THE MARK LEONARD TRUST - The Sainsbury Family Charitable ...

THE MARK LEONARD TRUST
ANNUAL REPORT
5APRIL2012
The Peak
5 Wilton Road
London SW1V 1AP

CONTENTS
1
2
3
4
5
6
7
THE MARKLEONARD TRUST
The Trustees' Report
Statement of Financial Activities.
Balance Sheet
Cash Flow Statement
Notes to the Accounts
Statement of Trusteas' Responsibilities
Independent Auditors' Report
Report and Accounts - 5 April 2012
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PAGE
2 - 6
7
8
9
10 - 14
15
16

Legal and Administrative
THE MARK LEONARD 'IRUST
The Mark Leonard Trust (No. 1040323) was established under a Trust Deed dated 14 July 1994.
Trustees
Registered
Office
Principal
Officers
Bankers
Solicitors
Auditors
Investment
Advisers
Investment
Powers
Objects
Mr M L Sainsbury
Mrs Z Sainsbury
Mr J J Sainsbury
Miss J S Portrait
The Peak
5 Wilton Road
London SW1V 1AP
Mr A Bookbinder
Mr P Spokes
Mr M Woodruff
Mrs Sian Ferguson
Ms J Temple
Child & Co
1 Fleet Street
London EC4Y 1 BD
Portrait Solicitors
21 Whitefriars Street
London EC4Y 8JJ
Crowe Clark Whitehill LLP
St Bride's House
10 Salisbury Square
London EC4Y 8EH
Schroder & Co. Limited
100 Wood Street
London EC2V 7ER
Director
Finance Director
Executive
Executive
Executive
The Trust Deed empowers the Trustees to appoint investment advisers
who have discretion to invest the funds of the Trust within guidelines
established by the Trustees.
The objects of the Trust as given in the Trust Deed are for general
charitable purposes.
Report and Accounts - 5 April 2012
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THE MARK LEONARD 'IRUST
Organisation
The Trust is one of the Sainsbury Family Charitable Trusts which share a common
administration.
Policies
Proposals are generally invited by the Trustees or initiated at their request. Unsolicited
applications are discouraged and are unlikely to be successful, unless they are closely
aligned to the Trust's areas of interest. The Trustees' objective is to support innovative
schemes with seed-funding, leading projects to achieve sustainability and successful
replication. Grants are not normally made to individuals. During the year, the Trustees
reviewed their grant-making policy and decided to focus on a smaller number of larger
grants, to be sustained over a sufficient time in order to effect transformation in organisations
likely to bring about lasting change in the fields that the Trustees see as their priorities.
Reserves Policy
It is the policy of the Trustees to approve grants for payment over a period of years, subject
to the fulfilment of certain conditions over the life of the grant.
The Trustees consider that when possible it is appropriate to hold free funds, both to meet
the short term working capital needs of the Trust, and in anticipation of the potential payment
of subsequent grant instalments. However, if these are insufficient, any shortfall could be met
from the Trust's expendable endowment. In the year under review, there was a transfer from
expendable endowment of £359,000 to clear the deficit on unrestricted funds.
The need for unrestricted income funds will vary from year to year and the Trustees will
continue to review the position.
Investment Policy and Performance
The Trust's expendable endowment funds are invested to generate income and provide longterm
capital growth in line with relevant indices. The Trustees regularly meet the investment
managers to discuss strategy and review performance. In the year under review, Trustees
maintained a balanced investment strategy.
The Trustees are committed to using some of the Trust's expendable endowment for "impact"
investing that will not only result in a financial return, but also produce social and
environmental benefits that accord with the Trust's objectives. Initially, focus will be on four
different sectors: forestry, microfinance in developing countries, renewable energy and clean
technology infrastructure. The Trustees are interested in sharing their experience in impact
investing with other investors to improve their own knowledge in these areas, and also to
encourage more investors to adopt this approach.
The unrealised losses shown on the Statement of Financial Activities are due to a fall in stock
markets over the year. Overall performance of the Trust's investment portfolio was 2.0%
below the Trust's own benchmark of 4.3% for the period, compared with a fall in the FTSE
ALL Share total return index of -1.0%. The underperformance was mainly due to an
underweight position in fixed interest investments.
Risk Assessment
The Trustees have examined the major strategic, business and operational risks to which the
Trust may be exposed. Through the joint office of the Sainsbury Family Charitable Trusts,
systems are in place adequate to meet such potential risks as the Trustees have identified.
They continue to keep processes under review.
Report and Accounts - 5 April 2012
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THE MARK LEONARD TRUST
