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2022-03-31-accounts

KING LEAR ARTS CIO

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

For the year ended

31 MARCH 2022

1

CONTENTS

GENERAL INFORMATION 3
ANNUAL REPORT OF THE TRUSTEES 4
STATEMENT OF FINANCIAL ACTIVITIES 9
BALANCE SHEET 9
NOTES TO THE FINANCIAL STATEMENTS 10
INDEPENDENT EXAMINER’S REPORT 11

2

GENERAL INFORMATION

Administrative Details

Charity name: King Lear Arts

Registered Charity Number: 1194586

Registered with the Charity Commission for England and Wales: 25 May 2021

Registered Office: King Lear Arts, PO Box 704, 19-21 Crawford Street, London, W1H 1PJ

Trustees

Andrew Browning (Chair)

Anneliese Gilchrist (Secretary)

Henry Bowen (Treasurer)

Harriet Rudd-Jones (Trustee)

All 25 May 2021- present

Our Advisors

Chartered Accountant: Stephanie James, Stephanie James Chartered Accountant, Lincoln Hill, Ironbridge, Shropshire, TF8 7NY

Examiner: Hilary Payne, AAT, Mill Farm Drive, Randlay, Telford, Shropshire, TF3 2NA

Governing document

King Lear Arts is a Foundation Charitable Incorporated Organisation (CIO) and a registered charity currently with a board of four trustees. King Lear Arts is governed by its constitution, as approved by the Charity Commission, which is a constitution of a charitable incorporated organisation whose only voting members are its charity trustees. [SORP Para 1.25]

Appointment of Trustees

Apart from the first charity trustees, every trustee must be appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees.

In selecting individuals for appointment as charity trustees, the charity trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO. [SORP Para 1.25]

3

ANNUAL REPORT OF THE TRUSTEES

The trustees present their report and the financial statements for King Lear Arts for the period from 25 May 2021 to 31 March 2022.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102).

Objectives

King Lear Arts exists:

“For the public benefit, the promotion of the arts and to advance education in the arts, primarily in the United Kingdom, by offering or promoting opportunities for active participation in the creative arts.

‘Active participation’ means participants creating or performing works themselves, rather than viewing, listening to, or otherwise consuming works created or performed by others.

‘Creative arts’ means any of the following: crafts, dance, design, digital arts and media, film, literature (including creative writing and poetry), music, opera, photography, theatre, the visual arts, and cross-arts practices.”

Source: King Lear Arts Constitution approved by the Charity Commission [SORP Para 1.17]

Chair’s Introduction

Since the King Lear Prizes was first set up in March 2020, at the beginning of the COVID-19 pandemic, King Lear Arts has run a number of activities and made substantial progress towards its goals. The initial vision to help older people who were locked down during the pandemic take part in artistic activities, has developed into a longer-term commitment to fostering active participation in the creative arts.

As we continue to develop new activities and to expand our reach, we will strengthen the governance and organisational capacity of King Lear Arts. I would like to thank the Board of Trustees, our advisors, all our donors, volunteers and participants for their efforts during the period.

Andrew Browning, Chair, King Lear Arts

4

Key Activities

King Lear Prizes 2020

The King Lear Prizes were set up in response to the first lockdown due to the COVID-19 pandemic in March 2020. The intention was to run a creative arts competition to give people who were isolating in their homes a creative project to get involved in.

The competition attracted over 14,000 entries from around 5,500 people across the United Kingdom demonstrating that there is a huge appetite for active arts participation activities, particularly amongst older people.

After the success of the King Lear Prizes, in particular the high level of adoption of digital technology by older people, and the positive impact on participants who had not regularly actively participated in the arts in the past, it is clear that there is significant potential to transform active arts participation levels in the UK, using technology to reach participants at scale.

Registration with the Charity Commission

Following the recruitment of founding trustees and an application submitted to the Charity Commission for England and Wales, King Lear Arts was registered as a charity on 25 May 2021.

King Lear Prizes 2021

The second King Lear Prizes competition was held in 2021, and the competition received around 6,500 entries from around 3,000 people. The competition had various improvements, including new categories specifically for ‘first time’ participants in certain arts activities, and more efficient process for running the competition.

The reduced number of entries was due in large part to the introduction of entry fees (to defray the costs of running the competition). However feedback on the second competition from participants remained very positive.

King Lear Arts Club

In addition to the King Lear Prizes competitions, King Lear Arts ran a free King Lear Arts Club weekly arts challenges email newsletter during this period, which generated moderate levels of engagement (consistent 50-55% open rates, 50-100 entrants per week, 2% week-on-week growth in subscribers, around 1,500-2,000 subscribers over the period).

[SORP Paras 1.17 and 1.19]

Trustees have had regard to the guidance issued by the Charity Commission on public benefit in both the setting up of King Lear Arts (in particular the definition of the charity’s objects), and in their monitoring the activities of the charity and their alignment with the charity’s public benefit. [SORP Para 1.18]

5

Key Achievements

6

Financial Review

These accounts relate to the period from 25 May 2021 to 31 March 2022, but we have also included the period from 01 August 2020 to 24 May 2021 in the financial statements (prior to the approval of the registration of King Lear Arts with the Charity Commission, but while the King Lear Prizes and related activities were already running), to provide context and transparency.

