THE MACROBERT TRUST

Long-Term Plan 2008 – 2012

The MacRobert Trust is recognised as a Scottish charity by the Office of the Scottish Charity Regulator under the Reference: SC031346

Focused on Providing Public Benefit

Approved by Trustees on 14th March 2008

“Not for self but for country”

On Sir Alexander MacRobert’s death in 1922, the original Baronetcy title passed in succession to the three MacRobert sons. Finally, on Sir Iain MacRobert’s death in action in 1941, the Court of the Lord Lyon, King of Arms awarded Lady MacRobert the signal honour of bestowing on her the right to carry the Coat of Arms of the Baronetcy of MacRobert. To establish this right, the Lord Lyon changed her title from Lady MacRobert of Cawnpore and Cromar to Lady MacRobert of Douneside and Cromar. In recognising the scope and nobility of her plans to preserve the house of MacRobert by the formation of the original MacRobert Trust in 1943, the Court of the Lord Lyon again granted a unique honour in 1950 in the bestowal of a Coat of Arms for The MacRobert Trust. On these Arms appear three winged tigers’ heads representing the flying record of the three MacRobert sons and symbolic of courage and Sir Alexander MacRobert’s connection with India. A pile driven into the top of the MacRobert Arms showed for the first time the flying wings in heraldry.

ORGANISATION AND STRUCTURE

Chairman: Sir Garth Morrison KT, CBE, CEng

Trustees: Mrs. S. Campbell (from October 2008)C.D. Crole, Esq, MAMrs. C.J.B. Cuthbert, DL (retired March 2008)K. Davis Esq, BSc, CEng, FICE, MCIWEM J.D. Fowlie, Esq, ARAgSJ. Mackie, Esq (retired March 2008)Group Captain D.A. Needham, BA, RAF (Retd)C.W. Pagan, Esq, MBE, TD, BA, DLA.M. Summers Esq, BA (Cantab) (retired March 2008)Mrs J.C Swan, BVM&S, MRCVSH.B. Woodd, Esq, BA(Econ)

Principal Office CromarTarlandAboyneAberdeenshireAB34 4UD

Administrator Air Commodore R.W. Joseph, CBE, BSc, RAF (Retd)

Auditor Scott-MoncrieffChartered Accountants17 Melville StreetEdinburghEH3 7PH

Bankers Bank of Scotland54 John StreetAberdeenAB25 1LL

Legal Advisers Turcan Connell Princes Exchange1 Earl Grey StreetEdinburghEH3 9EE

Investment Managers Schroder Investment Management Limited31 Gresham StreetLondonEC2V 7QA

THE MACROBERT TRUSTLONG-TERM PLAN (2008-2012)

INTRODUCTION

The Trustees of The MacRobert Trust have approved a set of management planning documents to ensure that The Trust has a clear mission, aims and strategic direction; that priorities and objectives are set; that sufficient budgetary resources are made available each year to support agreed and defined activity; and that a reporting system is in place to meet legal requirements. This set comprises:

The Long-Term Plan

The Annual Management Plan

The Annual Report & Financial Statements

Long-Term Plan

The Long-Term Plan describes The MacRobert Trust’s history, formation and present day configuration and then sets the strategic direction of The Trust for the next five years. It outlines the operational environment within which The Trust works and the charitable contribution The Trust seeks to make. In particular, the Long-Term Plan defines The Trust’s Mission, Aims and Long-Term Priorities, and the supporting Guiding Principles adopted by Trustees in order to achieve their agreed Long-Term Objectives.

Annual Management Plan

The Annual Management Plan defines Short-Term Objectives agreed by Trustees in support of the Long-Term Priorities and Objectives along with the annual Budget (Resources) necessary to meet these specific goals and annual activity. The Annual Management Plan is considered and approved by Trustees in March for implementation from 6 April each year.

Annual Report & Financial Statements

The Annual Report & Financial Statements satisfies a legal requirement within the Charities and Trustees Investment (Scotland) Act 2005 to provide an audited statement of account, including a report on activities in the financial year. The report on activities includes achievements against the milestone Short-Term Objectives detailed in the Annual Management Plan. The Annual Report and Financial Statements are considered and approved by Trustees in October covering the year to 5 April each year.

HISTORY AND PRESENT DAY CONFIGURATION

History

The MacRobert Trust is an amalgamation of several charitable trusts originally established by Lady Rachel Workman MacRobert (1884-1954). Lady MacRobert of Douneside and Cromar left her entire estate to these charitable trusts which were formed to serve particular charitable interests. Special enterprises were also launched to help fulfil the aims of the trusts, along with the establishment of various companies to protect the continuity of the trusts.

