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RNLI ANNUAL REPORT AND ACCOUNTS 2023 We’re getting ready to face any storm

Kurt Jackson

CONTENTS

Training as One Crew: Tenby RNLI lifeboat crew and lifeguards hone their skills together during a medical exercise

Annual Report of the Trustees of the Royal National Lifeboat Institution

2 Welcome 4 What we do 6 Our impact 20 Our plans 26 Financial review 32 Governance 46 Independent auditor's report 48 Financial statements 54 Notes to the accounts 80 Officers and contacts 87 Our structure 88 Thank you

RNLI ANNUAL REPORT 1 AND ACCOUNTS 2023

WELCOME

WELCOME FROM THE CHAIR AND CHIEF EXECUTIVE

‘ We faced the storm together, building foundations to ensure the future of our extraordinary organisation’

As supporters across the generations gather to commemorate and celebrate 200 years of RNLI lifesaving, we should pause to reflect on the vital work our people carried out in 2023.

As you read this, special RNLI anniversary They got a wonderful response from the events are in full swing around our nations 80,000 people in the crowd, and it really and regions – and I am looking forward to highlighted the powerful relationship we seeing our communities come together as have with the GAA, which raises water One Crew at 18.24pm on 1 August. But, for safety awareness to millions of people now, it is an honour to look back on what our around Ireland. people achieved in 2023. Another highlight was in September,

whistlestop tour of six stations where I met lots of inspirational people, from shop volunteers to lifeboat launchers. The trip provided valuable insight for our operations specialists, to understand the range of rescues and challenges the volunteers face. It was good to hear that, although the types and numbers of shouts have shifted over the years, the supportive bond and camaraderie of the crews remain unchanged.

people achieved in 2023. Another highlight was in September, Despite an ongoing cost-of-living crisis at Margate, when people young and old and conflict overseas, the RNLI family turned out for the naming ceremony of continued to pull together and adapt to an the station’s new Atlantic 85. There is unpredictable environment. We worked hard something very special about this form to ensure the sustainability of our charity and of ceremony and service that’s been we built new partnerships, raised more funds passed through the generations. It is still and saved many lives. Our lifeboat crews and relevant today, with its unique blend of lifeguards were busy, facing everything from community and tradition, and all the 90mph winds and freezing seas to mass beach innovation of a modern emergency service. rescues in the heat of the summer season. The day happened to be the 30th year One of the things that really struck me of volunteering for Lifeboat Operations in my first year as RNLI Chair, was how many Manager Del Amas too, so it was an honour different people, in so many different places, to present him with a long service award. support our cause. For example, I was lucky In Queensferry, it was also a privilege enough to be at Croke Park in Dublin, for a to present a long service medal to Tom hurling semi-final. It was deeply moving to Robertson, who has volunteered in crew see our crew members walk onto the pitch and station roles for 50 years. Tom was alongside the Gaelic Athletic Association one of many RNLI people I met in Scotland (GAA) players at half time. as part of a coast review. This was a

Sometimes their rescues deserve special recognition, like when Penlee lifeboat crew battled gale force winds, rough seas and driving rain to save eight people from a disabled yacht (page 7). Coxswain Patch Harvey is to be awarded the RNLI’s Silver Medal for his courage, leadership and excellent boathandling skills during this epic rescue.

Our crew would not have the boats and protection they need to save lives without

our fundraisers, and it was amazing to learn about some of their adventures in 2023. Like

Alan Cheesley, who completed a 5,000-mile cycle challenge in May. He raised £10,000 for our lifesavers by visiting 200 lifeboat

stations, a fitting number to mark our special birthday.

Of course, we also put in an immense amount of work to prepare us for our 200th anniversary in 2024. Together, we planned a lifeboat festival and a myriad of other events across the UK and Ireland, introduced a new range of anniversary themed gifts, developed a Storm Force Rescue video game, and launched our 200 Voices podcast series that brought a new RNLI voice to the world every day, for 200 days.

However you supported the RNLI in 2023 – whether that was heading to the rescue yourself, ensuring our lifeguards and lifeboat crews had everything they needed, sharing water safety messages or raising crucial funds – you helped to power our charity with your passion, talent and kindness.

Thank you for everything you continue to do for the RNLI.

Janet Legrand OBE KC (Hon) RNLI Chair

‘ It has been an honour to lead the Royal National Lifeboat Institution into our 200th anniversary year’

Keeping us ready to face any storm

The past 5 years have been some of the most turbulent in RNLI history: dealing with the impact of a pandemic and rising inflation, a significant increase in demand, and heightened public scrutiny – especially in response to small boat crossings in the English Channel. Mark Dowie has been the right leader at the right time. He has tackled criticism headon, reaffirming the RNLI’s vision to save every one. He has stayed true to the RNLI’s purpose thanks to our supporters and fundraisers, throughout – generating amazing support who provided an incredible £236.1M in net and income, sector-wide recognition, and new income in 2023. heights of global influence. He has much to be To them, and indeed to every member proud of, not least maintaining a 24/7 rescue of our One Crew that powers this charity, service throughout and bringing the RNLI’s I would like to say a heartfelt ‘thank you’ for people together as one crew. everything you did last year to help us Save Thank you, Mark. We wish you fair winds Every One we can. and following seas. It has been an honour to lead the Royal Peter Sparkes takes up the helm as Chief National Lifeboat Institution into our 200th Executive in June 2024. We are confident he anniversary year, and to have played a part in has the right skills, experience and gravitas to laying firm foundations for many more years take our charity forward into its third century to come. of saving lives at sea.

As I look back on my final full year at the helm of this special Institution, I feel extremely proud of our charity’s achievements, and of the remarkable people who made them possible.

One of my personal highlights of 2023 highly effective patrols on 239 beaches was meeting so many of them: volunteers around the UK and Channel Islands. and staff at lifeboat stations, lifeguarded In addition to our rescue work, we beaches, shops, fundraising branches, continued to conduct vital safety projects offices and boat-building facilities. and share messages at home and overseas, It sometimes comes as a surprise to new all in a bid to tackle the drowning tragedies RNLI supporters that we build and maintain that devastate families and communities our own lifeboats. But as a lifesaving charity, every day, around the world. At the end of it is essential we have control over the the year, we were honoured to learn that quality and costs involved. The team at the our international endeavours were to be Inshore Lifeboat Centre in Cowes on the Isle recognised by UNESCO as part of their of Wight built 18 and refitted 52 inshore commemoration of our 200th anniversary. craft in 2023, while the All-weather Lifeboat In September, drowning prevention Centre team in Poole, Dorset, built four experts from around the globe visited the new all-weather lifeboats and refitted RNLI College to take part in our Leaders a further nine. in Lifesaving course. The course brought A day doesn’t go by without at least together 15 people from eight countries to one of our courageous volunteer crews share lifesaving expertise and experience launching their highly capable lifeboats – just one of the many ways in which the to the rescue. While 2023 was not quite RNLI is playing a part in tackling the global as busy as the previous year in terms of drowning problem.

thanks to our supporters and fundraisers, who provided an incredible £236.1M in net income in 2023.

Janet Legrand OBE KC (Hon) | RNLI Chair

A day doesn’t go by without at least one of our courageous volunteer crews launching their highly capable lifeboats to the rescue. While 2023 was not quite as busy as the previous year in terms of launches, hundreds of people are only here today because our crews saved their lives during the course of 2023. Meanwhile our lifeguards attended thousands of incidents, despite the wet summer, as part of their

Mark Dowie

RNLI Chief Executive

Whether we are sharing safety campaigns and knowledge or providing our lifesavers with the equipment, skills and facilities they need; it all comes at a financial cost. This means that all our lifesaving activity is

RNLI ANNUAL REPORT 3 AND ACCOUNTS 2023

WHAT WE DO

We won’t stand by while anyone, anywhere, drowns. The RNLI saves lives and prevents drowning through these core activities:

LIFEBOATS

Our lifeboat crews aim to reach at least 90% of casualties within 10 nautical miles of the coast, within 30 minutes of a lifeboat launch, in any weather. Most crew members are volunteers. See page 10 for more.

Powered by kindness: Coldingham lifeguards with Eyemouth crew, onboard their new D class lifeboat Sheila . The inshore craft, generously funded by Ann Wilson and named in memory of her sister, arrived on station in May 2023

LIFEGUARDS INTERNATIONAL

Our lifeguards aim to reach anyone up to 300m from shore, within the red and yellow flags on RNLI-patrolled beaches, within 3½ minutes. Most of their work is about helping people avoid getting into danger. See page 14.

We also work with partners globally and in countries where drowning is a significant problem to raise awareness, widen the research base and help develop solutions to save more lives. See page 17. FUNDRAISING

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10 278
,
FUNDRAISING OPERATIONAL
23000+ 1663
As a charity independent of government, we rely on the generous support of donors to meet the cost of our , TOTAL RNLI , CREW ARE
TOTAL LIFEGUARDS
lifesaving activities. We set exacting standards in our VOLUNTEERS (1,565 PAID AND 98 VOLUNTEERS) VOLUNTEERS
fundraising to protect and maintain good relationships with
our supporters and ensure financial stability. See page 18.
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WATER SAFETY

Our water safety experts work with lifeboat and lifeguard teams to break the drowning chain – prioritising by risk, working with others, positively educating all and remaining inclusive to reach every one. See page 16.

READY TO SAVE LIVES

RNLI volunteer lifeboat crews provide a 24-hour search and rescue service in the UK and Ireland, and our seasonal lifeguards look after people on busy beaches.

MORE THAN A RESCUE SERVICE

We are here to save every one we can. To save every one, we need to reach every one. That’s why, with your support, the RNLI also makes early interventions by influencing, supervising and educating people. We work with partners to understand the risks and offer innovative solutions, and our water safety teams give that knowledge to as many people as they can. We are proud to share that expertise internationally too. We give support in countries where drowning rates are significant, and work with like-minded organisations to raise awareness of the problem globally and how we can address it together.

These lifesaving activities are underpinned by people and initiatives that raise funds and ensure that we are well-governed and compliant.

Volunteers are at the heart of our charity, supported by expert staff to enable communities to save lives. More than 10,000 of our operational crew members, and around 100 of our lifeguards, are volunteers. More than 14,000 dedicated volunteers also raise funds and awareness, give water safety advice and help in our shops, museums and offices.

RNLI ANNUAL REPORT 5 AND ACCOUNTS 2023

OUR IMPACT CASE STUDY

OUR IMPACT IN 2023

People from all across our charity came together as One Crew to save hundreds of lives and protect thousands more people.

Lifeboats, lifeguards and water safety teams united once again to deliver a world-class lifesaving service, with 238 lifeboat crews launching around the clock to people in distress, and lifeguards delivering a seasonal lifesaving service on 239 beaches (see page 8). Despite it being another busy year, the number of incidents was lower than in 2022, especially for lifeguards. Poor weather meant fewer people visited our coasts in July and August, although a late heatwave triggered a spike in water-based activity during September. We continued to see a growing trend in paddle sports and the use of larger inflatables. Together, our lifeboat crews and lifeguards saved a total of 355 lives in 2023, an average of nearly one life every day. RNLI lifeboat crews aided 10,734 people (16,476 in 2022) and saved 269 lives (389). Our lifeguards carried out more than 2.9M (4M+) preventative actions and saved 86 lives (117). Lifeguards aided a further 19,979 individuals, compared with 23,204 in 2022. See page 8 for more lifesaving statistics. While 2023 saw fewer people crossing the English Channel in small boats, it remained an important area of activity for a number of our lifeboat stations on the south-east coast of England. We shared our latest innovations for dealing with multiple people in the water with our fellow lifesavers at Société Nationale de Sauvetage en Mer (SNSM) in France.

We maintained awareness of this core safety message among our target audience and it continued to make real-world impacts, with more examples of adults and children saving themselves or helping others by remembering our advice.

Thousands of young people received free Swim Safe sessions and many thousands more learned crucial safety advice directly from lifeguards and water safety volunteers. We also worked with scout and guide organisations to spread water safety knowledge to more young people.

More Gaelic Athletic Association (GAA) clubs and communities got involved in our blossoming water safety partnership in Ireland in 2023 and we continued our vital work with the Black Swimming Association, in their Blue Hour programme and other pioneering research. Meanwhile, our Ambassador Scheme grew to 1,000 local businesses amplifying our water safety messages at the coast.

The RNLI continued to take action on global drowning. In 2023, we provided technical expertise and support to the governments of Ireland and Bangladesh, resulting in the World Health Assembly adopting its first-ever resolution on global drowning prevention. We welcomed 15 delegates from lifesaving organisations around the world to our Leaders in Lifesaving course at the RNLI College, and were proud to join forces with partners at home and abroad to commemorate World Drowning Prevention Day. Read about our plans and performance in detail on page 20.

Beyond search and rescue, we continued using our expertise to prevent people from getting into danger in the first place. Following our latest research with the University of Portsmouth, we carefully honed our Float to Live messaging for a new campaign in May.

Facing the storm: the crew of Penlee’s Severn class lifeboat Ivan Ellen

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' We train for this scenario,
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but never in conditions
as bad as these'
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LIFEBOAT LAUNCHES

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9,600
Courage, leadership and boathandling skills:
9,400 Coxswain Patch Harvey (third from right) is to be
9,200 awarded a Silver Medal for Gallantry. His crew
mates will receive Medal Service Certificates
9,000
8,800
8,600
8,400
8,200
8,000
7,800
0
2018 2019 2020 2021 2022 2023
LIFEGUARD INCIDENTS
25,000
22,500
20,000
17,500 84
15,000 PEOPLE AIDED
355
12,500 EACH DAY ON
30 713
AVERAGE BY , LIVES SAVED BY
10,000
RNLI CREWS PEOPLE AIDED BY RNLI RNLI CREWS AND
7,500 AND LIFEGUARDS CREWS AND LIFEGUARDS LIFEGUARDS
0 (109 IN 2022) (39,680 IN 2022) (506 IN 2022)
2018 2019 2020 2021 2022 2023
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Courage, leadership and boathandling skills: Coxswain Patch Harvey (third from right) is to be awarded a Silver Medal for Gallantry. His crew

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Torn to shreds
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In an epic 5-hour rescue, Penlee lifeboat crew battled 90mph winds, rough seas and driving rain to save eight people from a devastated yacht.

The yacht was stranded in a hurricane off the Cornish coast, knocked sideways to the wind with her mainsail ripped to pieces. She was pitching and rolling violently, and taking on water. Some of the people onboard were severely seasick.

Light was fading as Penlee RNLI volunteers launched their Severn class lifeboat Ivan Ellen . ‘We couldn’t see the yacht until we were right on top of it,’ says Coxswain Patch Harvey. ‘The 8m swell made it too dangerous to put one of my crew onboard with a pump. We had no choice but to try towing them into safer water.’

When an attempt to secure the first tow failed, the yacht was less than a mile from land. Meanwhile, the allweather lifeboat was rolling heavily and repeatedly hit by large breaking waves. The RNLI volunteers on deck were up to their waists in water as they prepared a second tow. Time was short and they knew this was their last attempt. Finding a brief lull between sets of waves, Patch expertly manoeuvred the lifeboat close enough to pass the rope and shout instructions across. Although the tow was secured successfully this time, water continued to flood into the yacht and Patch knew the people onboard needed airlifting out.

Patch inched both vessels away from shore while they waited for the coastguard helicopter. Once on scene, the helicopter crew began the tricky task of winching all eight casualties to safety. ‘When the last person was taken off I felt very relieved,’ says Patch. ‘We all did!’ The lifeboat then increased speed and towed the stricken yacht into harbour, where Penlee’s inshore crew helped to secure it alongside.

Visit RNLI.org/magazine to read about more 2023 lifeboat rescues

RNLI ANNUAL REPORT 7 AND ACCOUNTS 2023

OUR IMPACT

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In 2023, we saw fewer lifeboat launches and lifeguard incidents than in 2022. This was
2023 lifesaving probably due to poor weather in July and August, and a higher than average rainfall LIFEBOATS: BY CLASS
throughout the year. However, it was the second busiest year for launches in the past Lifeboat Launches Lives People Number of Hours at sea
statistics decade, and 75% of all lifeguard incidents occurred during June, July and August. saved aided vessels used by vessel
B class 2,991 63 3,100 123 3,398
RNLI LIFESAVING LIFEBOATS: BY RNLI LIFESAVING REGION
D class 2,660 91 2,025 140 2,685
REGIONS IN 2023
Scotland Lifesaving region Launches Lives People Hours at Hours at Crew Severn 933 30 2,383 41 1,971
46 lifeboat stations saved aided sea by sea by assemblies TOTAL LAUNCHES: 9,192
vessel crew E class 848 20 426 4 529
8 lifeguard units TOTAL LIFEBOATS USED: 432
South East England 2,839 93 4,397 3,259 15,110 249 Tamar 545 17 721 27 1,138
Wales, West and Shannon 525 22 995 44 1,174
1,593 60 1,731 2,154 9,927 346
Isle of Man
Trent 494 13 803 30 961
South West England 1,505 34 1,432 2,110 10,147 147 Hovercraft 103 6 70 7 115
Ireland Scotland 1,251 15 1,093 2,034 10,283 149 Mersey 60 6 45 8 139
46 lifeboat stations North and East England 1,041 33 779 1,428 5,924 241 A class 18 0 8 3 12
12 lifeguard units North and Ireland 963 34 1,302 1,363 6,456 96 Rescue
East England watercraft 10 0 3 1 19
36 lifeboat stations Total 9,192 269 10,734 12,348 57,847 1,228
Other 2 1 150 2 201
44 lifeguard units
LIFEBOATS: BY CASUALTY TYPE
Y class 2 0 5 1 2
146 277
Casualty type Launches Lives People XP class 1 0 0 1 4 , Making prevention the priority:
Wales, West saved aided Senior Lifeguard Nick Ellison puts up a windbreak
and Isle of Man Total 9,192 269 10,734 432 12,348 LIVES SAVED SINCE 1824 displaying safety messaging at Le Braye Beach, Jersey
46 lifeboat stations People [†] 3,887 85 4,011
49 lifeguard units Miscellaneous [‡] 1,360 5 67 LIFEGUARDS: BY RNLI LIFESAVING REGION
Powered boats 1,272 62 2,885
Lifesaving region Preventative Incidents Lives People People Casualty Minor Searches Missing Non Near False Antisocial Animals Other
Sailing 900 0 1,683 actions saved rescued aided care first aid and aquatic misses alarms behaviour
Manual watercraft 512 34 620 found assists
South West England Suspected self-harm [§] 485 69 307 South West England 1,297,382 7,501 38 1,933 10,398 613 4,124 57 528 124 971 38 112 58 111
33 lifeboat stations Commercial 384 14 1,161
Wales, West and Isle of Man 582,103 2,300 17 303 4,037 206 986 47 196 555 285 22 38 76 52
87 lifeguard units South East England False alarm 303 0 0
31 lifeboat stations South East England 396,614 2,167 14 168 2,436 269 1,055 30 360 28 51 12 70 6 29
Animals 89 0 0
42 lifeguard units Round the Island Race: Cowes RNLI volunteers North and East England 445,378 1,859 13 156 2,181 222 1,028 38 154 45 136 2 52 19 5
Total 9,192 269 10,734 help a yacht crew in trouble off The Needles
Scotland 43,292 197 0 5 613 13 77 2 7 9 307 1 21 3 0
Someone who would have lost their life had the RNLI not been there.
Ireland 225,159 189 4 32 314 16 107 1 12 4 0 0 50 1 1
Although the number of RNLI beach lifeguard units in 2023 was 242, recruitment †Anyone without a craft or in unknown activity. People accounted for 42% of all launches.
challenges meant that there was no lifeguard service at three of these units: ‡Including aircraft, body recoveries, distress signals, motor vehicles, objects in the sea, small craft, criminal activity and unknown. Total 2,989,928 14,213 86 2,597 19,979 1,339 7,377 175 1,257 765 1,750 75 343 163 198
Berrow in Somerset, Bexhill-on-Sea in East Sussex and Minster-on-Sea in Kent. §Self-harm accounted for 3% of the people we assisted. The number of these incidents was the highest since 2018.
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Although the number of RNLI beach lifeguard units in 2023 was 242, recruitment challenges meant that there was no lifeguard service at three of these units: Berrow in Somerset, Bexhill-on-Sea in East Sussex and Minster-on-Sea in Kent.

‡Including aircraft, body recoveries, distress signals, motor vehicles, objects in the sea, small craft, criminal activity and unknown. §Self-harm accounted for 3% of the people we assisted. The number of these incidents was the highest since 2018.

RNLI ANNUAL REPORT 9 AND ACCOUNTS 2023

OUR IMPACT

CASE STUDY

Lifeboats

Our volunteer crews have been saving lives for 200 years. Their work remained at the heart of the RNLI in 2023.

Together with shore crews and other station volunteers, RNLI lifeboat crews continued to provide a ring of safety around the UK and Ireland. They remained ready to launch 24/7 from 238 lifeboat stations.

In 2023, engineers at our Clayton Engineering factory built two new Shannon Launch and Recovery Systems and carried out refits on four launch tractors. Our team at the Inshore Lifeboat Centre built six Atlantic 85 and twelve D class lifeboats, and carried out refits on 52 more inshore boats. Meanwhile, staff at our All-weather Lifeboat Centre built four new Shannons (for New Quay, Whitby, Anstruther and Oban) and carried out refits on nine other all-weather craft.

Despite it being Ireland’s warmest year on record, and the second hottest for the UK, 2023 brought more than its fair share of heavy rain and storms. Consequently, there was a drop in the number of people visiting our coasts in July and August and, in turn, a lower number of lifeboat rescues than normal for the period.

a lower number of lifeboat rescues than In-house experts also worked with crews normal for the period. to develop, test and deploy new rescue It was a busy year overall though, with equipment for dealing with multiple people our lifeboat crews launching 9,192 times in in the water, including an inflatable staircase 2023 (9,321 in 2022). They aided 10,734 that can recover 20 people from the sea people and saved 269 lives. More than a third within 90 seconds. We also worked with of launches were carried out in darkness and crews to update towing systems onboard 5% involved casualty care. Tower and Poole Severn and Tamar class lifeboats. A new, were our busiest overall and coastal stations lightweight line means that tows can be respectively, with inshore lifeboat crews established with less physical effort, and it carrying out the majority of total launches also reduces risk to volunteers when they (see page 13 for more on the D class). We saw are towing small craft. a further rise in the number of people using We continued to deliver a comprehensive paddleboards and large inflatables but the programme of competence-based crew most cited reason for lifeboat rescues training around the coast, and provided continued to be people getting into difficulty more than 40 specialist courses at the RNLI in and around the water (cut off by the tide, College. In 2023, we increased our range of slips, trips and falls). See the 2023 lifesaving training videos and digital learning courses statistics on page 8 to delve deeper into to help volunteers learn new skills remotely. the numbers. Our training specialists created new videos As ever, our crews relied on first-class kit for helicopter operations and inshore lifeboat and training to save lives and get home safely. mechanics, and an eLearning course in search

RNLI LIFEBOAT ACTIVITY MAP 2023

Lifeboat launches High to Low

and rescue communications to help new crew become proficient in using VHF radios at sea. We also introduced an new online course that gives volunteers basic first aid skills as soon as they sign up as crew. With an eye always on the future sustainability of our service, in 2023 we also began work to recruit and train all-weather lifeboat coxswains of the future. We were only able to provide our volunteers with this vital support thanks to ongoing public donations.

5 557 ,

CREW ATTENDED TRAINING SESSIONS (including online courses and webinars) (5,846 in 2022) 9192 , LIFEBOAT LAUNCHES (9,321 in 2022) NEW LIFEBOATS CONSTRUCTED[22] (22 in 2022) 280+ 57846 , LIFEBOATS REFITTED, CREW HOURS AT SEA MODIFIED OR REPAIRED (57,858 in 2022) (220+ in 2022)

Seconds from disaster

With a fishing crew dangerously close to rocks in a powerful gale, Pat Davidson knew his first shout as Peterhead’s volunteer coxswain would be one he’d never forget.

A large fishing vessel had lost power and was being tossed around in violent seas outside Peterhead’s breakwater. Her five crew were in imminent danger. The RNLI crew launched their Tamar class lifeboat into the fray. ‘It was tough getting out of the harbour against the wind,’ says Pat. ‘I didn’t think we’d reach them in time. It was a balancing act between throttles down and keeping her steady enough for the volunteers on deck.’ In large swells, the lifeboat was struck by a freak wave which threw Pat around the upper steering position. Immediately looking behind, he was relieved to see his crew mates secure and on their feet.

At the scene, Pat knew he only had one attempt to place his craft in a good position. Timing between swells, he got them in close enough for his deck crew to safely set up a tow. With an expert throw, the heaving line hit its mark first time but, with ferocious waves sweeping it down the side of their boat, the fishing crew struggled to haul the rope onboard. With excellent seamanship, Pat allowed the lifeboat to be washed alongside the casualty vessel, keeping her head to sea, and the fishing crew were able to get the rope onboard and make it fast.

Peterhead volunteers onboard The Misses Robertson of Kintail: in 2023 Coxswain Pat Davidson and his crew mates received RNLI Letters of Commendation for saving the lives of five fishing crew

Pat used the Tamar’s powerful engines ' My heart was in my mouth to pull the 160-tonne fishing vessel clear of a few times. If their vessel the rocks. ‘Once we had momentum I just

feathered the throttles, praying the tow had hit the rocks, they would wouldn’t part,’ he says. When they reached have had no chance' the relative safety of the harbour, local tugs took over and got the vessel to PAT DAVIDSON a safe mooring. COXSWAIN | PETERHEAD RNLI At the mercy of the sea: the fishing boat, The lifeboat arrives: Pat gets as close as minutes from disaster possible to set up the tow

Visit RNLI.org/magazine to read about more 2023 lifeboat rescues

RNLI ANNUAL REPORT 11 AND ACCOUNTS 2023

OUR IMPACT

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CASE STUDY CASE STUDY
On a starless night: our crew launch into the void ...
Swallowed by the dark Small but mighty
With two people missing on Lough Derg in the early hours, The RNLI’s beloved D class lifeboat has been
the lifeboat crew needed all their local knowledge, sharp saving lives for an incredible 60 years.
eyes and kit to find them. The number of lifeboat shouts increased
When a yacht was reported overdue in Mountshannon, dramatically in the 1960s, as people discovered
friends said they had not heard from the pair onboard new and affordable ways to enjoy the seaside.
for 7 hours. RNLI pagers went off at 1.30am and, within But the lifeboats of the time were not designed
and eventually spot a ghostly outline
10 minutes, Helm Eleanor Hooker and her crew mates Doireann From the 1960s to the 21st century: D class for quick rescues in shallow, rocky waters.
Kennedy, Ciara Lynch and Chris Parker launched Lough Derg lifeboats have saved more than 18,700 lives A simple, high-speed rescue craft was needed.
RNLI’s Atlantic 85 lifeboat Jean Spier . Following much research and hard work, the
The cold, starless night presented a challenge. Eleanor says: RNLI trialled a new inshore rescue boat at eight
‘It felt like we were being absorbed by a huge cave. We had busy lifeboat stations in 1963. These D class
to dim our navigation gear to adjust our eyes.’ The volunteers lifeboats were such a success that just 3 years
quickly oriented themselves, confirming their position with Saving lives in the heart of London: RNLI later, more than 70 stations were operating
crews at Tower have launched more than
local knowledge and emerging light patterns back on land. 10,000 times since the station opened in 2002 them during the summer. Today you can find
They searched in the pitch dark until Ciara spotted this craft at nearly half of all RNLI stations and,
a ghostly outline. It was an eerie scene: there were no lights, with its top speed of 25 knots, the D class is
sounds or signals but they had found the missing vessel dead Chris boards the yacht to set up a tow ... widely regarded as the workhorse of the fleet.
in the water at a notoriously dangerous spot. ‘Anyone onboard Our designers, engineers, boat builders
was at risk of hypothermia from just being out on the lough all ' Nobody calls us that and crew have worked together to continually
night,’ says Chris. ‘If they had gone overboard, their chances of time of the morning improve its design over the years. RNLI
survival were low.’ ' volunteers now operate the D class day and
unless it's serious
As the lifesavers got closer, they were relieved to see the night, summer and winter. With night vision
two men onboard who were cold and anxious, but otherwise ELEANOR HOOKER New hand at the helm: in 2023, Ruth equipment, searchlights and parachute
Oliver qualified as Whitstable RNLI’s
OK. ‘We were close enough to Garrykennedy to tow them HELM | LOUGH DERG RNLI illuminating flares to light up the area, they
first female helm
alongside,’ says Eleanor. ‘We needed them where we could see can locate casualties in the dark.
they were safe.’ Chris boarded their yacht and set up a tow and, In its 60 years, this versatile vessel has
' The training was very
as both vessels approached Garrykennedy 20 minutes later, saved thousands of lives: families cut off by
the crew drew on all their experience and skill to get everyone comprehensive. I look the tide, fishing crews adrift with engine failure,
safely through the tricky breakwater and safely into harbour. forward to serving the ' Being a helm of a D class lifeboat is a privilege. and children dragged out to sea while paddling.
By 2.30am the RNLI crew had secured the yacht alongside and station and town for Its agility and speed enables RNLI crews to
' I love its power and capability. It makes such
arranged for a friend to collect the casualties. many years to come New Brighton volunteers recognised (l–r): Michael Stannard, Emily Craven and Thomas McGinn Nelson Ramsey, a difference in saving lives at sea' quickly reach people in desperate need. Of course, the development and outstanding
RUTH OLIVER received Medal Service Certificates and a Framed Letter of Appreciation in 2023 for the rescue of a man and his dog. ALAN FLOOD service of this small but mighty craft has only
Visit RNLI.org/magazine to read HELM | WHITSTABLE RNLI Helm Michael received the RNLI’s Bronze Medal in 2022 for HELM | CONWY RNLI been made possible by generous donations.
and they take the casualties safely into harbour his skill and courage during the incident
about more 2023 lifeboat rescues
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RNLI ANNUAL REPORT 13 AND ACCOUNTS 2023

OUR IMPACT

CASE STUDIES

Lifeguards

RNLI lifeguards continued to deliver vital lifesaving services to local communities and tourists across the UK and Channel Islands.

