2024-12-31-accounts - The Marchig Animal Welfare Trust

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MARCHIG ANIMAL WELFARE TRUST REPORT AND FINANCIAL STATEMENTS Year ended 31 December 2024

Scottish Charity No.: SC038057 England & Wales Charity No.: 802133

Whitelaw Wells

Statutory Auditors 9 Ainslie Place Edinburgh EH3 6AT

MARCHIG ANIMAL WELFARE TRUST

CONTENTS PAGE

Page Report of the Trustees Independent auditors’ report to the Trustees Statement of financial activities incorporating the income and expenditure account 10 Balance sheet 11 Statement of Cash Flows 12 Notes forming part of the financial statements 13

MARCHIG ANIMAL WELFARE TRUST

Report of the Trustees Year ended 31 December 2024

The Trustees have pleasure in submitting their annual report for the year ended 31 December 2024.

The financial statements comply with the Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Trust Deed, 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

Purposes

The purposes of the Trust shall be wholly charitable. It operates as a grant-making Trust to promote and advance animal welfare and in furtherance of the following object: -

to promote and encourage practical work in preventing cruelty to animals and relieving suffering of animals

Aims

The Trust furthers its charitable objects (described above) by making grants to organisations and individuals at home and abroad which share the same, or similar, objectives.

Activities

During the year the Trust continued to support a variety of organisations and individuals at home and abroad in accordance with its objects through awarding grants.

Grant making policy

The Trust invites applications for funding which are then reviewed against specific criteria as set by the Trustees in accordance with the Trust’s objectives. A full and detailed report is available from the Head Office.

Public Benefit

The Trustees have considered the Charity Commission guidance on public benefit. The Trust’s public benefit has been discharged by making grants and donations in accordance with its objectives, aims and grant making policy, to organisations directly involved in the provision of charitable services.

MARCHIG ANIMAL WELFARE TRUST

Report of the Trustees Year ended 31 December 2024

ACHIEVEMENTS AND PERFORMANCE

The Trust does not engage in charitable activities directly but meets its charitable purposes, and public benefit, by awarding grants to third party organisations.

During the year the Trustees have received and reviewed applications from a number of organisations. The Trustees are pleased to report that there were significant grants awarded in the year, both in number and in value. Grants paid and awarded in the year amounted to £839,055 (2023: £443,592). The increase was due to movements in future grant commitments increasing compared to the previous year, however, in cash terms grants paid were consistent at £1,010,134 compared to £987,460 in 2023, as shown in note 2. A total of 69 (2023: 65) grants were paid out of which 17 (2023: 15) were for less than £5,000.

FINANCIAL REVIEW

Interest and dividends receivable in the year totalled £528,348 (2023: £458,545) with donations of £47,614 (2023: £4,438,190). Total income for the year was £575,962 (2023: £4,896,745), with expenditure of £1,035,404 (2023: £610,761) leaving a deficit for the year of £459,442 (2023: £4,285,984 (surplus)) before gains and losses on investments. Overall, there were net gain on investments of £1,283,159 (2023: gain of £642,195) and other losses of £4,454 (2023: loss of £7,776) leaving a net gain in funds for the year of £819,263 (2023: gain of £4,920,403), of which £793,898 (2023: £4,920,403) is unrestricted and £25,365 (2023: £NIL) is restricted.

Support costs amounted to £81,879 (2023: £85,499) during the year, therefore remaining low at 0.43% of the closing general fund balance (2023: 0.53%). One Trustee claimed office expenses totalling £2,733 (2023: £2,583).

At 31 December 2024 the market value of investments held was £18.3m (2023: £18.6m), with the balance on the general fund £19.0m (2023: £18.2m).

Cash at the bank as at 31 December 2024 amounted to £1,171,888 (2023: £184,457).

