Esmee Fairbairn Foundation - Annual Report 2008

Calm or Storm Our values remain the same

Annual Report & Accounts 2008

A beach in Southport Pristine or polluted?

Hidden in the sands, lurking in the eddies – litter could have been discarded here minutes ago or arrived on the tide from halfway around the world. Whatever its source, beach litter is a problem on a global scale; harming wildlife and damaging the environment. Here in the UK, annual clean-up costs come to millions of pounds.

To help solve this problem, Esmée Fairbairn supports the Marine Conservation Society.

Its objective: to tackle the problem of discarded plastic bags, balloons, cigarette ends and other beach litter at its source by changing behaviours for the better. This work complements the efforts of two other Esmée Fairbairn beneficiaries, Campaign to Protect Rural England and its ‘stop the drop’ campaign, and the new charity CleanupUK.

Esmée Fairbairn Foundation

Global economic turmoil spares no one – including charitable foundations. Despite the downturn, at Esmee Fairbairn we remain true to our guiding principles.

This means that we are still taking on the big issues and tackling the topics that go to the heart of our society. For us, taking on those subjects means funding the organisations that ask the difficult questions about life in the UK and how it can be improved.

We will aim to ensure that the enthusiasm and intellectual curiosity that have driven the Foundation in the past continue to guide us through a less certain future.

Contents Esmée Fairbairn Foundation – 1 A year of change – 2 Main Fund – Strength in diversity – 5 Looking beyond the mainstream – 10 Rethinking Crime and Punishment – 12 A multi-faceted approach to funding – 14 Chairman’s statement – 18 Grant-making overview – 19 Grants lists – 21 Financial review – 31 Financial information – 36 A living memorial – 48 Trustees, Committees, Staff and Advisers – 49 1

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A year of change Dawn Austwick, Chief Executive This has been a year of change for the Foundation. We, like everyone else, have experienced a shift in the tectonic plates of the financial world. Whilst we were braced for a downturn, the ferocity, scale and unpredictability of events made for an unsettling and disturbing few months.

In 2008 the total return achieved on our investment portfolio was -17.6% compared to +5.7% in 2007. This could have been much worse and the economic and financial outlook remains uncertain. However we remain committed to a long term perspective both in our investment choices and our grant-making.

Notwithstanding such major external upheaval, we have made several significant changes of our own as a result of the strategic review we carried out in 2007. The most notable of these has been the introduction of a Main Fund through which the majority of our funding now runs, with specialist funding strands sitting alongside it. And we have not just made changes to our policy and funding practice. We are now located in the newly developed Kings Place, just up York Way from Kings Cross station in central London. We were attracted to Kings Place by its mixed use facilities (combining commercial offices with concert halls and galleries, gracious public spaces and places to eat), the sustainable design of the building, and its key role in pioneering regeneration in this part of London.

This mix of cultural, environmental and social factors is a close fit with our own areas of interest.

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The most significant change has been to our funding approach. The Main Fund now offers us the opportunity to respond more easily to the needs and priorities of those we fund. Whilst we could not have foreseen the deterioration in the economic climate, our new responsive approach gives us the flexibility to react to external changes and adjust our funding choices accordingly. We will see in 2009 whether the more hostile external environment leads to a significant change in the nature and type of applications we receive.

2008 has been a year of experimentation, of finding our feet with the new approach, and exploring with applicants the wider boundaries of our funding. It has opened up new areas of funding for us – support for refugees and asylum seekers being one, and for new work in national arts companies being another – as well as raising interesting questions about policy. For example, we have been testing the approach to funding locally, and how as a national funder we could be best placed to do this - one route we have taken here is to pilot a small grants programme with the South West Foundation.

As we move through 2009 we will undoubtedly have to consider the balance between supporting the development of new ideas and approaches and ensuring that existing practice and delivery is maintained in difficult circumstances.

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In the future we hope to be able to develop further our understanding of the impact of our grant-making decisions and use such knowledge to inform our thinking about this and other issues that we face.

Whilst we have seen a lot of change, we remain fundamentally the same organisation, operating in the same areas, and many of our grants this year are familiar territory for us.

They represent the continuity of values and philosophy that remain at the heart of what we do. The stewards of this philosophy are our Board of Trustees and in 2008 we said goodbye to our four longest serving Trustees: Ashley Down, John Fairbairn, Jeremy Hardie, and Martin Lane Fox, two of whom (John and Jeremy) are also past chairmen of the Foundation. Their knowledge, wisdom and humour will be much missed by all of us.

Dawn Austwick, Chief Executive

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A broad range a good fit Main Fund – Strength in diversity The Main Fund is Esmée Fairbairn’s primary channel for grants. It supports work that focuses on the UK’s cultural life, education and learning, the natural environment and enabling disadvantaged people to participate more fully in society. In 2008, Main Fund grants responded to the nation’s changing needs.

These projects give some idea of the range of nationally, regionally and locally significant work we supported.

Featuring six projects: 1. The Opera Group 2 Chem Trust 3. Lost Chord 4. Change Ashby Now! 5. ECPAT 6. Inspiring Scotland

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Main Fund – A broad range a good fit

1. The Opera Group “An inclusive approach to contemporary opera that takes in everything from Kurt Weill to the Enchanted Pig” When a small opera company can attract an audience of 32,000 for a new work and plans to collaborate with the Institute of Psychiatry in commissioning a piece on Alzheimer’s disease, it is worthy of note. For Esmée Fairbairn, it is also worthy of support.

In 2008 we agreed to provide £48,592 to pay for the company’s executive producer. During her previous two-year tenure the organisation increased performance and audience numbers significantly. Under her leadership, and working with colleagues, the Opera Group developed creative partnerships with organisations such as The Young Vic, Buxton Festival and Anvil Arts Basingstoke. It also experimented with performances in unusual, easily-accessible settings including an Oxford Street department store and launched an incubator scheme to support the development of new commissions.

Today, The Opera Group is acknowledged as one of England’s foremost exponents of contemporary opera. Current projects include working with the London Sinfonietta, ROH2 at the Royal Opera House and Birmingham Contemporary Music Group.

2. Chem Trust “Establishing an essential link between research scientists and policy makers” Over time, toxic chemicals can cause long-term damage to wildlife and humans – even when no immediate harm is readily apparent. To shorten the time lag between pollution and the chemicals policies to deal with it, there is a need to link scientists, often working in isolation, with policy makers. The Chemicals, Health and Environmental Monitoring (CHEM) Trust was set up in 2006 to do precisely that.

In recognition of the importance of this, Esmée Fairbairn is helping CHEM Trust by providing a total of £113,700 over three years to fund half the cost of the organisation’s chief executive’s salary and to support the first two annual projects.

The Trust’s initial focus is on hormone disruptors. These primarily originate from the use and disposal of everyday products such as televisions, computers, cars, construction materials, toys, toiletries and cosmetics. Their impact on wildlife populations can be devastating; particularly in terms of decreased fertility and behavioural abnormalities.

To increase understanding of what hormone disruptors are doing to humans, CHEM Trust has also prioritised bringing the medical community into the debate.

6 Esmée Fairbairn Foundation Annual Report & Accounts 2008

3. Lost Chord “An innovative – and effective – approach to lessening the tragedy of dementia” Nearly one million people in the UK suffer from dementia. For many of them, mental stimulation is typically confined to hours in a chair before a television screen.

But not for those participating in the Lost Chord programme.

This innovative approach reignites mental processes through hourlong music workshops led by promising, specially-trained young musicians who have been enlisted onto the scheme after being auditioned at the National Opera Studio. Strong evidence suggests that these sessions, which reach areas of the brain that tend to remain undamaged, can trigger responses from those who had previously shown little or no reaction to any other stimuli.

Lost Chord started in 1999 as a three-year pilot. It now offers over 800 interactive sessions a year that focus on playing percussion, dancing or singing. Participants include residents of 77 residential homes and visitors to day centres throughout Yorkshire. Two pilots are also underway in Cardiff and London.

Esmée Fairbairn’s support for Lost Chord is helping to cover the costs of workshops in 20 Yorkshire homes – all of which have proven success with the programme.

Specifically, our £75,000 over three years is towards the costs of the musicians, their travel and subsistence and volunteer travel, and contribute to the overall sustainability of the organisation.

4. Change Ashby Now! “Helping a town to help its young people help themselves” The Leicestershire town of Ashby is home to three of the most deprived wards in the county.

As is the case with many similar towns in Britain, some of Ashby’s youth feel alienated from their peers and from the rest of the community. Though previous efforts to establish social and community venues were destroyed by vandalism, a central location called the The Hub has survived.

Run by an organisation called Change Ashby Now!, The Hub benefits from a central location and facilities that include a community café and internet access. The Hub attracts a substantial number of regular users and even more occasional visitors from the town and surrounding villages. Local police have noted a reduction in antisocial behaviour, under-age drinking and juvenile crime among young people using The Hub. Clearly, whatever The Hub is providing seems to work. Which is why we decided to provide £40,250 over two years to help fund its first full-time paid project manager. Responsibilities will include developing new programmes and establishing relationships with schools and youth offender programmes, initiating contracts with adult education providers and making the best use of the building so it can provide wider community benefits and generate additional income.

5. ECPAT “Putting the law to work to stamp out child sex trafficking in the UK”

6. Inspiring Scotland “Working with other charities and donors in a new way, to further a common cause”

There are no children more disadvantaged or marginalised than those who have been victims of sex trafficking. That is why we are supporting the UK’s only charity with a specific mandate to work against this trade: End Child Prostitution, Child Pornography and the Trafficking of Children for Sexual Purposes (ECPAT).

Esmée Fairbairn is interested in new ways of funding. To extend our reach, and to benefit from the experience of a funding partnership that brings together charitable trusts, private individuals and central and local government to work with charities in a new way, we have joined forces with the Inspiring Scotland initiative.

ECPAT made a major contribution to the successful introduction of the Sex Offenders Act in 1997.

Now, the charity wants to appoint a full-time parliamentary officer so that the UK’s lawmakers continue their focus on the problem. We are contributing a total of £88,852 to the salary of that officer for a three-year period.

This programme is providing significant, sustained support for a number of Scotland’s charities to focus on a common issue.

By putting in place long-term funding for these charities and encouraging the delivery of clear, measurable objectives, we hope to see some significant improvements in specific areas of Scottish life.

The project will hopefully protect more children in the future. The practical results should include better-informed parliamentarians and increased pressure on the government to uphold the rights of trafficked victims with greater protection for those who manage to escape. Specific duties will include servicing the relevant All Party Parliamentary Group (APPG) and coordinating meetings between the APPG and other voluntary sector organisations.

Inspiring Scotland’s initial focus will be on the 32,000 young people between the ages of 14 to 19 who have not been able to make a successful transition between school and further education, training or work. These are young adults who are already disengaged – or at risk of disengaging – from society but who have not yet been affected by unemployment or become involved in serious substance abuse or criminal activity. Areas of operation will include Glasgow City, Dundee, West Dunbartonshire, North Ayrshire, Inverclyde, Edinburgh City, East Ayrshire and Clackmannanshire. Our contribution will be a total of £750,000 over three years.

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The Opera Group

Lost Chord

8 Esmée8 Fairbairn Esmée Fairbairn Foundation Foundation Annual Annual Report & Report Accounts & Accounts 2008 2008

Chem Trust

Change Ashby Now!

ECPAT

Inspiring Scotland

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Looking beyond the mainstream Strands The Main Fund apart, we also allocate support to specific strands of work. These change over time.

But they consistently express Esmée Fairbairn’s desire to make a difference in special areas of interest.

– – – –

In 2008, we focused on four issues – each highly relevant to contemporary concerns in the UK. They were: Biodiversity New Approaches to Learning Food Museum and Heritage Collections Some examples of work funded through the Strands during the first year are: Biodiversity Roehampton University: Biodiversity begins with the most basic forms of life. That is why we are providing support for a year-long survey of groundwater organisms in Devon, Dorset and Wales. This work, for which we are providing a grant of £76,088, will also form the basis for designing subsequent surveys for other areas.

Marine Biological Association: Artificial structures in the marine environment such as sea defences, wind farms or wave farms can serve an important additional purpose. With slight modifications in surface texture, they can also provide habitat niches for a wide variety of species. A grant of £195,000 over three years is supporting a research project into these efforts.

New Approaches to Learning Mathematics in Education and Industry: With widespread disquiet about the standard of mathematics among school leavers in the UK, a group of maths educators and funders have joined forces to design, test, evaluate and roll out a new approach to GCSE teaching.

Based on a model used in Holland, it puts maths in contexts students understand and has substantially raised levels of pupil achievement.

Funding of £178,000 will support the development and trialling of a new curriculum.

10 Esmée Fairbairn Foundation Annual Report & Accounts 2008

University of York: Many children find the move from primary to secondary school a challenge. For vulnerable learners, that challenge can be particularly daunting. To help them, the University’s Centre for Reading and Language has devised a programme of regular sessions that develop pupils’ emotional literacy and resilience.

A grant of £77,410 is funding the testing phases.

Food Local Food Links: Despite well-publicised initiatives, the quality of most school meals remains poor. In Dorset, Local Food Links is changing that with help from the Foundation.

Working with schools and local farmers, the organisation now supplies high quality, interesting, balanced and nutritious menus mostly produced from sustainable or organic sources. A new £99,202 grant over two years will extend the programme from eight schools to 22 and also expand services to include residential homes for the elderly.

