**Charity registration number 275919**
## **THE EXILARCH'S FOUNDATION**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025**
## **THE EXILARCH'S FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' Report|1 - 3|
|Statement of trustees' responsibilities|4|
|Independent auditor's report|5 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 25|
## **THE EXILARCH'S FOUNDATION**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Mr D A Dangoor CBE DL (Exilarch)|
|---|---|
||Mr M A J Dangoor|
||Mr E B V Dangoor|
|**Charity number**|275919|
|**Registered office**|4 Carlos Place|
||Mayfair|
||London|
||W1K 3AW|
|**Auditor**|BKL Audit LLP|
||5 Fleet Place|
||London|
||EC4M 7RD|
|**Bankers**|Barclays Bank Plc|
||1 Churchill Place|
||London|
||UK|
||E14 5HP|
||National Westminster Bank Plc|
||Kensington Royal Gardens Branch|
||55 Kensington High Street|
||London|
||W8 5ZG|
||Handelsbanken|
||London Marylebone Branch|
||5 Welbeck Street|
||London|
||W1G 9YQ|
|**Solicitors**|Farrer & Co LLP|
||66 Lincoln's Inn Fields|
||London|
||WC2A 3LH|
|**Investment managers**|Timothy James & Partners Ltd.|
||16 Babmaes St|
||London|
||SW1Y 6AH|
||Quilter Plc|
||Senator House|
||85 Queen Victoria Street|
||London|
||EC4V 4AB|
## **THE EXILARCH'S FOUNDATION**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
The Trustees present their report and the audited financial statements of The Exilarch's Foundation for the year ended 31 December 2025.
The accounts have been prepared in accordance with the Statement of Recommended Practice: 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) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.
The financial statements have been prepared in accordance with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the Charities SORP (FRS 102). The financial statements have been prepared under the historical cost convention and in accordance with FRS 102 – The Financial Reporting Standard applicable in the UK and Republic of Ireland.
## **Reference and administrative information**
The Charity was established by a Trust Deed dated 2 April 1978. Its registered charity number is 275919 and its principal office is at 4 Carlos Place, London W1K 3AW.
## **Aims and purposes**
The Charity is established to carry out all charitable objects, in any part of the world, within the legal meaning of the term, at the absolute discretion of the trustees. The trustees are constantly considering potential new charitable opportunities.
## **Governance and management**
The Charity is governed by its Trust Deed dated 2 April 1978.
The power of appointment of new or additional trustees and the choice of successor is vested exclusively in the Exilarch, D.A. Dangoor CBE DL. No formal policies have been adopted for the induction and training of trustees.
The trustees during the year and up to the date of signature of this report were as follows:
Mr D A Dangoor CBE DL (Exilarch) Mr M A J Dangoor Mr E B V Dangoor
- 1 -
## **THE EXILARCH'S FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
The trustees are legally responsible for the overall management and control of the charity and meet regularly throughout the year.
The investment committee (consisting of D.A. Dangoor CBE DL and M.A.J. Dangoor) reviews the charity's investments and investment policies, taking professional advice where appropriate.
## **Public benefit**
The Charities Act 2011 requires all charities to meet the legal requirement that its aims are for the public benefit. The Charity Commission in its Charities and Public Benefit guidance states that there are two key principles to be met in order to show that an organisation's aims are for the public benefit: firstly, there must be an identifiable benefit or benefits and secondly, that the benefit must be to the public or a section of the public. The trustees consider that they have complied with Section 17 of the Charities Act 2011 including the guidance "public benefit: running a charity (PB2)".
## **Aims, objectives, activities and achievements during 2025**
The trustees have during 2025 sought to identify effective ways of deploying the Charity’s resources so as to deliver maximum impact and public benefit. The Charity’s most significant activity during 2025 has been its grant making.
The Charity’s policy is to support charitable initiatives that align with its mission, values, and community goals, while ensuring transparency, fairness, and adherence to organisational values and legal obligations.
## **Major grants**
During the year, total grants of £5.1m (2024: £7.2m) were made. The largest of these were grants made to The Jewish Association for Mental Illness (JAMI) (£1m) and British Embassy Israel (£0.7m).