Investment objectives, policy and performance

In accordance with the Trust Deed, the Trustees have the power to invest in such stocks, shares, investments and property in the UK or overseas as they in their sole discretion see fit, however wherever possible the objectives are to invest ethically. Specifically, the investment managers have been directed not to invest directly in any company which uses animals in medical and non-medical research or whose practices are known to be materially contributing to ‘climate change’. Furthermore, the Trustees would like their investment managers to increase exposure to industries and companies which are contributing to climate change mitigation and adaptation, avoiding at all times any ‘over-pricing risk’ within the system. The Trustees have engaged Rathbones as investment managers. The Trustees investment policy is geared towards a balanced return between capital and income.

The value of the investments has decreased by 1.8% in the year, mainly due to the net disposals of approximately £1,616,124. Increased market prices at the year-end resulted in unrealised gains of £1,068,420 within the portfolio. The Trustees closely monitor investment performance and are in regular contact with the charity’s Investment Managers.

MARCHIG ANIMAL WELFARE TRUST

Report of the Trustees Year ended 31 December 2024

Investment objectives, policy and performance (continued)

Gross dividend income has increased by £23,842 (6.38%) in the year following changes in the investment portfolio in the previous and current years.

Risk Management

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. They have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate exposure to the major risks.

The principal risks faced by the Trust are investment risk together with operational risk from occasional fraudulent grant applications.

The Trustees mitigate investment risk by maintaining a diversified investment portfolio managed by professional investment managers.

The operational risk of making ineffective grants is mitigated by ensuring the Trustees have the necessary skills and expertise to objectively assess each application received. The grant making process involves detailed scrutiny of all the applications by all Trustees in conjunction with the Trustees detailed knowledge of the sector. The review process is mainly focussed on making a difference in relation to animal welfare and protection derived from any grant made and ensuring fraudulent requests are detected.

Reserves Policy

It is the policy of the Trustees to ultimately distribute the income of the Trust in the form of grants or donations. At the year end the free reserves of the charity were £19,000,829 (2023: £18,231,931).

The funds of the Trust are wholly unrestricted and are represented by a portfolio of investments and cash balances. The investments are managed on a discretionary basis by the investment managers. The Trustees have power to draw upon the investments in furtherance of the Trust’s objectives whilst retaining sufficient funds to meet any commitments they may undertake.

As the assets of the Trust are held in a readily realisable form the Trustees do not therefore consider it necessary to maintain specific cash reserves.

PLANS FOR THE FUTURE

The Trustees will continue to consider all grant applications received and to assess them all according to merit. There is no internal requirement that a certain proportion of income be expended in any one year. The Trust also has an objective to invest the funds at its disposal in an effective manner thereby increasing the resources available to continue to make grants to worthwhile causes in the future.

The Trust is also involved in a campaign, in line with the charity’s objectives, of seeking to end the inhumane killing of large numbers of dogs in Morocco. These costs have been represented separately on the profit and loss and totalled £22,249 in 2024 (2023: £nil), with donation income of £47,614 (2023: £nil) received.

MARCHIG ANIMAL WELFARE TRUST

Report of the Trustees Year ended 31 December 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document and constitution

The Trust is an unincorporated trust, constituted under a Trust Deed dated 13 September 1989 (amended 1 October 2001), and is recognised as a charity by the Office of the Scottish Charity Regulator, charity number SC038057, and by the Charity Commission in England & Wales, charity number 802133.

Recruitment and appointment of Trustees

The Trustees are appointed by the existing Board of Trustees and the Trust Deed provides for a minimum of three Trustees and a maximum of six Trustees. The charity has policies and procedures in place for the induction and ongoing training of new Trustees to ensure they are supported in their responsibilities and the charity’s activities.

The Trustees meet at least twice in each calendar year and more often as occasion requires to agree the broad strategy and grants to be awarded by the Trust and consider other issues such as investment, reserve and risk management policies and performance. The quorum for each meeting is two thirds of the total number of Trustees with the Trustees meeting virtually three times during the current year.

Organisational structure

The charity is managed at a strategic level by the Trustees. In practice one Trustee has been delegated to perform the management and administration of the charity on a day-to-day basis. In August 2022, the charity engaged a grant administrator on an agreement basis, who is responsible for the receipt and processing of grant applications.

