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2020-12-31-accounts

FOR THE YEAR ENDED 31 DECEMBER 2020

Registered Charity No. 213962

The Royal Society of Literature

Contents

Pages Pages
Reference and administrative details 1 2
3 to 22
23
24 to 25
Statement of Financial Activities 26
Balance Sheet 27
Statement of Cash Flow 28
Notes to financial statements 29 to 42

The Royal Society of Literature

Reference and Administrative Details

Registered charity number: 213962
Date of foundation: 1820 (Royal Charter 1825, varied 2017)
Address and contact details: Somerset House, Strand, London WC2R 1LA
info@rsliterature.org
020 7845 4679
Trustees: President:
Dame Marina Warner FBA FRSL
Chair:
Lisa Appignanesi OBE (to December 2020)
Daljit Nagra (from January 2021)
Vice-Chairs:
Bernardine Evaristo OBE (to November 2020)
Irenosen Okojie MBE (from January 2021)
Treasurer:
Colin Chisholm
Council Members:
Simon Armitage CBE (to November 2020)
Imtiaz Dharker
Louise Doughty (from November 2020)
Inua Ellams
Sir Richard Eyre CBE
Abdulrazak Gurnah
Tessa Hadley
Derek Johns (to June 2020)
Jonathan Keates
Dame Hermione Lee FBA
Susheila Nasta MBE FRSA
Michèle Roberts
Ruth Scurr (from November 2020)
Boyd Tonkin (from November 2020)
Honorary Officers: Presidents Emeriti:
Sir Michael Holroyd CBE
Colin Thubron CBE
Vice-Presidents:
Lisa Appignanesi OBE (from May 2021)
Simon Armitage CBE (from November 2020)
Mary Beard DBE FSA FBA (from November 2020)
Anne Chisholm OBE
Maureen Duffy
Bernardine Evaristo OBE FRSA FEA (from November 2020)
Maggie Gee OBE
The Hon Victoria Glendinning CBE
Jackie Kay CBE FRSE (from November 2020)
Dame Hilary Mantel CRSL
Blake Morrison (from November 2020)
Grace Nichols (from November 2020)
Sir Philip Pullman CBE CRSL
Elif Shafak (from November 2020)
Kamila Shamsie (from November 2020)
Colm Tóibín (from November 2020)
Claire Tomalin

The Royal Society of Literature

Reference and Administrative Details

Key Management: Molly Rosenberg (Director)
Martha Stenhouse (General Manager)
Royal Patron: Her Royal Highness The Duchess of Cornwall
Independent Auditor: Azets Audit Services, Chartered Accountants
2nd Floor, Regis House, 45 King William Street, London EC4R 9AN
Bankers: Barclays Bank PLC
Investment managers: Veritas Investment Management LLP
90 Long Acre, London WC2E 9RE

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

The Trustees present their report and the unaudited financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the Trust Deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK published on 16 July 2014 and update bulletin 1.

Objectives and Activities

The aim of the Society under its Royal Charter is the advancement of literature . This aim is met through three objectives :

aiming for literature to benefit the public in at least three areas:

These areas of benefit are related to the three kinds of value of culture identified in The Culture White Paper (Department for Culture, Media and Sport, 2016).

COVID-19

In March 2020, the COVID-19 pandemic led to lockdowns across the UK, with suspension of public activities and widescale disruption to all sectors, including the arts. Over the course of 2020, the RSL adapted its activities to continue working in support of

pandemic, the RSL developed a new strategy and plan for 2020 to 2025 with the RSL 200 festival.

In 2020, the RSL responded to the changing circumstances of the pandemic while continuing all of its work for readers and writers. No RSL programme of activity was cancelled in 2020, projects instead moving online and new forms of outreach, publications, awards and other initiatives introduced.

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Report of the Trustees For the Year Ended 31 December 2020

COVID-19 continued

circumstances, and onof readers and writers are supported in as many ways as possible.

