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2022-03-31-accounts

IMPACT REPORT 2021-22 and financial statements for the year ended 31 March 2022

Contributors

Contents

Patron

Her Majesty The Queen

President

Her Royal Highness The Princess Royal

Trustees

Tim Eyles

Chair

Philippa Wilson

Deputy chair

Jill Humphrey Co-treasurer

Ian Ailles

Co-treasurer

from October 2021

Yemi Adeola

Andrea Kershaw

Sam Lewis

Don McLaverty

Shonagh Manson

Charlotte Oades

Jan Portillo

Shaifali Puri

John Towers (also RSA Academies chair)

Principal Office

8 John Adam Street, London WC2N 6EZ

Leadership team

Andy Haldane Chief executive officer from October 2021

Natalie Carsey Chief operating officer until March 2022

Anthony Painter

Chief research and impact officer until January 2022

Andrea Siodmok

Chief impact officer from June 2022

Constitution

The RSA is a charity governed by a Royal Charter (RC000523). It is registered under the Charities Act 2011. Registration number 212424.

The RSA is also registered in Scotland. Registration number SC037784.

Auditors

Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP

Bankers

Coutts & Co. 440 The Strand, London WC2R 0QS

Pension consultants

Secondsight (formally Foster Denovo Limited) 2 Hamm Moor Lane Weybridge Surrey KT15 2SA

Surveyors and property consultants

MHBC 4 St Paul’s Churchyard London EC4M 8AY

Solicitors

Russell-Cooke 2 Putney Hill London SW15 6AB

Collyer Bristow 140 Brompton Road Knightsbridge London SW3 1HY

Investment managers

CCLA Senator House 85 Queen Victoria Street London EC4V 4ET

Page no.
1 Chair and chief executive’s introduction 2–3
2 About us 4–5
3 Our strategy, objectives and performance 6–7
4 Our approach
Overview 8
Living Change perspectives and practices 9
Case study 10–11
5 Our work
Future of Work 12–13
Case study 14
Regenerative Futures 15-16
Learning and education 17-18
Case study 19
Public events and ideas platform 20-21
6 Our community
Fellows, Catalyst and affliates 22–23
RSA funders and partners 2021-22 24–25
7 Environmental reporting 26–27
8 Financial review 28-33
9 Objectives, risks, governance and management 34-39
10
17		 Independent auditor’s report 40-44
11 Financial statements 45-62

The RSA impact report 2021–22

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’ 1 Chair and chief executives introduction

e are now at the start of the latest chapter in the RSA’s rich history as a W social change organisation. Andy returned from his secondment with the UK government at the beginning of April 2022 and we had our first Fellows Festival in May at which we launched our new mission paper, Design for Life. This sets out a new programme of change, underpinned by three closely inter-linked elements critical to transition towards better futures for people, place and planet namely: social impact, social opportunity and social innovation.

We hope very much that this will be the last year where Covid-19 is a material factor for us to consider. Despite this disruption, and thanks to the hard work of the RSA team, we have made a smaller deficit than we had originally anticipated in the budget. This reflects continued financial support from our Fellows and partners and a remarkable resilience shown by our hospitality division.

Finally, we would like to record our huge gratitude to the RSA colleagues for their tremendous hard work and commitment through a difficult time and of course for the continued support shown by our Fellows and partners through the pandemic.

We would recommend reading it here: www.thersa.org/design-for-life

As part of this new mission we are developing seven pathways through which the RSA might have clear social impact. These combine all the best elements of our current programmes while giving us a distinct purpose and, importantly, securing a strong direction on how we engage our RSA Fellows ensuring the RSA operates successfully and achieves the impact and outcomes we are all seeking.

Tim Eyles Andy Haldane Chair Chief executive

The RSA impact report 2021–22

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About us

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We are the RSA, the royal society for arts, manufactures and commerce. We’re committed to a future that works for everyone. A future where we can all participate in its creation.

he RSA has been at the forefront of significant social impact for over 260 years. Providing platforms, T opportunities and networks for all those who share our vision to connect, engage, share ideas and expertise.

Open and inclusive. Underpinning all of our work is an ongoing commitment effort to ensure the RSA is diverse, equitable and inclusive.

Our proven change process, rigorous research and design skills, innovative ideas platforms and our wider convening power combine to enable the RSA to deliver solutions for lasting change.

From our staff to our Fellowship, to partners and practitioners, we are an inclusive global community of over 30,000 influential and innovative problem solvers seeking ideas and solutions to resolve the challenges of our time.

Our values

All our activity aims to strengthen, empower and mobilise networks to work together in taking on today’s most pressing social challenges. Through our ideas, research, design, innovation skills and Fellowship, we are a global community of proactive problem solvers, uniting people and ideas to resolve the challenges of our time.

Always transparent and honest, we welcome new thinking and different perspectives

we welcome new thinking and Open different perspectives We are confident that together, we can resolve the challenges Optimistic of our time We champion curiosity, creativity and courage to inspire better Pioneering ways of thinking and doing Rooted in evidence-led thinking, Rigorous we act with integrity and purpose

We champion curiosity, creativity and courage to inspire better ways of thinking and doing

Our ambitions

Our vision

A world where everyone is able to participate in creating a better future

Through generosity and collaboration, we help others succeed

Enabling

Our purpose

Uniting people and ideas to resolve the challenges of our time

We are

A global community of proactive problem solvers

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The RSA impact report 2021–22

The RSA impact report 2021–22

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3 Our strategy, objectives and performance

Strategy 2019-22

In October 2019 the RSA completed its strategic review to consider the future direction of the organisation and last year we set ourselves five objectives.

he challenge was how we could leverage the significant assets of the RSA for ever greater real- T world impact. Our hypothesis was that we could deliver this by better deployment of the RSA’s resources, centred around one central theme: our Commitment to Impact. We do this by leveraging our unique combination of focus, community and approach, see diagram.

Focus Community We focus on We convene societal challenges and liberate the to lead, inspire and curiosity, creativity enable lasting change. and courage of all We do this in those seeking to areas where we understand and enable can add real change: our colleagues; value: through Committing the global community programmes, of Fellows ; and projects and to IMPACT individuals and events. organisations from all corners of together society.

Central to our strategic vision is a focus on programmes that make a meaningful difference on a global scale. Last year we set ourselves the objective of developing multi-year, impactful global programmes of change with a sustained funding base and have made strides towards this.

‘ We use our Living Change Approach’ - adapting to each challenge and the opportunities they present. We explore, experiment, learn and evolve to deliver ever more meaningful and impactful change. Approach

Our first programme, Future of Work, was established during 2019-20, closely followed by a second programme, Regenerative Futures, in 2020-21, and Fair Education and Learning Society in 2021-22.

Strategy 2022 onwards

In May 2022 we published our new mission paper, Design for Life, and its accompanying programme of change, underpinned by three closely inter-linked elements that are critical to transition towards better futures for people, place and planet: social impact, social opportunity and social innovation. This brings together the thread of programmes we have been working on over the past three years.

Our new mission and programme will focus on people and places whose opportunities are currently most constrained, whether at school, at work, in communities, in companies or across systems. In this way, we will seek to unlock social opportunity for those whose potential is greatest.

creative and entrepreneurial at all stages of their lives, from early years to adulthood. That is what we mean by social innovation. This creates the driving force towards social impact that contributes to resilient communities, rebalanced places, and a regenerative planet.

We need to move from reactive crisis management, to proactive re-imagining of the future state; from doing less harm, to doing more good;

Unlocking social opportunity is best achieved by providing people and places the agency, skills, opportunities and connections to be innovative,

from extracting for short-term gains to replenishing for the long-term and future generations.

for social impact. It introduces seven pathways that will define the RSA’s future change programme, these are:

This was a staging post paper. It sets out our overall mission for the RSA, however, we are leaving the detailed design and delivery of the pathways to a co-creative process working with Fellows and partners.

The Design for Life programme proposes a whole lifecycle and cross-system portfolio of social opportunities to unlock potential

Early years | Pupils | Students | Entrepreneurs | Places | Companies | System

Performance

For 2021-22 we agreed the following objectives:

Objective To finalise and deliver a clear value proposition for Fellows

What we did

We have worked hard now to finalise a clear proposition to our Fellows and understand how together we can have social impact with them, ensuring that is embedded in all the work we do. A lot of the underpinning work was carried out for this during 2021-22 with clearer messaging and articulation of the proposition. And 2022 will see the launch of a new Fellowship platform to enable Fellows to be involved in our work. We have also improved our onboarding process for Fellows. We have still got work to do to increase our Net Promoter Score (NPS) to ensure we are improving our onboarding process.

Our programmes have refined and focused our work and this work is continuing again as we focus from 2022 on Design for Life as a single programme at the RSA.

To truly prioritise content and activities that contribute to our ambitions and reduce/push out/find new ways of delivering other aspects of our work

To identify and launch three to four programmes

This was completed with the launch of Learning Society and Fair Education.

This was achieved despite difficult circumstances.

To generate £10.5m income for RSA activities and assets

To increase awareness of the RSA as a social change organisation both amongst those in-the-know about the RSA and beyond

Following the launch of a redesigned website last year, this year we have been able to leverage this to significantly enhance our profile. We ran two significant campaigns profiling our Living Change Approach in a change-making campaign and our Regenerative Futures work which was aligned to COP26.

This work has continued looking at the historical context of the RSA, understanding the implications for our history. We have also continued a significant amount of internal work improving our HR processes and updating our job descriptions in line with best practice. See Note 4 of the financial statements for our staff diversity statistics.

To deliver the organisational changes and embed DE&I work so we can do the best work of our lives driving impact

The RSA impact report 2021-22

The RSA impact report 2021–22

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4 Our approach

Overview

The characteristics of the RSA’s route to social change over the centuries have come together to shape its overall . approach – the Living Change Approach

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Gain
knowledge
Spot
opportunities
Track
learning
Build
movements
Develop
ideas Test
interventions
OVERARCHING AMBITION
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eveloped incrementally and organically over the years, the Living Change D Approach aims to equip communities and organisations with a flexible framework for tackling complex challenges and forging rebalanced, resilient and regenerative futures. It seeks to move them from existing best practice to emerging next practice.

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The Living Change Approach embodies three elements: a distinctive and dynamic process, a set of provocative perspectives, and a constellation of cross-disciplinary practices.

Living Change perspectives and practices

Living Change perspectives

Living Change practices

The way we think about challenge and change...

The way we act on challenge and change...

Systemic

Research + evaluate

We robustly interrogate challenges and trends from a hyperlocal to a global scale through qualitative and quantitative research. We apply systems thinking to interrogate current challenge and we evaluate the outcomes of our work to understand where impact has been achieved for people, place and planet.

We see and change systems in nested and interconnected ways.

Imaginative

We draw on our capacity for imagination to create hopeful alternatives to the reality that we know.

