Trustees’ Report & Financial Statements
Year Ended 31 December 2019 Contents
Foreword 3 Achievements & Performance 22
Strategy Review 6 Trustees’ Annual Report 31
About Us 7 Independent Auditor’s Report 39
Covid-19 Response 10 Statement of Financial Activities 41
Trustees 13 Balance Sheet 42
Where We Give 15 Cashflow Statement 43
What We Fund 16 Note to the Financial Statements 44
Charity Officeortfolio P 18 Special Thanks 51
Other Support 19 Chair of Trustees’ Foreword The Duke of Westminster
2019 was a significant year for the Westminster Since becoming Chair of Trustees, I have also Foundation. It marked the transition into made it a priority to work in partnership with an exciting new phase of our operations, others who care about the same things as we underpinned by a refreshed grant-making do. We know that we can’t tackle these issues strategy to provide long-term sustainable help alone and must look beyond the traditional and direction to vulnerable young lives. grant making model to include convening and knowledge-sharing as part of our work. We left 2019 and entered the new decade with a renewed sense of enthusiasm. However, The wonderful thing about funding in this I - like everyone else - have been shocked and way is while it may take longer to see the concerned by the speed with which Covid-19 effect of the work that we are doing, the has spread, causing chaos and devastation, and potential impact could be much greater. By derailing health and socio-economic norms as providing opportunities early in life, not only we knew them. The crisis has necessitated a will we hopefully avoid young people suffering quick response by the Foundation to play a role from problems such as mental ill-health and in supporting the most vulnerable members of homelessness, but also potentially reduce many our communities at this time of crisis. I am in other issues like violent crime and addiction. no doubt that our comprehensive planning in 2019 has enabled us to do so from a position of We have begun 2020 with a different view of the strength, rather than uncertainty. world as we knew it. Yet, the challenges facing young people and their development remain. While our new strategy allows us to act flexibly Thanks to the hard work undertaken by our and with immediacy when required, the dedicated team in 2019, I feel as passionate as Westminster Foundation is primarily a long-term, ever about giving young people the best possible place-based funder. The issues that young people start in life and look forward to seeing the long- face require this type of far-sighted approach. term impact of our work grow in the years ahead. They take care, compassion, resource and time, which is typical of our culture.
Westminster Foundation – Trustees’ Report and Financial Statement 2019 3 Director’s Foreword Kate Brown
As part of the Grosvenor Estate, the Westminster preventative outlook and providing support for Foundation represents the charitable interests children in the early years of their lives. Sadly, of the Duke of Westminster and Grosvenor for many there is not the guidance, care and businesses. We all share a desire to deliver long- consistent presence vital to face the challenges term value and impact. In our case, we do so and learn to negotiate the hazardous decisions by providing and facilitating early intervention that are presented to young people. support to children and young people up to the age of 25. As a result, making funds available to work in partnership with charities to provide a solid By inspiring children and young people early structure to young lives, families and the local in life with opportunities to shine, build their communities around them has become the confidence and raise their aspirations, we believe cornerstone of our work. that we can play an important role in preventing long-term problems from developing. That is how I would like to take this opportunity to thank our we interpret our purpose. partners whose valuable insight and experience helped guide us to this new position, and This new strategy, adopted in 2019, reflects appreciate the true impact of long-term, place- the desire of the 7th Duke of Westminster (who based funding. It has been a privilege to be part became Chair of the Foundation in January 2019) of this process and I am incredibly grateful for to ensure the work of the Foundation is meeting the openness and generosity with which you all a real need, using funds as impactfully as shared ideas. The organisations involved are too possible and reflecting his own areas of interest numerous to list here so we have included a list and priority. later in the report.
To inform the new strategy, the Duke of As a result, we are now dedicated to helping Westminster held a series of roundtable vulnerable young lives primarily in Westminster discussions with experts and charity leaders on and Cheshire, where the Grosvenor family has issues ranging from homelessness, mental-ill long associations. We also offer support to rural health and the impact of rural isolation. It became communities in Lancashire and Sutherland (North clear from participants that where there are inter- West Highlands, Scotland), where the Grosvenor generational cycles of disadvantage, they can Estate operates, and where we know it can be only truly be mitigated by taking a long-term isolating or harder to access services.
Westminster Foundation – Trustees’ Report and Financial Statement 2019 4 Despite working in different landscapes, a flavour of the exciting projects in which we’re Westminster and Cheshire face the involved, but please do let us know if there are same problems and pose similar ways you feel we could improve this in future. challenges. Westminster has the third highest We are always interested to hear from you. level of child poverty in the capital, with 33% of children living in poverty. While the average Finally, we are well aware of the destructive across Chester is much better at 16% there are impact that Covid-19 will have on the pockets of deprivation where the average is communities we support. I am pleased that we double that. have been able to react quickly and with great flexibility to support those most in need. Too In addition to reviewing what and where we fund, many young people already faced significant we have also pivoted our strategy around how we challenges in their lives, which have sadly been fund. We have moved away from predominantly made much worse by the Coronavirus crisis. If making many small, annual grants to streamlining anything, the pandemic has highlighted their our giving through larger, longer-term grants, vulnerability and the importance of working right which enable charities to have the certainty to through to the cause of an issue. plan their services and staffing.nder U our new strategy, we will form relationships with key It takes time, care and compassion. Thanks to the charities who we view as partners. We will back unwavering support from our Chair, Board of them as the experts to undertake their crucial Trustees and brilliant team, I am confident we are work every day and sit alongside them providing entering this new phase of our work with those the support they need. qualities in abundance. And we all look forward to doing everything we can to generate long Part of our new approach is also to be more term opportunities for young people right now open about our work. Hopefully you may have and long into the future. noticed that, through our new website and social media channels. This also represents our first full Annual Report & Accounts. I hope it gives you Strategy Review
In recent years, the Westminster Foundation’s operational activity focussed on the significant grants made in support of the Grosvenor family’s huge philanthropic commitment to the Defence and National Rehabilitation Centre (DNRC).
By the end of 2018, the Foundation had been re-endowed to £100m and the Trustees initiated a strategic review of its activities to coincide with the Duke of Westminster’s appointment as Chair of the Trustees. The review involved a comprehensive consultation process with other funders, policymakers and charity leaders. The Duke was keen for the Foundation to support charities that reflected his interests. His starting point was to explore opportunities in mental health, homelessness and the countryside.
As the review progressed, it became clear that the Foundation’s impact - as a long-term place based funder - would be most beneficial at an ‘early intervention’ stage, before the causes of homelessness, mental ill-health, rural isolation or similar deep-rooted issues take hold.
A long-term preventative outlook such as this - rather than short-term palliative support - is also more closely aligned to the Grosvenor Estate’s approach of applying our expertise with a far-sighted perspective. Therefore, from September 2019, the Foundation’s grant making has focused on inspiring children and young people early in life (aged 0-25) with opportunities to thrive, build confidence and raise aspirations. The Foundation is now dedicating its time to working closely with organisations who support families, schools and local communities.
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Westminster Foundation – Trustees’ Report and Financial Statements 2019 6 About Us
Westminster Foundation is an independent organisation that provides long-term sustainable help and direction to vulnerable young lives.
For some, there is not the guidance, care and consistent presence that is vital to face the challenges, or learn to negotiate, the decisions that are presented t o young people across every gender, faith, sexuality, ethnicity, and social circumstance. Neither are there the opportunities which many are fortunate enough to take for granted.
Mental health, welfare issues, abuse, or alcohol and substance misuse are issues that can affect any young person, anywhere.
Early intervention is critical to set the direction of a healthy, secure and fulfilling life.
We are passionately committed to working with organisations which give young people the attention, care and direction that we should all be able to take for granted.
There is often no quick fix. Guided yb experts, we work right through to the cause of the issues and support those who need help.
By doing that, we can generate opportunities, wellbeing, education, inspiration, trust and hopefully instil confidence that no child or young person is in this alone.