Our lifeguards kept watch over millions of RNLI lifeguards, staff and volunteers beachgoers, delivering more than 204,056 observed our coasts and beaches before the hours of patrols across 239 of our busiest start of the season. They fed back data on beaches. Their priority is the prevention of visitor numbers and water use, which helped incidents and, in 2023, they instigated more us set the right level of preparations and than 2.9M preventative actions. But they respond to changes in the way people access also responded to 14,213 incidents, helping the water. We saw an increase in the number around 20,000 people with everything from of beach visitors during heat spikes and a rescue to casualty care, and saving a total growth in the use of different recreational of 86 lives. 75% of all lifeguard incidents equipment, such as stand-up paddleboards occurred during June, July and August. and large inflatables. In 2023, we had the lowest number of The RNLI continued to explore the use lifeguard incidents in a season since 2009 of beach cameras and image recognition to (except for 2020 which was affected by increase the quality of its data, rolling out the the pandemic). This was likely due to poor system to a further 10 beaches in Northern weather, with it being Ireland’s wettest Ireland. The technology allows us to count July on record and the UK seeing a 39% beach visitors and capture the number and increase in average rainfall. August was also timing of incidents attended by lifeguards. significantly wetter than the previous year, Knowing that the number of incidents is with rain further increasing above average higher at a certain time of year and day right through to December. means that our lifesavers are forewarned of

Fast and manoeuvrable: in the hands of a skilled lifeguard, our rescue watercraft can handle big surf and cover large stretches of water quickly

and large inflatables. emergency response drone on Crantock children with key water safety advice, The RNLI continued to explore the use Beach in Newquay. The waterproof craft and also led the delivery of our of beach cameras and image recognition to allows lifeguards to quickly observe a wide Meet the Lifeguards sessions and other increase the quality of its data, rolling out the area, then broadcast appropriate safety water safety schemes. system to a further 10 beaches in Northern advice to the public through the drone’s These vital services would not be possible Ireland. The technology allows us to count speaker system. The craft also has the without trained and competent lifeguards. beach visitors and capture the number and potential to deploy lifesaving equipment. RNLI coastal teams continued to provide timing of incidents attended by lifeguards. Meanwhile, we fully assessed another training, assessments and verifications in Knowing that the number of incidents is three non-RNLI beaches, highlighting hazards a range of disciplines, across many locations. higher at a certain time of year and day and suggesting control measures to help local In 2023, this included the development of means that our lifesavers are forewarned of authorities and private beach owners plan a new lifeguard competency framework and trends and can hone their patrol strategy for comprehensive beach safety management. the delivery of new training resources. maximum efficiency. Our lifeguards also visited primary and Head to RNLI.org/LifeguardsReport2023 In partnership with the Royal Life secondary schools, providing 118,485 for more.

Despite the decline in emergencies, it remained an active season for our lifeguards, and not without its challenges. Sadly, we saw an increase in anti-social and criminal behaviour that was sometimes targeted at our lifeguards, or our equipment and property. We continued our efforts to discourage this by using public beach signage to reinforce the RNLI’s zero-tolerance stance and continued to provide welfare support for anyone affected.

Saving Society UK, we began trialling a new

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2.9M+
204,056 19979 239
PREVENTATIVE ,
SUPERVISED BEACH ACTIONS BY OUR PEOPLE AIDED LIFEGUARDED
PATROL HOURS LIFEGUARDS BY RNLI LIFEGUARDS BEACHES
(206,304 IN 2022) (4M+ IN 2022) (23,204 IN 2022) (242 in 2022)
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All overboard

Four people suddenly found themselves in danger when their pleasurecraft capsized off The Wirral and threw them into the sea.

Two casualties decided to stay with the craft while the other two tried to swim the 300m to shore for help. Spotting the four people struggling in the water, Lifeguards Hayley Webb and Holly Barden from Harrison Drive Beach immediately alerted the Coastguard. Holly, who was on her first-ever RNLI shift, then quickly paddled to the scene on her rescue board. Meanwhile, Lifeguard Cameron Jacobie from New Brighton Beach, heard the alert over his radio and headed out to help on Lifeguarding 101: the RNLI’s trusty rescue a rescue watercraft. board is a crucial piece of lifesaving kit

Caught in a flash rip

When a family of three were caught out by a sudden rip current, quick-thinking lifeguards powered to the rescue. It was sunny and warm at Whiterocks Beach, Portrush; the perfect weather for Andrew Todd, his children Issy (18) and Zack (13), and friends, to enjoy a day on the beach. The group made their way into the sea. It was rough, but they made a point of staying between the red and yellow lifeguard flags. As they played in the water they began to stray beyond the flags, outside the safe swim zone. It was only when they started to swim back to

On patrol: Lifeguard Ellen keeps watch on beachgoers at Portrush

Holly soon reached the pair who were Pete Rooney said the award recognised swimming away from the vessel and helped the ‘exemplary decision-making, timely them to a place where she knew they could communications and excellent teamwork get to shore more easily. After ensuring both between the two lifeguard units.' were safe, Holly then headed back out to the upturned vessel.

When Holly and Cameron reached the boat, they saw that the two remaining casualties were in distress and shouting for help. The lifeguards swiftly helped the pair onto the watercraft and got them safely back to shore. Inshore lifeboat volunteers from New Brighton were also alerted and arrived shortly after to recover the upturned boat. All three lifeguards were presented with the RNLI’s Alison Saunders Award in 2023 for their skill and bravery. Lifeguard Lead

Lifesaving trio (l – r): Cameron, Hayley and Holly received the RNLI’s Alison Saunders Award for rescuing four people from a capsized boat

shore that Zack, Issy and Andrew realised the Skilfully, she made her way through the trouble they were in: a flash rip current was choppy surf to reach Andrew and his dragging them out to sea. children, while her lifeguard colleagues Ellen Knox was one of three lifeguards Adam and Luke launched their rescue on duty that day. ‘Flash rips can be watercraft (RWC).

Ellen Knox was one of three lifeguards Adam and Luke launched their rescue on duty that day. ‘Flash rips can be watercraft (RWC). unpredictable, appearing quickly and without Ellen reached Issy first, reassuring her warning,’ she explains. After radioing base, and getting her to hold onto the rescue Ellen grabbed her rescue board and ran into board to help her stay afloat. Before she the water. She needed to reach the swimmers could get to Andrew and Zack, the other as quickly, and safely, as possible. lifeguards arrived. Adam and Luke took them safely ashore with the RWC and ‘ I felt nervous. The waves and returned for Issy, who was still grabbing onto Ellen’s board. Once the family had rip currents were the biggest been reunited, the lifeguards checked that and strongest I had seen everyone was OK before letting them go on their way.

‘ I felt nervous. The waves and rip currents were the biggest and strongest I had seen all season’ ELLEN KNOX LIFEGUARD | PORTRUSH

Visit RNLI.org/magazine for more 2023 lifeguard rescue accounts

RNLI ANNUAL REPORT 15 AND ACCOUNTS 2023

OUR IMPACT

CASE STUDY

Water safety

‘ Thank you for helping Harvey save my daughter’s life’

volunteer local ambassadors, bringing the total to 1,000 business people.

Behind all RNLI water safety advice and

Our charity continued its initiatives is a team of in-house water safety critical role in preventing experts and data analysts who use evidence, insight and behaviour change theory to A youngster received a special award for to talk to the children about water safety. people from getting into inform what we say and do. In 2023, they remembering RNLI water safety advice. They had taught him not to panic, and to put trouble in the first place. worked closely with experts at other Harvey (5) and his sister Elliemay (8) his hands up and call for help if he ever got organisations including Water Safety Ireland, were on holiday in Majorca when Elliemay into trouble in the water. Zoe believes that In 2023, our water safety experts continued British Canoeing, Seafish and the Black got into trouble in a swimming pool. Mum advice helped to save her daughter’s life. to make an impact by engaging with the Swimming Association (BSA), to gain further Zoe Wheelan says: ‘Elliemay got out of Water Safety Volunteer Myfanwy Jones general public and our partners, face to face insight and help keep more people safe. her depth and started to panic. She was in returned to the school and presented Harvey and through a range of media. In 2023, we teamed up with Bangor serious danger of drowning.’ with a special certificate to congratulate him The RNLI’s summer safety campaign built University to better understand people’s Harvey knew exactly what to do: on listening so attentively. on our latest research with the University of knowledge of tides and explore why some get he kept calm and clearly raised the alarm. Portsmouth, which revealed that we all float caught out by them. Findings included that This attracted the attention of others who ‘ The first thing I did when I got best in different positions but that tilting your around 40% of the UK public were unaware then rushed to help his sister. home was to thank the RNLI’ head back and submerging your ears is key. that the tide typically comes in twice a day RNLI volunteers from Llandudno had A new film, produced in-house, put a refined or that the rises and falls change every day. visited Harvey’s school just days earlier ZOE WHEELAN | HARVEY's MUM Float to Live message front and centre, The results will help us hone our safety and formed part of the campaign, which messaging to ensure maximum effect. we delivered with minimal budget. Results Swim Safe, with Swim England, enjoyed showed that we maintained awareness across another busy summer with around 14,000 the UK and Ireland. young people completing the programme. This highlights the essential part our Meanwhile, we joined forces with triathlete partners and local ambassadors played and former BBC Breakfast presenter Louise in amplifying our messages. In 2023, we Minchin to help educate open water continued to grow our lifesaving partnership swimmers on cold water shock. with the Gaelic Athletic Association (GAA), We also collaborated with Girlguiding with more clubs and communities joining the South West England and Scouting Cymru to fold, and we recruited more than 250 new create new badges and teach children how to stay safe in, on and around the water. 118 485 , 14 000 , SCHOOLCHILDREN YOUNG PEOPLE GIVEN WATER SAFETY ADVICE BY RNLI TOOK PART ‘He did exactly the right thing’: LIFEGUARDS IN SWIM SAFE Llandudno RNLI’s Myfanwy Jones presents Harvey with a special award

CASE STUDY

International

explored how weather reporting could be improved. Sound guidance In May, the World Health Assembly Over the past decade, the RNLI’s adopted its first-ever resolution on global International Team has developed drowning prevention. It was officially technical resources to provide guidance to proposed by the governments of Ireland and other lifesaving organisations, particularly Bangladesh and co-sponsored by more than those in low-resource settings. These 70 other countries. The RNLI was closely guides are freely available and focus on involved in the process, providing technical areas such as water safety education, expertise and support.

Over the past decade, the RNLI’s Meanwhile, the Royal Life Saving International Team has developed Society Commonwealth said that technical resources to provide guidance to our Aquatic Survival Programme other lifesaving organisations, particularly Implementation Guide resources are: those in low-resource settings. These 'very well regarded and give good guides are freely available and focus on attention to culture and religion.' areas such as water safety education, survival swimming, and maritime search ‘ With the aid of RNLI and rescue. resources, we have trained We carried out a review of these resources in 2023 to better understand more than 3.5M people in how they are being used and identify ways water safety’ to improve future content and distribution. Findings included: NATIONAL SEA RESCUE INSTITUTE SOUTH AFRICA

Lifesaving without borders.

Every other minute, someone drowns around the world. The RNLI works with international partners and in-country experts to help stop these needless deaths.

In 2023, we provided technical assistance, capacity building and training to lifesaving organisations around the world, including a number of British Overseas Territories. In September, 15 candidates from eight countries attended our Leaders in Lifesaving course at the RNLI College in Poole to increase their knowledge and share drowning prevention experience.

In 2023, our international work received funding from the overseas aid budgets of the Irish and Isle of Man governments. The Lifeboat Fund, Beacon Owl Trust, the Princess Charlene of Monaco Foundation and Lloyd’s Register Foundation also provided generous support.

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• The RNLI’s Maritime Search and
Rescue Service Implementation
Guide was used to support the
establishment of a new
coastguard service in Kenya.
• International humanitarian
organisation MOAS is using
our manuals to support its
training with Rohingya refugees
in Bangladesh.
• Our aquatic survival resources
were used to develop a series of
Our technical resources:
webinars for teachers in Malaysia used here to deliver water safety
during the Covid pandemic. education to children in Ghana
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In Bangladesh, the RNLI helped more than 9,000 children graduate from a series of survival swimming lessons. We also helped keep over 11,000 youngsters safe from drowning, through community creches operating at peak drowning times. Activities to mark World Drowning Prevention Day in July included an art competition in which youngsters drew pictures about drowning prevention.

In Tanzania, we continued to work with Our technical resources: local partner Environmental Management webinars for teachers in Malaysia used here to deliver water safety during the Covid pandemic. education to children in Ghana and Economic Development Organization (EMEDO) to address the high number of drowning deaths in fishing communities COUNTRIES around Lake Victoria. Identified risks include poor water safety awareness, inadequate 194 ADOPTED access to personal flotation devices, unseaworthiness of fishing vessels, inability 9,000 WHA RESOLUTION to swim, and lack of access to weather Skills for life: we continued to support SwimSafe ON GLOBAL DROWNING in Bangladesh during 2023. These swim survival CHILDREN LEARNED SWIM information. In 2023, local workshops tested lessons give powerful protection to children SURVIVAL SKILLS IN BANGLADESH PREVENTION prototypes of different buoyancy aids and who complete the course

RNLI ANNUAL REPORT 17 AND ACCOUNTS 2023

OUR IMPACT

CASE STUDY

Survivor story: the joint gift Bernie and Rene left to the RNLI helps ensure the safe and swift launch of Selsey lifeboat today

Fundraising

People from across the UK and Ireland came together as One Crew, in a huge effort to raise money for our charity in 2023.

Our fundraisers had a strong year and, with ingenuity, kindness and sheer hard work, exceeded RNLI income targets. Community fundraising teams in branches, guilds, shops, museums and visitor centres drove engagement and donations back to prepandemic levels, with branch income and supporter group income reaching £14.1M. Our integrated appeals continued to generate vital income too, with the Christmas Appeal raising more than £1.9M in donations. Launch a Memory went from strength to strength, with around 6,800 people securing the name of a loved one on the side of another Shannon class lifeboat and helping to bring in around £500,000 in donations. In 2023, we launched a new-look RNLI membership for adults, following research with members and future supporters. The new offering, which replaces Shoreline, encourages people to join a force for good and aims to bring members closer to their crew. Exclusive benefits include a new welcome pack and member handbook, quarterly Lifeboat magazine and an email newsletter. In the 3 months following launch, the value of the average gift almost doubled. The total number of sign-ups in 2023 was nearly double that of the previous year and we saw a significant drop in cancellations.

We also announced a new partnership with Scotmid who are aiming to fund a new Atlantic 85 lifeboat. The company has around 300 retail outlets across Scotland, Northern Ireland and England, and employees have been championing our water safety messages as well as fundraising, holding in-store events and selling RNLI merchandise. Meanwhile, RNLI mascot Stormy Stan celebrated his 30-year stint at the helm of Storm Force and helping the children’s club raise more than £2.4M since its launch. We also created our very first video game Storm Force Rescue and tested it with members, using their feedback to refine play and safety messaging in time for its launch in 2024. Awareness remains a key component of fundraising and, in 2023, we launched our anniversary podcast series 200 Voices . Its stories of kindness, courage and pride have been heard more than 153,000 times. BBC’s Saving Lives at Sea returned for another season, with each episode typically drawing more than 1M viewers. RNLI social media channels also saw remarkable levels of engagement, with people interacting with our posts more than 8M times. Read more about our finances on page 26.

WHERE YOUR MONEY GOES

19p/19c in every £1/€1 donated is used to generate more funds

81p/81c funds our lifesaving activities

CASE STUDY

A partnership to bring them home safe

The RNLI joined forces with Omaze in summer 2023 for a Million Pound House Draw that raised an incredible £1.4M for our charity.

The draw’s Grand Prize was a dreamy five-bedroom house on the Norfolk coast, with a separate four-bedroom guest annexe, home gym, steam room, cinema and heated swimming pool. Lucky winner Daren Bell also received £100,000 in cash. Jason from Orpington scooped the Early Bird Prize, receiving £250,000 in cash. The RNLI received 80% of the net proceeds, totalling £1.4M. This extraordinary sum was raised over just 6 weeks, with the help of a small in-house

Dream house in Blakeney, Norfolk: everyone who bought a draw ticket is a lifesaver

RNLI team. Our campaign emails and social channels generated more than £93,000 in ticket sales and triggered hundreds of subscriptions to the RNLI newsletter, new memberships and one-off donations. The wider publicity created around 58M opportunities for people to learn more about the RNLI and our lifesaving work. RNLI Head of Region Ross Barraclough says: ‘We are incredibly grateful to the Omaze community for supporting the campaign. £1.4M is a fantastic amount of money, which will support our volunteer lifeboat crews and lifeguards with the training, kit and equipment they need to rescue those in danger. The campaign also helped us spread vital water safety messages to new audiences.’

‘ I’m so chuffed that the money raised is going to the RNLI'

DAREN BELL | OMAZE WINNER

The extra mile: from future crew Henry putting in the legwork, to Lily leading the way on her mobility scooter, supporters really pushed the boat out for Mayday Mile in 2023, raising more than £187,000

Grateful fan: Chart-topping musician Ren Gill raised £21,000 for our crews on Anglesey, who searched tirelessly for his lost friend RAISED BY RNLI BRANCHES AND £14M+ SUPPORTER GROUPS

An extraordinary legacy

RNLI supporter Bernie Jordan survived not only he and wife Rene left a joint gift to the RNLI in Dunkirk, but D-Day too. So when, aged 89 and their Wills. living in a care home in Hove, he was told that he 'As survivors, they felt they had a duty to give couldn’t attend the D-Day anniversary in France, back as much as they could,' Billy explains. 'Both Bernie had other ideas. survived the war and what they bequeathed to the The Great Escaper , the 2023 film starring Michael RNLI makes complete sense because Bernie was Caine and the late Glenda Jackson, is the moving a leading seaman in the Royal Navy, and very true tale of the war veteran’s last hurrah. For the proud of that. The couple recognised the value and 50th episode of the RNLI’s 200 Voices podcast, Billy service given by the institution and they wanted to Ivory (BAFTA-nominee and script writer for the film) support that.’

The Great Escaper , the 2023 film starring Michael Caine and the late Glenda Jackson, is the moving true tale of the war veteran’s last hurrah. For the 50th episode of the RNLI’s 200 Voices podcast, Billy Ivory (BAFTA-nominee and script writer for the film) describes Bernie’s extraordinary adventure and why

Bernie and Rene had mirror Wills in which they left everything to each other but, in the event the other died, the entire estate was to be left to the RNLI, following a small gift to someone else. They left our charity more than £600,000, which helped to fund vital shoreworks at Selsey lifeboat station, where the couple’s names appear on a plaque.

6in10 LAUNCHES ARE ONLY POSSIBLE THANKS TO GIFTS IN WILLS

Hear the podcast at RNLI.org/200voices

RNLI ANNUAL REPORT 19 AND ACCOUNTS 2023

OUR PLANS

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OUR PLANS
We look at the RNLI's performance in 2023 and lay out the key areas
of focus for 2024 to help us achieve our strategic outcomes.
REFLECTING ON WHAT WE WE DELIVER OUR LIFESAVING SERVICE WE INVEST IN OUR FUTURE
ACHIEVED IN 2023 • We celebrated our volunteers and • We created and piloted the RNLI’s new
thanked them for their continued Operational Competency Framework,
We set out plans for 2023 with a focus service and commitment. Almost 300 which will help us to ensure our lifesavers
on protecting our lifesaving service, while meritorious awards were given, including have the right training, at the right time,
navigating a volatile economic environment. gallantry awards and commendations. in a way that is easy to access.
The rising cost of living put extreme pressure • We developed and delivered new policy, • We made significant progress on
on our expenditure, and our supporters and procedure, training and equipment to modernising our network connectivity
volunteers, who we rely on to run the service. support mass rescue operations. around the coast. Lifesaving legend: Samshun Nahar has trained more than Samshun Nahar has trained more than
During the year, we focused on • We launched new Float to Live resources • We developed new volunteer welcome 19,000 people in lifesaving techniques. Our partnership World Health Organization, Geneva: our International Team joins our International Team joins
maintaining lifesaving delivery while looking online and made them available to sessions and improved our induction with the Centre for Injury Prevention and Research, Ireland's Ambassador to the UN and Chief Medical Officer to mark the Royal interest: HRH The Duke of Kent, RNLI President, chats with members of Tower lifeboat HRH The Duke of Kent, RNLI President, chats with members of Tower lifeboat
Bangladesh continued to support her work in 2023 World Health Assembly resolution on global drowning prevention crew during the opening ceremony of their new floating boathouse on the River Thames
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ACHIEVED IN 2023 • We celebrated our volunteers and thanked them for their continued We set out plans for 2023 with a focus service and commitment. Almost 300 on protecting our lifesaving service, while meritorious awards were given, including navigating a volatile economic environment. gallantry awards and commendations. The rising cost of living put extreme pressure • We developed and delivered new policy, on our expenditure, and our supporters and procedure, training and equipment to volunteers, who we rely on to run the service. support mass rescue operations. During the year, we focused on • We launched new Float to Live resources maintaining lifesaving delivery while looking online and made them available to at more ways to make every penny and cent all volunteers. go as far as possible. We continued to invest • We led numerous successful multiin our fundraising efforts, as we know that country projects, including a workshop this is critical to keep the service running on safe rescue and resuscitation in both now and in the future, particularly as low-resource settings. we mark 200 years of lifesaving.

We developed new volunteer welcome sessions and improved our induction approach and processes.

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Support at the deep end: VIPs from corporate partners Helly Hansen and
Ineos get a taste of sea survival training during a visit to the RNLI College
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WE IMPROVE OUR SUSTAINABILITY

We switched to a 100% renewable electricity supply.
We collectively reviewed how we work and redoubled our focus on becoming more financially sustainable.

We set out four key priorities to guide us through this challenging year, and can celebrate what we have achieved. Here follows just a handful of 2023 achievements that have contributed to delivering our organisational priorities.

WE PROTECT OUR INCOME

We prepared for the RNLI’s anniversary by creating over 70 programmes and activities that are ready to launch in 2024.
We hosted the first ever RNLI International Women’s Day Panel.
We implemented hybrid contracts and reviewed our resourcing models to ensure that we are set up in a way that is more sustainable for the future.
We grew our income through our engagement teams, as communities returned to pre-pandemic levels of activity.
We exceeded our income targets, using data and insights to help us maximise opportunities.

Investing in people: Apprentice Technician Jack Domoney from the RNLI's All-weather Lifeboat Ahead of the trend: Troon RNLI joins forces with the Outdoor Partnership to help Centre helps to keep lifeboats running smoothly a growing number of paddleboarders keep safe while having fun on the water

RNLI ANNUAL REPORT 21 AND ACCOUNTS 2023

OUR PLANS

HOW WELL DID WE PERFORM IN 2023?

In Our Watch , the organisation set out a clear vision, supported by six Strategic Outcomes that help to inform our plans. We monitor whether we are on track to achieve these outcomes through a framework of strategic key performance indicators (KPIs) that provide a focus for how all teams across the RNLI measure the success of the activities they deliver.

Performance against our strategic KPIs is reviewed quarterly by our Executive Team and Trustees to ensure we remain on track, or to prompt corrective action where it may be required for us to get back on track.

10 734 , PEOPLE RESCUED OR AIDED BY LIFEBOAT CREWS IN 2023

WE KEEP OUR PEOPLE SAFE

AFLOAT INJURIES PER 1,000 LAUNCHES IN 2022 IN 2023 5.9 4.5 injuries injuries per 1,000 per 1,000 launches launches Despite a small increase during the summer period, we have seen a consistent reduction in the number of injuries occurring while afloat, compared to last year. Introduction of an equivalent metric for lifeguarding is in progress.

WE FOCUS ON WHAT WILL SAVE THE MOST LIVES IN OR NEAR THE WATER

NUMBER OF PEOPLE RESCUED OR AIDED BY LIFEBOATS IN 2022 IN 2023 16,535 people 10,734 people NUMBER OF PEOPLE RESCUED OR AIDED BY LIFEGUARDS IN 2022 IN 2023 24,451 people 22,576 people

The total number of people aided by our lifeboat crews and people aided by our lifeguards fell to its lowest levels since 2020. However, 2023 remains above the long-term average for number of people aided in a calendar year for both metrics, and the current trend shows a continued increase in demand for our lifesaving services.

WE RAISE THE FUNDS WE NEED AND SPEND DONORS’ MONEY WISELY FREE RESERVES COVER END OF 2022 END OF 2023 9.3 months 8.9 months At 8.9 months of charitable expenditure, free reserves OUR PEOPLE LOVE BEING are within the range approved by Trustees. There is an PART OF THE RNLI expectation that free reserves will reduce in the coming years as we continue to invest in our services and infrastructure, and inflationary pressures persist.

WORKING WITH PARTNERS, WE INFLUENCE IMPROVED SAFETY ON AND BESIDE THE WATER

SERIOUS WATER INCIDENTS

VOLUNTEER ENGAGEMENT SCORE IN 2021 IN 2022 NOT 91% MEASURED (8% response rate) This indicator is now being collected every 2 years and is next due for update in 2024.

IN 2022 IN 2023 859 836

In 2023, more than 40% of serious incidents involved suspected (8% response self-harm and mass rescue. However we saw a significant decrease rate) in serious incidents involving the top eight high-risk activities identified in our Water Safety Strategy. Attributing this decline to This indicator is now being collected the success of the strategy is difficult, as we know that the weather every 2 years and is next due for has a significant influence on the likelihood of people needing update in 2024. rescue. Nonetheless, the scale of the reduction is significant and we celebrate that our continuing sharp focus is having an impact. OUR FUTURE IS SUSTAINABLE AND SECURE BETTER DROWNING PREVENTION STAFF ENGAGEMENT SCORE STRATEGY DEVELOPMENT STATUS IN 2022 IN 2023 IN 2021 IN 2022 ALL INTERNATIONAL ALL INTERNATIONAL 83% 85% IN 2022 IN 2023 PROGRAMMES PROGRAMMES ON TRACK COMPLETE (58% response (71% response ON TRACK ON TRACK VS PLAN rate) rate) Despite the need to reschedule a small number of project activities, This indicator is now being collected Long-term ambitions to 2030 and beyond were agreed our efforts to drive better drowning prevention globally met or every 2 years and is next due for in 2023 and will inform the next update to Our Watch exceeded targets through 2023. update in 2024. in 2024.

RNLI ANNUAL REPORT 23 AND ACCOUNTS 2023

OUR PLANS

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200th
LOOKING AHEAD
2024 is a once-in-a-lifetime milestone for our Maintaining Protecting Reducing our Supporting anniversary 200 years … and counting
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Maintaining Protecting Reducing our Supporting our ability to the RNLI by costs while our staff and save lives addressing maximising volunteers critical risks income Two hundred years To protect our people All of our teams have We recognise that ago, the RNLI was and service in response worked hard to make we are operating in a founded to save lives to a constantly significant savings in volatile and uncertain at sea. People continue changing external 2023, and we must environment. As an to rely on our service environment, we will continue with this organisation, we need today and, despite prioritise activity to momentum. To keep to adapt and evolve. the challenges the mitigate critical risk financially sustainable, People are at the heart organisation faces, relating to service we will continue to of the organisation and we remain focused on availability, safety, reduce our costs while power our lifesaving maintaining our ability compliance and maximising our income work. In order to save to save lives. technology capability. and leveraging the every one we can, once-in-a-lifetime we will need to work opportunity our 200th together and support anniversary presents. each other.

2024 is a once-in-a-lifetime milestone for our charity. We will be marking an incredible 200 years of lifesaving, paying tribute to the RNLI’s remarkable history and paving the way for our future. Our plan for 2024 recognises this momentous occasion, while we continue to do what we do best: saving lives at sea. While this is a significant achievement for the RNLI, we also recognise that the economic environment is not getting any easier and the political landscape is constantly changing around us. Therefore, we need to remain focused on what matters most: maintaining our ability to save lives, mitigating critical risks, reducing costs while maximising our income, and supporting our people, who are at the heart of our organisation. In 2024, we will not only celebrate 200 years of lifesaving, but make courageous decisions to secure our future for the next 200 years.

With you by our side we are commemorating our past, celebrating today’s lifesavers and inspiring a new generation The RNLI celebrated many important milestones in 2023, including 60 years of the D class lifeboat, the 50th anniversary of Clayton Engineering (our factory that builds and maintains lifeboat launch and recovery vehicles) and 30 years of our kid’s club favourite, Stormy Stan. 2024 marks something even grander: the RNLI’s 200th birthday. Since the RNLI was formed on 4 March 1824, a year hasn’t passed without extraordinary rescues and bravery in the face of horrendous storms, and we've seen leaps in lifesaving technology. Courage, selflessness and innovation have propelled our lifesavers through busy summers, wild winters, wars and pandemics. There are so many ways to reflect on our remarkable heritage. Show your love for the charity today and help ensure we're ready to save lives for another 200 years.

A passion for saving lives: Hartlepool RNLI join other emergency services and medical experts for a highly successful water safety event at Seaton Carew

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Race to rescue: Plymouth RNLI featured in series 8 of
Saving Lives at Sea , when a fisherman fell overboard
and was adrift in chilly seas
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You’re invited to be part of our history. Get the latest on events near you at RNLI.org/2024programmes

‘ Our collective focus will be on delivering the lifesaving service, mitigating critical safety, compliance and technology risks, supporting our volunteer communities (who face their own challenges), reducing our cost base while maximising our income, and commemorating our 200-year anniversary.

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Focused on what matters most:
becoming a leaner organisation
with a sharp focus on what will
save the most lives
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' We will prioritise activity to make sustainable cost reductions and continue to look for ways to spend RNLI donations as efficiently as possible. We will work towards becoming a smaller, leaner organisation with a sharp focus on what will save the most lives.'

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Connecting our communities: our anniversary van will be visiting
a place near you, as part of a special 2024 relay-style event
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MARK DOWIE | RNLI CHIEF EXECUTIVE

RNLI ANNUAL REPORT 25 AND ACCOUNTS 2023

FINANCIAL REVIEW

FOR THE YEAR ENDED 31 DECEMBER 2023

Total net income increased in 2023, thanks to the continued generosity of our supporters, despite many facing their own cost challenges. The RNLI continued to face significant cost pressures against the backdrop of a tough global economic landscape. Through careful budgetary control we were able to mitigate some of the effects of high inflation and disrupted supply chains. The net effect of these drivers was a decrease in cash and investments for the second year running of £15.4M (2022: £37.3M). This deficit has been reduced by a significant investment gain of £12.2M (2022: loss £26.3M). We remain in a stable financial position and that provides the resilience to navigate an uncertain economic climate faced by the RNLI and its supporters.

Total net income available for charitable spend increased by 8.3% in 2023. Legacy income held up well with an increase of 11.4%, however much of this can be attributed to an increase in the legacies recognised in 2023 that had not yet been received.

infrastructure, and inflationary pressures persist. However, through robust financial planning and control and thanks to our generous supporters, we are confident this will remain within the prescribed range.

FINANCIAL ANALYSIS

Charitable spend increased by 1.7% in 2023. The majority of this can be attributed to our lifeboat and lifeguard rescue service, with growth of 2.4% and 3.7% respectively. Rigorous cost control across the organisation has limited the impact of inflationary pressures.

The analysis in this review has been produced to simplify the financial statements and show how much the RNLI spends on its operations each year, how it is funded, and

It is based on the financial statements on pages 48–52, adjusted to show the net income that is available for charitable expenditure. It also includes the actual capital costs, rather than depreciation, in the charitable spend. Further analysis on how this reconciles to the financial statements can be found in Note 17 on page 79.

Free reserves increased by £1.0M in 2023 and, at 8.9 months, remains at the upper end of the range prescribed by the Trustees of 4–10 months. There is an expectation that free reserves will reduce in the coming years as investment continues in our services and

CHARITABLE SPEND

• International (+£0.2M: 6.9%) – costs in this area increased in line with a planned expansion into an additional priority country in 2023. These costs are partially offset by income generated specifically for the RNLI's international work.

Charitable spend increased to £191.2M, an increase of £3.2M compared with 2022. Overall movements were as follows:

• Lifeboat service (+£2.6M: 5.4%) – costs increased as we spent more on our crews through activities such as operational training and kit.

Water safety, education and awareness

(-£1.5M: -19.0%) – in 2023 costs were lower due to a change in our relationships with partners such as BSA and Swim Safe.