Design + innovate

Adaptive

We bring together diverse creative practices to take us from now to next. Futures thinking, systems innovation, regenerative, enterprise and learning design, are all critical to challenge, re-imagine and realise the future of products, services, places, organisations, relationships, systems and narratives.

We recognise that change is living as we design, test and iterate to improve ways forward.

Collective

We bring the power and wisdom of the collective to lead change, with the welfare of all of people, place and planet at the heart, in equal measure.

Participate + convene

We work with, and bring together a diversity of people, viewpoints, organisations and sectors to build movements with inclusive commitment for the long term and collective action in the now. This area of practice includes participatory and deliberative decision-making, policy convening and influencing, and content development and publishing to change public narratives.

Long-term

We hold a long-term view of success and consequence beyond this generation.

Local to global

We start with place and context to impact (bio)regionally and globally.

The RSA impact report 2021-22

The RSA impact report 2021-22

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Living Change in practice: NHS Lothian case study

What happened? We first undertook a diagnostic review with staff using the RSA’s Future Change Framework to understand what practices the organisation needed to restart, amplify or end, as well as identify opportunities for change. This work helped us prioritise the We then convened 12 staff changemakers importance of public engagement and and supported them to increase their a public entrepreneur programme for individual and collective impact capabilities staff. We therefore brought together a over the course of a six-month programme. ? number of local residents over the course Each participant worked on their own idea of three sessions in which they shared their for change while supporting each other, experiences and ideas. These sessions culminating in an insights paper for their helped uncover ways in which NHS Lothian colleagues. This innovation programme could work with others to address the was the first step towards equipping NHS challenges Covid-19 accelerated. Lothian staff as public entrepreneurs to respond to the challenges that lie ahead. NHS Lothian and RSA staff cohort What was What was the challenge? the benefit? NHS Lothian is one of the 14 regions of NHS Scotland covering a population of over 850,000. The staff cohort were the first to benefit from the 1 RSA’s public entrepreneur programme, equipping It provides healthcare services in the City landscape and delivery plans. They faced them to explore ways of bringing innovations to life of Edinburgh, the East Lothian, Midlothian the critical challenge of responding to and West Lothian areas with a budget of immediate demands of the pandemic and leave a long-lasting legacy within the organisation. ? £1.6bn and over 26,000 staff working while at the same time finding new ways across all aspects of the health service. of meeting the longer-term pressures ? Citizens who participated in the workshops gained for change that were building up. 2 a greater understanding of the merging challenges of In light of the Covid-19 pandemic, NHS Lothian wished to review its strategic the health sector whilst also having their voices heard.

We then convened 12 staff changemakers and supported them to increase their individual and collective impact capabilities over the course of a six-month programme. Each participant worked on their own idea for change while supporting each other, culminating in an insights paper for their colleagues. This innovation programme was the first step towards equipping NHS Lothian staff as public entrepreneurs to respond to the challenges that lie ahead.

The RSA impact report 2021–22

The RSA impact report 2021-22

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5 Our work

Future of Work

Future of Work

The RSA’s Future of Work programme aims to secure good work for all.

e do this by pursuing opportunities that can shift the system at three levels: W by influencing key decision makers at the macro level; improving institutional practice at the meso level; and by working with changemakers to test new solutions at the micro level.

~~Creating impactful A directory resources for funders and changemakers was~~ This year we have developed a new post- ~~developed which~~ graduate course based on the RSA’s Future of Work content that will help develop ~~highlights over 180 of the world’s~~ budding changemakers at the University of Coventry. This will go into the field ~~leading social~~ next academic year. In partnership with ~~innovations in~~ the Autodesk Foundation, we developed ~~worker-tech~~ a directory for funders and changemakers that highlights over 180 of the world’s leading social innovations in worker-tech.

~~Infuencing key debates~~

In September we launched the Economic Security Observatory – a year-long enquiry that tracked the outcomes of keyworkers during the Covid-19 pandemic. Our ‘hazard’ pay £500 bonus for care workers was implemented by the Scottish and Welsh governments, whilst our recommendation that economically insecure key workers in the private sector should also be entitled to preferential affordable housing access (as some public sector workers are) was taken up by the Greater London Authority.

~~Developing new solutions~~

Our major pilot this year has been to test a new careers coaching platform in France (see case study).

How we work to shift the system:

We have also launched research reports this year on how the jobs impact of decarbonisation diverges dependent on sector and place; and the potentially acute impact of automation on social housing tenants.

MACRO

influence key decision makers

MESO

MICRO

improve work with changemakers institutional practice to test new solutions

The RSA impact report 2021-22

The RSA impact report 2021-22

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Our work

Future of Work: Jobflix case study

In 2020 the RSA embarked on a new project with French social enterprise Bayes Impact and the Mastercard Center for Inclusive Growth.

In early 2021, we launched the fruits of this collaboration: Jobflix – a new digital careers coaching platform. Targeted at lower skilled younger workers in France, Jobflix allows its users to explore different career pathways on an accessible new platform. Each career pathway comes with clear information on the salary potential, the training and skills needed, or the likely competitiveness of the labour market. Using this data and the individual aspirations of its users, Jobflix then makes personalised recommendations which connect people to training or employment opportunities.

training opportunities that connect to it. To evaluate the platform’s impact on improving the job readiness of users, we also surveyed a smaller subset of users who either saved a career in their account or registered for coaching recommendations. Of this user group, we found that 93 percent of users are interested in a career found on Jobflix; 87 percent are ready for training in that career; and 84 percent are willing to commence training for it now.

The next stage of the partnership is to bring these insights to the UK – Jobflix is amongst a package of Bayes Impact services that is being tested in 11 jobcentres as part of a Department of Work and Pensions pilot.

Since its launch, the platform has reached a total of 100,000 users. Over half explore a career pathway in depth and 43 percent the

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place
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Planet

People

JOSIE WARDEN RSA head of regenerative design

ZAYN MEGHJI RSA programme manager

JOANNA CHOUKEIR RSA director of design and innovation

Regenerative Futures

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The RSA impact report 2021–22

The RSA impact report 2021–22

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Our work

Learning and education

Regenerative Futures The future doesn’t just happen, it’s up to us all to create it.

The Regenerative Futures programme looks at how we can work in harmony as part of the planet’s living systems through manifesting the potential of people, communities and places. It aims to build awareness, capabilities and demonstrate in practice what it could look, act and feel like.

The collaboration between the Fellows Sustainability Network and RSA Oceania continued with an event series exploring long-term thinking. RSA public events took place with key practitioners including architects Michael Pawlyn and Sarah Ichioka, and Indigenous academics Norm Sheehan, Tyson Yunkaporta and Melanie Goodchild. We also continued to deliver and develop new and existing projects with partners.

This year we built on the initial programme development with a full external launch and accompanying campaign across social media platforms and the RSA website. This included releasing the positioning paper, From sustaining to thriving together, and curating events in collaboration with RSA Scotland during COP26. The campaign resulted in burgeoning relationships with new partners, the recruitment of new Fellows, and opportunities to amplify the reach of our message through invitations to speak on other platforms including the Design Council’s Design for Planet conference, and a range of universities and corporates globally.

In December 2021 the RSA Bicentenary Medal, which recognises outstanding contributions to design, was awarded to Dr Daniel Christian Wahl for his lifelong work on design for regenerative cultures. This partnership continues, with a forthcoming podcast mini-series hosted by Dr Wahl to be released later this year.

RSA Bicentenary Medal winner Dr Daniel Christian Wahl

The RSA impact report 2021–22

The RSA impact report 2021–22

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Our work

Learning and education: Student Design Awards case study

Learning and education

Our work in 2021-22 across the education system, lifelong learning landscape and through the Student Design Awards (SDAs) (see case study) has shown high levels of impact and engagement.

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Cities of Learning
locations nationwide
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Through our Fair Education programme, Cities of Learning has run projects in 46 schools registered for the Pupil Design Southampton (focusing on the future Awards (PDAs) this year and we hosted of work) and Cambridgeshire (focusing two online teacher training sessions. Nine on employability, cultural inclusion and mentors delivered 11 sessions to pupils. wellbeing). In the last quarter, Belfast, A PDA-SDA joint awards ceremony is Bradford and Tees Valley (our first planned for July. Project evaluation is combined authority) joined the Cities underway. of Learning programme – subsidised The inclusive and nurturing schools toolkit by a grant from the Garfield Weston Foundation. Use of the Cities of Learning has had 782 downloads since December 2021. We have spoken at five high-profile digital badges has grown in parallel to the programme. More than 7,000 learners have public events, including the Westminster now benefited from Cities of Learning Insight’s Alternative Provision conference. badges.

For our Preventing School Exclusions project, we are working with local partners to enable greater local multiagency collaboration in East Sussex, Oldham, and Worcestershire. The Department for Education has expressed interest in project ou ~~tco~~ mes.

A new strategic partnership with Ufi has helped to fund research to understand the motivations, barriers and confidence of learners who have not thrived in traditional education settings. We are also developing pilots to support learning through digital inclusion within Bradford and Cambridgeshire.

~~7 destinations engaged~~

~~7,000 learners benefting~~

The RSA Citizens of now (social action in primary schools) web page and its associated launch event has had 537 and 1,220 respective views since November. Further research funding has also been secured.

~~150 organisations participating~~

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ENGAGE PARTICIPATE
DEMONSTRATE LEAD
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The 2021-22 Student Design Awards competition had nine briefs that focused on a range of social and environmental challenges, including collective imagination , material reuse and . future working practices

Our final engagement sessions of the cycle were a series of virtual workshops, focused on introducing students to frameworks and tools to help their thinking and build content area knowledge. Circular design, participatory futures and equitable design were the focus areas and 96 percent of students felt they improved or gained new skills as a result. At time of writing, our judging process is currently underway with £20,500 in prizes available to the winners in total. The programme continues to evolve and in 2022, we will deliver our first pilot with a local community supported by The National Lottery Community Fund.

The awards successfully reached its funding targets with a range of existing and new partnerships including the LEGO group, Network Rail, the Marketing Trust and GSK. The team continued with a virtual and global approach to the competition, starting the cycle with a virtual launch event with over 300 live attendees followed by a London Design Festival event focused on pluriversal design, bringing together educators across the globe to discuss design education. These events were followed by targeted briefing sessions to 12 higher education institutions, where the team spoke directly to 340 students in their courses alongside their educators about how best to approach these challenges. This year, 50 percent of schools that received briefing sessions had students on our shortlist.

The RSA impact report 2021–22

The RSA impact report 2021–22

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Our work

Public events and ideas platform From the Great Room to our global digital stage, RSA public events feature the most exciting figures working on the world’s biggest challenges.

With a programme of both hybrid and fully digital events, the RSA is now reaching greater audiences than ever before, connecting global speakers to global viewers, with our YouTube subscriber numbers now standing at 754,000.