GRANT APPROVED
ENVIRONMENT - £994,883
The trustees provide support to a small number of charities that operate in the fields of
sustainable development and environment to enable them to flourish and deliver their vision
and aims with greater impact. The first two organisations to be selected join this new portfolio
of major grants are national sustainable development charities, Global Action Plan and
BioRegional.
The Trustees remain interested in supporting sustainable food consumption and production,
including school, community and social enterprise food growing projects. Proposals are more
likely to be considered if they could potentially create significant cultural change towards
more sustainable food systems or are testing an idea or model that could be replicated.
Aldeburgh Food and Drink Festival Ltd - £2,000
Towards running costs
BioRegional Development Group - £450,000
Towards a five-year development plan
Food Ethics Council - £240
To launch the Food Issues Census
Global Action Plan - £460,000
• £450,000 - towards a five-year development plan
• £10,000 - towards research into the financing of the Green Concierge Service
Sustainable Restaurant Association - £82,623
• £80,000 - towards core costs
• £2,446 - for media consultancy on the launch of The Doggy Box
• £ 177 - towards the End of the Line film screening
YOUTH WORK - £30,000
The Trustees' grants support the inclusion of young people who have become marginalised
from wider society, or involved in anti-social or criminal activities. They are interested in ideas
in schools and the community that reduce risks in young people's future, and volunteering
that involves them in the improvement of wider society with its problems, the environment
and their own personal prospects.
An essential part of the youth work that the Trustees wish to support is a sense of realising
the personal choice and responsibility of young people, building identity through taking their
views and plans seriously and offering the tools to translate their aspirations and talents into
practice. Above all, the Trustees wish to see work that gives young people, with the support
and guidance they need, the autonomy to be creative and enterprising. The Trustees believe
that creating this culture in young people in contemporary Britain will be essential for the
future health of society.
Lyndhurst Primary School - £30,000
Towards the development of a creative whole-school primary curriculum
Report and Accounts - 5 April 2012
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THE MARK LEONARD TRUST
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 5 APRIL 2012
Unrestricted Expendable Total Funds Total Funds
Notes Funds Endowment 2012 2011
£ £ £ £
Incoming resources
Donations and gifts 625,000 625,000 1,282,051
Investment income 2 386,181 386,181 344,355
Bank deposit interest 3,620 3,620 1,748
Interest on short term deposits 1,009
Total incoming resources 389,801 625,000 1,014,801 1,629,163
Resources expended
Cost of generating funds:
Investment management costs 47,285 47,285 53,010
Charitable activity
Grant-making:
Grant expenditure 3 649,740 649,740 560,790
Grant related support costs 4 92,030 92,030 86,993
Cost of Grant-making 741,770 741,770 647,783
Govemance costs 4 7,031 7,031 6,734
Total resources expended 748,801 47,285 796,086 707,527
Net resources expended before transfers (359,000) 577,715 218,715 921,636
Transfers
Gross transfers between funds 359,000 (359,000)
Net resources before other recognised gains and losses 218,715 218,715 921,636
Other Recognised Gains and Losses
Gains/(Iosses) on investment assets
Realised (94,087) (94,087) 80,154
Unrealised 7,10 (19,976) (19,976) 823,112
Net movement in funds 104,652 104,652 1,824,902
Reconciliation of funds
Total funds brought forward 14,130,557 14,130,557 12,305,655
Total funds carried forward 14,235,209 14,235,209 14,130,557
The notes on pages 10 to 14 form part of these accounts
There are no gains and losses in either the current or preceding year other than those recognised in the statement of
financial activities.
Report and Accounts - 5 April 2012
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BALANCE SHEET
AS AT 5 APRIL 2012
FIXED ASSETS
Tangible fixed assets
In-.estments
CURRENT ASSETS
Debtors
Cash at bank and in hand
CURRENT LIABILITIES
THE MARK LEONARD TRUST
Creditors - amounts falling due within 1 year
NET CURRENT ASSETS
NET ASSETS
CAPITAL FUNDS
Expendable endowment
INCOME FUNDS
Unrestricted funds
Notes
6
7
£
8 141,407
1,317,377
1,458,784
9 385,603
10
10
2012 2011
£ £
353
13,162,028 13,051,043
13.162,028 13,051,396
164,722
1,201,977
1,366,699
287,538
1,073,181 1,079,161
14,235,209 14,130,557
14,235,209 14,130,557
14,235,209 14,130,557
The financial statements were appro-.ed and authorised for issue by the Trustees on 19 No-.ember 2012 and were
signed on their behalf by :
MIHL H ... H ...... . TRUSTEE
The notes on pages 10 to 14 form part of these accounts
Report and Accounts - 5 April 2012
-8 -