Lifeboats, property and equipment
(+£1.1M: 1.0%) – costs in this area

increased as we continued to invest in our lifeboats and stations. 2023 saw increases

INCOME AVAILABLE FOR CHARITABLE SPEND

coupled with additional investment in lifeboat stations.

Total income available for charitable spend amounted to £236.1M, which was £14.5M above 2022. The main reasons for the income movements were:

• Lifeguard rescue (+£0.8M: 3.7%)

2023 saw the full year impact of mid-season pay increases and regional

• Legacies (+£16.1M: 11.4%) – legacy income was significantly ahead of 2022 and held up well, considering the economic environment. £11.2M of this related to an increase in the legacies recognised at year-end but not yet

lifeguard management structure, both implemented in 2022. In addition, there

was an alignment of the 2023 pay award for seasonal lifeguards with the permanent employee pay award.

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CHARITABLE SPEND 2023 2022
Total Total
£M £M
Lifeboat service 51.0 48.4
Lifeboats, property and equipment 108.2 107.1
Lifeboat rescue 159.2 155.5
Lifeguard rescue 22.5 21.7
International 3.1 2.9
Water safety, education and awareness 6.4 7.9
Total charitable spend 191.2 188.0
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received. The estimated value of future legacies notified, but neither received nor included in 2023 income, remains healthy (see Note 9 on page 64).

• Donations (-£0.8M: -1.2%) – a small decrease on 2022, but the prior year was boosted by a £3.5M donation from The Royal Naval Volunteer Reserve Officers’ Association towards Tower Lifeboat Station.

Trading (net) (-£2.9M: -53.7%)

– £2M of work was undertaken in 2023 to improve the RNLI College facilities, updating the air conditioning in the bedrooms, pipework throughout the College and refurbishing the catering facilities. While gross trading income remained consistent with 2022, the increase in trading costs of £1M (9.2%) has driven a reduction in the net

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CHARITABLE
SPEND
£191.2M
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Lifeboats, property and equipment 56% Lifeboat service 27% Lifeguard rescue 12% Water safety, education and awareness 3% International 2%

trading surplus. Retail margins were impacted by inflationary cost price £14.5M increases and trading conditions INCREASE IN TOTAL affected by the cost-of-living crisis. INCOME FOR There were significant increases in cost CHARITABLE SPEND of goods sold, postage and surcharge costs. We also incurred transition costs moving to a new fulfilment centre. For 2024, we have started a full review of retail profitability and performance FINANCIAL RESOURCES and expect to see improvements in 2024. Investments and bank holdings decreased by

TOTAL INCOME AVAILABLE FOR CHARITABLE SPEND £236.1M

Investments and bank holdings decreased by £15.4M in 2023. Although asset prices recovered in 2023 with an investment gain of £12.2M, this was more than offset by a significant increase in working capital. Stocks increased by £5.4M, to meet supply chain disruption; Legacies 66% debtors increased by £11.3M, reflecting an Donation 28% increase in the legacies recognised at yearTrading (net) 1% Charitable trading 2% end but not yet received and £9.1M of deficit Investments (net) 2% reduction payments in respect of the defined Other 1% benefit pension scheme.

Charitable trading (+£0.5M: 11.4%) – this represents lifeguard income which has increased in 2023 as a result of inflation driven increases charged to local authorities.

• Investments (net) (+£1.4M: 46.7%) – investment income has increased as multi-asset-credit holdings yielded higher returns than expected. Overall investment returns are noted in the Investments section on page 62.

Other income (+£0.2M: 13.3%)

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INCOME 2023 2022
Total Total
£M £M
Legacies 156.9 140.8
Donation 65.7 66.5
Trading (net) 2.5 5.4
Charitable trading 4.9 4.4
Investments (net) 4.4 3.0
Other 1.7 1.5
Total income available for charitable spend 236.1 221.6
Cost of generating income (43.9) (44.2)
Net income available for charitable spend 192.2 177.4
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The cost of generating income decreased slightly by £0.3M (-1%) as inflationary pressures were offset by efficiency savings. This was delivered as a result of multi-year contracts with key suppliers and reduced spend on external creative development and professional support.

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£3.2M
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INCREASE IN CHARITABLE SPEND IN 2023

RNLI ANNUAL REPORT 27 AND ACCOUNTS 2023

FINANCIAL REVIEW

INVESTMENTS SUBSIDIARIES has been created to establish, build and invest level of free reserves in the current uncertain Investments performed well in 2023, as the The RNLI has three subsidiary companies in an endowment fund (from which income is economic environment and have approved economy stabilised from the inflationary that were actively trading in 2023. RNLI donated to the RNLI for lifesaving purposes) 2024 plans in recognition of this fact. There shock of 2022. The RNLI’s investments (Sales) Limited is used for non-charitable with a donation of £0.5M in 2023 (2022: is a planned deficit in 2024 but it is expected returned £16.6M in total, with £4.4M of fundraising activities, with net assets of £0.5M). At 31 December 2023, the LEF held that free reserves will continue to cover income (net) and gains of £12.2M. The overall £1.5M, and generated a donation to the investments to the value of £50.2M (2022: short-term financial risks. return on the investment portfolio was 6.9% RNLI of £4.1M for 2023. The activities of £45.9M), the increase driven by investment Free reserves cover is calculated in for the year (2022: loss 7.5%). The charity has RNLI College Limited relate directly to the gains of £4.3M in 2023. months, by dividing the total free reserves underperformed on its benchmarks, being charitable activities of the RNLI and comprise by the charitable expenditure (from the 1.4% below the overall benchmark in 2023 the training of lifeboat crew and lifeguards, FINANCIAL HEALTH Statement of Financial Activities) and then and 0.2% below the 3-year benchmark. although there are external sales of excess As of 31 December 2023, the RNLI had multiplying by 12 to represent the number The benchmark represents the target capacity which offset some of the costs of consolidated net assets of £796.3M (2022: of months. agreed with investment managers to this training. This company has net assets of £775.3M), primarily representing fixed assets assess their performance. £1.0M and generated a donation of £0.3M. of £481.4M and investments of £256.3M. FINANCIAL PLANS Most asset classes were in positive Clayton Engineering Limited is a specialist There was an increase in fixed assets of While we continue to operate in an uncertain territory, with exceptional returns of 11.5% engineering company that designs and £6.0M in 2023. However, despite an increase economic environment, the RNLI still needs on multi-asset credit and 12.1% on global manufactures lifeboat launch and recovery in investment values, investments decreased significant investment for its lifesaving corporate bonds (both classed as fixed equipment for the RNLI. It has net assets of by £14.5M as funds were required to finance services and infrastructure. This has been interest investments in Note 7 on page £3.8M and made a profit of £0.8M, which the increase in working capital. This is reflected in the plans for 2024, which 62). Negative returns were experienced in it is retaining to invest in the business and explained in more detail under Financial show that there is likely to be a significant property and absolute return funds. Despite improve efficiency. Resources (above). drawdown on investments and free reserves. the negative return in 2022, the RNLI has The RNLI also has a charitable The RNLI’s Trustees ensure the overall It is anticipated that we will need to reduce returned an overall 3-year annual average incorporated organisation (CIO), the RNLI health of the organisation by overseeing our expenditure over the coming years to counter of 2.4% on its investments. Lifesaving Endowment Fund (LEF). This CIO free reserves levels (the sums retained to the impacts of a challenging economic withstand any short-term financial risks). environment and as we continue to evolve At the end of 2023, these free reserves the 5-year plan with the focus on long-term FINANCIAL RESOURCES 2023 2022 stood at £138.0M. This represents 8.9 affordability. Total £M Total £M months’ worth of charitable expenditure, We depend more than ever on the Net income less charitable spend 1.0 (10.6) which is at the upper end of the Trustees’ public’s generosity to support our work requirement of 4–10 months (as described in saving lives at sea and our fundraisers Investment gain / (loss) 12.2 (26.3) in the Fund Accounting Policy on page 56). are working harder than ever to increase Stock (increase) (5.4) (1.9) The Trustees recognise the need for a higher supporter numbers and income. Debtors (increase)/decrease (11.3) 6.2 Creditors (decrease)/increase (2.7) 4.6 Adjusting for impact of defined £15.4M (8.1) (8.2) benefit scheme accounting DECREASE IN FINANCIAL Lease liability decrease (1.1) (1.1) RESOURCES IN 2023 Investment/bank deficit (15.4) (37.3)

GOING CONCERN with the key financial risk being managing 12 months from the date of signing these on deposit and other financial instruments The Trustees reviewed the RNLI’s financial costs in a high-inflation environment. accounts, and that the accounts have been and investments. plans for 2024 in November 2023 as part The Trustees continue to review plans prepared in the knowledge that the RNLI In formulating and reviewing the of their normal annual review. At that time, with the Executive Team and will make any is a financially viable organisation, with RNLI’s investment policies, the Investment they felt that the RNLI had sufficient necessary changes to remain within the no material uncertainties to its going Committee has considered a range of resources to continue operating to the end of free reserves level over the life of our plans, concern position. investment options and the need for 2024. Our plans continue to evolve through in line with the free reserves policy. These diversification, and has regard to the 2024, as we seek to address our principal plans continue to evolve to support our FINANCIAL POLICIES investment policy being pursued by the financial risks, and there are ongoing reviews requirements for financial balance in the Trustees of the RNLI 1983 Contributory of forecasts throughout the year. medium term. INVESTMENT POLICY Pension Scheme (the Scheme) and the LEF; The review of the RNLI’s annual plan has The charity has a strong balance sheet, The RNLI’s funds (excluding fixed assets) are recognising that the RNLI’s overall market continued in the light of the current cost-ofwith unrestricted liquid investments of substantially held in investments. exposure is to the aggregate of its own living crisis and legacy of the recent increase around £82.3M and cash of £1.4M, in The RNLI’s Statement of Investment assets and those of the Scheme and the LEF. in inflation. Through rigorous planning, we addition to the LEF that is available as a Principles and its Investment Policy were The assets of the Scheme are under Fiduciary anticipate the RNLI will be able to develop last resort. The RNLI also has a revolving reviewed in detail in 2022, and approved by Management and this has been taken into plans to bring the finances into balance. credit facility of £15M in place to cover any the Investment Committee and the Trustees. account in the way the RNLI’s Investment The Trustees are exploring all options to downside risks. Taking this into account, the The RNLI's investments are held in line Committee operates. There is no oversight reprioritise activity and respond to the Trustees are of the opinion that the charity with the nature of its reserves, as detailed of the Scheme by the RNLI’s Investment changing financial picture, prioritising our will have sufficient resources to meet its in the investment strategy. This is either to Committee, although there is still liaison frontline lifesaving services. They are satisfied liabilities as required. ensure that donors’ directions are met, in the between the two Investment Committees that the RNLI's future viability has not been As such, they remain satisfied that the case of the permanent endowment and the and an annual overview of both portfolios critically affected by the current situation, RNLI can continue operating for at least restricted reserves, or to withstand any shortby representatives of these Committees. term financial risks and requirements, in the case of the free reserves and designated funds. The RNLI’s objective (at an aggregate level) is to maintain and, if possible, enhance FUNDS ANALYSIS 2023 2022 Change Ratio the real value of the reserves represented £M £M % % by its investments, in line with its plans. The Investment Committee seeks to meet Permanent endowed funds 19.8 19.2 3.1% 2% this overarching objective by maintaining an Expendable endowed funds 50.2 45.9 9.4% 6% appropriate balance between maximising Restricted funds 115.5 115.6 (0.1%) 15% long-term returns and avoiding undue risk and volatility in capital values. Fixed asset funds 481.4 475.4 1.3% 61% These objectives are pursued through a Designated funds 5.2 5.5 (5.5%) 1% range of strategic investment policies which involve investing in a broadly diversified Free reserves 138.0 137.0 0.7% 17% £115.5M spread of assets, covering global equities, Pension reserve (13.8) (23.3) (40.8%) (2%) UK and overseas government and nonRESTRICTED FUNDS Total funds 796.3 775.3 2.7% – government bonds, pooled property funds, (can only be spent as donor directs) infrastructure funds, multi-asset funds, cash

RNLI ANNUAL REPORT 29 AND ACCOUNTS 2023

FINANCIAL REVIEW

FUNDS POLICY • Expendable endowed funds (£50.2M) • Free reserves (£138.0M) – these INVESTMENT CRITERIA The RNLI’s funds policy is reviewed on an – these are funds where the capital sums are sums that are freely available for annual basis and is detailed in Note 1h on donated are invested and the income general use. They are held at a level The Trustees have carefully considered page 56 and summarised below. arising may be used for a particular to withstand any short-term financial the requirements of the Statement of purpose, as agreed with the donor. These risks, the main ones being in investment Recommended Practice (SORP) and the FUND ACCOUNTING funds represent the LEF, a charity that markets, pension scheme funding, key Charity Commission’s revised guidance At the end of the year, the RNLI held total was established in 2019 to help preserve sources of income (such as legacies) and note CC14 (issued in October 2011) and funds of £796.3M. The RNLI’s funds are held the RNLI’s lifesaving services for the inflation. Most of these funds are held continue to conclude that they do not for a variety of purposes, to ensure that the future, providing a steady income stream in investments, but they also include believe there is any listed investment organisation can operate as a going concern and a capital sum that can be used if the any unrestricted legacy values accrued adverse to the purpose of the charity in the future and fulfil its legal obligations. RNLI is ever 'in extremis'. The capital (£42.6M), which will take time to be (saving lives at sea). This are summarised as follows: sum may be spent at the discretion received. The Trustees have a policy of • Fixed asset funds (£481.4M) – these of the Trustees of the LEF, and in line maintaining a range of 4–10 months In relation to funds where the make up the bulk of funds held, with the terms of the donation, of charitable expenditure. This range investment managers are permitted representing the operational assets of where necessary. was determined using risk modelling to make active decisions about the the RNLI, without which it could not • Permanent endowed funds (£19.8M) techniques to determine the value of selection, retention and realisation of operate. The vast majority of these are – these are funds where the capital sums our financial risks, in conjunction with investments, the Investment Committee the lifeboats, launching equipment and donated are invested and the income our investment advisers. At 8.9 months expects the investment managers to operational properties, such as lifeboat arising may be used for a particular of charitable expenditure, free reserves take account of all financially material stations and lifeguard units. purpose, as agreed with the donor. are currently at the upper end of the considerations (including climate change • Restricted funds (£115.5M) – these As opposed to the expendable Trustees’ range. The RNLI is planning to and other environmental, social and are held under trust law and can only endowed funds, the capital sum reduce this in the coming years because governance considerations), where be used for specific purposes, as agreed can only be spent in exceptional of essential investment in our lifesaving permissible within applicable guidelines with the donor. For example, we could circumstances with the agreement services and infrastructure, while also and restrictions. The committee seeks to have a legacy for the cost of a lifeboat of the Charity Commission. managing inflationary pressures through appoint managers who have appropriate and these funds would be held until rigorous financial planning. skills and processes to do this and, from we construct that lifeboat. There are The remainder of the RNLI’s funds are its • Pension reserve (deficit £13.8M) – this time-to-time, reviews how the managers hundreds of these funds that the RNLI general funds: represents the defined benefit pension are taking account of these issues in is managing at any one time. Most of • Designated funds (£5.2M) – this liability that is managed separately to practice. All our investment managers these funds are held in investments but represents the special projects fund, our free reserves. The value of this longare signatories to the UN Principles for there is also an element that relates to where significant financial assurances term liability is calculated annually in Responsible Investment. the legacy accrual (£11.5M) where funds have been made to third parties to accordance with FRS102 by a qualified have not yet been received. Restricted ensure monies are available. This is independent actuary. funds remained consistent with the prior entirely for the project at Weston-superyear, despite investment gains in 2023 of Mare, where the local council are seeking £11.6M. This was offset by the transfer significant funds to repair the pier that of £14.1M of certain restricted funds into will give access to the lifeboat station FIXED ASSET FUNDS unrestricted, with the consent of the and the RNLI has given assurances that £481.4M [[(including lifeboats and stations)]] donor or executor. funds will be available for this work.

FIXED ASSET FUNDS £481.4M [[(including lifeboats and stations)]]

INVESTMENT STRATEGY

PERMANENT ENDOWMENT – long-term income generation for a specific purpose:

Generates income over the longterm with a focus on real capital preservation.
Some liquidity required for income and gains above capital value.
Some mark-to-market volatility is acceptable.

EXPENDABLE ENDOWMENT (LEF) – long-term growth portfolio with modest income requirement:

Generates a real return over the long term, through both capital growth and income.
Some illiquidity is acceptable.
Some mark-to-market volatility is acceptable.

OPERATIONAL FUNDS –

short- to medium-term reserves held for the RNLI’s lifesaving operations. They comprise restricted, designated and free reserves:

No income requirement, but cognisant of income across all portfolios.
Some liquidity needed.
Generates a real return (ie inflation plus returns) over the medium-term while controlling volatility.

In the race to save lives: supporter Emma Baker raises funds with the RNLI Running Crew at the 2023 TCS London Marathon

RNLI ANNUAL REPORT 31 AND ACCOUNTS 2023

GOVERNANCE

Organisational purpose

Leadership

THE TRUSTEE BOARD

The Royal National Lifeboat Institution (RNLI) is a registered charity. It is headed by an independent Trustee Board and relies on its dedicated volunteers and staff. The RNLI is a company incorporated by Royal Charter. This section provides information on how the charity is run, how we engage with our stakeholders, manage our risks and ensure that we are building a sustainable organisation that’s fit for the future.

We are the charity that saves lives at The RNLI is led and governed by our sea. That’s our organisational purpose, Trustee Board. The role of the Board is set the same as our public benefit. We have out in our Royal Charter, Bye-Laws and specific goals for domestic accidental Regulations. It has collective responsibility coastal fatalities and the impact that we for setting and agreeing the overall have globally. direction, strategy and culture of the As an organisation, both domestically RNLI. It leads by example and supports and internationally, we track the number the chief executive in the daily delivery

As an organisation, both domestically RNLI. It leads by example and supports and internationally, we track the number the chief executive in the daily delivery of individuals assisted, rescued and the of our lifesaving plans and activities, number of lives that the RNLI saves, and regularly monitors our performance often in collaboration with others. As against agreed measures. The Board an organisation, we also have a set of delegates responsibility for the execution metrics, the Quarterly Performance of the strategy to the chief executive, who Report, that covers the RNLI's broader leads the ET. operations and capabilities. These metrics The Board has responsibility for are used by the Executive Team (ET) and the identification and evaluation of the senior management to track progress strategic risks to the organisation and the against our organisational priorities policies we have in place to mitigate their and provide an appropriate mechanism impact. The Board also has responsibility by which progress in key areas can be to provide appropriate assurance to reported to the Trustee Board. regulators and donors that we are meeting our legal and compliance requirements, and that the charity is properly controlled and managed.

Good governance is fundamental to As part of our annual governance our sustained success as a charity. processes, we review our application With it, we are best placed to deliver on of the principles and recommended our organisational purpose and vision to practice of the relevant charity save lives at sea and to save every one. governance codes in all of the It enables all our people to use their skills, jurisdictions in which we are registered along with our resources, to best effect. as a charity. We also ensure that we are It helps us to ensure that we are compliant adhering to the UK Code of Fundraising with relevant legislation and to continually Practice, and The Charities Regulatory review the risks we are facing. It also helps Authority Guidelines for Charitable us to oversee our standard of operations Organisations for Fundraising from the and supports a positive culture. Public in Ireland.

CHARITY STATUS

The names of those individuals who

served as Trustees of the RNLI during the year and/or were Trustees of the charity as at the date of this report, can be found on pages 80–81. Many have a lifelong interest in the sea and a passion for saving lives at sea. All are volunteers. For more details on the skills, experience and diversity of our Board, see page 82.

The RNLI was founded in 1824. It was granted a Royal Charter of Incorporation in 1860, with Supplemental Charters granted in 1932, 1986 and further amendments in 1998, 2002 and 2011. It is a charity registered in England and Wales (209603), Scotland (SC037736), the Republic of Ireland (CHY 2678 and 20003326), the Bailiwick of Jersey (14), the Isle of Man (1308 and 006329F), the Bailiwick of

Guernsey and Alderney with its address at The RNLI also has a number of linked West Quay Road, Poole, Dorset, BH15 1HZ. charities, one of which is a charitable The RNLI has four wholly owned incorporated organisation (CIO), the subsidiaries registered in England and RNLI Lifesaving Endowment (1184013). Wales, one of which is currently dormant. This CIO holds and invests funds on Each is managed by a board of directors endowment for the long-term operations (executive and non-executive) to ensure of the RNLI. There are 19 other linked that company and charity law requirements charities that are listed in Note 13 to the are met and business activities are accounts on page 70. properly managed.

TRUSTEE BOARD EFFECTIVENESS In 2023, Janet Legrand was elected as a TRUSTEE BOARD RESPONSIBILITIES Trustee and Chair of the RNLI. Andy Jordan As part of the standing items of business and Roger Fairhead were appointed Trustees. considered at each meeting, the Board reviews the strategic risks that the charity MAINTAINING INDEPENDENCE faces and the mitigation controls that are The Trustees of the RNLI were all considered in place. independent on appointment. This ensures The Board has an agreed set of Matters independence of thought as well as action Reserved for its approval, which defines the to ensure that we are able to demonstrate Board’s responsibilities and what can be that any decision or action is aligned with delegated to standing committees or the the delivery of our charitable aims and chief executive and the ET. For the full list of there is no personal or individual bias. the key standing and advisory committees, Any communications we make internally turn to page 85. or externally aim to demonstrate our

Policy and Register makes sure that any bring a broad range of backgrounds, skills gifts offered are clearly recorded and any and experience. We continue to promote potential conflicts are recognised. and encourage diversity across all the governing groups of the charity. The LENGTH OF SERVICE improvement of gender balance is just one Trustees and Council members currently part of our overall aim to improve inclusion serve an initial 3-year term with an option and diversity across these groups. to be reappointed for a further two terms. We aim to match the skills in the Council TRUSTEE BOARD MEETINGS to our strategic goals as well as our The Trustee Board meets formally at business plan. least four times a year. There is a list of The MNC reviews the composition of standing agenda items covering strategy,

Any communications we make internally the Board and the Council at each meeting. or externally aim to demonstrate our This enables the MNC to evaluate the independence of thought and action. skills and experience required to ensure All members of the Board complete sustainable governance in the future. an annual declaration with respect to conflicts of interest and are obliged to GENDER BALANCE declare any new conflicts at each meeting. At the end of 2023, the Board comprised The organisation's Gifts and Hospitality 14 Trustees: 3 women and 11 men who

performance, risk and compliance matters. This list is supplemented with other items that are relevant to the Trustees’ broader responsibilities. There are twice-yearly Board and ET workshops that focus on the key strategic opportunities and risks that the RNLI may face in the future. In 2023, these workshop discussions included how the charity would save lives in the future, the Board's risk appetite and safeguarding.

Each committee of the Board has defined terms of reference. Our advisory committees enable experienced volunteer specialists to contribute to key aspects of the RNLI’s affairs.

APPOINTMENTS TO THE TRUSTEE BOARD

The Membership Nomination Committee (MNC) is responsible for considering the appropriateness of those individuals proposed for appointment to the Board, Council and other committees of the RNLI. The MNC currently comprises the Chair, the Deputy Chair, the chief executive, one additional Trustee, a Council member and a vice president.

REFRESHING SKILLS AND KNOWLEDGE

On appointment, new Trustees, Council and committee members have an induction programme to familiarise themselves with the work of the RNLI and their role requirements. Inductions cover their core responsibilities plus a tailored section, personalised for their individual needs. From time to time, Trustees and Council members may undertake training specifically designed to support their role. An externally facilitated effectiveness review of the Trustee Board is planned for 2024. See the Board skills and experience infographic on page 82.

Trustees are appointed by our Council. Ordinarily, when looking to appoint Trustees, the MNC recommends only those individuals who currently stand as Governors and whom are also Council members, while ensuring the appropriate balance of skills, diversity of background and experience. Recommendations to appoint individuals to the Council are considered by Governors at the Annual General Meeting.

Rough seas and a rugged coastline: Macduff crew in action onboard their new Atlantic 85 lifeboat Skipasund , which entered service in 2023. RNLI volunteers have been saving lives here for more than 160 years

RNLI ANNUAL REPORT 33 AND ACCOUNTS 2023

GOVERNANCE

SUCCESSION PLANNING

FINANCIAL OVERSIGHT

As a team, they are committed not In preparing these financial statements, the FINANCIAL OVERSIGHT for all employees, honorary officials and The RNLI’s free reserves are set at a level, then further mitigation of the risk is • provide the Board with an independent The MNC maintains a record of the terms only to the delivery of our core lifesaving Trustees are required to: volunteers of the RNLI and its subsidiary level to withstand any short-term financial planned and prioritised along with other and unbiased view of the effectiveness of office of all our governing volunteers. activities, but also to looking towards the • select suitable accounting policies and As part of its financial responsibilities, the companies. Non-compliance may lead to risks, helping to mitigate these risks and organisational activities and projects. and appropriateness of the financial This is reviewed as part of succession future to ensure that the RNLI remains then apply them consistently Board approves a high-level business plan; disciplinary proceedings. give the RNLI time to change its financial The relationship between risk and reporting, internal controls, risk planning discussions and ensures that we sustainable as an organisation and is able • make judgements and estimates that are a detailed annual budget, which defines plans accordingly. decision-making is key for our organisation. management and regulatory have the right diversity of people, thought to respond to changing trends and external reasonable and prudent specific projects and detailed departmental FINANCIAL RISK In 2023, we continued to strengthen the compliance procedures of the RNLI. and skills available. This enables every factors. The ET takes engagement with our • state whether applicable accounting plans for the next financial year; and The most significant financial risks to the RISK AND COMPLIANCE alignment of our plans with the mitigation committee to deliver on its governance volunteers and staff seriously. It provides standards have been followed, subject a regular forecast process that reviews operations of the RNLI include those relating MANAGEMENT of our risks, to ensure planning decisions INTERNAL AND EXTERNAL responsibilities, to the very best effect, direction and motivation, as well as acting as to any material departures disclosed and the annual plans and makes changes, to investments, pension liabilities, inflation continue to be robust and aligned to our risk AUDIT – INDEPENDENCE AND now and in the future. a conduit to the Board. explained in the financial statements as necessary. and income uncertainty. The RNLI reviews Our approach to organisational risk management approach. Similarly, we have RESPONSIBILITIES Each member of the ET undergoes • prepare the financial statements on Financial authority is granted through its financial plans on a regular basis and management aims to mitigate the RNLI’s also worked to align our risk management The internal audit function delivers THE COUNCIL an annual performance appraisal and the going-concern basis unless it is the approval of specific budgets and by the manages these risks accordingly, through risk exposure to an acceptable level approach with our long-term strategy independent and objective assurance feedback is also sought through the inappropriate to presume that the authorisation of individual managers to income pipelines, budgetary control, across a broad spectrum of strategic development and have used this insight to advice, and provides insight on the RNLI’s The Council is a general committee of regular engagement survey, which drives charity will continue to operate. approve specified levels of expenditure. programme management and capital and operational risk. Wherever possible, help identify new longer-term risks, such as risk management, governance and internal the RNLI. The purpose of the Council is to improvement actions. The Finance Department is involved planning. In particular, the strategy for those we aim to balance the risks taken with those posed by climate change. control processes to the Board, Audit and advise and assist the Board primarily on The Trustees are responsible for keeping in any major project or programme work, investments held by both the RNLI and the the reward gained in the pursuit of our During 2023, we remained focused Risk Committee and senior management broader policy and strategic issues facing the proper accounting records. These must be providing the necessary support to ensure defined benefit pension scheme are managed organisational purpose. on monitoring and managing our risks in the discharge of their responsibilities. charity that are not specifically addressed sufficient to show and explain the charity’s the appropriate financial decisions are made. at a committee level, using professional Effective and efficient management in the context of a challenging external The function continues to be a co-sourced by other committees. The Council is made Decision making, and the group’s transactions, and disclose investment advisers to minimise risk and of the risks faced by the RNLI is an environment and economic climate. Our arrangement with external support from up of volunteers who are expected to act risk and control with reasonable accuracy at any time, the FINANCIAL REPORTING maximise return. important factor in the achievement of commitment to managing risks successfully Crowe UK LLP, who were appointed by the collectively and individually, as ambassadors financial position of the charity and the As part of its reporting obligations, the In relation to pension liabilities, the RNLI our strategic objectives and protecting the across the organisation helps to ensure Audit and Risk Committee in 2022. for the charity. Members of the Council STATEMENT OF TRUSTEES' group, and enable them to ensure that the RNLI prepares and publishes a set of employs a pensions actuary to advise on the future sustainability of the organisation. we keep our people safe, make the right To ensure its independence, the internal will also be called upon from time to time FINANCIAL RESPONSIBILITIES financial statements comply with the UK Annual Report and Accounts that are assumptions and calculations needed for Our risk management framework is decisions, successfully deliver our objectives auditor reports to both the chair of the to provide support and specialist advice to Charities Act 2011 and applicable accounting produced in line with the Trustee's financial our pension negotiations with the pension also considered a key component of our and protect the future sustainability of Audit and Risk Committee and the Director the ET. Their experience and knowledge are The RNLI Trustees are responsible for regulations. They are also responsible responsibilities set out on page 34 and scheme trustees. Risks around income governance, and our approach aligns with the RNLI. of Safety and Independent Assurance, appreciated and considered to be of great preparing the Trustees’ Report and the for safeguarding the assets of the charity existing statutory requirements. uncertainty are managed through a funding Charity Commission guidance through who appraises their performance and has benefit to the RNLI. financial statements in accordance with and the group; and, therefore, for taking The ET consider the organisation's strategy that reviews income pipelines a process that identifies our major AUDIT AND RISK COMMITTEE – oversight of all proposed activities. The applicable law and regulations. Charity reasonable steps to prevent and detect fraud management accounts and associated through the main sources of income to strategic and operational risks, assesses COMPOSITION AND RESPONSIBILITIES Audit and Risk Committee approves the THE EXECUTIVE TEAM law requires the Trustees to prepare and other irregularities. reports monthly. These contain sufficient ensure targets are met, both short and the level of risk, and evaluates their The Audit and Risk Committee is a standing appointment of the internal auditor and financial statements for each financial Financial statements are published detail to provide the ET with an appropriate long term. mitigation. For compliance risk, an committee of the Board and has delegated reviews its activities and effectiveness. The ET comprises eight members, led by year in accordance with United Kingdom on the charity’s website in accordance level of information to be in a position to In 2022, in line with other organisations, assurance framework is in place, where authority to act on behalf of the Board in It also approves the internal audit plan the chief executive. Collectively they are Generally Accepted Accounting Practice with legislation in the United Kingdom make informed financial decisions. a major risk emerged on expenditure through performance against external obligations relation to the matters set out in its terms and ensures that significant findings and responsible for the execution of the strategy (United Kingdom Accounting Standards governing the preparation and dissemination high inflation. The RNLI ensures financial and internal standards is monitored by of reference. The Audit and Risk Committee recommendations made by the internal and policies set by the Board as well as the and applicable law). Under charity law, the of financial statements. This may vary FINANCIAL POLICIES rigour through budgetary control and compliance duty holders. is chaired by a Trustee, who is a finance auditor are received, while reviewing day-to-day leadership and management of Trustees must not approve the financial from legislation in other jurisdictions. The AND PROCEDURES stringent financial planning to ensure that The management of each of the risks professional with significant senior leadership the appropriateness of the content the organisation. Details of those individuals statements unless they are satisfied that maintenance and integrity of the charity’s The Trustees are responsible for safeguarding we live within our means. There has been on our Strategic Risk Register is owned and management expertise. The committee’s and promptness of the ET responses to who constitute the ET can be found on they give a true and fair view of the state website is the responsibility of the Trustees. the assets of the charity and its subsidiaries. significant work on such planning in the last by a member of the ET and is governed main duties are to: recommended actions. page 85. The organisation’s governance and of affairs of the charity and its subsidiaries The Trustees’ responsibility also extends This is enabled through the RNLI’s financial 2 years, and this work is continuing to ensure by the broader ET, the Audit and Risk • review and challenge the work of the ET The external auditors are responsible management structure can be found (the group), and of its and the group’s, to the ongoing integrity of the financial policies and procedures. Compliance with that we manage our free reserves levels in Committee and the Board. Where risk and of the internal and external auditors; for completing a statutory audit of the on page 87. surplus or deficit for that period. statements on RNLI.org. these policies and procedures is mandatory line with Trustee requirements. is not considered to be at an acceptable and RNLI’s annual financial statements