Further details of grants can be found in note 6 to the accounts.
## **Grants for educational institutions**
Funding for educational institutions in the UK has been continued throughout 2025 and into 2026.
This has included ongoing support to Westminster Academy where the academic results achieved have remained impressive, as demonstrated by an Ofsted Inspection in October 2023 in which the Academy achieved a rating of 'good with an ‘outstanding’ Sixth Form.
## **Designated Funds**
Alongside the Charity's grant-making activity, the trustees have continued to keep their long-term sights on on three key areas; the eventual re-establishment of a Jewish community in Iraq through the redevelopment of educational and religious institutions, the advancement of Universal Monotheism, and a UK–Israel healthcare innovation initiative connecting Israeli digital health start-ups with the NHS.
Currently, the security position in both Iraq and the wider Middle-East region remains sufficiently unsettled for it to be impossible for Jews to resettle in significant numbers. Consequently, the trustee's strategy to achieve this aim is to maintain appropriate levels of reserves whilst monitoring developments. This is achieved with the assistance of a network of contacts throughout the Middle East, members of the former community of Iraqi Jews and academics worldwide, as well as public sources of information. In consultation with professional advisers and the Charity Commission, the trustees have undertaken to carry out regular assessments of when the re-establishment of the Jewish community and large-scale expenditure by the Charity from this fund might become possible.
The trustees have reviewed the designation of funds and have retained a total designated reserve of £18.25m (2024: £18.25m).
- 2 -
## **THE EXILARCH'S FOUNDATION**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **Plans for future periods**
At 31 December 2025, the Charity had committed to grants payable of £11.5m which are included as creditors within these accounts. £4.4m of these grants are due to be paid out in 2026. These commitments continue to fund core areas of educational projects and scholarships, community development and medical research.
The trustees anticipate continuing their support of the Westminster Academy, of which the Charity is the Sponsor, and which Mr David Dangoor CBE DL is also a trustee. Grants amounting to £150,694 (2024: £122,250) were awarded to Westminster Academy during the year.
## **Principal sources of income**
During 2025 the Charity received investment income and interest of £8.0m (2024: £7.9m). The majority of this took the form of rental income from commercial properties.
## **Principal risks and uncertainties**
The trustees have given consideration to the principal risks and uncertainties to which the Charity is exposed. The Charity holds a significant investment property portfolio and any substantial decrease in property values or a substantial reduction in the ratio of tenanted properties to vacant ones would impact the Charity.
The Charity has sought to mitigate these risks through investment diversification, including investments in Funds, which are global in nature.
The trustees monitor the impact of these risks and have concluded that there are sufficient reserves within the Charity to accommodate these.
## **Reserves policy**
The trustees are continuing to develop and refine the charity's reserves policy, taking into account both long term and short term projects, and monitor reserves on an ongoing basis.
The charity now holds an endowment fund of £52.9m (2024: £54.0m) and, of the other funds it holds, £18.25m remains designated for specific purposes, details of which are provided in note 16.
At the balance sheet date free reserves amounted to £26.0m (2024: £22.8m).
Due to the long term nature of its grants, it is the Charity's policy to retain reserves of a minimum of five years total expenditure excluding grants.
At the balance sheet date, the charity had net current assets of £1.1m (2024: £1.9m).
## **Investment policy, performance and objectives**
The Charity's policy is to invest primarily in real estate and donations have been received on that basis. The trustees make every endeavour to ensure that these investments remain secure both in the medium and long term with a focus on income growth. The Charity is also exploring some non-property investments. It is the Charity's policy to consider the social, environmental and ethical impact of all investments.
The Charity's investment properties were independently revalued at the balance sheet date. The resultant unrealised losses in the year of £2.4m (2024: gain £3.8m) are considered to mirror the current market conditions of the property sector in the UK. However, the charity's income is largely protected from the impact of short-term market fluctuations due to the continuity of its existing tenants, with their leases not due to expire for several years.