Highlight hybrid events included the launch of the Citizens of now report, featuring young activists and school leaders from across the UK; the induction of a stellar new cohort of Royal Designers for Industry; Andy Haldane’s first speech as RSA CEO from the Great Room stage; and an inspiring President’s Lecture by former Australian Prime Minister Julia Gillard.

~~140~~

~~public events speakers 10,000 viewers of Regenerative Futures events~~

A blended programme is critical to our public events content and audience engagement goals: to enhance speaker diversity; seek out new voices; grow our audiences globally; support and amplify RSA research; and maintain a strong thematic focus on issues of social, economic and environmental justice.

Highlight programming partnerships included the Regenerative Futures events series held against the backdrop of the COP26 climate talks, reaching 10,000 viewers and featuring global trailblazers and policy influencers sharing stories of the bold leadership, collective imagining and indigenous wisdom that can help us create better futures for people and planet.

In 2021-22, digital-first events allowed us to respond swiftly and shape the public conversation around emerging and evolving global news stories, trends and debates, from vaccine equity to food security, from the cost of living to the energy crisis, from online safety to good work innovation.

~~459 000 , hours of RSA Events watch time~~

~~754 000 , YouTube subscribers~~

~~5.5m~~

~~RSA Events YouTube channel views~~

#RSA GoBig

Ed Milliband, Shadow Secretary of State for Business, Energy and Industrial Strategy, and MP, and Anthony Painter, former RSA chief research and impact officer in conversation at RSA event What will it take to 'Go Big'?

The RSA impact report 2021–22

The RSA impact report 2021–22

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6 Our community

Fellows, Catalyst and affiliates

~~Our Fellows~~

91.3%

hroughout the last year our Fellowship community continued to support the RSA. Retention T improved to 91.3 percent, with a record number of members making a long-term commitment by taking up Life Fellowship. RSA continued to support the community by providing discounted offers where needed. Recruiting new Fellows proved more challenging – we recruited 2,568 Fellows. Following the lifting of Covid measures we saw signs of recovery in early 2022 and total Fellowship ended at 30,364, with a net loss of 75. The racial diversity of joiners increased by 3 percent to 21 percent and 42.5 percent of joiners are women or from other gender minorities.

Fellows retained

30,364

Total number of Fellows at year end

42.5%

Fellows joined are women or from other gender minorities

~~Fellowship insight~~

We continued to respond to Fellowship needs – improving the onboarding experience for new Fellows with a new welcome pack and streamlined communications. We also held seven onboarding events attracting 500 new joiners and started outbound welcome calls. A full Fellow survey was issued in late March and closed with a 21 percent response rate, which will provide the RSA with insight to inform strategies and plans in the coming year.

~~Fellowship engagement~~

We introduced three new engagement initiatives this year – the inaugural Fellows Festival, Fellow townhall meetings and the Good Work Guild.

~~Fellows inaugural festival~~

We spent the latter part of the year preparing for the inaugural Fellows Festival which was held on Saturday 14 May 2022. We had 600 Fellows sign-up and hosted over 40 speakers and presenters.

The aim of the day was for Fellows to share and find inspiration for how we might together start to chart a new path to a fairer and more resilient future.

~~Fellow townhall meetings~~

We held three Fellow townhalls with over 1,150 sign-ups online. The format is a quarterly gathering of global Fellows together with RSA staff to improve transparency and accessibility with the arrival of a new CEO, and to bring Fellows closer to both RSA work and to each other.

~~Good Work Guild~~

A year-long pilot Fellowship initiative closely linked to the goals of the Future of Work programme. It is a diverse global network of 295 Fellows (and three nonFellow advisors) working to tackle the most pressing issues related to economic security and labour market transforming technologies. Nine member-led groups were launched in January 2022 to delve into key themes identified by the network and start to define the challenges and surface new ideas.

~~Catalyst~~

In the last year, Catalyst grant awards have continued to prove a key avenue of support for our community of Fellows, with a total of 217 applications across the year. Catalyst remains competitive, with an average success rate of 12 percent at the last funding round. To address this demand, and build on programme success, we are exploring models for scaling our offer.

RSA Oceania supports Fellows in Australasia, Melanesia, Micronesia and Polynesia. Aside from the UK and US, Oceania has the largest concentration of Fellows globally, with 480 Fellows across the region.

Through our work encouraging creative, human-centred solutions, we have become a direct facilitator of societal change, conducting innovative research, sparking networks for collective impact, and supporting Fellows in their desire for purpose and impact.

During the past year, RSA Oceania has actively supported the RSA’s Regenerative Future’s agenda, facilitating global dialogue and engagement around the programme. This has led to an exciting range of initiatives delivered in collaboration with Fellows, including a long form webinar series titled Re-claiming the Future in partnership with the RSA Sustainability Network. The series aimed to influence wider conversations around long-termism, with the intention of establishing long-term thinking as a key area of enquiry for the RSA, bringing together stakeholders with interests in futures thinking, regenerative design, and deliberative democracy.

Our Fellowship has grown to 1,100 Fellows. Through our regional ambassador network, we are supporting Fellowship hubs in key US cities.

The New Jersey Future of Work Accelerator launched in May 2021. This programme is a collaboration between the RSA US, the New Jersey Office of Innovation and The Workers Lab. This collaborative initiative identified innovative solutions to improve job quality and economic security.

The RSA US has hosted and supported 12 Fellowship-driven salons and special events over the last year with an average registration of 92 participants per event.

We have covered topics that range from discussions of re-imagining education and gender equity, to the art of serendipity and practices of creativity.

For more information see: www.thersa.org/united-states

Forthcoming in 2022, RSA Oceania will co-produce a podcast on the regenerative movement titled Regeneration Rising with acclaimed author, Dr Daniel Christian Wahl.

The RSA impact report 2021–22

The RSA impact report 2021–22

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Our community

A VERY SPECIAL THANKS RSA FUNDERS AND PARTNERS 2021-22

Our partners are a vital part of the RSA’s community of changemakers. Their strategic and financial support is crucial to the RSA’s ability to create positive social change.

Festival 2022 Ltd Festival Bridge Greater London Authority High Speed Two (HS2) Ltd Innovation in Politics Institute Lancaster University Manchester Metropolitan University Network Rail NHS Lothian NHS National Services Scotland Royal Opera House Bridge Southampton City Council The Chartered Institute of Marketing

Garfield Weston Foundation Impact on Urban Health Lloyd’s Register Foundation Mastercard Center for Inclusive Growth

~~Corporate supporters~~

Aon Solutions UK Ltd BT Group Plc CMS Cameron McKenna Nabarro

First Actuarial LLP GlaxoSmithKline

Oak Foundation

Paul Hamlyn Foundation Pears Foundation People’s Postcode Lottery Porticus

Hitachi Europe Ltd Institute and Faculty of Actuaries Koninklijke Philips NV

Lane Clark & Peacock LLP LINK Natracare

The abrdn Financial Fairness Trust

The Health Foundation The JJ Charitable Trust The Marketing Trust The National Lottery Community Fund The Wolfson Foundation Treebeard Trust

Octopus Investments Ltd Olswang LLP

Royal Mail Group Ltd Teneo Strategy Ltd The Lego Group The Sage Group Plc Vitality Corporate Services Ltd Waitrose & Partners

The Centre for Ageing Better The Institute of Chartered Accountants in England and Wales

The Mighty Creatives

Trust for London Ufi VocTech Trust

~~Donations and major gifts~~

Zero Waste Scotland

~~Trusts, foundations and grant-making~~

Thanks to all our donors for their invaluable support.

~~Statutory and other organisations~~ Arts Connect

Arts Council England Autodesk Foundation

Special thanks to our anonymous Life Fellow and Major Donor who has made numerous key contributions to the work of the RSA.

Centre for Progressive Policy Comino Foundation

Artswork

Cambridge City Council Clarion Housing Group Curious Minds

Esmée Fairbairn Foundation Foyle Foundation

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The RSA impact report 2021–22

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7 Environmental reporting

Environmental reporting

The RSA continues to focus on working to establish a pathway to achieving net zero CO[2] emissions by 2025.

The facilities team have been reviewing the internal meeting rooms and informal spaces for our people as space is limited in the House. Many items of furniture are upcycled, and we are using responsibly sourced items where possible. The IT equipment has been streamlined and updated with clear instructions on how to use it, without having to contact a member of the IT team where possible. A dedicated prayer and reflection room is being created which links to our DE&I work.

e recognise the climate ~~Energy use~~ emergency and wider environmental issues, The amount of energy used year on year W such as waste, pollution will fluctuate as this depends on the type and biodiversity loss, and number of events taking place in as leading challenges of our time. the RSA House. There was a noticeable Social and environmental challenges are increase on energy consumption between interdependent and within our research 2020-21 and 2021-22 which shows we are and programmatic work we continue to returning to the new normal. Corporate explore practical responses and routes to events were slow to begin with, but we change. For example, through our work on have seen a significant increase in wedding circular and regenerative economies and on bookings. Now with many events being civic participation in shaping more equitable hybrid, involving the use of more technical futures. equipment, it is essential that we monitor our energy consumption carefully. All our The new Regenerative FuturesRegenerative Futures programme energy is ‘green’. Our public events have sets a strong direction for the organisation’s also moved to digital-first virtual events approach to sustainability through its and will have an impact on both travel external work and its internal operations – and energy use.

Without changing the current light fittings in these spaces all lamps have been changed to LED with minimal cost. Sensor lighting is in place where feasible.

The new Regenerative FuturesRegenerative Futures programme sets a strong direction for the organisation’s approach to sustainability through its external work and its internal operations – committing to going beyond doing less harm into regenerating social and environmental health.

~~Transport~~

One of our benefits to employees is a cycle to work scheme which offers a loan towards the purchase of a bicycle to encourage people that can, to cycle to work. There is an outdoor area, for RSA use only, which is secure and contains racks for staff to be able to leave their bicycles whilst at work.

The RSA’s energy consultant Inenco were recently instructed to carry out an audit in the building looking at how we operate our equipment, how our energy is used and at other activities that are carried out by our people. We await their findings and actions. Recommendations will be reviewed and discussed internally, and a plan will be made with a view to implementing what is possible and with costs permitting.

There are many challenges to managing an historic building from a sustainable and environmental perspective, but we continue to make improvements and changes where and when possible.

With flexible working hours, our people do not need to travel during the busiest times. It is recommended they use alternative methods of travel where possible. Hybrid working has certainly reduced the amount of travelling by our people.

This past year has seen us coming out of the pandemic slowly with the RSA House beginning to open again to allow our people, Fellows and visitors in. This has shown a fluctuation in our energy and resources. Working at home has proved to be highly successful for many of our people and so flexible working continues to be in place for those who can, working three days in the office and two days remotely. The ‘new normal’ is still evolving where many events are now hybrid. This should see a reduction in our daily usage over time, helping to have a positive impact on our environmental issues, including the reduction of business travel for our staff.