Achievements and Performance 2020:

RSL 200

In November 2020 the RSL celebrated its bicentenary with a number of announcements and new initiatives launched with the five-year festival, RSL 200, marking k established in 1820 and receiving its Royal Charter and Roll Book in 1825.

Key elements of the November RSL 200 launch included:

Within Achievements and Performance 2020: (iii) honouring and encouraging great writers these programmes are explored in further detail.

The RSL 200 programme holds at its core three principles:

  1. Access literature should be accessible to people of all experiences and backgrounds. In the 21st century, this means a sophisticated digital programme, delivered across platforms, available to all people, as well as a live public programme of work with partners across the UK.

  2. Representation and celebration literature is at its most vigorous when it includes and celebrates the greatest diversity of voices and experiences. Writers from backgrounds that have not been represented or celebrated adequately in the last 200 years of British literary history will be particularly represented, encouraged, and celebrated throughout RSL 200.

  3. Excellence, past and present the RSL engages the best in British literature today and in past years. RSL 200 will work with the extraordinary diversity of literary excellence in the UK now to explore, question, and reinvigorate 200 years of British literature.

impact literature has on society and the ways in which it can change an individual life (see Future Plans ).

The RSL has continued in 2020 to work to its three key aims and overall objective of the advancement of literature with ongoing programmes alongside new initiatives:

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

(i) acting as a voice for the value of literature

flagship programmes, encompassing stimulus grants, outreach programmes, and public events, celebrating literature and its makers, and encouraging links between writers, readers, teachers, and students.

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

(ii) engaging people in literature

The RSL encourages appreciation of literature through public events with a range of partners. In March 2020 all in-person events were halted due to the COVID-19 pandemic. By moving to an entirely digital events and outreach programme, programmed in bi-monthly intervals rather than seasonally, RSL events continued to engage audiences in literature throughout 2020, despite in-person activity becoming impossible. Throughout this time, the RSL prioritised the safety of all event speakers, participants and audiences, and worked creatively to find new ways to communicate online and in print publications.

Working digitally also presented an opportunity to develop overseas audiences and to feature far more writers based outside of the UK. During this period, the RSL developed closer partnerships with Bocas Lit Fest (Trinidad and Tobago) and Centre de Cultura Contemporània de Barcelona, both of which will continue into future years. The global audiences developed through these partnerships, as well as several events featuring overseas writers, has inspired the Digital Events Pass (2021), a new means of subscription that allows audiences to access live streams of RSL events from all over the world. Presenting events digitally has also enabled the RSL to increase its national reach, working with partners throughout the UK, and with audiences who might not otherwise be able to attend events. This pilot initiative will run for 12 months, with a view to moving to a hybrid in-person/digital events model for all RSL events prioritising accessibility once we are able to return to live venues.

Despite the challenging circumstances faced by all cultural organisations throughout 2020, the RSL continued to develop its events partnerships with UK venues and organisations including the British Library, Charleston, , English PE Banned Books Week, Write & Shine, London School of Economics, Union Chapel, Bookthe University of Liverpool.

As the RSL approached its November 2020 bicentenary, it launched On the Same Page, a series of events Durham Book Festival (and New Writing North), Edinburgh Book Festival, Hay Festival, Bradford Literature Festival and Bare Lit. historic Roll Book together for conversations about their writing lives. Speakers included Anne Fine and Romesh Gunesekera, Daljit Nagra and Val McDermid, Tahmima Anam and Ian Rankin, and Nadifa Mohamed and Irenosen Okojie.

During 2020 the RSL office team became extremely proficient in producing online events in various forms across a range of online platforms. Organisations including Arts Council Northern Ireland have sought the and Fellows have regularly expressed gratitude that the RSL activities continued throughout 2020, maintaining the sense of community created by public events.