The financial activities of King Lear Arts have been focused on the two King Lear Prizes competitions, which are set out in Note 4 of the financial statements. The costs of running the competition (in wages & salaries, advertising and marketing, IT & software, printing, postage and stationery, competition prizes, judging fees & gratuities) were funded in different ways:

There has been a net deficit before financing in the period. However, King Lear Arts has been able to fund its activities in these initial ‘startup’ periods through generous donations from individuals and loans to the charity from the Chair of the Board of Trustees.

The loans to the charity will be repaid if and only if funds for that purpose become available to the charity from donations. It is expected that this would happen in the financial year 2023/24 at the earliest, and no interest is charged on these loans.

To fund future activities, the Trustees agreed a Fundraising Strategy in June 2021, which will be taken forward in the following period. At the end of the period the charity has sufficient cash to finance its ongoing activities. [SORP Para 1.21]. Based on the Fundraising Strategy and expected income, the Trustees do not expect there to be a to be a net deficit before financing on an ongoing basis.

Reserves Policy and Risk Management

King Lear Arts does not currently hold any financial reserves as it has been developing its activities and its fundraising strategy during the period, but will seek to build reserves in the coming years as fundraising and operating surpluses allow. [SORP Para 1.22]

The Trustees review King Lear Arts financial information on a regular basis at Trustees’ meetings at an overall and an individual project level.

7

Declarations

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees

----- Start of picture text -----
Signatures
Full names Andrew Browning Henry Bowen
Positions Chair Treasurer
Date
29/01/2023
----- End of picture text -----

8

KING LEAR ARTS CIO RECEIPTS AND PAYMENTS ACCOUNT FOR PERIOD ENDING 31 MARCH 2022 Receipts and payments 2510512021 3110312022 2410512Q21 Ttstsi Unrestrlcted funds Unrestrfcted lunds UnresMcted funds Receipts Donations, legaciES and sirnilarinrorne 921 9.810 10,$31 Fundraising (gros91 Comwtillon eThtryfe&s J2,e65 Totalgross Income 926 kncroas• In I￿n$ to th• ¢hJrty 2.902 20.024 22.9 Totalreceipts Payments Charftabl@ Payrn8nts 3,825 20,234 10,394 24,059 11,406 3,922 2,58J 340 Adverbsing & ￿rketIng 1.742 98 Prinllng. & slallonbry EquIp￿nI SuDdryeip?D5e5 Subtot•l 240 303 6.690 35,923 42,613 Fundralslng 0xp9n￿$ ¢0M￿tIll0￿ 290 0,250 C3rd prottssingfees Q1h¢r￿l￿till0n PXPEll¥FS Subtotal 1,835 24 90 1,984 9,456 11,440 Totalpayjnents 51,053 Nel recelpls/(paymentsJ Cash funds at end of lastpeiyod Cash funds at end of this peri¢)d 12.067 12.067 Statement of assets and liabilities at end of the period 3110312022 2410512021 Cash Funds Curtnlat¢aurtl 9267 2.800 12.Q67 Dep051t3ciount 2,800 16,913 Loan from Imstee IZ2.9261 IZDJ)241 Net ¢ash liabilytes provqd bythB Tru5ts¥s on 25 January2023 Ardrew8r¢wnlng

KING LEAR ARTS CIO

RECEIPTS AND PAYMENTS ACCOUNT FOR THE PERIOD TO 31 MARCH 2022

Notes

1 Accounting periods

The first accounting period, between 1 August 2020 and 24 May 2021, represents the period prior to registration at the Charity Commision for England and Wales, during which the King Lear Prizes were set up. This was the time of the COVID-19 pandemic.

The second accounting period, between 25 May 2021 and 31 March 2022, represents the first period postregistration with the Charity Commission.

2 Donations

Donations include £685 from Lear Arts Ltd, a charitable company set by Andrew Browning, a trustee of King Lear Arts.

3 Loan to the charity from its trustee

The balance on the bridging loan represents charity expenditure met by personal funds of the trustee, Andrew Browning, No interest is charged on the loan and it will be repaid when charity funds are available, from expected donations to the charity.

4 King Lear Prizes

A summary of the income and costs from the charity's two King Lear Prizes competitions held to date is as follows:

Income from competitions
Donations
Competition entry fees
Direct costs
Competition prizes
Judging fees & gratuities
Card processing fees
Other competition expenses
Gross surplus
Overheads
Net deficit before financing		 King Lear Prizes 2021
King Lear Prizes 2020
Total
£
£
£
921 9,610 10,531
32,663 - 32,663		 King Lear Prizes 2021
King Lear Prizes 2020
Total
£
£
£
921 9,610 10,531
32,663 - 32,663
33,584 9,610 43,194
1,160 7,090
250 1,015
1,700 135
- 90		 8,250
1,265
1,835
90
3,110 8,330 11,440
30,474 1,280 31,754
42,613
(10,859)

Independent examiner's report on the accounts

Section A Independent Examiner’s Report

Report to the trustees/ Charity Name KING LEAR ARTS CIO members of On accounts for the 31 MARCH 2022 Charity no 1194586 period ended (if any)

I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the period ended 31/03/2022.

Responsibilities and As the charity trustees of the Trust, you are responsible for the preparation basis of report of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed 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 which gives me cause to believe that in, any material respect:

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

Signed:

Date: 19/01/2023

Name: Hilary Payne

Relevant professional AAT L4 qualification(s) or body (if any):

Address: Mill Farm Drive, Randlay, Telford TF3 2NA

Section B Disclosure

N/A

October 2018

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