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2020-12-31-accounts

Charity Registration No. 1187286

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

TRUSTEES' REPORT AND UNAUDITED ACCOUNTS

FOR THE PERIOD ENDED 31 DECEMBER 2020 (10 January 2020 to 31 December 2020)

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees John Nicoll – Chairman
Professor Dawn Ades CBE FBA
Hugo Chapman
Elizabeth Cropper
Dr Gabriele Finalidi
Sir Nicholas Goodison FBA FSA
Sir Nicholas Penny FBA FSA
Andrea Rose CMG OBE
Tim Sanderson
Desmond Shawe-Taylor LVO
Dr Paul Williamson OBE FSA
Charity number 1187286
Principal address 14/16 Duke's Road
London
WC1H 9SZ
Independent examiners TC Group
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
Bankers COIF Charity Funds
Senator House
85 Queen Victoria Street
London
EC4V 4ET

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

LEGAL AND ADMINISTRATIVE INFORMATION

Investment managers Black Rock Investment Management (UK) Limited 33 King William Street London EC4R 9AS

BNY Mellon Asset Management BNY Mellon Centre 160 Queen Victoria Street London EC4V 4LA

CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET

Schroder Unit Trusts Limited 31 Gresham Street London EC2V 7QA

M&G Investments Laurence Pountney Hill London EC4R 0HH

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

CONTENTS

Page
Trustees' report 1 – 2
Independent examiner's report 3
Statement of financial activities 4
Balance sheet 5
Cash flow statement 6
Notes to the accounts 7 – 14

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

TRUSTEES' REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2020

The Trustees present their report and accounts for the period ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity trust deed, the Charities Act 2011 and the Statement of Recommended Practice, "Accounting and Reporting by Charities" (FRS 102).

Structure, governance and management

The Burlington Magazine Foundation CIO is constituted by a Rules of Constitution document, dated 13th February 2020, and is a registered charity, No. 1187286. Its registered office is based at the freehold property owned by the Foundation, situated at 14-16 Duke's Road, London WC1H 9SZ.

The Trustees who served during the period were:

John Nicoll (Chairman) Professor Dawn Ades CBE FBA Sir Nicholas Goodison FBA FSA Sir Nicholas Penny FBA FSA Dr Paul Williamson OBE FSA Hugo Chapman Dr Gabriele Finaldi Elizabeth Cropper Andrea Rose CMG OBE Xavier Salomon (resigned 9 June) Tim Sanderson Desmond Shawe-Taylor LVO

By the terms of the Rules of Constitution document, the Trustees are entitled to apply the capital and income of the Trust Fund for the benefit of any of the charitable objects, or they may accumulate the capital or interest as an accretion to the capital of the Trust Fund.

By terms of the Rules of Constitution document, the Trustees may at their discretion invest monies in the purchase of or subscription for stocks, funds, shares or other investments or property including the purchase of freehold property. The Trustees have the full and unrestricted powers of investing and transposing investments of trust monies in all respects as if they were absolute beneficial owners, and in addition the Trustees may invest the whole or part of the Trust Fund in the share of any company without the need for diversification. The Trustees have agreed an investment policy whereby the objective is to preserve the real capital value of the investments in the long term whilst achieving the maximum financial return on the charity's assets through a low to medium risk portfolio.

The Burlington Magazine Foundation CIO acquired by Stock Transfer Form dated 20th February 2020, fifty per cent of Burlington Magazine Publications Limited ("BMPL"), a registered company and registered charity, which itself has a wholly owned subsidiary, The Burlington House Fair Limited ("BHF"). Both of these companies are incorporated in England and Wales and can be contacted via The Burlington Magazine Foundation.

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to manage exposure to the major risks.

Objectives and activities

The purposes for which The Burlington Magazine Foundation CIO was established are the advancement of the education of the public in the field of art history and the contemporary arts, and in particular by supporting (financially or otherwise) The Burlington Magazine; the advancement, promotion and encouragement of research in the field of art history and the contemporary arts and the dissemination of the results of such research; the encouragement of the preservation and restoration of works of art and the promotion of the development and dissemination of preservation and restoration techniques for the benefit of the public.

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

TRUSTEES' REPORT (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2020

The Trustees have had regard to the Charity Commission's guidance and the need to disclose how the Charity is providing benefit to the public.