## **Auditor**
The auditor BKL Audit LLP will be proposed for reappointment for the year ending 31 December 2026.
- 3 -
## **THE EXILARCH'S FOUNDATION**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **Statement of Trustees' responsibilities**
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. 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.
## **Statement of disclosure to auditor**
So far as each person who was a trustee at the date of approving this report is aware, there is no relevant audit information of which the Charity’s auditor is unaware. Additionally, the trustees individually have taken all the necessary steps that they ought to have taken as trustees in order to make themselves aware of all relevant audit information and to establish that the Charity’s auditor is aware of that information.
## **Approval**
This report was approved by the trustees on ........................... and signed on their behalf.
## **Mr D A Dangoor CBE DL (Exilarch)**
- 4 -
## **THE EXILARCH'S FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE EXILARCH'S FOUNDATION**
## **Opinion**
We have audited the financial statements of The Exilarch's Foundation for the year ended 31 December 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2025 and of its incoming resources and application of resources, 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 Exilarch's Foundation 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 on The Exilarch's Foundation’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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.
## **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:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
- 5 -
## **THE EXILARCH'S FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE EXILARCH'S FOUNDATION**
## **Responsibilities of Trustees**
As explained more fully in the statement of trustees' responsibilities, 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 Exilarch's Foundation’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 cease operations, or have no realistic alternative but to do so.
## **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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
## **Capability of the audit in detecting irregularities, including fraud**
Based on our understanding of the charity and the charity sector, we identified that the principal risks of noncompliance with laws and regulations related to the failure to comply with charity regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities (Accounts and Reports) Regulations 2008 and Charities Act 2011. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the auditors included:
- discussions with the trustees, including consideration of known or suspected instances of non- compliance with laws and regulations and fraud;
- assessing management's significant judgements and estimates in particular those relating to the valuation of the charity’s property and investment portfolio; and
- identifying and testing manual journal entries, in particular any journal entries posted with unclear rationale.
There are inherent limitations in the audit procedures described above, and the further removed non- compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **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.
- 6 -
## **THE EXILARCH'S FOUNDATION**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE EXILARCH'S FOUNDATION**
## **BKL Audit LLP**
**Chartered Accountants Statutory Auditor 5 Fleet Place London, EC4M 7RD**
**Date:** .........................
BKL Audit LLP is eligible for appointment as auditor of The Exilarch's Foundation by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
- 7 -
## **THE EXILARCH'S FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
|**Unrestricted Endowment**
**funds**
**funds**
**2025**
**2025**
**Notes**
**£**
**£**
**Income from:**
Investment income
and interest
**3**
7,985,466
-
**Expenditure on:**
Raising funds
**4**
421,955
-
Charitable
activities
**5**
5,167,091
-
**Total expenditure**
5,589,046
-
Net gains/(losses)
on investments
**9**
827,376
(1,134,209)
**Net movement in funds**
3,223,796
(1,134,209)
Fund balances at 1
January 2025
41,040,276
53,999,943
**Fund balances at 31**
**December 2025**
44,264,072
52,865,734|**Total**
**Unrestricted Endowment**
**funds**
**funds**
**2025**
**2024**
**2024**
**£**
**£**
**£**
7,985,466
7,881,605
-
421,955
751,003
-
5,167,091
6,801,466
-
5,589,046
7,552,469
-
(306,833)
3,816,562
2,301,180
2,089,587
4,145,698
2,301,180
95,040,219
36,894,578
51,698,763
97,129,806
41,040,276
53,999,943|**Total**
**2024**
**£**
7,881,605|
|---|---|---|
|||751,003|
|||6,801,466|
|||7,552,469|
|||6,117,742|
|||6,446,878
88,593,341|
|||95,040,219|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
- 8 -
## **THE EXILARCH'S FOUNDATION**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2025**_
|**Notes**
**Fixed assets**
Investment property
**10**
Investments
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Creditors: amounts falling due after**
**more than one year**
**14**
**Net assets**
**Capital funds**
Expendable endowment funds
**15**
**Income funds**
Unrestricted funds
Designated
**16**
General unrestricted funds
**17**|**2025**
**£**
**£**
84,765,000
18,383,891
103,148,891
1,203,000
6,582,592
7,785,592
(6,656,777)
1,128,815