Lady MacRobert was the second wife and widow of Sir Alexander MacRobert (1854-1922), first Baronet of Cawnpore and Cromar, and the daughter of Dr. William Hunter Workman MA MD and Fanny Bullock Workman. Lady MacRobert inherited considerable wealth from her family in America.

Alexander’s first wife, Georgina, died of cancer in 1905; they had no children. He met Rachel Workman in the spring of 1909 when returning on leave by ship from India. They married in York in 1911. The marriage produced three sons, all unmarried, who inherited the baronetcy in turn. The eldest, Alasdair Workman, died in a civil flying accident in 1938, aged 26 years.

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THE MACROBERT TRUSTLONG-TERM PLAN (2008-2012)

Roderic Alan and Iain Workman, both officer pilots in the Royal Air Force, were killed on active service in May and June 1941, aged 26 and 24 years respectively. Lady MacRobert was then left with no family. Some time before his death, Sir Iain had suggested to his mother that she might give an aircraft to help with the war effort; thus, in response to the loss of her two younger sons, she immediately sent a cheque for £25,000 to the Secretary of State for Air to purchase a bomber for the Royal Air Force. She asked that the aircraft, a Stirling Bomber, should be named “MacRobert’s Reply”. She later donated an additional £20,000 to purchase four Hurricane fighters which were sent to Royal Air Force operations in the Middle East. Three of these aircraft bore the names of her sons and the fourth was named “MacRobert’s Salute to Russia – The Lady”. A succession of Royal Air Force aircraft have carried the name “MacRobert’s Reply”; today it is a Tornado GR4 on operational service with Number XV Squadron, Royal Air Force Lossiemouth.

The Original Trusts

Lady MacRobert established the original trusts over the period 1943-50 in order to make provisions reflecting the interests of her late husband and her late parents. The first three, created in 1943, were the MacRobert Trust, the Sir Alexander MacRobert Memorial Trust and the Douneside Trust. The MacRobert Trust was chiefly concerned with giving relief and assistance to people, with special consideration given to those who, through the uniformed services, had served and deserved well of their country. The Sir Alexander MacRobert Memorial Trust was established principally to guide and financially assist youth, whilst the Douneside Trust provided for the upkeep of Douneside House in Tarland, contributed to youth organisations and more generally promoted co-operation between all peoples to promote world peace and friendship. In providing support to youth, Lady MacRobert wished to provide the means and organisation to foster in young people the best traditions, ideals and spirits which she considered had prompted so many young people to fight in the Second World War for the freedom and greater happiness of the human race. She firmly believed that the maintenance of such ideals was of paramount importance following the premature deaths of her sons.

The Lady MacRobert Robert Special Trust, formed in 1950, encouraged the study and practice of agriculture and horticulture, especially pedigree stock-breeding and food production, horticulture, forestry and rural crafts and industries. The MacRobert Foundation, formed in 1954, was of a more general nature to provide for such charities and benevolent purposes as the Trustees might decide, whilst the MacRobert Charitable Investment Trust, formed in 1969, was established to manage the investments of the various trusts.

It was Lady MacRobert’s wish that the work of the original trusts should be conducted from the MacRobert Estate in the Howe of Cromar, centred upon the village of Tarland. Sir Alexander had bought the small one hundred and twenty-two acre estate of Burnside near Tarland in 1888 to rent to his parents who were finding life hard as pioneer farmers in New Brunswick, Canada. After his parents’ death, he enlarged the farmhouse cottage to be a home for himself and Georgina when they returned from India each summer. To this small estate was added the nine thousand acre Cromar Estate, and House of Cromar, when it was purchased from the Marquis of Aberdeen in 1920 with the agreement that it would pass to the MacRobert family and executors after the death of the Marquis. The Marquis died in 1934. The House of Cromar, built in 1905, was renamed Alastrean House by Lady MacRobert in June 1943 following its opening as a recreation and leave centre for Royal Air Force and Commonwealth Air Forces on active service. The cottage at Burnside was further modified and extended over several years and is now known as Douneside House. Lady MacRobert lived there from 1911 until her death in 1954. She is buried in the grounds of Douneside House which Sir Alexander and she had transformed so uniquely using her knowledge of plants and trees from around the world.

The Trust Today

The original charitable trusts were amalgamated into a single trust, The MacRobert Trust, by a Scheme approved by Interlocutor of the Court of Session, Edinburgh, dated 21st March 2001. The Trust assumed all the assets, liabilities and interests of the original trusts as a continuum from 6th April 2001.