The main charitable activity is to support financially or otherwise the publication of The Burlington Magazine, primarily by managing the endowment funds and investing the same for the purpose of providing long term financial security for The Burlington Magazine; thereafter to support The Burlington Magazine through grants made to specific requirements of the publication. The principal purpose of The Burlington Magazine is to publish academic research carried out by art historians working in public institutions and universities, and independently. Public access to The Burlington Magazine is provided through libraries, JSTOR and via the website. Substantially reduced-rate subscriptions are provided to academics and students and travel scholarships are awarded to post graduate students for purposes of research.

The Burlington Magazine Foundation CIO owns a freehold property, which it provides rent free to The Burlington Magazine Publications Limited for office accommodation.

The Burlington Magazine Foundation CIO has no paid employees. All its Trustees are unpaid.

Achievements and performance

The Burlington Magazine Foundation CIO ("BMF") had incoming resources for the period ended 31 December 2020 of £86,615, including donations of £4,325. BMF's net expenses were £122,420. BMF's grant to BMPL for 2020 was £100,000. There was also a grant made in the year for scholarship costs of £7,500, and another grant made in the year for The Contemporary Art Writing Prize of £1,000.

The Burlington Magazine Publications Limited produced a surplus for the year of £5,603 (deficit in 2019: £76,743).

The Burlington House Fair Limited ("BHF"), a wholly owned subsidiary of The Burlington Magazine Publications Limited, made a donation of £34,416 (2019: £36,947) under Gift Aid to the Burlington Magazine Publications Limited. The donation was made from proceeds realised through the activities of the organisation, publication and promotion of fine arts events, publications and activities for the year.

Reserves policy

The charity’s reserves policy is such that the charity should hold between 5% - 10% of its asset portfolio in unrestricted cash reserves in the event it is needed to cover cash-flow shortfalls experienced by BMPL. The value of the Foundation’s Investment portfolio at year-end was £2,982,753 (see note 11). The charity’s free cash reserves at 31 December 2020 were £72,411 (or 2.42%). In addition, The Burlington Magazine Publications Limited acted as Custodian for £841,964 of free cash as at 31 December 2020.

Appointment of trustees

Trustees of BMF are appointed by the Trustees of BMF following recommendation by the Nominations Committee, who receive and solicit recommendations of appropriate candidates based on a number of skill-sets relevant to the Charity’s needs. There must be no fewer than three and no more than twelve trustees.

On behalf of the board of Trustees

…………………….. John Nicoll – Chairman Trustee

Dated: 30 June 2021

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE BURLINGTON MAGAZINE FOUNDATION

I report to the trustees on my examination of the accounts of The Burlington Magazine Foundation for the period ended 31 December 2020.

Responsibilities and basis of report

As the charity trustees of the Foundation you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Foundation’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. Accounting records were not kept in respect of the Foundation as required by section 130 of the Act; or

  2. The accounts do not accords with those records; or

  3. The accounts do not comply with the applicable requirements concerning the form and contents of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mark Cummins FCCA FCIE On behalf of:

TC Group The Courtyard Shoreham Road Upper Beeding Steyning West Sussex BN44 3TN

Dated: 22 July 2021

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE PERIOD ENDED 31 DECEMBER 2020

Notes
Income from:
Income from generated funds
Donations & legacies
3
Investment income
4
Other income
¤
Total income
Expenditure on:
Charitable activities
Expenditure in furtherance of the Charity's
objectives
5
Total expenditure

Transfer of net assets from BMF
18
Net gains on investment assets
10
Net (expenditure) / income
Fund balances at 10 January 2020
Fund balances at 31 December 2020		 Unrestricted
funds
£
3,325
77,290
5,000
85,615
113,920
113,920
3,786,519
398,714
4,156,928
-
4,156,928		 Restricted
funds
£
1,000
-
-
1,000
8,500
 Total
2020
£
4,325
77,290
5,000
86,615
122,420


8,500
11,000
-
3,500
-
3,500
122,420

3,797,519
398,714

4,160,428
-
4,160,428

All activities were continued in the period. There are no recognised gains or losses other than those reported on the Statement of Financial Activities.