Research into Ageing: As many as 85% of older people in long term care suffer from malnutrition. Part of the problem is diminishing pleasure in food as the perceptions of taste and smell deteriorate with age. A new research project, to which Esmée Fairbairn is contributing £70,000 over three years, aims to overcome this problem by applying stateof-the-art flavour chemistry to optimise naturally occurring taste combinations and to explore the use of natural flavour enhancers.

The aim is to improve food enjoyment and balance enhanced taste with clinical nutritional needs.

Museum & Heritage Collections Falmouth Art Gallery: How important is the nature and condition of a frame to the painting it holds? For many artists, the frame was considered to be an integral part of the work of art.

Recognising this, Falmouth Art Gallery, which has a collection of works by artists such as BurneJones, G F Watts and Ben Nicholson, is embarking on a programme to catalogue and conserve the frames on all major paintings in its collection, which attracts 50,000 visitors annually. The Foundation is helping with a grant of £56,820.

Culture and Sport Glasgow: The Burrell Collection, one of the city’s most renowned cultural attractions, is a major repository of medieval tapestries. Yet this collection, one of the most important in the UK, has never been properly catalogued.

The Foundation is helping to remedy that situation with a grant of £91,500. Concentrating on some 50 English, Swiss/German and Franco/Flemish works, the three-year project will photograph the tapestries (making the images available online) and report on their condition so that conservation work can be prioritised.

Finance fund In some cases, organisations can be best served by investments rather than grants. Esmée Fairbairn recognises this – particularly for organisations that can demonstrate the capacity to manage the demands of non-grant funding. In such cases, support can include loans, guarantees, equity or quasi-equity finance depending on the specific needs of the organisation or the requirements of the project to be funded.

The CLT fund: Community Land Trusts (CLTs) provide permanently affordable housing, with an emphasis on meeting that need in rural areas.

They do this by enabling occupiers to pay for the use of their property at reasonable rates while locking in the value of land, planning gain and other equity benefits on behalf of future occupiers. Since CLTs are community-owned, the benefits continue in perpetuity.

However, finding funds for CLT schemes is often difficult.

Commercial lenders consider the risks to be greater than for other housing developments since CLTs tend to have weak balance sheets and their lead individuals often lack sufficient relevant experience.

To help fill the gap, the Foundation has worked with the Tudor Trust and Venturesome to set up the Community Land Trust Fund, with the aim of establishing around 30 operational CLTs and the construction of around 150 affordable homes over the course of the next four years. Esmée Fairbairn has allocated £125,000 to provide technical support and £875,000 in the form of initial development capital, of which we expect to recover 90% six years after the initial investment.

Big Issue Invest Social Enterprise Fund: Working with intermediary funds allows the Foundation to invest in a wide range of organisations while reducing the need to build in-house infrastructure to identify and manage these investments.

Esmée Fairbairn’s involvement with Big Issue provides a good example.

This Social Enterprise Fund, in the form of an unregulated Collective Investment Scheme, will provide capital financing for a wide range of social enterprises with significant community or environmental impact. Although this is the first fund structure for Big Issue Invest, the organisation has extensive experience in social enterprise investment earning reasonable rates of return.

Consequently, the Foundation plans to become a founder investor with a sum of £750,000 for a 10-year period.

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Rethinking Crime and Punishment Stimulating debate based on sound evidence Over the last seven years the Esmée Fairbairn Foundation has spent approximately £4 million on some 60 projects to determine the viability of alternatives to prison. It has been one of the most substantial programmes ever to investigate the subject and involved research, inquiries, demonstration projects, events, campaigns and surveys.

In 2008, the final report on this work was launched.

Crime in the UK is a subject of national concern. So, in particular, is the growth in the prison population and prison overcrowding. These facts of 21st century life prompted the Esmée Fairbairn Foundation to seek to raise the level of debate about how this country responds to crime, its uses of custody and to identify effective alternatives to imprisonment. Appropriately, Rethinking Crime and Punishment (RCP) had its launch at that ancient symbol of incarceration, the Tower of London, in December 2001 under the Chairmanship of Baroness Linklater.

In the first phase of the programme, which lasted until 2005, RCP funded 57 projects.

These consisted of research studies, awareness and education campaigns, inquiries, events and community involvement exercises.

Other key projects included: Significantly one of these was a commission of inquiry headed by • A public education initiative by the Magistrates Association Lord Coulsfeld, a recently retired Scottish Judge. Its findings resulted and Probation Boards to inform the public about community in the report Crime, Courts and sentences called: Local Crime, Confidence. The Coulsfield inquiry Community Sentence recommended that the sentencing • A restorative justice observer framework should restrict programme involving politicians, the imposition of custody and judges and journalists embrace alternatives wherever • A programme to develop more possible and that the trend effective approaches to offenders towards increasing sentence with mental health needs severity should be reversed. It further concluded that confidence From the start, RCP also in criminal justice should be commissioned regular research increased through more on public attitudes. This transparent sentencing, better measures of effectiveness and established that there is greater public education, and widespread scepticism about that the delivery of community prison and found that there is sentences should be undertaken considerable interest in locally in close cooperation with alternatives. the courts and the public.

This work has succeeded in one of the programme’s original objectives: to stimulate debate and pave the way for change.

12 Esmée Fairbairn Foundation Annual Report & Accounts 2008

The culmination of this second phase was the launch of RCP: The Manifesto at a House of Lords event with RCP Chair and Esmée Fairbairn Trustee Baroness Linklater as host. Since work on RCP began in 2001, statistics suggest that the promotion of alternatives to prison shows signs of having a positive impact. The population of offenders to be sentenced to immediate imprisonment fell from 7.9% in 2001 to 6.7% in 2008. The numbers receiving imprisonment for a year or less peaked at 83,000 in 2002 and fell to 69,000 six years later.

RCP’s first phase of work closed in December 2005 with the publication of RCP: The Report.

22 recommendations were identified based on the evidence of RCP. Among these was the need for: • Greater public, political and professional awareness of alternatives to prison • More opportunities for sentencers and the public to engage constructively with the work of probation and locally available programmes as alternatives to custody • Wider availability of restorative justice options at different stages of the criminal justice process • Stronger commitment to prevention and communitybased options for young offenders • New and specific measures to strengthen community-based sentences for women • A more adequately resourced treatment-based approach to drug-dependent offenders • A broader range of initiatives outside prison for mentally disordered offenders

RCP’s second phase began in December 2005. Its aim was to put into practice some of the specific recommendations of Crime, Courts and Confidence, and RCP: The Report. This phase had three strands. One was a large-scale pilot project, based in the Thames Valley, that tested new ways to engage with the public and to influence what forms of unpaid work should constitute community sentences.

The second strand involved magistrates and judges obtaining first-hand experience of their local probation and community based projects and programmes and then joining in a dialogue about how they might be used and improved. This took place in three places: the Thames Valley, Cheshire and Greater London.

The third strand supported a national awards scheme run by the Howard League for Penal Reform to recognise, encourage and publicise best practice in community work with offenders through the publication of a handbook describing the work of the winners.

Specific initiatives that might be attributed, at least in part, to RCP include government efforts to support and increase confidence in community penalties, greater community involvement in criminal justice through community and problem-solving courts, reviews into the ways of reducing the imprisonment of women, children and the mentally disordered and greater emphasis on residential drug rehabilitation.

But these achievements are only the start. Although RCP’s work is now completed, it leaves a considerable body of evidence and practical proposals that probation practitioners, judges, magistrates and others involved in the criminal justice system can apply in their work. It also leaves a legacy for government.

According to the House of Commons Justice Committee:

“Local areas and individuals cannot operate in a vacuum.

The government needs to implement a sustained strategy for increased use of community punishments.

This is crucial for boosting public confidence in the robustness and efficacy of non-custodial sentences.”

Clearly the debate, which the Foundation helped to stimulate through RCP, will continue.

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A multi-faceted approach to funding Esmée Fairbairn supports a wide range of projects in the areas of culture, the natural environment, education and learning and enabling disadvantaged people to participate more fully in society in the UK. 1. Battersea Arts Centre £200,000 towards the organisation’s five year business plan for this internationally known historic venue that has been inventing ‘the future of the theatre’ for the past quarter of a century.

5. Galgael Trust £55,000 over two years for a programme that offers woodwork as a practical way out for lives stricken by the social problems of one of Glasgow’s most deprived neighbourhoods.

9. Calthorpe Project £20,000 over two years towards core costs to support work including horticultural and food growing sessions for vulnerable people in the King’s Cross area of Central London.

2. People’s Trust for Endangered Species £50,000 over two years to help identify the locations of England’s remaining traditional orchards – endangered in themselves – and the many species of invertebrates at risk.

6. Greenwich & Docklands Festivals £50,000 in support of a 2008 Festival programme aiming to develop new ways to integrate art and sport in the run up to the London 2012 Olympic Games.

10. Landlife £74,888 over three years to this organisation that focuses on improving the biodiversity – and beauty – of land not conventionally deemed to be ‘of conservation value’.

Overleaf on page 16

11. CleanupUK £50,000 over two years to set up a web-linked network of volunteer litter-pickers in every neighbourhood in every local authority in England.

3. The Avison Ensemble £70,000 over two years to help celebrate the music of 18th century master Charles Avison with a programme of outreach projects, master classes, lectures and concerts in and around his native Newcastle.

4. Council for Scottish Archaeology £15,843 over three years to provide free hands-on workshops and resources to schools, as well as Cape Farewell training opportunities for teachers This is helping establish the and project volunteers.

Thetoproject concept of climate change in the will help schools with the national consciousness by bringing implementation ofeducators the new artists, scientists and Scottish schools’ curriculum using together and displaying the results of practical archaeology their collaborative effortsto to introduce an expanding of audience. two-year grant elements science,A social science of £88,000 is helping to meet the and arts subjects through challenge of funding core costs. experimental learning.

7. Little Angel Theatre £54,000 over three years to help one of the UK’s foremost puppet theatres to strengthen its professional development courses.

8. Barbara Melunsky Refugee Youth Agency £105,000 over three years to expand programmes aimed at developing youth work among refugees throughout London, Clean Breakprogrammes based including Foundedcooking, in 1979 bymusic, two women around dance, prisoners, this unique theatre company drama and art. works with female prisoners, ex-offenders and those at risk of criminality because of drug or alcohol dependency. The Foundation is providing £150,000 over three years to help produce a learning programme for 150 participants involved in mounting two new prison-themed touring productions every year.

14 Esmée Fairbairn Foundation Annual Report & Accounts 2008

12. British Trust for Ornithology £180,150 over five years to help with the compilation and production of Bird Atlas 2007-11, which aims to chart the distribution of all bird species breeding and wintering in the Herpetological Conservation Trust UK and Ireland.

Animals like the common frog and the grass snake (collectively known as herpetofauna) are becoming alarmingly rare – largely due to habitat damage and loss. A £179,000 grant supports further conservation of these species at county and regional levels; integrating to save them within the UK Biodiversity Action Plan.

Battersea Arts Centre

People’s Trust for Endangered Species

The Avison Ensemble

Council for Scottish Archaeology

Galgael Trust

Greenwich & Docklands Festivals

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Little Angel Theatre

Barbara Melunsky Refugee Youth Agency

Calthorpe Project

Landlife

CleanupUK

British Trust for Ornithology

16 Esmée 16 Fairbairn Esmée Fairbairn Foundation Foundation Annual Annual Report & Report Accounts & Accounts 2008 2008

The Report

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Chairman’s statement

As the world goes through a period of extreme economic stress, the responsibilities of a foundation such as ours become all the greater.

The organisations which we support generally have limited financial leeway, even in times of comparative plenty; in a recession, the needs that they address inevitably increase, while the challenges they face in fundraising become even more formidable. At the same time, our own resources are affected by the widespread fall in financial markets.

It is all the more important, therefore, at a time such as this that we make every pound we spend count. A new approach to grant-making was, fortuitously, introduced at the start of 2008. Although, as described in the Chief Executive’s report, we are still refining its operation, its objectives of greater responsiveness to needs, a more open and less rule-bound framework and more rigorous scrutiny of every grant could not be more timely, and the initial indications suggest encouraging benefits arising from the new system.

At the end of the year, the Foundation underwent further change as four Trustees retired, with an aggregate of 128 years service between them. John Fairbairn and Jeremy Hardie, Trustees for 42 and 38 years respectively, were my immediate predecessors as chairmen.

They led the Foundation through a period of exceptional growth in grant-making, building – and inspiring – the executive team. Ashley Down, over 32 years, and Martin Lane Fox, over 16 years, made particular contributions in the areas of our investment policy and environmental grant-making respectively.

All four contributed hugely to the Foundation’s standing and success; we give them profound thanks on behalf of the many beneficiaries of the Foundation. In turn, we are very pleased to welcome Thomas Hughes-Hallett and Beatrice Hollond as new Trustees.

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The executive team has responded with great commitment and spirit to the challenges that came during the year, ranging from the substantially higher level of applications arising from the new grant-making system to the turmoil in the financial markets. We are hugely grateful for the work of every member of the team. Vandana Gopalji and Liliana Lance both left during the year and we extend particular thanks for their contribution over the years and good wishes for the future.

We are delighted to welcome Jenny Dadd on the grant-making side and Clare Kinnersley on the finance side.

Tom Chandos, Chairman

Grant-making overview

The Esmée Fairbairn Foundation aims to improve the quality of life throughout the UK. We do this by funding the charitable activities of organisations that have the ideas and ability to achieve change for the better. We take pride in supporting work that might otherwise be considered difficult to fund. During 2008 we committed around £22 million towards a wide range of work.