RNLI ANNUAL REPORT 35 AND ACCOUNTS 2023

GOVERNANCE

and those of the group, and providing an So far, as each of the Trustees is aware, at the how we contact the public to ask for support. standards by applying our own additional We have reviewed and assured data was up to date and contact protect people who might be in vulnerable GRANT-MAKING POLICY independent audit opinion to the RNLI time the report is approved: This ensures that we follow regulations, meet fundraising standards to ensure that we ourselves that in 2023 we met the Charities preferences were correct. circumstances when carrying out any Trustees. The Audit and Risk Committee • there is no relevant audit information of our own high standards and exceed are open, honest and respectful. The RNLI (Protection and Social Investment) Act 2016: • We rolled out a new volunteer training fundraising activity. We also have a Our support of partners is guided by the recommends the appointment, which the charity's external auditors are the public’s expectations. adhered to the appropriate fundraising Fundraising Reporting Requirements. pack to support our volunteers, Vulnerable Circumstances Policy with requirement that any grant payment is remuneration, reappointment and removal of unaware; and The scope of fundraising activity in standards in 2023. The relevant information is reported developed by our Fundraising Team. specific guidance notes for our teams who linked to a legal Deed of Grant negotiated the external auditors in relation to statutory • the Trustees have taken all appropriate 2023 included legacy marketing and We are registered members of the throughout the Governance section of • We created an events registration provide our marketing communications. and agreed with the recipient. In addition, audit arrangements. It also reviews the scope steps to make themselves aware of administration; membership and individual Fundraising Regulator and maintained our this Annual Report. form that has been rolled out across Our Supporter Experience Team are trained we require completion of a satisfactory of the planned external work. any relevant audit information and to donations; third party partnerships and registration during 2023. We continue to The Trustees are satisfied that the RNLI all our fundraising groups. It enables on the Vulnerable Circumstances Policy, due diligence audit of the recipient’s establish that the auditors are aware of fundraising; regionally-based, volunteerundertake an organisation-wide review of our adhered to the appropriate fundraising us to review our event activity and which includes key indicators to listen senior management, governance controls, PROVISION OF INFORMATION that information. led, branch fundraising including events, compliance against the latest version of the standards in 2023. ensure risk assessments, training and out for on calls and to observe in written financial capability, safeguarding systems TO AUDITORS local appeals and collections; face-to-face Fundraising Regulator's Code of Fundraising additional support are in place correspondence in order to protect those and overall capacity to deliver desired In determining how amounts are presented FUNDRAISING STANDARDS AND fundraising; retail and other commercial Practice to ensure we are fully adhering to COMPLIANCE WITH where required. who might be in a vulnerable circumstance. results. These checks include both the within items in the statement of financial REGULATION COMPLIANCE activities; hospitality in the College; the latest guidance. During the year, we RECOGNISED STANDARDS Staff can both flag a supporter as potentially recipient and any of their associates who activities and balance sheet, the Trustees and lottery. updated our outbound calling processes and Each fundraising team is responsible for We monitor our overall fundraising being in vulnerable circumstances on our are relevant to the work being supported. have had regard to the substance of the CONTACTING OUR SUPPORTERS AND RNLI volunteers and staff carry out the procedures in line with the latest guidance. making sure that they are compliant with the compliance and the lessons learned database, as well as provide preferences This includes checking for absence from reported transaction or arrangement, SUPERVISING OUR FUNDRAISERS vast majority of the charity’s fundraising In 2023, the RNLI achieved Triple Lock standards laid out in the codes of fundraising from various regulators, to improve our around the communications they might government sanction lists of proscribed in accordance with generally accepted The RNLI prides itself on a high standard of activities. In 2023, we worked with three status from Charities Institute Ireland. Triple practice in the relevant jurisdiction. Examples fundraising practices. It is this approach receive from the RNLI. We have crafted individuals and/or organisations. accounting principles or practice. ethical fundraising and we continually review professional fundraising organisations and Lock status is awarded to charities that of how we have supported volunteer that has led us to manage and run letters to support those who might be in The payment of grants is linked to three payroll giving agencies. Each of these uphold the highest standards in transparent compliance during 2023 include: internal compliance rather than outsource a vulnerable circumstance when they have reaching agreed project milestones and undertakes professional fundraising on our reporting, ethical fundraising, and strong • Post pandemic, we continued to make this activity as some charities do. We indicated that they would like to donate to is controlled under the RNLI’s financial behalf. We have a formal agreement with governance structures. This recognition is sure the safety and welfare of our are satisfied that we meet all current the RNLI, making doing the right thing for policies. The annual grant provision is each of them, with specified standards of the gold standard for Irish charities to offer fundraising volunteers and staff remained standards. Each element of the fundraising, the supporter our priority. We specifically sanctioned by the ET under a delegated performance, for example in terms of data assurances to donors, members and the a high priority, ensuring the latest best commercial and marketing regulatory protect supporters who might play the authority from the Board as part of protection compliance, in order to protect general public. To achieve Triple Lock status practice and guidance was taken into and best practice codes has a designated lottery by offering a self-exclusion form the annual budget approval process. donors, supporters and the organisation we have ensured that: account across all our regional incomeRNLI subject matter expert for compliance and we have the ability to prevent this type Payments require senior management from poor practices. Each is also • we have adopted and maintain generating activities as appropriate. matters. Every year, these experts review of communication reaching someone who and Finance Department approval. All independently audited. compliance with the Guidelines for • We continue to review and update their areas and ensure any compliance might be in a vulnerable circumstance. payments can be audited through our Over the course of 2023, we had 31 Charitable Organisations on Fundraising our Donations Acceptance Policy and matters requiring attention are managed See page 40 for more information on the financial management system and are charity partnership and licensing agreements from the Public improve processes to support this policy. appropriately. This activity is recorded RNLI's Lifeboat Lottery. available for review by the ET. Each year, in place with companies at a national level. • we prepare our annual financial • We completed additional training on the RNLI central compliance register We monitor our performance by the Board is provided with an annual At a regional level, we had 21 regional statements in compliance with resources for our branches and and reviewed by the Fundraising Senior reviewing the Vulnerable Circumstances summary of payments made in the partnerships in place, either commercial the Charity SORP (Statement of specifically Branch Treasurers to ensure Leadership Team. Policy in line with any regulatory best previous year and those planned in the participator agreements or business Recommended Practice under FRS102) they are supported in the role. In 2023, there were no serious incidents practice and then share those updates with coming year. licensing agreements. accounting standard • We developed a new partnership reported in relation to non-compliance our Supporter Experience Team and those To maintain high standards of • we completed the full implementation framework to support our volunteers with the various fundraising standards and responsible for marketing communications. assurance, our teams continually monitor COMPLIANCE WITH FUNDRAISING of the Charities Regulator Charities when seeking to partner with businesses regulations that we operate within and We also monitor any feedback and best practice and any legislative changes LAWS AND REGULATION Governance Code nationally and regionally. abide by. complaints related to vulnerable that might impact the policy. The RNLI aims to meet and exceed the UK • we are committed to keeping our • We contacted all our supporter groups, The RNLI has a Safeguarding Policy circumstances and, should the need arise, Joining a force for good: relaunched in 2023, the new-look RNLI membership aims to bring members Fundraising Regulator’s and The Charities compliance with the above standards including retail, shops, branches and (see page 39), which also applies to our we would offer retraining to staff and closer to the crew with exclusive benefits Regulatory Authority Ireland guidelines and under ongoing review. visitor experience sites, to ensure their fundraising teams, and we specifically a review of the policy.

RNLI ANNUAL REPORT AND ACCOUNTS 2023

GOVERNANCE

us with a brilliant insight to understand the concerns while being confident that they Our legal and moral duty towards the health, Openness and key drivers of engagement for people and will be listened to. This includes a safety and wellbeing of our people and the accountability develop action plans from their feedback. confidential independent reporting line. culture we wish to encapsulate is set out in In a year where, externally, there was a Our Whistleblowing Policy and process sets the Chief Executive’s Safety Statement. ONE AMAZING CREW significantly buoyant recruitment market out our commitment and approach. We recognise the challenges of delivering leading to labour shortages, the organisation a world-leading maritime search and rescue We regularly connect with our supporters, maintained low levels of staff turnover at HEALTH AND SAFETY capability, including manufacturing the donors and the wider public in all aspects of 15.3%, of which, 11.1% were voluntary. Our lifeboats used to enable this, along with our lifesaving work. We strive to inspire and exit surveys for leavers enable us to track The safety of our people, irrespective of lifeguarding, fundraising and water safety inform people and build mutually beneficial trends at point of resignation and our new environment, location or activity remains activities. So the organisation has continued relationships with partners, groups, starter survey, introduced in 2022, helps us our priority. Our ability to save every one we to invest in developing safety leadership, organisations and individuals who use to track the employee experience of our new can is dependent on the safety of our people. training and assurance activities to make this the water and have an interest in our joiners by asking for feedback at key stages of It’s our number one strategic outcome: all happen. Despite resource pressures, the charitable work. their initial 3 months with us. We keep our people safe. This approach is organisation has continued to invest in safety We all come together as One Crew, the Recognising the importance of wellbeing, being further embedded as the organisation’s improvement. This has included recruitment beating heart of the RNLI. We value our we have continued to invest and profile the safety management system evolves and into specialist roles within the Safety engaged employees and volunteers greatly, breadth of wellbeing support accessible to adapts to the changing demographics Learning function and the Regional Health, and know how much they positively impact our people. and needs of the operating environment. Safety and Environment Support Team. and support our lifesaving work. The last employee engagement survey

The last employee engagement survey was completed in 2022 with the full results being shared with all employees. The survey identified six key drivers of engagement for our employees. It was a positive set of results, but we have an ambition to strive for further improvements to achieve a better experience for our people. Managers continue to work with their teams and listen to feedback to understand how we can address areas for improvement.

We know that high levels of
engagement mean teams perform at their best, often going above and beyond. It reduces the likelihood of accidents and periods of absences and develops a deep connection to the organisation.

We adopt a model of engagement that can be categorised into three areas:

Say – an individual’s likelihood to be an advocate for the organisation
Stay – their commitment to the organisation and their role

SERIOUS INCIDENT REPORTING

Strive – their motivation for the purpose and ambitions of the organisation.

Seven serious incidents were reported to the Charity Commission in 2023, none of which were pursued.

PEOPLE (EMPLOYEES)

Employees’ levels of engagement are measured through the confidential biennial survey One Crew: Your View. The last survey took place in 2022 and will run again in the summer of 2024. The surveys provide

RAISING CONCERNS INTERNALLY

We work to ensure our people have a variety of ways in which they can raise organisational

Launch and recovery experts: Wells RNLI shore crew volunteers onboard their Shannon launch and recovery system

At the same time, team structures have implementation of learning from Safety to learn more, building on our existing were subsequently reported to the Charity been re-set to better support the regional Learning Reviews and other activities to knowledge to ensure that everyone knows Commission of England and Wales. and functional activity areas. prevent re-occurrence and to improve the risks and types of harm that fall under In 2023, we supported partners Maintaining the commitment resilience. safeguarding guidance and law, and how and across our international work by providing to continuously improve our safety when to report concerns. advice and mentoring to embed a robust performance, we have made some significant OUR COMMITMENT TO SAFEGUARDING To help our people understand their safeguarding culture. improvements in 2023: responsibilities, we have a dedicated Not all safeguarding matters concern • The introduction of a comprehensive The RNLI is committed to looking after Safeguarding Policy and procedure. In abuse of RNLI staff, volunteers or Human Factors course for full-time the wellbeing and dignity of everyone who 2023, a new Safeguarding Policy was beneficiaries. Some relate to a risk notified crew to support enhanced operational comes into contact with our charity, whether drafted in line with changing legislative and to us by statutory agencies about the decision making and human performance beneficiaries, supporters, volunteers or staff. regulatory arrangements and best practice. behaviour of individuals outside their considerations. The training will roll Safeguarding is part of our business; it’s The new policy will be launched across the involvement with the RNLI or reports of out more widely in 2024 to people with everyone’s business. Everybody working or organisation in 2024. safeguarding concerns raised within the safety responsibilities. volunteering at the RNLI should understand We have strengthened our Safer communities in which we operate. We work • The refinement of the Platform Safety safeguarding. Safeguarding is about Recruitment practice across the closely with partner organisations to help Review process to ascertain and affirm supporting and protecting people. It’s about organisation and support managers in seek justice for those affected. that equipment is safe to operate and can not causing harm through our interactions. ensuring safeguarding is at the heart of any be operated safely by suitably qualified It’s about being aware of people's wellbeing recruitment process across both employees OPEN AND ACCOUNTABLE and experienced personnel. and welfare. It’s about keeping each other and volunteers. FUNDRAISING STANDARDS • The provision of technical solutions and and ourselves safe, and it’s about speaking We have promoted and raised implementation of modifications to out and taking appropriate action to prevent awareness of safeguarding in 2022 and The RNLI is a member of the Fundraising reduce whole-body vibration for crew harm or abuse. 2023 and have seen an increase in people Regulator, and in 2023 paid the fundraising operating in the D class inshore lifeboat. Our commitment to safeguarding is identifying and raising concerns. We have levy in full as part of our membership. • The introduction of safety information embedded within the leadership of the delivered multiple bespoke safeguarding The RNLI works hard to ensure dashboards, giving activity owners organisation, with a dedicated Trustee workshops to managers across lifesaving that everyone supporting the charity detailed analysis of safety data. safeguarding champion, the appointment operations, volunteering, employee understands how their money will of a designated safeguarding lead, a newly relations, community managers, face-tobe used to save lives. We include this In addition, work to further improve the appointed safeguarding officer and a 5-year face fundraising managers and water safety information on our website, in many of our effectiveness of our safety management strategic plan. education managers. communications and in all of our appeals. system has been informed through a The RNLI’s safeguarding training and We encourage individuals to report This clarity that we provide is reflected comprehensive internal audit of safety guidance has traditionally been focused on concerns and we are committed to in the low level of complaints received. processes and a number of external safeguarding young people and vulnerable improving reporting mechanisms. When When we receive complaints, we respond consultations. Identification of training adults. While this remains an important part concerns are raised, we investigate them, on a one-to-one basis in line with our requirements for people holding safety of safeguarding as shown by developing and to understand the causes and how we can Supporter Charter. We annually complete leadership or management responsibilities rolling out a safeguarding eLearning package, take steps to prevent similar occurrences. a complaints return for the Fundraising has also taken place. This will enable targeted we need to develop a better understanding of Staff and volunteers can report any type Regulator and we use the insight from training for non-operational roles charged safeguarding all people across the charity and of abuse and harassment through various the Fundraising Regulator’s annual with safety management responsibilities. continue to upskill our volunteers and staff as mechanisms, including the independent complaints report to influence and Active safety risk management remains legislation and best practice develops. During whistleblowing process. In 2023, four of inform future fundraising strategies an area of focus, as does the rapid 2023, volunteers and staff had opportunities our safeguarding concerns (three in 2022) and communications.

RNLI ANNUAL REPORT 39 AND ACCOUNTS 2023

GOVERNANCE

COMPLAINTS AND FEEDBACK marketing communication which is an ACCREDITATION OF TRAINING AND The UK Delegation to UNESCO Wales and Northern Ireland, and The regularly among the top 10 charities the We are committed to keeping our ETHICS IN THE SUPPLY CHAIN increase from April 2022 of approximately ASSESSMENT STANDARDS (part of the UK Government’s Foreign, Charities Regulator, Ireland. We record UK public would speak positively about or volunteer and supporter data safe, and We received 2,531 complaints in 2023. This is 7M. The Regulator records sector Our powerboating, motorcruising, personal Commonwealth and Development Office, positive feedback and complaints, the have a positive experience of. In the UK, we treat information security and data The RNLI has a clear set of values that a significant decrease on the 4,481 received benchmarks as an average 1 complaint for watercraft, VHF and shore-based theory and the UK National Commission for latter of which are declared annually to the we ranked sixth (recommend) and fourth governance as strategic risks (see page 32). underpin the strong ethical position in 2022 and volumes remain low in relation every 18,000 addressed mail items sent courses are accredited by the Royal UNESCO) proposed the RNLI’s 200th Fundraising Regulator (see page 40). (satisfaction) respectively for these factors expected from our supporters, volunteers to our activity. We have seen the majority (0.0056%), so our complaint volumes of Yachting Association. anniversary be recognised. The proposal in 2023 (source: YouGov Charity Index ELIMINATION OF MODERN SLAVERY and staff. We apply the same values in of decreases in four areas: relating to data 1 in 30,933 (0.0032%) are well below The Association of Marine Electronic received support from the UNESCO AVOIDING CONFLICTS OF INTEREST Donor Consideration Score 1 January–31 AND HUMAN TRAFFICKING developing relations with our contractors errors, mail order/shop, fundraising and the benchmark. and Radio Colleges accredits our Long Range delegations of Ireland, Tanzania and December 2023). and suppliers to further our supply chain relating to our work in the English Channel. Certificate Satellite Endorsement courses. Bangladesh. Our policy regarding conflicts of interest In the Republic of Ireland, we ranked The RNLI is committed to ensuring that strategy and processes, and to reflect We also saw a decrease in the amount of DIGITAL CODE OF CONDUCT Our Standards of Training, Certification, The RNLI and UNESCO organisations applies to all of our Trustees, Council fourth and third out of 12 charities for the modern slavery and human trafficking our commitment to good employment positive feedback logged, receiving 214 items The RNLI follows the Charity Digital and Watchkeeping for Seafarers Personal will work closely throughout 2024 on a range members, standing committee members, same factors (source: YouGov CharityIndex are not present in its supply chains or practice. compared to 388 in 2022. Code principles. Survival Techniques, Elementary First Aid of domestic and international opportunities, and the ET, all of whom are required to 1 January–31 December 2023). partnerships. We continue to work with We have an engineering and supply In 2023, we had 206 requests via the and Approved Engine Certificate courses such as working with UNESCO designations, make an annual declaration that is collated Transparency is also key to building our suppliers and partners to ensure director, and a Procurement and Logistics Fundraising Preference Service to remove UK GAMBLING COMMISSION are accredited by the Maritime and including World Heritage Sites, Biosphere and retained on the organisation's conflict trust and demonstrating integrity, which we compliance with the UK Modern Slavery Team, including category managers, who individuals from our database. This is slightly REGULATION Coastguard Agency. Reserves, Creative Cities and Global of interest register. In addition, any new aim to do whenever practical and possible. Act 2015. All contracts include up-to-date are dedicated to developing and improving up on last year’s 198, but still very low The RNLI’s quarterly Lifeboat Lottery is Our Casualty Care course is approved by Geoparks across the UK and overseas, to help conflicts of interest are declared and There will be some occasions when there clauses on modern slavery and human our supply chain strategy and processes. in relation to our marketing activity. We licensed by the Gambling Commission under the Anaesthesia Trauma and Critical Care promote drowning prevention messages. recorded at the start of every Board meeting. are legal and ethical circumstances where trafficking to ensure that our suppliers are The RNLI has a varied supply chain continue to log all feedback and we internally the Gambling Act 2005. This is to ensure our Group and the Royal College of Surgeons. Annual conflict of interest declarations are we cannot be transparent, either because of aware of their obligations (our statement and a broad supplier base that supports deliver a weekly Supporter Sentiment report, gambling activities are safe, fair and crimeOur Lifeguard Trainer Assessor course reviewed in line with the charity regulator legislation (for example, data protection) or on Modern Slavery and Human Trafficking the construction of our lifeboats, the highlighting trends and themes. These allow free. We hold a non-remote and an ancillary is accredited by Skills for Justice. Integrity disqualification criteria guidelines by because we need to make an ethical choice can be found on our website at RNLI.org to running of the RNLI College, the range of us to learn, adapt and continuously improve remote licence and strictly adhere to the Integrity is about doing what is right, openly jurisdiction, the accounting rules for charities to protect an individual (for example, the ensure it is publicly accessible). retail goods sold in our shops and online, the supporter experience. Licence Conditions and Codes of Practice UK MUSEUM ACCREDITATION and honestly for the charity as a whole, laid down in the Statement of Recommended details we give of a distressing rescue Concurrently, we continue to use our and the marketing and advertising of our regulated by the Gambling Commission. The RNLI Henry Blogg Museum and RNLI its people (supporters, volunteers, and Practice and HM Revenue and Customs ‘fit or fatality). We consider very carefully what Supplier Code of Conduct, which sets out fundraising and prevention campaigns, as CERTIFICATIONS AND REGISTRATIONS In 2023, the RNLI received £2,889,141 Grace Darling Museum continued to meet staff), and those it helps or for the general and proper persons’ requirements. we share and when, particularly if it has the organisation's minimum expectations well as the day-to-day operation of the in Lifeboat Lottery ticket sales and 75% of the standard for UK Museum Accreditation. public. It includes the use of reliable data There were no externally reportable an impact on a local community or of suppliers regarding business ethics, RNLI. We continually ensure that we carry The RNLI had a number of certifications and money raised by the Lifeboat Lottery went to ensure that we put the right lifeboats conflicts of interests declared in 2023. an individual. working conditions and human rights. out these activities in the most ethical registrations in place during 2023: directly towards the RNLI contributing UNESCO RECOGNITION OF in the right locations, making sure that we Transparency is only one part of Through this code, we seek to ensure that way we can, by reviewing where we source towards its lifesaving mission, 2% on prizes RNLI 200TH ANNIVERSARY spend our supporters' generous donations TRANSPARENCY AND DONOR TRUST building trust. It must be followed up with all our suppliers share our values and take our goods and services, the processes and FUNDRAISING REGULATOR and 23% on expenses. This complies with the The RNLI's 200th anniversary received appropriately, and maintaining the high clear actions appropriate to each situation. a zero-tolerance approach to modern governance we follow, and the methods of We take our fundraising extremely seriously Gambling Commission’s requirements that official worldwide recognition by the United standards that are essential to any modern As a charity, holding our supporters’ and the For example, we would not publish graphic slavery. We undertake due diligence manufacture and distribution. and as such we are registered with the a society lottery must apply a minimum of Nations Educational, Scientific and Cultural emergency service. Maintaining our integrity public’s trust is incredibly important. We details of a distressing rescue without the in our supply chain tenders, corporate During the year, we continued to drive Fundraising Regulator. This demonstrates 20% of the gross proceeds of each lottery Organization (UNESCO) on 22 November is a critical part of how the RNLI operates. work hard to ensure that we manage our consent of those involved; and then only partnerships, associations with other improvement and awareness on ethics that we promote best practice, defend the directly to the purposes of the society. 2023. UNESCO confirmed it will officially We aim to uphold the organisation's money and other assets responsibly and do if it were not distressing for others, even organisations, and in our international and sustainability via our Procurement sector and demonstrate our compliance with We have procedures and protective recognise the 200th anniversary of the values, standards and policies. The Board and all we can to maintain our good reputation if that meant foregoing valuable publicity. work. This due diligence includes assurance Policy and related processes, and through the law. We follow the regulator's process measures in place to encourage responsible formation of the RNLI in 2024. This is Council have appropriate oversight of our by being transparent, trustworthy and Equally, we might choose not to give details that modern slavery is not present. the use of our Supplier Code of Conduct. for reporting our fundraising complaints to gambling and to identify and help those with because of the RNLI’s international reach decision-making processes and ensure that responsible. of a dispute between volunteers or staff We are continuing to develop our supplier We also completed the new Bribery and them annually in April. In our April 2023 gambling problems. We strictly adhere to the and recognition, and how it reflects the we meet the standards we set ourselves, as We review the UK public’s opinion of the while an investigation or appeals process processes and procedures to make it easier Corruption Policy. All of these documents submission we reported 1,038 complaints Gambling Commission’s directive on social ideals, values and cultural diversity well as those set by regulators such as the RNLI using YouGov’s CharityIndex survey, is ongoing so as not to prejudice a later to capture, analyse and manage data and processes aim to provide clear to the regulator. This is in relation to responsibility and problem gambling. of UNESCO. Charity Commission for England and Wales, which continuously tracks public brand decision, even if those details would help to from suppliers – covering their ethical, expectations on our values and sending out just over 32M items of targeted See more at RNLI.org/lottery. the Fundraising Regulator for England, perception of 76 UK charities. The RNLI is explain the RNLI’s actions to others. environmental and social practices. ethical standards.

RNLI ANNUAL REPORT 41 AND ACCOUNTS 2023

GOVERNANCE

ENERGY, FUEL AND CARBON Energy efficiency and decarbonisation Reducing our energy consumption and principles are embedded within our asset carbon emissions is key to becoming a more management, project, and decision-making sustainable organisation, and progress is being processes to ensure that opportunities to made across all areas of RNLI operations. The make immediate and long-term improvements overall energy and fuel use of the organisation are captured. was 38GWh (2022: 44.8GWh), which The RNLI is continuing to collaborate with resulted in 9,252 tonnes of CO[[2]] equivalent others and has partnerships with Innovate emissions (2022: 10,000 tonnes of CO[[2]] ); with UK funded projects in the field of alternative a renewable portfolio that provided 93MWh fuelling and maritime decarbonisation. This (2022: 617MWh) and earned an income of provides opportunities to support data gathering £36,000 (2022: £90,500) and a saving of and technology development and advocate for £14,000 during 2023 (2022: £118,000). practical solutions for decarbonisation. The renewables portfolio grew by 60kWp for solar over the course of 2023. CARBON REPORTING

INFORMATION SECURITY

INFORMATION SECURITY We aim to adopt a circular approach Energy efficiency and decarbonisation to resources where it is cost effective, and Reducing our energy consumption and principles are embedded within our asset Cyber attacks remained a constant solutions are available. Examples include carbon emissions is key to becoming a more management, project, and decision-making and prevalent threat throughout 2023. upcycling some of our decommissioned sustainable organisation, and progress is being processes to ensure that opportunities to Organisations of all sizes have fallen victim to lifejackets into a limited product range made across all areas of RNLI operations. The make immediate and long-term improvements them, due to cyber criminals keeping ahead to support our 2024 celebrations and overall energy and fuel use of the organisation are captured. of technologies and associated vulnerabilities. recycling of lifeguard wetsuits that are was 38GWh (2022: 44.8GWh), which The RNLI is continuing to collaborate with Mainstream media reporting of cyber crime no longer fit for purpose. resulted in 9,252 tonnes of CO[[2]] equivalent others and has partnerships with Innovate continues to increase the general cultural and The RNLI won the Southern emissions (2022: 10,000 tonnes of CO[[2]] ); with UK funded projects in the field of alternative public awareness of cyber threats. Sustainability Partnership 2023 Waste a renewable portfolio that provided 93MWh fuelling and maritime decarbonisation. This In response, the RNLI regularly reviews Award for our approach to tackling waste (2022: 617MWh) and earned an income of provides opportunities to support data gathering and tests the effectiveness of our cyber reduction and management. £36,000 (2022: £90,500) and a saving of and technology development and advocate for defence, response and recovery capabilities, The RNLI leadership has recognised £14,000 during 2023 (2022: £118,000). practical solutions for decarbonisation. against industry standards. We implement climate change as a strategic risk. We The renewables portfolio grew by 60kWp recognised good practices by assessing continue to share information and work for solar over the course of 2023. CARBON REPORTING emerging and persistent threats with our with external organisations. This is to help The RNLI has entered into new flexible The RNLI aspires to achieve a sustainable trusted partners and suppliers. We continue us better understand the real impacts and electricity (zero carbon) and gas contracts, decarbonisation of our operations by 2050. taking action to keep our exposure at an develop adaptation strategies and plans to which will take advantage of falling energy A roadmap for this decarbonisation is acceptable level and are constantly working become more prepared and resilient. prices and reduce risk of potential future needed, so we will develop an RNLI Carbon to keep pace with the evolving cyber risks. We continue our work to ensure shocks to the market. The RNLI intends to Reduction Plan in the first half of 2024. robust environmental management with use energy consumption data from our This will utilise the ongoing calculation of ENVIRONMENT regular reviews of both our compliance suppliers to engage with our building users, the organisation’s scope one and two emissions with relevant legislation and actions so we can reduce energy use where to identify investment opportunities which ENVIRONMENTAL MANAGEMENT taken to mitigate environmental impacts possible and increase energy efficiency give best value for money in reducing Our Environmental Sustainability Programme of our operations. We are developing across the estate. carbon emissions. sets out our strategic environmental our approach to environmental site risk priorities and activities, aligned to the assessments and assurance of pollution RNLI strategic 5-year plan Our Watch . Our prevention. 2023 RNLI ENERGY AND CARBON REPORT Environmental Policy and ambitions continue Our Sustainability Apprentice manages to underpin our approach to environmental a Sustainability Champions Group and won EMISSIONS METHODOLOGY management (see RNLI.org/sustainability for the Make UK SW Region 2023 Business (tonnes of CO[2] equivalent) Our overall approach aligns with the further information). Apprentice Rising Star Award. Greenhouse Gas Reporting protocol We continue to pursue our zero waste We continue to work with external 2023 2022 corporate standard. Electricity and gas to landfill by 2030 ambition by seeking to groups such as the Fit for the Future emissions include all sites supplied by our Fuel for fleet vehicles apply the Waste Hierarchy. Where disposal Network, Emergency Services and vessels 6,290 7,057 central energy contracts. Vehicle and vessel is required, we aim to put waste to energy Environmental Group and International emissions include all fuel used by lifeboats, Electricity 2,153 1,984 recovery contracts in place where available. Maritime Rescue Federation, sharing launch and recovery vehicles, lifeguard Work with our suppliers is ongoing to knowledge and support to deliver improved Gas 808 1,232 assets and our road vehicle fleet. eliminate or reduce single use plastics lifesaving and environmental outcomes Total 9,251 10,273 where practical. for all.

for solar over the course of 2023. CARBON REPORTING The RNLI has entered into new flexible The RNLI aspires to achieve a sustainable electricity (zero carbon) and gas contracts, decarbonisation of our operations by 2050. which will take advantage of falling energy A roadmap for this decarbonisation is prices and reduce risk of potential future needed, so we will develop an RNLI Carbon shocks to the market. The RNLI intends to Reduction Plan in the first half of 2024. use energy consumption data from our This will utilise the ongoing calculation of suppliers to engage with our building users, the organisation’s scope one and two emissions so we can reduce energy use where to identify investment opportunities which possible and increase energy efficiency give best value for money in reducing across the estate. carbon emissions.