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
9
Investments
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one year
12
Income funds
Restricted funds
13
Unrestricted funds		 31 December 2020
£
£
244,934
2,982,753
3,227,687
870,230
72,411
942,641
(9,900)
932,741
4,160,428
3,500
4,156,928
4,160,428		 31 December 2020
£
£
244,934
2,982,753
3,227,687
870,230
72,411
942,641
(9,900)
932,741
4,160,428
3,500
4,156,928
4,160,428
3,227,687
932,741
942,641
(9,900)
4,160,428
3,500
4,156,928
4,160,428

The accounts were approved by the Trustees on 30 June 2021

.............................. .............................. John Nicoll - Chairman Tim Sanderson - Treasurer Trustee Trustee

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

CASH FLOW STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2020

Notes
Net cash used in operating activities
17
Cashflows from investing activities
Investment income
Cash provided by investing activities
Increase in cash
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period		 31 December 2020
£
£
(4,879)
77,290
77,290
72,411
-
72,411		 31 December 2020
£
£
(4,879)
77,290
77,290
72,411
-
72,411
72,411
-
72,411

-6-

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

1 Statutory information

The Burlington Magazine Foundation is a charity, registered in England and Wales. The charity’s registered number and principal office address can be found in the Trustees’ Report.

2 Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2.1 Basis of preparation

The accounts have been prepared in accordance with Accounting & Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Burlington Magazine Foundation meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). These financial statements reflect the transfer of net assets on 1 April 2020 from The Burlington Magazine Foundation (old charity).

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

2.2 Income

Grants and donations received are recognised in the Statement of Financial Activities in accordance with the terms attached to the grants or donations.

Investment income is accounted for using the accruals basis of accounting.

2.3 Expenditure

All expenditure is accounted for on an accruals basis, and where incurred directly to further the Foundation's charitable objectives, is shown under the heading of direct charitable expenditure.

2.4 Tangible fixed assets and depreciation

Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold buildings 100 years straight line Fixtures and fittings 3 years straight line

2.5 Investments

Investments are valued at fair value at the balance sheet date.

2.6 Foreign currency translation

Transactions denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the beginning of the month in which the transaction takes place.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Foreign exchange differences arising on transactions and on year-end translation are taken to the statement of financial activities in the year in which they arise.

2.7 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

-7-

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2020

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments. The trustees seek to use short and medium term deposits where possible to maximise the return on monies held at the bank and to manage cash flow.

2.9 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

2.10 Accumulated funds

Unrestricted funds comprise funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

Restricted funds comprise funds which have been specified by funders for specific projects.

2.11 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The trustees do not consider that there are any critical estimates or areas of judgement that need to be brought to the attention of the readers of the financial statements.

3 Donations & legacies

Donations and grants
Restricted funds:
Other grants – see note 14
Investment income
Investment income from cash and investments		 Unrestricted
funds
£
3,325		 Restricted
funds
£
1,000		 Total 2020
£
4,325
1,000
1,000
2020
£
77,290

4 Investment income

-8-

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2020

5 Total expenditure

5
Total expenditure
Depreciation
£
Charitable activities
Activities undertaken
directly
3,495
Grant funding of
activities
-
Total
3,495		 Other
costs
£
10,425
-
10,425		 Grant
funding
£
-
108,500
108,500		 Total
2020
£
13,920
108,500

122,420

Charitable activity costs include governance costs for independent examination fees of £3,400.

6 Grants payable

Grants payable
BMPL
Scholarship
Contemporary Art Writing Prize		 Total
2020
£
100,000
7,500
1,000

108,500

7 Employees

There were no employees during the period.

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or expenses during the period.

-9-

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2020

9 Tangible fixed assets

Freehold
land and
buildings
Fixtures
and fittings
£
£
Cost
At 10 January 2020
-
-
Transfer
316,546
118,689
At 31 December 2020
316,546
118,689
Depreciation
At 10 January 2020
-
-
Charge for the period
2,374
1,121
Transfer
70,418
116,388
At 31 December 2020
72,792
117,509
Net book value
At 31 December 2020
243,754
1,180
At 10 January 2020
-
-		 Total
£
-
435,235
-
-
3,495
186,806
190,301
244,934
-

The Burlington Magazine Foundation CIO holds for its own and related companies' use a four storey building built around 1820 in good structural and decorative repair. The purchase price of the property including fixtures and fittings was £316,546. Having taken independent professional advice, the Trustees are of the opinion that the open market value of the property is not less than £750,000. No revaluation has been reflected in these accounts.

The Burlington Magazine Foundation CIO owns fixtures and fittings, some of which now have little market value. For insurance purposes these are insured at replacement costs.

All of the above fixed assets are held for the Charity's own use, for direct charitable activities. All of the above fixed assets were transferred to The Burlington Magazine Foundation (CIO) on 1 April 2020 from The Burlington Magazine Foundation (Charity Registration number: 295019).