Better lives are built on solid foundations
Westminster Foundation – Trustees’ Report and Financial Statements 2019 7 Creating Opportunities
By inspiring children and young people early in life with opportunities to thrive, build confidence and raise aspirations, we believe that we can play a role in preventing long-term systemic problems in rural and urban communities.
Access to Nature
Role Models Sport
Aspirations Healthy Diet
Social Resilience Mobility
Secure & Wellbeing Safe Housing
4.1 million 1 in 8 35 children were living in poverty young people in the UK (aged children in the UK are in the UK (2017-18) 5-19) have a diagnosable excluded from school a day mental health issue ‘Child Poverty Action Group’ ‘Young Minds’ ‘Jamie’s Farm’
Westminster Foundation – Trustees’ Report and Financial Statements 2019 8 Sustainable Change
Creating opportunities in isolation does not create sustainable change. This is more likely to occur where the young person is supported by family, community and wider society. Our funding aims to create opportunities for families to foster relationships that allow a child’s aspiration and resilience to be sustained over time.
We support community organisations, schools, colleges, charities, and youth hubs as we believe they understand local needs and have the capacity to support their young people over time.
Our resources and convening power can encourage shared learning around early intervention, and helping where necessary to influence change ot foster a society in which young people can thrive.
Strong Supportive Influencing Families Communities Change
Westminster Foundation – Trustees’ Report and Financial Statements 2019 9 Covid-19 Response
Since the onset of Covid-19, subsequent to the year end, the Westminster Foundation has sought to help families and the most vulnerable in society manage the impact of the pandemic through a Covid-19 response fund of £12.5m.
The Duke, as Chair of Trustees, moved quickly in recognition of the significance of the virus, convening a leadership group from across the Grosvenor businesses and Westminster Foundation to determine how best to support our communities through these unprecedented times.
At the beginning of the crisis, £2.5m of funding was immediately made available by the Trustees to tackle the emerging pandemic. Our initial response was mainly directed to charities providing essential food distribution to vulnerable families struggling to feed their children who would normally receive free school meals, but were battling to adapt to the reality of school closures.
As far as possible we sought to address the crisis through the lens of our usual areas of focus - and therefore areas where we have the best understanding - with children and young people central to our thought process, and London, Chester, Lancashire, and Sutherland at the forefront of our minds.
These are a few examples of charities and projects supported:
Feeding Families The Foundation awarded a grant to the London Food Alliance – a partnership between London’s three largest food redistribution charities (City Harvest, FareShare and The Felix Project) - to provide an emergency response service for London during the Coronavirus crisis.
In Cheshire, the Foundation made funds available to the Blacon Action Team and their invaluable work to feed vulnerable families in the area of Blacon, Chester.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 10 Meeting Basic Needs The Westminster Foundation contributed to LandAid Covid-19 Emergency Fund to raise £1m to support young homeless people in crisis. The fund will enable charities in the UK to provide vital support and meet the needs of young homeless people through this crisis, from basic necessities to emergency support: food, a safe space to isolate or recuperate, money to pay bills, and crucial mental health support.
A grant was also made to Turn2Us to provide as many people as possible affected by the pandemic with crisis grants and financial advice.
Protecting Mental Health The Mix is the UK’s only wholly digital support service for young people. The charity saw a significant rise in demand for its services as schools, youth clubs and community mental health services closed in response to the pandemic.
The Westminster Foundation awarded a grant to support the immediate upscaling of The Mix’s online services - helpline, counselling and community forums alongside increased volunteer recruitment to meet the demand created during the Coronavirus crisis.
Providing Access to Resources With the risk of young people without access to the internet or digital technology becoming further isolated as support services move online, the Foundation made a number of grants investing in digital access for young people. A donation to the Prince’s Trust Young People Relief Fund, enabled the charity to provide young people in rural communities with access to the digital world.
In Westminster the Foundation partnered with the Young Westminster Foundation to provide laptops mainly for children attending Beachcroft Academy, the local pupil referral unit for children excluded from main-stream provision. Before this grant one third of their pupils were unable to access online learning activities; these are amongst the most vulnerable families in Westminster.
“The responsive action and considerable generosity shown by the Westminster Foundation has been invaluable. As a result, we have now been able to extend our offer of food parcels to 700 vulnerable families per week and can deliver this project for the next 6 months.”
The Blacon Action Team
Westminster Foundation – Trustees’ Report and Financial Statements 2019 11 In addition to making grants to charities and community groups directly, the Foundation also committed £500,000 to the London Funders Covid-19 Emergency Collaboration, allowing us to select applications that were most relevant to children and young people. In Chester we adopted a similar approach, matching Cheshire West and Chester Council funding of £250,000 to make an overall crisis fund of £500,000. Through these groups, our funding helped feed vulnerable children and young people, and keep them entertained outside of school – hopefully minimising the potentially detrimental impacts of not being in school – through the provision of activity packs, books, tech equipment and and mental health digital platforms.
As soon as it became apparent that the national impact of Covid-19 would be long lasting, The Duke made an additional donation of £10m (including gift aid) to the Foundation, bringing the total Covid-19 response fund to £12.5m. His intention was to support initiatives that would help vulnerable individuals or families who may struggle with the long-term impact of the pandemic, as well as contributing to the national ‘rebuild’ effort.
The Foundation donated £5m to NHS Charities Together to create a ‘Family Fund’ that provides food, respite, rehabilitation and positive mental health support to NHS staff and their families. A £1m grant also went to Oxford University’s Covid-19 mental health research programme, which is addressing a broad range of mental health issues arising from the pandemic. The effects on the mental wellbeing of children is of particular concern to the Duke and Westminster Foundation, given the negative impact that can result from the disconnection from the daily companionship of friends, or the personal support provided by schools, health services and youth clubs.
“We are enormously grateful for this generous gift which will enable us to scale up our research projects, especially into how Covid-19 is affecting young people’s mental health. The pace of development means that funding them has been a challenge, and this donation is critically important.”
Oxford University
The remainder of the donation (£4m) will be allocated to additional national medical research and development, and to charities or organisations providing frontline support to people who will feel the greatest long-term economic and social impact of the epidemic and may need access to employment, education and mentalSubtitle health services or in the pullout coming months. quote text size
Westminster Foundation – Trustees’ Report and Financial Statement 2019 12 Trustees
The Duke of Westminster Chair of Trustees
The Westminster Foundation is led by The Duke of Westminster. Born in 1991, his outlook provides an empathy and understanding of the issues which threaten young lives.
He became Chair of the Westminster Foundation Trustees in January 2019 and he uses his position to contribute, in real and direct action, to a better society.
James Hanbury Mark Preston
James joined Odey Asset Management in Mark Preston is the Executive Trustee October 2008. From 2006-2008 James was a of the Grosvenor Estate with overall responsibility partner and fund manager at ZA Capital, an for the Grosvenor family’s business interests. equity hedge fund. From 2003-06 James was an He also holds the position of Chief Executive of equity analyst at Schroders covering the retail Grosvenor Group to which he was appointed in and leisure sectors. 2008.
Victoria Hornby
Victoria joined the board of Trustees in May 2020. She has worked in the charitable sector for 25 years, both in foundations and operational charities. Victoria is currently CEO for Mental Health Innovations (MHI) which was a product of The Royal Foundation’s Heads Together campaign, a position she has held since 2017. Alongside that, Victoria is also an adviser for The Charles Dunstone Charitable Trust where she has worked since 2006.
Westminster Foundation – Trustees’ Report and Financial Statement 2019 13 The Country Trust
The Challenge The Country Trust realised that with a million children experiencing disadvantage in England it needed to make a step change and bring food, farming and the countryside alive for significantly more children. However, the charity’s structure was so lean there was no capacity to think or act differently, or to plan for anything other than the short term.
“We are seeing an increase in the number of children growing up in, or moving to, urban areas so it is vital that we don’t lose the connection between urban and rural life and the understanding of natural foods, wildlife and the countryside” Duke of Westminster
The Solution Initially with a multi-year commitment from the Westminster Foundation, the Country Trust was able to put in place a small, central office team to support the CEO and start the transformation. The senior leadership team ensure the programmes reach more children and deliver even better experiences with sustained impact.