EQUALITY AND FAIRNESS IN RNLI PAY, it may seek external legal advice as well as performance management process that or skills developed, and internal pay REWARDS AND RECOGNITION recommendations from the chief executive applies to all employees. relativities. Pay is reviewed consistently and the people director. using the same approach for all staff, VOLUNTEERS AND PAID STAFF The Remuneration Committee is a GENDER PAY GAP including the ET and the chief executive. The vast majority of RNLI people are committee of the Trustee Board. It is made As part of our commitment to demonstrate While no individual performance bonuses volunteers, including all the members of the up of three Trustees and two independent equality and fairness in recruitment, pay, are paid as typically recognised, our Board and members of the Council. committee members. promotion and development, we comply with seasonal fundraising employees are eligible While our operational volunteers give The committee has delegated authority the requirements of the UK Equality Act 2010 for a small incentive payment. Annual pay their time freely to help save lives, the RNLI to act on behalf of the Board to ensure (Gender Pay Gap Information) Regulations budgets take into account affordability, does make some payments to recognise remuneration policies meet the charity's 2017. In 2023, the gender pay gap for the economic trends and external market the cost and disruption that this can cause. aims and legal responsibilities, and to review RNLI was 1.5% based on an average hourly pay movement. To ensure they are not out of pocket, these and monitor how these are communicated rate for men and women. This means our volunteers can claim necessary expenses both internally and externally. average hourly rate was marginally higher for SENIOR EXECUTIVE PAY DISCLOSURE and, in specific cases, a contribution for lost The committee reviews the men than women. Our full gender pay gap The RNLI acknowledges the wages, such as when attending a residential remuneration levels as part of the annual report can be found on RNLI.org. recommendations made following the training course. The RNLI also, in certain pay review. As part of this process, it Insights from this report enable us to plan Report of the Inquiry into Charity Senior circumstances, may make a fixed payment considers prevailing market conditions to tackle any gender pay gaps that may have Executive Pay and Guidance for Trustees on where there is a shortage of specific skills, and relevant external benchmarks, arisen from recruitment, development, pay Setting Remuneration by the UK National such as maintaining and operating our staff retention and satisfaction, the review or other personnel practices. Gender Council for Voluntary Organisations. The increasingly technical lifeboats or driving charity budget, our future plans and past pay gap data will continue to be reviewed inquiry advocates greater transparency, heavy equipment. performance. It also undertakes an annual by the Remuneration Committee and any and the RNLI recognises and accepts those The RNLI also employs people to run and review of ET pay in line with performance, actions to address gender pay gaps forms recommendations. As a result, the RNLI and support a complex service in a hazardous and considers the RNLI gender pay gap, part of our annual pay review cycle, as well has provided greater clarity, with greater environment. plus the overall remuneration report as linking to the RNLI Inclusion and disclosure on the pay of the ET, as well as There are a number of specific skills and pay disclosure statements for the Diversity Strategy. continuing to disclose the chief executive’s needed to keep such an organisation running Annual Report. pay in full (see page 58 or visit RNLI.org for as safely as possible and at peak efficiency. PAY PRINCIPLES more information). The RNLI has to compete in the labour PAY POLICY The RNLI adheres to the UK Government’s The current chief executive started at market and have an appropriate pay policy In setting overall pay levels for our staff, we statutory national minimum and living the RNLI in May 2019 and, since he started, in place to ensure we can attract and retain consider the pay practice in other similarly wage rates. To maintain a fair, rational pay has chosen not to accept any annual pay the people with the right skills to deliver our sized charities and, where necessary, structure, the RNLI has a formal grading increase. lifesaving work. We must offer a suitably private-sector organisations for specialist structure and pay range for each grade. The RNLI is committed to openness and competitive level of reward and appropriate and technical roles (for example in IT, The grades are based on jobs of common transparency on senior executive pay and recognition for our people. finance, maritime operations, marine design size, taking into account the breadth of will continue to keep this under review. and manufacturing, and engineering). responsibility, complexity, knowledge, skills REMUNERATION COMMITTEE – We aim for a sustainable and consistent and value to the RNLI. COMPOSITION AND RESPONSIBILITIES pay strategy that meets the diverse The RNLI encourages good performance. The pay policy of the RNLI is approved by requirements of the RNLI. This includes a Individual pay is reviewed annually and the Remuneration Committee as part of its pay practice that ensures individual pay considers pay position in the range, market terms of reference. As part of this decision, decisions are supported by a rigorous conditions, any relevant new qualifications

RNLI ANNUAL REPORT AND ACCOUNTS 2023

GOVERNANCE

Equity, diversity and inclusion

have been delivered by Diverse Matters and a change of leadership as some of our staff (Race Equality Network and Harbour helps people think about how to remove seek new roles. There has been a welcome Network), bringing in speakers to share their and inclusion barriers to inclusion for people of colour, initiative to establish a Women's Community career stories with protected characteristics. including volunteers, employees, supporters that draws together a number of existing 2023 saw the YPN launch debate PLANNING and the people we rescue. strands of activity. sessions throughout the year to welcome open, transparent, and honest debate on We have brought forward the Equity, COLLABORATION WITH LEONARD DISABILITY NETWORK subjects affecting staff and volunteers Diversity and Inclusion (EDI) themes from our CHESHIRE CHARITY The Disability Network trialled a Buddy around the RNLI and where relevant sharing 5-year plan into our detailed plans for 2024. We have continued our partnership with the Scheme helping to link up staff and this with the ET sponsor or appropriate Leonard Cheshire charity and have focused volunteers who expressed an interest in organisational leads. EDUCATION AND AWARENESS on the recruitment, retention and treatment finding others in the organisation to form of people with disabilities, health conditions peer support groups. This is now being WOMEN'S COMMUNITY EDI events have given our staff and people and those who are neurodiverse. Leonard rolled out on our intranet, Viva Engage, to We’re working to establish a women’s managers the opportunity to explore, Cheshire was also commissioned to produce make it easier for anyone to join or create community: a space to empower, connect, enhance awareness and discuss how to make a report on reasonable adjustments at the a peer support group. The Viva Engage and support women across the RNLI. We will practical changes to help embed EDI best RNLI with the aim to develop the RNLI’s RNLI Peer Support Groups community is a bring together all the existing groups that practices in their areas. Some sessions have workplace adjustment process. The RNLI public community for staff and volunteers represent women across the organisation been for people managers only as these have and Leonard Cheshire worked together on to promote and join private support groups, and provide support to amplify their voices, included information of equality legislation understanding workplace adjustments and for example, Maternity Support, Dyslexia such as the Female Lifeguard Group, Women and discussion on how to create an inclusive the process for making them, reviewing the Support and Carers Support. The network in Engineering, Women in Search and Rescue and diverse team. RNLI’s existing process and resources, and also collaborated with the EDI Book Club and other groups. For 200 years women have Disability Means Business and Disability identifying the actions that will improve the to host a session and choose the book read played a critical role in the RNLI’s history, from Confident Managers events delivered by workplace adjustment process. The objective that quarter. lifesaving to fundraising and everything in Leonard Cheshire have supported our of the partnership is for RNLI to have an between. This community will be a celebration people to develop skills and confidence to outstanding workplace adjustment process, YOUNG PEOPLE’S NETWORK of the unique perspectives that each woman understand disability in the workplace in an which delivers for both disabled employees The Young Professional’s Network (YPN) brings to our charity. The community will inclusive way with disabled colleagues. and the charity. was rebranded at the end of 2023 to the create a space to share experiences and An Inclusive Leadership event has Young People’s Network to ensure there is support each other using this as a catalyst to supported our strategic leaders to explore EQUALITY DATA CAPTURE no unconscious exclusivity. It is moving into improve inclusivity and remove barriers. It will how they can demonstrate inclusive 2024 with two new co-chairs and a new be a place where every woman can be herself leadership behaviours. This session focuses We have made progress with our initiative executive sponsor. The YPN will continue and thrive as well as benefit from working with on helping leaders to maximise the full to significantly improve the quality and to work alongside the other networks to other women from across the organisation. benefit from all of their workforce, with an availability of the RNLI's equality data. influence behaviour change across the RNLI. In 2023, we hosted our first International increased focus on culture, relationships and The 2023 wave of the reverse mentoring Women’s Day online panel session. We decision making. NETWORK ACTIVITY scheme with senior leaders across the hosted six schools, along with members of Let’s Talk About Race events have given organisation now sees over 40 pairings, the Women's Engineering Society, at our our people the opportunity to explore and The networks have been active in 2023 to help challenge and shape the future of Lifesaving Support Centre for International understand the importance of addressing informing the planning process and working the RNLI. There are plans to revisit in early Women in Engineering Day. We also race inclusion and how to reduce and on their own focus areas and the interests of 2024. The YPN has also delivered two hybrid continued to celebrate Women in search overcome bias. These interactive events their membership. Three networks have had events, in collaboration with other networks and rescue on our social media channels.

Disability Means Business and Disability identifying the actions that will improve the Confident Managers events delivered by workplace adjustment process. The objective Leonard Cheshire have supported our of the partnership is for RNLI to have an people to develop skills and confidence to outstanding workplace adjustment process, understand disability in the workplace in an which delivers for both disabled employees inclusive way with disabled colleagues. and the charity. An Inclusive Leadership event has supported our strategic leaders to explore EQUALITY DATA CAPTURE how they can demonstrate inclusive leadership behaviours. This session focuses We have made progress with our initiative on helping leaders to maximise the full to significantly improve the quality and benefit from all of their workforce, with an availability of the RNLI's equality data. increased focus on culture, relationships and decision making. NETWORK ACTIVITY Let’s Talk About Race events have given our people the opportunity to explore and The networks have been active in 2023 understand the importance of addressing informing the planning process and working race inclusion and how to reduce and on their own focus areas and the interests of overcome bias. These interactive events their membership. Three networks have had

HARBOUR NETWORK (LGBT+) the Ambassador’s programme and The Harbour Network is continuing its work we have seen an increase in both staff on the LGBT+ Accreditation Scheme which and volunteers in 2023 in the programme. gives recognition to RNLI stations and places The network has represented the that visibly acknowledge inclusivity. We are organisation at Pride across the UK and working on how to make this a much easier Ireland, inspiring and educating people from process within regions and hope to roll this the LGBT+ community about the work of out in early 2024. The Harbour Network the RNLI and how they can stay safe when has been working on further rolling out around the coast. In 2023, the Harbour

Float to Live: Olympic swimmer Alice Dearing joins the Black Swimming Association (BSA), RNLI and the University of Portsmouth for the latest in lifesaving research

Network rolled out a new LGBT+ training

STATEMENT OF PUBLIC BENEFIT

programme for staff and are in discussions on how we can implement this to the volunteers too. The network has also been assisting with The RNLI provides public benefit in those the development of a Transgender Policy. jurisdictions where it operates as a charity In addition, the network has been working by saving lives at sea. The governments of alongside the other networks to influence the UK and Ireland have a statutory behaviour change across the RNLI via online duty to provide a maritime search and and in-person presentations. rescue service.

HM Coastguard, the Irish Coast Guard BLACK SWIMMING ASSOCIATION and the requisite Tasking Authorities in the Isle of Man, Jersey, Guernsey and Our partnership with the Black Swimming Alderney, initiate search and rescue and Association (BSA) continues to strengthen as rely extensively on the RNLI’s expertise the Water Safety Team work to ensure our and resources to save lives at sea. The influence, safety messaging and relevance RNLI relies on donations to meet the cost can reach a broad and diverse audience. of providing this public service. Specifically, the BSA supports access to RNLI Trustees have complied with their targeted at-risk African, Caribbean and duty to have due regard to the Charity Asian individuals through: Commission's public benefit guidance • Research – to help understand population when exercising relevant powers or duties. knowledge base, behaviour change requirements and deployment of messaging.

Intervention – an immersive programme known as the Blue Hour aimed at teaching the RNLI Float to Live message, calling for help and basic swimming.

Conclusion

The Annual Report of the RNLI was approved by the Board of Trustees on 8 May 2024 and signed on their behalf by

• Float to Live – a tri-party effort between the RNLI, BSA and University of Portsmouth to further advance Float research and awareness with ethnically diverse communities.

• Diversity – BSA supports the RNLI in becoming more relevant to ethnically diverse audiences.

Janet Legrand OBE KC (Hon) RNLI Chair

RNLI ANNUAL REPORT 45 AND ACCOUNTS 2023

INDEPENDENT AUDITOR'S REPORT

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ROYALNATIONAL LIFEBOAT INSTITUTION

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008, Charities Accounts (Scotland) Regulations 2006 and the Charities Act (Northern Ireland) 2008 require us to report to you if, in our opinion;

OPINION ON THE FINANCIAL STATEMENTS

including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Our responsibilities and the responsibilities • the information given in the Trustees’
of the Trustees with respect to going concern Report for the financial year for which are described in the relevant sections of the financial statements are prepared is this report. inconsistent in any material respect with the financial statements; or
give a true and fair view of the state of the Group’s and of the Parent Charity’s affairs as at 31 December 2023 and of the Group’s and Parent Charity’s incoming resources and application of resources for the year then ended;

BASIS FOR OPINION

OTHER INFORMATION

then ended; We conducted our audit in accordance • have been properly prepared in accordance with International Standards on Auditing with United Kingdom Generally Accepted (UK) (ISAs (UK)) and applicable law. Our Accounting Practice; and responsibilities under those standards • have been prepared in accordance with the are further described in the Auditor’s requirements of the Charities Act 2011, responsibilities for the audit of the financial Charities and Trustee Investment (Scotland) statements section of our report. We believe Act 2005 and regulations 6 and 8 of the that the audit evidence we have obtained is Charities Accounts (Scotland) Regulations sufficient and appropriate to provide a basis 2006, as amended and the Charities Act for our opinion.

• adequate and proper accounting records have not been kept by the Parent Charity; or

with International Standards on Auditing The Trustees are responsible for the other (UK) (ISAs (UK)) and applicable law. Our information. The other information comprises responsibilities under those standards the information included in the Annual are further described in the Auditor’s Report and Accounts, other than the financial responsibilities for the audit of the financial statements and our auditor’s report thereon. statements section of our report. We believe Our opinion on the financial statements that the audit evidence we have obtained is does not cover the other information and, sufficient and appropriate to provide a basis except to the extent otherwise explicitly for our opinion. stated in our report, we do not express any form of assurance conclusion thereon. Our INDEPENDENCE responsibility is to read the other information We remain independent of the Group and the and, in doing so, consider whether the other Parent Charity in accordance with the ethical information is materially inconsistent with requirements relevant to our audit of the the financial statements or our knowledge financial statements in the UK, including the obtained in the audit or otherwise appears to FRC’s Ethical Standard, and we have fulfilled be materially misstated. If we identify such our other ethical responsibilities in accordance material inconsistencies or apparent material with these requirements. misstatements, we are required to determine whether there is a material misstatement in CONCLUSIONS RELATED TO the financial statements themselves. If, based GOING CONCERN on the work we have performed, we conclude In auditing the financial statements, we have that there is a material misstatement of this concluded that the Trustees’ use of the going other information, we are required to report concern basis of accounting in the preparation that fact. of the financial statements is appropriate. We have nothing to report in this regard.

the Parent Charity financial statements are not in agreement with the accounting records and returns; or
have been prepared in accordance with the requirements of the Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006, as amended and the Charities Act (Northern Ireland) 2008 as amended by the Charities Act (Northern Ireland 2013).
we have not received all the information and explanations we require for our audit.
RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustee Board Responsibilities section, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

We have audited the financial statements of Parent Charity in accordance with the ethical The Royal National Lifeboat Institution (“the requirements relevant to our audit of the Parent Charity”) and its subsidiaries (“the financial statements in the UK, including the Group”) for the year ended 31 December 2023 FRC’s Ethical Standard, and we have fulfilled which comprise the RNLI Consolidated and our other ethical responsibilities in accordance RNLI Statement of Financial Activities, the with these requirements. RNLI Consolidated and RNLI balance sheets, the RNLI Consolidated Cash Flow Statement CONCLUSIONS RELATED TO and notes to the financial statements, including GOING CONCERN a summary of significant accounting policies. In auditing the financial statements, we have The financial reporting framework that has concluded that the Trustees’ use of the going been applied in their preparation is applicable concern basis of accounting in the preparation law and United Kingdom Accounting Standards, of the financial statements is appropriate.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the Trustees either intend material misstatements in respect of • Reading minutes of meeting of those A further description of our responsibilities to liquidate the Group or the parent Charity irregularities, including fraud. The extent to charged with governance, reviewing for the audit of the financial statements is or to cease operations, or have no realistic which our procedures are capable of detecting internal audit reports and reviewing located at the Financial Reporting Council’s alternative but to do so. irregularities, including fraud is detailed below: correspondence with HMRC and the (“FRC’s”) website at: Based on our understanding of the various charity regulators; https://www.frc.org.uk/auditorsresponsibilities.
AUDITOR’S RESPONSIBILITIES Charity and the industry in which it operates, • Reviewing items included in the group’s This description forms part of our FOR THE AUDIT OF THE we identified that the principal laws and fraud and theft database as well as the auditor’s report. FINANCIAL STATEMENTS regulations that directly affect the financial results of internal audit’s investigation into
We have been appointed as auditor under statements to be relevant charities acts in the these matters; USE OF OUR REPORT section 151 of the Charities Act 2011 and UK and Ireland. We assessed the extent of • Review of sample of gift aid claims This report is made solely to the Charity’s section 44(1)(c) of the Charities and Trustee compliance with these laws and regulations as and ensuring these have been made in trustees, as a body, in accordance with the Investment (Scotland) Act 2005 and section part of our procedures on the related financial accordance with the regulations; Charities Act 2011 and the Charities and 65 of the Charities Act (Northern Ireland) statement items. • Challenging assumptions made by Trustee Investment (Scotland) Act 2005 and 2008 and report in accordance with the Acts In addition, the Charity is subject to management in their significant the Charities Act (Northern Ireland) 2008. and relevant regulations made or having many other laws and regulations where the accounting estimates in particular Our audit work has been undertaken so that effect thereunder. consequences of non-compliance could have in relation to the legacy accrual and we might state to the Charity’s trustees those Our objectives are to obtain reasonable a material effect on amounts or disclosures in assumptions used in the calculation of the matters we are required to state to them in an
assurance about whether the financial the financial statements, for instance through defined benefit pension liability; and auditor’s report and for no other purpose. statements as a whole are free from material the imposition of fines or litigation. We • In addressing the risk of fraud through To the fullest extent permitted by law, we do misstatement, whether due to fraud or error, identified the following areas as those most management override of controls; testing not accept or assume responsibility to anyone and to issue an auditor’s report that includes likely to have such an effect: employment the appropriateness of journal entries other than the Charity and the Charity’s our opinion. Reasonable assurance is a high law, data protection and health and safety and other adjustments, in particular any trustees as a body, for our audit work, for this level of assurance, but is not a guarantee legislation. In order to help identify instances journals posted by senior management or report, or for the opinions we have formed. that an audit conducted in accordance with with unusual accounts combinations.

• Reading minutes of meeting of those A further description of our responsibilities charged with governance, reviewing for the audit of the financial statements is internal audit reports and reviewing located at the Financial Reporting Council’s correspondence with HMRC and the (“FRC’s”) website at: various charity regulators; https://www.frc.org.uk/auditorsresponsibilities. • Reviewing items included in the group’s This description forms part of our fraud and theft database as well as the auditor’s report.

In addition, the Charity is subject to
many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: employment law, data protection and health and safety legislation. In order to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, we made enquiries of management and those charged with Governance about whether the entity is in compliance with such laws and regulations and we inspected any relevant regulatory and legal correspondence. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Our objectives are to obtain reasonable
assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individuallyor in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of

the financial statements, we made enquiries Our audit procedures were designed to of management and those charged with respond to risks of material misstatement in Governance about whether the entity is in the financial statements, recognising that the compliance with such laws and regulations and risk of not detecting a material misstatement we inspected any relevant regulatory and legal due to fraud is higher than the risk of not BDO LLP, statutory auditor correspondence. We assessed the extent of detecting one resulting from error, as fraud London, UK compliance with these laws and regulations as may involve deliberate concealment by, Date: 9 May 2024 part of our procedures on the related financial for example, forgery, misrepresentations statement items. or through collusion. There are inherent Audit procedures performed by the limitations in the audit procedures performed engagement team included: and the further removed non-compliance • Discussions with management and internal with laws and regulations is from the events audit, including consideration of known or and transactions reflected in the financial suspected instances of non-compliance statements, the less likely we are to become aware of it.

EXTENT TO WHICH THE AUDIT WAS CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect

Discussions with management and internal audit, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

RNLI ANNUAL REPORT 47 AND ACCOUNTS 2023

FINANCIAL STATEMENTS

FINANCIAL

	Note	Unrestricted funds	Unrestricted funds	Unrestricted funds	Restricted	Endowed	Total	Total
		General funds	Designated funds	Fixed asset funds	funds	funds	2023	2022
		£M	£M	£M	£M	£M	£M	£M
Income and endowments from:
Legacies		125.5	–	–	31.4	–	156.9	140.8
Donations		55.6	–	–	10.1	–	65.7	66.5
Tradingactivities		16.3	–	–	–	–	16.3	16.3
Investments	7c	1.7	–	–	2.9	–	4.6	3.3
Charitable activities		4.9	–	–	–	–	4.9	4.4
Other income		1.2	–	–	–	–	1.2	0.5
Total income and endowments		205.2	–	–	44.4	–	249.6	231.8
Expenditure on:
Legacies and donations		(43.3)	–	(1.6)	–	–	(44.9)	(44.6)
Tradingactivities		(11.8)	–	(0.1)	–	–	(11.9)	(10.9)
Investment management		(0.1)	–	–	(0.1)	–	(0.2)	(0.3)
Raising funds		(55.2)	–	(1.7)	(0.1)	–	(57.0)	(55.8)
Lifeboat service		(39.3)	–	(2.6)	(11.7)	–	(53.6)	(50.1)
Lifeboats, propertyand equipment		(54.9)	–	(21.7)	(22.0)	–	(98.6)	(94.3)
Lifeboat rescue		(94.2)	–	(24.3)	(33.7)	–	(152.2)	(144.4)
Lifeguard rescue		(21.9)	–	(1.7)	(0.1)	–	(23.7)	(22.2)
International		(2.9)	–	–	(0.2)	–	(3.1)	(2.9)
Water safety,education and awareness		(6.4)	–	(0.2)	–	–	(6.6)	(7.7)
Charitable activities		(125.4)	–	(26.2)	(34.0)	–	(185.6)	(177.2)
Total expenditure	5	(180.6)	–	(27.9)	(34.1)	–	(242.6)	(233.0)
Netgain/(loss)on investments	7b	(4.4)	–	–	11.6	5.0	12.2	(26.3)
Net income/(expenditure)		20.2	–	(27.9)	21.9	5.0	19.2	(27.5)
Transfers between funds	1h	(11.5)	(0.3)	33.9	(22.0)	(0.1)	–	–
Actuarialgain onpension schemes	11d	1.8	–	–	–	–	1.8	4.6
Net movement in funds		10.5	(0.3)	6.0	(0.1)	4.9	21.0	(22.9)
Reconciliation of funds:
Funds at 1January		113.7	5.5	475.4	115.6	65.1	775.3	798.2
Movement in funds		10.5	(0.3)	6.0	(0.1)	4.9	21.0	(22.9)
Funds at 31 December		124.2	5.2	481.4	115.5	70.0	796.3	775.3

Notes 1–19 form part of these accounts.

RNLI CONSOLIDATED BALANCE SHEET		Note	2023	2023	2022	2022
as at 31 December 2023 Janet LegrandOBE KC (Hon) RNLI Chair Mark Dowie Chief Executive Notes 1–19 form part of these accounts. The accounts of the RNLI and the consolidated accounts were approved and authorised for issue by the Trustees on 8 May 2024 and signed on their behalf.			£M	£M	£M	£M
	Assets employed
	Fixed assets
	Intangible assets	6b	7.6		10.9
	Tangible assets	6a	473.8		464.5
				481.4		475.4
	Investments	7		256.3		270.8
	Current assets
	Stocks	8	30.4		25.0
	Debtors	9	62.3		51.0
	Bank and cash		1.4		2.3
			94.1		78.3
	Creditors – amounts fallingdue within 1year	10	(19.0)		(22.2)
	Net current assets			75.1		56.1
	Creditors
	Amounts fallingdue after more than 1year	10		(2.7)		(3.7)
	Defned beneftpension liability	10		(13.8)		(23.3)
	Net assets			796.3		775.3
	Funds
	Endowed funds:Permanent Expendable	12b	19.8 50.2		19.2 45.9
				70.0		65.1
	Restricted funds	12c		115.5		115.6
	Unrestricted funds
	Fixed asset funds			481.4		475.4
	Designated funds	12d		5.2		5.5
	General funds:Free reserves Pension reserve		138.0 (13.8)		137.0 (23.3)
				124.2		113.7
	Total funds			796.3		775.3

Notes 1–19 form part of these accounts. The accounts of the RNLI and the consolidated accounts were approved and authorised for issue by the Trustees on 8 May 2024 and signed on their behalf.

RNLI ANNUAL REPORT 49 AND ACCOUNTS 2023

FINANCIAL STATEMENTS

RNLI CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2023

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2023 2022 This year, we have amended the presentation of the
£M £M movement in creditors and the way in which we account
Cash flow from operating activities: for the defined benefit pension schemes within the
Net cash provided by operating activities (see note below) 2.1 23.2 reconciliation of net income/(expenditure) to net cash
Cash flows from investing activities: flow from operating activities. Previously, the movement
in creditors incorrectly included the defined pension
Investment income 4.6 3.3
scheme liabilities and the reconciliation added back
Proceeds from the sale of fixed assets 1.2 0.8
the actuarial gain on pension schemes. The defined
Purchase of fixed assets (34.4) (37.2) pension schemes are now considered separately in the
Purchase of investments (22.2) (32.7) reconciliation as impact of defined benefit scheme
Proceeds from sale of investments 48.9 43.3 accounting. This has changed the previously reported
Net cash used in investing activities (1.9) (22.5) 2022 figure for the movement in creditors from a
decrease of £8.2M to an increase of £4.6M. The actuarial
Cash flows from financing activities:
gain on pension schemes of £4.6M in 2022 is no longer
Payment of short-term lease liability (1.1) (1.1) in the reconciliation. All defined benefit pension schemes
Net cash used in financing activities (1.1) (1.1) adjustments are now included in the reconciliation as
Change in cash and cash equivalents in the reporting period (0.9) (0.4) impact of defined benefit scheme accounting and for
Reconciliation of cash flow: 2022 this was a decrease of £8.2M. There is no change
Cash and cash equivalents at the beginning of the reporting period 2.3 2.7 in net cash provided by operating activities for 2022.
Change in cash and cash equivalents in the reporting period (0.9) (0.4)
Cash and cash equivalents at the end of the reporting period 1.4 2.3
2023 2022
£M £M
Note to the consolidated cash flow statement
Analysis of changes in net funds
Reconciliation of net income/(expenditure) to net cash flow from
operating activities
2022 Cashflows Non-cash 2023
Net income/(expenditure) for the period (as per the SoFA) 19.2 (27.5) movements
Depreciation and amortisation charges 27.9 26.8 £M £M £M £M
(Gain)/ loss on investments (12.2) 26.3 Cash 2.3 (0.9) – 1.4
Investment income (4.6) (3.3)
Lease liability falling
(Profit)/loss on disposal of fixed assets (0.7) 0.2 due within one year (1.1) 1.1 (0.6) (0.6)
Increase in stock (5.4) (1.9)
Lease liability falling
(Increase)/decrease in debtors (11.3) 6.2 due after more than (0.6) – 0.6 –
(Decrease)/increase in creditors (2.7) 4.6 one year
Adjusting for impact of defined benefit scheme accounting (8.1) (8.2) Total 0.6 0.2 – 0.8
Net cash provided by operating activities 2.1 23.2 Notes 1–19 form part of these accounts.
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RNLI STATEMENT OF FINANCIAL ACTIVITIES[†] for the year ended 31 December 2023

Notes 1–19 form part of these accounts.

† The RNLI statement of financial activities shows the financial performance for the year of the charity excluding its subsidiaries.

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Note Unrestricted funds Restricted Endowed Total Total
General Designated Fixed asset funds funds 2023 2022
funds funds funds
£M £M £M £M £M £M £M
Income and endowments from:
Legacies 125.5 – – 31.4 – 156.9 140.8
Donations 55.7 – – 10.0 – 65.7 66.5
Donations from subsidiary companies 4.4 – – 0.5 – 4.9 6.1
Investments 7c 1.7 – – 2.5 – 4.2 2.9
Charitable activities 4.9 – – – – 4.9 4.4
Other income 1.2 – – – – 1.2 0.5
Total income and endowments 193.4 – – 44.4 – 237.8 221.2
Expenditure on:
Legacies and donations (43.3) – (1.6) – – (44.9) (44.6)
Trading activities – – – – – – –
Investment management (0.1) – – (0.1) – (0.2) (0.3)
Raising funds (43.4) – (1.6) (0.1) – (45.1) (44.9)
Lifeboat service (39.3) – (2.6) (11.7) – (53.6) (50.1)
Lifeboats, property and equipment (55.5) – (21.7) (22.0) – (99.2) (94.4)
Lifeboat rescue (94.8) – (24.3) (33.7) – (152.8) (144.5)
Lifeguard rescue (21.9) – (1.7) (0.1) – (23.7) (22.2)
International (2.9) – – (0.2) – (3.1) (2.9)
Water safety, education and awareness (6.4) – (0.2) – – (6.6) (7.7)
Charitable activities (126.0) – (26.2) (34.0) – (186.2) (177.3)
Total expenditure (169.4) – (27.8) (34.1) – (231.3) (222.2)
Net gain/(loss) on investments 7b (4.4) – – 11.6 0.6 7.8 (23.9)
Net income/(expenditure) 19.6 – (27.8) 21.9 0.6 14.3 (24.9)
Transfers between funds 1h (11.8) (0.3) 34.1 (22.0) – – –
Actuarial gain on pension schemes 11d 1.8 – – – – 1.8 4.6
Net movement in funds 9.6 (0.3) 6.3 (0.1) 0.6 16.1 (20.3)
Reconciliation of funds:
Funds at 1 January 116.0 5.5 472.8 115.6 19.2 729.1 749.4
Movement in funds 9.6 (0.3) 6.3 (0.1) 0.6 16.1 (20.3)
Funds at 31 December 125.6 5.2 479.1 115.5 19.8 745.2 729.1
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RNLI ANNUAL REPORT 51 AND ACCOUNTS 2023

FINANCIAL STATEMENTS

RNLI BALANCE SHEET[†]

as at 31 December 2023

Janet Legrand OBE KC (Hon) RNLI Chair

Mark Dowie

Chief Executive

Notes 1–19 form part of these accounts. The accounts of the RNLI and the consolidated accounts were approved and authorised for issue by the Trustees on 8 May 2024 and signed on their behalf.

† The RNLI balance sheet shows the financial position of the charity excluding its subsidiaries.

