Charity registration number 290609
FRIENDS OF HARVARD UNIVERSITY
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FRIENDS OF HARVARD UNIVERSITY
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | J.H. McFadden |
|---|---|
| J.D. Fishburn | |
| C.D. Quillen III | |
| R.G. Howells | |
| C. Wright | |
| J.V. Baker | |
| J O'Regan | |
| Charity number | 290609 |
| Principal address | 1 Mulgrave Chambers |
| 26-28 Mulgrave Road | |
| Sutton | |
| Surrey | |
| SM2 6LE | |
| Independent examiner | Hannah Sibley FCA |
| TC Group | |
| 5th Floor | |
| 3 Dorset Rise | |
| London | |
| EC4Y 8EN | |
| Bankers | National Westminster Bank Plc |
| Kidderminster Branch | |
| 24 High Street | |
| Kidderminster | |
| Worcs | |
| DY10 2DL | |
| Legal advisors | Mc Fadden, Pilkington & Ward LLP |
| 1 Mulgrave Chambers | |
| 26-28 Mulgrave Road | |
| Sutton | |
| Surrey | |
| SM2 6LE |
FRIENDS OF HARVARD UNIVERSITY
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Statement of financial position | 6 |
| Notes to the financial statements | 7 - 14 |
FRIENDS OF HARVARD UNIVERSITY
TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023
The Trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Trust Deed, the Charities Act 2011 and “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)” (effective 1 January 2019).
Objectives and activities
The objectives of the trust are:
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to provide scholarships and fellowships to past and present students of Harvard University to enable or assist them to attend establishments of higher or further education anywhere in the world or to engage in research or study at any such establishment.
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the provision of special prizes, grants or rewards to scholars and in particular to past and present students at Harvard University.
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the provision, improvement, replacement or repair of buildings and other equipment and assets of Harvard University which are used exclusively for the educational purposes of the University either by making new additions thereto or otherwise.
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the furtherance of general charitable and educational objects for the benefit of Harvard University or its past or present members.
The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities.
The Trust's objectives are met in such proportion and manner as the Trustees shall in their absolute discretion from time to time determine.
Achievements, performance and financial review
Total income and expenditure for the year is shown on page 5.
Approaches for donations were made during the year, which resulted in income of £458,599 (2022: £1,015,167) generated by way of donations of £413,219, donated professional services of £15,000 by McFadden, Pilkington & Ward LLP, gifts in kind of £30,280 in relation to professional fees paid by a related party on behalf of the charity and £100 of AML compensation.
Expenditure in the year amounted to £534,174 (2022: £3,251,694) of which £488,448 (2022: £3,207,084) is represented by payments to Harvard University, £356 (2022: £726) relates to JustGiving fees and commissions and £45,370 (2022: £43,884) was incurred in connection with governance costs.
Fair value movements on investments amounted to £151 (2022: £28,627) primarily relating to the change in valuation of shares between acquisition and disposal.
The Statement of Financial Position on page 6 of the financial statements shows the financial position of the Trust as at 31 December 2023.
Total assets less liabilities amounted to £371,405 (2022: £447,131) which is represented by the accumulated balance on the restricted income fund of £368,987 and an accumulated balance on the unrestricted income fund of £2,418.
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FRIENDS OF HARVARD UNIVERSITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
The Trust is committed to using its resources in pursuit of its charitable objects. It is also committed to maintaining a level of reserves that is prudent to meet on-going liabilities, sufficient to ensure that all commitments can be met and to protect the long-term future of its operations. It is the Trust's policy to retain sufficient reserves to cover administration costs and commitments for a period of one year.
The Trustees have considered the future cashflows and ability to call on trusted donors to cover operating expenses should this be required. The Trustees are satisfied that the current level of reserves are appropriate to its circumstances as grants to the University are only made out of donations received and there will be sufficient resources to cover the operating expenses of the charity.
Risk management
The Trustees have identified, monitored, and reviewed significant risks and have implemented systems and processes to manage and mitigate those risks. The main risks are associated with the continued donations from long term donors and ensuring that donations are generated from new Harvard Alumini and friends of Harvard in the business community. The Trustees review ongoing pledges and have a strong presence in the UK to continue to develop new relationships with donors. The Trustees are satisfied with the current risk management procedures in place which they believe satisfactorily mitigate the identified risks.
Fundraising Statement
The Charity's fundraising activities focus on existing relationships with a small number of individual donors and businesses. The Charity has not engaged with any professional fundraisers to raise funds. No complaints were received in relation to the Charity's fundraising activities.
Plans for the future
The trust's future plan is to work in the most efficient and effective way towards achieving its objectives.
Structure, governance and management
The Trust was established by a charitable deed on 25 October 1984 and is a registered charity No. 290609. It is governed by this deed and by the Charities Act 2011.
The Trustees who served during the year and up to the date of signature of the financial statements were: J.H. McFadden
J.D. Fishburn C.D. Quillen III R.G. Howells C. Wright J.V. Baker J O'Regan
The President of Harvard University has the right to nominate all new trustees with the existing trustees obliged to appoint such nominees. Additional trustees may be appointed at any time, but the total number shall not be less than three or more than nine.