~~Resource use~~

During our daily operations we continue to recycle as many products as possible. These include all paper and cardboard, glass, tins and any appropriate food packing, as well as many more items.

~~Sustainability strategy for CH&CO, our catering partner~~

The RSA Journal is printed on paper sourced from managed forestry and is fully carbon offset through the World Land Trust.

CH&CO are committed to sourcing the best ingredients and products, locally where possible, for all of their catering. They have set out to achieve zero food waste to landfill, maximise their recycling and minimise waste, working alongside their venues. They have also stated that they want to be the greenest contract caterer by 2023 and achieve net zero by 2030.

Where possible we manage our water consumption by various controlled water systems in our toilet facilities. Kitchens have spray taps to restrict the amount of water coming out at any one time and our main boilers are on rotation and only come on when hot water or heating is required.

~~Pension funds~~

~~Modern slavery and human traffcking~~

Aegon manage our pension funds and have announced their commitment to achieving net zero carbon emissions across our default fund ranges by 2050, with an ambition to halve emissions by 2030.

greenhouse gas emissions or reduce existing carbon emissions by 2050. Given over 95 percent of defined contribution scheme As an organisation dedicated to social responsibility, at the forefront of social members are invested in their scheme change for over 260 years, the RSA is default, we believe it’s right to focus our absolutely committed to preventing efforts on ensuring that default funds, which slavery and human trafficking in its contain the majority of UK pension scheme corporate activities, and to ensuring members’ savings, are invested sustainably. that its supply chains are free from slavery and human trafficking.

This means that all our pension default funds will be invested in a combination of investments that actively remove

The RSA people regard the minimisation of our impact on the environment as one of our important management tasks. The society’s environmental policy is available on our website at www.thersa.org/environmental-policy and our practices are described under sustainability. The key performance indicators for our environmental data for 2021-22 are set out below and these will be updated every year.

Utilities-units Electricity-kWh Gas-kWh Water-ltrs Total energy Water-ltrs
2021-22 2021-22 2021-22 2021-22 2020-21 2020-21
Energy 420,849 558,184 n/a 979,033 460,414 n/a
Water n/a n/a 935,000 n/a n/a 382,000
% recycled energy 100 n/a n/a 100 90 n/a
Energy in tonnes CO2 221 106 n/a 327 176 n/a
% inc (dec) on 2021-22 58% 187% 145% 112% n/a n/a
Travel-units Car mileage Mini cabs Trains Flights Total air, road and train
(miles) (miles) (miles) (miles) travel carbon emissions
(tonnes CO2)
2021-22 2021-22 2021-22 2021-22 2021-22 2020-21
Miles 3,334 2,148 23,061 1,694 30,237 29,245
Tonnes 1 1 8 0 10 45
% inc (dec) on 2020-21 232% 842% 2% -62% 3% n/a
Waste Waste recycled (kgs) White paper usage (boxes) Glass recycling (ltrs)
2021-22 2021-22 2020-21 2021-22 2020-21
Volume 16,650 15 3 6,000 750
% recycled 63% 100% 100% 100% 100%
% inc (dec) on 2020-21 31% 383% n/a 700% n/a
Building Total m2of building Per m2 Total building carbon
(tonnes CO2 per m2) emissions (tonnes CO2)
2021-22 2021-22 2021-22 2020-21
Building carbon 4,598 0.098 427 178
emissions
% inc (dec) on 2020-21 0% 0% 140% n/a

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8 Financial review

FINANCIAL

REVIEW

Although the pandemic continued to have an adverse impact on income, our overall financial health remains strong.

Income for the year increased by 24 percent to £10.4m

ncome for the year increased by 24 percent to £10.4m, largely due to the lessening impact of Covid-19. I However, it remains 14 percent below pre-Covid levels (£12.1m in 2019-20). Although costs also increased, we ended the year with a net surplus on general funds (before gains on investments) of £0.3m. In 2022-23 we anticipate returning to preCovid levels of income and are aiming for a breakeven position on general reserves.

Overall, our net expenditure before investment gains was £0.9m. Investment gains were £1.6m (2020-21 £3.4m) leading to an overall increase in reserves of £0.8m.

1

2

3 4 5

55% Fellowship donations

20% Trading activities

16% Programme of projects

6% Investment income

3% Other income

Income

There were five principle sources of income as described below:

Fellowship donations increased by

2 percent to £5.7m. We are grateful to our Fellows for their continued support.

Trading activities increased from £0.3m to £2.1m as the impact of Covid-19 eased for part of the year.

Programme of projects increased by 16 percent to £1.6m.

Investment income was £0.6m (2020-21 £0.6m).

Other income was £0.3m (2020-21 £0.4m) and includes donations, legacies, insurance proceeds, secondment of our CEO to the cabinet office for six months and a Kickstart grant from Westminster City Council.

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Financial review

Expenditure

Expenditure increased by 10 percent to £11.3m (2020-21 £10m) largely due to increased trading activities.

Salaries remained frozen at 2019-20 levels and we increased the maximum employer pension contribution to 5.5 percent (from 5 percent in 2020-21) but this is still less than pre-Covid when the RSA match funded up to 10 percent of salary. Overall staff costs increased by 4 percent to £5.5m due to previously frozen vacancies being filled.

Our charitable activities comprise our programme of projects and programme of engagement which represent 87 percent of total expenditure excluding trading activities which is in line with 2021-22.

----- Start of picture text -----
39% Programme of projects
29% Programme of engagement
22% Trading activities
10% Fellowship administration
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Our expenditure on raising funds includes Fellowship administration costs and our trading activities. Expenditure on Fellowship administration was in line with previous year at £1.2m but expenditure on trading activities increased by 60 percent to £2.5m as expected given the increase in trading activity.

The Fund follows an ethical investment policy. The portfolio does not invest in companies engaged in landmine or cluster bomb manufacture or those with a significant involvement in tobacco, pornography or online gambling. These policies are supported by an active engagement programme which seeks to raise standards on a range of issues including human rights, employment practices and climate change disclosure.

Investments and investment policy

Most of the RSA’s funds are invested in securities. The RSA’s investment policy targets a long-term real rate of return of 4 percent per annum.

The RSA has a seat on the CCLA Ethical Advisory Committee which enables us to be part of an important conversation on fossil fuel divestment. We believe that this is the best way in which we can invest our funds in a sustainable way and exert the most influence on the companies in which we invest given the size of our portfolio.

Of those funds invested in securities, the majority are invested in the COIF Ethical Charities Investment Fund which aims to provide a long-term total return comprising growth in capital and distributions. The portfolio is an actively managed, diversified portfolio of assets designed to help protect both present and future beneficiaries from the effects of inflation. It consists primarily of equities but also may include property, bonds and other asset classes.

During the year there were gains in the net market value of investment funds of £1.6m (2020-21 £3.4m) and investment income was £0.6m (2020-21 £0.6m).

Reserves

The RSA has total reserves of £32.6m (2020-21 £31.8m). These include:

• Endowment funds of £11.6m (2020-21 £10.5m) which are invested in the CCLA Ethical Investment Fund.

(2020-21 £4.1m). Of this, £0.3m relates to restricted project funds and £0.7m relates to historical donations. See note 11 of the financial statements for further information on the restrictions. The reduction since 2020-21 is due to the reclassification of Shipley Income Fund as unrestricted due to the

restrictions on it’s use being aligned with the charitable objectives of the RSA.

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36% Endowment
34% Designated
27% General
3% Restricted
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Reserves policy

It is important to ensure the RSA is both financially sustainable in the long term and able to cover its operational expenditure in the short term. To this end, the trustees have agreed that the charity should hold at least three months of unrestricted cash expenditure in general reserves.

General reserves are defined as unrestricted funds less fixed assets and the designated legacy reserve. This reflects those funds that the RSA could draw on in a situation of serious need. On 31 March 2022 general reserves were £9.0m (202021 £8.9m).

o £9m is general reserves.

Unrestricted cash expenditure represents the budgeted operating costs for the following year, less depreciation, less the direct costs of hospitality which would not be incurred if activities ceased, and the costs of restricted activities which have their own restricted funding streams. The budgeted unrestricted cash expenditure for 2022-23 is £10.7m (2021-22 £10.4m).

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Financial review

This means we have 10 months of unrestricted cash expenditure in general reserves (2020-21: 10 months) which is comfortably above the minimum required by our policy. The trustees are conscious that holding too many reserves is not the best use of charitable funds. However, given the change in strategy which is underway and our ambitious plans for the future, they consider it prudent to maintain this level of reserves for the time being. Work is underway to review our reserves policy in 2022-23 to ensure it aligns with the underlying risks facing the organisation.

Grant making policy

The RSA achieves its charitable objects, in several ways which include providing grants, providing non-financial support, and carrying out research. Support is provided in a range of different ways, depending on the nature and objectives of each programme.

There is no set allocation of the annual budget for overall grant expenditure, rather, the RSA identifies the desired impact and the most appropriate method of delivery. Where grants are considered to be the most appropriate funding mechanism, the RSA sets out specific criteria for each grant upfront. These criteria vary from grant to grant and they are made available on the RSA’s website where open calls are invited.

Applications are then assessed against these criteria and awards made considering:

The period for which grants are awarded depends upon the programme but typically lasts under one year. Grants are monitored regularly, and appropriate progress reports are required from recipients. See note 5 for details of grants approved and payable in the year.

Fundraising disclosure

The RSA approaches fundraising through the lens of broadening and growing its Fellowship. Fellowship of the RSA is a charitable subscription which generates unrestricted income for the RSA’s charitable purposes. Recruitment of new Fellows is through nomination; this is either via staff, existing Fellows or researched invitation.

The RSA does not work with professional fundraisers in relation to personal fundraising but does build relationships with other networks and membership bodies to invite nominees. The RSA will also from time to time run fundraising campaigns with its Fellows to support pieces of work or projects that it takes on.

Professional fundraisers are only used in making grant applications that are outside of its expertise. The last time this occurred was in 2017-18.

The RSA monitors fundraising compliance through its own internal processes; all third parties working with the RSA are required to sign and indemnify the RSA through a data sharing agreement where data is shared. It is the RSA’s policy not to share the data of its Fellows without consent, except where necessary, for example with its mailing house to enable Fellows to receive copies of the journal or governance mailings, such as for the renewal of subscriptions or voting as part of the annual AGM. No fundraising complaints were received in the year.