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Note 2023 2022
£M £M £M £M
Assets employed
Fixed assets
Intangible assets 7.5 10.7
Tangible assets 471.6 462.1
479.1 472.8
Investments 7 211.6 230.4
Current assets
Stocks 8 25.3 21.2
Debtors 9 63.9 51.7
Bank and cash 1.3 1.5
90.5 74.4
Creditors – amounts falling due within 1 year 10 (19.5) (21.5)
Net current assets 71.0 52.9
Creditors
Amounts falling due after more than 1 year 10 (2.7) (3.7)
Defined benefit pension liability 10 (13.8) (23.3)
Net assets 745.2 729.1
Funds
Endowed funds: Permanent 19.8 19.2
19.8 19.2
Restricted funds 12c 115.5 115.6
Unrestricted funds
Fixed asset funds 479.1 472.8
Designated funds 12d 5.2 5.5
General funds: Free reserves 139.4 139.3
Pension reserve (13.8) (23.3)
125.6 116.0
Total funds 745.2 729.1
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Keeping skills sharp: Llandudno's inshore lifeboat volunteers on exercice aboard their D class lifeboat Dr Barbara Saunderson . RNLI crews have been saving lives out of Llandudno since 1861

RNLI ANNUAL REPORT 53 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

RNLI NOTES TO THE ACCOUNTS

No cash flow statement has been presented for the Parent Charity.
Disclosures in respect of the Parent Charity's financial instruments have not been presented, as equivalent disclosures have been provided in respect of the Group as a whole.

FOR THE YEAR ENDED 31 DECEMBER 2023

No disclosure has been given for the aggregate remuneration of the key management personnel of the Parent Charity as their remuneration is included in the totals for the Group as a whole.

1. RNLI STRUCTURE AND ACCOUNTING POLICIES

The RNLI was founded in 1824 and was incorporated by Royal Charter granted in 1860, with Supplemental Charters granted in 1932, 1986, 2002 and 2011. The RNLI is a charity registered in England and Wales (209603), Scotland (SC037736), the Republic of Ireland (CHY 2678 and 20003326), the Bailiwick of Jersey (14), the Isle of Man (1308 and 006329F), the Bailiwick of Guernsey (CH135) and Alderney (CH386). The address of the registered office is West Quay Road, Poole, Dorset, BH15 1HZ.

GOING CONCERN

The Trustees reviewed the RNLI’s financial plans for 2024 in November 2023 as part of their normal annual review. They were content that these plans were affordable and that the accounts should be prepared on a going concern basis. Our plans continue to evolve through 2024, as we seek to address our principal financial risks, and there are ongoing reviews of forecasts throughout the year.

a) Basis of accounting

The accounts (financial statements) have been prepared forecasts throughout the year. in accordance with the Accounting and Reporting by The review of the RNLI’s annual plan has continued in Charities: Statement of Recommended Practice (SORP), the light of the current cost-of-living crisis and legacy of the Financial Reporting Standard 102 The Financial Reporting recent increase in inflation. Through rigorous planning, we Standard applicable in the UK and Republic of Ireland anticipate the RNLI will be able to develop plans to bring the (FRS102) and the Charities Act 2011. finances into balance. The Trustees are exploring all options

the light of the current cost-of-living crisis and legacy of the recent increase in inflation. Through rigorous planning, we anticipate the RNLI will be able to develop plans to bring the finances into balance. The Trustees are exploring all options to reprioritise activity and respond to the changing financial picture, prioritising our frontline lifesaving services. They are satisfied that the RNLI's future viability has not been critically affected by the current situation, with the key financial risk being managing costs in a high-inflation environment. The RNLI Executive and Finance Committee also review short-term forecasts on a regular basis, through the review of financial risks and opportunities, and are content that the RNLI has sufficient resources to continue operating for a period of at least 12 months from the date of signing these accounts.

The accounts (financial statements) have been prepared to give a true and fair view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following Accounting and Reporting by Charities, preparing their accounts in accordance with The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).
The RNLI 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. Certain investments are held at fair value, see Note 7 for details.

Given the strength of the balance sheet and availability and liquidity of unrestricted investments, totalling around £82.3M, the Trustees believe that, while uncertainty exists, this does not pose a material uncertainty that would cast doubt on the charity’s ability to continue as a going concern.

In preparing the separate financial statements of the charity, advantage has been taken of the following disclosure exemptions available in FRS 102:

The Trustees, therefore, consider it appropriate for the accounts

to be prepared on a going-concern basis.

b) Critical accounting judgements and key sources of estimation

In the application of the Charity’s accounting policies, Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered 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 to which they relate.

In preparing these financial statements, a key judgement has been made in respect of the following:

Residuary legacies – a debtor is recognised at the point it can be reliably measured and that the RNLI is entitled to the legacy. This recognition point is reached when the

The key sources of estimation are summarised below:

Residuary legacies – the valuation of the legacy debtor involves making estimates in relation to the valuation that the RNLI will receive from the estate. Key components of this estimate relate to the estimated disposal value of capital assets and an estimate of the costs to be incurred administrating the estate. In 2023, the residuary legacy debtor was £46.3M (2022: £35.7M).

• Pension liabilities – the charity recognises its liability to its defined benefit pension scheme, which involves several estimations as disclosed in Note 11. The critical underlying assumptions in relation to the estimate of the pension defined benefit scheme obligation include items such as standard rates of inflation, mortality, discount rate and anticipated future salary increases. Variations in these assumptions can significantly influence the value of the liability recorded and annual defined benefit expense (see Note 11 on page 66 for sensitivity information). Assumptions used are based on actuarial advice.

c) Basis of consolidation

All subsidiary companies and charities, as listed in Note 2, have been consolidated on a line-by-line basis. Their objectives contribute to those of the RNLI Group strategy and under the test of control they are deemed to be subsidiaries of the RNLI. The intra-group transactions, balances and unrealised profits are eliminated in full.

RNLI (Trading) Limited was inactive throughout 2023 and
has not been consolidated on that basis.

d) Depreciation, amortisation and impairment

Tangible and intangible fixed assets costing more than £10,000 are capitalised and included at cost. Fixed assets are reviewed annually to determine whether
there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment an impairment loss is recognised in the Statement of Financial Activities.

Fixed assets are depreciated or amortised over their

current anticipated lives, which are assessed as follows:

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Goodwill and intellectual
Straight line over 10 years
property
No depreciation is charged
Assets under construction on assets in the course of
construction
Freehold lifeboat stations
Straight line over 50 years
and shoreworks
Other freehold/ leasehold Straight line over 50 years/period
buildings of lease
Straight line over 15–25 years.
Lifeboats Shannon and Tamar lifeboat hulls
over 50 years
Launching equipment Straight line over 10–25 years
Office furniture and
Straight line over 5–10 years
depot plant
Computer hardware and
Straight line over 4–10 years
software
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e) Pension schemes

The RNLI operates a defined benefit pension scheme covering its employees in the UK and the Republic of Ireland. The scheme was closed to new entrants from 1 January 2007 and closed to future benefit accrual on 30 September 2012, although benefits for active members accrued up to 30 September 2012 continue to be subject to any increases in pensionable pay.

A defined contribution pension scheme was established for new staff joining from 1 January 2007 and this was also offered as an alternative to members of the defined benefit pension scheme on its closure.

The RNLI also operates a dependants’ pension scheme where benefits are paid by the RNLI to dependants of former crew members who lost their lives on lifeboat service. The defined benefit and dependants’ pension scheme assets are both held in separate trusteeadministered funds. The cost charged in the Statement of Financial Activities (SoFA) represents current service costs and gains and losses on settlements and curtailments calculated in accordance with Accounting Standard FRS102. Further details are shown in Note 11. For the defined benefit pension and dependants’ pension scheme, the current service costs, gains and losses on settlements and curtailments, and administrative expenses are charged to expenditure. Similarly, pension finance costs arising from changes in the net of the interest costs and expected return on assets are charged to expenditure. Actuarial gains and losses are recognised immediately in the Statement of Financial Activities as Actuarial gain/(loss) on pensions scheme. Contributions in respect of defined contribution schemes are recognised as expenditure as they become payable.

The difference between the fair value of the assets held in the group's defined benefit pension scheme and the scheme's liabilities, measured on an actuarial basis using the projected unit method, are recognised in the group's balance sheet as a pension asset or liability as appropriate.

f) Income

Incoming resources are included in the SoFA when the RNLI is entitled to the income, the receipt is probable and the amount can be quantified with reasonable accuracy. If these conditions are not met the income is deferred. The following specific policies apply to categories of income.

Legacy income is recognised either at the point that the future income from an estate meets the recognition category or, for legacies not previously recognised, the point that the first cash payment is received. For pecuniary legacies, unpaid legacies are accrued into the accounts when they are notified unless there is any evidence that the legacy is contested, or the estate is impaired. For residuary legacies, a debtor is recognised at the point that it can be reliably measured, and that the RNLI is entitled to the legacy. This recognition point is reached when the executors make the first interim distribution. Legacies that do not meet the recognition criteria but where a value can be estimated represent a contingent asset and the value of these are disclosed in Note 9. In the rare cases where legacy property assets are legally transferred to the RNLI, rather than sold during the process to settle the estate, they are capitalised under tangible fixed assets at market value. When sold, the profit or loss on disposal is recognised in the SoFA as legacy income rather than profit or loss on disposal of fixed assets. All donations are accounted for when received. Subscription income is treated as a donation, as there is no material benefit given, and is accounted for when received. Lottery income is recognised at the point the associated draw occurs. Charitable activity income represents lifeguard income which is accounted for over the period the service is provided. Investment income is accounted for on a receivable basis. The trading companies recognise revenue when the amount can be reliably measured; and it is probable that future economic benefits will flow to the entity.

On receipt, and where material, donations in kind are recognised on the basis of the value of the gift to the charity, which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then

RNLI ANNUAL REPORT 55 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

recognised in expenditure in the period of receipt. Gifts in kind that are not material are not disclosed.

The Gift Aid element of donations made to the charity is recognised as income in the charity at the same point as the linked donation. Donations from subsidiaries, made as a qualifying charitable donation, are recognised as income when paid, or at the date when the subsidiary has a legal liability to make the donation payment if earlier.

g) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Support costs representing expenditure on governance, general administration, finance, human resources and information technology have been allocated to expenditure, excluding merchandising and investment management, on the basis of cost (see Note 5). Employee benefits paid on termination include accrued amounts where the RNLI is demonstrably committed to make these payments.

The cost of volunteer time is not accounted for as this cannot be estimated reliably.

h) Fund accounting

The RNLI’s funds fall into the following categories:

Permanent endowments are capital sums that are donated under the restriction that they are invested and that only the income arising is available for expenditure in accordance with the donors’ directions. These capital sums can only be spent in exceptional circumstances with the agreement of the Charity Commission.

Expendable endowments are capital sums that are donated under the restriction that they are invested and that only the income arising is available for expenditure in accordance with the donors' directions. These capital sums may be spent at the discretion of the Trustees of the RNLI Lifesaving Endowment, where necessary, and in accordance with the donors' directions.

Restricted funds are only available for expenditure in accordance with the donors' directions. This will include any restricted legacy value accrued on an estimated basis, in accordance with the policy on income detailed in this note.

Fixed asset funds represent the assets of the RNLI, the vast majority of which are the lifeboats, launching equipment and operational properties, such as lifeboat stations and lifeguard units. Without them the RNLI could not operate. They are shown separately to other unrestricted funds due to the size and importance of these assets to the RNLI.

Designated funds are set aside at the discretion of the Trustees. A Special Projects fund has been established to designate funds where significant financial assurances have been made to third parties to ensure monies are available. This is entirely for the project at Weston-super-Mare, where the local Council are seeking significant funds to repair the pier that will give access to the lifeboat station and the RNLI has given assurances that these funds will be available for the construction of the lifeboat station and access.

The above funds are committed funds.

General funds are sums that are freely available for general use. They comprise:

• Free reserves , which are retained to enable the Trustees to provide assurance to those at sea, the public and the governments of the UK and Republic of Ireland that the RNLI will be able to sustain its commitment to provide the lifeboat and lifeguard service. The free reserves are set at a level to withstand any short-term financial risks, the main ones being in the investment markets, pension scheme funding, key sources of income, such as legacies, and inflation. Based on this value, if free reserves fall outside the range of 4–10 months’ charitable expenditure cover, the Trustees will review the business plan and make changes, as they consider appropriate. These free reserves will include any unrestricted legacy values accrued.

• Pension reserve , which represents the FRS102 accounting deficit for the defined benefit pension scheme as at the year end. The FRS102 basis is a prescribed accounting basis that requires the discount rate to be the rate on highquality corporate bonds with a duration equivalent to that of the scheme liabilities. Each year, the scheme actuary assesses the financial position of the scheme, allowing for the returns expected to be generated by the assets planned to be held by the scheme in the future. These assets would not typically consist of 100% in corporate bonds. Further details are shown in Note 11.

Transfers between funds represent the completion of capital projects funded from restricted and general funds and the satisfaction of the restriction or designation on completion of the project. Transfers to the fixed asset fund are required to maintain the committed value of the fund. Transfers from certain restricted to general funds are made with the consent of the donor or executor. In 2023, these transfers totalled £14.1M.

i) Operating leases

Rentals applicable to operating leases are charged to the SoFA over the period in which the cost is incurred on a straight-line basis.

j) Investments

Investments for which there is a quoted market value are valued at the bid-price ruling at the balance sheet date. Other investments are valued at their realisable market value. Investment gains and losses arising during the year are included in the SoFA. Investments in subsidiaries are valued at cost less impairment. Investments in loans are carried at cost with an allowance for impairment. Cash deposits held with investment managers are excluded from cash and cash equivalents on the balance sheet.

k) Stocks

Stocks are valued at cost or written-down value. Stocks are reviewed on a line-item basis at least annually and provision

is made against cost to reduce carrying value to estimated net realisable value. Included within operational stock are lifeboat manufacturing and repair materials, spares, crew kit, safety equipment and consumables. These are held as stock until distribution from the warehouse, at which point they are expensed if consumable or capitalised to fixed assets.

l) Presentation currency

The functional currency of the RNLI and its subsidiaries is considered to be in pounds sterling because that is the currency of the primary economic environment in which the organisation operates. The consolidated financial statements are also presented in pounds sterling.

m) Exchange rate gains and losses

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets are translated at the rate of exchange ruling at the balance sheet date. Gains and losses on exchange are included in the SoFA.

n) Cash at bank and short-term deposits

Cash at bank and short-term deposits include cash and shortterm highly liquid investments with a short maturity of 3 months or less from the date of acquisition or opening of the deposit or similar account. All cash and short-term deposits are basic instruments and are measured at amortised cost.

o) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2. SUBSIDIARY UNDERTAKINGS

a) Subsidiary companies

The RNLI has four wholly owned subsidiaries, RNLI (Trading) Limited, RNLI College Limited, RNLI (Sales) Limited, and Clayton Engineering Limited. All are registered in England

and Wales, and each has a year end of 31 December 2023. RNLI (Trading) Limited was not trading throughout 2023. The activities of RNLI College Limited relate directly to the charitable activities of the RNLI and comprise the training of lifeboat crew and lifeguards, although there are external sales of excess capacity which offset some of the costs of the training of lifeboat crew and lifeguards.

shown in this note will be donated within 9 months of the year-end. There may be occasion where profits are retained if taxable losses are available, at the discretion of the board. No provision for corporation tax has been made on
subsidiary company profits for the year. This is due to the policy of donating all tax adjusted profits available for distribution under qualifying charitable donations, to its ultimate charitable parent undertaking within 9 months of the year-end date.
RNLI (Sales) Limited is used for non-charitable fundraising ultimate charitable parent undertaking within 9 months
activities: selling gifts and souvenirs through the RNLI’s of the year-end date. network of station branches, fundraising branches and guilds, and running the Lifeboat Lottery. b) Charitable incorporated organisation
Clayton Engineering Limited is a specialist engineering RNLI Lifesaving Endowment Fund (LEF) is registered as
company which designs and manufactures lifeboat launch and a charitable incorporated organisation (CIO) with the Charity recovery equipment. Commission for England and Wales (registration number: The RNLI charges certain subsidiaries for the use of any 1184013). Its year end is 31 December. The LEF is a separate
shared resources. In 2023, a total of £0.8M (2022: £0.8M) was legal entity, able to hold property in its own name. charged to subsidiaries on a cost basis. The purpose of the LEF is the advancement of saving The subsidiary company boards have decided that all livesat sea by establishing, building and investing an
the net profit will be donated to the RNLI and any profit endowment fund.

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RNLI (Sales) Limited RNLI College Limited Clayton Engineering Limited
Company number 02202240 Company number 07705470 Company number 01274923
Subsidiary company financial information
2023 2022 2023 2022 2023 2022
£M £M £M £M £M £M
Merchandising and other trading income 14.5 14.2 1.8 2.1 – –
Internal supplies to the RNLI – – 8.1 8.1 7.5 4.8
Cost of sales (6.0) (5.3) (0.8) (0.8) (5.0) (2.7)
Operating costs (4.4) (4.8) (8.8) (8.1) (1.7) (1.8)
Net profit 4.1 4.1 0.3 1.3 0.8 0.3
Amount of qualifying charitable donation (4.1) (4.1) (0.3) (1.3) – (0.2)
Retained in subsidiary – – – – 0.8 0.1
Fixed assets 0.4 0.3 0.2 0.4 1.6 1.7
Current assets 4.1 3.5 0.2 0.1 1.6 1.8
Current liabilities (1.2) (1.0) (0.9) (1.1) (0.7) (1.1)
Amounts owed (to)/from RNLI group (1.8) (1.3) 1.5 1.6 1.3 0.6
Net assets 1.5 1.5 1.0 1.0 3.8 3.0
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RNLI ANNUAL REPORT 57 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

The Executive Team (ET), including the chief executive, are regarded as the Charity’s key management personnel under FRS102. Aggregate employee benefits of the ET totalled £1,274,635 (2022: £1,073,432). Aggregate employee benefits comprise salaries, company cars, pension costs and employer NI contributions. RNLI Chief Executive Mark Dowie receives an annual salary of £160,000 (2022: £160,000). The chief executive received aggregate employee benefits of £180,825 (2022: £181,934), which included £20,825 employer's NI (2022: £21,934).

Income is donated to the RNLI from this fund for The following number of employees received emoluments lifesaving purposes and in 2023 a donation of £0.5M was (excluding employer pension and NI contributions) in excess made (2022: £0.5M). As at 31 December 2023, the LEF held of £60,000: investments to the value of £50.2M (2022: £45.9M) and the total return on investments in 2023, including income, was Excluding a gain of £4.7M (2022: £2.0M loss).

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total return on investments in 2023, including income, was
Excluding
a gain of £4.7M (2022: £2.0M loss).
Including employees
Membership of severance pay receiving
3. STAFF COSTS
Executive Team severance pay
The RNLI relies heavily on the work of volunteers to launch shown in brackets
and crew the lifeboats, support our lifeguard service and 2023 2022 2023 2022
operate the large network of station branches, fundraising Number Number Number Number
branches and groups. We are founded on these volunteers £60,000–£69,999 81 (–) 53 (–) 68 (–) 52 (–)
who account for the vast majority of the RNLI’s people £70,000–£79,999 24 (–) 23 (–) 18 (–) 22 (–)
and include more than 5,700 volunteer crew members
(2022: 5,700) and over 4,100 volunteer shore crew and £80,000–£89,999 27 (–) 5 (–) 22 (–) 5 (–)
lifeboat station management (2022: 4,000). £90,000–£99,999 9 (1) 3 (–) 3 (1) 2 (–)
The majority of our volunteers, in number, however, are the £100,000–£109,999 5 (1) 5 (2) 3 (1) 4 (2)
fundraisers who raise money and help in our shops, museums £110,000–£119,999 4 (3) 5 (4) 3 (3) 4 (4)
and offices. Staff costs, both to support these volunteers and £120,000–£129,999 2 (2) – (–) 2 (2) – (–)
to save lives in areas such as lifeguards,are as follows:
£140,000-£149,999 – (–) 1 (–) – (–) 1 (–)
2023 2022 £160,000–£169,999 2 (1) 2 (1) 1 (1) 1 (1)
£M £M Total 154 (8) 97 (7) 120 (8) 91 (7)
Wages and salariesges and salarieses and salaries 86.1 80.6
Social security costsy costs costs 8.6 8.2
Average including
Pension costs 14.8 13.5
seasonal staff
Total 109.5 102.3
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Of the 154 employees who received emoluments in excess of £60,000 (including severance pay) in 2023, 150 (2022: 93) were members of defined contribution schemes and received employer contributions of £1,445,838 (2022: £925,238). The average monthly headcount was 2,501 (2022: 2,460). The total average number of employees, calculated on a full-time equivalent (FTE) basis, analysed by function was:

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2023 2022
£M £M
Wages and salariesges and salarieses and salaries 86.1 80.6
Social security costsy costs costs 8.6 8.2
Pension costs 14.8 13.5
Total 109.5 102.3
Severance pay 1.4 0.7
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Average including Average excluding
At 31 December
seasonal staff seasonal staff
2023 2022 2023 2022 2023 2022
Full-time equivalent employees
Number Number Number Number Number Number
Lifeboat service 374 371 374 371 353 378
Lifeboats, property and equipment 765 760 765 760 745 771
Lifeguard rescue 524 490 47 44 45 47
International 15 14 15 14 17 16
Water safety, education and awareness 83 91 83 91 80 94
Support 289 279 289 279 283 278
Legacies and donations 368 374 342 335 334 359
Trading activities 27 26 27 26 27 29
Total 2,445 2,405 1,942 1,920 1,884 1,972
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Pension costs include the cost of the pension salary sacrifice scheme, which involves employees sacrificing a proportion of their salary to contribute into their defined contribution pension scheme.

Staff costs have increased since 2022, due to headcount, pay increases and additional social security and pension costs arising.

These pay increases included the RNLI’s annual pay uplifts and some exceptional increases linked to the external economic environment, ensuring that salaries continue to attract and retain talent.

The RNLI employs seasonal staff in the form of lifeguards and face-to-face fundraisers. Lifeguards are recruited and deployed on beaches when required and have been included above in lifeguard rescue as FTE of 477 (2022: 446). The peak number of lifeguards employed during the summer months (excluding volunteers) was 1,565 (2022: 1,591). Face-to-face fundraisers are also recruited and deployed on beaches during the summer and have been included in legacies and donations as FTE of 26 (2022: 39).

4. TRUSTEE, COUNCIL AND COMMITTEE COSTS

No Trustees, or any persons connected with them, received remuneration. Travelling expenses are reimbursed, if claimed, to Trustees and members of the standing and advisory committees and the Council. In total, £15,309 (2022: £44,507) was reimbursed to 3 Trustees and 17 Council members and members of advisory committees (2022: 5 Trustees, 30 Council members and members of advisory committees). No material donations were made during the year by these persons.

5. TOTAL RESOURCES EXPENDED

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Staff costs Depreciation/ Other Other allocated Total Total
amortisation direct costs costs 2023 2022
£M £M £M £M £M £M
Legacies and donations 17.7 1.1 19.6 6.5 44.9 44.6
Trading activities 1.2 0.1 10.6 – 11.9 10.9
Investment management – – 0.2 – 0.2 0.3
Lifeboat service 20.6 2.0 23.3 7.7 53.6 50.1
Lifeboats, property and equipment 34.9 20.5 29.0 14.2 98.6 94.3
Lifeguard rescue 15.2 1.4 3.7 3.4 23.7 22.2
International 1.0 – 1.7 0.4 3.1 2.9
Water safety, education and awareness 4.1 0.1 1.4 1.0 6.6 7.7
Support 16.2 2.7 14.3 (33.2) – –
Total 2023 110.9 27.9 103.8 – 242.6 233.0
Total 2022 103.0 26.8 103.2 –
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Support costs are allocated to relevant categories based on their percentage share of overall direct costs. Support costs are not allocated to trading activities as this is managed through the Intercompany charge shown in Note 2.

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Governance General Finance Human Information Total Total
admin resource technology 2023 2022
£M £M £M £M £M £M £M
Legacies and donations 0.1 1.2 0.7 1.2 3.3 6.5 6.2
Lifeboat service 0.1 1.5 0.7 1.5 3.9 7.7 6.9
Lifeboats, property and equipment 0.2 2.7 1.5 2.7 7.1 14.2 13.0
Lifeguard rescue 0.1 0.6 0.4 0.6 1.7 3.4 3.1
International – 0.1 – 0.1 0.2 0.4 0.4
Water safety, education and awareness – 0.2 0.1 0.2 0.5 1.0 1.1
Total 2023 0.5 6.3 3.4 6.3 16.7 33.2 30.7
Total 2022 0.6 6.2 2.8 6.1 15.0
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A significant element of the increase in support costs relates to the Mainstay project of £2.3M (2022: £1.6M), which is upgrading our current enterprise-wide software to a newer version, as Microsoft will no longer support the version we have. Governance includes audit costs (both internal and external), the AGM and committee costs. Recurring audit fees of £175,940 (2022: £115,375), fees for gambling commission returns of £2,970 (2022: £2,750) and tax fees of £Nil (2022: £6,730) were payable to the external auditor.

RNLI ANNUAL REPORT 59 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

Freehold £M Leasehold £M Total £M 6. FIXED ASSETS a) Tangible assets The net book amounts include the following property: Cumulative impairment costs to date were £1.8M (2022: £2.7M). In 2023, £0.9M of impaired assets were disposed of. Assets under construction £M Lifeboats £M Lifeboat stations and shoreworks £M Launch and recovery equipment £M Depots, offces and training facilities £M Computer equipment, plant and vehicles £M Total £M Cost At 1January2023 37.7 359.4 318.4 64.4 99.9 80.7 960.5 Additions 33.0 – – – 0.5 0.9 34.4 Transfers (25.5) 8.4 14.1 1.9 – 1.1 – Disposals – (3.6) (2.1) (0.5) (0.3) (1.0) (7.5) At 31 December 2023 45.2 364.2 330.4 65.8 100.1 81.7 987.4 Depreciation and impairment At 1January2023 – 247.9 113.3 39.4 29.8 65.6 496.0 Charge for theyear – 7.3 7.5 3.9 1.7 4.2 24.6 Disposals – (3.5) (1.8) (0.5) (0.2) (1.0) (7.0) At 31 December 2023 251.7 119.0 42.8 31.3 68.8 513.6 Net book amount At 31 December 2023 45.2 112.5 211.4 23.0 68.8 12.9 473.8 At 31 December 2022 37.7 111.5 205.1 25.0 70.1 15.1 464.5	Freehold £M Leasehold £M Total £M 6. FIXED ASSETS a) Tangible assets The net book amounts include the following property: Cumulative impairment costs to date were £1.8M (2022: £2.7M). In 2023, £0.9M of impaired assets were disposed of. Assets under construction £M Lifeboats £M Lifeboat stations and shoreworks £M Launch and recovery equipment £M Depots, offces and training facilities £M Computer equipment, plant and vehicles £M Total £M Cost At 1January2023 37.7 359.4 318.4 64.4 99.9 80.7 960.5 Additions 33.0 – – – 0.5 0.9 34.4 Transfers (25.5) 8.4 14.1 1.9 – 1.1 – Disposals – (3.6) (2.1) (0.5) (0.3) (1.0) (7.5) At 31 December 2023 45.2 364.2 330.4 65.8 100.1 81.7 987.4 Depreciation and impairment At 1January2023 – 247.9 113.3 39.4 29.8 65.6 496.0 Charge for theyear – 7.3 7.5 3.9 1.7 4.2 24.6 Disposals – (3.5) (1.8) (0.5) (0.2) (1.0) (7.0) At 31 December 2023 251.7 119.0 42.8 31.3 68.8 513.6 Net book amount At 31 December 2023 45.2 112.5 211.4 23.0 68.8 12.9 473.8 At 31 December 2022 37.7 111.5 205.1 25.0 70.1 15.1 464.5	Freehold £M Leasehold £M Total £M 6. FIXED ASSETS a) Tangible assets The net book amounts include the following property: Cumulative impairment costs to date were £1.8M (2022: £2.7M). In 2023, £0.9M of impaired assets were disposed of. Assets under construction £M Lifeboats £M Lifeboat stations and shoreworks £M Launch and recovery equipment £M Depots, offces and training facilities £M Computer equipment, plant and vehicles £M Total £M Cost At 1January2023 37.7 359.4 318.4 64.4 99.9 80.7 960.5 Additions 33.0 – – – 0.5 0.9 34.4 Transfers (25.5) 8.4 14.1 1.9 – 1.1 – Disposals – (3.6) (2.1) (0.5) (0.3) (1.0) (7.5) At 31 December 2023 45.2 364.2 330.4 65.8 100.1 81.7 987.4 Depreciation and impairment At 1January2023 – 247.9 113.3 39.4 29.8 65.6 496.0 Charge for theyear – 7.3 7.5 3.9 1.7 4.2 24.6 Disposals – (3.5) (1.8) (0.5) (0.2) (1.0) (7.0) At 31 December 2023 251.7 119.0 42.8 31.3 68.8 513.6 Net book amount At 31 December 2023 45.2 112.5 211.4 23.0 68.8 12.9 473.8 At 31 December 2022 37.7 111.5 205.1 25.0 70.1 15.1 464.5	Freehold £M Leasehold £M Total £M 6. FIXED ASSETS a) Tangible assets The net book amounts include the following property: Cumulative impairment costs to date were £1.8M (2022: £2.7M). In 2023, £0.9M of impaired assets were disposed of. Assets under construction £M Lifeboats £M Lifeboat stations and shoreworks £M Launch and recovery equipment £M Depots, offces and training facilities £M Computer equipment, plant and vehicles £M Total £M Cost At 1January2023 37.7 359.4 318.4 64.4 99.9 80.7 960.5 Additions 33.0 – – – 0.5 0.9 34.4 Transfers (25.5) 8.4 14.1 1.9 – 1.1 – Disposals – (3.6) (2.1) (0.5) (0.3) (1.0) (7.5) At 31 December 2023 45.2 364.2 330.4 65.8 100.1 81.7 987.4 Depreciation and impairment At 1January2023 – 247.9 113.3 39.4 29.8 65.6 496.0 Charge for theyear – 7.3 7.5 3.9 1.7 4.2 24.6 Disposals – (3.5) (1.8) (0.5) (0.2) (1.0) (7.0) At 31 December 2023 251.7 119.0 42.8 31.3 68.8 513.6 Net book amount At 31 December 2023 45.2 112.5 211.4 23.0 68.8 12.9 473.8 At 31 December 2022 37.7 111.5 205.1 25.0 70.1 15.1 464.5	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost	b) Intangible assets Computer software £M Goodwill £M Total £M Cost
					Computer software £M	Goodwill £M		Total £M
				Cost
				At 1January2023	21.9	0.2		22.1		Assetpurchases			Depreciation/amortisation charge
				Additions	–	–		–		£M	Allocated £M	Total £M	£M	Allocated £M	Total £M
				Transfers	–	–		–
				Disposals	–	–		–	Expenditure
				At 31 December 2023	21.9	0.2		22.1	Lifeboat service	2.0	–	2.0	2.0	0.6	2.6
				Depreciation and impairment					Lifeboats, propertyand equipment	31.5	(0.2)	31.3	20.5	1.2	21.7
				At 1January2023	11.2	–		11.2	Lifeguard rescue	0.5	–	0.5	1.4	0.3	1.7
				Charge for theyear	3.2	0.1		3.3	International	–	–	–	–	–	–
				Disposals	–	–		–	Water safety,education and awareness	–	–	–	0.1	0.1	0.2
				At 31 December 2023	14.4	0.1		14.5	Legacies and donations	0.7	(0.1)	0.6	1.1	0.5	1.6
				Net book amount					Tradingactivities	–	–	–	0.1	–	0.1
				At 31 December 2023	7.5	0.1		7.6	Support	(0.3)	0.3	–	2.7	(2.7)	–
				At 31 December 2022	10.7	0.2		10.9	Total	34.4	–	34.4	27.9	–	27.9
				c) Subsidiary company assets The consolidated schedule of fxed assets includes assets owned by subsidiary companies with the following net book amounts: 2023 £M 2022 £M Assets under construction 0.1 – Lifeboats 0.1 0.1 Computer equipment, plant and vehicles 0.9 1.1 Depots,offces and trainingfacilities 1.1 1.2 Total 2.2 2.4 Goodwill arose on the acquisition of Clayton Engineering Limited.
						2023 £M	2022 £M
	Freehold £M	Leasehold £M	Total £M	Assets under construction		0.1	–
				Lifeboats		0.1	0.1
Lifeboat stations and shoreworks	64.2	147.2	211.4	Computer equipment, plant and vehicles		0.9	1.1
Depots,offces and trainingfacilities	63.8	5.0	68.8	Depots,offces and trainingfacilities		1.1	1.2
At 31 December 2023	128.0	152.2	280.2	Total		2.2	2.4

RNLI ANNUAL REPORT 61 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

7. INVESTMENTS

The RNLI held no derivative instruments as at 31 December 2023 (2022: none). Several of the pooled investment funds held by the RNLI use derivative products within their portfolios to reduce market risk in line with their investment strategies.