The Trust has no employees. The day to day administration of the charity is provided by Charles Dominic Services Limited.
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FRIENDS OF HARVARD UNIVERSITY
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
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 year.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping sufficient 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.
On behalf of the board of Trustees
J.H. McFadden
Trustee Dated: 23 October 2024
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FRIENDS OF HARVARD UNIVERSITY
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF FRIENDS OF HARVARD UNIVERSITY
I report to the Trustees on my examination of the accounts of the charity for the year ended 31 December 2023 which are set out on pages 5 to 14.
Responsibilities and basis of report
As the charity's Trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the Act").
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the Act; or 2 the accounts do not accord with those records; or
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3 the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a "true and fair view" which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Use of this 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. My independent examination work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my independent examination work, for this report, or for the opinions I have formed.
Hannah Sibley FCA Chartered Accountant (Institute of Chartered Accountants in England and Wales) Independent Examiner
TC Group 5th Floor 3 Dorset Rise London EC4Y 8EN
Dated: 24 October 2024
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FRIENDS OF HARVARD UNIVERSITY
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted Restricted funds funds 2023 2023 Notes £ £ Income and endowments from: Voluntary income 3 45,280 413,219 Other income 2 100 - Total income 45,380 413,219 Expenditure on: Raising funds 4 - 356 Charitable activities 5 45,489 488,329 Total expenditure 45,489 488,685 Fair value movements on investments 11 - (151) Net expenditure for the year/ Net movement in funds (109) (75,617) Fund balances at 1 January 2023 2,527 444,604 Fund balances at 31 December 2023 2,418 368,987 |
Total Total 2023 2022 £ £ 458,499 1,015,167 100 - 458,599 1,015,167 356 726 533,818 3,250,968 534,174 3,251,694 (151) (28,627) (75,726) (2,265,154) 447,131 2,712,285 371,405 447,131 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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FRIENDS OF HARVARD UNIVERSITY
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
| Notes Fixed assets Investments 12 Current assets Debtors falling due after one year 13 Debtors falling due within one year 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Income funds Restricted funds 15 Unrestricted funds |
2023 £ 166,143 211,594 32,722 410,459 (39,106) |
2022 £ £ 52 333,453 120,751 181,329 635,533 (188,466) 371,353 371,405 368,987 2,418 371,405 |
£ 64 447,067 |
|---|---|---|---|
| 447,131 | |||
| 444,604 2,527 |
|||
| 447,131 |
The financial statements were approved by the Trustees on 23 October 2024
J.H. McFadden Trustee
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FRIENDS OF HARVARD UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
Charity information
Friends of Harvard University is a charity registered in England & Wales with registration number 290609. The principal address is 1 Mulgrave Chambers, 26-28 Mulgrave Road, Sutton, Surrey, SM2 6LE.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Trust Deed, the Charities Act 2011 and “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)” (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention, modified to include the revaluation of the investment portfolio at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
The unrestricted income fund consists of funds to be used to meet ongoing overheads and administrative expenses.
The restricted funds, which are wholly payable to Harvard University, are subject to specific conditions by donors as to how they may be used.
1.4 Incoming resources
Donations, legacies and other forms of voluntary income are recognised as income when receivable.
Donated services are recognised at their estimated open market value, with an equivalent amount recognised as expenditure.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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FRIENDS OF HARVARD UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
1.5 Resources expended
All expenditure is accounted for on an accruals basis. All expenses, including governance costs, are allocated to the applicable expenditure headings in the statement of financial activities.
Grants payable are payments to Harvard University in the furtherance of the charitable objects of the Trust.
1.6 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net gains/ (losses) on investments for the year in the Statement of Financial Activities. Transaction costs are expensed as incurred.
1.7 Cash and cash equivalents
Cash and cash equivalents include deposits held at call with banks.
1.8 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
1.9 Foreign exchange
Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in total charitable expenditure.
2 Other income
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Other income | 100 | - |
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FRIENDS OF HARVARD UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
3 Voluntary income
| Unrestricted Restricted funds funds £ £ Donations and gifts - 413,219 Donated goods and services 45,280 - 45,280 413,219 For the year ended 31 December 2022 43,800 971,367 4 Expenditure on raising funds Agents commissions Other fundraising costs 5 Charitable activities Grant funding of activities (see note 6) Governance costs (see note 8) Analysis by fund Unrestricted funds Restricted funds |
Total Total 2023 2022 £ £ 413,219 971,367 45,280 43,800 458,499 1,015,167 1,015,167 Restricted Restricted funds funds 2023 2022 £ £ 356 726 2023 2022 £ £ 488,448 3,207,084 45,370 43,884 533,818 3,250,968 45,489 72,047 488,329 3,178,921 533,818 3,250,968 |
Total 2022 £ 971,367 43,800 |
|---|---|---|
| 1,015,167 | ||
| 1,015,167 | ||
| 2022 £ 3,207,084 43,884 |
||
| 3,250,968 | ||
| 72,047 3,178,921 |
||
| 3,250,968 |
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FRIENDS OF HARVARD UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
6 Grants payable
| Grants to institutions: Harvard University Analysis by fund Unrestricted funds Restricted funds |
2023 £ 488,448 119 488,329 488,448 |
2022 £ 3,207,084 |
|---|---|---|
| 28,163 3,178,921 |
||
| 3,207,084 |
7 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or reimbursed expenses from the charity during the year.