“At a critical time for agriculture, we are now starting to get involved in policy, working to ensure farmers can continue to welcome children on to their farms” Jill Attenborough - Country Trust, CEO
The Results The Westminster Foundation’s support has transformed the Country Trust, creating a sense of momentum and excitement amongst the workforce, supporters and other funders. The Country Trust were able to focus on the accessibility, quality, consistency, relevance, and impact of their programmes and activities for disadvantaged children across England and North Wales. They are now increasing their capacity to deliver these programmes, including working with parents to enable whole families to move onto a new trajectory.
19,528 1,500 924
explored real working farms taught to grow and cook joined a Country Trust Residential
Westminster Foundation – Trustees’ Report and Financial Statement 2019 14 Where We Give
Our purpose is to inspire children, young people and their families with opportunities to thrive. We are dedicated to providing solid structure to young lives primarily in Chester Westminster and Cheshire, where Westminster Chester has been home to the Grosvenor family has long The Grosvenor family’s the Grosvenor family since associations. association with London the 1400s, specifically the property began over 300 Eaton Estate located on Our giving focuses on these regions years ago through the the outskirts of the city. because we know and belong to development of Mayfair The Estate manages and the communities at the heart of in the 1720s and Belgravia works to improve a range them. Despite working in different a hundred years later. of agricultural, residential landscapes, the two areas face the Today, the Grosvenor name and commercial properties same problems and pose similar represents one of the with tailored tenancies in challenges. We focus on the vulnerable world’s largest privately- rural Cheshire and the city young lives, and families, that require owned international of Chester. opportunities, support and direction. property companies, headquartered in We also offer support to rural Westminster. communities in Lancashire and Sutherland, where the Grosvenor Estate operates, and where we know it can be isolating or harder to access services.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 15 What We Fund
The Westminster Foundation works with local organisations which create opportunities for young people up to the age of 25, so that they and their families have the resilience, skills and capacity to lead happy and healthy lives. Our priority is to award grants that benefit young people facing deprivation or intergenerational inequality.
Charities registered with the Charity Commission or organisations with exclusively charitable objectives
Community organisations (e.g. schools, colleges and youth hubs) who understand the local need and have the capacity to support their young people over time
Charities based in Westminster, Chester, rural Cheshire, rural Lancashire or rural Sutherland
Initiatives making early positive interventional change
Small Grants Partnership Grants
One-off applications of up to and including Proposals are invited by the Trustees for more £10,000. Applications are made via an online substantial grants from a number of other application, and reviewed by a Small Grants causes in line with the Foundation’s funding Panel that meets approximately every ten criteria. weeks.
Westminster Foundation – Trustees’ Report and Financial Statement 2019 16 Passion for Learning
The Challenge Children thrive on new experiences enabling them to understand their world, enjoy the wealth of opportunities around them and grow as both learners and ultimately engaged citizens. Unfortunately, not all children have the experiences and opportunities that enable them to fulfil their op tential and lead healthy and productive lives.
“We knew what we wanted to do but without Westminster Foundation it would never have got off the ground” Diane Clark - Passion for Learning, CEO
The Solution Enrichment Clubs provide children with trips, visitors, activities, workshops, games, sports, and a wealth of other experiences which are the highlight of their week and a chance for children to make their own choices, feel empowered and become fully engaged citizens of the future.
“The Enrichment Clubs have transformed lives and as numbers have grown the Westminster Foundation has been with us all the way” Diane Clark - Passion for Learning, CEO
The Results The Enrichment Clubs transform children’s lives, increasing children’s confidence and self-esteem and empowering them to see themselves as ambitious members of the community with a bright future to look forward to. The clubs foster friendships with new adults and children and the chance to learn through play in safe and happy environments that can improve children’s health and well-being giving them the best chance of an exciting and fulfilling future.
200 391 98% attend enrichment clubs every week taken on enrichment trips showed significant increases in learning
Westminster Foundation – Trustees’ Report and Financial Statement 2019 17 Charity Office Portfolio
The Foundation also supports around 20 charities which collectively occupy approximately 20,000 sq. ft. of office buildings in central London, mostly around London Victoria Station, that together comprise the Grosvenor Estate’s charity office portfolio. These charities occupy the officest a the discretion of the Foundation’s Trustees, and receive a rent reimbursement grant from the Foundation, as contribution to their rent.
Future Men is currently one of these charities operating from subsidised office space. Being a partf o the charity office portfolio allows the Future Men staff to make use of affordable office space in the heart of the borough of Westminster, where they operate.
Future Men Future Men was one of the first charities to be awarded a Partnership Grant under the new strategy. Future Men is a multi-award-winning specialist charity that supports boys and men along the path to becoming dynamic “future men”. Through its practice-led services it encourages boys and men to explore, celebrate and build on the seven characteristics that the charity believes contribute to positive masculinity. These characteristics are resilience, inclusiveness, reflectiveness, empathy, resourcefulness, curiosity and non-violence. Through a front line delivery of practice-led services, Future Men works with boys and men to help them become dynamic and healthy future men. From structured school programmes and youth hubs to individual one-to-one sessions and outreach work, they provide the vital support and advocacy that changes boy’s and men’s lives for the better. The Duke of Westminster visited Future Men at the end of 2019, to witness first-hand the vital work that they do and to speak to some of the young men benefiting from their services.
“Navigating the transition into young adulthood is challenging at the best of times, but the pressures are much greater for those without guidance or a consistent presence in their lives. We need organisations like Future Men to give young boys and men the confidence to ignore stereotypes and embrace what it means to play a positive role in their families or communities.”
The Duke of Westminster
Westminster Foundation – Trustees’ Report and Financial Statement 2019 18 Other Support
The Foundation is continually looking for ways in which it can exert greater beneficial impact with its resources.
Meeting and Event Space The Foundation team is also involved in coordinating the use of meeting and event space which is made available from time to time for charitable fundraising purposes, in the Grosvenor Office in London, as well as, the Long Room and Courtyard area at Eaton Park, on the Eaton Estate in Chester. In addition, the team is involved in the planning and organisation of the Eaton Hall Charity Garden Open Days which are held four times a year. The proceeds from all such events directly benefit the charity hosting the event, with the proceeds from the open days being shared equally by four local charities.
Staff Match Funding Through a Staff Match Funding Scheme, the Grosvenor Estate encourages members of staff to get involved in the voluntary sector and to help fundraise through personal participation in events to sup- port charities throughout the UK. Although the Foundation has particular eligibility criteria for its own grant making, it supports employees’ efforts for na y UK registered charity. The total donated in this way in 2019 was £21,380 (2018: £30,633).
Philanthropy Committee Each regional Operating Company within the Grosvenor Group has its own staff Philanthropy Committee which puts forward grant recommendations to the Trustees for their consideration at the foundation meetings (with the exception of Grosvenor Americas who in 2019 made local grants from each office).
Westminster Foundation – Trustees’ Report and Financial Statements 2019 19 Positive View Foundation
The Challenge Disadvantaged 16-25 year olds living on Westminster’s estates are more likely to drop out of school in their early teens; becoming involved with their local gang culture; and suffering from mental health problems. As a result, they lack the life skills needed to move forward positively into a safe and independently successful life.
“With the support of the Westminster Foundation we were able to create positive futures for those young people with mental health issues” Andrew Page - Positive View, CEO
The Solution The Positive View Foundation transforms the lives of these disadvantaged young people in Westminster by delivering a highly innovative 10-week ‘Youth Empowerment Programme’ that uses photography and film to build self-confidence, self-esteem, mental well-being, leadership, creativity, and positive community cohesion. All projects are tutored philanthropically by world famous photographers free of charge.