In 2020, the 29 events took place in London and online with almost 10,000 live attendees. With events broadcast online, recordings have seen a great growth in audiences, with over 100,000 views of RSL 2020 events on YouTube and other online players.

Events that were rescheduled, modified or cancelled due to the ongoing situation with COVID-19 are also noted below in italics.

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Public Events (continued)

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Book Clubs

Alongside digital events, the RSL moved its book clubs online to continue supporting its community of Members and bringing people together to appreciate great writing. The RSL convened a special summer series to celebrate the winning books of the RSL spring/summer Awards and Prizes season:

Other RSL book clubs included:

Outreach

celebrating the best of

British literature, past and present for young people and schools, through writing workshops, writing competitions, and discussions with RSL Fellows. In 2020, the RSL also began creating outreach materials for adults, through a series of online workshops, and with prisoners through a partnership with Give a Book, a charity dedicated to promoting books and the pleasure of reading in the hardest places.

As with public events, all outreach work moved online as it was not possible to conduct in-person activity. Funding was sought to support this migration to digital outreach programmes these funding streams are listed below. As in 2019, the RSL continued to draw outreach activity closer to the rest of the society's work including public events, publications, awards, prizes, and campaigns. These were:

Tall Tales, Short Stories

Give A Book - coordinating donations of books to prisoners

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Report of the Trustees For the Year Ended 31 December 2020

Outreach (continued)

Literature Matters Online - digital writing workshops and top tips

Write Across London

Membership

Membership of the Society is open to all for an initial annual fee of £60 or £40 for under 30s (reducing to £50 ts include exclusive events, free and reduced-price tickets to public events and a free subscription to the annual magazine RSL Review . With reducing take-up of Membership over the last 10 years, the RSL plans to review Membership benefits and recruitment in 2021. In 2020, as a result of the pandemic, we had to particularly consider Members who did not wish to attend online events:

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Our Mutual Friend quarterly newspaper

To retain contact with and support of those Fellows and Members who do not have easy access to the internet, the RSL launched a new quarterly print newspaper. The first issue was sent out in November and included the following features and extracts from events:

RSL Review annual magazine

The magazine includes features on a wide range of literary topics, reports on RSL activities, and a leader article

Highlights for the bumper 200[th] birthday edition included:

Online Communication and Press

Social media follow

e newsletter during 2020 rose by 31% (from 3147 in

January to 4,137 in December).

The RSL website attracted an average of 22,114 page views per month, an increase of 11% from 19,917 in 2019.

Press coverage increased in 2020 and included a wide range of online and print publications. Print included The Telegraph , The Guardian and online included The Bookseller, BookBrunch , Prospect, The TLS and BBC Radio. Particular highlights included: coverage of o Today programme. We began working with PR company The Corner Shop (now called Bread and Butter) who supported our RSL 200 announcements and secured a reading from Harriet Walter, in celebration of our 200[th] Newsnight (BBC 2 weekly reach in late November 2020 ~30,000).

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Report of the Trustees For the Year Ended 31 December 2020

(iii) honouring and encouraging great writers

Fellowship

Election as a Fellow of the Royal Society of Literature is a uniquely prestigious honour because the decision is made by other distinguished writers. To be elected, a writer must:

(i) have published at least two works of notable literary merit (in any literary form); (ii) be nominated by at least two existing Fellows of the RSL; and (iii) -Presidents.

In past years, the RSL Council has ordinarily elected approximately 15 new Fellows a year, but from 2018 increased this intake to boost the Fellowship one of which belonged to Byron, one to T.S. Eliot and one to George Eliot (introduced in 2018). As part of our 200[th] birthday celebrations, we welcomed two pens of much-loved Fellows in 2020 th birthday year birthday year 2022 when the Society hopes to be able to hold in-person celebrations ag were commissioned. Actors included: Juliet Stevenson, Simon Callow, Richard Armitage, Natalie Simpson and Adjoa Andoh.

th birthday year birthday year were commissioned. Actors included:

In 2020, with the restrictions placed on public gatherings, the RSL celebrated its new Fellows and Honorary Fellows exclusively online and through broadcast. The RSL commissioned 45 videos celebrating new Fellows and Honorary Fellows, introducing them and sharing reflections on the importance of literature to society, the writers who mean released online as a day of bicentenary celebrations on 30 November 2020.