We channel our funding through two routes: Main Fund Our Main Fund distributes the majority of our funding. Responsive to shifts in demand, it supports work that focuses on the UK’s cultural life, education and learning, the natural environment and enabling people who are disadvantaged to participate more fully in society. We are particularly interested in supporting work through the Main Fund that: > Addresses a significant gap in provision > Develops or strengthens good practice > Challenges convention or takes a risk in order to address a difficult issue > Tests out new ideas or practices > Takes an enterprising approach to achieving its aims > Sets out to influence policy or change behaviour more widely.

Strands and other funds We also allocate funds to specific strands of work. These will change over time, but overall they express our desire to make a contribution in particular areas of interest. We currently have four funding strands and more information about them is on pages 10-11.

We have a small Development Fund that we use to investigate new ideas and approaches, for example testing ideas for possible future funding strands. Through this Fund we are supporting a pilot programme in Northern Ireland with The Henry Smith Charity to encourage the development of a strong and resilient voluntary sector and a new generation of leaders.

In our Finance Fund we are exploring the opportunities for alternatives to grant finance, building on our previous loans programme.

As part of this exploration we made some grants during the year.

We also have a TASK (Trustees’ Areas of Special Knowledge) fund to support organisations known to individual Trustees.

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Grant-making overview

2008

Value (£) No of projects

Main Fund Arts, culture, heritage Citizenship or community development Education Environment Human rights, conflict resolution Prevention or relief of poverty Other charitable purposes Main Fund total

64,505

Eligible Main Fund applications received

4,824

4,359

70

3,017 1,815 3,823

61 Successful Main Fund applications 34 Full grant listings are set out on 45 pages 21 – 30

1,615

21

1,023

Grant-making by country 21 £ per head of population

1,571

15

17,223

267

19

Strands total

2,957

48

360 400 990 266

2 3 107 n/a

22,196

427

Development Fund (inc Northern Ireland pilot) Finance Fund TASK grants Grants Plus †

Scotland

7 9

Northern Ireland

£0.23

Wales UK-wide

£0.22 £0.17 £0.10 ††

† Refers to additional support (e.g. consultancy and 13 business planning support) given to grant-holders. † †

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267

£0.31

England

Strands Biodiversity strand 615 Food strand 642 Museum & Heritage Collections strand 583 New Approaches to Learning strand 1,117

Total

Average grant size

Grants covering two or more countries.

Main Fund Grants list

Organisation

Amount (£)

20 Stories High £60,912 Towards the salaries of the two artistic co-directors over two years to work with artists, participants and audiences from BME and other socially excluded communities.

About with Friends £43,000 Towards running costs over three years to expand beneficiary and volunteer numbers and to develop income earning services to strengthen their financial position.

A Clean Sweep £63,746 Towards the expansion of a social firm that employs people with learning difficulties over two years.

A Space Towards the salary of the director and core costs over three years.

£68,500

Action on Addiction £53,145 Towards the salary of the project manager and marketing costs over three years of the M-PACT programme which supports 10 - 17 year olds whose parents have drug and/or alcohol problems.

ADFAM National £383,975 Towards the salaries of a stakeholder involvement co-ordinator, administrator and running costs of the new membership support project over five years, to develop Adfam into a national umbrella organisation for self-help/peer support groups and services, and professionals working with families affected by drugs and alchol.

Age Concern Lancashire £45,000 Towards the salary of an employment advisor and a programme of work over three years aimed at helping over 50s into work or volunteering activities.

Alternatives Activity Centre Towards the engagement of a suitable consultant to undertake a detailed feasibility study in relation to a potential new charity shop initiative.

Amazonails Towards staff, administration and marketing costs.

£5,700

£31,000

Anawim £73,764 Towards the salary and immediate costs over two years of the project manager of the Anawim project which works with vulnerable women.

Anti-Apathy £75,900 Towards core costs and the salaries of the creative director and project manager over three years to support a growing platform of innovative projects.

Aqoon Community Education and Training Services Towards the salary of an outreach worker, and other associated project costs, to pilot a school/parent/ educational agency liaison programme to benefit 50 newly arrived Somali children living in Leicester with special needs.

£30,600

ARC Stockton Arts Centre Ltd £40,250 Towards salary and project costs over three years to develop a theatre group aimed at young asylum seekers and refugees aiming to increase their skills and reducing exclusion.

Archaeology Scotland Towards the salary of a volunteer co-ordinator over three years for the Volunteer Outreach Project.

Arcola Theatre Towards developing the artistic programme over two years.

£15,843

£120,000

Artlink West Yorkshire Towards the salary of the project manager supporting work using creative arts with vulnerable groups.

£8,593

ArtsMill Towards the salary of a gallery administrator.

£5,800

Association of Visitors to Immigration Detainees £70,000 Towards the salary of the director and running costs over three years to expand work with people detained under immigration legislation.

Bail for Immigration Detainees £104,017 Towards revenue costs, including the salary of the legal officer and manager over three years.

Ballet Lorent Ltd Towards the costs of presenting “Angelmoth” in London.

£15,000

Barbara Melunsky Refugee Youth Agency Ltd £105,000 Towards the salaries of two youth support workers and rent over two years and a fund to support youth activities where young refugees work together to improve their lives and the lives of other refugees.

Basantu Outreach Project Towards core costs over two years.

£20,000

Bath Preservation Trust Ltd Towards fees for the preparation of the business plan.

£12,000

Believe to Achieve £14,220 Towards an additional programme of confidence developing activities for children aged 5 to 11 years from deprived communities in Wolverhampton.

Birmingham Book Festival Towards the costs of expanding the organisation’s Writers in Schools programme.

£12,770

Birmingham Law Centre £20,000 Towards the costs over two years of providing emergency accommodation for homeless and destitute asylumseekers that have no recourse to public funds.

Birmingham Open Spaces Forum £34,342 Towards the salary of a part-time project co-ordinator and a contribution to other core costs over two years.

The Blind in Business Charitable Trust £75,000 Towards the salary and on costs of a project worker over three years to give blind school leavers the confidence and skills to find work.

Bradford Study Support Network Towards tutor and project costs of one-to-one study support for 68 minority ethnic families in Bradford over two years.

£35,852

British Trust for Ornithology £180,000 Towards the salary and travel costs of the co-ordinator over five years for the ‘Bird Atlas 2007-11’. An estimated 50,000 volunteers will assess changes in distribution and numbers of the UK’s birds.

Britten Sinfonia Ltd Towards the annual series of evening concerts in Norwich over two years.

£40,000

Building Bridges in Burnley £25,000 Towards the charity’s revenue shortfall.

Bungay Arts & Theatre Society Towards salaries and costs over two years to widen activities.

£60,000

Calthorpe Project £20,000 Towards core costs over two years, to run horticultural and food-growing sessions for a number of marginalised and vulnerable groups within the community to reduce isolation and increase skills.

Cambridge SOFA Towards the salary of the volunteer development worker over two years.

Campaign for Better Transport Charitable Trust Towards core costs over three years to deliver better public transport across the UK. Campaign to Protect Rural England Towards the salary of a campaign manager over three years.

£45,000

£300,000

£130,740

21

Main Fund Grants list Organisation

Amount (£) £78,116

Citylight £56,500 Towards the salary of a project worker over two years to support female victims of sex trafficking and female sex workers.

Catch 22 Magazine CIC £40,000 Towards the salary of the director over three years and towards two projects.

CleanupUK £50,000 Towards the salary of the chief executive over two years to support volunteer littercollecting groups.

Care & Repair England Towards the salary of a housing action support officer over two years to improve the housing and living conditions of older people.

Catch21 Productions Ltd £5,000 Towards consultancy fees necessary to develop a business and marketing plan.

C-Change for Inclusion £47,900 Towards the costs over three years of establishing a dating, friendship and networking agency run by and for people with a learning disability in the west of Scotland.

Cedar Housing Nottingham £37,340 Towards costs over three years for the establishment of an integrated residential and educational support service for homeless young women aged 16 to 25 years.

Centre for Alternative Technology Charity Ltd £68,470 Towards the costs of the research director, co-ordinator and energy modelling and economic analysis over two years.

Cerebral Palsy Sport £98,656 Towards the costs of delivering sport and recreational opportunities over three years for children with Cerebral Palsy.

Change Ashby Now! £40,250 Towards the salary of a project manager over two years to oversee youth work and develop a programme of activities in addition to expanding income generation opportunities at The Hub. Chemicals, Health, and Environmental Monitoring Trust £113,700 Towards the salary of the director and two projects to reduce the impact of chemicals on wildlife over three years.

Cheshire Wildlife Trust (CWT) £74,000 Towards the salary of a new head of conservation over two years to stabilise and rebuild the work of this Wildlife Trust.

Children in Scotland £103,470 Towards the salary of an early years’ policy officer over three years to make a lasting impact on Scottish early years policy, provision and practice.

Chrysalis Arts Development £44,550 Towards six artists’ residencies based at North Yorkshire collections and heritage sites including professional support and exhibitions over 19 months.

Citizen Organising Foundation Towards the salary and costs of a project officer and rent/office costs over three years for the ‘Citizens for Sanctuary’ campaign.

£155,241

City & Guilds of London Art School £35,000 Towards the salary of the deputy director.

Climate Outreach Information Network Towards the core activities over two years.

£30,000

Clockwise £50,000 Towards the costs over two years of launching credit union bank accounts, to meet the needs of financially excluded people.

Community Money Advice £40,000 Towards the salaries of two key employees over two years during CMA’s step-change development, to expand capacity in response to the growing demand for debt advice.

Community Network £45,539 Towards the salary of a new project manager over two years to expand the use of teleconferencing as a means of overcoming loneliness and isolation.

Corecog £33,263 Towards volunteer expenses over three years for those volunteering with this refugee community organisation which aims to assist Francophone Africans and small community groups in London.

Cornwall Trust for Nature Conservation £58,450 Towards salary of the project officer over three years to improve protection of the inshore cetacean populations and their wider ecosystems around Cornwall and the Isles of Scilly.

Council for Education in World Citizenship - Cymru £58,225 Towards the salary of a project officer over three years for the development of philosophy for children in Welsh Schools.

Cove Park Towards a residency programme over three years.

£105,000

Croydon Youth Development Trust £10,000 Towards the salary of the operations manager over two years to enable the growth and productivity of the Trust.

Cued Speech Association UK £39,089 Towards the salary of the CEO, administrator, co-ordinator, fundraiser and overhead costs to build capacity and maximise the longer term impact of Cued Speech Association’s work.

Dada-South £60,000 Towards the costs of a deaf and disabled artists’ advisory network over three years.

Deafinitely Theatre £44,411 Towards the development of new work over three years.

22 Esmée Fairbairn Foundation Annual Report & Accounts 2008

Dene Valley Community Partnership £27,000 Towards the salary of the centre manager over three years to run the community resource centre and one-stop shop.

Derby Quad Ltd £75,000 Towards the launch event and the costs of the Format and the Film Commissioning project over three years.

East Durham Partnership £75,000 Towards the salary and costs of the social enterprise manager post over three years.

ECPAT UK £88,852 Towards the salary of a parliamentary officer over three years.

English Touring Opera £68,000 Towards rehearsal costs of ‘Handelfest’, a new programme for 2009.

Equal Arts £60,000 Towards project costs over three years of Equal Arts, engaging older people across the North East in high quality arts projects, to improve the quality of their lives and combat isolation.

Every Child a Chance Trust £40,000 Towards evaluation costs and national roll out of Every Child a Reader, a programme for 6-9 year olds who are struggling to learn to read.

Ex Cathedra £50,000 Towards the cost over two years of running the organisation’s 40th anniversary programme to affirm Birmingham as a city of choral excellence.

Eye Citizen £6,000 Towards the cost of a research project that will inform the organisation’s future business model.

Faith in Community (Scotland) £66,662 Towards the salary of the community profiler over three years to equip people from deprived areas to develop and analyse data and to use it to drive community development programmes.

Family Friends £10,000 Towards core costs and the salary of the family & volunteer co-ordinator on the befriending and mentoring scheme which helps hard-to-reach disadvantaged families.

Federation of Stadium Communities Towards the salary of a development manager over two years to broker partnerships between major sports clubs and their local communities.

Female Prisoners Welfare Project/Hibiscus Towards staff salaries, travel and project costs over three years, of maintaining family links and resettlement work.

Finchley Children’s Music Group Towards the cost of staging a new children’s opera.

£70,748

£49,200

£10,000

Organisation

Amount (£)

firstsite £100,000 Towards the costs over three years of firstsite’s Artist Space programme, a dedicated space for interplay between artists and audience in the creative process.

Fishing for Litter South West £38,332 Towards the salary of a part time project co-ordinator and additional evaluation costs over two years.

Forum for the Future £240,000 Towards core staff and overhead costs of the sustainable Bristol region project.

Foxglove Covert Local Nature Reserve £16,000 Towards the revenue costs of creating a wet meadow area, with board walk and hide.

FunderFinder £60,000 Towards the cost of developing web-based services which will increase access and convenience for grantseekers trying to identify appropriate trust funding.

Galgael Trust Towards the costs of the Navigate the Future programme to empower disadvantaged people.

£55,000

Gateshead Visible Ethnic Minorities Support Group £45,000 Towards extending existing projects that use community arts to support social inclusion and to develop new ones while generating further income.

Gayle Mill Trust Ltd Towards core costs in the first year of operation.

£20,000

Gemin-i.org £168,211 Towards the salaries of the primary sales and schools officers and associated project costs of expanding Rafiki into primary schools.