“With the support of Westminster Foundation we have been able to launch our programme to youth organisations across the borough” Andrew Page - Positive View, CEO
The Results The Westminster Foundation commissioned a number of our young graduates to photographically document projects they are supporting across Westminster and Chester. A curated selection is featured on the Westminster Foundation website. The young people that participated were able to experience genuine working environments in parts of the country that were totally new to them. 120 6 6
young people benefitted organisations referred participants young people were commissioned
Westminster Foundation – Trustees’ Report and Financial Statement 2019 20 Overseas Grants
All grants made outside the UK are to organisations registered as charities in the relevant jurisdictions and made in support of activities that are charitable under UK law. Grant recommendations are made by the Grosvenor Operating Companies which are then considered for suppport by the Westminster Foundation Trustees. It is not possible to apply directly for overseas funding to the Foundation.
Grosvenor Asia Grosvenor Europe Grosvenor Holding Company
Caritas, Hong Kong Cáritas Diocescana de Madrid Bear Cottage Sydney HK$650,000 (£67,835) €45,800 (£38,756) AU$70,000 (£40,027)
Family House HK$ Fondation d’Auteuil B.O.L.T Charitable Foundation 387,000 (£37,940) €16,700 (£14,132) CAD$60,000 (£37,806)
Impact Hong Kong Foundation Habitat et Humanisme HK$716,000 (£70,193) €25,000 (£21,155)
Light Be Foundation Mitt 127 HK$500,000 (£49,018) €45,800 (£38,756)
Mirai no Mori Norte Joven JPY 8,400,000 (£62,590) €20,410 (£18,377)
Wonder Art Production Solidarities Nouvelles pour le HK$200,000 (£19,607) Logement €15,000 (£12,693)
Vagen Ut €9,350 (£7,912)
Vasby Tjejjour €13,550 (£11,466)
Westminster Foundation – Trustees’ Report and Financial Statements 2019 21 Achievements & Performance
During 2019 the Westminster Foundation committed £2.1m in grants: £2,108,968 141 £14,957 Total Value No. of Grants Average Grant Size
During 2018 the Westminster Foundation committed £2.7m in grants:
£2,664,419 160 £16,653 Total Value No. of Grants Average Grant Size
All grants made during 2019 with a value over £20,000 are listed overleaf. These grants were made in line with our funding guidelines, predominantly in the UK but also overseas when nominated by Grosvenor Group and its overseas Operating Companies and approved by the Westminster Foundation Trustees. £1,483,108 £625,860 Grants over £20,000 Grants up to £20,000
Westminster Foundation – Trustees’ Report and Financial Statement 2019 22 Partnership Grants
Partnership Grants are typically committed over a period of five years. The following Partnership Grant payments were made in 2019.
Organisation Grant Amount Purpose of Grant
Future Men £50,000 Funding to further develop the charity's services for young people in Westminster and for the core costs of the charity to improve monitoring and evaluation, staff training and development, and communications.
Healthbox CIC £99,200 Funding towards the core costs of services and mental health support for children and families in Chester.
Platform for Life £99,700 Core costs towards free local counselling and play therapy for families in Chester who would otherwise not be able to afford it.
The Country Trust £160,000 Core costs towards the Country Trust’s mission to bring food, farming and the countryside alive for disadvantaged children, through farm visits and education.
Westminster Children’s £84,250 Core costs towards the Children’s University University and its expansion across Westminster Schools. The organisation supports resilience and positive mental health in young people through extracurricular activities.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 23 Major Grants
Major Grants awarded prior to the strategic review focused on supporting communities in need.
Organisation Grant Amount Purpose of Grant
Chester West Voluntary £20,009 Delivery of a programme of digital Action support training for small charities in Cheshire West and Chester.
Contact £29,648 Delivery of wellbeing courses and activities to families of disabled children in Cheshire West and Cheshire.
Depaul Trust £30,000 The salary of a mental health and wellbeing manager and the core costs of Nightstop UK, providing emergency accommodation for young people.
Doorstep Library Network £35,361 Core costs of the charity that recruits and trains volunteers to go into some of the most disadvantaged areas in London to help introduce children to reading.
Groundswell £30,000 Core costs of the charity which gives people experiencing homelessness influence on homeless services.
Land Aid Charitable Trust £26,900 Core costs of the organisation, which helps young and disadvantaged people access opportunities to achieve their potential and thrive.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 24 Organisation Grant Amount Purpose of Grant
Samaritans Central London £30,000 Towards outreach work with deprived schools in Westminster to raise awareness of emotional health and wellbeing, providing practical skills to help young people care for their emotional wellbeing.
The Country Trust £35,000 Core costs towards the Country Trust’s mission to bring food, farming and the countryside alive for disadvantaged children, through farm visits and education.
The Port Grocery CIC £39,494 Contribution towards the organisation's free community lunch. The Food Club offers the community an opportunity to help themselves combat food and fuel poverty and not become dependent on foodbanks.
Youth Federation £41,082 Contribution to the Back on Track Project, providing one-to-one intensive support for vulnerable young people to improve confidence and resilience.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 25 Small Grants
Small Grant applications are open to one-off grant up to £10,000. In special circumstances the Small Grant Panel have awarded additional, multi-year support up to £20,000 per annum.
Organisation Grant Amount Purpose of Grant
Blacon Community Centre £20,000 Funding towards the core costs of the Blacon Community Store, providing the local community with access to affordable food.
Cheshire Community £20,000 Funding to address a shortage of donors Foundation in Cheshire West and Chester which can be distributed to charities and community organisations.
Cheshire Young Carers £20,000 Contribution to the salary of an Education Officer responsible for working with teachers and schools on specific strategies to support young carers in education.
Positive View £20,000 Funding towards a photography commissioning exercise and the charity’s Community Empowerment Programme using photography to build confidence in young people.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 26 Charity Offices
The Charity Office Portfolio supports around 20 charities . During 2019 donations to the following organisations were agreed. Rent reimbursements are over a three year period unless stated otherwise.
Organisation Grant Amount Purpose of Grant
Redthread Youth £64,664 Contribution towards the annual cost of renting office space in central London. Redthread is a youth work charity that focuses on the holistic wellbeing of young people through a range of activities and interventions.
The Childhood Trust £63,724 Contribution towards the annual cost of renting office space in central London. The Childhood Trust funds grass roots charities and their projects to alleviate the impact of child poverty in London.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 27 Overseas Grants
Overseas Grants are only awarded where nominated by Grosvenor overseas Operating Companies and approved by the Westminster Foundation Trustees.
Organisation Grant Amount Purpose of Grant
Bear Cottage Sydney £40,027 To enable the qualities that keep Bear Sydney, Australia Cottage Children’s Hospice operating like a normal home; funding ongoing maintenance, utilities and groceries to ensure the families receive the best possible care in a home like environment.
B.O.L.T Charitable £37,806 Funding towards ‘Hammer Heads’ - a 12- Foundation week full time training course offered to Toronto, Canada underprivileged youths. BOLT then utilises its partnerships to provide graduates an apprenticeship job.
Caritas Madrid £38,756 The refurbishment of a residential Madrid, Spain building managed by Caritas in Madrid metropolitan area. These residential buildings are dedicated to people with low resources and who need to regain stability before they can access housing outside the association.
Caritas Hong Kong £67,835 Towards the Neighbourhood Hong Kong, China Kitchen and extending the use of the space to run support groups to improve mental and emotional health, as well as to offer after-school child care and a food delivery service for members who can’t make it to the Kitchen.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 28 Organisation Grant Amount Purpose of Grant
Family House £37,940 Family House provides accommodation Tokyo, Japan to children suffering from serious illnesses and their families. They manage houses across Tokyo that are in proximity to hospitals. The units are intended for families and their terminally ill children to stay in so they can take care of them and enjoy spending time together.
Habitat et Humanisme £21,155 Habitat et Humanisme is an association Paris, France founded in 1985 which develops social housing schemes in Ile de France with the help of their own Property Company, state subsidies and regional aid. This donation was allocated to the refurbishment of a building comprising of social housing in Paris.
Impact Hong Kong £70,193 Impact HK’s goal is to provide the Foundation homeless with a connection to friends, Hong Kong, China society and a safe and comfortable home. Funding was used to set up a second Guestroom in Yau Ma Tei.