In 2020, the following writers were made Fellows of the RSL:

Raymond Antrobus Diana Evans Michael Palin
Chloe Aridjis Peter Frankopan Sandeep Parmar
Damian Barr Salena Godden Winsome Pinnock
Cressida Connolly Colin Grant Max Porter
Susan Cooper Kirsty Gunn Sigrid Rausing
Jill Dawson Daniel Hahn Roger Robinson
April De Angelis Kerry Hudson Katherine Rundell
Jane Draycott Andrew McMillan Philippe Sands
Sasha Dugdale James Meek Jack Thorne
Yvette Edwards Kate Mosse

The RSL has also been awarding Honorary Fellowships since its foundation in 1820, in relatively small numbers. In 2017, with the revision of its Constitution and Byelaws, the Society clarified that Honorary Fellowships were to celebrate individuals who, though they may also be writers, had made a significant contribution to literature by facilitating the writing of others, for example as agents, producers, publishers or booksellers.

In 2020, the following were elected as Honorary Fellows:

Melanie Abrahams David Godwin Marina Salandy-Brown
Linda Anderson Lennie Goodings Sarah Sanders
Mair Bosworth Andrew Holgate Tom Sutcliffe
Tony Brown Shirley May Boyd Tonkin
Kate Gavron Ursula Owen Lola Young

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

The following Fellows and Honorary Fellows died during 2020:

Sir Ronald Harwood CBE Fiona MacCarthy OBE Jill Paton Walsh Ursula Holden Douglas Matthews MBE FCLIP Professor Sir Roger Scruton FBA Emyr Humphreys Derwent May Val Warner Brendan Lehane Jan Morris CBE Charles Wood

Honours

appointments were made. Six new Companions of Literature joined current CRSLs Sir Michael Holroyd, Sir Tom Stoppard, Michael Frayn, Margaret Atwood and Alice Munro. Those welcomed in 2020 are the first writers to be inaugurated in 1961 and is the highest honour the Society can bestow. It can only be held by a maximum of 12 writers at any one time. The six new Companions of Literature were as follows:

Anita Desai Hilary Mantel Philip Pullman Kazuo Ishiguro Colin Thubron

Nine new Vice-Presidents were also appointed, celebrating the great diversity of literary writers and forms in the honour bestowed on RSL Fellows by the RSL Council which provides them with lifetime voting rights in the Fellowship elections. They are elected for their service to both the advancement of literature and to the Society. They joined current Vice-Presidents Anne Chisholm OBE, Maureen Duffy, Maggie Gee OBE, The Hon Victoria Glendinning CBE, Dame Hilary Mantel, Sir Philip Pullman CBE, Claire Tomalin and Jenny Uglow OBE. The nine new Vice-Presidents were as follows:

Simon Armitage Jackie Kay Elif Shafak Mary Beard Blake Morrison Kamila Shamsie Bernardine Evaristo Grace Nichols Colm Tóibín

RSL Open

In 2020, as part of its bicentenary celebrations, the RSL launched a two-year Fellowship initiative RSL Open. On th birthday, the Society asked for public recommendations of excellent writers from communities underof writers aged 40 and under, this is only the second time that recommendations have been accepted from the public.