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The MacRobert Trust is governed by a Board of Trustees who hold the entire assets of The Trust in pursuance of its charitable purposes. Trustees are selected to provide the necessary range of knowledge and skills to enable them to discharge their duties over the full range of The Trust’s activities. The Trustees (no fewer than seven and no more than twelve) seek in good faith to ensure that The Trust acts in a manner consistent with its purposes and is compliant with the Charities and Trustee Investment (Scotland) Act 2005. Trustees understand their individual and collective responsibilities and have established the required supporting framework to ensure that their duty of care is properly exercised. Specialist legal and financial advice is available to the main Board of Trustees and delegated authorities given to the permanent managerial staff, headed by the Administrator (Chief Executive), are clearly defined. The Interlocutor (Trust Deed) provides for the administration of the assets and funds held by The Trust and confers wide discretionary powers on the Trustees. The MacRobert Trust, as now constituted, continues to sustain Lady MacRobert’s original ideals and aims, particularly a strong connection to the Armed Forces of the United Kingdom. However, The Trust now has wide charitable purposes which reflect modern times and needs. Douneside House and Alastrean House continue to exist today; the first following the original purposes that Lady MacRobert had intended for it and providing support to other charitable activity for the wider public benefit; the second providing a source of income for The Trust’s Estate.

The Trust exists in perpetuity and is a recognised Scottish charity, registered with the Office of the Scottish Charity Regulator under the Reference SC031346. The MacRobert Trust is also recognised as a charity for the purposes of the Taxes Acts under the Reference CR50453.

MISSION

The mission of The MacRobert Trust is to provide public benefit through the conduct of charitable activity which both reflects the original wishes of Lady MacRobert as defined in The Trust Deed and the needs of modern day society.

OPERATIONAL ENVIRONMENT

The MacRobert Trust’s operational environment has three main strands:

The Trust as a registered Scottish charity

As a charity, The Trust enjoys certain financial and reputational advantages, but activities now take place within a complex regime of regulation and codes of practice. This regime can restrict the scope available to extend activities, or to enter into new areas into which businesses are able to venture.

The Trust as the owner of an historic legacy

The MacRobert story is known throughout much of the free world; thus, its activities are enshrined in history and based upon a legacy which the Trustees are charged, through the Trust Deed, to uphold and protect.

The Trust as a landlord

The Estate is run sensitively and sustainably, with a priority given where possible to the generation of surplus income for The Trust’s programme of annual donations and grants. The Trust owns several properties on its Estate. Some of these properties are run commercially, but all are operated directly or indirectly in support of charitable activity as defined in the Charities and Trustee Investment (Scotland) Act 2005. Being a landlord also carries certain responsibilities to tenants and to the land which have to be discharged while continuing to comply with duties flowing from The Trust’s charitable status.

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AIMS

The Trust has four principal aims:

Protect the legacy and keep alive the ideals and history of Lady MacRobert and her family through the conduct of charitable activities for the public benefit throughout the United Kingdom, but with an emphasis in Scotland.

Ensure the continued operation of Douneside House, principally through the provision of leave centre facilities to support entitled personnel as defined in the Trust Deed, but also in support of activities for the wider public benefit.

Conduct successful and innovative horticultural operations which enhance the environment and provide training for new entrant gardeners through a Horticultural Training Scheme.

Run a successful and profitable Estate with income from the Estate diversified and maximised for the conduct of The Trust’s wider charitable activities. Operations will contribute to The Trust’s charitable work whilst ensuring that sound ecological and environmental practices are followed and that farming tenants contribute to this work whilst having enough land, buildings and fixed equipment to conduct profitable, efficient and sustainable farming operations.

THE CHARITABLE CONTRIBUTION THE TRUST AIMS TO MAKE

The MacRobert Trust aims to provide public benefit through its direct contribution to the following agreed charitable purposes among those set out in the Charities and Trustee Investment (Scotland) Act 2005:

Prevention or relief of poverty.

Advancement of education.

Advancement of health.

Saving of lives.

Advancement of citizenship or community development.

Advancement of the arts, heritage, culture or science.

Advancement of public participation in sport.

Provision of recreational facilities, or the organisation of recreational activities, with the object of improving the conditions of life for the persons for whom the facilities or activities are intended.

Advancement of human rights, conflict resolution or reconciliation.

Advancement of environmental protection or improvement.

Relief of those in need by reason of age, ill-health, disability, financial hardship or other disadvantage.