104,277,706
(7,147,900)
97,129,806
52,865,734
18,250,000
26,014,072
44,264,072
97,129,806|**2024**
**£**
**£**
88,690,500
12,345,611
101,036,111
1,078,454
6,808,076
7,886,530
(5,999,111)
1,887,419
102,923,530
(7,883,311)
95,040,219
53,999,943
18,250,000
22,790,276
41,040,276
95,040,219|
|---|---|---|
The financial statements were approved by the board of Trustees on ......................... and signed on their behalf by:
.............................. Mr D A Dangoor CBE DL (Exilarch) **Trustee**
- 9 -
## **THE EXILARCH'S FOUNDATION**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
||||**2025**||**2024**|
|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|
|**Cash flows from operating activities**||||||
|Cash absorbed by operations|**22**||(5,725,765)||(7,897,705)|
|**Investing activities**||||||
|Purchase of investment property||(460,000)||-||
|Proceeds from disposal of investment||||||
|property||2,555,000||-||
|Proceeds from disposal of subsidiaries||-||1||
|Purchase of other investments||(4,692,486)||(4,072,774)||
|Proceeds from disposal of other investments||47,544||2,946,313||
|Investment income received||8,050,223||8,419,687||
|**Net cash generated from investing**||||||
|**activities**|||5,500,281||7,293,227|
|**Net decrease in cash and cash equivalents**|||(225,484)||(604,477)|
|Cash and cash equivalents at beginning of year|||6,808,076||7,412,553|
|**Cash and cash equivalents at end of year**|||6,582,592||6,808,076|
- 10 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **1 Charity information**
The Exilarch's Foundation is an unincorporated charity governed by a Trust Deed and is registered with the Charity Commission for England and Wales. The address of the registered office is 4 Carlos Place, Mayfair, London, W1K 3AW.
## **1.1 Accounting policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **1.2 Basis of preparation of accounts and assessment of going concern**
The financial statements have been prepared in accordance with the Statement of Recommended Practice: 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) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.
The financial statements have been prepared in accordance with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the Charities SORP (FRS 102). The financial statements have been prepared under the historical cost convention and in accordance with FRS 102 – The Financial Reporting Standard applicable in the UK and Republic of Ireland.
The Exilarch's Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The financial statements are prepared in pounds sterling, and rounded to the nearest pound.
## **1.3 Going concern**
These financial statements are prepared on a going concern basis as at the Board of Trustees consider there are no material uncertainties existing that may cast significant doubt as to its ability to continue as a going concern.
## **1.4 Charitable funds**
The following funds are held by the Charity:-
Unrestricted funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.
Expendable Endowment - these are capital funds which can only be converted into expendable income at the discretion of the Exilarch.
Realised and unrealised gains and losses on investments are allocated to the appropriate fund based on opening balances.
## **1.5 Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
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**THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. Donated goods and services are recognised on a time spent basis and recognised only once the service has been received.
Rental income arising from operating leases on investment properties is accounted for on a straight line basis over the lease term. Incentives for lessees to enter into lease agreements are spread evenly over the lease terms, even if the payments are not made on such a basis. Rental income is measured at the fair value of the consideration receivable excluding VAT.
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.
## **1.6 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
-Costs of raising funds represent investment property and related costs associated with deriving rental income. -Expenditure on charitable activities comprises grants payable and associated costs incurred by the charity in the delivery of its activities and services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support it.
-Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. An unconditional grant offer 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.
The provision of 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 Trust that would permit the Trust to avoid making the future payment(s), settlement is probable and the effect of discounting is material. The discount rate used is the average return 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 Charity.
All expenditure is accounted for on an accruals basis. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
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## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **1.7 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.
Governance costs and support costs relating to the cost of raising funds and expenditure on charitable activities have been apportioned on an equal basis. The allocation of support and governance costs is analysed in note 7.