Light Be Foundation £49,018 Funding was used to conduct Hong Kong, China small improvement works on Light Homes to improve the home life of tenants; host regular outings for single mothers and children to expand their social circles, meeting other Light Home families and explore Hong Kong; and create a tenant development team.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 29 Organisation Grant Amount Purpose of Grant
Mirai no Mori £62,590 Leader in Training programme: Tokyo, Japan The Leader in Training (LIT) program is a one-year program, specifically designed for high school students to acquire the knowledge and skills, as well as the confidence, equiredr to be successful after they leave their care homes. This monthly program provides them with a hands-on experience of being a leader in an outdoor environment with a multi- cultural element, as well as leading their own one-year long project.
Mitt 127 £38,756 Mitt127 works primarily with young Stockholm, Sweden people between 5-20 years old, using a long-term approach in order to make Stockholm a safe place to move to and grow up in. Mitt127 works within schools and with local authorities, co-operations and institutions to counteract bullying and to provide assistance for those suffering from physical and psychological illness.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 30 Trustees’ Annual Report
Westminster Foundation – Trustees’ Report and Financial Statement 2019 31 Legal and Administrative Information
Name, Principal Office and Charity Registration Number The full name of the charity is the Westminster Foundation and its principal operating address is 70 Grosvenor Street, London, W1K 3JP.
The Foundation is registered with the Charity Commission (No: 267618) and full details of our current activities are available at: www.westminsterfoundation.org.uk
Trustees Auditor The Trustees serving during the year were: Deloitte LLP Mr J R Hanbury Statutory Auditor Ms V J Hornby - appointed 28 May 2020 1 New Street Square Mr M R Preston London EC4A 3HQ Mrs J F Sandars - retired 28 February 2019 The Duke of Westminster – Chair Solicitors Boodle Hatfield No Trustee had any interests in the charity. 240 Blackfriars Road London SE1 8NW Director Ms K E Brown Bankers The Royal Bank of Scotland plc Manager Commercial & Private Banking Ms R K Nagra 250 Bishopsgate London EC2M 4AA
Investment Manager CCLA Investment Management Limited 85 Queen Victoria Street Senator House London EC4V 4ET
Westminster Foundation – Trustees’ Report and Financial Statement 2019 32 Organisation Structure, Governance & The Foundation’s Trustees meet regularly Management to consider what grants they will make, any feedback they have received from the charities Constitution they support, the current and future financial The Westminster Foundation is a charitable trust position of the foundation, risk and longer-term representing the philanthropic activities of the strategy. The usual grant application process is Duke of Westminster and the Grosvenor Estate. conducted online but the Trustees occasionally make discretionary grants to known and well The Fifth Duke of Westminster created the researched charities. The Trustees held four foundation by a trust deed dated 6 February formal meetings in 2019. 1974, and on 6 April 1987, the Trustees of the Gerald Grosvenor Foundation (a separate charity The Foundation has a Small Grants Panel, which formed by the Fourth Duke of Westminster) meets approximately every ten weeks to review transferred all their assets to The Westminster applications up to £10,000. The Trustees have Foundation. delegated responsibility for decision making on appeals of up to £20,000 to this panel which is The Foundation receives regular donations from comprised of the director and a small team of Grosvenor Group Limited and its Operating suitably qualified individuals employed by the Companies, and, on occasion, from members of Grosvenor Family Office; such decisions ear made the Grosvenor Family. Grosvenor Group Limited within the Trustees’ governance framework and is an international property development and funding themes. These decisions are then ratified investment group, largely owned by trusts for at the next Trustee Meeting. the benefit of current and future members of the Grosvenor Family, which is headed by the Duke of The Foundation’s investment strategy, asset Westminster. allocation and distribution policy are reviewed each year by the Trustees. Method of Election of Trustees Under the terms of the trust deed, the incumbent The Foundation’s team makes every effort Duke of Westminster (being the 7th Duke of to follow best practice in the charity sector Westminster) has the authority to appoint new with reference to guidance from the Charity Trustees but guidance from the Westminster Commission and other sector bodies and is Foundation’s senior management team and the a member of the Association of Charitable support of the Foundation’s existing Trustees Foundations (ACF). The ACF is a UK wide is sought prior to any appointment. There is no support organisation for grant making trusts formal term of office for Trustees. and foundations. It provides guidance on good practice, changes in charity law and regulations The induction process for any new Trustee and acts as an authoritative lobby on behalf of comprises a series of briefing meetings with its members with the Government and Charity the current Trustees, Director and Manager Commission. The Foundation also has regard to covering the grant making process, investments, the seven principles of good governance and risk analysis, governance and the Trustees’ best practice which are set out in the Charity legal obligations under charity law. In addition, Governance Code. a comprehensive Trustee information pack is provided. Key Management Personnel The Trustees are responsible for the strategy and The number of Trustees shall not be fewer than direction of the charity. All Trustees give their two but no more than seven. time freely and no Trustee remuneration or expenses were paid in the year.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 33 Day-to-day responsibility for the running of The Trustees continue to keep processes under the Foundation is delegated to a small team of review. suitably qualified individuals employed by the Grosvenor Family Office.The Foundation does Objects, Aims and not employ any staff directly. Activities for The Grosvenor Family Office has historically the Public Benefit charged a modest management fee for those responsible for the day to day administration of Objects the charity and the office space occupiedy b the The assets of the Foundation are held in trust for team. For 2019 onwards (following the charities’ such exclusively charitable objects as the Trustees increased endowment), 12% of the annual shall, in their absolute discretion, determine. distribution target is to be charged, that level The Trustees can accept additional monies or being consistent with the fee charged by many assets to hold in trust for such particular object community foundations for running a grants or objects as the donor of such assets specifies in programme on behalf of its clients. writing at the time and with which the Trustees agree. Risk management The major potential risks to which the Foundation Aims is exposed, as identified yb the Trustees, have The charity operates for the public benefit been reviewed and procedures have been primarily as a grant making foundation that aims established to mitigate those risks. Risks have principally to address social welfare issues. It been categorised into low, medium and high concentrates mainly on certain geographic areas risk. A full risk assessment is conducted by the of the UK that are of relevance to the Grosvenor team and reviewed by the Trustees annually; family or its business interests. Internationally, financial management is given careful attention the Foundation supports charities in Continental and reviewed at each Trustee meeting. The Europe and Asia Pacific as nominated by the local Foundation looks both to Charity Commission Grosvenor offices. guidance and the Grosvenor Estate for best practice in this area. Support is given mainly by grants to UK registered charities that serve UK beneficiaries. The key risks that have been identified and On occasion, the Foundation may support which are carefully monitored are: (i) poor organisations that are exempt or excepted from performance of the investment portfolio leading registration with the Charity Commission, or to a material financial loss fo one of our main projects where the grant is for an exclusively sources of funding; this has been mitigated charitable purpose (as a matter of the law of by diversification of investments and frequent England and Wales). The Foundation does not performance monitoring; (ii) insolvency of fund individuals, holiday charities, medical recipient charities; this is mitigated by careful research, animal welfare charities and overtly scrutiny of structure, governance, annual political projects; details of the current funding accounts and, where appropriate, by conducting programmes and eligibility guidelines are given visits, and (iii) risk of fraud or failure of internal on the website. financial controls and these are mitigated by carefully controlled levels of delegation and Grant Making Policy shared authorisation procedures. The Trustees As reported in previous Trustee Reports, an review and approve the annual budget and exceptional grant of £40m in support of the updates are provided at each meeting. Defence and National Rehabilitation Centre (DNRC) paid in 2015 and 2016 and funded by realising the majority of the investment portfolio, resulted in a reduction in giving to other causes
Westminster Foundation – Trustees’ Report and Financial Statements 2019 34 in 2017 and 2018. The Major Grants programme has therefore been closed to unsolicited appeals. Statement on public benefit The Foundation undertook a strategic review in 2019. The strategy was presented at the The Trustees have paid due regard to the September 2019 meeting and approved. The new guidance produced by the Charity Commission strategy will support young people and families. when reviewing the foundation’s aims and objectives, and are satisfied that the charitable Budgets are agreed by the Trustees at the start of activities and projects funded through its grant each year. making programmes and other activities are of direct benefit to the public. Whilst it is not the Grant making programmes in 2019 Trustees’ responsibility to supervise the delivery The Trustees’ grant making policies are reviewed of public benefit by the charities which the annually and changes are published on the foundation supports, they do consider this when Westminster Foundation’s website. During 2019 reviewing funding applications and by the Westminster Foundation operated within two monitoring funded projects through a process of themes of grant making. visits and reports, as well as informal referencing via our networks of other funders. The public Supporting Communities: Targets issues of benefit created by the foundation’s grant making isolation and loneliness, in both rural and urban is demonstrated in this report via the examples of contexts, and contributes to improved community grants that have been made. cohesion within defined geographic focus areas. The Supporting Communities Programme included tackling isolation, youth homelessness Financial Review and strengthening local voluntary organisations. Total income for the year of £4.5m was £40.5m lower than the previous year (2018: £45.0m). The Following approval of the new strategy in decrease is due to significant inflows in 2018 September grants were made under the new comprising a donation of £16.9m from the Duke theme of Young People and Families. of Westminster, gift aid reclaimed of £4.2m and a £20.0m legacy bequest from the late 6th Duke of Young People and Families: By inspiring children Westminster. Donations received from Grosvenor and young people (0-25) early in life with Group Limited totalling £2.5m were comparable opportunities to thrive, building confidence and with the prior year (£2.6m). raising aspiration (through role models and by helping schools, families and communities to Income from investments increased by £0.7m to support them), the foundation aims to play a role £1.9m (2018: £1.2m), reflecting a full year of in preventing long-term systemic problems in investment income from the increased rural and urban communities. endowment which was invested part way through 2018. The Trustees also provided support to a small number of charities outside these main themes The main component of charitable activities - via a Discretionary Programme. grant making, decreased by £0.6m to £2.1m (2018: £2.7m), due to the development of the new strategy referred to above.
