THE KENNEL CLUB CHARITABLE TRUST REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 REGISTERED CHARrrY NO. 327802 THE KENNEL CLUB CHARITABLE TRUST REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 cop¥rENTS Trustees, Report........... ststement of Trustees, Resportsiblilies........ Indepèndent Examlnors R8POrt........ statement of Financial ActNities........... 10 Balance Sheet . 11 Notes to the Financial Statements.............. 12 THE KENNEL CLUB CHARITABLE TRUST TRUSTEES. REPORT YEAR ENDED 31 DECEMBER20ZJ Patron Fonnerly Her Majesty Queen Elizabeth11. VIco•Presldent Sir John Spuding KCVO OBE is the Trusvs WI￿resIdent Truste8S Th8 following have be8n the Trustees throughout per￿d covered by th8 attathed financlal statements {exc8Pt wh8re stated): Mrs J Millard (Chalr from 11 Decemb8r 2023) Revd W King (former Chair- retired 11 December 2023) Professor M Herrtage Dr A Higgins Mr G Hill Mr Bill Lambert (appointed 21 Jun8 2024) Mrs R Smart (retired 21 June 2024) Ambassadorn The following have been Ambassadors for the Trust throughout the year (except where ststed): East AThJlia S(xJth East GloucestershlrelAvon South Wa18S North Wales Scotland Mr R Morland The lat8 Mrs l E Tery Mr M L Vines MrA R J Morgan Mr S Jones Mrs M Hennis When called upon, the Ambassadors (like the Trust88s) represent the Trust whenever appropriate (for example. ceremonially acceptlng donations to the Trust or inspecting applicants for grants who are unknown to the Trustees). In these ways the existence and Objects of the Trust can be made known to a wlder audlence. and the reputatlon of the Trust can b8 protected. The Twstees also wish to note wlth sadness the passing of Mrs l E Terry who passed avmy In 2023 8nd wish to record their thanks for all the support Mrs l E Tery prOV￿ed overthe years to Chartty as an ambassador. Admlnlstrallv• Support The followlng Individuals aTrJ Teams are employ8d by The Royal Kennel Club and provkle admlnlstratlve support to the Trustees and the ch8rlty. Secr8tary to the Trustees- Mrs A Tabrett Grants Administration - Mrs A Tabrett Finance and IT- Stsff at The Royal Kenn81 Club THE KENNEL CLUB CHARITABLE TRUST TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2023 Admlnistratlon Detalls The Principal Office of the Trust is: The Kennel Club Limited 10 Clarges Street Pl￿dillY LOnd￿t W1J 8AB Registered Charity number. 327802 Banker3: Bardays Bank p Bamet and Hampstead Business C8ntre LorKlon N20 OWE Metro Bank k One SoLrthampton Row London WC18 SHA Independent Examlnets: Crc6ve UK LLP 81ack County House Rounds Green Road Oldbury West Midlands 869 2DG Investrnènt Advlsors.. CCLA Invesknent Management Ltd 80 Cheapside Lond<)n EC2V 6DZ THE KENNEL CLUB CHARITABLE TRUST TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2023 Structure. governance and manag8Th￿t The Kennel Club Charitable Trust Is registered as an urunoXp￿th ¢haTity with the Chanty Commission for England & Wales {Re9iStration No. 327802) and is govemed by a Dedaratiim of Twst dated 1 J8nuary 2005 and it is managed by the Trustees listed on page 2. The policy for ro¢ruitiiient of new Trustees is to consid8r nominations from the 8xlstlng Trusto8s and from the Board of The Royal K8nn81 Club Limited. Induction and training ar8 conducted by encouraging a potèntial Truste8 to attend a Irial. meeting of th8 Trusteas. and by providiTVJ copies of the Trust Deed, the latest accounts and Minutes, and the Charity Commission's guidance CC3 The Essential Trustee". what you need to know, what you need to do". Where Ihe Individual is inexperienced in the role of being a Trust8e. onethon-one training may be provided. TheTrust8es receive no remuneration or benefftsfrom their position. Lxrtthéir expenses connected wth the Trust ar8 relmbursed by Th8 Royal Kennel Club Limlled (see Not8 3). The charity and the Trustees r8C8Ne admlnlstrativ8 SUPPOrt from employeas of The Royal Kennel Club as s8t out on page 2. This support is donatsd to the charty and disclosed as 'Donations in kind, and 'Costs bome by Th8 Royal Kennel Club, in the Statement of Financial AGtivltss. ObJeGtlve• and athltl The Objedves of the charity can be summarised as belng: To promote the advancement of education arKI sclence by furthering r880arch Into canlne diseage8 and hereditary disorders of dogs. To promote the quality of life of human beirys by promoting dogs as therapeuiic and practlcal aids to humans. To promote the rellef of Sufferlng of dogs which are In n8ed of cara and attantkn. These Objects have 8pplled slnce the foundation oflhe Trust In 1988. The chanty continued to purse these objectives by undertaklng the primary activlty of revlewlng grant applicatkins and awarding grants to third party organlsatlons that advance these objecfjve8. The acllvit188 in 2023 included the folbwlng. Awardlng scientific grants amounting to £663K (2022 - £395K). induding to the re-fomied Kennel Club Genetics C8ntre in partnership wrth the Unfverslty of Cambrldge . Awardlng non-sclentific grants amounted to £384K (2022 - £697K), made to a total