CASH FLOW STATEMENT
FOR THE YEAR ENDED 5 APRIL 2012
THE MARK LEONARD IIRUST
RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH FLOW FROM OPERATING ACTIVITIES
Net incoming resources
Depreciation charge
Oecrease/(increase) in debtors
Increase in creditors
Net cash inflow from operating activities
CASH FLOW STATEMENT
Net cash inflow from operating activities
Capital expenditure and financial in'..estment:
Purchase of in'..estments
Sale of inl.estments
Increase in cash
Analysis of increase in cash during the year
Cash at bank and in hand
The notes on pages 10 to 14 form part of these accounts
Report and Accounts - 5 April 2012
- 9 -
2012
£
1,317,377
2012
£
218,715
353
23,315
98,065
340,448
2012
£
340,448
(2,055,872)
1,830,824
(225,048)
115,400
2011
£
1,201,977
2011
£
921,636
354
(143,720)
26,195
804,465
2011
£
804,465
(2,360,222)
2,624,927
264,705
1,069,170
Change in
year
£
115,400

NOTES TO THE ACCOUNTS
1. ACCOUNTING POLICIES
THE MARK LEONARD 'IRUST
The financial statements have been prepared under the historical cost convention as modified by the revaluation
of investments, and in accordance with the Statement of Recommended Practice (SORP 2005) "Accounting
and Reporting by Charities", applicable accounting standards and the Charities Act 2011 , and comply with the
Charities (Accounts and Reports) Regulations 2008 issued under the Charities Act 2011.
The principal accounting policies adopted are as follows:
a) Income
(i) Income is shown gross which includes the associated tax credit unless the tax so deducted is
considered irrecoverable.
(ii) Dividends are included by reference to their due dates.
(iii) Interest is recorded only when it has been received.
b) Grants payable
Grants for which there is a legal obligation, or a valid expectation of receipt by the beneficiary at the year
end, and for which conditions attaching to their payment have been fulfilled, are accounted for within the
Statement of Financial Activities. Grants approved subject to conditions that have not been met at the
year end are noted as a commitment (see note 3).
c) Investments
Net realised and unrealised gains and losses are reflected in the Statement of Financial Activities.
Investments are shown at mid market value.
Partial disposals are accounted for using average book value.
d) Support costs
Most of these costs support the grant-making activity of the Trust and are so allocated. They comprise
in the main a share of the staff and office costs of the joint office of the Sainsbury Family Charitable
Trusts, which are allocated in proportion to time spent on Trust matters and grants paid.
e) Charitable activities
The Trustees consider that grant-making is the Trust's sole charitable activity.
f) Governance costs
Governance costs comprise all costs im.olving the public accountability of the charity and its compliance
with regulation and good practice. These costs include fees for statutory audit, legal fees where relevant,
together with an allocation of support costs.
g) Depreciation
Fixed assets are depreciated at rates which reflect their useful life to the Trust. The following rate has
been used:
Leasehold improvements - 10% per annum
2. INVESTMENT INCOME
Income received on investments may be analysed as follows :
2012 2011
£ % £ %
Government fixed interest 20,073 5 19,683 6
Other fixed interest 87,334 23 128,805 37
UK equities 261,465 68 184,227 54
Overseas equities 17,309 4 11,640 3
386,181 100 344,355 100
Report and Accounts - 5 April 2012
- 10-