Investment policy and performance The Trustees have wide investment powers and the investment policies adopted are intended to provide long-term stability and liquidity sufficient
Westminster Foundation – Trustees’ Report and Financial Statements 2019 35 for the financing fo the Foundation’s ongoing As noted above, the Trustees aim is to distribute grant making and to maintain the real value of the 3.5% of the investment portfolio each year portfolio. averaged over a rolling five year period, and in addition the annual donation from The overall investment objective is to seek total Grosvenor Group Limited. By using an averaging return on an inflation-adjusted basis of at least methodology, the annual level of distributions is 3.5% per annum over the long term, to align with not hugely distorted by fluctuations in both the the aim of distributing 3.5% of the value of the stock market and from the impact of significant investment portfolio per annum (using a five year investment or disinvestment from the portfolio. If average to smooth out annual fluctuations). This necessary, the investments held can be realised target is kept under regular review. at relatively short notice.
At the start of the year, the investment portfolio At the balance sheet date, the Trustees are was held jointly: firstly, in a collective investment satisfiedthat the current level of available funds scheme administered by Carvetian Capital meets the foundation’s requirements. Management Limited and secondly in CCLA’s Unrestricted funds at 31 December 2019 were Charities Investment Fund (“COIF”). CCLA was £110.7m (2018: £95.1m). appointed as manager in November 2018 and the Trustees agreed to transfer all of the portfolio into the COIF, having reviewed comparative Plans for future periods performance after a year, and also considering The increased endowment has resulted in a the foundation’s requirements. The COIF aims huge opportunity for the Foundation to be able to protect both present and future beneficiaries to make a more significant and enduring impact from the effects of inflation (by means of a in the future. The strategic review conducted progressive distribution policy), and therefore is throughout 2019 has identified early intervention consistent with the Foundation’s own objectives. as a focus for the Foundation’s resources to be used efficiently and effectively. The foundation’s Responsible investment is taken into account primary giving in 2020 will focus on young people in the Foundation’s investment strategy. We and families. Grant making guidelines will be work with our fund managers to take into published online later in the year, following a consideration environmental, social and website update. governance issues when investment decisions are made and these factors were important in the decision to appoint CCLA as investment manager Going concern in 2018. The Trustees believe that the foundation will The market value of the Foundation’s investments be able to maintain positive cash flows for at at the end of 2019 was £110.1m (2018: £94.6m), an least 12 months from the date of signing of the increase of £15.5m (16.4%) versus a benchmark of accounts. In addition, the investment portfolio is 4.8% (CPI+3.5%). held in relatively liquid investments which may be realised to provide additional funds should they The Trustees review the performance of the be required, and the charity maintains sufficient portfolio at each Trustee meeting, and during reserves to meet ongoing commitments. As a 2020 will continue to review asset allocation with result, the going concern basis of accounting their managers. remains appropriate.
Reserves policy The Foundation’s funds are all unrestricted and may be used in furtherance of its charitable objects.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 36 Statement of disclosure to the Auditor
As far as the Trustees are aware: − There is no relevant audit information of which the charity’s auditor is unaware; and − The Trustees have taken all the steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.
Deloitte LLP have indicated their willingness to continue in office as the charity’s auditor and a resolution for their reappointment will be proposed at a future Trustee meeting.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 37 Statement of Trustees’ Responsibilities
The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financialyear 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 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; 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 fo 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.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report was approved and authorised for issue by the Trustees on 9 July 2020 and signed on their behalf by:
Kate Brown Director
Westminster Foundation – Trustees’ Report and Financial Statements 2019 38 Independent Auditor’s Report to the Trustees of the Westminster Foundation
Opinion We believe that the audit evidence we have In our opinion the financial statements of The obtained is sufficient and appropriate to provide Westminster Foundation (the ‘charity’): a basis for our opinion. • give a true and fair view of the state of the charity’s affairs as at 31 December 2019 and of its Conclusions relating to going concern incoming resources and application of resources We are required by ISAs (UK) to report in respect for the year then ended; of the following matters where: • have been properly prepared in accordance • the Trustees’ use of the going concern basis with United Kingdom Generally Accepted of accounting in preparation of the financial Accounting Practice, including Financial statements is not appropriate; or Reporting Standard 102 “The Financial Reporting • the Trustees have not disclosed in the financial Standard applicable in the UK and Republic of statements any identified material uncertainties Ireland”; and that may cast significant doubt about the • have been prepared in accordance with the charity’s ability to continue to adopt the going Charities Act 2011 and the trust deed. concern basis of accounting for a period of at least twelve months from the date when the We have audited the financial statements financial statements are authorised for issue. which comprise: We have nothing to report in respect of these • the statement of financial activities; matters. • the balance sheet; • the cash flow statement; and Other information • the related notes 1 to 13. The Trustees are responsible for the other information. The other information comprises the The financial reporting framework that has been information included in the annual report, other applied in their preparation is applicable law and than the financial statements and our auditor’s United Kingdom Accounting Standards, including report thereon. Our opinion on the financial Financial Reporting Standard 102 “The Financial statements does not cover the other information Reporting Standard applicable in the UK and and we do not express any form of assurance Republic of Ireland” (United Kingdom Generally conclusion thereon. Accepted Accounting Practice). In connection with our audit of the financial Basis for opinion statements, our responsibility is to read the other We conducted our audit in accordance with information and, in doing so, consider whether International Standards on Auditing (UK) (ISAs the other information is materially inconsistent (UK)) and applicable law. Our responsibilities with the financial statements or our knowledge under those standards are further described in obtained in the audit or otherwise appears to the auditor’s responsibilities for the audit of the be materially misstated. If we identify such financial statements section of our report. material inconsistencies or apparent material misstatements, we are required to determine We are independent of the charity in accordance whether there is a material misstatement in the with the ethical requirements that are relevant to financial statements or a material misstatement our audit of the financial statements in the UK, of the other information. If, based on the work including the Financial Reporting Council’s (the we have performed, we conclude that there is a ‘FRC’s’) Ethical Standard, and we have fulfilled material misstatement of this other information, our other ethical responsibilities in accordance we are required to report that fact. We have with these requirements. nothing to report in respect of these matters.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 39 Responsibilities of Trustees Report on other legal and regulatory As explained more fully in the Trustees’ requirements responsibilities statement, the Trustees are Matters on which we are required to report by responsible for the preparation of the financial exception: statements and for being satisfied that they give Under the Charities (Accounts and Reports) a true and fair view, and for such internal control Regulations 2008 we are required to report in as the Trustees determine is necessary to enable respect of the following matters if, in our opinion: the preparation of financial statements that are • the information given in the financial free from material misstatement, whether due statements is inconsistent in any material respect to fraud or error. with the trustees’ report; or • sufficient accounting records have not been In preparing the financial statements, the kept; or Trustees are responsible for assessing the • the financial statements are not in agreement charity’s ability to continue as a going concern, with the accounting records and returns; or disclosing, as applicable, matters related to going • we have not received all the information and concern and using the going concern basis of explanations we require for our audit. accounting unless the trustees either intend to liquidate the charity or to cease operations, or We have nothing to report in respect of these have no realistic alternative but to do so. matters.