All investments are basic financial instruments and are measured at fair values, except for investment in subsidiaries, which are held at cost, less any provision for impairment.

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General Restricted Permanent Expendable Total Total
Consolidated funds funds endowed endowed 2023 2022
funds funds
£M £M £M £M £M £M
a) Investment assets
Equities – 35.4 3.6 32.3 71.3 61.6
Absolute return funds 32.0 – – – 32.0 39.6
Fixed interest 41.5 56.2 – – 97.7 97.4
Property unit trusts – 7.6 7.4 6.9 21.9 22.9
Infrastructure – 0.8 8.8 10.9 20.5 19.2
Deposits and cash 8.8 4.0 – 0.1 12.9 30.1
Market value at 31 December 2023 82.3 104.0 19.8 50.2 256.3 270.8
b) Analysis of movement
Market value at 1 January 2023 96.8 108.9 19.2 45.9 270.8 307.7
Additions 1.7 18.9 0.6 1.0 22.2 32.7
Transfers 2.8 (2.8) – – – –
Disposals (14.6) (32.6) (0.6) (1.1) (48.9) (43.3)
Gains/(losses) on investments (4.4) 11.6 0.6 4.4 12.2 (26.3)
Market value at 31 December 2023 82.3 104.0 19.8 50.2 256.3 270.8
Original cost 76.3 111.3 18.7 46.1 252.4 283.4
c) Investment income
Equities 0.1 – – – 0.1 0.3
Absolute return funds 0.3 – – – 0.3 0.3
Fixed interest 1.3 1.3 – – 2.6 1.7
Property unit trusts – 1.4 – – 1.4 1.0
Infrastructure – – – – – –
Deposits and cash – 0.2 – – 0.2 –
Total 1.7 2.9 – – 4.6 3.3
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General Restricted Permanent Investment Total Total
funds funds endowed in 2023 2022
RNLI funds subsidiaries
£M £M £M £M £M £M
a) Investment assets
Equities – 35.5 3.6 – 39.1 34.4
Unlisted companies – – – 5.5 5.5 5.5
Absolute return funds 32.0 – – – 32.0 39.6
Fixed interest 41.4 56.2 – – 97.6 97.4
Property unit trusts – 7.6 7.4 – 15.0 15.6
Infrastructure – 0.8 8.8 – 9.6 8.8
Deposits and cash 8.9 3.9 – – 12.8 29.1
Market value at 31 December 2023 82.3 104.0 19.8 5.5 211.6 230.4
b) Analysis of movement
Market value at 1 January 2023 96.8 108.9 19.2 5.5 230.4 264.2
Additions 1.7 18.6 0.6 – 20.9 23.4
Transfers 2.8 (2.8) – – – –
Disposals (14.6) (32.3) (0.6) – (47.5) (33.3)
Gains/(losses) on investments (4.4) 11.6 0.6 – 7.8 (23.9)
Market value at 31 December 2023 82.3 104.0 19.8 5.5 211.6 230.4
Original cost 76.3 111.3 18.7 5.5 211.8 242.8
c) Investment income
Equities 0.1 – – – 0.1 0.3
Absolute return funds 0.3 – – – 0.3 0.3
Fixed interest 1.3 1.3 – – 2.6 1.7
Property unit trusts – 1.0 – – 1.0 0.6
Infrastructure – – – – – –
Deposits and cash – 0.2 – – 0.2 –
Total 1.7 2.5 – – 4.2 2.9
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Investment in subsidiaries comprises RNLI (Sales) Limited £1.5M (2022: £1.5M), RNLI College Limited £1.0M (2022: £1.0M) and Clayton Engineering Limited £3.0M (2022: £3.0M).

Roy Barker III in action: generations of Howth RNLI lifeboat volunteers have been saving lives in and around Dublin Bay for almost 200 years

RNLI ANNUAL REPORT 63 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

8. STOCKS

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Consolidated RNLI
2023 2022 2023 2022
£M £M £M £M
Operational stock 26.7 22.1 25.3 21.2
Gifts and souvenirs 3.7 2.9 – –
Total 30.4 25.0 25.3 21.2
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9. DEBTORS

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Consolidated RNLI
2023 2022 2023 2022
£M £M £M £M
Legacies receivable 52.7 41.6 52.7 41.6
Inter-company – – 1.8 1.3
debtors
Trade and other
1.9 2.4 1.7 1.8
debtors
VAT and Gift Aid
2.4 3.1 2.6 3.3
recoverable
Prepayments and
5.3 3.9 5.1 3.7
accrued income
Total 62.3 51.0 63.9 51.7
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A proportion of legacies receivable may be received after more than 1 year, but this figure cannot be determined with any accuracy due to the inherent uncertainty in the timing of legacy income receipt.

The estimated value of legacies notified but neither received nor included in income is £107.0M (2022: £92.7M).

10. CREDITORS AND PENSION LIABILITIES

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Consolidated RNLI
2023 2022 2023 2022
£M £M £M £M
Amounts falling due within 1 year
Trade creditors 8.3 11.9 7.1 9.9
Other creditors 1.2 1.9 1.2 1.9
Inter-company creditor – – 2.8 2.2
PAYE taxes and social security 2.2 2.2 2.1 2.0
Pension creditor 1.3 1.3 1.2 1.2
Dependants’ pensions liability 0.2 0.2 0.2 0.2
Accruals 5.8 4.7 4.9 4.1
Total 19.0 22.2 19.5 21.5
Amounts falling due after more than 1 year
Lease liability due 1–5 year – 0.6 – 0.6
Dependants’ pensions liability 2.7 3.1 2.7 3.1
Defined benefit pension liability 13.8 23.3 13.8 23.3
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The lease liability is a 4-year interest-free loan with Cisco, which commenced in July 2020, to pay for new telecommunications and infrastructure.

11. PENSION SCHEMES

The RNLI provides a number of pension schemes for its employees:

The RNLI 1983 Contributory Pension Scheme, a defined benefit scheme, was closed to new entrants from 1 January 2007 and closed to future benefit accrual on 30 September 2012, although benefits for active members accrued up to 30 September 2012 continue to be subject to any increases in pensionable pay.
The RNLI UK Group Personal Pension Plan is the main scheme for UK employees who joined the RNLI from 1 January 2007. It is a contract-based defined contribution scheme. Member retirement benefits are linked to the investment performance of contributions made.
The RNLI RoI Group Fusion Pension Plan is the main scheme for Republic of Ireland employees who joined the RNLI from 1 January 2012. It is a contract-based defined contribution scheme. Member retirement benefits are linked to the investment performance of contributions made.

In 2023, the RNLI paid contributions of £14.8M (2022: £13.5M) in respect of members of the defined contribution pension schemes. Details of the defined benefit scheme, produced in accordance with the requirements of section 28 of The Financial Reporting Standard 102 (FRS102), are disclosed below and cover both the RNLI 1983 Contributory Pension Scheme and the payments to certain dependants.

Dependants’ pensions are paid by the RNLI to dependants of former crew members who lost their lives on lifeboat service. The figures in this note have been calculated by a qualified independent actuary based on a full actuarial valuation of the pension scheme as at 31 December 2020 rolled forward to 31 December 2023 using summarised cash flow and membership details and a full actuarial valuation of the dependants’ pensions as at 31 December 2020 on the basis required by FRS102.

On this basis, the FRS102 accounting deficit for the defined on bond yields. These assets would not typically consist benefit pension scheme as at 31 December 2023 was £13.8M of 100% in corporate bonds. (2022: £23.3M) and £2.9M (2022: £3.3M) for the dependants’ The RNLI paid deficit reduction contributions of pensions. The FRS102 basis is a prescribed basis that requires the £9.1M in 2023 (2022: £8.7M), while for 2024 a total discount rate to be the rate of return on high-quality corporate payment of £5.1M has been agreed as part of the 2020 bonds with a duration equivalent to that of the liabilities. Triennial Valuation. Each year, the scheme actuary assesses the financial position The main financial assumptions used as at of the scheme for the formal actuarial valuation, allowing for an 31 December 2023 and the corresponding assumptions expected rate of return on all assets at the discount rate, based at 31 December 2022 and 31 December 2021 were:

on bond yields. These assets would not typically consist of 100% in corporate bonds.

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31/12/2023 31/12/2022 31/12/2021
% pa % pa % pa
Discount rate [†] 4.7 5.0 1.9
Rate of increase in salaries 4.0 4.0 4.1
Rate of increase in pensions in payment [‡] :
Post-1988 GMP increases (CPI capped at 3%) 2.3 2.4 2.5
Pre-1997 increases (RPI capped at 4%) 3.0 3.0 3.1
1997–2005 increases (RPI capped at 4%, CPI 5%) 3.1 3.2 3.2
2005–07 increases (RPI capped at 5%, CPI 2.5%) 2.9 3.0 2.9
Post-2007 increases (CPI capped at 2.5%) 2.1 2.1 2.1
Rate of increase in deferred pensions:
Pre-April 2009 accrual (RPI capped at 4%) 3.0 3.1 3.3
Post-April 2009 accrual (CPI capped at 2.5%) 2.8 3.0 3.3
Rate of retail price inflation (RPI) [†] 3.4 3.5 3.6
Rate of consumer price inflation (CPI) 3.1 3.1 3.2
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†Represents the weighted average discount rate and inflation rate of the respective curves at the scheme’s average duration.

In excess of the Guaranteed Minimum Pension (GMP) element. Life expectancy is based on the assumptions provided by our qualified independent actuaries.

RNLI ANNUAL REPORT 65 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

11. PENSION SCHEMES (CONTINUED)

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31/12/2023 31/12/2022 31/12/2021
Assumes life expectancy on retirement age 65 of:
Years Years Years
Retiring today – males 21.8 22.3 21.6
Retiring today – females 24.3 24.8 24.1
Retiring in 15 years – males 22.9 23.5 22.7
Retiring in 15 years – females 25.6 26.1 25.4
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If the discount rate reduced by 0.5%, pension liabilities would increase by approximately 7%. If price inflation (RPI) reduced by 0.5% the impact would be a decrease in pension liabilities of approximately 4% and if pensionable salary reduced by 0.5% the impact would be a decrease of less than 1%.

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31/12/2023 31/12/2022 31/12/2021
Expected rate Market value Expected rate Market value Expected rate Market value
of return of assets of return of assets of return of assets
% pa £M % pa £M % pa £M
Equity securities 14.4 31.4 57.7
Debt securities 19.2 44.5 94.2
Real estate/property – 29.8 41.7
Diversified growth 122.3 39.7 50.8
Cash and net current assets 9.6 13.5 2.3
Liability-driven investment 89.8 83.0 135.8
Total 4.7 255.3 5.0 241.9 1.9 382.5
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b) Changes in the present value of the defined benefit obligation are as follows:

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2023 2022
Pension Dependants’ Total Pension Dependants’ Total
scheme pensions scheme pensions
£M £M £M £M £M £M
Opening defined benefit obligation 265.2 3.3 268.5 416.9 5.0 421.9
Interest cost 12.9 0.2 13.1 7.8 0.1 7.9
Actuarial loss/(gain) 4.2 (0.4) 3.8 (147.1) (1.6) (148.7)
Benefits paid (13.2) (0.2) (13.4) (12.4) (0.2) (12.6)
Defined benefit obligation at the year end 269.1 2.9 272.0 265.2 3.3 268.5
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c) Changes in the fair value of the scheme assets are as follows:

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2023 2022
Pension Dependants’ Total Pension Dependants’ Total
scheme pensions scheme pensions
£M £M £M £M £M £M
Opening fair value of scheme assets 241.9 – 241.9 382.5 – 382.5
Interest income on scheme assets 11.9 – 11.9 7.2 – 7.2
Return on scheme assets greater than/(less than) discount rate 5.6 – 5.6 (144.1) – (144.1)
Employer contributions 9.1 – 9.1 8.7 – 8.7
Benefits paid (13.2) – (13.2) (12.4) – (12.4)
Fair value of scheme assets at the year end 255.3 – 255.3 241.9 – 241.9
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The actual return on scheme assets was a gain of £17.5M (2022: a loss of £136.9M).

d) The amounts included within the Statement of Financial Activities are as follows:

Atlantic waves: lifeguards Jean-Louis Angoumare and Theo Cabot patrol one of Jersey’s best-loved surfing spots

a) The following amounts were measured in accordance with the requirements of FRS102:

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2023 2022
Pension Dependants’ Total Pension Dependants’ Total
scheme pensions scheme pensions
£M £M £M £M £M £M
Total fair market value of assets 255.3 – 255.3 241.9 – 241.9
Present value of liabilities (269.1) (2.9) (272.0) (265.2) (3.3) (268.5)
Net pension liability (13.8) (2.9) (16.7) (23.3) (3.3) (26.6)
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2023 2022
Pension Dependants’ Total Pension Dependants’ Total
scheme pensions scheme pensions
£M £M £M £M £M £M
Net interest on net defined benefit liability 1.0 0.2 1.2 0.6 0.1 0.7
Total amount charged within net income/(expenditure) 1.0 0.2 1.2 0.6 0.1 0.7
Actuarial loss/(gain) 4.2 (0.4) 3.8 (147.1) (1.6) (148.7)
Return on scheme assets (greater than)/less than discount rate (5.6) – (5.6) 144.1 – 144.1
Remeasurement effects recognised in overall funds movement (1.4) (0.4) (1.8) (3.0) (1.6) (4.6)
Total amount (credited)/charged to the Statement of Financial Activities (0.4) (0.2) (0.6) (2.4) (1.5) (3.9)
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RNLI ANNUAL REPORT 67 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

12. TOTAL FUNDS ANALYSIS

a) Consolidated balance sheet – analysis of funds 2023 summary

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Unrestricted funds Restricted Endowed Total
funds funds 2023
General Designated Fixed asset
funds funds funds
£M £M £M £M £M £M
Fixed assets – – 481.4 – – 481.4
Investments 77.1 5.2 – 104.0 70.0 256.3
Net current assets 63.6 – – 11.5 – 75.1
Creditors falling due after more than 1 year (2.7) – – – – (2.7)
Defined benefit pension liability (13.8) – – – – (13.8)
Total 124.2 5.2 481.4 115.5 70.0 796.3
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c) Restricted funds – analysis of major funds

This table details all restricted funds by purpose. The transfers represent either a transfer to a fixed asset fund, where the fund is for the purpose of asset construction and the asset is completed, or a previous year adjustment, where a donor or legator has added a restriction at a later date or the restriction has been subject to negotiation.

The format of the note has been enhanced this year to provide the reader with a better understanding of the RNLI’s restricted fund structure. Previously, all restricted funds over £2M were listed with a focus on location, thereby limiting the analysis. In 2023, as there are over 1,000 of these restricted funds, they have been grouped by expenditure category. This provides the reader with an appreciation of how restricted funds are allocated.

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Opening Income and Expenditure Transfers Closing
balance Investment 2023 2023 balance
Fund
2023 gains 2023 2023
£M £M £M £M £M
Lifeboat station running costs 53.8 37.0 (29.5) (1.5) 59.8
Crew kit and training 0.6 1.0 (1.0) – 0.6
Lifeboat refit 0.3 – (0.3) – –
Lifeboat construction 30.7 5.9 – (15.3) 21.3
Launch equipment construction 2.7 1.3 – (3.1) 0.9
Lifeboat station construction 6.7 2.6 – (1.0) 8.3
Life-boatmen's Benevolent Fund 2.2 0.7 (0.1) – 2.8
Legacy debtor 6.7 4.7 – – 11.4
Restricted other 11.9 2.8 (3.2) (1.1) 10.4
Total restricted funds 115.6 56.0 (34.1) (22.0) 115.5
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b) Endowed funds – analysis of major funds

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Opening Income Expenditure Investment Transfers Closing
balance 2023 2023 gains 2023 2023 balance
Name of fund Purpose of fund
2023 2023
£M £M £M £M £M £M
The advancement of saving lives at sea
RNLI Lifesaving Endowment – expendable by establishing, building and investing an 45.9 – – 4.4 (0.1) 50.2
endowment fund
Roy Barker – permanent All-weather lifeboat construction 12.3 – – 0.4 – 12.7
Morrell – permanent Dungeness Lifeboat Station – general 5.6 – – 0.1 – 5.7
Other endowed funds – permanent 1.3 – – 0.1 – 1.4
Total endowed funds 65.1 – – 5.0 (0.1) 70.0
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d) Designated funds – analysis of funds

Designated funds are set aside at the discretion of the Trustees. The Special Projects Fund continues to be held in 2023 to ensure funds are available where significant financial assurances have been made to third parties.

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Opening Income and Expenditure Transfers Closing
balance investment 2023 2023 balance
Name of fund Purpose of fund 2023 gains 2023
2023
£M £M £M £M £M
To ensure that where significant financial assurances
Special Projects Fund have been made to third parties, funds are available 5.5 – – (0.3) 5.2
for the purpose. For 2023, this is entirely for the
project at Weston-super-Mare
Total designated funds 5.5 – – (0.3) 5.2
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RNLI ANNUAL REPORT 69 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

13. LINKED CHARITIES

The RNLI has several linked charities that have been established over the years, separated from the charity for a variety of reasons, due to the nature of the fund or the original terms of the legacy or donation. All of the funds of these charities are consolidated into the RNLI’s accounts and included within restricted funds. The current active linked charities with a funds balance over £0.1M as at 31 December 2023 are as follows:

14. CAPITAL COMMITMENTS

At 31 December 2023, approved and contracted capital commitments amounted to £25.0M (2022: £30.2M) which will be funded from designated, restricted and general funds.

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Opening Income and Expenditure Transfers Closing
balance investment 2023 2023 balance
2023 gains 2023
Donor name Purpose of fund 2023
£M £M £M £M £M
Life-boatmen's Benevolent Fund Grants for distressed past or present crew members 2.2 0.7 (0.1) – 2.8
Langstreth Culliford Trust Grants for dependants of lifesavers 0.3 – – – 0.3
John William Archer All-weather lifeboat construction 0.2 – – – 0.2
Charles Carr Ashley Lifeboat maintenance and support for crew 0.1 – – – 0.1
Anna Stock Memorial Fund Col Stock lifeboat – construction and maintenance 0.1 – – – 0.1
Total of linked charities 2.9 0.7 (0.1) – 3.5
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The RNLI also has other active linked charities with a fund balance of less than £0.1M, or nil, and these are as follows: John Jones Rowland, Isabella Irwin, James Michael Bower Gift, Mrs Alice Gottwald, Ralph Glister Award, Louise George Anderson Dunn, Mrs Sadie Hughes, William Stephen Mellis, Gorleston Volunteer Lifeboat Association, Miss Maud Smith’s Reward, Salcombe Lifeboat Disaster Relief Fund, Miss Annie Gertrude Shayler, The George Nichol Charity for the RNLI and RNLI Heritage Collection Trust 2012.

15. OPERATING LEASE COMMITMENTS

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Land and buildings Other
At 31 December the ageing of total minimum 2023 2022 2023 2022
lease payments was as follows: £M £M £M £M
Payable within 1 year 1.2 1.1 1.4 1.3
Payable between 1 and 5 years 2.3 1.9 0.9 1.4
Payable after more than 5 years 9.2 9.1 0.1 –
Total 12.7 12.1 2.4 2.7
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Certain property leases are for an indefinite period, with the RNLI having the right to early termination should the need arise. In calculating minimum lease payments for these leases, a 50-year duration has been assumed.

16. 2022 COMPARATIVES – FUNDS AND LINKED CHARITIES

a) Consolidated statement of financial activities – previous year comparatives

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Unrestricted funds Restricted Endowed Total
General Designated Fixed asset funds funds 2022
funds funds funds
£M £M £M £M £M £M
Income and endowments from:
Legacies 110.6 – – 30.2 – 140.8
Donations 52.8 – – 13.7 – 66.5
Trading activities 16.3 – – – – 16.3
Investments 1.0 – – 2.3 – 3.3
Charitable activities 4.4 – – – – 4.4
Other income 0.5 – – – – 0.5
Total income and endowments 185.6 – – 46.2 – 231.8
Expenditure on:
Legacies and donations (43.4) – (1.2) – – (44.6)
Trading activities (10.8) – (0.1) – – (10.9)
Investment management (0.2) – – (0.1) – (0.3)
Raising funds (54.4) – (1.3) (0.1) – (55.8)
Lifeboat service (32.3) – (2.6) (15.2) – (50.1)
Lifeboats, property and equipment (56.9) – (21.2) (16.2) – (94.3)
Lifeboat rescue (89.2) – (23.8) (31.4) – (144.4)
Lifeguard rescue (20.4) – (1.6) (0.2) – (22.2)
International (1.5) – – (1.4) – (2.9)
Water safety, education and awareness (7.3) – (0.1) (0.3) – (7.7)
Charitable activities (118.4) – (25.5) (33.3) – (177.2)
Total expenditure (172.8) – (26.8) (33.4) – (233.0)
Net loss on investments (13.1) – – (11.3) (1.9) (26.3)
Net (expenditure)/income (0.3) – (26.8) 1.5 (1.9) (27.5)
Transfers between funds 12.9 (15.6) 36.2 (33.4) (0.1) –
Actuarial gain on pension schemes 4.6 – – – – 4.6
Net movement in funds 17.2 (15.6) 9.4 (31.9) (2.0) (22.9)
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Calm hands on deck: whether it’s performing casualty care onboard a lifeboat or coping with the after-effects of a traumatic rescue, RNLI Medical Director Aroop Mozumder uses his experience as a military doctor to support our volunteers treating injured and distressed people at sea

RNLI ANNUAL REPORT 71 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

16. 2022 COMPARATIVES – FUNDS AND LINKED CHARITIES (CONTINUED)

b) RNLI statement of financial activities – previous year comparatives

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Unrestricted funds Restricted Endowed Total
General Designated Fixed asset funds funds 2022
funds funds funds
£M £M £M £M £M £M
Income and endowments from:
Legacies 110.6 – – 30.2 – 140.8
Donations 52.8 – – 13.7 – 66.5
Donations from subsidiary companies 5.6 – – 0.5 – 6.1
Investments 1.0 – – 1.9 – 2.9
Charitable activities 4.4 – – – – 4.4
Other income 0.5 – – – – 0.5
Total income and endowments 174.9 – – 46.3 – 221.2
Expenditure on:
Legacies and donations (43.4) – (1.2) – – (44.6)
Trading activities – – – – – –
Investment management (0.2) – – (0.1) – (0.3)
Raising funds (43.6) – (1.2) (0.1) – (44.9)
Lifeboat service (32.3) – (2.6) (15.2) – (50.1)
Lifeboats, property and equipment (57.0) – (21.2) (16.2) – (94.4)
Lifeboat rescue (89.3) – (23.8) (31.4) – (144.5)
Lifeguard rescue (20.4) – (1.6) (0.2) – (22.2)
International (1.5) – – (1.4) – (2.9)
Water safety, education and awareness (7.3) – (0.1) (0.3) – (7.7)
Donation to CIO – – – – – –
Charitable activities (118.5) – (25.5) (33.3) – (177.3)
Total expenditure (162.1) – (26.7) (33.4) – (222.2)
Net (loss)/gain on investments (13.1) – – (11.3) 0.5 (23.9)
Net (expenditure)/income (0.3) – (26.7) 1.6 0.5 (24.9)
Transfers between funds 13.1 (15.6) 36.0 (33.5) – –
Actuarial gain on pension schemes 4.6 – – – – 4.6
Net movement in funds 17.4 (15.6) 9.3 (31.9) 0.5 (20.3)
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c) Reconciliation of net funds – previous year comparatives
2021 Cashflows Non-cash 2022
movements
£M £M £M £M
Cash 2.7 (0.4) – 2.3
Loans falling due within 1 year (1.1) 1.1 (1.1) (1.1)
Loans falling due after more than 1 year (1.7) – 1.1 (0.6)
Total (0.1) 0.7 – 0.6
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d) Total resources expended – previous year comparatives
Staff Depreciation/ Other Other Total
costs amortisation direct allocated 2022
costs costs
£M £M £M £M £M
Legacies and donations 16.1 0.7 21.6 6.2 44.6
Trading activities 1.1 0.1 9.7 – 10.9
Investment management – – 0.3 – 0.3
Lifeboat service 18.7 2.1 22.4 6.9 50.1
Lifeboats, property and equipment 32.8 20.2 28.3 13.0 94.3
Lifeguard rescue 14.2 1.4 3.5 3.1 22.2
International 0.8 – 1.7 0.4 2.9
Water safety, education and awareness 4.5 – 2.1 1.1 7.7
Support 14.8 2.3 13.6 (30.7) –
Total 103.0 26.8 103.2 – 233.0
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Prime mission: Trainee Crew Member Karen Arnold helped with an urgent medical evacuation in 2023 –

RNLI ANNUAL REPORT 73 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

16. 2022 COMPARATIVES – FUNDS AND LINKED CHARITIES (CONTINUED)

Support costs are allocated to relevant categories based on their percentage share of overall direct costs:

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Governance General admin Finance Human resource Information Total
technology 2022
£M £M £M £M £M £M
Legacies and donations 0.1 1.3 0.6 1.2 3.0 6.2
Lifeboat service 0.1 1.4 0.6 1.4 3.4 6.9
Lifeboats, property and equipment 0.3 2.6 1.2 2.6 6.3 13.0
Lifeguard rescue 0.1 0.6 0.3 0.6 1.5 3.1
International – 0.1 – 0.1 0.2 0.4
Water safety, education and awareness – 0.2 0.1 0.2 0.6 1.1
Total 0.6 6.2 2.8 6.1 15.0 30.7
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e) Consolidated balance sheet – analysis of funds 2022 summary

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Unrestricted funds Restricted Endowed Total
General Designated Fixed asset funds funds 2022
funds funds funds
£M £M £M £M £M £M
Fixed assets – – 475.4 – – 475.4
Investments 91.3 5.5 – 108.9 65.1 270.8
Net current assets 49.4 – – 6.7 – 56.1
Creditors falling due after more than 1 year (3.7) – – – – (3.7)
Defined benefit pension liability (23.3) – – – – (23.3)
Total 113.7 5.5 475.4 115.6 65.1 775.3
f) Endowed funds – analysis of major funds
Opening Income Expenditure Investment Transfers Closing
Name of fund Purpose of fund balance 2022 2022 2022 gains 2022 2022 balance 2022
£M £M £M £M £M £M
The advancement of saving lives at sea by
RNLI Lifesaving Endowment – expendable establishing, building and investing an 48.4 – – (2.4) (0.1) 45.9
endowment fund
Roy Barker – permanent All-weather lifeboat construction 12.0 – – 0.3 – 12.3
Morrell – permanent Dungeness Lifeboat Station – general 5.4 – – 0.2 – 5.6
Other endowed funds – permanent 1.3 – – – – 1.3
Total endowed funds 67.1 – – (1.9) (0.1) 65.1
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Rough weather training: Dunmore East lifesavers put their Shannon class lifeboat through her paces. Their crew mates involved in 2020's Lily B rescue received prestigious

RNLI ANNUAL REPORT 75 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

16. 2022 COMPARATIVES – FUNDS AND LINKED CHARITIES (CONTINUED)

g) Analysis of 2022 restricted funds in 2023 format

h) Designated funds – analysis of funds

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Fund Opening Income and Expenditure Transfers Closing Name of fund Purpose of fund Opening Income and Expenditure Transfers Closing
balance investment 2022 2022 balance balance investment 2022 2022 balance
2022 (losses) 2022 2022 gains 2022 2022
2022 £M £M £M £M £M
£M £M £M £M £M
To ensure that the urgent
Lifeboat station running costs 52.9 28.1 (27.2) – 53.8 Pandemic Fund projects that have been delayed by the pandemic 12.4 – – (12.4) –
Crew kit and have funds available to
training 0.6 1.1 (1.1) – 0.6 be completed
Lifeboat refit – 0.3 – – 0.3 To ensure that where
significant financial
Lifeboat 39.8 (0.9) – (8.2) 30.7 assurances have been
construction Special Projects Fund made to third parties, 8.7 – – (3.2) 5.5
Launch funds are available for the
equipment 4.3 (0.2) – (1.4) 2.7 purpose. For 2021, this is
construction entirely for the project at
Lifeboat station Weston-super-Mare
construction 12.7 9.1 – (15.1) 6.7 Total designated funds 21.1 – – (15.6) 5.5
Life-boatmen's
Benevolent 2.5 (0.2) (0.1) – 2.2 i) Linked charities
Fund
Legacy debtor 15.2 (8.5) – – 6.7 Donor name Purpose of fund Opening balance Income 2022 Expenditure 2022 Transfers 2022 balance Closing
Restricted other 19.5 6.1 (5.0) (8.7) 11.9 2022 2022
£M £M £M £M £M
Total restricted
funds 147.5 34.9 (33.4) (33.4) 115.6 Life-boatmen’s Grants for distressed past 2.6 (0.2) (0.2) – 2.2
Benevolent Fund or present crew members
Langstreth Culliford Grants for dependants 0.3 – – – 0.3
Trust of lifesavers
All-weather lifeboat
John William Archer 0.2 – – – 0.2
construction
Lifeboat maintenance
Charles Carr Ashley 0.1 – – – 0.1
and support for crew
Col Stock lifeboat
Anna Stock
– construction and 0.1 – – – 0.1
Memorial Fund
maintenance
Total of linked charities 3.3 (0.2) (0.2) – 2.9
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j) Financial review reconciliation

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SoFA Asset Asset Asset Total
purchases depreciation/ disposal 2022
amortisation
£M £M £M £M £M
Charitable spend
Lifeboat service 50.1 0.9 (2.6) – 48.4
Lifeboats, property and equipment 94.3 34.0 (21.2) – 107.1
Lifeboat rescue 144.4 34.9 (23.8) – 155.5
Lifeguard rescue 22.2 1.1 (1.6) – 21.7
International 2.9 – – – 2.9
Water safety, education and awareness 7.7 0.3 (0.1) – 7.9
Total charitable spend 177.2 36.3 (25.5) – 188.0
Income available for charitable spend
Legacies 140.8 – – – 140.8
Donation 66.5 – – – 66.5
Trading (net) 5.4 (0.1) 0.1 – 5.4
Charitable trading 4.4 – – – 4.4
Investments (net) 3.0 – – – 3.0
Other 0.5 – – 1.0 1.5
Total income available for charitable spend 220.6 (0.1) 0.1 1.0 221.6
Cost of generating income (44.6) (0.8) 1.2 – (44.2)
Net income available for charitable spend 176.0 (0.9) 1.3 1.0 177.4
Operating surplus/(deficit) (1.2) (37.2) 26.8 1.0 (10.6)
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Throwing a lifeline: RNLI water safety volunteers delivered waterside responder training to Port of London Authority staff in 2023. The course included dealing with cold water shock and practical sessions on using throwbags to save casualties in the water

RNLI ANNUAL REPORT 77 AND ACCOUNTS 2023

NOTES TO THE ACCOUNTS

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17. FINANCIAL REVIEW RECONCILIATION 18. GOVERNMENT GRANTS
–
The financial analysis in the financial review (pages 26 27) has been revised to show the total 2023 2022
charitable spend, including that spent on asset purchases, together with the cashflow effect £M £M
of this spend. This note shows the reconciliation between the financial statements and this
International grants 0.3 0.4
analysis. The main difference is to reflect the actual spend on fixed assets, for example lifeboats
Total 0.3 0.4
and lifeboat stations, as opposed to the depreciation charge.
SoFA Asset Asset Asset Total The RNLI does not normally seek funding from government,
purchases depreciation/ sales 2023 to ensure that we retain independence in all that we do to
amortisation save lives at sea. However, there are exceptions made where
£M £M £M £M £M such independence is not compromised.
Charitable spend During 2023, the RNLI received funding from the
Lifeboat service 53.6 – (2.6) – 51.0 Foreign, Commonwealth and Development Office of the
Lifeboats, property and equipment 98.6 31.3 (21.7) – 108.2 UK Government, for the total amount of £107,280, (2022:
Lifeboat rescue 152.2 31.3 (24.3) – 159.2 £286,907), and from the Isle of Man Government for
Lifeguard rescue 23.7 0.5 (1.7) – 22.5 the amount of £50,942. These funds were spent entirely
on the project Creches for Bangladesh. This aims to
International 3.1 – – – 3.1 reduce drowning mortality and improve early childhood
Water safety, education and awareness 6.6 – (0.2) – 6.4 development of children aged 1–4 in rural communities
Total charitable spend 185.6 31.8 (26.2) – 191.2 of Barishal Division, under UK Aid Match Grant Reference
Income available for charitable spend number: 205210-301 and Isle of Man Grant Reference
Legacies 156.9 – – – 156.9 number: SG00321.
Donation 65.7 – – – 65.7 Funding of €125,000 was also received from the
Department of Foreign Affairs, Government of Ireland for the
Trading (net) 4.4 (2.0) 0.1 – 2.5 project Preventing drowning in artisanal fishing communities
Charitable trading 4.9 – – – 4.9 of Lake Victoria, Tanzania, under grant Ref: CSF 12-22.
Investments (net) 4.4 – – – 4.4
Other 1.2 – – 0.5 1.7
Total income available for charitable spend 237.5 (2.0) 0.1 0.5 236.1
19. RELATED PARTIES
Cost of generating income (44.9) (0.6) 1.6 – (43.9)
The group had no related party transactions in the year other
Net income available for charitable spend 192.6 (2.6) 1.7 0.5 192.2 than the transactions between group entities which are
disclosed in Note 2.
Operating surplus/(deficit) 7.0 (34.4) 27.9 0.5 1.0 Details of transactions with Trustees and the Executive
Team are disclosed in Notes 3 and 4.
Saving lives at Bridlington since 1805:
lifesavers tackle rough seas onboard Asset purchases comprise fixed asset additions shown in Note 6. Asset sales comprise proceeds of disposal
D class lifeboat Ernie Wellings of £1.2M less profit on disposal of £0.7M. Depreciation and amortisation are also shown in Note 6.
----- End of picture text -----

Asset purchases comprise fixed asset additions shown in Note 6. Asset sales comprise proceeds of disposal of £1.2M less profit on disposal of £0.7M. Depreciation and amortisation are also shown in Note 6.