## **1.8 Operating leases**
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
## **1.9 Foreign currencies**
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the prevailing exchange rate at the time of the transaction. Exchange differences are taken to the Statement of Financial Activities.
- 13 -
**THE EXILARCH'S FOUNDATION**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **1.10 Fixed asset investments**
Investment properties are measured initially at cost and subsequently at fair value at the reporting date. Valuation at fair value is made on an open market value basis by reference to market evidence of transaction prices for similar properties. Fair value adjustments are recognised as gains/losses on revaluation of fixed assets in the Statement of Financial Activities.
Other investments are initially measured at cost and subsequently at fair value at the reporting date. Where there are other investments whose fair values cannot be measured reliably, such assets are measured at cost less impairment. Realised and unrealised gains and losses, as well as any impairment, are shown as gains/ losses on investments in the Statements of Financial Activities. Net gains on other investments are recorded after deduction of management fees and foreign exchange movements.
## **1.11 Financial instruments**
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Additionally, all financial assets and liabilities are classified according to the substance of the contractual arrangements entered into.
Basic financial assets, which include trade and other receivables and cash at bank are initially measured at transaction price (including transaction costs) and are subsequently carried at amortised cost.
Basic financial liabilities, which include trade payables, grants payable, other payables and deferred income are initially recognised at transaction price and subsequently carried at amortised cost.
## **1.12 Loans**
Concessionary loans made in furtherance of the charity's objectives and repayable after more than one year are initially recognised at the amount paid with the carrying value adjusted in subsequent years to reflect repayments and any accrued interest. To the extent that the loan is assessed as irrecoverable, an impairment loss is recognised in the Statement of Financial Activities.
## **2 Judgements and key sources of estimation uncertainty**
In the application of The Exilarch's Foundation’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
As disclosed in Note 10, the charity's investment properties have been valued on an open market value basis by an independent professional valuer, valuation of which is based on a number of assumptions including market conditions which prevailed at the balance sheet date.
- 14 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **3 Investment income and interest**
||**Unrestricted **|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2025**|**2024**|
||**£**|**£**|
|Rental income|7,684,055|7,508,934|
|Other income|77,755|47,562|
|Interest receivable|223,656|325,109|
||7,985,466|7,881,605|
Included within other income is £52,315 (2024: £44,933) of donated accountancy services from Monopro Limited, a company in which the Charity’s trustees have a substantial interest.
## **4 Raising funds**
||**Unrestricted **|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2025**|**2024**|
||**£**|**£**|
|Fundraising and publicity|||
|Investment management fees|150,951|370,384|
|Other fundraising costs|213,435|324,684|
|Support costs (see note 7)|57,569|55,935|
|Fundraising and publicity|421,955|751,003|
## **5 Charitable activities**
|Grant funding of activities (see note 6)
Present value adjustment on commitments made in year
Finance costs
Foreign exchange
Share of support costs (see note 7)|**Total**
**2025**
**£**
5,108,068
(278,217)
388,765
(109,093)
57,568
5,167,091|**Total**
**2024**
**£**
7,213,111
(773,994
276,914
29,500
55,935|
|---|---|---|
|||6,801,466|
Where significant grant payments are due in greater than one year the amounts have been discounted to reflect their net present value. Finance costs represent finance charges in respect of the unwinding of the grants.