Auditor’s responsibilities for the audit of the Use of our report financial tatementss This report is made solely to the charity’s We have been appointed as auditor under Trustees, as a body, in accordance with Part 4 of section 144 of the Charities Act 2011 and report in the Charities (Accounts and Reports) Regulations accordance with the Act and relevant regulations 2008. Our audit work has been undertaken so made or having effect thereunder. that we might state to the charity’s trustees those matters we are required to state to them in an Our objectives are to obtain reasonable auditor’s report and for no other purpose. To the assurance about whether the financialstatements fullest extent permitted by law, we do not accept as a whole are free from material misstatement, or assume responsibility to anyone other than the whether due to fraud or error, and to issue charity and the charity’s trustees as a body, for an auditor’s report that includes our opinion. our audit work, for this report, or for the opinions Reasonable assurance is a high level of assurance, we have formed. 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 influencethe economic decisions of users taken Deloitte LLP on the basis of these financial statements. Statutory Auditor London, United Kingdom A further description of our responsibilities for the audit of the financial statements is located July 2020 on the FRC’s website at: www.frc.org.uk/ auditorsresponsibilities. This description forms Deloitte LLP is eligible for appointment part of our auditor’s report. as auditor for the charity by virtue of its eligibility for appointment as audit of a company under section 1212 of the Companies Act 2006.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 40 Statement of financial activities Year ended 31 December 2019
2019 2018 Unrestricted Funds Unrestricted Funds Total Total £ £
Income and endowments from: Donations and Legacies (Note 7) 2,549,316 43,715,061 Investments: - Listed investments 1,943,071 1,241,881 - Bank interest receivable 10,397 48,328
Total income and endowments 4,502,784 45,005,270
Expenditure on: Raising Funds (note 9) (10,101) (6,411) Charitable activities (note 10) (2,636,553) (2,747,150)
Total expenditure (2,646,654) (2,753,561)
Net gains/(losses) on investments 13,762,147 (7,185,667) (note 8)
Net income and movement in funds 15,618,277 35,066,042 Total funds brought forward at 1 January 95,111,931 60,045,889
Total funds carried forward at 31 110,730,208 95,111,931 December (note 8)
All income and expenditure relates to continuing operations.
There were no recognised gains and losses for the current year or preceding year other than those shown above.
The notes on pages 44 to 50 form part of these financial statements.
Westminster Foundation – Trustees’ Report and Financial Statement 2019 41 Balance Sheet as at 31 December 2019
Notes 2019 (£) (£) 2018 (£) £
Fixed assets Listed investments at market value 2 110,086,116 94,644,590 Unlisted investments 3 10 10 110,086,126 94,644,600
Current assets Debtors: amounts falling due within one year 4 128,757 700,917 Short term deposits: Cash at bank and in hand 1,945,856 1,682,755 2,074,613 2,383,672
Current liabilities Creditors: amounts falling due within one 5 (1,094,738) (1,072,915) year
Net current assets 979,875 1,310,757 Creditors: amounts falling due after one year 6 (335,793) (843,426) Net assets Total funds 110,730,208 95,111,931 brought
Representing: Unrestricted Funds 110,730,208 95,111,931
The notes on pages 44 to 50 form part of these financial statements.
These financial statements of The Westminster Foundation, registered number 267618, were approved by the Board of Trustees and authorised for issue on 9 July 2020.
The Duke of Westminster
M R Preston
Westminster Foundation – Trustees’ Report and Financial Statements 2019 42 Cash Flow Statement Year ended 31 December 2019
Note 2019 2018 Total Funds Total Funds £ £
Net cash flow (used in)/from operating 12 (682,376) 68,163,079 activities
Cash flows from/(used in) investing activities: Interest received 7,501 45,967 Dividends received 2,617,356 599,025 Proceeds from sale of investments 52,128,460 25,775,000 Purchase of investments at cost (53,807,840) (120,865,299)
Net cash flows from/(used in) investing 945,477 (94,445,307) activities
Net increase/(decrease) in cash and cash 263,101 (26,282,228) equivalents
Cash and cash equivalents at beginning 1,682,755 27,964,983 of year
Cash and cash equivalents at end of 1,945,856 1,682,755 year
Reconciliation to cash at bank and in hand
Cash at bank and in hand 1,945,856 1,682,755
Westminster Foundation – Trustees’ Report and Financial Statement 2019 43 Notes to the financial tatementss for the year ended 31 December 2019
1. Accounting Policies (a) Basis of Accounting The financial statements are prepared under the historical cost convention, with the exception of investments which have been included at market value, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” 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 constitutes a public benefit entity as defined by FRS 102.
The charity’s activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees Report which also describes the financial position of the charity including its cash, investments, distributions and reserves policy. Taking these into consideration and the fact that all funds are unrestricted, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the annual report and financial statements.
(b) Allocation of Cost All the Foundation’s operating costs relate to management and administration included within section (e). The allocation of the support costs including governance costs is to charitable activities with investment management fees being applied to cost of raising funds.
(c) Investments Listed investments are valued at the market price from a recognised stock exchange at the balance sheet date. Realised and unrealised gains and losses on investments are included in the Statement of Financial Activities in net gains/(losses) on investment.
Unlisted investments are valued at cost where fair value cannot be measured reliably.
(d) Income Income is accounted for in the Statement of Financial Activities when the Foundation is legally entitled to the income and the amount can be quantified with reasonable accuracy and is probable to be received. Income from investments is treated as receivable when the investment is quoted ex-dividend. Other income is accounted for on an accruals basis.
(e) Expenditure All expenditure is accounted for on an accruals basis. Expenditure on raising funds comprises investment management costs associated with managing the foundation’s investments. Support costs include management charges from the Grosvenor Estate, grant making software costs, subscriptions and exchange differences on foreign currency transactions. Governance costs comprise all costs
Westminster Foundation – Trustees’ Report and Financial Statements 2019
44 Notes to the financial tatementss for the year ended 31 December 2019 (continued) relating to the public accountability of the charity and its compliance with regulation and good practice. These costs include statutory audit and legal fees, together with an apportionment of the management fee from the Grosvenor Family Office.
For 2019 onwards, multi-year partnership and small grants awarded are accounted for in the year they are paid due to changes in the standard grant agreement terms. Release of subsequent years funding requires a report from grant recipients on how the grant has been used. Historically, all grants have been accounted for in the year in which they were approved, irrespective of the period covered by the grants with grants awarded but not yet paid being recorded as grant commitments in the balance sheet. No discount factors have been applied to these grant commitments included in the balance sheet due to the effect being immaterial.
(f) Foreign Currency Translation Transactions denominated in foreign currencies are translated into sterling at the exchange rate ruling on the date the transaction is recorded. Monetary assets and liabilities denominated in foreign currencies are retranslated at the exchange rate ruling at the balance sheet date. Translation differences are included in the Statement of Financial Activities.
(g) Taxation On the basis that the activities fall within charitable purposes and the funds are applied only for these purposes, no provision for taxation is made.
