Report of the Trustees for the Year Ended 31 December 2021
The objectives of the Foundation are to support charities for the young and the elderly, for education, sporting, or adventurous purposes and for special requests. This may be done by payment of grants, provision of services or equipment and by assisting organisations with similar objectives. There are no restrictions on the way the body may operate, save that the Trustees must implement the objectives of the Foundation.
Grant Making Policy
The Foundation receives applications for assistance. These are considered by the Trustees and if thought suitable, grants are awarded. The Foundation made 60 grants (2020 – 45 grants) in the year.
Appointment of Trustees
Trustees are nominated by the then existing Trustees and their appointment confirmed by a formal Deed of Assumption.
Trustee Induction and Training
The Trustees considered and approved a policy on Trustee inductions and training prior to new Trustees being approached. This includes awareness of a Trustee’s responsibilities, the governing document, administrative procedures, the history and philosophical approach of the Foundation. A new Trustee receives copies of the previous year’s financial statements, minutes of the Trustees’ meetings and a copy of the OSCR leaflet “Guidance and Good Practice for Charity Trustees”, if appropriate. Training is offered to current Trustees as and when required.
Key Management Personnel
The Trustees consider the board of Trustees and C J Lang & Son Limited to be key management personnel of the Foundation in charge of directing and controlling the Foundation and running and operating the Foundation on a day to day basis. Most Trustees give their time freely however details of Trustees remuneration are detailed in note 4 of the financial statements. The remuneration paid to Trustees is set by the remaining unpaid Trustees. Trustees are required to disclose all relevant interests and in accordance with the Foundation’s policy, withdraw from decisions where a conflict of interest arises.
Organisation
The Foundation was established by a Trust Deed by Charles G Lang and Mrs Stella Lang in August 1987 to distribute free annual income for such charitable purposes as the Trustees in their absolute discretion decide. The Foundation is administered under the supervision of the Trustees who meet regularly. The Trustees agree the broad strategy and areas of activity for the Foundation, including consideration of grant making, investment, reserves and risk management policies and performance and receive reports from the Treasurer in connection with the recent activities of the Foundation. Day to day administration is carried out by the Foundation’s Treasurer.
Achievements and Performance
The Trustees have utilised available income generated in the year from investment income and donations, in the making of grants. In the year to 31 December 2021, grants of £44,540 (2020 – £40,064) were paid. This brings the cumulative total of grants paid, since 31 December 2001, to £929,033 (2020 – £884,493).
Financial Review and Investment Policy
The results for the year are set out in the statement of financial activities showing net expenditure of £8,747 (2020 – expenditure of £26,483). Total income in the year increased from £41,607 to £60,461. Grants paid in the year increased from £40,064 to £44,540. The Foundation’s investment portfolio increased in value from £787,471 to £850,255 during the year broadly in line with market conditions. The advice of Brewin Dolphin, Investment Managers Dundee, during the period of the Account, had been accepted by the Trustees.
Related Parties
The majority of Trustees of The Lang Foundation are also Directors of C J Lang & Son Limited.
Risk Management
The Trustees have assessed the major risks to which the Foundation is exposed, in particular those related to the operations and finances of the Foundation. Apart from sustained downward stock market movements, the Trustees do not believe that there are any major financial risks to which the Foundation is exposed. This is mitigated by retaining expert investment managers and having a diversified investment portfolio.
Reserves Policy
The reserves of the Foundation originate from original and subsequent capital donations together with the growth in the value of investments. The Trustees have adopted a reserves policy that ensures the continuing ability of the Foundation to meet its objectives. Capital and Revenue balances are retained primarily to meet significant requests for financial assistance and stock market risks. The level of free reserves held at 31 December 2021 was £1,548,480 (2020 – £1,320,473).
Strategy
The Trustees have pursued their strategy of making donations primarily to locally based organisations and individuals to an extent which absorbs as nearly as is practicable the whole incoming resources and continued their practice of receiving and considering annual reports from the Investment Managers on the position of the Foundation’s portfolio of investments.
Future Strategy
In support of the Foundation’s strategy above an enhanced web site has been produced to encourage members of C J Lang & Son Ltd staff and other organisations to apply for grants.
In addition to the website the Foundation is encouraging applications from organisations with a connection to C J Lang & Son Ltd staff members and the communities served by the C J Lang & Son Ltd outlets by promoting the Foundation and its objectives on the staff intranet and through the outlets themselves. As the Trust is predominantly a grant giving Foundation and has no material ongoing commitments, Covid 19 and other world events have not materially affected the Trust’s operations. However, the Trustees are mindful both of the potentially increased needs of many traditional beneficiaries and the potential decrease in future investment income. As such, the Trustees will manage the Trust’s affairs in a manner that will ensure the Trust’s ability to achieve its charitable objectives in the medium to long term can be met.