Company Number: 14175302

Analysis Date: 2025-07-19 11:56 UTC

1. Risk Rating: LOW
   Keren Trust demonstrates strong solvency supported by significant net assets (£981,673) largely composed of investment properties. The charity shows growth in funds and income, with no overdue filings or regulatory issues evident. Despite a current liabilities balance exceeding cash holdings, the trustees confirm no going concern issues.

2. Key Concerns:

• Negative Net Current Assets: The charity has net current liabilities of £9,357 as of June 2024, indicating short-term liquidity pressure, though this is offset by substantial fixed asset investments.
• Reliance on Donations and Investment Income: Income is heavily dependent on property donations and investment returns, which may carry market and tenant risk despite trustees' mitigation efforts.
• Limited Governance Documentation: Absence of formal induction or training policies for trustees and modest governance costs could be a concern if operational complexity increases.

3. Positive Indicators:

• Strong Asset Base: Fixed assets valued at £991,030 provide a solid financial foundation and support long-term stability.
• Consistent Compliance: All statutory filings (accounts and confirmation statements) are up to date, indicating good regulatory compliance.
• Clear Mission and Public Benefit: The charity’s objectives and grant-making activities align well with its stated public benefit purposes, supported by detailed trustee reporting.
• Independent Examination: The independent examiner’s report raises no concerns about accounting practices or financial records.

4. Due Diligence Notes:

• Review the nature and valuation methodology of investment property syndicates to understand exposure to market or tenant risk.
• Clarify the short-term liquidity management plan given the negative net current assets and how creditors are managed.
• Request details on related party transactions and confirm they are appropriately disclosed and at arm’s length.
• Assess governance framework maturity, including trustee induction and risk management policies, especially as the charity grows.
• Examine cash flow projections and grant commitments to confirm sustainable operational funding.