8 Governance costs
| Audit and accountancy fees Legal and professional Bank charges |
2023 £ 12,280 33,000 90 45,370 |
2022 £ 12,300 31,500 84 |
|---|---|---|
| 43,884 |
Audit and accountancy fees include £6,900 (2022: £9,000) paid to the Trust's accountants for the Independent Examination (2022: Audit) of these financial statements, £900 for the balance of the 2022 audit fees and £4,480 (2022: £3,300) for other services.
9 Employees
There were no employees during the year or in the prior year. Day to day administration of the charity is provided by Charles Dominic Services Limited.
10 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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FRIENDS OF HARVARD UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
11 Fair value movements on investments
| Restricted | Restricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Fair value movements on investments | (139) | (28,511) |
| Revaluation of listed investments | (12) | (116) |
| (151) | (28,627) | |
| Fixed asset investments | ||
| Listed | ||
| investments | ||
| £ | ||
| Cost or valuation | ||
| At 1 January 2023 | 64 | |
| Valuation changes | (12) | |
| At 31 December 2023 | 52 | |
| Carrying amount | ||
| At 31 December 2023 | 52 | |
| At 31 December 2022 | 64 | |
| Debtors | ||
| 2023 | 2022 | |
| Amounts falling due within one year: | £ | £ |
| Other debtors | 211,594 | 120,751 |
| 2023 | 2022 | |
| Amounts falling due after more than one year: | £ | £ |
| Other debtors | 166,143 | 333,453 |
| Total debtors | 377,737 | 454,204 |
12 Fixed asset investments
13 Debtors
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FRIENDS OF HARVARD UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 14 Creditors: amounts falling due within one year Other creditors Accruals and deferred income |
2023 £ 30,906 8,200 39,106 |
2022 £ 178,866 9,600 |
|---|---|---|
| 188,466 |
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| Investments Balance at |
gains/losses 31 December 2023 |
£ £ |
- - |
- - |
- - |
- 225,000 |
- - |
- 123,004 |
- 20,983 |
- - |
- - |
- - |
- - |
- - |
(151) - |
(151) 368,987 |
|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Restricted funds | The income funds of the charity include restricted funds, the movement for which is set out below: | Balance at Incoming Resources Investments Balance at Incoming Resources |
1 January 2022 resources expended gains/losses 1 January 2023 resources expended |
£ £ £ £ £ £ £ |
Stephanie Hui and Harold Wong | Goldman Sachs Gives Scholarship Fund 107,805 - (107,805) - - - - |
Philippe Wamba Fund for Summer 365,241 - (365,241) - - - - |
Danny and Manizeh Rimer Gallery Fund 1,833,465 162,131 (1,967,085) (28,511) - - - |
Undergraduate level students of Greek or | Romanian origin Goldman Sachs Gives 375,000 - (75,000) - 300,000 - (75,000) |
Department of Organismic and | Evolutionary Biology at Harvard - 263,245 (263,245) - - - - |
Harvard Business School for the HBS | Fund - 102,834 (73,913) - 28,921 244,889 (150,806) |
Learn to Fish Christian Research | Endowment Fund - 196,933 (81,250) - 115,683 13,175 (107,875) |
Harvard Law School in support of Annual | Scholarship Funds - 53,438 (53,438) - - - - |
Dyvik Henke Family Undergraduate | Financial Aid Fund - 51,875 (51,875) - - - - |
Graduate School Fund Fellowship in | Physics - 38,427 (38,427) - - 50,631 (50,631) |
ADS Endowed UWCS Fund - 29,500 (29,500) - - - - |
Kennedy School of Government for the | HKS Fund - 25,625 (25,625) - - 25,450 (25,450) |
Others (Less than £25,000) - 47,359 (47,359) - - 79,074 (78,923) |
2,681,511 971,367 (3,179,763) (28,511) 444,604 413,219 (488,685) |
The charity's restricted funds comprise monies to be granted to Harvard University for the purposes specified by donors, as set out above. | |
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FRIENDS OF HARVARD UNIVERSITY
16 Related party transactions
Donations include £15,000 of donated services by McFadden, Pilkington & Ward LLP (2022: £15,000), a law firm in which Trustee, J McFadden is a partner.
Donations include £30,280 (2022: £28,800) of donations in kind in relation to the payment of professional fees received from Harvard Global, a related entity responsible for external payments of the charity.
During the year ended 31 December 2023, grants of £488,448 (2022: £3,207,084) were awarded to Harvard University, which has the right to nominate all new Trustees.
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