The trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Assoication, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The foundation seeks to advance, promote, or carry out such charitable purposes as the Trustees in their absolute discretion see fit. The foundation carries out these objects by providing grants to suitable institutions and individuals in line with the foundation's grant making policies detailed below.
The trustees consider that they have complied with section 4 of the Charities Act 2011 with regard to the guidance on public benefit published by the Charity Commission.
Grant making policies
Applications for donations are always open and all applications are collected by the Foundation’s Grant Manager and forwarded for evaluation to the Trustees.
The Trustees meet twice a year to make final decisions about new grants, evaluate ongoing grants and, in extreme cases of poor performance or breach of agreement, to discontinue grants.
The Trustees have agreed that the Foundation will focus on grants to institutions and individuals for educational purposes, as well as initiatives that improve living conditions in a community and employability of disadvantaged youths, especially in Brazil and Israel. However, if approved by all three trustees, grants in other areas may be approved.
The Foundation’s Board has approved a grantmaking strategy such that amounts distributed should not exceed the amount of USD 1,000,000 per calendar year. In addition, two trustees are necessary to approve grants of values below USD 50,000, and unanimous decisions by all three Trustees are necessary for all grants above this value, or for multi-year commitments.
Grants should only be made to institutions with charitable purposes, and never to any for-profit institutions. Grants shall not be used for political causes. The Foundation will monitor the use of the Foundation’s funds via regular reports sent by the grantees on a regular basis. All expenditures related to the Foundation’s grant shall appear in the financial records of the Grantee and they must notify the Foundation if there are any difficulties with the project or any changes in its charitable status.
For large and/or multi-year awards, the Trustees will request that a Memorandum of Understanding be signed between the Foundation and the Grantee, to ensure that the funds are used according to the Trustees’ wishes.
At the bi-yearly Board meetings, the Trustees can discuss and agree on any changes to the above policy. All decisions are minuted and have to be unanimous. Any one of the three Trustees can request a special meeting to discuss the grantmaking policy and request changes if necessary.
This Policy document will be reviewed and updated at the beginning of every calendar year.
In 2023 the Charity continued to make donations with a focus on access to high-quality education, training and support for disadvantaged youth. The Foundation made donations to 12 non-profit organisations in Brazil, USA and Israel, to support programmes and institutions that provide scholarships, educational services and support for communities in disadvantaged areas.
The priorities for the Foundation continued to be to support institutional programmes that include the provision of scholarships to students at various levels. Grants were also made to organisations that provide wrap-around support services to students from socially disadvantaged backgrounds, as well as student from under-represented racial minorities. Student programmes that develop skills such as entrepreneurship and resilience & leadership were also supported.
The TVML Foundation also provided grants to institutions that provide care and bespoke educational programmes for children and adolescents with disabilities, continuing its commitment to widening participation in education, as well as social acceptance and the development of skills and training for employment.
It continued to support projects to strengthen community ties and the role of peace and security in access to education.
Responding to recent global challenges, the Foundation supported new programmes to address climate change and sustainability in the Amazon region, as well as support for institutions that provided humanitarian assistance in Israel.
The Foundation also supported the Jewish Museum in Sao Paulo, Brazil.
During the year ended 31 December 2023, a total of £827,179 was granted to charitable organisations (2022: £377,554).
Total income received was £22,615 (2022: £152,031) and other expenditure excluding grants was £85,462 (2022: £45,11).
All income and expenditure during 2023 and 2022 was unrestricted.
Reserves policy
The TVML Foundation does not raise funds from the general public and has a history associated with one single donation source, Spinnaker Capital, from which no further future donations are expected.
The Foundation’s Trustees have agreed that the remaining reserves of the Foundation will be gradually distributed to existing and new beneficiaries, with all funds to be fully distributed at some point in 2026 or 2027, after which the Foundation is expected to be closed. As detailed in note 1.2 to the financial statements, the financial statements have therefore been prepared on a basis other than going concern.
Investment policy and performance
The TVML Foundation does not raise funds from the general public and has its history associated with a series of donations received from Spinnaker Capital, from which no future income is expected.
The Trustees have appointed M Lederman, one of the directors, to be the Foundation’s investment manager. Mr Lederman has over 25 years of professional experience working with financial markets, investments and risk assessment. The Foundation Board was satisfied that Mr Lederman had the skills and experience necessary to manage all the Foundation’s funds.