THE RSA APPROACHES FUNDRAISING THROUGH THE LENS OF BROADENING AND GROWING ITS FELLOWSHIP

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9 Objectives, risks, governance and management

“The encouragement of the arts manufactures and commerce… by the advancement of education in and the encouragement and conduct of research into the sustainable context within which the said arts manufactures and commerce may prosper and be managed efficiently including research on all commerce, design industry, public services, science, technology, social enterprises, voluntary, and other arts, to make both such research findings available to the public as well as all other exclusively charitable purposes…”

Our charitable objectives

he RSA was founded in 1754 as the Society for the encouragement of Arts, T Manufacture and Commerce, it was granted a Royal Charter in 1847, and the right to use the term Royal in its name by King Edward VII in 1908. The Royal Charter company was registered as a charity in England and Wales in 1963 (212424) and is also registered in Scotland (SC037784). The RSA’s charitable objects are defined within its Royal Charter as:

“the encouragement of the arts manufactures and commerce... by the advancement of education in and the encouragement and conduct of research into the sustainable context within which the said arts manufactures and commerce may prosper and be managed efficiently including research on all commerce, design industry, public services, science, technology, social enterprises, voluntary, and other arts, to make both such research findings available to the public as well as all other exclusively charitable purposes...”

The trustee board

The board of trustees is the governing body of the RSA and consists of up to 14 members, of which five are directly elected to the board by the Fellowship, a further two by the Fellowship council from within their number, up to five Fellows elected by the board and two by RSA affiliates or other international representations. Trustees are elected or appointed for a three-year term, and may serve a second three-year term, save for Fellowship council trustees who serve for the currency of the Fellowship council, which is two years. The board met

formally four times during 2021-22, as well as attending an additional annual away day. Day-to-day management of the RSA is delegated to the leadership team by the trustees; the leadership team attend all board meetings.

The board has established three permanent committees, each with specific terms of reference and functions that are delegated by the board, and with a board-appointed trustee as chairman: Audit and Risk (which has three external members), Nominations and Governance (which includes three members from the Fellowship council), and People and Remuneration. A representative of the leadership team attends all committee meetings. The external auditors attend one meeting a year of the Audit and Risk Committee.

The board appoints the directors of the RSA’s two trading subsidiaries, RSA Adelphi Enterprises Ltd, which has one external non-executive director, and RSA Shipley Enterprises Ltd. The directors of the subsidiaries meet as necessary. The board also monitor the companies’ performance.

All trustees and directors receive a tailored induction programme upon joining the RSA and are regularly updated on relevant issues through the board and committee structures. Trustees have noted the Charity Governance Code, as refreshed in December 2020, and agree to the principles it contains. Its principles are incorporated into the trustee induction programme.

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Objectives, risks, governance and management

Fellowship representation

An important part of the governance of the RSA’s relationship with its Fellows is the Fellowship council. During the two year period 2020-22 the Fellowship council formally comprised 22 elected and seven co-opted Fellows. These are:

Specialism
Thematic councillors		 Specialism
Thematic councillors
Programme councillors
Sarah Beeching
Jan Floyd-Douglass
Christine McLean
Don Mclaverty
Peter Quirk
Tom Schuller
Matthew Treherne
Area
Area councillors
Central Clare Gage
Rachel Sharpe
Ireland Tony Sheehan
Robert Worrall
London Yemi Adeola
Nicola Halifax
North Melanie Hewitt
Paul Ingram
Scotland Elliot Alexander Goodger
Stephen Coles
South East Denise McLaverty
Eileen Modral
South West Neil Beagrie
Peter Jones
Wales Hywel George
Dee Gray
Global Nishan Chelvachandran
Enrique Mendizibal
Oceania Marion Lawie
Kim Shore
US Hosan Lee
Jaylena D Lomenech

Fellowship council. In 2020 following the appointment of a new council Nick Parker and Lucy Griffiths were replaced by Don McLaverty and Yemi Adeola.

The Fellowship council elects two representatives to the board of trustees, and the terms of reference specify that at least one of the representatives would be either the chair or the deputy chair of the

Principal risks and uncertainties

In May 2019 the trustees and management adopted a formal risk policy statement which sets out an approach to risk as well as the board’s appetite for risk under the headings financial and governance, environmental and reputational, charitable work and Fellowship, RSA Global and the RSA House. The risk register itself considers the major risks to which the RSA is exposed, comprising operational, financial, environmental, governance, and law and regulatory risks in line with the risk policy statement. The risk register summarises these potential risks and assesses their likelihood and potential impact. Controls have been identified to limit each of the risks, and responsibility for their management allocated to nominated individuals or directors, and the director charged with supervision. Key risks are regularly reviewed by the Audit and Risk Committee with a different area of the business reviewed in-depth at each quarterly meeting. During 2021-22 we started a review of the approach taken to risk and this will be completed in 2022-23.

At the end of 2021-22 the key risk relates to the implementation of our new strategy: Design for Life, and the shift in organisational culture that this will require.

In addition, wider risks arise from the RSA being an organisation which aims to provide a unique platform for new ways of thinking, creating and influencing, the RSA needs to be ahead of the competition in the ideas which it showcases, how it presents those ideas, and how it uses those ideas to gain broad influence and mobilise them for real world impact. The flow of funding for the RSA’s charitable work, its ability to attract partners to work with and the capacity to continue to build its Fellowship base all depend on the success of standing out from the crowd. This

requires continued investment in digital technology and continued exploration of new methods of drawing in ideas, and new forms of presentation and dissemination including maintain a clear voice in a crowded marketplace.

Trading subsidiary risks are monitored through the respective boards and generally covered by the group risk management policy and statement as well as a separate risks schedule for RSA Adelphi Enterprises Ltd. Apart from the matters arising from its closure due to Covid-19, the primary risks for RSA Adelphi Enterprises Ltd are the ensuring of ongoing quality standards and ensuring forward bookings. This is monitored through monthly as well as more formal quarterly meetings with CH&CO, who run Adelphi Enterprises Ltd on the RSA’s behalf on a commission basis and separately also maintain a risk register. CH&CO conduct six monthly internal audits covering health and safety, food hygiene and general standards, although these were paused during Covid-19 with the closure of RSA House, and restarted as trading resumed. Once a year the RSA Adelphi Enterprises Ltd reviews the audit outcomes. The primary risk for RSA Shipley Enterprises Ltd is the need to control its costs and ensure all projects run profitably; this is achieved through project forecasting and time recording to ensure each project makes a profitable contribution.

Day-to-day management of the RSA is delegated by the board of trustees to the leadership team.

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Objectives, risks, governance and management

Statement of public benefit

Remuneration policy

The trustees confirm that they have complied with the duty laid out in Section 17 of the Charities Act 2011, to have due regard to public benefit guidance published by the Commission in determining the activities undertaken by the society. The RSA’s objectives, as laid down in our Royal Charter, are set out on page 35.

The RSA operates a broad banded salary structure for all roles including leadership level roles, based on job evaluation and benchmarking using XpertHR. Pay levels are based upon paying 5 percent above the median level in order to enable us to attract the high-quality staff that we require. The annual pay settlement is based on an award to reflect trends in reward and market pay, the inflationary environment and ensuring the affordability of all employees who have passed their probationary period and are not subject to a formal capability or conduct process (generally a percentage increase). The annual pay review is agreed by the leadership management team, signed off by the People and Remuneration Committee and then ultimately approved by the trustee board as part of the annual budget. Given the unique nature of the Covid-19 crisis no pay award was made during 2020-21 or

This Impact Report describes the benefits of the RSA’s activities which relate directly to the RSA’s aims and objectives:

The board is aware of the need for transparency in how pay is set and its impact on different groups within the organisation.

Key management personnel

The trustees consider that the leadership team, as identified on the inside front cover, comprise the key management personnel. Leadership team pay is signed off on an individual basis by the People and Remuneration Committee based upon individual performance and comparisons provided by XpertHR’s annual voluntary sector salary survey for the relevant year.

and influential, and its work, which is given voluntarily, contributes to the capacity of the society to pursue its charitable objects.

The trustees review the activities of the RSA against its aims on an ongoing basis and are satisfied that all activities continue to be related to those aims. No specific issues of detriment or harm have been identified. Ultimately, wider society will benefit from the charity’s activities, and this is in keeping with the spirit of the RSA charter. The RSA operates throughout the whole of the United Kingdom, through the website, and through approximately 30,000 Fellows around the world. It has affiliate non-profit organisations in Australia and the United States. Benefits are not confined to any group and the wider benefits of the RSA’s activities are intended to include the public.

The charity’s trustees are responsible for keeping accounting records in respect of the charity, which are enough to show and explain all the charity’s transactions, and which are such as to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to ensure the accounts comply with the Charities Act 2011. The trustees are responsible for safeguarding the assets of the charity, and hence for taking reasonable steps towards the prevention and detection of fraud and other irregularities.

Statement of trustees’ responsibilities

The law applicable to charities in England, Wales and Scotland requires trustees to prepare financial statements for each financial year, which give a true and fair view of the charity’s financial activities during the year and of its position at the year’s end. In preparing these financial statements, the trustees should follow best practice, and:

By order of the board of trustees.

Tim Eyles Chair of the RSA

19 July 2022

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10 Independent auditor’s report to the trustees of the RSA (the royal society for the encouragement of arts, manufactures, and commerce)

Opinion

Basis for opinion

e have audited the financial statements of the RSA (the ‘parent charity’) W and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the group statement of financial activities, the group and parent charity balance sheets, the group cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom accounting standards, including financial reporting standard 102, the financial reporting standard applicable in the UK and Republic of Ireland (United Kingdom generally accepted accounting practice).

We conducted our audit in accordance with international standards on auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s ethical standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In our opinion the financial statements:

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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’s and 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.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 or the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 39, they 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.

In preparing the financial statements, the trustees are responsible for assessing the group and 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 to liquidate the group or parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and report to you in accordance with regulations made under those Acts.

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.

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Independent auditor’s report

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, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charity to cease to continue as a going concern.

• obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

• we obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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Independent auditor’s report

11 Financial statements

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011 and Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity’s trustees those matters which we are required to state to them in an auditor’s report addressed to them and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity’s trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Stickland (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

1 August 2022

9 Appold Street London EC2A 2AP

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

Group statement of financial activities for the year ended 31 March 2022

General Designated Restricted Endowment
funds funds funds funds 2022 total 2021 total
Notes £‘000 £‘000 £‘000 £‘000 £‘000 £‘000
Income and endowments from:
Donations and legacies
Fellowship donations 5,695 - - - 5,695 5,596
Other donations and legacies 72 - - - 72 200
Trading activities 2,087 - - - 2,087 293
Investment income 582 - 45 - 627 634
Charitable activities
Programme of projects 446 - 1,188 - 1,634 1,414
Programme of engagement 22 - - - 22 35
Other income 239 - - - 239 228
Total income 2 9,143 - 1,233 - 10,376 8,400
Expenditure on:
Raising funds
Fellowship administration 1,122 57 2 - 1,181 1,190
Trading activities 2,110 360 - - 2,470 1,541
Charitable activities
Programme of projects 2,664 417 1,296 - 4,377 4,133
Programme of engagement 2,968 155 104 - 3,227 3,173
Total expenditure 3 8,864 989 1,402 - 11,255 10,037
Net income/(expenditure)
before netgains/(losses)on investments 279 (989) (169) - (879) (1,637)
Netgains/(losses)on investments 8 681 - 75 891 1,647 3,412
Net income/(expenditure) 960 (989) (94) 891 768 1,775
Transfers between funds 11 (1,825) 4,507 (2,932) 250 - -
Net movement of funds (865) 3,518 (3,026) 1,141 768 1,775
Reconciliation of funds
Total funds brought forward 9,836 7,416 4,073 10,492 31,817 30,042
Total funds carried forward 8,971 10,934 1,047 11,633 32,585 31,817

All incoming and outgoing resources derive from continuing operations. The group has no gains and losses other than those recognised in this statement of financial activities. The accompanying notes form part of these financial statements.