- 15 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **6 Grants payable**
|**Community**
**Development**
**Hospitals,**
**Medical**
**Education**
**and**
**Research**
**Education**
**2025**
**2025**
**2025**
**£**
**£**
**£**
Grants to institutions:
JAMI
1,000,000
-
-
British Embassy Israel
690,000
-
British Friends of Herzog Hospital
250,000
-
Jerusalem Foundation
278,426
-
-
The Faith and Belief Forum
205,307
-
-
Mind
-
-
-
UCLH Charity
-
-
-
Chelsea & Westminster Health Charity
-
-
-
Council on Library
-
-
-
Academy of Arts and Design-Bezalel
-
-
-
Girl's Day School Trust
-
-
-
Westminster Academy
-
-
150,694
Other
1,538,875
334,834
659,932
3,022,608
1,274,834
810,626|**Total**
**2025**
**Community**
**Development**
**Hospitals,**
**Medical**
**Education**
**and**
**Research**
**Education**
**2024**
**2024**
**2024**
**£**
**£**
**£**
**£**
1,000,000
-
-
-
690,000
-
-
-
250,000
-
-
-
278,426
-
-
-
205,307
145,732
-
-
-
-
2,000,000
-
-
-
1,200,000
-
-
-
1,000,000
-
-
315,081
-
-
-
-
-
215,000
-
-
-
200,000
150,694
-
-
122,520
2,533,641
1,335,728
330,601
348,449
5,108,068
1,796,541
4,530,601
885,969|**Total**
**2024**
**£**
-
-
-
-
145,732
2,000,000
1,200,000
1,000,000
315,081
215,000
200,000
122,520
2,014,778|
|---|---|---|
|||7,213,111|
- 16 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
|**7**
**Support costs**
Property Expenses
Bank charges
Sundry Expenses
Professional fees
Audit fees
Analysed between
Fundraising
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
13,018
-
-
1,640
-
5,164
-
52,315
-
43,000
13,018
102,119
6,509
51,060
6,509
51,059
13,018
102,119|**2025**
**£**
13,018
1,640
5,164
52,315
43,000
115,137
57,569
57,568
115,137|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
21,638
-
-
1,446
-
1,478
-
49,308
-
38,000
21,638
90,232
10,819
45,116
10,819
45,116
21,638
90,232|**2024**
**£**
21,638
1,446
1,478
49,308
38,000|
|---|---|---|---|---|
|||||111,870|
|||||55,935
55,935|
|||||111,870|
Included within professional fees is £52,315 (2024: £44,933) of donated accountancy services from Monopro Limited.
## **8 Trustees and employees**
No remuneration was paid to the trustees or their connected persons for the year, nor were any expenses reimbursed to them (2024 - £nil).
There were no persons employed by the charity during the year or the previous year.
## **9 Net gains/(losses) on investments**
|**Unrestricted Endowment**
**Total Unrestricted Endowment**
**funds**
**funds**
**funds**
**funds**
**2025**
**2025**
**2025**
**2024**
**2024**
**£**
**£**
**£**
**£**
**£**
Revaluation of
investments
1,523,667
-
1,523,667
1,211,721
-
Gain/(loss) on sale of
investments
-
-
-
1,126,521
-
Revaluation of
investment properties
(1,251,291)
(1,134,209)
(2,385,500)
1,478,320
2,301,180
Gain/(loss) on sale of
investment properties
555,000
-
555,000
-
-
827,376
(1,134,209)
(306,833)
3,816,562
2,301,180|**Total**
**2024**
**£**
1,211,721
1,126,521
3,779,500
-|
|---|---|
||6,117,742|
- 17 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
|**10**
**Investment property**
**Fair value**
At 1 January 2025
Additions
Disposals
Net gains or losses through fair value adjustments
At 31 December 2025|**2025**
**£**
88,690,500
460,000
(2,000,000)
(2,385,500)
84,765,000|
|---|---|
The investment properties have been revalued at the reporting year end date on an open market value basis by an independent Chartered surveyor, Whybrow & Dodds Limited and represent their fair value.
The charity is a leasehold tenant and pays a peppercorn rent to the long leaseholder of a property which is owned by a company in which the trustees are directors/shareholders with control of the company.
- 18 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **11 Fixed asset investments**
|**Listed**
**investments**
**Other**
**investments**
**£**
**£**
**Cost or valuation**
At 1 January 2025
4,124,552
8,221,059
Additions
-
4,692,486
Valuation changes
827,106
696,561
Investment management fees
-
(130,329)
Disposals
-
(47,544)
At 31 December 2025
4,951,658
13,432,233
**Carrying amount**
At 31 December 2025
4,951,658
13,432,233
At 31 December 2024
4,124,552
8,221,059|**Total**
**£**
12,345,611
4,692,486
1,523,667
(130,329)
(47,544)|
|---|---|
||18,383,891|
||18,383,891|
||12,345,611|
Listed investments are carried at fair value and represent investment in equities which are traded in quoted public markets, primarily the London Stock Exchange.