The Trustees have agreed that a percentage of the Foundation’s funds will be kept as cash, in accounts at Citibank and JP Morgan banks in London. The bulk of the Foundation’s funds will be invested in a portfolio monitored by Mr Lederman, where the objective is primarily capital preservation with a moderate risk profile on the investments made. At the moment, the directors invest in bank fiduciary deposits and money market corporate bonds and hedge funds. The aim of the investments is to generate income so as to fund operating expenses through the income on the investment of its liquid assets. As noted above the Trustees have agreed to distribute the Foundation's remaining reserves, with all funds to be fully distributed at some point in 2026 or 2027.
The Trustees evaluate the performance of investments twice a year. Monthly statements are used to monitor the Foundation’s funds and Mr Lederman is authorised by the Trustees to make decision regarding the portfolio of investments, changes and cash reserves. Mr Lederman will report to the other Trustees any relevant changes in performance or risk profile.
At the bi-yearly Board meetings, Mr Lederman reports the state of the Foundation’s funds and the Trustees agree on any changes deemed necessary. All decisions are minuted and have to be unanimous.
In the event that Mr Lederman becomes unable to continue to manage the Foundation’s investments, an experienced outside investment advisor will be used.
All Trustees have access to the Foundation’s accounts and can monitor performance if necessary. Any one of the three Trustees can request a special meeting to discuss the investment policy and request changes if necessary.
This Policy document will be reviewed and updated at the beginning of every calendar year.
Details of investment performance can be found in note 11.
Major risks
As noted above, the foundation aims to fund its operating costs through the income from the investment of its liquid assets, therefore the Trustees consider the major risks to relate to the performance of these investments and of the wider global equities, fixed income and currencies markets. The Trustees are confident that the necessary management systems and strategies have been implemented to mitigate those risks.
TVML Foundation is registered as a charitable company limited by guarantee and was set up by a Trust deed.
The TVML Foundation ("the foundation") is a trust, with charitable status and governed by its Trust Deed. The Trustees meet regularly to agree funding policy, monitor income and expenditure and allocate funds. New appointments must be proposed and agreed by current trustees.
The management of the Company is the responsibility of the Directors who are elected and co-opted under the terms of the Trust deed.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees, who are also the directors of TVML Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law 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 and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
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 UK 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 will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of TVML Foundation (the ) for the year ended 31 December 2023.
As the trustees of the (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the ’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The notes on pages 8 to 13 form part of these financial statements.
The notes on pages 8 to 13 form part of these financial statements.
TVML Foundation is company limited by guarantee in the United Kingdom. The address of the registered office is given in the legal and administrative page of these financial statements. The nature of the charity's operations and principal activities are set out on page 1.
The financial statements have been prepared in accordance with the 's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The is a Public Benefit Entity as defined by FRS 102.
The has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the . Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
As noted in the Directors' report, the foundation's remaining reserves are expected to be distributed to existing and new beneficiaries, with all funds to be fully distributed at some point in 2026 or 2027, after which the foundation is expected to be closed. The directors do not expect the closure to occur within 12 months of the date of signing these financial statements. However due to their intention to close the foundation, they have determined that the financial statements should be prepared on a basis other than going concern. There have been no significant changes to accounting policies which were previously adopted under the going concern assumption and which are outlined below. Wind-up costs are not expected to be material. The change in basis of accounting has not led to any material adjustments to the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Donations are accounted for on a receivable basis, having regard to the likely recoverability of amounts. All arise from continuing, ordinary activities.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Provision is made for grant payments at the time the decision is taken by the trustees, to the extent that this decision has been communicated to the recipient of the grant. Where grants have been determined by the directors but have not been notified to the recipient a contingent liability results and the grant expense is transferred to a designated fund until such time as it falls due.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the ’s contractual obligations expire or are discharged or cancelled.
The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Liability of members
The foundation is limited by guarantee without any share capital. In the event of its being wound up each member is liable to contribute for payment of debts and liabilities of the foundation, such amount not exceeding £1.
In the application of the ’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Consultancy costs
Other support costs
Independent examination fee
Governance costs includes payments to the auditors of £nil (2022: £6,000) for audit fees.
The company has no employees other than the directors, who did not receive any remuneration (
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
During the year, the foundation paid consultancy fees of £31,200 (2022: £31,200) for Dr T Lima, the Company Secretary.