NOTES TO THE ACCOUNTS
3. GRANTS PAYABLE
THE MARK LEONARD 'IRUST
Reconciliation of grants payable:
Commitments at 6 April 2011
Grants not accrued at 6 April 2011
Grants appro-.ed in the year
Grants cancelled or refunded
Grants not accrued at 5 April 2012
Grants payable for the year
Grants paid during the year
Commitments at 5 April 2012
Commitments at 5 April 2012 are payable as follows:
Within one year (note 9)
Commitments
In addition to the amounts committed and accrued noted abo-.e, the Trustees ha-.e also authorised certain
grants which are subject to the recipient fulfilling certain conditions. The total amount authorised but not
accrued as expenditure at 5 April 2012 was £691 ,400 (2011 : £145,110).
The grants payable in the year include the following:
Environment
Global Action Plan
Sustainable Restaurant Association
BioRegional De-.elopment Group
Ashden Sustainable solutions, better Ii-.es
Net grants made and cancelled up to £20,000
Youth Work
Only Connect
Lyndhurst Primary School
Net grants made and cancelled up to £10,000
General
Kaizen Partnership
City Uni-.ersity
Rambert School of Ballet & Contemporary Dance
Net grants made and cancelled up to £9,000
Climate Change Collaboration
Ecofin Research Foundation
National Energy Foundation
Se-.ern Wye Energy Agency
Behaviour Change Ltd
Centre for Sustainable Energy
Total grants payable per Statement of Financial Activities
£
145,110
1,206,030
(10,000)
(691,400)
Report and Accounts - 5 April 2012
- 11 -
2012 2011
£ £ £
271 ,514 236,831
88,400
623,500
(6,000)
(145, 110)
649,740 560,790
(563,035) (526,107)
358,219 271,514
2012 2011
£ £
358,219 271,514
£
180,000
100,373
90,000
60,000
(5,510)
25,000
15,000
(10,000)
23,000
10,000
10,000
11 ,710
48,500
31 ,667
30,000
20,000
10,000
649,740

NOTES TO THE ACCOUNTS
THE MARK LEONARD 'IRUST
4. ALLOCATION OF SUPPORT COSTS
2012 2011
Grant- Governance Total Grant- Governance
making Allocated making
£ £ £ £ £
Staff costs 65,933 2,867 68,800 54,179 2,721
Share of joint office costs 17,000 17,000 15,700
Direct costs including travel 1,116 1,116 1,699
Legal and professional fees 3,250 3,250 8,721
Consultancy 4,378 4,378 6,340
Depreciation 353 353 354
Auditors' remuneration 4,164 4,164 4,013
92,030 7,031 99,061 86,993 6,734
Included above is £3,250 paid for legal services to Portrait Solicitors, a firm in which Miss J S Portrait is a
partner. No Trustee received remuneration or was reimbursed expenses during the year.
5. ANALYSIS OF STAFF COSTS
Salaries and wages
Social security costs
Other pension costs
2012 2011
£ £
55,733 46,056
6,568 5,343
6,499 5,501
68,800 56,900
As mentioned in Note 1(d), the Trust is one of the Sainsbury Family Charitable Trusts which share a jOint
administration at the Registered Office. 1.6% of the total support and administration costs of these trusts have
been allocated to the Mark Leonard Trust, including a proportionate share of the costs of employing the total
number of staff serving in the office in 2011/12. Staff costs equivalent to 1.1 full time employees were charged
to the Mark Leonard Trust in 2011/12 (2010/11 - 0.9).
6. TANGIBLE FIXED ASSETS
Leasehold Improvements
Cost
At 6 April 2011
At 5 April 2012
Depreciation
At 6 April 2011
Charge for the year
At 5 April 2012
NET BOOK VALUE
At 5 April 2012
NET BOOK VALUE
At 5 April 2011
Report and Accounts - 5 April 2012
- 12 -
2012 2011
£ £
3,539 3,539
3,539 3,539
3,186 2,832
353 354
3,539 3,186
353
353 707