Each year in 2021 and 2022 public recommendations of writers will be considered by a panel of RSL Fellows, in its first year chaired by Bernardine Evaristo and including Jay Bernard, Vahni Capildeo, Ian Duhig, Cynan Jones, Val McDermid, Sinéad Morrissey, Daljit Nagra, Nikesh Shukla, Ali Smith, Jack Thorne, Colm Tóibín, and Eley Williams. The selected 30 writers each year will be elected by the RSL Council as FRSL. They will sign the historic

At the heart of the RSL is its Fellowship, which encompasses around 600 of the most eminent authors working in the English language in the UK; the new FRS convey the multiinform all that we do from judging prizes to writing new work for ou speaking at events to leading new initiatives to bring literature to the greatest possible number of people across the UK.

The Fellows elected through RSL Open will be announced in 2022 and 2023. Each year, they will be invited to sign Eliot, Lord Byron, T. S. Eliot, or new for 2020 Jean Rhys or Andrea Levy.

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Bicentenary Party

To open the year of celebrations for the bicentenary in 2020, on Tuesday 14 January the RSL held a party for the venue of the first ever meeting of the RSL in 1820. President Marina Warner welcomed all attendees and Chair Lisa Appignanesi gave an update on plans for the programmes to

Awards and Prizes

The RSL offers a number of awards and prizes to recognise literary merit and encourage writers at all stages of their careers. In 2020, due to the COVID-19 pandemic, no awards ceremonies were held and instead videos

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Report of the Trustees For the Year Ended 31 December 2020

Awards and Prizes (continued)

Funders

The RSL is grateful to the following individuals and organisations who have generously supported its work in 2020, as well as those who wish to remain anonymous:

Lucy Astor Lucy Astor Maria Bjornson Memorial Fund
Sir Christopher Ondaatje CBE Hon FRSL
Henna Bhatti Sir Michael Palin KCMG CBE FRGS FRSL
Arts Council England Portrack Charitable Trust
BDB Pitmans Charitable Trust Basil Postan
City Bridge Trust Ian Rankin OBE DL FRSE FRSL
Colin Chisholm Hon FRSL J.K. Rowling OBE FRSL
Lord Egremont DL FSA FRSL John Seaton
Ken Follett CBE FRSL Lord Skidelsky of Tilton FRHistS FRSL
Neil Gaiman FRSL The Thistle Trust
Ben Gibson Colin Thubron OBE CRSL FRSL
Granta Trust Mary-Kay Wilmers Hon FRSL
Sir Simon Jenkins FRSL Dame Jacqueline Wilson FRSL
Michael Frayn CRSL FRSL Sutton Place Foundation
Claire Tomalin FRSL Tara Getty Foundation
Hawthornden Literary Retreat
Alice Jolly

Literature Matters programme and the 1820 Club Members, whose support goes towards our bicentenary activities.

Christmas Appeal

At the end of 2019, a Christmas Appeal letter was sent out to all Members and Fellows in order to raise unsolicited donations. The total received in the following months was £12,845. We are very grateful to all those who contributed and particularly to the following individuals who were able to give over £500, received in 2020 as well as those who wish to remain anonymous:

David Baddiel

Gillian Beer

Andrew Caldecott

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Financial review

Overview

The COVIDfollowing.

From March 2020 to year-end, the RSL pursued a strategy of conservative expenditure and focused fundraising while the financial impact of COVID-19 was gradually becoming apparent. The RSL prioritised continued delivery of charitable activity whilst reducing expenditure wherever possible. The Director, in consultation with the Chair, retained all staff without significant adjustments to working hours, beyond a

The unforeseen challenges of 2020 across the UK have required all charities to review their financial positions and ensure that their position is as r funds have more than tripled in the last ten years (from £1,002,308 at year-end 2010, to £3,401,728 at yearend 2020), with growth areas specifically in new endowment and restricted funds to support charitable

Overall the RSL was able to almost match 2019 income in 2020 (£349,043 2019; £338,117 2020), and reduce expenditure, demonstrating our commitment to cost efficiencies while continuing fundraising work. (£150,797 2018; £195,483 2019; £205,612 developing programmes of work, continuing growth in unrestricted income will be key to increasing the RSL staff time and building further capacity for charitable activities to develop.