Germination £14,423 Towards the salary and running costs of developing Our Future Project to develop young people into citizen journalists.

Global Canopy Foundation Towards costs of a global project to encourage companies to identify and disclose the commercial drivers of deforestation in their supply chains.

£43,880

£50,000

Greenwich Citizen Advocacy Project £61,823 Towards the salary of the advocacy development worker over two years to ensure that parents with a learning disability receive more equitable assessments, support and services, leading to improved outcomes for families locally and nationally.

Groundswell UK £72,192 Towards the salary and running costs over two years of the Enterprise Support Project enabling homeless people to increase their independence.

Hastings & Rother Trust Ltd Towards core costs over three years to develop this trust’s role as a community anchor.

£60,000

Haven Products Towards the salary of a project development worker over three years to increase the opportunities for 45 employees with disabilities to experience and sustain work in mainstream settings.

£33,000

Health and Happiness in the Highlands £37,294 Towards the health awareness project over two years to raise awareness across the Highlands of health issues faced by adults with a learning disability.

Heart n Soul Towards the salary of the communications officer over three years.

£83,961

Helford River Children’s Sailing Trust £5,000 Towards the cost of a consultant to assist in the development of a strategic plan.

High Bickington CPT Ltd Towards the revenue shortfall over three years while the Trust becomes financially self sustaining through its community owned property development activities.

£50,430

HighTide Festival Productions Ltd £49,988 Towards the production costs of eight new plays over two years.

Graeae Theatre Company £49,000 Towards project and evaluation costs over three years, to run professional development support improving access to employment in mainstream theatre for disabled actors.

Grapevine (Coventry and Warwickshire) Ltd Towards the salary of a community connections worker and associated costs to build positive and reciprocal relationships between people with a learning disability and others in their communities.

Greenwich & Docklands Festivals Towards the costs of a programme of work for the Greenwich & Docklands Festivals.

£90,050

Green Alliance Trust £225,000 Towards core policy work over three years to advance the economics and politics of the environment.

Hillside Clubhouse £30,000 Towards the salary of a part-time clubhouse worker over two years to develop an external catering project to offer real work and training opportunities for people with mental health problems.

Ice and Fire Theatre Company £45,000 Towards the salaries over two years of a new part-time media and communications officer and the director of Actors for Human Rights, a national network of professional actors dedicated to drawing public attention to contemporary human rights abuses.

Inquest £150,000 Towards revenue costs over three years for casework and policy work on the deaths of children and young people in prison and of prisoners with mental health and/or drug and alcohol problems.

Institute of Criminal Policy Research (ICPR) £25,000 Towards the research and dissemination costs of an investigation into a Sentencing Commission.

Institute of Welsh Affairs Towards the salary of a junior researcher over three years.

£75,000

Interest Link Borders £50,000 Towards the salary of the co-ordinator to support the transition befriending programme for young people with learning difficulties, and other associated project costs over three years.

International Centre for Prison Studies (ICPS) £150,000 Towards the staffing and running costs over three years of a programme of work drawing on European experience to influence the debate about penal policy.

International Futures Forum £20,000 Towards the costs of producing and testing kitbags to develop a new way of building psychological capacity and alleviating mental health problems.

International Institute for Environment & Development £72,000 Towards the salary of a project manager over 18 months for the Greenhouse, a sustainable voluntary sector building.

Intoart £43,959 Towards the salary of the director over two years, and the costs of evaluation.

Islington Play Association £20,000 Towards project costs for a multi cultural play project which will catalogue and circulate games from around the world played by children from Islington’s diverse ethnic communities.

Jackson’s Lane Community Centre £10,000 Towards the costs of a feasibility study.

Jennyruth Workshops Ltd. £15,000 Towards running costs over two years for training workshops for moderate to seriously disabled persons with learning difficulties.

Joseph Rowntree Charitable Trust £15,000 Towards further development of the UK Participatory Assembly to build greater democratic engagement across Europe.

Jumpstart Kidz Ltd Towards the salary of a part time development worker to enable the organisation to increase its revenues and reduce reliance on grant funding.

Kainos Community Towards the salary of the operations director to enable the ‘Challenge to Change’ programme to expand into more prisons over three years.

£2,700

£160,980

23

Main Fund Grants list Organisation

Amount (£)

Kids Stop Community Interest Company £5,200 Towards the costs of marketing materials and salary of a new post to increase outreach work and earned income.

Kilcooley Women’s Education & Development Group Towards the salary and costs of the director over two years.

£60,000

Kirkgate Studios and Workshops Towards an intercultural project where groups of elders share their craft knowledge to be filmed by teenagers for showing on the BBC Big Screen in Bradford.

£15,705

Kneehigh Theatre Trust Ltd Towards development costs of The Asylum project.

£65,000

Knowsley Domestic Violence Support Services Towards the salary of a part-time partners service worker.

£15,000

Landlife £74,888 Towards the development of new conservation ideas and practices over three years.

Leicester City of Sanctuary £15,000 Towards core costs over two years during the organisation’s early stages of development in making Leicester and its surrounds a more welcoming place for asylum seekers and refugees.

Limehouse Project £58,319 Towards the salary of the project co-ordinator and associated costs over two years to improve social cohesion by actively engaging BME women in the wider social community and public life of Tower Hamlets.

Little Angel Theatre £54,000 Towards a professional training and development programme for puppeteers and puppet-makers over three years.

Lloyds TSB Foundation for Scotland £750,000 Towards a new £10m fund over three years for vulnerable 14-19 years olds.

Locomotion - The National Railway Museum at Shildon £60,000 Towards the salary of a workshop manager over two years to train young people in heritage engineering and conservation skills as part of the Back on Track project.

London Advice Services Alliance £50,000 Towards the salary of a marketing and business development manager over two years.

London Wildlife Trust £170,928 Towards the salary of the three core biodiversity conservation posts over three years.

Lost Chord £75,000 Towards the costs of interactive musical sessions in 20 residential homes over three years to stimulate responses from dementia sufferers.

Manchester International Festival Towards the costs over 18 months of a new programme inspiring cultural innovation across Manchester.

£72,500

Mansfield & Ashfield Safety Centre £73,765 Towards the costs over two years of establishing a service for male victims of domestic abuse in North Nottinghamshire.

Marine Conservation Society £50,000 Towards the launch and first year of the major MSC litter champions campaign to promote local practical action to tackle the increasing levels of marine litter.

MED Theatre £68,000 Towards a community based theatre project delivering Dartmoor Elements, a two-year integrated participatory performing arts and education programme on climate change for communities and visitors in the National Park.

Mind Active Towards the salary of the project manager over two years, to ensure meaningful engagement for older people living in care homes, and develop successful community activities.

£39,597

Miracle Theatre Trust Ltd £60,000 Towards the salary of a tour coordinator and production and touring costs over three years.

Missing People £92,910 Towards the costs over three years of the Runaway Helpline, a confidential freephone service for young people who have run away or have been forced to leave home.

Muslim Youth Helpline Towards the salary of the helpline supervisor and contribution to core costs over four years.

National Coalition of Anti-Deportation Campaigns Towards the salaries of core staff over three years supporting failed asylum seekers to challenge unjust/illegal deportation orders.

£178,500

£99,000

National Literacy Trust £90,000 Towards the salaries of the project director and the information and communications officer over three years.

National Museums and Galleries of Northern Ireland £84,358 Towards the salary of the project researcher and a contribution to general project costs over three years.

New Heights Warren Farm Community Project £20,000 Towards the core costs over two years, during a period of rapid development.

New Writing South Towards the salary of the operations manager/deputy director.

24 Esmée Fairbairn Foundation Annual Report & Accounts 2008

£20,000

North Highland Connections £60,000 Towards the salary of the director and assistant over two years to take the arts to the scattered populations of the North Highlands.

North Highland Forest Trust £87,733 Towards the salaries of the biodiversity forester and part time support staff over three years, promoting sustainable management of biodiversityrich woodlands.

North of England Civic Trust Towards the salary of a part-time project officer over two years.

£34,400

Northern Print Towards gallery programme costs over three years.

£45,000

Old Museum Arts Centre Towards the salary and costs of a project support manager and marketing costs over three years.

£128,614

openDemocracy £7,500 Towards the Migrant Voice project to bring unheard voices and the testimonies of the experience of refugees in Britain into the public debate during Refugee Week 2008.

Optimum Population Trust £19,100 Towards the production of two reports on population and environment.

Oriel Davies Gallery Towards a three year programme of exhibitions, residencies and tours.

£60,000

Parents for Children Towards the salaries of a project officer and specialist support worker over two years, for a new support service for children affected by foetal alcohol syndrome.

£72,000

People & Planet £21,000 Towards the salary and overheads of a festival stewarding social business to guarantee funds for their environment and global poverty campaigns.

People United £30,000 Towards the salary of the chief executive and a contribution to disseminating and extending ongoing projects.

People’s Trust for Endangered Species £50,000 Towards the salary of an orchard mapping officer and costs of data purchase over two years to map England’s traditional orchards and raise public awareness of their importance as a habitat for rare species and as a heritage landscape feature.

Pesticide Action Network UK £73,788 Towards the costs of a Pesticide Free Park Programme over two years working with London boroughs challenging them to be pesticide free in their maintenance of public parks and green spaces.

Philharmonia Orchestra £132,535 Towards the UK tour of PLAY.orchestra, the world’s first ‘virtual orchestra’ reaching communities across the UK.

Organisation

Amount (£)

Polka Theatre £40,000 Towards the costs of two theatre/ educational collaborations with the Natural History Museum and the Science Museum over two years to test out ways to create the best new theatre for children with integrated education projects.

Pori Natur a Threftadaeth £99,350 Towards the salary of the project coordinator and marketing costs, plus biodiversity monitoring over three years.

Positive Action for Refugees and Asylum Seekers Towards core costs over three years of intensive support and emergency provision to destitute asylum seekers in Leeds.

£53,310

Positive News Publication £5,000 Towards the costs of running a weeklong residential environmental journalism course for 16 disadvantaged young people in partnership with The Arvon Foundation.

Positive Parenting Publications & Programmes Towards the expansion of parenting support work into Rotherham.

£40,000

Prime Cut Productions Towards costs over three years of research and development projects.

£55,000

Prisoners’ Advice Service Towards the salary and costs of the managing solicitor over three years.

£75,000

Project North East £141,594 Towards staff and costs over two years of developing a distance learning management programme for voluntary and community organisations.

PRS Foundation £20,000 Towards a fourth round of the joint commissioning fund with the Performing Rights Society Foundation and Scottish Arts Council.

Quicksilver Theatre Towards the costs of creating an innovative, interactive performance installation, made for and with an integrated audience of disabled and able-bodied 3 - 5 year-olds to improve communication skills.

£14,425

ReCOM Ltd £16,877 Towards the establishment of two new computer clubs for vulnerable adults.

Relief International UK (RI-UK) £30,000 Towards the costs over three years of an education initiative to bring together UK students with peers in five different countries in a collaborative crosscultural online exchange.

Responsible Nano Forum £30,000 Towards the start up costs of the Responsible Nano Forum which links NGOs, consumers and business, to engage and communicate with the general public and support the responsible development of nanotechnologies.

Rhyl Youth Action Group Towards the salaries of the project/ sustainability manager and a part time project administrator over two years.

£58,790

Riverside Credit Union Ltd £51,188 Towards the salary of the product development and marketing manager over two years, to progress plans for a prepaid Visa card for members.

Royal National Theatre £150,000 Towards a pilot programme over two years of participatory, digital and new media activities.

Rushmere Commoners £12,000 To carry out heathland restoration within the fringe of Ipswich over three years, involving local community groups and schools in habitat and species recording and investigating the site’s cultural history.

Rutland Pink Glove Support Services Towards the salary of a development manager over two years to enable expansion of service delivery, leading to financial sustainability.

£45,000

Shelter £237,413 Towards the costs over three years of the pilot Knowsley Child Support Service aimed at meeting the needs of homeless children and thereby breaking the cycle of inter-generational homelessness.

Sikh Community Care Project (SCCP) £10,000 Towards the cost of establishing and running a youth development initiative over two years.

Slow Down London Ltd £10,000 Towards the administrative and operational costs of Slow Down London.

Soil Association £397,881 Towards developing membership over three years to increase unrestricted core income.

Sound Affairs Towards the development of an innovative, collaborative, music and dance piece and its performance predominately in Wales.

Sounds New Towards the costs of an annual contemporary music festival.

Sahara in Preston £30,000 Towards the salary of a project worker over two years to support a range of support services to BME women who are victims of domestic violence and forced marriage.

South Bank Centre Towards the costs over two years of the first phase of ‘Standard Bearers: Great Works for Young People’.

£15,000

£5,000

£220,000

£81,168

South Downs Council for Voluntary Service £15,443 Towards the salary of the part time trustee development officer and to strengthen the management and governance of local voluntary groups.

Sandbag Climate Campaign £30,750 Towards salary costs to support the launch of a new public campaign on climate change and emissions trading.

South West Foundation £60,000 Towards the Foundation’s Small Grant Programme over two years, giving grants to rural organisations with an income of less than £15,000.

Salford City Council Towards the salary of a volunteering and training manager at Ordsall Hall over three years.

Scottish Borders Community Orchestra Towards salaries and overheads over two years.

£20,000

Scottish Environment LINK £75,000 Towards core funding over three years.

Scottish Information Literacy Project £41,598 Towards the salary of the project officer, subsistence and dissemination costs to further develop the draft National Information Literacy Framework in Scotland; to reach more beneficiaries of a wider age range.