(h) Fund Accounting All funds are unrestricted and can be used in accordance with the foundation’s charitable objects at the discretion of the Trustees.
(i) Financial Instruments Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. Investment policies are described in note 1(c).
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 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 of the deposit or similar account. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
(j) Critical accounting judgements and key sources of estimation uncertainty In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that
Westminster Foundation – Trustees’ Report and Financial Statements 2019 45 Notes to the financial statements for the year ended 31 December 2019 (continued) period, or in the period of the revision and future periods if the revision affects both current and future periods. The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure.
2. Listed Investments Investments are held in a collective investment scheme managed by CCLA Investment Management Limited. The carrying value at the year-end is a market valuation as at 31 December 2019, with the domicile of holdings determined by the place of listing of the fund vehicle not of the underlying securities held therein.
2019 £ 2018 £
UK collective investment scheme 110,086,116 94,644,590
The movement in the portfolio during the year is shown below:
2019 2018 Total £ Total £
Market value 1 January 94,644,590 6,739,958 Purchases 53,964,842 120,865,299 Disposals at carrying value (47,000,122) (26,975,671) Investment gains/(losses) 8,476,806 (5,984,996)
Market value 31 December 110,086,116 94,644,590
Cost 31 December 103,964,842 100,167,001
3. Unlisted Investments held within UK
2019 £ 2018 £
Chester & County Unionist Buildings 10 10
Westminster Foundation – Trustees’ Report and Financial Statements 2019 46 Notes to the financial tatementss for the year ended 31 December 2019 (continued)
4.Debtors - Amounts falling due within one year:
2019 £ 2018 £
Prepayments and accrued income 3,265 686,333 Amounts due from associated undertakings 125,492 14,584
128,757 700,917
5. Creditors - Amounts falling due within one year:
2019 £ 2018 £
Grant commitments 1,027,018 1,056,784 Accruals and deferred income 67,720 16,131
1,094,738 1,072,915
6. Creditors – Amounts falling due after one year:
2019 £ 2018 £
Grant commitments 335,793 843,426
Grant commitments comprise grant payments due for 2020 and beyond, where a constructive obligation arose during or prior to 2019. Amounts due between two and five years are £300,793 (2018: £780,926). Amounts due after more than five years are £35,000 (2018: £62,500). 7. Donations
2019 £ 2018 £
Grosvenor Group Limited 2,548,445 2,588,675 Grosvenor Family Members - 16,900,000 Legacy bequest - 20,000,000 Gift aid on donations - 4,225,000 Other income 871 1,386
2,549,316 43,715,061
Westminster Foundation – Trustees’ Report and Financial Statements 2019 47 Notes to the financial statements for the year ended 31 December 2019 (continued)
8. Analysis of charitable funds
2019 2018 £ £
As at 1 January 95,111,931 60,045,889
Total income 4,502,784 45,005,270 Total expenditure (2,646,654) (2,753,561) Investment gains/(losses) 13,762,147 (7,185,667)
As at 31 December 110,730,208 95,111,931
9. Expenditure on raising funds
2019 £ 2018 £
Investment Management Fees 10,101 6,411
10. Analysis of expenditure on charitable activities
2019 £ 2018 £
Grant making 2,108,968 2,664,419 Grant funding activities 3,159 426 Support costs 524,426 82,305
Charitable activities as per Statement of 2,636,553 2,747,150 Financial Activities
Support costs include governance costs of £96,726 (2018: £23,397). The increase in support costs is mainly due to the Grosvenor Family Office management fee (see page 34).
Pages 22 to 30 of this report includes details of grants awarded during the year.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 48 Notes to the financial statements for the year ended 31 December 2019 (continued)
Analysis of Grant Making Activity
2019 2018 £ £
Commitments (net) as at 1 January 1,891,285 1,804,959
Grants awarded in the year 2,136,456 2,770,608 Grants cancelled in the year (27,488) (106,189)
Grant making as above 2,108,968 2,664,419
Grants paid in the year (2,637,442) (2,578,093)
Grants commitments as at 31 December 1,362,811 1,891,285
11. Related party transactions The related party transactions in the year are the donations received from Grosvenor Group Limited as disclosed in note 7 and referred to in the Trustees’ Report. The total amount owing from Grosvenor Group Limited at the period end was £125,492 (2018: £14,584).
The Foundation paid fees totaling £416,400 (2018: £63,075) to a Grosvenor Trust, which is part of the Grosvenor Family Office.
The Foundation’s policy is for Trustees, Executive and advisers to declare their interest and exempt themselves from all relevant discussions and decisions which may involve a transaction with a related party or in which they may have a conflict of interest.
Grants of £195,000 were awarded to The Country Trust during the year, the President of which is The Duke of Westminster. Other than that, no Trustees are related to any charity awarded grant (2018: none). No Trustee or persons connected with them received any remuneration or reimbursement of expenses during the year (2018: none). No Trustee donated money to the charity (2018: £16,900,000 from the Duke of Westminster).
49
Westminster Foundation – Trustees’ Report and Financial Statements 2019 Notes to the financial tatementss for the year ended 31 December 2019 (continued)
12. Cashflow Statement Reconciliation of net income to cash generated by operations:
Year ended 31 Year ended 31 December 2019 December 2018 £ £
Net income for year 15,618,277 35,066,042
Adjustments for: Investment income (1,943,071) (1,241,881) (Gains)/losses on investments (13,762,147) 7,185,667 Interest receivable (10,397) (48,328)
Operating cashflow before movements in (97,338) 40,961,500 working capital
(Increase)/Decrease in debtors (99,229) 27,105,350 (Decrease)/Increase in creditors (485,809) 96,229
Net cashflow (used in)/from operating (682,376) 68,163,079 activities
13. Events subsequent to the balance sheet date Since the start of 2020, global financial markets have experienced and may continue to experience significant volatility, resulting from the spread of a novel Coronavirus known as Covid-19. The effects of COVID-19 have and may continue to adversely affect the global economy, the economies of certain nations, and individual issuers, all of which may negatively impact the charity’s investment returns and the fair value of its investments.
As at 30 June 2020 the market value of the investments was £111,103,228 compared to an audited year end value of £110,086,116. Given the level of liquidity within the investment portfolio, operations and funding commitments will not be negatively impacted. In accordance with the requirements of FRS 102 and the Charities SORP, the market valuation at the date of the balance sheet reflects the economic conditions in existence at that date. The Trustees have evaluated all subsequent events or transactions for potential recognition or disclosure through to 9 July 2020, the date on which these financial statements were signed and have determined that there were no subsequent events requiring adjustment to or disclosure in these financial statements.
Westminster Foundation – Trustees’ Report and Financial Statements 2019 50 Special Thanks
ACRE HealthBox Albert Kennedy Trust LandAid Big Issue Foundation London Community Foundation Big Society Capital London Plus Bridge Foyer Mayor’s Fund for London Cardinal Hume Centre MindOut CCLA One Westminster Centre for Homelessness Impact Outside In Centre for Mental Health Passion for Learning Centre of Ageing and Mental Health Places for People Centrepoint Platform for Life Chapter (West Cheshire) Plunkett Foundation Cheshire Agricultural Chaplaincy Positive View Foundation Cheshire Community Action Prince’s Countryside Fund Cheshire West and Chester Council Queen’s Nursing Institute Cheshire West Rural Growth Board Rocket Science Chester West Voluntary Action Shaw Trust Church of England Single Homeless Project City Bridge Trust SPARSE City of London St Mungo’s Cornwall RCC The Listening Place Country Trust The Passage CPRE, The Countryside Charity Thrive LDN Cripplegate Foundation UK Community Foundations CRISIS University of Chester Dartington Service Design Lab Welcome Network DePaul UK Westminster Children’s University End Youth Homelessness Westminster Council English Rural Young Minds Esmee Fairbairn Trust Young Westminster Foundation ForFutures Your Housing Group Future Men Youth Federation
Westminster Foundation – Trustees’ Report and Financial Statement 2019 51 Westminster Foundation 70 Grosvenor Street, London, W1K 3JP Registered Charity in England and Wales No. 267618