Charitable Aims & Objectives

1. Purpose
 
The purposes of the Benevolent Fund are set out in the trust deed dated 6th April 1964.
 
In summary they are:
1. Support of Liverymen, Freemen, their widows, orphans and descendants, in need.
2. Support of employees, former employees and their widows, orphans and descendants, in need.
3. Administration of other charitable trusts of which the Fund is a trustee.
4. Making grants to charitable funds in the City of London or elsewhere.
5. Other charitable purposes beneficial to the community.
 
In practice the trust funds are generally allocated to numbers 4 and 5.
 
2. Objectives
 
The objectives of the Fund broadly lie within the following “Heads of Charity”; 
-The advancement of education
-The relief of those in need by reason of youth, age, ill-health, disability, financial hardship or another disadvantage.
 
3. Aim
 
The aim of the Fund is to achieve its objectives through supporting bakery education, both main stream and for those who are disadvantaged, and Trade and City charities.
 
Within these categories the Trustees consider the main objectives of the grants made by the benevolent fund to be those set out below.  These objectives will be periodically reviewed by the Trustees. 
 
1. Support of students and trainees in Bakery education.
2. Support the use of bakery training to assist disadvantaged young people.
3. Support the use of bakery training to assist adults attempting to re-enter mainstream society.
4. Support trade activity not covered by any of the above.
5. Support City of London charities.
6. Support actions beneficial to the community not covered above.  
 
Priority will be given to objectives 1, 2 and 3, plus continuing, where appropriate, grants historically made under other objectives. Commitments to support a charitable initiative can be entered into for more than one year.
 
4. Governance
 
4.1 Financial Governance
 
The Trustees will;
• Use expert advice as required when considering investment, property matters and legal compliance.
• The Trustees will approve the annual accounts and include them in a report made to the Court of The Worshipful Company of Bakers by the Third Warden at April Court (SO 17.4).
• The Trustees will appoint an examiner of the annual accounts and review the examiner’s report.
• The Trustees will set the investment profile and expected dividend return on the equity portfolio managed by the professional investment advisors.
• The Trustees will regularly review against the benchmark set the performance of the investment managers appointed by them.
• In conjunction with the finance committee the Trustees will periodically have an investment management review.
• The Trustees will set an annual budget to achieve the “aims” within the income available.  They will meet at least four times per year to review performance against this budget.
• The Trustees will ensure effective internal controls are in place and properly applied.
• The Trustees will ensure that the required annual returns of the trust fund are filed on time.
• The Trustees will authorise all grant payments, ensuring they are in line with the objectives of the trust.
• The Trustees will monitor the use to which grants are put, taking, when appropriate, expert advice from within the Company. They will request reports from recipients.
• The administration of the Benevolent Fund will be undertaken by the Worshipful Company of Bakers who will receive a fee, the amount of which will be determined by the Trustees.
 
4.2 Reporting
The Trustees will present annually to the April Court of the Worshipful Company of Bakers
• The annual accounts.
• A report on grants made.
• A report on the use to which grants were put.
• The annual accounts and activity report will be published on the website of the Worshipful Company of Bakers.
 
5. Reserves, Income and Distribution
 
5.1 Reserves
Reserves are capital accumulated from gifts, legacies and undistributed income.  These are managed by a professional investment manager.
 
Excluded from reserves are fixed assets (land and buildings), funds reserved for specific purposes and any funds held to cover known future commitments.
 
The Trustees will maintain appropriate reserves to ensure a stream of income is available to make grants on a sustainable basis.  
 
5.2 Income
Normal annual income arises from;
• Dividends from investments
• Rental income
• Donations not intended for Capital funds
• Gift aid
• Windfall gains
 
5.3 Distribution
The Trustees may distribute all income to achieve the objectives of the trust as defined from time to time.  Grants will normally be made from income arising in the previous year.  If not all income is distributed in one year it can be held for future use.
 
Trustees may use some reserves to support larger, longer term, commitments to achieve the Aims and Objectives as set out from time to time. A material level of reserves will be maintained to ensure the availability of future revenue streams.
 
Known future commitments can be provided for by reserving income until it is required to be donated.
 
6. Risk Analysis and Management

The Trustees will periodically analyse the risks to the fund not being able to meet its objectives and take appropriate steps to manage those risks where possible.
 
The main risks currently identified by the Trustees are as follows;
• Financial events impairing the payment of dividends on investment
• Disruption to rental income arising from damage to property or failure to let property.
 
The above events are largely outside the control of the Trustees.  Should they occur consideration will be given the using reserves to maintain donations until such time as income streams resume.
 
 
 
 
 
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