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Financial statements

Financial statements

Group cash flow statement for the year ended 31 March 2022

Group cash fow statement
for the year ended 31 March 2022
2022 2021
£‘000 £‘000
Reconciliation of net cash provided by/(used in) operating activities
Net outgoing resources for the year before net gains/(losses) on investments
Interest received and income from investments		 (879)
(627)		 (1,637)
(634)
Depreciation
Amortisation		 654
137		 635
101
(Increase)/decrease in debtors
Decrease/(increase) in stock
(Decrease)/increase in creditors
Net cashprovided by/(used in)operatingactivities		 (523)
(14)
490
(762)		 828
12
(213)
(908)
Cash flow from investing activities
Dividend, interest and rents from investments
Purchase of property, plant and equipment
Proceeds from sale of investments		 627
(627)
1,200		 634
(666)
610
Purchase of investments - -
Net cash provided by/(used in) investing activities 1,200 578
Change in cash and cash equivalents in the reporting period 438 (330)
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period		 1,890
2,328		 2,220
1,890

Group and charity balance sheet for the year ended 31 March 2022

Group Group RSA RSA
2022 2021 2022 2021
Notes £‘000 £‘000 £‘000 £‘000
Fixed assets
Intangible assets 7 376 247 376 247
Tangible fixed assets 7 10,328 10,621 10,328 10,621
Investments 8 20,330 19,883 20,330 19,883
31,034 30,751 31,034 30,751
Current assets
Stocks 21 7 - -
Debtors 9 994 471 843 446
Short term deposits and cash at bank 2,328 1,890 1,526 1,585
3,343 2,368 2,369 2,031
Creditors: amounts fallingdue within oneyear 10 (1,779) (1,242) (1,235) (1,006)
Net current assets 1,564 1,126 1,134 1,025
Total assets less current liabilities 32,598 31,877 32,168 31,776
Creditors: amounts falling due after more than one year 10 (13) (60) - (35)
Total assets less liabilities 32,585 31,817 32,168 31,741
Unrestricted funds – charity 19,488 17,176 19,488 17,176
Unrestricted funds – trading subsidiaries 417 76 - -
Restricted funds 1,047 4,073 1,047 4,073
Endowment funds 11,633 10,492 11,633 10,492
Total funds 11 32,585 31,817 32,168 31,741

The financial statements were approved by the board of trustees on 19 July 2022 and were signed on its behalf by:

Tim Eyles Jill Humphrey Chair Co-treasurer

The accompanying notes form part of these financial statements.

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Financial statements

31 March 2022 Notes to the financial statements

1. Accounting policies

the board of trustees as well as the chair of the board, and therefore holds control in the organisation’s governance structure. This US entity is not consolidated on a line by line basis, as this would not materially affect the figures reported in, or presentation of, the consolidated accounts.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

Expenditure

Expenditure is charged on an accruals basis, inclusive of irrecoverable VAT. Expenditure incurred on support departments is apportioned to the activity area based on the appropriate driver, such as full time equivalent (FTE) or floorspace.

Basis of preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain tangible fixed assets and the inclusion of fixed asset investments at market value as stated in the relevant note(s) to these accounts. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest thousand pounds. The charity constitutes a public benefit entity as defined by FRS 102.

Operating leases

The RSA has an affiliation agreement with RSA Australia + New Zealand (RSA ANZ) headquartered in Australia, a separate corporation established for charitable purposes under the laws of the Commonwealth of Australia. As per the articles of incorporation of RSA ANZ, RSA appoints half of the members of the board of trustees as well as the chair of the board, and therefore holds control in the organisation’s governance structure. RSA ANZ is not consolidated on a line by line basis, as this would not materially affect the figures reported in, or presentation of, the consolidated accounts.

Lease expenses are recognised as ‘operating leases’ relating to capital equipment which the RSA does not own. The annual rentals are charged to the statement of financial activities on a straight line basis over the lease term.

Intangible assets and amortisation

Intangible assets costing more than £500 are capitalised and included at cost including any incidental costs of acquisition. Amortisation is calculated on the cost of the intangible assets on a straight line basis over the expected useful life of 3-5 years.

Tangible fixed assets and depreciation

Going concern

Tangible fixed assets costing more than £500 are capitalised and included at cost including any incidental costs of acquisition. Tangible fixed assets are stated at cost with the exception of certain pictures, books and antiques which are stated at a notional value adopted in earlier years and are not depreciable. These items are not considered heritage assets as defined in FRS 102.

These financial statements are prepared on the going concern basis. The trustees have a reasonable expectation that the group will continue in operational existence for the foreseeable future and are not aware of any material uncertainties which may cause doubt on the group’s ability to continue as a going concern.

The group financial statements comprise those of the RSA and its wholly owned subsidiaries, RSA Adelphi Enterprises Limited and RSA Shipley Enterprises Limited. The results of the subsidiaries are consolidated on a line by line basis.

Income and endowments

Depreciation is calculated on the cost of the fixed assets on a straight line basis over the following expected useful lives:

Donations, including Fellowship donations, including Fellowship subscriptions, are accounted for on a cash basis. Income from grants is accounted for in line with the SORP. All grants are accounted for when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity or a time related condition, are recognised when the charity becomes unconditionally entitled to the grant. All other incoming resources are accounted for on an accruals basis, with income relating to specific periods apportioned over the accounting periods to which it relates. Restricted income is used in accordance with specific restrictions imposed by donors.

The RSA has a Memorandum of

Understanding with RSA Academies, a charitable company limited by guarantee of which the RSA is the sole member. RSA Academies is not consolidated on a line by line basis, as this would not materially affect the figures reported in, or presentation of, the consolidated accounts.

Freehold premises

200 years from 1978

Building improvements between 10 and 40 years

Furniture and fittings between 3 and 5 years

The RSA has an affiliation agreement with the Fellows of the RSA in the United States, a separate corporation established for charitable purposes under the laws of the Commonwealth of Pennsylvania. As per the bye-laws of the Fellows of the RSA in the US, RSA appoints half of the members of

Investments

Investment assets are included in the balance sheet at market value. Unrealised gains and losses on revaluation and realised gains and losses on disposal are taken to the statement of financial activities and dealt with in the relevant fund.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Cash and cash equivalents

Cash and cash equivalents include unrestricted and restricted cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are recognised as current assets due to be realised within one year or less. As such it is not necessary to amortise these assets.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from

suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised as current liabilities and as such it is not necessary to amortise these liabilities.

Funds

Unrestricted funds may be spent in accordance with the RSA’s charitable objects at the discretion of the trustees. A designated fixed asset reserve has been created to highlight the value of unrestricted funds tied up in freehold premises and building improvements. A designated legacy reserve has been created to identify legacy receipts where there is an expectation to honour the non-binding wishes of the legator in the way that we spend the monies received.

Restricted funds arise from specific grants for individual projects, appeal receipts for specific purposes and income derived from endowment funds which must be used for restricted charitable purposes.

The capital of the James Cranstoun bequest and Angus Millar trust endowment funds are required to be retained in perpetuity, while the income must be used for restricted charitable purposes. The capital of the Shipley endowment fund may be used in specific limited circumstances, while the income must be used for charitable purposes. The capital elements of all endowment funds accrue investment gains and losses.

Pension costs

For group personal pension schemes the amount charged to the group statement of financial activities in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either creditors or debtors in the balance sheet.

Judgements and key sources of estimation uncertainty

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue from performance related grants and contracts is assessed on an individual basis with revenue earned being ascertained based on the stage of completion of the contract. This is estimated using a combination of the milestones in the agreement and the time spent to date compared to the total time expected to be required to undertake the agreement. Estimates of the total time required to undertake the agreement are made on a regular basis and subject to management review. These estimates may differ from the actual results due to a variety of factors such as efficiency of working, accuracy of assessment of progress to date and client decision making. See notes 9 and 10 for disclosure of the amount by which revenue exceeds progress billing (accrued income) or billing exceeds revenue (deferred income).

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Financial statements

continued Notes to the financial statements

2. Income and endowments

Income from
Split of income
2022		 Donations and
legacies
£‘000		 other trading
activities
£‘000		 Investment

income
£‘000
Programme

of projects

£‘000		 Programme of

engagement

£‘000
Other

income

£‘000
2022

total

£‘000
Fellowship 5,695 - -
-
-
-
5,695
Donations and legacies (individuals) 17 - -
-
-
-
17
Commercial organisations 35 - -
410
22
207
674
Charitable trusts and foundations - - -
1,103
-
-
1,103
Public sector bodies 20 - -
106
-
32
158
Trading activities - 2,087 -
-
-
-
2,087
Fees income - - -
15
-
-
15
Dividends, interest and rent income - - 627
-
-
-
627
5,767 2,087 627
1,634
22
239
10,376
Income from
Donations and other trading Investment Programme Programme of Other 2021
2021 legacies
£‘000		 activities
£‘000
income
£‘000		 of projects
£‘000		 engagement
£‘000		 income
£‘000		 total
£‘000
Fellowship 5,596 - -
-
-		 - 5,596
Donations and legacies (individuals) 56 - -
42		 - - 98
Commercial organisations 43 - -
221		 4 - 268
Charitable trusts and foundations 75
-		 -
1,081		 3 - 1,159
Public sector bodies 26
-		 -
47		 - 200 273
Trading activities
Fees income		 -
-
293

-		 -
-
-

23
-
28		 -
28		 293
79
Dividends, interest and rent income -
-		 634 -
-		 - 634
5,796 293 634 1,414 35 228 8,400

Donations and legacies income includes Fellowship income, unrestricted donations and legacies. This includes £18,000 of Covid-19 related support from Westminster Council (2021: £101,000) (£75,000 unrestricted grant from the Wolfson Foundation, £26,000 in grants from Westminster Council).

Income from other trading activities comprises the income generated through the trading subsidiaries, RSA Adelphi Enterprises Ltd and RSA Shipley Enterprises Ltd. This amounted to:

– From RSA Shipley Enterprises Ltd., for the provision of consultancy services, £260,000 (2021: £191,000).

Programme of projects and engagement comprise all funding received towards supporting these particular charitable activities”. Please add it above other income.