Pay and remuneration policy

In accordance with paragraph 4 of the Trust Deed, the Trustees have the power to indemnify and reimburse themselves for any expenses or liabilities incurred in relation to the Trust. The Trust has no staff administration and support is provided by third parties on an invoice basis.

MARCHIG ANIMAL WELFARE TRUST

Report of the Trustees Year ended 31 December 2024

REFERENCE AND ADMINISTRATIVE INFORMATION

Charity name:	Marchig Animal Welfare Trust
Charity registration number:	SC038057 (Scotland)
	802133 (England & Wales)
Principal office:	Caledonian Exchange
	19A Canning Street
	Edinburgh
	EH3 8HE
Trustees:	Les Ward
	Janice McLoughlin
	Fraser Symon
	Matthew Tickle
	Luke Gamble (appointed 9 October 2024,
	resigned 8 June 2025)
Statutory Auditors:	Whitelaw Wells
	Statutory Auditors
	9 Ainslie Place
	Edinburgh
	EH3 6AT
Bankers:	Rathbone Investment Management
	8 Finsbury Circus
	London
	EC2M 7AZ
Solicitors:	Lindsays
	Caledonian Exchange
	19A Canning Street
	Edinburgh
	EH3 8HE
Investment managers:	Rathbone Investment Management
	8 Finsbury Circus
	London
	EC2M 7AZ

MARCHIG ANIMAL WELFARE TRUST

Report of the Trustees Year ended 31 December 2024

STATEMENT AS TO DISCLOSURE TO AUDITORS

So far as the Trustees are aware, there is no relevant audit information of which the charity’s auditors are unaware, and each Trustee has taken all the steps they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

Trustees’ responsibilities

The Trustees are responsible for preparing a Trustees annual report and financial statements in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in Scotland, 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 Trust at the end of the year and of the profit or loss for the year then ended. In preparing those 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 judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in business.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Trust’s constitution. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the Trust and financial information included on the Trust’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees confirm that the accounts comply with the above requirements.

Approved by the Trustees on 2 September 2025 and signed on their behalf:

Les Ward Trustee

MARCHIG ANIMAL WELFARE TRUST

Independent Auditor’s Report to the Trustees of Marchig Animal Welfare Trust Year ended 31 December 2024

Opinion

We have audited the financial statements of Marchig Animal Welfare Trust for the year ended 31 December 2024, which comprise the Statement of Financial Activities (incorporating the Income and Expenditure Account), the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, Including FRS102 ‘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 2024 and of its incoming resources and application of the 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 and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

MARCHIG ANIMAL WELFARE TRUST

Independent Auditor’s Report to the Trustees of Marchig Animal Welfare Trust Year ended 31 December 2024

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 and Trustees Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the Trustees’ annual report;
Proper 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

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 6, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 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 based on these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

MARCHIG ANIMAL WELFARE TRUST

Independent Auditor’s Report to the Trustees of Marchig Animal Welfare Trust Year ended 31 December 2024

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:

Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error.

From enquiries of those charged with governance, it was determined that the risk of material misstatement from fraud was low with little scope for fraud to occur. Our audit testing is designed to detect material misstatements from fraud where there is not high-level collusion.

Our audit testing was designed to detect material misstatements from other irregularities that result from error where there is not high-level concealment of the error. In this regard the following audit work was undertaken: applicable laws and regulations were reviewed and discussed with management; senior management meeting minutes were reviewed; internal controls were reviewed; and journals were reviewed. From this audit testing it was determined that the risk of material misstatement in this regard was low.

We carried income testing and grants payable testing which was designed to identify any irregularities as a result of simple mistakes or human error. From this audit testing it was determined that the risk of material misstatement in this regard was low.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with section 144 (1) of The Charities Act 2011, section 44 (1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 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 auditors’ 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 its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Whit. Woe.