RNLI ANNUAL REPORT 79 AND ACCOUNTS 2023

RNLI OFFICERS AND CONTACTS

PRESIDENT TRUSTEE BOARD

Fiona Fell Jim Islam Dr Philip Goodwin HRH The Duke of Kent KGKG DEPUTY CHAIR TREASURER Dr Goodwin has been chief Fiona has been a nonA qualified actuary, Jim executive of Voluntary TRUSTEE BOARD executive director for the has extensive board-level Service Overseas (VSO) past 20 years, including in the leadership experience in since 2015. He has a Janet Legrand charitable and not-for-profit sectors. Elected financial services. He was elected to the background in international development OBE KC (Hon) to the RNLI Council in 2012 and appointed a RNLI Council in 2021 and was appointed with a PhD in environmental policy and CHAIR Trustee in 2020, she became Deputy Chair in to the Finance Committee as Treasurer planning. Dr Goodwin was elected to the The first woman 2022 and is a member of the Operations and Designate in the same year. In 2022, he RNLI Council and appointed a Trustee senior partner of a Property Committees. became RNLI Treasurer and was appointed in 2018. He is also a member of the global law firm, Janet was appointed an to the Remuneration Committee. Membership Nomination Committee. honorary Queen’s Counsel in 2018 for ‘A shared wish to save lives and to prevent her contribution to the legal profession. drowning is deeply motivating and draws ‘I feel privileged to be part of the RNLI, ‘The poorest countries globally account She is former chair of The Children’s us together.’ an Institution that reflects the best values for 90% of drowning deaths. I’m delighted Society, current Senior Lay Member of of our communities, with courageous to be working with the RNLI to help bring Court at the University of Edinburgh and inspiring people achieving about change.’ and an honorary fellow at Trinity Hall, marvellous feats.’ Cambridge. She was appointed RNLI Chair in January 2023 and awarded an OBE in 2024. Denis Woulfe OBEOBE

HRH The Duke of Kent KGKG

OBE in 2024. Denis Woulfe OBEOBE Roger Fairhead Andy Jordan SENIOR INDEPENDENT TRUSTEE Roger is a chartered Andy has extensive ‘The RNLI has a remarkable 200-year Denis is a business advisor, accountant with over maritime experience after history and I feel honoured and excited non-executive director and 25 years’ experience in a 30-year career in the to be able to play a role in guiding formerly a vice chair at international finance and Royal Navy, both at sea on this wonderful charity into the start Deloitte LLP. Denis was appointed a Trustee people management. He joined the RNLI operations and ashore in finance, training, of its third century, maintaining its of the RNLI in 2019 and was appointed Senior Council in 2017, serving on the Remuneration safety and assurance roles. He was elected important traditions while helping Independent Trustee in 2022. He is also chair and People Committees, and was appointed to the RNLI Council and appointed a Trustee to shape it to meet the increasing of the Audit and Risk Committee. Denis also a Trustee in 2023. He is also a crew member in 2023. He also serves as chair of the demands on its modern-day co-chairs the UK government-sponsored LACA at his local RNLI station in Calshot. Operations Committee. lifesaving service.’ - Lead the Change Board. Denis was awarded an MBE in 2018 and an OBE in 2023.

an MBE in 2018 and an OBE in 2023. ‘I am constantly inspired by the ‘It is a huge privilege to be able to contribute volunteers who work so hard, and to such a worthy cause and play my part in ‘The courage and dedication of RNLI staff dedicate so much of their time, saving lives at sea.’ and volunteers is truly inspiring. It is an to fund and support the RNLI.’ incredible privilege to have the opportunity to support them.’

Dr John Killeen

Sonia Modray

Mike Sturrock

Mark Wordsworth

John is chairman of the Marine Institute and president of the Timoney Leadership Institute. He has an engineering background and is founding president of the Irish Academy of Engineering. Elected to the Council in 2017, he was appointed a Trustee in 2020, chairs the Irish Council and serves on the Audit and Risk Committee.

Sonia was originally With a background in Mark is an executive chair appointed interim technology spanning and trustee with significant finance director at the numerous industries and commercial and investment RNLI. Subsequent to this sectors, Mike is now on the experience. Elected to the appointment she was elected to the RNLI board of several businesses. His early career RNLI Council in 2018 and appointed a Trustee Council in 2014 and appointed a Trustee was at sea as a professional yacht captain. and Chair of the Investment Committee in 2015. Sonia is chair of the Property Mike was elected to the RNLI Council in 2015 in 2021, Mark also serves on the Finance Committee, a member of the Finance and appointed a Trustee in 2016. Committee and Bicentenary Steering Group. Committee and the Trustee responsible for safeguarding. ‘I’ve had a passion for the sea all my life and 'As a former crew volunteer, I am proud to it’s a huge privilege to be member of the help ensure that the selfless humanitarian ‘From my first day at the RNLI, I was RNLI crew.’ work delivered by RNLI crews for 200 years impressed by the selfless dedication and will continue for many generations.'

‘I am honoured to be a volunteer in an ‘From my first day at the RNLI, I was organisation that delivers an invaluable impressed by the selfless dedication and service to society and has saved lives for professionalism of everyone involved with more than 200 years.’ this inspiring organisation.’

Paddy McLaughlin

Lord Mark Sedwill

Chris Walters

Paddy has been an RNLI Lord Sedwill is a cross-bench CEng MEng MBA FIMarEST FRINA volunteer for over 40 years member of the House of Chris is a chartered engineer and is a serving coxswain Lords. He was national and naval architect with of Red Bay’s all-weather security adviser, cabinet over 30 years’ experience lifeboat. He is a company director with 30 secretary and chairman of the Civil and Public in the marine and energy sectors, including years of experience in the hospitality supply Service Lifeboat Fund. Before that he had a executive positions with Lloyd’s Register and industry throughout Ireland and the UK. diplomatic and security career, mostly in the P&O Group. Chris joined the RNLI Technical Paddy joined the RNLI Council in 2014 and Middle East and South Asia. He was elected Committee in 2012 and was appointed a became a Trustee in 2020. to the Council in 2021 and appointed a Trustee in 2015. He chaired the Technical Trustee in 2022. Committee from 2015 to 2019 and was ‘I’ve always lived in a coastal community, reappointed in November 2022.

‘I’ve always lived in a coastal community, and the RNLI has featured hugely throughout my life. It’s a privilege to support and honour the Institution’s lifesaving work.’

‘As a lifelong watersports enthusiast, I’m proud to be a member of the RNLI’s One ‘Inspired by the courage of RNLI volunteer Crew to save lives at sea.’ crews, communities and staff, I am delighted to play a role in saving lives at sea.’

RNLI ANNUAL REPORT AND ACCOUNTS 2023

RNLI OFFICERS AND CONTACTS

RNLI OFFICERS AND CONTACTS

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DIVERSITY OF SKILLS AND EXPERIENCE: by number of Trustees
Our 14 Trustees possess a wealth of knowledge and experience that is beneficial to the RNLI. Taking the range of skills
listed below, we asked the Trustees to identify the categories in which they have a significant level of skill or experience.
Operations and service delivery 6
Engineering and production 3
Finance 8
Human resources 5
Charity governance 10
Maritime 6
Information technology and data 1
Risk, safety and assurance 7
Youth development 4
Board experience 13
Diversity and inclusion 10
Strategy development 12
DIVERSITY
CHARACTERISTICS
GENDER ETHNIC
GROUP
MALE 79% WHITE 93%
FEMALE 21% MINORITY
ETHNIC
GROUP 7%
World Drowning Prevention Day 2023:
RNLI Chief Executive Mark Dowie champions Deserving of our best protection: Ballyglass volunteers face off the
our lifesaving cause at 10 Downing Street elements onboard their Severn class lifeboat Bryan and Gordon
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RNLI ANNUAL REPORT 83 AND ACCOUNTS 2023

RNLI OFFICERS AND CONTACTS

OUTGOING TRUSTEES IN 2023 Janet CooperOBE (Acting and Deputy Chair)	Paul Jevons Commodore Andrew Jordan(elected July 2023)	EX OFFICIO GOVERNORS The Lord Mayor of London	EX OFFICIO GOVERNORS The Lord Mayor of London	PRINCIPAL SOLICITORS Wilsons Solicitors	Womble Bond Dickinson	ADVISORY COMMITTEES Operations Committee		EXECUTIVE TEAM Chief Executive
Rear Admiral Roger LockwoodCB	Al KassimCFA MSc BSc	The Chairman of The Baltic Exchange		Alexandra House	Oceana House	Chair: Rear Admiral Roger LockwoodCB (to April 2023)		Mark Dowie
	Professor Anthony KessellMBBS MPhil MSc FFPH MRCGP MD	The First Sea Lord		St Johns Street	39–49 Commercial Road	Interim Chair: Fiona Fell(from April to October 2023)
COUNCIL	Dr John Killeen	The Chairman of Lloyd's		Salisbury SP1 2SB	Southampton SO15 1GA	Chair: Commodore Andrew Jordan(appointed October 2023)		Director of Engineering and Supply
HRH The Duke of KentKG (President)	Jacquie Leitch	The Master of The Honourable Company of Master Mariners						Jamie Chestnutt
Janet LegrandOBE KC (Hon) (Chair) (elected January 2023)	Peter LloydMBE MBA MA	The Deputy	Master of Trinity House	BTO Solicitors LLP	Blake Morgan LLP	Technical Committee
Janet CooperOBE (Deputy Chair and Acting Chair) (retired July 2023)	Rear Admiral Roger LockwoodCB (retired July 2023)	The Chairman of The Royal Yachting Association		48 St Vincent Street	New Kings Court	Chair: Chris WaltersCEng MEng	MBA FIMarEST FRINA	Chief Information Offcer
Fiona Fell(Deputy Chair)	Althea Loderick(retired November 2023)	The Chairman of The Northern Lighthouse Board		Glasgow G2 5HS	Tollgate, Chandler’s Ford			Claire Deuchar
Denis WoulfeOBE (Senior Independent Trustee)	James Marshall	The Chairman of The Commissioners of Irish Lights			Eastleigh SO53 3LG	Heritage Committee
Jim Islam(Treasurer)	Paddy McLaughlin	The UK National Hydrographer		Philip Lee LLP		Chair: Tim Bryan FMA		Director of Fundraising, Marketing and Media
Dr Peter AitkenMB ChB MRCGP FRCPsych FHEA DCH DRCOG	Captain Ian McNaughtCVO MNM			Connaught House	Sackers & Partners LLP			Jayne George
James Allan	Lynn McSeveney			One Burlington Road	20 Gresham Street	Medical Committee
Neil Appleton	Alastair MillerBSc (Econ) FCA	INVESTMENT ADVISER		Dublin 4 D04 C5Y6	London EC2V 7JE	Chair: Dr Peter AitkenMB ChB MRCGP FRCPsych FHEA DCH DRCOG		General Counsel
Alison AppleyardBEd (Hons) NPQH ARCM LTCL FCMI	Sonia Modray	Lane Clark & Peacock LLP						Nicky Nelson
Robert Boddington	Sandra Morson(retired July 2023)	95 Wigmore Street		Charles Russell Speechleys LLP		Scottish Council
Simon Bowen	Judy NelsonMBA	London W1U 1DQ		5 Fleet Place		Chair: Rear Admiral Roger LockwoodCB (to July 2023)		Director of Lifesaving Operations
Tim BryanFMA	John NewellMBE BSc MSc CEng FIMarEST			London EC4M 7RD		Chair: Captain (Retd) Chris Smith(appointed July 2023)		John Payne
John Burke	Rosie Norris					Deputy Chairs: Sheona Smith	and Karen Stewart
Katie CaddenB.Corp Law, LL.B, LL.M. Solicitor	Paul O'Leary	PRINCIPAL BANKERS		STANDING COMMITTEES				Chief Finance Offcer
Professor John ChudleyBSc PhD CMarEng CEng FIMarEST Andrew CooperCMG (retired July 2023)	Scott Parsons Melissa Potter	Barclays Wytham Court,		Membership Nomination Committee Chair: Janet LegrandOBE KC (Hon)		Council for Ireland Chair: Dr John Killeen		Steven Peacock
Allen Corlett Philip DaviesFAICD The Hon Andrew Dixon	Sinead Reen Simon Robinson Lord Mark Sedwill	11 West Way, Oxford OX2 0JB		Remuneration Committee Chair: Roger Fairhead		Deputy Chair: Paddy McLaughlin People Committee		Director of People Sue Barnes(retired October 2023) Caren Thomas(appointed October 2023)
Simon Dudley	Captain (Retd) Chris Smith (elected July 2023)			Audit and Risk Committee		Chair: Roger Fairhead(to November 2023)
Louise Evans	Mike Sturrock	AUDITOR		Chair: Denis WoulfeOBE				Safety and Independent Assurance Director
Roger Fairhead	Professor Phil SuttonCBE FREng PhD (retired July 2023)	BDO LLP		Investment Committee				Rob Faricy
Jeremy Fleming(elected July 2023)	Professor Mike TiptonMBE MSc PhD	55 Baker Street,		Chair: Mark Wordsworth
Dr Philip Goodwin Martin Gregory(retired July 2023) Adam Griffn(retired July 2023)	Jane Totten Hugh Tully Ian Venner	London, W1U 7EU		Property Committee Chair: Sonia Modray				COMPANY SECRETARY
David Hallam	Dinesh Visavadia			Finance Committee				Nick Giles
Jonathan Hart	Chris WaltersCEng MEng MBA FIMarEST FRINA			Chair: Jim Islam
Gillian HodgettsMSc MCIPR BA (Hons) DMS DN RGN	Lesley Wilkin
Sir Peter HousdenKCB	Kate Wilson
Mark James	Mark Wordsworth							The RNLI thanks its past chairs and
								vice presidents	for their ongoing
								support and commitment.

RNLI ANNUAL REPORT 85 AND ACCOUNTS 2023

OUR STRUCTURE

----- Start of picture text -----
RNLI
• Lifeboat stations • Volunteer crew
RNLI
• Lifeguarded beaches • Shore-based volunteers
lifesaving
governance • Community and coastal water safety teams • Lifeguards
delivery
and management • International programmes • Water safety volunteers
supported by Locations Departments
structure
Staff • Regional bases • Engineering and Supply
• Manufacturing units • Finance, Planning and Improvement
• Community • Fundraising, Marketing and Media
RNLI Support fundraising offices, • Insights, Technology and Strategy
Centre, Poole some of which are • Safety and Independent Assurance
co-located with • Lifesaving Operations
regional bases • People
• International
Volunteer
• Volunteer groups
managed by fundraisers, speakers • Volunteer community fundraisers
and press officers
• Members, donors, online shop customers,
Financial supporters corporate partners and charitable trusts
Executive Team RNLI companies
• RNLI (Sales) Limited
• Nominations • RNLI (Trading) Limited
overseen by • Remuneration • RNLI College Limited
• Audit and Risk • Clayton Engineering Limited
Chair and Trustees Standing committees • Investment
• Property
• Finance
Company Secretary appointed by
Advisory committees • Operations
Council • Technical
• Heritage
• Medical
elected by
• Scottish Council
• Council for Ireland
Lifesaving generations: Ben Greenslade, shown in action off Ben Greenslade, shown in action off • People
Lyme Regis Beach, comes from a family of RNLI lifesavers. Governors
----- End of picture text -----

Lifesaving generations: Ben Greenslade, shown in action off Ben Greenslade, shown in action off Lyme Regis Beach, comes from a family of RNLI lifesavers. His sister Abi and dad Malcolm are fellow lifeguards

RNLI ANNUAL REPORT 87 AND ACCOUNTS 2023

THANK YOU

The RNLI would like to say a huge thank you to the thousands of individuals who made our lifesaving work possible in 2023.

LEGACIES

TRUSTS, FOUNDATIONS AND INSTITUTIONAL DONORS

The RNLI is grateful for every legacy, big or small. Here are just a few of the kind people who left a gift in their Will last year:

We are extremely lucky to work with so many generous charitable organisations and individuals. Many of them support on a regular basis or phase their gifts over several years. This helps us plan for the future and match lifesaving projects to the specific objectives of these trusts, foundations and donors. Thank you to:

Chris West and his wife, Jo, were stranded in Tobermory Harbour while onboard Highland Princess . They were so impressed that the only boat going out in the foul weather was the lifeboat, that they decided to leave most of their estate to the RNLI.
Allan and Nesta Ferguson Charitable Settlement
The Bothwell Charitable Trust
Blue Light Card Foundation
The Calleva Foundation
Dorothy Mary Twiggins Charitable Trust
The Corton Hill Trust
Dr Scholl Foundation
The Coysh Family Charitable Trust
Ellen Mavis Chalk Charitable Trust
The Ganton Furze Settlement
Foreign, Commonwealth and Development Office, UK Government
The Hadley Trust
Elizabeth Lyle Watson , from Belfast, was the daughter of a sea captain who worked between Scotland and Ireland, and the widow of a ship’s engineer who was lost at sea in 1989. All three were loyal supporters of the RNLI and Mrs Watson left a legacy to be used for a boat that would help to save lives in the Irish Sea.
Goldman Sachs Gives
The Harry Bacon Foundation
Horlock Educational Trust
The Houghton Dunn Charitable Trust
Irish Aid, Government of Ireland
The Iliffe Family Charitable Trust
Isle of Man Government
The Joe and Helen O'Toole Charitable Trust
Jean and Roger Miller's Charitable Trust
The John Horseman Trust
John Scott Trust Fund
The Kenneth & Susan Green Charitable Foundation
John W Ross Charitable Fund
The Lawson Trust
Lloyd's Register Foundation
The Lidbury Family Trust
Keith Swinburne Stephens was a Southampton man with strong family connections with the sea. He flew search and rescue missions with the RAF during the Second World War so had direct experience of saving lives at sea, which was just one of the reasons behind the legacy he left to the RNLI.
Logan Charitable Trust
The Lois Cumbers Charitable Foundation
Miss Kathleen Beryl Sleigh Charitable Trust
The Misses Barrie Charitable Trust
Mollie Lind Charitable Trust
The Orr Mackintosh Foundation
Mrs K L J Bartlett Deceased Charitable Trust
The Portishead Lifeboat Trust
The RS Macdonald Charitable Trust
Myristica Trust
National Institute of Health Research, UK Government
The Sally Odell Charitable Trust
Princess Charlene of Monaco Foundation
The Samuel & Freda Parkinson Charitable Trust
Q Charitable Trust
The Sula Trust
Small Grants Scheme, Lloyd's Register Foundation
TOD Fund at Community Foundation Ireland
Stelios Philanthropic Foundation
The Beacon Owl Trust

MEMBERS AND SUPPORTERS

Every pound or euro has a part to play in saving lives at sea. We are grateful for the generosity of all our supporters, including those who donate in memory of a loved one or have made an anonymous gift. We thank the following (or their donors) for their significant contributions last year:

Andrew and Lynn Richmond
Andy and Dominie Walters
Anita Hurrell in memory of Stephen Hurrell
Anne Lawson
Anthony Fountain
Bill Wraith
Chris Timson and Anne Timson in memory of William
Christopher Lean
Cyril and William Pidduck
Dave and Barbara Smithson
Dave Mill in memory of Lesley Mill
David and Eleanor Holloway
David Mulroy in memory of Helen Marie Byrne
Diane Walker in memory of Sandra Walker
Donald Andrew
Elizabeth Russell
Gavin and Donna Moule
Geoffrey and Christine Grime
Gordon Abbotts
Hazel Adamson
In memory of Alison Gemmell
In memory of Barry and Peggy High • In memory of Carole and Peter Chivers • In memory of John Murrell
In memory of Kim Aldridge
In memory of Marjorie Buchanan
In memory of Martyn Gardiner
In memory of Mary Wilkinson
In memory of Michael Anthony Homer
In memory of Molly Griffiths • In memory of Mrs Joyce Low • In memory of Ruth Margaret Gregory
In memory of Winston Neame
Isobel Roach
Jean Keen
Jeffery and Barbara Court
John and Patricia Glithero
John Hill
John Rickman
Ken MacRae in memory of Mona Turley
Kenneth Edward Ansell
Margaret Cameron
Margaret Morris
Norman and Pamela Murray in memory of Niall and Andrew Murray
Pat and Susan Russell
Patricia and Nigel Dewar Gibb
Paul Rosenfeld and Alan Barham
Paul Skinner in memory of Sue Skinner
Peter Antram
Peter John Sobey
Racle Family
Raymond Massey in memory of Dee Massey
Rhyllis Mellors in memory of Stan Mellors
The Hill-Norton Family
The Speirs Family in memory of Simon Speirs

PARTNERSHIP SUPPORTERS

We would like to thank all the companies and organisations that supported us in 2023. In particular, for their continued and significant support, we thank:

Bremont Watch Company Limited
BT
Burts Snacks
Dryrobe Limited
EDF
Finisterre
Ford Motor Company Limited
Fred. Olsen Cruise Lines • GJW Direct
HarperCollins Publishers Limited

• Haven

Helly Hansen • Kärcher (UK) Ltd
Omaze UK Limited
Ørsted
The Royal Mint
The Lifeboat Fund
Uber Boat by Thames Clippers

THE RNLI 200 CLUB

Thank you to all our 200 Club members who have joined as an individual, as a business, or as part of a group, by donating £10,000 or €10,000 to fund the range of programmes and activities which are taking place to mark the historic milestone of the RNLI’s 200th anniversary in 2024. These include exhibitions, education programmes, youth development opportunities, photographic events and services of thanksgiving, to name just a few. These programmes will play a key role in raising awareness of the RNLI in its 200th year, commemorating its history, celebrating the lifesaving service it is today, and perhaps most importantly, inspiring the future generations of lifesavers and supporters who will be vital in taking the charity into its third century and beyond. With these activities being independently funded, our core funds can remain focused on our essential lifesaving service.

THE FUNDRAISERS

A heartfelt thank you goes out to the thousands of volunteers in RNLI branches and guilds. Your hard work and determination raised vital funds through a range of imaginative activities. Thank you to your communities for their generous donations and support too. Huge thanks to our shop and souvenir volunteers, and to the hundreds of independent fundraisers who took on all sorts of challenges, real and virtual.

You keep our lifesavers ready for anything

RNLI ANNUAL REPORT 89 AND ACCOUNTS 2023

‘With courage, nothing is impossible’

Sir William Hillary, RNLI founder

The RNLI is the charity that saves lives at sea

Royal National Lifeboat Institution, a charity registered in England and Wales (209603), Scotland (SC037736), the Republic of Ireland (20003326) the Bailiwick of Jersey (14), the Isle of Man (1308 and 006329F), the Bailiwick of Guernsey and Alderney, of West Quay Road, Poole, Dorset BH15 1HZ

Tel 0300 300 9990 (UK) 1800 991802 (Ireland)

info@rnli.org.uk

RNLI.org

Cover image: Punching through 2022 , mixed media on canvas by Kurt Jackson. Taken from his 2023 solo exhibition RNLI Cornwall , which donated all profits to the RNLI

Photos: Alex Brenner, Andy Delme, Stephen Duncombe, Martin Fish, Charlotte Hill, David Jenkins, Nicholas Leach, Leanne McColm, Craig Meheut, Phil Monckton, Michael Morley, Omaze, Mike Patrick, Miriam Power, Nihab Rahman, RNLI/(Richard Adams, Harrison Bates, Tom Collins, Claire Elshaw, Andrew Hastings, Lifeguards Scotland, Lough Derg Lifeboat Station, Faye Maher, Nigel Millard, New Brighton Lifeboat Station, Andy Parish, Peterhead Lifeboat Station, Plymouth Lifeboat Station, Troon Lifeboat Station, Nathan Williams, Jimmy Young), Shutterstock.com, Harry Simpson, Chloe Spooner, Stephen Hamilton Photography

ARA23

2023-12-31-accounts

RNLI ANNUAL REPORT AND ACCOUNTS 2023 We’re getting ready to face any storm

Annual Report of the Trustees of the Royal National Lifeboat Institution

CONTENTS

WELCOME FROM THE CHAIR AND CHIEF EXECUTIVE

‘ We faced the storm together, building foundations to ensure the future of our extraordinary organisation’

‘ It has been an honour to lead the Royal National Lifeboat Institution into our 200th anniversary year’

Keeping us ready to face any storm

WHAT WE DO

LIFEGUARDS INTERNATIONAL

OUR IMPACT IN 2023

LIFEBOAT LAUNCHES

Lifeboats

Our volunteer crews have been saving lives for 200 years. Their work remained at the heart of the RNLI in 2023.

Seconds from disaster

Lifeguards

All overboard

Caught in a flash rip

CASE STUDY

Water safety

‘ Thank you for helping Harvey save my daughter’s life’

CASE STUDY

International

Fundraising

WHERE YOUR MONEY GOES

CASE STUDY

A partnership to bring them home safe

An extraordinary legacy

WE IMPROVE OUR SUSTAINABILITY

WE PROTECT OUR INCOME

HOW WELL DID WE PERFORM IN 2023?

10 734 , PEOPLE RESCUED OR AIDED BY LIFEBOAT CREWS IN 2023

WE KEEP OUR PEOPLE SAFE

WE FOCUS ON WHAT WILL SAVE THE MOST LIVES IN OR NEAR THE WATER

NUMBER OF PEOPLE RESCUED OR AIDED BY LIFEBOATS IN 2022 IN 2023 16,535 people 10,734 people NUMBER OF PEOPLE RESCUED OR AIDED BY LIFEGUARDS IN 2022 IN 2023 24,451 people 22,576 people

SERIOUS WATER INCIDENTS

FINANCIAL REVIEW

FINANCIAL ANALYSIS

CHARITABLE SPEND

INCOME AVAILABLE FOR CHARITABLE SPEND

• Lifeguard rescue (+£0.8M: 3.7%)

INVESTMENT STRATEGY

OPERATIONAL FUNDS –

GOVERNANCE

Leadership

THE TRUSTEE BOARD

CHARITY STATUS

APPOINTMENTS TO THE TRUSTEE BOARD

SUCCESSION PLANNING

FINANCIAL OVERSIGHT

SERIOUS INCIDENT REPORTING

PEOPLE (EMPLOYEES)

RAISING CONCERNS INTERNALLY

INFORMATION SECURITY

Equity, diversity and inclusion

Conclusion

OPINION ON THE FINANCIAL STATEMENTS

BASIS FOR OPINION

OTHER INFORMATION

FINANCIAL

RNLI CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2023

RNLI BALANCE SHEET[†]

Mark Dowie

RNLI NOTES TO THE ACCOUNTS

1. RNLI STRUCTURE AND ACCOUNTING POLICIES

GOING CONCERN

a) Basis of accounting

b) Critical accounting judgements and key sources of estimation

c) Basis of consolidation

d) Depreciation, amortisation and impairment

e) Pension schemes

f) Income

g) Expenditure

h) Fund accounting

i) Operating leases

j) Investments

k) Stocks

l) Presentation currency

m) Exchange rate gains and losses

n) Cash at bank and short-term deposits