-10-

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2020

10
Fixed asset investments
Fair value at 10 January 2020
Dividend income reinvested
Change in value in the period
Transfer
Fair value at 31 March 2020
The investments consist of:-
Black Rock - Common Investment Fund
Black Rock – Charishare
M & G Investments – Charifund
Newton
Cazenove
COIF Global Equity Fund
COIF Investment Fund		 2020
Listed
£
-
41,451
398,714
**2,542,588 **
**2,982,753 **
825,550
285,086
344,494
354,009
337,220
496,340
340,054
**2,982,753 **

Other fixed asset investment

The Burlington Magazine Foundation CIO acquired fifty per cent of The Burlington Magazine Publications Limited ("BMPL"), by Stock Transfer Form dated 20 February 2020, a registered company and registered charity, which itself has a wholly owned subsidiary, The Burlington House Fair Limited ("BHF").

In view of the nature of the acquisition of the shareholding in BMPL, no value has been ascribed to this investment in these accounts. During the year ended 31 December 2020, BMPL (including its subsidiary BHF) had total incoming resources of £1,039,573 (2019: £995,606). After resources expended of £1,033,970 (2019: £1,072,349) it had an overall net increase in funds of £5,603 (2019: decrease in funds £76,743). At 31 December 2020 BMPL had aggregate net assets of £60,881 (2019: net assets of £55,278).

BHF achieved a turnover of £47,664 (2019: £66,944) and a net profit of £Nil (2019: £Nil). The 2020 operating profit of £34,416 (2019: £36,947) was donated to The Burlington Magazine Publications Limited. At 31 December 2020 BHF had net assets of £2 (2019: £2).

All of the above investments were transferred to the charity on 1 April 2020 from The Burlington Magazine Foundation (Charity Registration number: 295019).

-11-

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2020

11
Debtors
Due from BMF Inc
Due from BMPL
12
Creditors: amounts falling due within one year
Accruals		 2020
£
28,266
841,964
870,230
2020
£
9,900
9,900

13 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at Incoming Resources Balance
10 January resources expended Transfers at 31
2020 December
2020
£ £ £ £ £
Scholarship for the study of French 18thCentury
fine and decorative art
-		 - (7,500) 10,000 2,500

Contemporary Writing Prize		 - 1,000 (1,000) 1,000 1,000
- 1,000 (8,500) 11,000 3,500

-12-

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2020

Restricted funds (continued)

The Scholarship for the study of French 18[th] Century fine and decorative art is an annual award open to applicants studying or intending to study for MA, PhD, post-doctoral or independent research.

The Contemporary Writing Prize funding relates to donations received specifically to fund the prize.

14 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
£ £ £
31 December 2020
Fund balances are represented by:
Tangible fixed assets 244,934 - 244,934
Investments 2,982,753 - 2,982,753
Current assets 939,041 3,500 942,641
Creditors: amounts falling due within one year (9,900) - (9,900)
4,156,928 3,500 4,160,428

15 Control

No one person or entity has control over the charity. The entity is governed by its trustees.

-13-

THE BURLINGTON MAGAZINE FOUNDATION (CIO)

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE PERIOD ENDED 31 DECEMBER 2020

16 Related parties

The Burlington Magazine Foundation CIO controls The Burlington Magazine Publications Limited, a company with charitable status incorporated in England and Wales, by virtue of the 50 'A' shares that it owns which carry 75% of the total voting rights.

At the balance sheet date £841,964 was due from The Burlington Magazine Publications Limited and £28,266 was due from Burlington Magazine Foundation Inc. These amounts were transferred from The Burlington Magazine Foundation (Charity number: 295019) on 1 April 2020.

The charity had no employees in the year. Instead it utilised the services of Burlington Magazine Publications Limited. A total of £Nil has been charged by Burlington Magazine Publications Limited to reflect these services.

17 Net cash used in operating activities
Net (expenditure) / income
Depreciation of tangible fixed assets
Transfer of tangible fixed assets
Increase/(decrease) in creditors
(Increase)/decrease in debtors
Decrease / (increase) in investments
Investment income		 2020
4,160,428
3,495
(248,429)
9,900
(870,230)
(2,982,753)
(77,290)
(4,879)

18 Transfer of net assets

On the 1 April 2020 the assets and liabilities of The Burlington Magazine Foundation (Charity Registration number 295019) were transferred to the charity, who also took over the activities of the charity.

-14-

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