Whitelaw Wells Statutory Auditor 9 Ainslie Place Edinburgh Midlothian EH3 6AS

2 September 2025

Whitelaw Wells is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

MARCHIG ANIMAL WELFARE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT

For the year ended 31 December 2024

		Restricted	Unrestricted	2024	2023
	Note	Fund	Fund	Total	Total
		£	£	£	£
Income and endowments from
Investments:
Bank interest received		-	397,299	397,299	373,457
Dividends received		-	131,049	131,049	85,098
Donations		47,614	-	47,614	4,438,190
Total income		47,614	528,348	575,962	4,896,745
Expenditure on
Raising funds:
Investment management costs		-	92,221	92,221	81,670
Charitable activities:
Grants Payable	2	-	839,055	839,055	443,592
Morocco Campaign Costs		22,249	-	22,249	-
Charitable activities	3	-	81,879	81,879	85,499
Total Expenditure		22,249	1,013,155	1,035,404	610,761
Net Income/(expenditure) before		25,365	(484,807)	(459,442)	4,285,984
gains and losses on investments
Net gains on investments	5	-	1,283,159	1,283,159	642,195
Net income and
net movement in funds		25,365	798,352	823,717	4,982,179
Other recognised gains and losses
Other (losses)		-	(4,454)	(4,454)	(7,776)
Net movement in funds		25,365	793,898	819,263	4,920,403
Reconciliation of funds
Balance on general fund at 31 December 2023		-	18,231,931	18,231,931	13,311,528
Balance on general fund at 31 December 2024		25,365	19,025,829	19,051,194	18,231,931

The charity has no recognised gains or losses other than the results for the year set out above. All activities of the charity are classed as continuing and are unrestricted in the current and previous years. The notes on pages 13 to 21 are an integral part of this statement of financial activities.

MARCHIG ANIMAL WELFARE TRUST

BALANCE SHEET

As at 31 December 2024

	Note		2024	2023
			£	£
Fixed assets:
Investments	5		18,261,305	18,594,270
Current assets:
Cash at bank		1,171,888		184,457
		1,171,888		184,457
Creditors: amounts falling
due within one year	6 (362,033)	6 (362,033)		(546,796)
Net current assets/ (liabilities)			809,855	(362,339)
Total assets less current liabilities			19,071,160	18,231,931
Creditors: amount falling	Creditors: amount falling7		(19,966)	-
due after more than one year
Total net assets			19,051,194	18,231,931
Funds:	9
Unrestricted			19,000,829	18,231,931
Designated Fund (Morocco Campaign)	Designated Fund (Morocco Campaign)		25,000	-
Restricted Fund	Restricted Fund		25,365	-
			19,051,194	18,231,931

Approved by the Trustees on 2 September 2025 and signed on their behalf:

Les Ward Trustee

The notes on pages 13 to 21 are an integral part of these accounts.

MARCHIG ANIMAL WELFARE TRUST

STATEMENT OF CASH FLOWS

For the year ended 31 December 2024

	Note		2024	2023
			£	£
Cash flows from operating activities
Net cash used in operating activities	8		(1,157,041)	(1,114,712)
Cash flows from investing activities
Dividends and interest received		528,348		458,555
Proceeds from sale of investments		7,200,925		5,424,825
Purchase of investments		(5,584,801)		(5,107,691)
Net cash provided by investing activities			2,144,472	775,689
Change in cash and cash equivalents in			987,431	(339,023)
the reporting period
Cash and cash equivalents at beginning			184,457	523,480
of reporting period
Cash and cash equivalents at end of	8		1,171,888	184,457
reporting period

The notes on pages 13 to 21 are an integral part of these accounts.

MARCHIG ANIMAL WELFARE TRUST

NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2024

1. Accounting policies

a) Basis of preparation

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to the accounts. The accounts have been prepared in accordance with the Charities Act 2011, the Charities and Trustees Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) 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 (FRS102) (effective 1 January 2019). The financial statements have been prepared in pound sterling.

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

The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. With respect to the next reporting period, 2025, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets (see the investment policy and performance and risk management sections of the Trustees’ annual report for more information).

b) Income recognition

All income is recognised once the charity has entitlement to the resource, it is probable that it will be received and the monetary value of the resource can be measured with sufficient reliability.

c) Expenditure recognition and irrecoverable VAT

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure.