Scottish Opera £15,000 Towards the project costs of developing teachers’ skills in using the expressive arts as a tool for teaching.

Second Wave, Centre for Youth Arts £50,000 Towards the costs over two years of Out of Danger, a youth-led programme for creating safer communities and to help lever in other funds.

Sedbergh Book Town Literary Trust Towards the second Festival of Ideas in Sedbergh (England’s Book Town).

£12,000

Sense About Science £127,028 Towards the salary and costs of the programme manager over three years.

South West Wildlife Trusts Towards the costs of identifying best practice in engagement, recruitment and retention of members across the third sector.

£19,500

Spike Island Towards core costs over two years.

£15,000

St Magnus Festival Towards costs over three years to nurture the talents of emerging conductors and composers.

£38,500

St Peter’s Community & Advice Centre £41,600 Towards project costs and risk assessment training over two years for a new project that will support, advise and guide Bangladeshi women affected by domestic violence.

Stour Valley Arts Towards the salary of the assistant curator over three years, and a contribution to commission costs.

£50,000

Streets Alive! Ltd. £54,000 Towards the salary over three years of apart-time development and training co-ordinator and website development costs to develop street parties in the UK.

25

Main Fund Grants list Organisation

Amount (£)

Suffolk Real Nappy Network Towards the salary of an outreach worker over two years.

SuperGay Towards the festival costs, aiming to reduce the impact of marginalisation and exclusion for the Lesbian, Gay, Bisexual and Transgender community in Middlesborough.

£11,348

£3,500

Survivors of Bereavement by Suicide £53,000 Towards the salary of an administrator and project costs over two years to engage business planning support.

Sustainable Brampton £20,000 Towards the salary of a volunteer co-ordinator over two years to develop community self-reliance in this ‘Transition Town’.

Sustainable Northern Ireland Programme £75,000 Towards staff costs over three years to support work with local authorities on environmental issues.

Tate Gallery Towards ‘Fifth Floor’, a seven week long exhibition whose content and organisation will be shaped by local communities and visitors working in partnership with artists.

£70,000

Thames Reach £22,619 Towards the costs of research into what motivates homeless people to plan and think positively about money.

The 999 Club and Lady Florence Trust £20,000 Towards core costs over two years to run three centres for vulnerable people.

The Aire Centre (Advice on Individual Rights in Europe) £72,172 Towards the salary of a legal project manager over two years to run domestic violence and trafficking projects and oversee the AIRE Centre’s case work.

The Ashden Awards for Sustainable Energy Towards research costs into sustainable local energy generation.

£50,000

The Avison Ensemble Towards costs over two years.

£70,000

The Baring Foundation Towards project costs over two years, supporting parents with learning difficulties and their children.

£20,000

The Boatshed Multi Use Centre Towards the salary of the project co-ordinator over three years.

£20,588

The Bridge Church £57,107 Towards the salaries of existing café staff over two years, whilst working to become more financially self-sustaining and increase social benefit.

The Bury St Edmunds Theatre Management Ltd Towards the costs over three years for the planning and delivery of the Rural Tour.

£75,000

The Carers Centre £57,730 Towards the salary of an outreach worker and associated project costs over three years to identify and support young adult carers (aged 16 - 25) to overcome the disadvantages they face.

The Centre for Innovation in Voluntary Action £10,000 Towards the Sarah Dodds Enterprise Accelerator fund to support individual and social enterprises in her memory.

The Clive Project Towards the salary of the family and friends service co-ordinator and evaluation costs over three years, to enable family members, including children, affected by early onset dementia to live more fully.

£76,802

£59,190

The Devon Child Assault Prevention Project £5,000 Towards the fees of a consultant to undertake strategic planning with staff and trustees who work with children to develop self protection strategies and reduce vulnerability to abuse.

The Funding Network Towards core costs over three years.

£120,000

The Holburne Museum £150,000 Towards revenue funding during the closure for capital refurbishment over three years.

The Ideas Foundation £60,798 Towards the costs over two years of delivering creative vocational projects to disadvantaged 14 - 19 year olds.

The Institute for Fiscal Studies Towards research and analysis costs of a study of environmental and distributional effects of fuel duty and vehicle excise duty.

£74,075

The Oil Depletion Analysis Centre Towards costs over two years of establishing a network to spread awareness among local authorities of peak oil and to stimulate policies to protect communities against its worst impacts.

£20,000

The Opera Group Towards the salary of the executive producer over 15 months.

£48,592

The People and Work Unit £101,386 Towards the salary of a community development worker over three years to develop a model of community based support, guidance and encouragement for people to progress into and through further and higher education.

26 Esmée Fairbairn Foundation Annual Report & Accounts 2008

The Plough Arts Centre £43,978 Towards the salary of a part time visual arts and education officer over three years to implement and promote a visual arts development plan.

The Poetry Translation Centre Ltd. £40,000 Towards the costs over two years of a tour of six high-profile poets from Africa and Asia, and their British poet-translators.

The Prince’s Trust £118,309 Towards the salary of the national project manager and mentor training and evaluation costs over two years.

The Courthouse Project (Otley) Ltd £20,000 Towards the salary of a centre manager and programming development over two years.

The Crumbs Project Towards the salary of the café manager over three years to train a mixed disability workforce in a pre-employment programme.

The Pier Arts Centre £120,000 Towards the centre’s core costs in its first three years of operation in its enlarged building.

The Prospects Foundation £20,000 Towards the salary of a part-time development worker over two years to oversee the ‘Local Action: Global Impact’ programme which will enable disadvantaged communities to address the threat of climate change and benefit from its opportunities, utilising a community leadership model.

The Samling Foundation £50,000 Towards the salary of a general manager and sustainability planning consultancy costs over two years to expand beneficiary numbers and geographic reach and to improve the financial sustainability of this organisation.

The SeaChange Arts Towards the salary over two years of an outreach worker to build a network of performers from migrant communities and facilitate their access to employment opportunities.

£26,000

The Shark Trust £113,648 Towards the salary of the director of conservation over three years to deliver shark conservation objectives through science, education, influence and action.

The Small Charities Coalition £70,000 Towards the salary of a small charities co-ordinator, and running costs over two years, to develop and pilot support for small charities and develop this new organisation.

The University of Buckingham £250,000 Towards the costs over three years of the establishment of a History of Art Department.

The Young Composer of Dyfed Towards the costs over three years of improving musical composition in schools in Dyfed.

£30,000

The Young Vic Theatre £270,000 Towards a programme of international collaborations over three years.

Theatre Royal Bath Ltd Towards a programme of festivals and in-house productions for family audiences over three years.

£90,000

Theatre Sans Frontieres Towards costs related to the London run of “Like Water for Chocolate”.

£5,000

Organisation

Amount (£)

Third Generation Environmentalism Ltd Towards the salary of the global climate change director over three years.

£141,750

Tinderbox Theatre Company Ltd Towards a programme of new writing initiatives over three years.

£72,000

Tomorrow’s Wales Towards the costs of a development officer over two years.

£50,000

TravellerSpace Towards core costs and business consultancy costs.

£20,000

Trees for Cities £45,000 Towards project costs over three years, working with disadvantaged local people to transform the natural environment, create sustainable green spaces and enhance the sense of community in deprived estates in London.

UK Association of Gypsy Women £51,245 Towards the salary and costs for a policy development worker over three years to improve communication between the gypsy community and local and central government.

Undercurrents Foundation Towards staff costs over two years of training 30 citizen journalists.

£35,000

Uninvited Guests £55,000 Towards costs over two years to develop participatory work, education work, and plan for the future.

Wilfred Owen Association £5,000 Towards a series of events in Shrewsbury to commemorate the 90th anniversary of Wilfred Owen, and the signing of the 1918 armistice.

Wiltshire Wildlife Trust Towards revenue, marketing and infrastructure costs of the WWT’s North Wiltshire farming enterprise over three years.

£174,661

Womankind Worldwide £25,000 Towards the shortfall of the costs of an animated film ‘Once Upon a Time There Were Two Little Girls’ to deter women from being trafficked for sexual exploitation.

Women Like Us £37,768 Towards the costs of research and development work to pilot a new referral service for women who are out of work but need hard skills training plus information on childcare, housing and benefits issues, in order to enter employment.

Women’s Aid Federation of England Towards the salary and costs of the press and publicity co-ordinator over three years to raise awareness and improve public understanding of domestic violence.

Total No of Grants

£90,000

£17,222,764 267

University of Cambridge £162,475 Towards printing and disseminating the final report of the Primary Review.

University of Liverpool Towards the salary of a training manager over three years for the national roll out of the Get Into Reading Project.

£90,000

University of Newcastle Towards the salary of a research assistant on marine protected areas.

£73,725

Volunteer Centre Chelmsford Towards the cost of their Older People’s Community Action Group over three years.

£70,318

WAG Screen £19,980 Towards a filmed dramatisation of the poem, ‘The Lady of Shalott’ for Lincoln’s Museum and its unique three-screen auditorium for Tennyson’s bicentenary, 2009.

Watts Gallery Towards the salary of the marketing manager and costs over two years.

£117,000

Westminster Befriend A Family Toward core costs to provide befriending, mentoring and family support to families with children aged 0-8 years.

£10,000

WFA Media & Cultural Centre Towards course costs and deaf sign interpretation costs.

£20,721

27

Strands Grants list Biodiversity

Food

Organisation Amount (£)

Freshwater Biological Association £90,000 Towards the cost over two years of the re-publication of the classic freshwater invertebrate guide and bespoke freshwater fauna on-line data recording module.

Organisation

Marine Biological Association Towards research costs over three years to improve the design of artificial urban coastal habitats to maximise biodiversity.

£195,000

NERC Sea Mammal Research Unit £49,023 Towards the salary of a research assistant and modifications to a photo identification programme for grey seals.

North of England Zoological Society Towards the cost of training for new regional volunteer wildlife recorders.

£17,254

Roehampton University £76,088 Towards the cost of a survey of groundwater organisms in Devon and Dorset and subsequent design of sampling protocols for other areas.

University of Nottingham £85,023 Towards the salary and project costs over two years, to evaluate the impact of anti-parasitic drugs on invertebrates.

University of Sussex £102,942 Towards the cost of research validation for reptile survey work in the National Amphibian and Reptile Recording Scheme (NARRS) over two years.

Total No of grants

£615,330 7

Museum and Heritage Collections Amount (£)

Community Food Enterprise Ltd £70,000 Towards the costs over two years of the continued operation of existing Social Food outlets and expansion of the service into new areas.

Community Food Initiatives North East £90,000 Towards the costs over three years of the expansion of community based food initiatives into rural Aberdeenshire and Moray.

IGD £9,000 Towards the costs of a two day workshop engaging food industry leaders with academics, professional bodies and others to develop a high level strategy to change attitudes to food in the UK. Liverpool Young Culture Action Group £4,000 Towards the cost of developing food related activities at Liverpool Children’s Festival.

Local Food Links Ltd £99,204 Towards the scale-up of the Local Food Links hot school meals service in Dorset over two years and to explore the provision of a user-led catering service for older people.

New Economics Foundation £75,000 Towards the costs of a detailed baseline study of food-related social injustice in the UK. Research into Ageing £70,000 Towards research into improving the experience of food among older people through enhanced taste perception over two years.

Sustain £204,267 Towards the costs of a campaign over three years to introduce legislation requiring public bodies to purchase food supplies from sustainable sources.

The Caroline Walker Trust £20,000 Towards the cost of learning resources for staff who support children and adults with learning disabilities to encourage eating well and improve nutritional health.

Total No of grants

£641,471 9

Organisation Almond Valley Heritage Trust Towards the salary of a collection development officer to work on the shale oil collection.

£12,000

Culture and Sport Glasgow £91,500 Towards researching and cataloguing the Burrell’s medieval tapestry collection.

Edinburgh College of Art £76,634 Towards the conservation, interpretation and exhibition of the historic plaster cast collections.

Falmouth Art Gallery Towards conserving and cataloguing ornamental frames in the collection.

£56,820

Florence Nightingale Museum Trust Towards collection care and documentation as part of the ‘Inspiring Change’ project.

£48,000

Grant Museum of Zoology and Comparative Anatomy Towards documentation of the spirit store.

£8,615

London Borough of Hackney £32,675 Towards the cost of a conservation survey and preventative conservation work to increase public access to the collections.

Oglander Roman Trust Towards the costs of documentation and care of the Trust’s collections.

£55,000

Scottish Mining Museum Trust Towards the cost of digitising the Museum’s collection of photographs.

£19,592

Strawberry Hill Trust £60,000 Towards the cost of the restoration and display within the Yellow Bedchamber.

The Dartington Hall Trust £50,000 Towards the salaries of a conservation co-ordinator and conservation officer, plus a contribution towards specialist materials.

Valence House Museum, London Borough of Barking and Dagenham £16,623 Towards the costs of specialist care to preserve and digitise the Samuel Williams and Son film collection West Dunbartonshire Council Towards the salary over two years of a technology curator to work in the Sewing Machine Collection.

Total No of Grants

28 Esmée Fairbairn Foundation Annual Report & Accounts 2008

Amount (£)

£55,578

£583,037 13

Development Fund Grants list

New Approaches to Learning Organisation Amount (£)

AccessArt £24,525 Towards project costs inspiring the use of sketchbooks as a creative tool to support and promote creativity across the primary schools.

Association of School and College Leaders £144,802 Towards costs over three years of the development of multi-lingual language awareness in primary schools.

