess of £60,000 (2023: 1).

7. Investments

Movement in fixed asset investments
Market value at 6 April 2023
Additions at Cost
Disposal proceeds
Net realised gains
Net unrealised (losses)/gains on revaluation
Management fees
(Losses)/Gains on foreign currency translation
Market value at 5 April 2024
nvestments at fair value compromised:
Quoted investments in the UK
Quoted investments outside the UK
Unquoted investments in the UK
Unquoted investments outside the UK
Cash held in the investment portfolio		 2024
£
139,974,200
205,864,412
(196,867,846)
9,236,531
(2,545,693)
(103,057)
(134,872)
155,423,675
2024
£
94,854,068
5,850,598
41,107,563
13,338,792
272,654
155,423,675		 2023
£
144,224,838
2,422,138
(36,676)
7,286
(7,184,523)
(280,222)
821,359
139,974,200
2023
£
85,037,085
3,173,454
39,150,060
12,525,656
87,945
139,974,200

Investments at fair value compromised:

Page 22

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

7. Investments (continued)

The trustees consider that four (2023: four) individually material investments were held at the year-end:

The Economist Newspaper Limited
IHS Holding Limited
Gywnnie Bee Inc
The Radcliff Companies
8.
Debtors
Prepayments and accrued income
9.
Creditors
Amounts falling due within one year
Grants payable
Accruals
10.
Creditors
Amounts falling due after more than one year
Grants payable		 2024
£
41,107,563
1,227,553
2,330,932
11,007,860
55,673,908
2024
£
128,767
128,767
2024
£
1,269,317
217,764
1,487,081
2024
£
836,500
836,500		 2023
£
39,150,060
3,173,454
2,362,909
10,162,747
54,849,170
2023
£
177,311
177,311
2023
£
986,179
102,200
1,088,379
2023
£
800,000
800,000

Page 23

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

10. Creditors (continued)

Movement in recognised funding commitments during the year:

Grant commitments recognised at the start of the year
New grant commitments charged to the SoFA (see note 5)
Grants paid during the year
Total of grant commitments recognised at 5 April 2024
Movement in recognised funding commitments during the prior year:
Grant commitments recognised at the start of the year
New grant commitments charged to the SoFA (see note 5)
Grants paid during the year
Total of grant commitment recognised at 5 April 2023		 2024
£
1,786,179
1,666,655
(1,347,017)
2,105,817
2023
£
1,913,916
488,990
(616,727)
1,786,179

11. Related party transaction

During the year, donations of £129,020 (2023: £137,467) were made to a number of charities, each of which had at least one common trustee with the Foundation.

12. Analysis of charitable funds

As at 5 April 2024
Expendable endowment
Unrestricted
Designated
As at 5 April 2023
Expendable endowment
Unrestricted		 Investments
£
Investments
£
125,664,095
11,124,166
18,635,414
155,423,675
119,364,370
20,609,830
139,974,200		 Current
assets
£
Current
assets
£
-
1,773,795
-
1,773,795
-
7,000,316
7,000,316		 Liabilities
£
Liabilities
£
-
(2,323,581)
-
(2,323,581)
-
(1,888,379)
(1,888,379)		 Total
2024
£
125,664,095
10,574,380
18,635,414
154,873,889
Total
2023
£
119,364,370
25,721,767
145,086,137

Page 24

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

13. Designated Funds

The Sir Evelyn de Rothschild Career
Development Award
The
Sir
Evelyn
de
Rothschild
Fellowship for Advancement of the
Terra Carta and Inclusive Capitalism
The
Sir
Evelyn
de
Rothschild
Fellowship for Inclusive Capitalism
Other legacy gifts in honour of Sir
Evelyn de Rothschild		 Balance as at
06-Apr-23
£
-
-
-
-
-		 Transfers
£
1,585,414
6,000,000
6,000,000
5,050,000
18,635,414		 Income
£
-
-
-
-
-		 Expenditure
£
-
-
-
-
-		 Balance as at
05-Apr-24
£
1,585,414
6,000,000
6,000,000
5,050,000
18,635,414

During the year, the Trustees designated the funds in the above table for several significant projects in memory of the late Eranda Rothschild Foundation settlor, Sir Evelyn de Rothschild. These grants will be distributed over several years. Initially, the Trustees have agreed to allocate the funds as follows:

At the time of approving the accounts £2.2 million of the designated funds have been paid to recipients.

Page 25

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

14. Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Investment income
Losses/(gains) on investments
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash used in operating activities
Analysis of cash and cash equivalents:
Cash in hand
15.
Grant payments
The Arts
Health/welfare/medical research
GlassDoor Homeless Charity
Leket UK
Medicines Sans Frontiers
MYTIME
Quintessentially Foundation
Royal Hospital Chelsea
The Dawn Collective
The Prince
Trust
Creative Dimensions Trust
National Horseracing Museum
Royal Academy of Dramatic Art
Royal College of Art		 2024
£
9,787,752
(5,251,016)
(6,452,909)
48,544
435,202
(1,432,427)
2024
£
1,645,028
1,645,028		 2024
£
9,787,752
(5,251,016)
(6,452,909)
48,544
435,202
(1,432,427)
2024
£
1,645,028
1,645,028		 2023
£
(2,351,450)
(4,765,618)
6,636,099
(16,288)
(118,471)
(615,728)
2023
£
6,823,005
6,823,005
2023
£
-
25,000
25,000
-
2024
£
2024
£
-
50,000
50,000
30,000
50,000
-
300,000
19,454
499,454
25,000
25,000
-
125,000
175,000
50,000
2023
£
20,000
-
-
-
50,000
10,000
-
-
80,000

Page 26

The Eranda Rothschild Foundation

Notes to the financial statements For the year ended 5 April 2024

15. Grant Payments (continued)

----- Start of picture text -----
2024 2023
£ £
- 20,000
Belvoir Cricket Trust 25,000 -
-
Bletchley Park Trust (36,000)
Council for Inclusive Capitalism 79,434 6,344
Dyslexia Scotland - 40,000
Economist Educational Foundation - 59,180
Give A Book 20,000 10,000
IntoUniversity - 30,000
Liberal Jewish Synagogue 109,500 50,000
McCain Institute Foundation 81,981 6,344
Nottingham Trent university 630,446 -
Peterson Institute Junior Fellowship 79,340 81,122
St. Mary's Church 2,500 -
Twinning Project - 50,000
VS Naipaul Lecture Series - 6,000
992,201 358,990
----- End of picture text -----

Page 27