Raising funds consist of investment management fees.
Charitable activities include grants awarded, direct charitable activities, Morocco campaign costs, overheads, and support costs, including governance costs.

Grants are regarded as commitments when the Trustees have approved a request for support that is payable over a financial year-end, have written to the beneficiary stating the amount and period over which grants will be made and the beneficiary has returned their Grant Acceptance Form. Where an award includes a condition outwith the charity’s control the grant is only recognised once that condition has been met. If, within the commitment period, a beneficiary ceases or materially adversely changes its charitable operations or fails to meet any funding condition the Trustees would have no hesitation in withdrawing their commitment.

Morocco campaign costs are costs associated with the campaign, in line with the charity’s objectives, of seeking to end the inhumane killing of large numbers of dogs in Morocco.

MARCHIG ANIMAL WELFARE TRUST

NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2024

1. Accounting policies (continued)

c) Expenditure recognition and irrecoverable VAT (continued)

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include governance costs which support Trust activities. These costs include the expenses of Trustee meetings, the statutory audit and legal and professional fees, and have been allocated to expenditure on charitable activities.

The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the 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 1.0%, the Trustees consider this to be appropriate.

d) Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value. Listed fixed asset investments are subsequently measured at their fair value as at the balance sheet date using the market value at the balance sheet date.

The statement of financial activities includes the gains and losses arising on revaluation and disposals throughout the year. All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (or purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and the opening market value (or purchase date if later). Exchange rate movements on investments held in foreign currencies are included in realised or unrealised gains or losses for the year.

Marchig Animal Welfare Trust does not directly acquire put options, derivatives or other complex financial instruments.

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

e) Foreign exchange

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

f) Financial instruments

Financial instruments comprise financial assets and financial liabilities which are recognised when the charity becomes a party to the contractual provisions of the instrument. They are classified as “basic” in accordance with FRS102 and are accounted for at the settlement amount due, which equates to the cost. Financial assets comprise investments and cash. Financial liabilities comprise accruals.

MARCHIG ANIMAL WELFARE TRUST

NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2024

1. Accounting policies (continued)

g) Critical judgements and estimates

In preparing these financial statements, the Trustees have made judgements and estimates that affect the reported amounts of income, expenditure, assets, and liabilities. The key area of estimation relates to the valuation of investments, which are held in managed portfolios and measured at fair value using market data provided by investment managers at the year end. These valuations are considered to reflect fair and reasonable estimates. As a grantgiving trust no other significant areas of judgement or estimation were identified in the preparation of these accounts.

h) Cash and Cash Equivalents

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening deposit or similar account.

i) Creditors

Short term creditors are measured at transaction price. Grant commitments are recognised as liability when the charity has a constructive or legal obligation to make a payment.

j) Funds

Funds held by the charity are either unrestricted, designated, or restricted. Unrestricted funds are available for use at the discretion of the Trustees. Designated funds are unrestricted earmarked for specific purposes. Restricted funds are subject to donor-imposed conditions and are used in accordance with those terms. All funds are accounted for separately.

2. Charitable grants

The following is a summary of grants paid by the Trust:

The following is a summary of grants paid by the Trust:
	2024	2023
	£	£
Tree Life for Animals	29,160	29,160
Sache Foundation	-	57,410
Blue Cross India	-	85,444
TEARS Animal Rescue	23,279	31,428
Worldwide Veterinary Service, UK	250,000	350,000
Save the Dogs and Other Animals	-	34,315
The Mayhew Home	23,606	-
Sea Shepherd Global	78,076	-
Friendicoes SECA	156,424	-
Other Grants (less than £20,000)	449,589	399,703
Total paid in year	1,010,134	987,460
Future commitments	339,884	510,963
Less prior year future commitments	(510,963)	(1,054,831)

839,055 443,592

MARCHIG ANIMAL WELFARE TRUST

NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2024

2. Charitable grants (continued)

During the year, 69 (2023: 65) grants were paid out totalling £1,010,134 (2023: £987,460), of which 17 (2023: 15) were for less than £5,000. There were 9 (2023: 2) future committed grants totalling £339,884 (2023: £510,963).