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THE MACROBERT TRUSTLONG-TERM PLAN (2008-2012)

GOVERNANCE

The Trust Deed requires Trustees to hold The Trust’s entire heritable and moveable property, assets, securities, investments and income in support of The Trust’s purposes. In so doing, Trustees are aware of their legal duties and responsibilities laid down in the Charities and Trustee Investment (Scotland) Act 2005, the Trusts (Scotland) Act 1921 and 1961, and the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) 2005. The Trustees are also mindful of other associated regulations and documents giving guidance and best practice advice.

The Trustees define their internal policies in a series of important policy documents which are revised at least every five years. These policies are enabling documents and provide the necessary additional detail to ensure that the requirements of the Long-Term Plan are met.

The broad charitable activities of The MacRobert Trust are enshrined in the Trust Deed. The specific charitable purposes supported can vary from time to time and are defined in The Trust’s Charitable Donations Policy and Annual Management Plan.

LONG-TERM PRIORITIES

The Trustees have determined and approved five Long-Term Priorities to guide The Trust’s overall charitable work and its operations as a recognised centre of excellence for horticulture, farming and wider Estate activity. The Long-Term Priorities are:

Governance and Management

Ensure the Governance and Management of The MacRobert Trust is conducted in an exemplary fashion, compliant with regulations and in accordance with best practice.

Management of The Trust’s Financial Investments

Preserve and grow the capital value of The Trust’s financial investments over the long-term and, consistent with that, generate income to support the charitable purposes of The Trust.

Provision of Charitable Donations, Grants and Awards

Conduct an annual programme of charitable donations, grants and awards using income from The Trust’s financial investments and surplus income from The Trust’s Estate and wider activities.

Operation of The MacRobert Trust Estate.

Operate and present a successful, sustainable and profitable Estate without detriment to The Trust’s charitable status with a particular objective to generate surplus income from diversified sources to support the conduct of The Trust’s wider charitable purposes.

Operation of Douneside House.

Maintain Douneside House, together with its furnishings, contents, gardens and policies in memory of the family of the late Sir Alexander MacRobert by providing facilities to maintain support for the Armed Forces and for other existing and future charitable and commercial purposes conducted from the House.

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THE MACROBERT TRUSTLONG-TERM PLAN (2008-2012)

LONG-TERM OBJECTIVES AND GUIDING PRINCIPLES

Trustees have agreed a number of Guiding Principles which define the good practice necessary to achieve The Trust’s agreed Long-Term Priorities. The Guiding Principles are listed and described in Appendix 1 along with a set of six Long-Term Objectives describing actions that Trustees wish to complete within the period of the Plan or by a specific date.

Short-Term Objectives en-route to fulfilment of the Long-Term Priorities and achievement of the Long-Term Objectives are set annually in The Trust’s Annual Management Plan which also contains the Budget (Resources) agreed by Trustees to achieve the planned activity for the year ahead.

The six Long-Term Objectives are summarised as:

Trustees will conduct a review of The Trust’s Interlocutor (Trust Deed), starting no later than 2009, in order to ensure that it matches today’s needs and accords with the Scottish regulatory framework and United Kingdom tax statutes.

Trustees will conduct a review of The Trust’s Committee arrangements, to include arrangements for the sub-Committees.

Trustees will investigate a ‘total return’ approach to investments in which funds are invested for the best total level of economic return compatible with the Trustees’ duty to make safe investments, but regardless of the form (capital or income) which the return takes.

Trustees will conduct an annual programme of charitable donations and grants in accordance with agreed policy, always seeking to achieve maximum effect for beneficiaries, but also recognising changes of emphasis agreed by Trustees from time to time.

Trustees will refresh a ‘Vision for the Estate’ within twelve months and implement that Vision over the next five years. This will be done in the context of the Guiding Principles, identifying specific actions that will help secure a sustainable long-term future for the Estate and deliver a significant contribution to the charitable activity of The Trust.

Trustees will seek to maintain Douneside House service guest occupancy at high levels and ensure that income generated during the conference season is maximised in order to reduce the charitable subsidy given to the House.

RISK ASSESSMENT AND MANAGEMENT

The process of Risk Assessment and Management is a fundamental component of The Trust’s business at all levels. Risks are assessed in all Trust policies and the overarching policy on Risk Assessment and Management is reviewed by Trustees at least every five years.

Trustees also review current and emerging risks annually and risks are addressed in all papers presented to Trustees for their approval.

Appendix

1. Long-Term Priorities, Guiding Principles & Long-Term Objectives.

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Long-Term Plan 2008 - 2012

The MacRobert TrustCromar, Tarland

AboyneAberdeenshire

AB34 4UD

Scottish Charity No SC031346

Tel: 013398 81444Fax: 013398 81676

www.themacroberttrust.org.uk