of 31 reclplent bodles, induding to the Intemational Canlne Heallh Awards. Achl•vom•nt and perfornianc• The Tnjstees met on four occasions during the year to consKler the business of the Trust and th8 making of grants. Detsils of all grants made are shown in Note 2 to the fnan(xal statern￿ts M pages 14 to 15 ofthi8 rewTL Th8 eCor￿M￿ cllmats has oxtlnu&J to pkn pressure donations. Tha Royal K8nnel Club has continued to make donations in kind to support the administrative activities of the charity and arrange a donation of £1 from its affinity partner on the sale of each Kennel Club Pet insuranc8 policy sold during Ihe year. H¢J+vever, The Royal Kennel Club dld rw)t make any charilable donations to the ctkarlty during the year and has informed Trustées that it is unlikely tr• bo in 8 Posttion do ￿ in the short temi. Under the current cfflditions the TNstses have to pause th8ir fundralsing strategy are ￿nsIderIng in onsultation with Th8 Royal Kennel Club how b8St to undertsk8 fjjndraislng 8Cti¥itles n th8 fuiur•. During the year the Trust88s were infomied of a legacy donation whith was finally received in April 2024. This has been accounted for in 2023 as th8 legaGy was agreed in th8 year. Though legacies are unpredictable they are a source of (lonations Ihat the Trustees intend to activety develop in the future. THE KENNEL CLUB CHARITABLE TRUST TRUSTEES. REpoiYr YEAR ENDED 31 DECEMBER 2023 Flnanctal rnvlow The Trusvs totsl outgoings for 2023 were £1,300K {2022 - £1,275K). Of these amounts £1.048K {2022 - £1,092K) represented grants made by th8 Trust Total income was £848K compared with £870K in 2022. Together with a net unrealised gain on the value of investments amounting to £145K (2022- loss of £256K). The nat assets of the charity decreased by £307K from £2,446K to £2.139K: In the prlor year there was a decrease of £661 Flnanclal statem•nts Th8 accompanylng financkql statements cover the year ended 31 Decamber 2023. The Trusteos consider tha( in the context of th8 substsntial liquid assets available to the charfty In th8 form of cash and inv8slm8nts, the going concem basis on which the accounts are prepared is appropriate and Ihat applle2ble accounting standards and statements of recommended practice have been foll0v￿. R16ks The Trustees have rAinslder8d the malor risks to which the Trust may be exposed and concluded that ralsing new funds to allow the charity to make grants Is the hlgh6st rfsk. This has proven challenging over recent years du8 to the 8conomi¢ climate and th8 lack of funding from Th8 Royal Kennel Club. The Truste8s endeavored to mitigate this risk by employing a third- party fundraising consultancy Gifted Phi18nthropy. But this did not achl8ve the required return to m8rit the investment and so the TNsts6s hav8 temiinated their contract with Gifted Phi18nthropy in April 2024. The Trustees are concemed that there Is no estsbllshed source of future fundlng for the charftles activltles and Is In consultatlon wth The Royal Kenn81 Club ￿ how best to tackle thls matter. Inv••tm•nts and Cash Balanc•8 The Trustees. advlsed by their profes8lonal inveslment advisors, follow an Inv8Stm8nt pollcy whlch 88eks balanced income and capital grovrth, with a moderate attitude to risk, and within ethical parameters which they have defined recognising the Trusys charitable purpose. The Trusfs investm8nts are represented by units In CCLA. There was no change In the content of the Trusfs Investment porifolio during 2023. The market value of the holdings has decreased by a net £485K over the year, due to disinv8strnents totaling £630k mad8 to partially fund grants falling due in the year, whlch was offset by the unrealised gain in the year of £145k. CCLA, our investment managers and advlsers, have a benchmark of achleving 8n Inflatlon (RPI) adjusted retum of an average of 5Yo pa over the business cycle (say &7 years); and also measure thelr perforniance agalnst a composite comparator index. The Trusfs cash balances decreased over ts year by £57K (2022 increase of £405K). Reserv88 The Twsfs reserves decreased by £307K {2022: decrease of £661 K) to £ 2.1391Q The r8seNes at 310ecember 2023 are as follows: Charit8bl8 commitments- £1.230K In grants over the next4 years (see Note 9). Restricted funds- £588k Free reseNes - £321 k Considering the low level of free reseNes the TNstees have decwjed to make no furthar grant commitments unless they receNe prior funding. This pdicy remains under review at eath TnBtees meeting where future grant fundlng discussed and considered. THE KENNEL CLUB CHARITABLE TRUST TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2023 Grant maklng pollcy All applications are fully considered by the Tntstees against spectfic criteria and with the support of spe¢lalist advice where appropriate. The latter includes peer review of substsntial scienttfic applications. Grants are approved by the Trustees colleclively. Generally, applications purely for building costs. or requests from Individuals or from organisatThis whose concern is not predominantly