All grants in the current and previous year were paid to institutions with no amounts paid to individuals. Grants paid within the UK totalled £392,907 (2023: £454,572) with overseas grants totalling £617,227 (2023: £532,888).

3. Support costs

Support costs
Office and travel expenses Trustee remuneration Grant Administrator costs Bank charges Website support costs Legal fees Trustee meeting costs Governance costs: Auditors remuneration: - Audit fee Accounting and taxation services	2024 £ 2,733 40,744 22,101 1,392 157 1,050 802 9,900 3,000 81,879	2023 £ 2,583 41,764 21,574 1,622 756 4,651 929 9,000 2,620
		85,499

As the charity does not provide services directly but by the way of grants to other organisations, support and governance costs are not allocated against individual grants or donations. The Trust has no staff. Administration and support services are provided by Trustees on a voluntary basis and a third party on an agreement basis. Governance costs wholly consist of auditor’s remuneration. There are no support costs in the year in relation to the Morocco campaign.

4. Analysis of charitable expenditure

The charity undertakes its charitable activities through grant making and awarded grants to several charities and institutions in furtherance of its charitable activities.

Animal Welfare	Grants £ 839,055 839,055	Morocco campaign £ 22,249 22,249	Support costs £ 81,879 81,879	Total 2024 £ 943,183 943,183	Total 2023 £ 529,091 529,091

MARCHIG ANIMAL WELFARE TRUST

NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2024

5. Investments

Movement on fixed asset investments

Movement on fixed asset investments
		Total	Total
	2024	2024	2023
	£	£	£
Fair value brought forward		18,594,270	13,871,885
Additions to investments at cost	5,584,801		5,107,691
Disposals at proceeds	(7,200,925)		(5,424,825)
Realised gain/(loss) on investments	214,739		(121,936)
Unrealised gain on investments	1,068,420		764,131
Donation of investments	-		4,397,324
Net movement in the year		(332,965)	4,722,385
Fair value carried forward		18,261,305	18,594,270
Investments at fair value comprised:
		Total	Total
	Listed	2024	2023
	£	£	£
UK Investments	7,775,742	7,775,742	9,249,387
Outside the UK	10,485,563	10,485,563	9,344,883
	18,261,305	18,261,305	18,594,270
		Total	Total
	Listed	2024	2023
	£	£	£
Historic cost of investments	16,762,359	16,762,359	17,836,953

All investments are carried at fair value. The basis of fair value for quoted investments is equivalent to the market value, using bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The significance of the financial instruments to the ongoing financial sustainability of the Trust is considered in the financial review and investment policy and performance of the Trustees’ Report.

MARCHIG ANIMAL WELFARE TRUST

NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2024

5. Investments (continued)

The Trust has managed the investment risks by engaging expert advisors and operating an investment policy that provides a high degree of diversification of holdings within investment asset classes that are mainly quoted on a recognised stock exchange. The Trust does not make use of derivatives or other similar complex financial instruments.

6. Creditors: amounts falling due within one year

6.	Creditors: amounts falling due within one year
		2024	2023
		£	£
	Accruals	39,383	33,250
	Other Creditors	2,733	2,583
	Future grant commitments	319,917	510,963
		362,033	546,796
7.	Creditors: amounts falling due after one year
		2024	2023
		£	£
	Future grant commitments	19,966	-
		19,966	-
8.	Net cash (outflow)/inflow from activities	2024	2023
		£	£
	Net income/(expenditure) before revaluations
	and investment asset disposals	819,263	4,920,403
	Adjusted for:
	Investment income	(528,348)	(458,555)
	Unrealised (gain) on investment	(1,068,420)	(764,131)
	Realised (gain)/ loss on investment	(214,739)	121,936
	Movement in creditors	(164,797)	(537,041)
	Transfer of Investments	-	(4,397,324)
	Net cash (outflow) from operating activities	(1,157,041)	(1,114,712)