Faculty of Education, Glasgow £15,000 Towards improving support systems for the post-school transition of young people with additional needs.

Faculty of Education, Glasgow Towards the development of new approaches to reading via use of visual texts.

£7,523

Institute for the Future of the Book £93,000 Towards exploring how new media can be used to generate active reading, creative writing and fresh enthusiasm for literature amongst young people.

Institute of Education £36,189 Towards developing new teachingand-learning strategies for classical instrumental tuition, in order to increase motivation, achievement and inclusion amongst children.

Learning to Lead £40,000 Towards evaluation and training costs of a national pilot of Learning to Lead ‘School Community Councils’ in 12 secondary schools.

LIFT for Learning £125,433 Towards the salary over three years for the communications and strategy director of DigiSmart, a pioneering ICT and literacy project.

Organisation

Amount (£)

The Edge Foundation £7,500 Towards research costs of projects offering hands on learning opportunities designed to engage and motivate young people of all abilities, linking schools, communities and employers.

The Henry Smith Charity £353,916 Towards supporting a strong and resilient voluntary sector in Northern Ireland, jointly funding six organisations through a partnership with The Henry Smith Charity.

The Engine Room Towards a peer-led project for hardto-reach year 11 boys.

Archbishops’ Council of the Church of England £6,000 Towards Welfare Futures and the Church - a study on the potential implications of the church’s involvement with welfare provision.

£12,700

University of Exeter £44,500 Towards research costs to reconstruct the community role of further education colleges in six selected communities in England over the last 30 years.

Total No of grants

University of Exeter, School of Education and Lifelong Learning £63,875 Towards project costs of a researchbased intervention to shift KS1 children from procedural knowledge of arithmetic towards a more principled understanding.

Finance Fund Grants list

University of Strathclyde £14,969 Towards evaluating Cognitively Guided Instruction, an innovative pedagogy in numeracy with primary teachers.

University of York £77,410 Towards research and evaluation costs of a small group intervention programme for year seven children, to support vulnerable learners in their transition to secondary school.

Total No of Grants

£1,116,923 19

Organisation

£359,916 2

Amount (£)

Battersea Arts Centre Towards the organisation’s five year business plan leading to enhanced financial sustainability by 2013.

£200,000

Community Finance Solutions Towards business advice for Community Land Trusts, providing affordable housing in rural areas.

£125,000

New Economics Foundation Towards the salary of the head of business and finance researcher.

Total No of Grants

£75,000

£400,000 3

Mathematics in Education & Industry £178,000 Towards a new maths curriculum for GCSE over two years which is more relevant to pupils’ real experience.

Newcastle University £35,914 Towards the costs over two years of developing a replicable professional development and creative writing programme for primary and secondary schools.

School Councils UK £150,000 Towards enabling schools to achieve accreditation for their School Council, over three years.

School of Education, Social Work and Community Education College of Arts and Social Sciences University of Dundee £11,950 Towards research into the value of virtual learning environments for engaging disaffected pupils with Maths and other subjects.

Sussex School of Education Towards research into the value of formative assessment in schools.

£33,633

29

TASK Grants list Organisation

Amount (£)

Action on Addiction

£3,000

Kent Association for the Blind

Age Exchange

£3,000

Kids Company

£15,000

£15,000

Live Music Now

Alde and Ore Association Almeida Theatre Company Ltd Anna Freud Centre

£7,000 £10,000

£5,000

The Place To Be

£15,000

The Playground Studio

£5,000

£4,500

The Right to Life Charitable Trust

£3,000

London String Quartet Foundation

£5,000

The Royal Choral Society

Medical Aid for Palestinians

£5,000

The Royal Marsden Cancer Campaign £30,000

£15,000

Army Benevolent Fund

£7,500

Milstead School PTA

£5,000

The Salvation Army

Arvon Foundation Ltd

£5,000

Multiple Sclerosis Trust

£5,000

The Social Market Foundation

£15,000

Beaminster Festival of Music and the Arts

£5,000

Bishopsbourne Church Appeal Fund

£8,000

Brooklands Museum Trust Ltd

£3,000

Business in the Community

£10,000

Butterfly Conservation

£15,000

C.L.O.W.N.S

£4,000

Charlie’s Challenge

£3,000

Child Bereavement Charity

£10,000

Child Bereavement Charity

£10,000

ChildHope (UK)

£15,000

chinadialogue

£15,000

Chiswick House and Gardens Trust

£15,000

City Arts Trust Ltd

£5,000

Clonter Farm Music Trust

£5,000

Confidential and Local Mediation

£10,000

Contemporary Glass Society

£5,000

Council for Assisting Refugee Academics

£5,000

Dorset Child & Family Counselling Trust

£15,000

Dovedale Arts

£10,000

Edinburgh Youth Orchestra Society

£5,000

English National Opera

£15,000

Exford Youth Club

£15,000

Exmoor Calvert Trust

£3,000

Exmoor Youth Project

£15,000

Forward Arts Foundation

£10,000

Friends of St Luke’s Church, Simonsbath

£15,000

Gardening Leave

£5,000

Glyndebourne Productions Ltd

£10,000

Greenhouse Schools Project Ltd

£15,000

Hay-on-Wye Organ Appeal

£10,000

Hereford Cathedral Perpetual Trust

£15,000

Hope and Homes for Children

£5,000

Household Cavalry Museum Trust

£5,000

Human Rights Watch

£4,000

Institute of Cancer Research

£15,000

Intercontinental Church Society

£3,970

Intercontinental Church Society

£10,030

£3,000

Music at Plush

£10,000

The Suffolk Foundation

£15,000

Pushkin Prizes in Scotland

£15,000

The Tall Ships Youth Trust

£10,000

Radnorshire Wildlife Trust Ltd

£15,000

The Whitley Fund for Nature

£11,000

Rainbow Trust Children’s Charity

£10,000

Trinity Sailing Trust

£10,000

Reprieve

£15,000

UHI Development Trust

£15,000

Research Autism

£5,000

University of Oxford

£11,500

Royal College of Music

£5,000

War Memorials Trust

£2,500

Royal Society for the Protection of Birds £7,000

Womankind Worldwide

Royal Society of Literature

£15,000

School Food Matters

£15,000

Total No of Grants

School of Oriental & African Studies

£15,000

Second Chance Sense About Science Service to the Arts in Leeds St John’s, Smith Square Charitable Trust St Luke’s Church, Simonsbath

£2,000 £15,000 £5,000 £6,000 £15,000

St Mary’s Music School

£4,000

Stewardship

£5,000

Sutherland Trust

£7,500

The Alice Fund for Poetry and the Healing Arts The Almshouse Association

£10,000 £3,000

The Aquila Trust

£10,000

The Attingham Trust

£15,000

The Black Watch Heritage Appeal

£5,000

The Clan Sinclair Trust

£5,000

The Countess of Munster Musical Trust £5,000 The Country Trust

£10,000

The Cuba Studies Trust

£15,000

The English Concert

£15,000

The Facial Surgery Research Foundation - Saving Faces

£15,000

The Friends of Greenmead

£13,500

The Gate Theatre

£15,000

The Irene Taylor Trust

£5,000

The King’s School, Canterbury

£7,000

The National Hospital Development Foundation

£5,000

The New School Butterstone

£15,000

The Open Trust

£15,000

John Muir Trust Ltd

£5,000

The Peel Institute

£4,000

John Muir Trust Ltd

£5,000

The Pendyffryn Children’s Trust

£3,000

30 Esmée Fairbairn Foundation Annual Report & Accounts 2008

£3,000 £990,000 107

Financial Review

The Foundation committed £22.2 million (2007: £25.2 million) in new grants during the year. The reduction in grant-making spend was due to a slow build in the first part of the year following the introduction of a new approach to grant-making.

We intend to return to pre 2008 spending levels during 2009. Grants reported in the Statement of Financial Activities include funds returned from cancelled and returned grants.

Costs in support of the Foundation’s grant-making activities fell from £1.6 million to £1.4 million because of reduced employee head count. Governance costs have increased to £0.3 million from £0.2 million.

The cost of generating funds, which is made up of investment management and oversight fees, increased to £4.9 million from £3.9 million. This was due to greater outperformance by equity managers leading to higher performance fees in the year.

The Foundation also had £1.3 million in programme related investments at the end of the year (2007: £1.2 million). These investments are made up of loans, quasi equity and other investments made by the Finance Fund.

Risk Assessment The Trustees are responsible for the management of the risks faced by the Foundation. The detailed review and consideration of risk management is delegated to the Audit Committee. The Trustee Board reviews the Foundation’s risk position, internal control assessment and its compliance with relevant statutory and finance regulations annually.

The Foundation has a clear organisational structure with documented lines of authority and delegation, which is reviewed regularly by the Audit Committee and the Trustee Board. The Foundation also has segregation of duties in regard to governance, management, grant-making, finance and investment.

Procedures are in place for documenting decisions, actions and issues.

The Trustee Board reviews and approves the Foundation’s strategic plan, risk map and annual budget. The Trustee Board regularly reviews management accounts including actual results and forecasts and reports from grant-making. The Audit, Finance and Administration, and Investment Committees regularly report to the Trustee Board.

In order to evaluate and manage risk the Foundation has a risk mapping process to identify the major risks that could impact on the strategic aims as laid out in the Foundation’s Strategic Plan. This process identifies the major risks the Foundation faces, the likelihood of occurrence, the significance of the risk, any mitigating controls that are in place and seeks to identify actions and resources required to reduce these risks further.

The Foundation’s investment activities are its main financial risk. This is mitigated through regular review of investment policy, management of asset allocation, monthly independent performance reporting, market and manager updates and the support of investment advisers.

Reserves and Expenditure Policies All of the Foundation’s funds are unrestricted.

The Foundation’s expenditure policy is set at a level intended to sustain the real value of the capital base whilst preserving the real purchasing power of the expenditure through time.

For planning purposes the annual expenditure target is set by reference to a three year rolling plan.

Expenditure targets may be over or under-spent in an individual year in a controlled manner reflecting demand and the quality of applications.

The Foundation’s grant-making policy is explained in the Grant-making overview on pages 19-20.

31

Investment Review

The total return on investments in the year was -17.6% (2007: +5.7%) against the Foundation’s multi asset tailored blended benchmark of -21.5% (2007: +6.3%). The market value of investments at year end was £740.8 million (2007: £955.4 million).

The Foundation’s investments have been materially impacted by the economic climate. In response to the volatile and uncertain markets a higher level of cash has been maintained throughout the year in order to place the portfolio in a more defensive state. The actual asset allocation at year end comprised:

2008 %

2007 %

Change %

Public equity investments 45.5 47.0 (1.5) Fixed income investments 4.3 8.3 (4.0) Property investments 9.9 12.4 (2.5) Alternative investments 27.6 15.0 12.6 Investment cash 14.8 17.4 (2.6) Other investment balances (0.1) 0.5 (0.6) Derivatives (2.0) (0.6) (1.4)

100.0 100.0 0.0

The main changes in asset allocation outside valuation movements during the year were: > a reduction in public equity investments reflecting a move out of equities into alternative investments; > within public equity investments a reduction of the proportion of UK to overseas equities from 55.5% to 31.3% reflecting a move into other developed and emerging market equities; > a reduction in fixed income investments with a move out of emerging market debt; and > an increase in alternative investments with a further allocation to the Foundation’s hedge fund, private equity and venture capital portfolios reflecting the Foundation’s continued commitment to these asset classes.

Contribution to the outperformance of the benchmark during the year came from non-investment grade credit and equities. Underperformance came from property and investment grade credit investments.

The market value of investments at the end of the year is detailed in note 9 to the financial statements.

32 Esmée Fairbairn Foundation Annual Report & Accounts 2008

Investment Policy The Foundation’s investments are made in accordance with the investment powers set out in its Scheme.

The Foundation’s long-term investment objective is to maintain the real value of its capital base whilst providing a predictable, stable and sustainable level of income to support the Foundation’s activities.

The Foundation manages the inherent risk of investments through diversification. Investments are made across a broad range of asset classes, geographies, investment managers and investment strategies.

The Foundation’s policy is that all investments are externally managed by investment managers whose performance is measured against agreed benchmarks.

Investment monitoring is carried out through custody reporting, independent monthly and quarterly performance reporting and regular manager review meetings. The Foundation has a policy of hedging a substantial part of currency exposure in the portfolio using a passive currency overlay. The Foundation continues to minimise investments in funds dependent upon leverage or credit. The Foundation’s segregated equity portfolios do not invest in companies that derive their main sources of revenue from tobacco-related products.

Charitable Scheme

The operation of Esmée Fairbairn Foundation is governed by a Charity Commissioners’ Scheme, dated 14 January 2002, which enables the assets to be applied by the Trustees at their discretion for general charitable purposes. The scheme supercedes the original Trust Deed made on 20 January 1961 and a Charity Commission order granted on 20 January 2000 giving Trustees investment delegating powers.

The Charity Commission approved an incorporation of the Trustee body on 16 June 2008 in the name of The Trustees of Esmée Fairbairn Foundation.

The Foundation is a charity registered in England and Wales number 200051.

The Esmée Fairbairn Foundation exists and operates for the public benefit. Through its grant-making programmes it works to improve the quality of life throughout the UK. In determining its grant-making strategies, and in the administration of the Foundation generally, the Trustees have paid due regard to the guidance published by the Charity Commission under section 4 of the Charities Act 2006.