Included in the carrying amount other investments is £2.1m (2024: £504k) of investments held at historic cost less impairment.
## **12 Debtors**
|**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**2025**
**£**
700,166
365,139
137,695
1,203,000|**2024**
**£**
506,747
385,651
186,056|
|---|---|---|
|||1,078,454|
Other debtors include a concessionary loan detailed as follows:
(i) A £350,000 (2024 - £350,000) interest free loan which was originally repayable in November 2019 and remains outstanding to assist in the purchase and fitting out of a property for an organisation with a vision to enhance Jewish youths' lives. The loan is underwritten by a guarantor and additionally, the charity has a second mortgage charge against the property.
The loan meets the criterion for treatment as programme related concessionary loans.
- 19 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **13 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
|Other taxation and social security
Trade creditors
Grants payable
Other creditors
Accruals and deferred income
**Analysis of deferred income**
Deferred income as at 1 January 2025
Landlord obligations fulfilled in 2025
Rent received in 2025 in respect of 2026
Deferred income as at 31 December 2025|**2025**
**£**
359,126
15,819
4,352,077
508,339
1,421,416
6,656,777
**£**
1,378,428
(1,378,428)
1,380,412
1,380,412|**2024**
**£**
361,263
78,343
3,854,979
285,178
1,419,348|
|||5,999,111|
||||
Deferred income relates to rental income received pre year end for tenancy periods post year end.
## **14 Creditors: amounts falling due after more than one year**
||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|Grants payable|7,147,900|7,883,311|
## **15 Endowment funds**
|||**Balance at**|**Gains/**|**Balance at**|**Gains/**|**Balance at**|
|---|---|---|---|---|---|---|
||**1**|**January 2024**|**(losses)**|**1 January 2025**|**(losses)**|**31 December**|
|||||||**2025**|
|||**£**|**£**|**£**|**£**|**£**|
|Expendable endowments||51,698,763|2,301,180|53,999,943|(1,134,209)|52,865,734|
Endowment funds represent assets which can only be converted into expendable income at the discretion of The Exilarch's Foundation. Income arising on the endowment funds can be used in accordance with the objects of The Exilarch's Foundation and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.
- 20 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **16 Designated funds**
The designated funds include amounts which have been set aside out of unrestricted funds by the trustees for specific purposes, made up as follows:
||||**Movement**||**Movement**||
|---|---|---|---|---|---|---|
||||**in funds**||**in funds**||
|||**Balance at**|**Incoming**|
**Balance at**|**Incoming**|**Balance at**|
||**1**|**January 2024**|**resources**|**1 January 2025**|**resources**|**31 December**|
|||||||**2025**|
|||**£**|**£**|**£**|**£**|**£**|
|Designated funds||18,250,000|-|18,250,000|-|18,250,000|
|||18,250,000|-|18,250,000|-|18,250,000|
The specific purposes of the designated funds are to allow the Foundation to meaningfully contribute to three long term objectives; the eventual re-establishment of a Jewish community in Iraq through the redevelopment of educational and religious institutions, the advancement of Universal Monotheism and a UK–Israel healthcare innovation initiative connecting Israeli digital health start-ups with the NHS.