MARCHIG ANIMAL WELFARE TRUST

NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2024

8. Net cash (outflow)/inflow from activities (continued)

Analysis of changes in net funds:			At	1	Cash	flow		At 31
		January 2024			2024		December 2024
				£		£		£
Cash at bank			184,457		987,431		1,171,888
9. Movement of Funds
		At 1				Gain/(Loss)		At 31
		Jan					on	Dec
		2024	Income		Expenditure	Investment		2024
		£	£		£		£	£
Restricted Funds
Morocco		-	47,614		(22,249)		-	25,365
Total Restricted Funds		-	47,614		(22,249)		-	25,365
Unrestricted Funds
General Fund	18,231,931		503,348		(1,013,155)	1,278,705 19,000,829
Designated Fund		-	25,000		-		-	25,000
Total Unrestricted Funds	18,231,931		528,348		(1,013,155)	1,278,705 19,025,829
Total Funds	18,231,931		575,962		(1,035,404)	1,278,705 19,051,194

Purposes of Restricted Funds

The Morocco Fund supports efforts seeking to end the inhumane killing of large numbers of dogs in Morocco.

Purposes of Designated Funds

The Designated Fund is specifically for the Morocco Campaign. The funds have been committed by the Trustees to support all associated campaign costs.

MARCHIG ANIMAL WELFARE TRUST

NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2024

9. Movement of Funds (continued)

	At 1			Gain/(Loss)	At 31
	Jan			on	Dec
	2023	Income	Expenditure	Investment	2023
	£	£	£	£	£
Unrestricted Funds
General Fund	13,311,528	4,896,745	(610,761)	634,419	18,231,931
Total Unrestricted Funds	13,311,528	4,896,745	(610,761)	634,419	18,231,931
Total Funds	13,311,528	4,896,745	(610,761)	634,419	18,231,931

10. Analysis of net assets between funds

	Unrestricted	Restricted	Total
Fund balances at 31 December 2024 as	Funds	Funds	Funds
represented by:
	£	£	£
Current assets	1,146,523	25,365	1,171,888
Fixed assets	18,261,305	-	18,261,305
Creditors less than 1 year	(362,033)	-	(362,033)
Creditors greater than 1 year	(19,966)	-	(19,966)
	19,025,829	25,365	19,051,194
	Unrestricted	Restricted	Total
Fund balances at 31 December 2023 as	Funds	Funds	Funds
represented by:
	£	£	£
Current assets	184,457	-	184,457
Fixed assets	18,594,270	-	18,594,270
Creditors less than 1 year	(546,796)	-	(546,796)
Creditors greater than 1 year	-	-	-
	18,231,931	-	18,231,931

MARCHIG ANIMAL WELFARE TRUST

NOTES ON FINANCIAL STATEMENTS For the year ended 31 December 2024

11. Trustees Expenses

£3,535 (2023: £2,583) of expenses were paid to three (2023: 1) Trustees during the year for IT, travel and general meeting expenses. Fees for services of £40,744 (2023: £41,764) were paid to one (2023: 1) Trustee. At the year-end £2,733 (2023: £2,583) was due to the Trustees.

12. Related Parties

Trustee Les Ward is also a Trustee of the Foundation Marchig, a Swiss charity. During the year the Trust awarded grants totalling £366,845 (2023: £405,630) that were supported by grants awarded by Help Animals International before its closure and the Foundation Marchig.

The Trust engaged a grant administrator, Carrie Ward, daughter of Trustee Les Ward. The total fees for services in the year were £22,101 (2023: £21,574) with no amounts outstanding at the year end.

Trustee Luke Gamble is an employee of the Worldwide Veterinary Service UK, which received a grant of £250,000 (2023: £350,000) in the year.

No Trustee or other person related to the Trust had any personal interest in any contract or transaction entered into by the Trust during the year.

13. Contingent Liabilities

The charity has one grant of £10,000 which are contingent on the awardee fulfilling certain conditions. At the year end these conditions have not been met so this award has not been recognised as a liability in the accounts.

14. Taxation

As the charity is exempt under the terms of Section 505 of the Income and Corporation Taxes Act 1988, there is no tax charge.