The Foundation’s Trustees are listed on the inside back cover of this report. The Trustee Board meets six times per year to oversee the delivery of the Foundation’s overall strategy. A number of Trustee committees support the work of the Foundation throughout the year. The current membership of the Audit, Finance and Administration and Investment Committees can also be found on the inside back cover.

Finance and Administration Committee The Finance and Administration Committee reviews and recommends to the Trustee Board annual budgets, staff remuneration and benefits, and human resources policies and procedures. It also oversees major property, ICT, governance and other projects.

Nominations Committee An ad-hoc Nominations Committee meets to make recommendations to the Trustee Board on the appointment of new trustees.

Investment Committee The Investment Committee formulates investment policy, oversees its implementation, manages overall asset allocation, monitors investment performance and reports to the Trustee Board.

Funding decisions All Trustees are members of the Foundation’s Main Fund Grants Committee who take decisions on all Main Fund grants above £75,000. A Grants Committee, comprising Trustees and Executive members, takes decisions on grants up to £75,000. The Trustee Board allocates budget and delegates decision-making on the Foundation’s funding strands to Strand Panels.

All strand grants over £150,000 go to the Trustee Board.

The Panels are made up of Trustees and have external experts as advisers. The Strand Panels report to the Trustee Board. Finance Fund investments in excess of £1million are referred to the Trustee Board.

Audit Committee The Audit Committee reviews and recommends systems of internal control on financial, governance and operational risks. It also reviews the draft annual report and accounts, meets with the Foundation’s external auditors and reports to the Trustee Board.

33

Trustees’ Responsibilities Statement Under the Scheme rules of the Foundation and charity law, the Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

The financial statements are required by law to give a true and fair view of the state of affairs of the Foundation and of the excess of income over expenditure for that period.

In preparing these financial statements, generally accepted accounting practice entails that the Trustees: > select suitable accounting policies and then apply them consistently; > make judgements and estimates that are reasonable and prudent; > state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements; > state whether the financial statements comply with the Scheme, 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 Foundation will continue in business.

The Trustees are required to act in accordance with the Scheme of the Foundation, within the framework of the Charities Act 1993. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the Foundation at that time, and to enable the Trustees to ensure that, where any statements of accounts are prepared by them under section 42(1) of the Charities Act 1993, those statements of accounts comply with the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Foundation and to prevent and detect fraud and other irregularities.

34 Esmée Fairbairn Foundation Annual Report & Accounts 2008

Disclosure of information to auditors The Trustees who held office at the date of approval of this Trustees’ report confirm that, so far as they are each aware, there is no relevant audit information of which the Foundation’s auditors are unaware; and each Trustee has 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 Foundation’s auditors are aware of that information.

In the name and on behalf of The Trustees of Esmée Fairbairn Foundation

Tom Chandos Chairman 26 March 2009

Independent auditors’ report to The Trustees of Esmée Fairbairn Foundation We have audited the financial statements of Esmée Fairbairn Foundation for the year ended 31 December 2008 which comprise the Statement of Financial Activities, the Balance Sheet and the Cash Flow Statement and the related notes. These financial statements have been prepared under the accounting policies set out therein.

This report is made solely to the Foundation’s Trustee body, in accordance with section 43 of the Charities Act 1993 and regulations made under section 44 of that Act. Our audit work has been undertaken so that we might state to the Foundation’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Foundation and its Trustee body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and auditors The Trustees’ responsibilities for the preparation of the financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice) are set out in the Statement of Trustees’ Responsibilities on page 34.

We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Charities Act 1993. We also report to you if, in our opinion, the Trustees’ Annual Report is not consistent with the financial statements, if the Foundation has not kept proper accounting records, or if we have not received all the information and explanations we require for our audit.

We read the other information contained in the Annual Report and consider whether it is consistent with the audited financial statements. We consider the implications for our report if we become aware

of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.

Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Foundation’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion In our opinion: > the financial statements give a true and fair view, in accordance with UK Generally Accepted Accounting Practice, of the state of the charity’s affairs as at 31 December 2008 and of its incoming resources and application of resources for the year then ended; > the financial statements have been properly prepared in accordance with the Charities Act 1993.

KPMG LLP 1 Forest Gate Brighton Road Crawley West Sussex 26 March 2009

35

Statement of Financial Activities For year ended 31 December 2008

Notes

Total Funds 2008 £’000

Total Funds 2007 £’000

2 2

31,491 515 32,006

35,631 349 35,980

Resources expended Cost of generating funds 3 & 5 Charitable activities 4 & 5 5 & 6 Governance costs

4,909 22,815 291 28,015

3,871 25,003 225 29,099

Incoming resources Investment income Other incoming resources

Net incoming resources Realised and unrealised gains/(losses) 9 on fixed asset investments

3,991

6,881

(216,941)

13,934

Net movement in funds Funds at 1 January 2008

(212,950) 937,754

20,815 916,939

724,804

937,754

Funds at 31 December 2008 The notes on pages 39 to 47 form part of these accounts.

The Foundation has no recognised gains or losses other than the net movement in funds for the year.

The net incoming resources and resulting net movement in funds in each of the financial years are from continuing operations.

36 Esmée Fairbairn Foundation Annual Report & Accounts 2008

15

Balance Sheet At 31 December 2008

Notes

Fixed assets Tangible fixed assets 8 Investment assets 9 10 Programme related investments

2008 £’000

2007 £’000

319 740,815 1,334 742,468

7,622 955,387 1,242 964,251

Current assets Assets held for sale Debtors 11 Cash at bank

Creditors: falling due within one year 12

7,456 596 1,835 9,887

38 3,421 3,459

(21,752)

(26,059)

Net current liabilities

(11,865)

(22,600)

Total assets less current liabilities

730,603

941,651

Creditors: amounts falling due after one year

13

(5,729)

(3,897)

Provisions: for liabilities

Net assets: representing unrestricted funds

14

(70)

-

15

724,804

937,754

The notes on pages 39 to 47 form part of these accounts.

The accounts were approved and authorised for issue by the Trustee Board on 26 March 2009.

Signed in the name and on behalf of the Trustees of Esmee Fairbairn Foundation:

Tom Chandos Chairman

37

Cash Flow Statement For the year ended 31 December 2008

Notes

2008 £’000

2007 £’000

Net cash inflow from operating activities 18 6,746 9,209

Cash flows from investments and capital expenditure Sale of investments 365,335 720,502 Purchase of investments (367,850) (757,578) Decrease in investment cash 56,711 23,655 Cash outflow on derivative financial instruments (61,716) 1,595 Increase in loan to subsidiary undertaking (557) Cash outflow to programme related investments (70) (86) Cash inflow from programme related investments 65 55 Cash inflow from finance lease commitments 21 29 Purchase of tangible fixed assets (271) (47)

Net cash utilised on investments and capital expenditure

(8,332)

Net decrease in cash and cash equivalents

(1,586)

(2,666)

Analysis of change in cash Cash balance at the beginning of the year Net cash outflow

3,421 (1,586)

6,087 (2,666)

Cash balance at the end of the year

1,835

3,421

38 Esmée Fairbairn Foundation Annual Report & Accounts 2008

(11,875)

Notes to the Accounts

1. Basis of accounting and accounting policies Basis of accounting The accounts have been prepared in accordance with applicable UK accounting standards and comply with the Charities Act 1993 and the Statement of Recommended Practice (‘Accounting and Reporting by Charities’) revised 2005. Except as otherwise stated, these financial statements have been prepared using the historic cost convention.

The Trustee Board consider all the funds to be unrestricted.

Consolidated accounts The Foundation has not prepared consolidated accounts as the results of its subsidiary undertakings are not material to the group.

Incoming resources Dividend income and related tax credits are recognised when the right to receive payment is established. Interest and other investment income is recognised on a receivable basis over the period to which it relates.

Resources expended The cost of generating funds, charitable activities and support and governance costs are charged to the relevant category or activity according to the area to which the expenditure relates. Expenditure incurred that relates to more than one cost category is apportioned based on the number of full-time equivalent staff allocated to that activity.

Grants are recognised as expenditure in the year in which they are approved and such approval has been communicated to the recipients, except to the extent that it is subject to conditions that enable the Foundation to revoke the award.

Tangible fixed assets Tangible fixed assets are included in the balance sheet at cost less accumulated depreciation. Freehold land is not depreciated. Freehold buildings are depreciated at 2% per annum. Leasehold improvements are depreciated over the term of the lease. Office and computer equipment is depreciated at between 20% and 33% per annum.

Depreciation is charged on a straight line basis over the assets’ useful lives.

Leased assets Assets obtained under finance leases are capitalised as tangible fixed assets and depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Foundation. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payments is charged to the Statement of Financial Activities over the period of the lease.

All other leases are operating leases. Operating lease annual rentals are charged to the Statement of Financial Activities on a straight-line basis over the term of the lease to the first rent review date.

Investments Quoted investments Quoted investments are stated at market value at the balance sheet date. Asset purchases and sales are recognised at date of trade.

Unquoted investments Unquoted investments are valued at the Trustee Board’s best estimate of fair value as follows: P ooled investments are stated at fair value, the basis of fair value being the market value of the underlying investments held. These valuations are provided by the fund managers and are subject either to independent valuation or annual audit.

Unquoted hedge funds are valued by reference to the market value of their underlying investments. These valuations are provided by the third party hedge fund administrators.

Private equity investments are held through funds managed by private equity groups. As there is no identifiable market price for private equity funds, these funds are included at the most recent valuations from the private equity groups where the: i. private equity group provides a fair value that complies with the International Private Equity and Venture Capital Valuation Guidelines; or ii. private equity group provides valuations that complies with International Financial Reporting Standards or US GAAP.

Where a valuation is not available at the balance sheet date, the most recent valuation from the private equity group is used, adjusted for cashflows and foreign exchange movements and any impairment between the most recent valuation and the balance sheet date.

Where a private equity group does not provide a fair value that complies with the above, the Foundation is unable to obtain a reliable fair value, and therefore these investments are held at cost.

Derivative financial instruments Derivatives are recognised in the Balance Sheet at fair value.

The Foundation uses forward currency contracts to reduce currency exposure in its investment portfolio. The basis of fair value of these forward exchange contracts is estimated by using the gain or loss that would arise from closing the contract at the balance sheet date. Managers of segregated funds also enter into derivatives as part of their portfolio risk management; fair values of these derivatives are provided by the fund managers.

Other investment balances Following a change in approach, the Foundation has classified debtors and creditors arising as part of the investment portfolio as “other investment balances” and grouped them together as part of investment assets.

39

Notes to the Accounts

Programme related investments Programme related investments that are loans are accounted for at the outstanding amount of the loan less any provision for unrecoverable amounts. Unquoted equity programme related investments are held at cost, less any provision for diminution in value, as the Foundation is unable to obtain a reliable estimate of fair value.

Provisions Provisions have been made for possible future liabilities arising from contracts entered into by the Foundation.

Realised and unrealised gains and losses on investments Realised and unrealised gains and losses on all investments, apart from progamme related investments, are included in the Statement of Financial Activities.

Realised and unrealised gains and losses on progamme related investments are included in charitable activities within the Statement of Financial Activities.

Pension The Foundation operates a defined contribution group personal pension plan for employees. The assets of the scheme are held separately from those of the Foundation.

The annual contributions are charged to the Statement of Financial Activities.

Foreign exchange Transactions denominated in foreign currency are translated at the exchange rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currency are translated at the rate ruling at the balance sheet date. All gains and losses on exchange, realised and unrealised, are reflected in the Statement of Financial Activities. Exchange gains and losses are allocated to the appropriate income or expenditure category.

Irrecoverable VAT Irrecoverable value added tax (VAT) is included in the Statement of Financial Activities within the expenditure to which it relates.

Related party transactions Material transactions with related parties are disclosed in the notes to these financial statements. The Foundation’s policy is for Trustees, executive or 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.

40 Esmée Fairbairn Foundation Annual Report & Accounts 2008

2. Income

Investment income Public equity investments Fixed income investments Property investments Investment cash

Other income Bank interest Interest from subsidiary undertakings Programme related investment interest Service charges and management fees Grants receivable

2008 £’000

2007 £’000

12,296 4,037 5,105 10,053 31,491

22,410 6,020 4,877 2,324 35,631

2008 £’000

2007 £’000

394 39 55 27 - 515

223 53 18 55 349

3. Cost of generating funds

2008 2007

Direct staff costs Support costs Investment related legal and professional fees Investment managers and advisers fees

Total costs of generating funds

£’000

£’000

159 181

88 38

162

263

4,407 4,909

3,482 3,871

Notes to the Accounts

4. Charitable activities

Main Fund Strands Development Finance TASK Total

Fund Fund 2008

£’000 £’000 £’000 £’000 £’000 £’000

Grants approved 17,223 2,957 360 400 990 21,930 Grants plus 245 - 9 12 - 266

17,468 2,957 369 412 990 22,196 Cancelled and returned grants (712) - - - - (712)

Total grants and grants plus 16,756 2,957 369 412 990 21,484

Movement on provision for bad debts - - - (97) - (97) Direct staff costs - - - - - 568 Support costs - - - - - 798 Consultants and advisers fees - - - - - 62

Total charitable activities 16,756 2,957 369 315 990 22,815

Total 2007 £’000

24,770 438

25,208 (1,936)

23,272 164 681 886 -

25,003

Grants approved in 2008, listed on pages 21 to 30 of the annual report, accompany these accounts.

Grants Plus is the cost of adding value over and above the grants we make in appropriate cases, such as organisational development, research and evaluation.