- 21 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **17 General unrestricted funds**
The unrestricted funds of the Charity comprise the unexpended balances of investment income, grants which are not subject to specific conditions by donors and grantors as to how they may be used and capital gains or losses arising on assets which form part of the fund made up as follows:
||||**Movement in funds**|**Movement in funds**|**Movement in funds**||**Movement in funds**|**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|---|---|---|
|||**Balance at**|**Incoming**|**Gain on**|**Resources**|**Balance at**|**Incoming**|**Gain on**|**Resources**|**Balance at**|
||**1**|**January 2024**|**resources**|**investments**|**expended**|**1 January 2025**|**resources**|**investments**|**expended**|**31 December 2025**|
|||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|Unrestricted funds||18,644,578|7,881,605|3,816,562|(7,552,469)|22,790,276|7,985,466|827,376|(5,589,046)|26,014,072|
- 22 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **18 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Endowment**
**funds**
**2025**
**2025**
**£**
**£**
Fund balances at 31
December 2025 are
represented by:
Investment properties
31,899,266
52,865,734
Investments
18,383,891
-
Net current assets
1,128,815
-
Long term liabilities
(7,147,900)
-
44,264,072
52,865,734|**Total Unrestricted**
**funds**
**Endowment**
**funds**
**2025**
**2024**
**2024**
**£**
**£**
**£**
84,765,000
34,690,557
53,999,943
18,383,891
12,345,611
-
1,128,815
1,887,419
-
(7,147,900)
(7,883,311)
-
97,129,806
41,040,276
53,999,943|**Total**
**2024**
**£**
88,690,500
12,345,611
1,887,419
(7,883,311|
|---|---|---|
|||95,040,219|
## **19 Operating lease commitments**
## **Lessee**
At the reporting end date The Exilarch's Foundation had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Within one year
Between two and five years
In over five years|**2025**
**£**
62,000
248,000
5,189,145
5,499,145|**2024**
**£**
48,000
192,000
4,065,534|
|---|---|---|
|||4,305,534|
## **Lessor**
At the reporting end date The Exilarch's Foundation had contracted with tenants for the following minimum lease payments:
|Within one year
Between two and five years
In over five years|**2025**
**£**
7,329,638
24,467,959
27,202,526
59,000,123|**2024**
**£**
7,644,013
25,547,230
32,503,907|
|---|---|---|
|||65,695,150|
- 23 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
## **20 Capital commitments**
At 31 December 2025 The Exilarch's Foundation had capital commitments contracted for but not provided in the financial statements as follows:
||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|Contracted for but not provided in the financial statements:|||
|Acquisition of fixed asset and investments|15,094,675|14,092,451|
The charity was committed to invest in unlisted investments.
The £15.1m of investment commitments are expected to be called by fund managers over the next five years and will be funded through a combination of internal reserves, rental income, and distributions from investments.
## **21 Related party transactions**
During the year, grants amounting to £150,694 (2024: £122,520) were awarded to Westminster Academy, of which Mr David Dangoor CBE DL is a trustee.
During the year, Monopro Limited, a company of which the trustees are directors, donated accountancy services estimated to amount to £52,315 (2024: £44,933).
During the year, Monopro Limited also provided support in managing the Charity’s investment and property portfolio and the trustees are of the opinion that no reliable estimate can be attributed to this support.
During the year, the charity purchased an investment property for £460,000 from Standard Securities Limited, a company in which the trustees are directors and persons with significant control. The transaction was undertaken at market value, supported by an independent professional valuation. There were no outstanding balances with Standard Securities Limited at the year end.
## **22 Cash generated from operations**
|**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of investment property
Gain on disposal of investments
Fair value (gains)/losses on investment properties
Fair value gains on investments
Amortisation and impairment of investments
Investment management fees (non-cash)
Movements in working capital:
Increase in debtors
Increase/(decrease) in creditors
Increase/(decrease) in grants payable
**Cash absorbed by operations**|**2025**
**£**
2,089,587
(7,985,466)
(555,000)
-
2,385,500
(1,523,667)
-
130,329
(187,309)
158,574
(238,313)
(5,725,765)|**2024**
**£**
6,446,878
(7,881,605)
-
(1,126,521)
(3,779,500)
(1,368,953)
157,232
369,711
(654,722)
(1,410,806)
1,350,581|
|---|---|---|
|||(7,897,705)|
- 24 -
## **THE EXILARCH'S FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2025**_
|**23**|**Analysis of changes in net funds**||||
|---|---|---|---|---|
|||**At 1 January**|**Cash flows At 31 December**||
|||**2025**||**2025**|
|||**£**|**£**|**£**|
||Cash at bank and in hand|6,808,076|(225,484)|6,582,592|
- 25 -