NOTES TO THE ACCOUNTS
7. FIXED ASSET INVESTMENTS
Market value 6 April 2011
Less: Disposals at carrying value
Add: Acquisitions at cost
Net (Iosses)/gains on revaluation
Market value 5 April 2012
Historical cost 5 April 2012
THE MARK LEONARD 'IRUST
The in-.estments held as at 5 April 2012 were as follows :
Direct in-.estment in listed UK and o-.erseas securities
Go-.ernment fixed interest
Other fixed interest
UK equities
O-.erseas equities
Unquoted social in-.estments
In-.estments include the following holdings at market value:
UK Treasury Index Linked 1.25% 22/11/17
CG Portfolio Fund Real Return A GBP
Unquoted social in-.estments
Luta Ltd
Empower Community Management
8. DEBTORS
Income tax reco-.erable
Other debtors
Loans
9. CREDITORS - amounts falling due within one year
Grants payable within one year
Professional charges
In-.estment management fee
Other creditors
Cost
£
561 ,253
2,256,541
6,630,653
1,406,601
100,000
10,955,048
Report and Accounts - 5 April 2012
- 13 -
2012
Market
Value
£
716,739
2,431,757
8,203,510
1,710,022
100,000
13,162,028
£716,739
£683,288
£50,000
£50,000
2012 2011
£ £
13,051,043 12,412,482
(1,924,911) (2,544,773)
2,055,872 2,360,222
(19,976) 823,112
13,162,028 13,051,043
10,955,048 1,0,684,551
2011
Cost Market
Value
£ £
830,038 902,562
1,982,005 2,078,452
5,952,728 7,745,203
1,834,780 2,239,826
85,000 85,000
10,684,551 13,051,043
2012 2011
£ £
132,407 142,467
12,255
9,000 10,000
141,407 164,722
2012 2011
£ £
358,219 271,514
5,742 4,168
12,725
8,917
11,856
385,603 287,538

NOTES TO THE ACCOUNTS
THE MARK LEONARD TRUST
10. ANALYSIS OF NET ASSETS BETWEEN FUNDS
Fund balances at 5 April 2012 are represented by:
Tangible fixed assets
Investments
Current assets
Current liabilities
Total net assets
Unrealised gains included in the above
On investment assets (see note below)
Total unrealised gains at 5 April 2012
Unrestricted Expendable
Funds Endowment
£ £
13,162,028
372,878 1,085,906
(372,878) (12,725)
14,235,209
Unrestricted Expendable
Funds Endowment
£ £
Reconciliation of movements in unrealised gainsl(losses) on investment assets
Unrealised gains at 6 April 2011
Add in respect of disposals in year
Add: net losses arising on revaluation in year
Unrealised gains at 5 April 2012, as above
Report and Accounts - 5 April 2012
- 14-
2,206,980
2,206,980
2,366,492
(139,536)
2,226,956
(19,976)
2,206,980
Totals
2012
£
13,162,028
1,458,784
(385,603)
14,235,209
Totals
2012
£
2,206,980
2,206,980
2,366,492
(139,536)
2,226,956
(19,976)
2,206,980

THE MARK LEONARD 'IRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE ACCOUNTS
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with
applicable law and regulations.
Charity law requires the trustees to prepare financial statements for each financial year in accordance with
United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and
applicable law.
Under charity law the trustees must not approve the financial statements unless they are satisfied that they give
a true and fair view of the state of affairs of the charity and of its net outgoing resources for that period. In
preparing these financial statements, the trustees are required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
charity will continue to operate.
The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the
charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and
enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (accounts
and Reports) regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding
the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
Report and Accounts - 5 April 2012
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