Other income comprises fee and royalty income generated by the CEO, journal and library, a government furlough grant and insurance proceeds.

3. Expenditure

Expenditure on
2022		 Direct
costs
£‘000
Apportioned

support

£‘000
2022

total

£‘000
Raising funds
Fellowship administration 915
266
1,181
Trading activities 1,938
532
2,470
Charitable activities
Programme of projects 3,282
1,095
4,377
Programme of engagement 2,478
749
3,227
Total expenditure 8,613
2,642
11,255
Direct
Apportioned
2021
2021 costs
£‘000
support

£‘000
total

£‘000
Raising funds
Fellowship administration 887
303
1,190
Trading activities 1,024
517
1,541
Charitable activities
Programme of projects 2,990
1,143
4,133
Programme of engagement 2,254
919
3,173
Total expenditure 7,155
2,882
10,037

Direct costs are allocated to categories of activity as follows:

The external audit fee was £40,000 (2021: £35,000). Fees paid to the auditors for non audit services were £3,000 (2021: £3,000).

Where expenditure cannot be directly allocated it represents support costs (see analysis of apportioned support costs on the following page) and is apportioned on a basis consistent with the use of resources, for example the number of full-time equivalent staff or floor space. Costs relating to external communications have been included in the direct costs of the activities which they support.

Total expenditure excludes the value of work contributed by Fellows to the activities of the RSA.

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Financial statements

continued Notes to the financial statements

3. Expenditure – continued

3. Expenditure – continued

Analysis of apportioned support costs
2022		 Fellowship
administration
£‘000
Trading

activities

£‘000
Programme

of projects

£‘000		 Programme of

engagement

£‘000
2022

total

£‘000
Establishment 26
334
93
68
521
Executive management 46
38
192
130
406
Finance 33
27
137
93
290
Human resources 60
49
250
170
529
Information technology 71
59
297
202
629
Governance 30
25
126
86
267
Total 266
532
1,095
749
2,642
Fellowship Trading Programme Programme of 2022
Establishment
2021		 administration
£‘000
25		 activities
£‘000
311		 of projects
£‘000
89		 engagement
£‘000
64		 total
£‘000
489
Executive management 60 12 140 259 471
Finance 36 32 151 98 317
Human resources 80 71 336 220 707
Information technology 64 57 268 175 564
Governance 38 34 159 103 334
Total 303 517 1,143 919 2,882

4. Trustee and staff costs

Trustees

Members of the trustee board and committees do not receive any remuneration for their services. Travel expenses of £0.2,000 (2021: £0.4,000) were reimbursed to two trustees (2021: one). Charitable funds have been used to buy indemnity insurance for trustees at a cost of £7,000 (2021: £9,000).

Staff

The average headcount during the year was 116 (2021: 118). In addition four (2021: two) staff who assist with public lectures and front of house services were on casual contracts.

Recent audits of our staff demographics and pay and benefits demonstrate:

The RSA’s (mean) gender pay gap is -3.9 percent. This indicates that women employees overall have slightly higher pay than men. There is no bias of salary levels for people within our team who have a disability and/or are from a minority ethnic background and/or the LGBTQIAP+ community.

External consultants undertaking a pay and benefits audit during the financial year 2021-22 commented: “In overall terms, the analysis of diversity information indicates that the RSA is an exemplar employer for both diversity and pay equality.”

4. Trustee and staff costs – continued

The average number of staff employed during the year on a full-time equivalent basis was 111 (2021: 110). This was split across the organisation as follows:

This was split across the organisation as follows:
2022
2021
no
no
Raising funds 10
10
Trading activities* 9
9
Programme of projects 44
43
Programme of engagement 30
28
Support departments 18
20
111
110

The cost of these individuals was as follows:

The cost of these individuals was as follows:
2022
2021
£‘000
£‘000
Salaries 4,622
4,538
Employer’s National Insurance contributions 488
422
Pension contributions 250
213
5,360
5,173
Agencystaff costs 107
102
Total staff costs 5,467
5,275

The number of employees who earned more than £60,000 during the year was as follows:

The number of employees who earned more than £60,000 during the year was as follows:
2022
2021
no
no
£60,001 to £70,000 -
1
£70,001 to £80,000 4
2
£80,001 to £90,000 3
1
£90,001 to £100,000
£100,001 to £110,000		 1
-
1

3
£110,001 to £120,000 -
-
£120,001 to £130,000 1
-

The number of higher paid employees accruing pension benefits was:

The number of higher paid employees accruing pension benefits was:
2022
2021
Defined contributions scheme no
no
–group personalpension 8
8

The total contributions paid by the RSA into the defined contribution scheme for higher paid employees was £38,000 (2021: £35,000). The cost of key management personnel, defined as members of the executive team, including employer’s national insurance and pension contributions by the RSA was £359,000 (2021: £352,000).

There were no termination payments in the year (2021: £10,000).

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Financial statements

continued Notes to the financial statements

5. Grants/awards paid and payable

2022 2021
£‘000 £‘000
Grant creditor at 1 April
Grants approved before 31 March and payable within one year		 45
766		 34
494
Grantspaid/released duringtheyear
Grant creditor at 31 March		 (744)
67		 (483)
45

Grants approved before 31 March and payable within one year:

2022
2021
£‘000
£‘000
Grants Grants to Fellows, including Catalyst grants 106
100
Grants International affiliates 324
273
Grants RSA Academies 42
100
Grants
Awards		 Programme of projects
Student Design Awards		 276
18
1

20
Projects inc SDAs 294
21
Total 766
494

The total number of grant recipients was 56 (2021: 68), including the following institutions in receipt of grants totalling £100,000 or more:

totalling £100,000 or more:
2022 2021
£‘000 £‘000
RSA Academies 42 100
RSA US 240 199
Bayes Impact France 192 201
6. Operating leases
At 31 March, the commitment for the next year under non-cancellable operating leases relating to equipment
and the total outstanding commitment to the end of the leases were:
2022 2021
£‘000 £‘000
Within one year 6 6
In 2-5years 19 24

The rental expense charged to the statement of financial activities for the year was £16,000 (2021: £17,000).

7a. Intangible fixed assets

£‘000
Cost or valuation
As at 1 April 2021 820
Additions 266
Disposals -
As at 31 March 2022 1,086
Amortisation
As at 1 April 2021 573
Charge for the year 137
Disposals -
As at 31 March 2022 710
Net book values
As at 1 April 2021 247
As at 31 March 2022 376

7b. Tangible fixed assets

Freehold Pictures,
Building		 Furniture books and
premises
£‘000		 improvements
£‘000		 and fittings
£‘000		 antiques
£‘000		 Total
£‘000
Cost or valuation
As at 1 April 2021 4,965
10,600		 841 33 16,439
Additions - 230 131 - 361
Disposals -
-		 - - -
As at 31 March 2022 4,965 10,830 972 33 16,800
Depreciation
As at 1 April 2021 753 4,534 531 - 5,818
Charge for the year 26 497 131 - 654
Disposals -
-		 - - -
As at 31 March 2022 779 5,031 662 - 6,472
Net book values
As at 1 April 2021 4,212 6,066 310 33 10,621
As at 31 March 2022 4,186 5,799 310 33 10,328

The freehold properties at 2, 4, 6 & 8 John Adam Street and 18 Adam Street are listed as historic buildings. They are referred to elsewhere throughout the accounts as ‘RSA House’. The RSA is required by law to maintain these properties in their present form in perpetuity. The value of the freehold premises represents the historical cost of acquiring the freeholds plus the cost of additions to the buildings. It is a requirement of United Kingdom accounting standards that freehold buildings should be depreciated over their estimated useful lives. To meet this requirement a notional life of 200 years was attributed to the premises in 1978, and depreciation is therefore charged on that basis.

Fixed assets are stated at cost with the exception of certain pictures, books and antiques which are stated at a notional value adopted in earlier years and are not depreciable. The trustees do not consider that any of these items are heritage assets.

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Financial statements

continued Notes to the financial statements

8. Investment assets

Investments in government and other listed securities and Charities Official Investment Funds (COIF) at market values.

Unrestricted Restricted Endowment 2022
2021
funds funds funds total
total
Analysis of investment assets £‘000 £‘000 £‘000 £‘000
£‘000
UK 694 86 1,043 1,823
1,948
Overseas 4,965 618 7,470 13,053
13,399
Alternative investments 984 122 1,480 2,586
2,724
Freehold property 390 49 586 1,025
834
Bank deposits 701 87 1,055 1,843
978
7,734 962 11,634 20,330
19,883
Unrestricted Restricted Endowment 2022 2021
funds funds funds total total
Analysis of movement of investment assets £‘000 £‘000 £‘000 £‘000 £‘000
Investments at 1 April 2021 7,086 2,304 10,493 19,883 17,081
Reclassification
Net withdrawals
Net additions		 1,417
(1,200)
-		 (1,417)
-
-		 -
-
-		 -
(1,200)
-		 -
(610)
-
Transfers (250) - 250 - -
Revaluationgain 681 75 891 1,647 3,412
Investments at 31 March 2022 7,734 962 11,634 20,330 19,883
Revaluationgain 2021 918 387 2,107 3,412

9. Debtors

Group
2022		 Group
2021		 RSA
2022
RSA

2021
£‘000 £‘000 £‘000
£‘000
Trade debtors 572 160 282
103
Bad debt provision (23) - -
-
Prepayments
Accrued income		 159
161		 213
54		 111
161
213

54
Other debtors 125 44 125
45
Owed byRSA Adelphi/RSA Shipley - - 164
31
994 471 843
446

Accrued income relates to funds already earned but not yet received for work or activities undertaken in the current year. The accrued income which was brought forward from the previous year has been released in the current year.

10. Creditors

Group
Group		 RSA
RSA
2022
2021		 2022
2021
Amounts fallingdue within oneyear £‘000
£‘000		 £‘000
£‘000
Trade creditors 508
314		 403
307
Accruals 304
342		 259
328
Deferred project income 332
210		 306
153
Taxation and social security 162
53		 162
103
Other creditors 105
115		 105
115
RSA hospitalityincome received in advance 368
208		 -
-
1,779
1,242		 1,235
1,006

Deferred project income relates to funds already received for work or activities due to be undertaken in the coming year. The deferred project income which was brought forward from the previous year has been released in the current year.