with the dog do not receive favourable att8ntion. TheTrusYs work is adverttsed through the Kennel Club Y￿bsite, in the Kennel Club Joumal and by direct contact wlth individuals, societies and universities. as well as in the Directory of Grant Making Trusts and 0th8r listings of charities. Futuro actlvftlas A5 rthd in the review 8bov8 future funding for fvrther grants Is Ilmited. Therefore, tho Trustses ar8 foGuslng on administering and di3tributing the commitments made to dats. After many yèars of a successful funding partnership a public announcement was made in February 2024 by The Royal Kennel Club Limited that it coukl no I￿ger fvnd the Canine Genetics C8nter based at the Unlversty of Cambridge. Thé funding over the term of the partnetship from 2019 to 2024 amounts to over £3.gM and was dlstributed by the charlty. Th8 futurè of the data gathered as part of the Centerfs r8searth is the subject of dlscusslons bet￿en all Inter8Sted parties. The Twstees are now discusslng the future opwrtunities open to the tharity with the Board of The Royal K8nn81 Club Llmf(ed wilh a view to arriving at a sustalnable business mod81 that will allow the charity to once again fund future grants which further ts charitable objects whith are vtholty Compatib￿ wrth th8 current strat8gy of Th8 Royal Kennel Club Limited. Publlc Ben•fft The TNste88 are fully aware of the Charity Commission's r8quirem8nts on the 8ubj8Ct of publlc beneflt. The Who￿ purpose of the Trust is to Improve the haalth and welfar9 of dogs, and to provlde healthy and tralned canlne Companions to human being8. The Trust accepts grant appllcatlons across a broad base and within the Oblects of the charty. It operetes an open process. assessing applications on the basls of credibility of the applicant, the assessed efficiency of the proposed object for support, and ts likely abilty of the recipient to fund them8elves on a continuing basi8. Th8 Ilst of grants In Nole 2 to the a￿Unts Indicates the instrtutlons supported. and Press Releases expand on some of these case studies. The Trust8es believe that the Trust dearty wovKl8s a public benefi( without discrimination, and that each of its Objects incorporates this feature in positlve terms. Thank8 The Trustees wish to thank Slr John Spurllng for hls encouragement and 8xpertlse tn hls role as Vlce-Presldent; tho Trust's Ambassadors: all donors and all the r￿lPIents of our grants who work for the benefit of dogs and their health and welfar8. On behalf of the Trustees: Mrs J Millard Date [( io [IOLF THE KENNEL CLUB CHARITABLE TRUST STATEMEKf OF TRUSTEES. RESPONSIBILMES The Trustees are responsible for preparing the trustees. report and the financial statements in accordance wlih applicabl818w and Unitèd Kingdom Ac¢ounling Stsndards (United King¢*)m Generally Accepted Accounting Practice) induding Financial Reporting Standard 102. Charfty law requires the trustees to prepare financial stst8ments for each financial year in accordance with United Kingdom Generally Accepted Accounting PractiG8 (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true 8nd fair view of the stat8 of affairs of the charity and of the incoming resourc8s and application of resources, including the income and expenditure, of the charlty for the period. In preparing thos8 financial statements the Trustees ar8 required to: stste whether applicable UK Accounting Standards have been followed. suble¢t to any matsrial departur8S dlsclosed and explained in tho financial statements: select sultable accountlng policies and then apply them conslstently. obsetve the methods and principles in the Charrties SORP 2019; make judgments and estimates that are reasonable and PNdenL' prepare the financial statements on tho gdng concern basis unless it is Snapproprlate to presume that the charlty will continu8 in business. Th8 Tnjstees are r8sponsible for keeping accountlng records that are sufficient to show and explaln the charfvs transactions and dlsclose with reasonabl8 aGcura¢y at any tlme the financial position of the charity and enable them to ensure that the financial statements comply with the Chariti8s Act 2011 and regulations made thereunder. They are also resp)n8lble for safeguarding thè assets of the charty and hence for taklng reasonable steps for the preventlon and detectw)n of fraud and other Irregularitles. THE KENNEL CLUB CHARITABLE TRUST INDEPENDEKf EXAMINERS REPORT TO THE TRUSTEES OF THE KENNEL CLUB CHARrrABLE TRUST Indepgndent Examlnefs Report to the Trust•es of The Kennel Club Charltable Tru•t I report to the charity Twstees on my exarnination of the accounts of the Charity for the year ended 31 December 2023. Responslbllltles and Basls of R•port As th8 Trustees of the Charlty (and Its dir￿Or5 for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('th8 2011 ACV). I report in respect of my examination of the Charws a¢(￿Unts Carried out under sectbon 145 of th8 2011 Act and In C8rylng out my examlnatlon I hav8 followed the applicable Diredions given by the Charity Commission under secfjon 145(5)