5. Support costs

Cost of generating Charitable Governance Total funds activities costs 2008 £’000 £’000 £’000 £’000

Support staff costs Office, premises and technology Consultants and advisers fees

Total support costs

105 73 3

181

401 384 13

798

127 59 2

188

633 516 18

1,167

Total support costs for prior year

38

886

142

-

Total 2007 £’000

575 428 63

1,066 1,066

41

Notes to the Accounts

6. Governance costs

2008 £’000

2007 £’000

Support costs

Trustees’ expenses

Auditors’ remuneration

Legal and professional fees Other governance costs

188 19 49 17 18

291

142 24 49 10 -

225

Trustees’ expenses for travel and subsistence were reimbursed to 7 (2007: 11) Trustees.

7. Staff costs

2008 £’000

2007 £’000

Salaries National insurance contributions

Pension contributions

Other staff related costs

Total staff costs

1,010 112 118 120

1,360

994 111 125 114

1,344

he Foundation operates a defined contribution group personal pension plan and makes employer contributions of 12.5% T when matched by a 5% employee contribution.

The average number of employees during the year calculated on a full time basis was as follows:

2008

Investment management and oversight Grant-making

Governance

Total number of employees

3 18 2

23

2007

2 22 1

25

The number of employees who received remuneration of more than £60,000 in the year was as follows:

2008

2007

£60,000 - £69,999

1 2 £80,000 - £89,999 1 1 £90,000 - £99,999

1 -

All the employees paid over £60,000 had employer contributions, equal to 12.5% of salary, under a defined contribution group personal pension plan.

42 Esmée Fairbairn Foundation Annual Report & Accounts 2008

Notes to the Accounts

8. Tangible fixed assets

Freehold Leasehold

property improvements

£’000 £’000

Cost At 1 January 2008 8,047 - Additions in the year - 212 Assets reclassified as held for sale (8,047) -

At 31 December 2008 - 212

Office & computer equipment £’000

Total £’000

264 59 -

323

8,311 271 (8,047)

535

Accumulated depreciation At 1 January 2008 525 - Depreciation charge for year 66 - Depreciation on assets reclassified as held for sale (591) -

At 31 December 2008 - -

164 52 -

216

689 118 (591)

Net book value At 31 December 2008 - 212 At 1 January 2008 7,522

-

107 100

216

319 7,622

The net book value of assets held under finance leases included above is £71,555 (2007:£32,459) and the depreciation charge on these assets for the year was £24,867 (2007:£14,189) During the year the Foundation offered the freehold property for sale. This property has therefore been reclassified with current assets as held for sale at the year end.

9. Investments i) Market value

Market value Market value as reclassified

2008 2007

£’000 £’000

Public equity investments 336,832 448,248 Fixed income investments 31,507 78,873 Property investments 73,578 118,889 Alternative investments 204,502 143,725 Investment cash 109,665 166,376 Other investment balances (500) 4,650 Derivative financial instruments (14,769) (5,374)

Total investments 740,815 955,387

Amounts Market value reclassified as reported 2007 2007 £’000 £’000

(12,555) (110,588) - (14,241) 141,376 - (5,374)

(1,382)

460,803 189,461 118,889 157,966 25,000 4,650 956,769

Investment cash includes all cash balances managed as part of the investment portfolio. In the prior year cash held by investment managers was included in public equity and short term deposits were included in fixed income and current investment assets. Other investment balances includes accrued income, amounts payable on investment purchases, amounts receivable on investment sales and accrued investment costs; in the prior year these balances were included in accrued income and expense in current assets and liabilities. Derivatives include all derivative assets and liabilities; in the prior year these balances were included in alternative investments. Prior year numbers have been reclassified to be consistent with this presentation.

43

Notes to the Accounts

Alternative investments comprise hedge funds, venture capital and private equity, commodity investments and a £10.0 million (2007: £10.0 million) investment in a subsidiary company which is carried at cost. This subsidiary invests in venture capital type investments and is managed as part of the Foundation’s investment porfolio.

The Foundation has entered into commitments to invest in private equity and venture capital funds. At the balance sheet date outstanding commitments totalled: £82.1 million (2007: £45.0 million). The Foundation models its cashflows based upon the original commitment. ii) Purchases, sales, gains and losses

Market Value

2007 Purchases

£’000 £’000

Sale proceeds £’000

Investment Market value gain/(loss) 2008 £’000 £’000

Market value Public equity investments 448,248 202,633 (233,419) (80,630) Fixed income investments 78,873 89,391 (104,980) (31,777) Property investments 118,889 - (1,495) (43,816) Alternative investments 143,725 75,826 (25,441) 10,392

789,735 367,850 (365,335) (145,831)

336,832 31,507 73,578 204,502 646,419

Realised and unrealised gains/losses on fixed asset investments of £216.9 million loss (2007: £13.9 million gain) in the Statement of Financial Activities is made up of the £145.8 million loss analysed above (2007: £6.8 million gain) and the £71.1 million loss (2007: £7.1 million gain) on derivative financial instruments disclosed in Note 9.iv. iii) Reconciliation to book cost

2007 Purchases

£’000 £’000

Book cost and realised gains Public equity investments Fixed income investments Property investments Alternative investments

Market value adjustment Unrealised gains/(losses)

Sale proceeds £’000

2008 £’000

406,307 87,000 93,529 119,810

706,646

202,633 89,391 - 75,826

367,850

(233,419) (104,980) (1,495) (25,441)

(365,335)

(20,926) (1,453) - -

(22,379)

354,595 69,958 92,034 170,195

686,782

83,089

789,735

-

367,850

-

(365,335)

(123,452)

(145,831)

(40,363) 646,419

2008 £’000

2007 £’000

iv) Derivative financial instruments

Derivative financial instrument asset positions Derivative financial instrument liability positions

Derivative financial instrument total net positions

Net gains/(losses) on derivative financial instruments

44 Esmée Fairbairn Foundation Annual Report & Accounts 2008

Investment gain/(loss) £’000

1,865 (16,864)

(14,999)

(71,110)

239 (5,613) (5,374) 7,157

Notes to the Accounts

v) UK and overseas holdings

Public equity investments UK listed Overseas

Fixed income investments Overseas

Property investments UK Overseas

Alternative investments UK Overseas

2008 £’000

2007 £’000

105,350 231,482

336,832

248,609 199,639

31,507

31,507 37,908 35,670

73,578

448,248 78,873 78,873 77,561 41,328 118,889

12,547 191,955

204,502

646,419

143,725

2008 £’000

2007 £’000

Programme related investments

Total programme related investments

1,334

1,334

1,242

1,242

10. Programme related investments

12,982 130,743

789,735

During the year a further £7.1 million was promised under the Finance Fund, this will be committed and drawn in 2009.

11. Debtors

2008 £’000

2007 £’000

Prepayments and other debtors 39 38 Loan receivable from subsidiary undertaking 557

Total debtors 596 38

An amount of £4.6 million disclosed as accrued income and an amount of £0.2 million disclosed as prepayments in the 2007 financial statements have been reclassified and shown within other investment balances (see note 9).

The loan receivable from the subsidiary undertaking is repayable on or before 28 February 2019. Interest is payable annually on the amount drawn at Bank of England base rate plus 1.75%. The loan facility is for an amount up to £2 million.

45

Notes to the Accounts

12. Creditors: amounts falling due within one year

2008 £’000

Grant commitments Accruals Trade and other creditors Commitments due under finance leases

Total creditors falling due within one year

21,224 181 324 23

21,752

2007 £’000

25,876 23 138 22

26,059

An amount of £1.5 million disclosed as accruals in the 2007 financial statements has been reclassified and shown within other investment balances (see note 9).

13. Creditors: amounts falling due after one year

2008 £’000

2007 £’000

Grant commitments Commitments due under finance leases

Total creditors falling due after one year

5,682 47

5,729

3,870 27

3,897

14. Provisions

2008 £’000

2007 £’000

As at 1 January - - Charge for the year 70 -

As at 31 December 70 -

The provision relates to a potential dilapidations liability due under the lease of the premises occupied by the Foundation.

15. Reserves

2008 £’000

2007 £’000

As at 1 January 937,754

Net incoming/outgoing reserves 3,991 Gain/losses on investment assets (216,941)

Net movement in funds in year (212,950)

As at 31 December

724,804

916,939

46 Esmée Fairbairn Foundation Annual Report & Accounts 2008

6,881 13,934

20,815

937,754

Notes to the Accounts

16. Operating Leases

At 31 December 2008 the Foundation has lease agreements in respect of property for which payments extend over a number of years.

Annual commitments under non-cancellable operating leases expiring:

2008 £’000

2007 £’000

After five years 409

Total annual operating lease commitments 409 -

17. Related Party Transactions

There were no related party transactions during the year other than those with subsidiary undertakings disclosed in note 2 and note 11.

18. Cash Flow

Reconciliation of statement of financial activities to operating cash flows

2008 £’000

2007 £’000

Incoming resources Decrease in accrued income

Incoming resources

Grants awarded Decrease in grant commitments

Grants paid

Other resources expended Increase in trade and other creditors Increase in accrued expenses and prepayments Increase in provision Decrease in provision for bad debts Depreciation charge for the year

Other operating costs

Net cash inflow from operating activities

32,006 3,348

35,354

(21,484) (2,820)

(24,304)

(4,733) 186 152 70 (97) 118

(4,304)

6,746

35,980 5,391 41,371 (23,272) (2,732) (26,004) (6,881) 138 305 164 116 (6,158) 9,209

47

A living memorial

In 1961 Ian Fairbairn, a leading City figure, decided to endow a charitable foundation with the bulk of his holdings in the company he had joined some 30 years before, M&G. M&G was a pioneer of the unit trust industry in the UK. It grew out of Ian Fairbairn’s determination that investments in equities, previously the preserve of the affluent, should be available to all – giving everyone the potential to own a stake in the nation’s economy.

His purpose in establishing the Foundation was two-fold. In the interests of wider prosperity, he aimed to promote a greater understanding of economic and financial issues through education.

He also wanted to establish a memorial to his wife, Esmée, who had played a prominent role in developing the Women’s Royal Voluntary Service and the Citizens Advice Bureaux. She was killed in an air raid during the Second World War. Esmée Fairbairn’s sons, Paul and Oliver Stobart, also contributed generously to the Foundation established in their mother’s memory.

48 Esmée Fairbairn Foundation Annual Report & Accounts 2008

In 1999 the Foundation sold its holding in M&G as part of the company’s takeover by Prudential Corporation PLC. As a result of this sale, the Foundation’s endowment grew significantly in value.

So did the size and scope of the grants it was able to make.

Today, the Esmée Fairbairn Foundation is one of the largest independent grant-making organisations in the UK. Its size notwithstanding, it remains true to the values of both its founder and the woman who inspired him.

Trustees, Committees, Staff and Advisers As at 26 March 2009

Trustees

Committees

Tom Chandos Chairman

Audit Committee Kate Lampard Chairman

Investment Committee James Hughes-Hallett Chairman

Felicity Fairbairn

Tom Chandos

Thomas Hughes-Hallett

Beatrice Hollond

Tom Chandos Observer

Ruper Caldecott Co-opted member

Finance and Administration Committee Tom Chandos Chairman

Strand Panel Advisers Alex Beard (Finance Fund)

Felicity Fairbairn Beatrice Hollond James Hughes-Hallett Thomas Hughes-Hallett Kate Lampard Baroness Linklater William Sieghart

James Hughes-Hallett William Sieghart

Staff Dawn Austwick Chief Executive Grant-making Nicola Pollock Director of Grant-making Jenny Dadd Grants Manager Annabel Durling Grants Officer Alison Holdom Grants Manager Hilary Hodgson Head of Education John Mulligan Grants Manager Jo Rideal Grants Manager Danyal Sattar Head of Environment Laurence Scott Grants Manager Sharon Shea Grants Manager

Sheila Daignton (New Approaches to Learning) Professor Stephen Hawkins (Biodiversity) Prue Leith (Food) Professor David MacDonald (Biodiversity) Margaret Palmer (Biodiversity)

Frances Carey (Museum & Heritage Collections)

Andrew Pollard (New Approaches to Learning)

Adrian Darby (Biodiversity)

Hugh Raven (Biodiversity and Food)

Advisers Legal and Financial Finance Claire Brown Finance and Investment Director Clare Kinnersley Finance Manager Bharat Naygandhi Finance Assistant Resources James Wragg Director of Resources Gina Crane PA to the Chief Executive Tania Joseph Administrator Grant-making Laura Lines Administrator Communications and Resources Matt Mayer ICT and Facilities Officer Tereasa Robinson Administrator Reception Nikki Thompson Administrator Grant-making Swee Tsang Administrator Grant-making

KPMG LLP Auditors 1 Forest Gate Brighton Road Crawley West Sussex RH11 9PT Berwin Leighton Paisner Solicitors Adelaide House London Bridge London EC4R 9HA Allen & Overy Solicitors One Bishops Square London E1 6AO Royal Bank of Scotland plc Bankers London Victoria (A) Branch 119/121 Victoria Street London SW1E 6RA Cambridge Associates Ltd Investment Adviser Cardinal Place 80 Victoria Street London SW1E 5JL State Street Bank and Trust Company Custodian 20 Churchill Place, Canary Wharf London E14 5HJ

49

Esmée Fairbairn Foundation Kings Place 90 York Way London N1 9AG T 020 7812 3700 F 020 7812 3701 E info@esmeefairbairn.org.uk www.esmeefairbairn.org.uk Registered charity 200051

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