Group
Group		 RSA
RSA
2022
2021		 2022
2021
Amounts fallingdue after more than oneyear £‘000
£‘000		 £‘000
£‘000
RSA hospitalityincome received in advance 13
60		 -
35

11. Funds

a) Movement in funds

11. Funds
a) Movement in funds
Balance Balance
1 April Gain/ 31 March
2021 Income Expended (loss) Transfers 2022
£‘000 £‘000 £‘000 £‘000 £‘000 £‘000
Unrestricted funds
Designated fixed asset reserve 6,989 - (791) - 4,507 10,705
Designated legacy reserve 427 - (198) - - 229
Shipley income fund - 370 - 120 2,932 3,422
General reserve 9,836 8,773 (8,864) 561 (4,757) 5,549
17,252 9,143 (9,853) 681 2,682 19,905
Restricted income funds
Programme of projects 387 1,188 (1,255) - - 320
Individual trusts greater than £5k:
– Shipley income fund 2,932 - - - (2,932) -
– General lecture fund 178 10 (90) 27 - 125
– Edward Boyle fund 148 4 (1) 11 - 162
– General Award fund 128 6 - 16 - 150
– James Cranstoun bequest 102 14 - - - 116
– Dick Onians lecture trust 98 3 (13) 7 - 95
– Angus Millar trust 41 2 - - - 43
– Edward Squires fund 39 5 (41) 13 - 16
– F H Andrews bequest 20 1 (2) 1 - 20
4,073 1,233 (1,402) 75 (2,932) 1,047

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The RSA impact report 2021–22

The RSA impact report 2021–22

Financial statements

continued Notes to the financial statements

11. Funds – continued

a) Movement in funds

11. Funds – continued
a) Movement in funds
Balance
1 April		 Gain/ Balance
31 March
2021 Income Expended (loss) Transfers 2022
£‘000 £‘000 £‘000 £‘000 £‘000 £‘000
Endowment funds
Shipley expendable endowment
Individual trusts greater than £10k:		 9,976 - - 847 250 11,073
– James Cranstoun bequest 446 - - 38 - 484
– Angus Millar trust 70 - - 6 - 76
10,492 - - 891 250 11,633
Total reserves 31,817 10,376 (11,255) 1,647 - 32,585

b) Restricted income funds

The restricted programme of projects fund includes grant funding which has been received during the course of the financial year to support this charitable activity. The Shipley income fund is the income generated by the Shipley endowment fund which is used to support the RSA’s programme in furtherance of its charitable objects. It was transferred from restricted to unrestricted funds in the year due to the restrictions on its use being aligned with the charitable objectives of the RSA. The Edward Boyle fund originates from a donation made by the Edward Boyle memorial trust in 1995 and is to be used, in the name of Edward Boyle, for the provision of bursaries at the University of Leeds, in addition to lectures at the University of Leeds and the RSA which should be broadly related to education, music and/or learning The general awards fund and general lecture fund were set up during the 2015-16 fiscal year and each comprise a group of funds released to restricted from endowment with the permission of the Charity Commission. The general awards fund may be used for the encouragement of arts, manufactures and commerce by the provision of awards, prizes, bursaries and grants, and the general lecture fund for the encouragement of arts, manufactures and commerce by the provision of lectures, and related costs.

c) Endowment funds

The endowment funds are trusts set up by individual donors in support of specific purposes such as named lectures and preservation of historic buildings. £440,000 income arising from the expendable endowment was included in unrestricted funds in accordance to the requirements of the funds (2021: £440,000). During 2017-18, the RSA gained permission from the Charity Commission to take a loan of up to £3.5m from the Shipley Expendable Endowment Fund to fund the redevelopment of the RSA House. Of this, £2.5m was used and was transferred to general funds in 2018-19. Repayment began in 2019-20 with the transfer of £250,000 from general funds to the endowment. No repayment was made in 2020-21 as it is paid for by the return on the redevelopment of RSA house and, due to Covid-19, RSA House made a loss in that year. Repayments resumed this financial year.

d) Analysis of net assets between funds

d) Analysis of net assets between funds
Tangible and
intangible		 Current Fund
fixed assets Investments assets Liabilities balances
£‘000 £‘000 £‘000 £‘000 £‘000
Unrestricted funds
Designated fixed asset reserve 10,704 - - - 10,704
Designated legacy reserve
General reserve		 -
-
10,704
230
7,504
7,734		 -
3,259
3,259		 -
(1,792)
(1,792)		 230
8,971
19,905
Restricted income funds -
962		 84 - 1,046
Endowment funds
Expendable		 -
11,073		 - - 11,073
Permanent -
561		 - - 561
- 11,634 - - 11,634
Total funds 10,704 20,330 3,343 (1,792) 32,585

12. Pension schemes

The consolidated statement of financial activities includes contributions by the charity to the group personal pension scheme of £250,000 (2020: £214,000).

13. Taxation

As a registered charity the RSA is not liable to taxation on its income and capital gains so long as they are used for its charitable purposes.

14. Related parties

None of the trustees have been paid remuneration. In April 2021 Andrea Kershaw was contracted, through her agency, to provide organisation review support. The fees for this work were £30,000.

15. Subsidiary undertakings

a) RSA Adelphi Enterprises Limited

The company principally operates a hospitality business within the RSA House. It is also able to undertake any other activity regarded as ‘trading’. It is a wholly owned subsidiary and is incorporated in England and Wales. Two members of the RSA trustee board sit on the board of directors but are not remunerated for this service.

The taxable profits are donated to the RSA each year by gift aid. The RSA’s investment in the share capital is £100, represented by 100 shares of £1 each. The shares are not disclosed in the balance sheet summary below because they round down to £0,000.

i) Summary of profit and loss account for RSA Adelphi Enterprises Limited (company number: 02784581)

i) Summary of profit and loss account for RSA Adelphi Enterprises
Limited (company number: 02784581)
2022
£‘000		 2021
£‘000
Turnover
Cost of sales
Gross profit		 1,825
(1,113)
712		 102
(345)
(243)
Other expenses (415) (15)
Net profit (297) (258)
Bank interest
Gift aidpaid to RSA
Net movement in funds		 -
-
297		 -
-
(258)
ii) Summary of balance sheet for RSA Adelphi Enterprises Limited
2022 2021
£‘000 £‘000
Current assets:
Stocks 21 6
Debtors 288 82
Cash 674 162
Owed by group - -
983 250
Creditors:
Creditors 105 8
Payments received on account 381 233
Owed to group 160 -
Other creditors 40 9
686 250
Net assets/share capital 297 -

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The RSA impact report 2021–22

The RSA impact report 2021–22

Financial statements

continued Notes to the financial statements

15. Subsidiary undertakings – continued

b) RSA Shipley Enterprises Limited

The company principally operates a consultancy business within the RSA House. It is also able to undertake any other activity regarded as ‘trading’. It is a wholly owned subsidiary and is incorporated in England and Wales. Two members of the RSA trustee board sit on the board of directors but are not remunerated for this service.

The taxable profits are donated to the RSA each year by gift aid. The RSA’s investment in the share capital is £1, represented by one share of £1. The share is not disclosed in the balance sheet summary below because it rounds down to £0,000.

i) Summary of profit and loss account for RSA Shipley Enterprises

Limited (company number: 08716337)

i) Summary of profit and loss account for RSA Shipley Enterprises
Limited (company number: 08716337)
2022 2021
£‘000 £‘000
Turnover 289 191
Cost of sales (100) (73)
Gross profit 189 118
Other expenses (69) (43)
Net profit 120 75
Gift aidpaid to RSA (75) (20)
Net movement in funds 45 55

ii) Summary of balance sheet for RSA Shipley Enterprises Limited

ii) Summary of balance sheet for RSA Shipley Enterprises Limited
2022
2021
£‘000
£‘000
Current assets:
Debtors 27
26
Cash 129
143
156
169
Creditors:
Creditors 31
70
Owed toparent 5
23
36
93
Net assets/share capital 120
76

c) Reconciliation of subsidiary results to group reporting

c) Reconciliation of subsidiary results to group reporting
2022 2021
£‘000 £‘000
Income from trading activities 2,087 293
Expenditure on tradingactivities – direct costs (1,938) (1,024)
Contribution to RSA overheads 149 (731)
Expenditure on tradingactivities – support costs (532) (517)
As reported in RSA consolidated financial statements (383) (1,248)
Add back support costs apportioned to activity for group reporting purposes 532 517
Add back direct costs incurred by parent allocated to activity for group reporting 713 616
Add back intercompany charges eliminated upon group reporting consolidation (445) (68)
RSA Adelphi/ShipleyEnterprises reportedprofit 417 (183)

d) Other subsidiary undertakings

The RSA also has three other subsidiary undertakings as follows, none of which are consolidated as they would not materially affect the figures reported in, or presentation of, the consolidated accounts:

(ii) RSA Australia and New Zealand, a corporation established for charitable purposes under the laws of the Commonwealth of Australia;

(iii) RSA US, a corporation established for charitable purposes under the laws of the Commonwealth of Pennsylvania.

16. Parent charity result

2022 2021
£‘000 £‘000
Income and endowments 8,763 8,175
Expenditure (10,058) (9,629)
Gift aid income from subsidiaries 75 20
Net income/(expenditure) before net gains/(losses) on investments (1,220) (1,434)
Netgains/(losses)on investments 1,647 3,412
Net movement of funds 427 1,978

17. Financial instruments

Group
Group		 RSA
RSA
2022
2021		 2022
2021
£‘000
£‘000		 £‘000
£‘000
Carrying amount of financial assets
Debt instruments measured at amortised cost 835
258		 732
233
Instruments measured at fair value throughprofit or loss 18,486
18,904		 18,486
18,904
19,321
19,162		 19,218
19,137
Carryingamount of financial liabilities
Measured at amortised cost 952
808		 768
750

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Financial statements

continued Notes to the financial statements

18. Comparative statement of financial activities

18. Comparative statement of fnancial activities
General Designated Restricted Endowment 2021
funds funds funds funds total
Notes £‘000 £‘000 £‘000 £‘000 £‘000
Income and endowments from:
Donations and legacies
Fellowship donations 5,596 - -
-		 5,596
Other donations and legacies 200 - - - 200
Trading activities 293 - -
-		 293
Investment income 166 - 468 - 634
Charitable activities
Programme of projects 221 - 1,193 - 1,414
Programme of lectures and events 35 - -
-		 35
Other income 228 - -
-		 228
Total income 2 6,739 - 1,661 0 8,400
Expenditure on:
Raising funds
Fellowship administration 1,141 49 -
-		 1,190
Trading activities 1,214 327 -
-		 1,541
Charitable activities
Programme of projects 2,588 223 1,322 - 4,133
Programme of engagement 3,006 97 70 - 3,173
Total expenditure 3 7,949 696 1,392 - 10,037
Net income/(expenditure)before netgains/(losses)on investments (1,210) (696) 269 - (1,637)
Netgains/(losses)on investments 8 918 - 387 2,107 3,412
Net income/(expenditure) (292) (696) 656 2,107 1,775
Transfers between funds 2,100 - - (2,100) -
Net movement of funds 1,808 (696) 656 7 1,775
Reconciliation of funds
Total funds brought forward 8,028 8,112 3,417 10,485 30,042
Total funds carried forward 9,836 7,416 4,073 10,492 31,817

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8 John Adam Street London WC2N 6EZ general@rsa.org.uk | 020 7930 5115 | www.thersa.org

The RSA impact report 2021–22

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