The Society introduced greater cost efficiencies in 2020 to meet the difficulties of the pandemic, reducing overall expenditure from £476,590 in 2019 to £428,280 in 2020. Charitable activities accounted for 93% of s commitment to delivering benefit to our communities of readers and writers, especially in times of hardship. The RSL has continued to prioritise partnership with other organisations to deliver the greatest benefit to audiences and to work as efficiently as possible with increased levels of activity. This will continue into 2021 and throughout the RSL 200 festival.

2020, the RSL released a designated fund from its reserves to support the planning and initiation of programmes to advance literature. This fund was the accumulated unrestricted legacy left by former Fellow nd and its expenditure over the coming years will be overseen by the Finance and HR Committee, with approval from Council.

As a guideline for trustees and for staff leads, Council approved a three-point signoff for any new programmes to be part-funded from the Future Fund:

  1. and meet two out of three of its aims (to act as a voice for the value of literature; to engage the public in literature; to recognise and encourage great writers)?

  2. Are there potential funder(s) identified to support the costs of the proposed programme? The RSL will not commit Future Fund money to support 100% of the costs of any programme. Any new initiative should introduce the RSL to a to sustain future funding.

  3. Does this programme work with current partners for the RSL, or introduce us to new partners? The RSL particularly looks to build on and develop new partnerships across the UK, outside London.

These restrictions established, overseen and monitored by the Council are subject to review in the event of times of significant difficulty. With this designated fund, the RSL is actively planning for and investing in its future, while ensuring that funds are available.

In 2021, the RSL will continue to apply for project funding on a Full Cost Recovery basis, and will also seek core funding to support its initiatives. The ongoing unrestricted income from the Fellowship has been bolstered by funding from individual donors (which increased from £34,295 in 2018 to £53,034 in 2019, but decreased to £43,191 during 2020, largely due to the pandemic), and particularly from the new 1820 Club.

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Report of the Trustees For the Year Ended 31 December 2020

Financial review continued

The RSL has worked to ensure the financial stability of the Society into the future particularly for a number of ntinued working, particularly in the challenging times of the pandemic and its recovery. As these funds relate to specific Society to grow its charitable work through a gradually increasing central staff team. These sources of funding will be in membership growth, diversified individual giving, and increased grant funding from trusts and foundations.

Reserves Policy

Taking into met in 2020, through the unrestricted funds held in the Future Fund designation, totalling £270,647 (three of the Future Fund and is able to deploy funds to cover operating costs in the event of charity closure.

The RSL had previously held unrestricted funds to cover between three and six months of total expenditure. income streams consistent over a number of years, Trustees approved a revision of the reserves policy to cover core expenditure. This is in-keeping with Charity Commission guidance and ensures

The Society holds two kinds of restricted reserves revenue funds restricted by the funder to particular charitable activities, such as events or prizes, and Endowment Funds where the capital is invested and only the growth and/or income is expended.

The RSL currently holds three Endowments:

  1. The Permanent Endowment which generates unrestricted income for the work of the Society. At the end of 2020 this fund totals £820,709 (2019: £751,321).

  2. The Literature Matters Awards Endowment income from which is spent o project funding grants, the RSL Literature Matters Awards (first awarded in 2018). At the end of 2020 this fund totals £746,207 (2019: £701,428).

  3. The Giles St Aubyn Endowment newly established by a legacy in 2016, income and growth from this fund is spent on the RSL Giles St Aubyn Awards for Non-Fiction (first awarded in 2017). At the end of 2020 this fund totals £993,389 (2019: £921,110).

The RSL 200,755 at the end of 2020; £217,307 in 2019), and the new RSL Christopher Bland Prize fund (totalling £ 325,481 at the end of 2020; £341,128 in 2019).

In line with its reserves policy, the RSL has considered its activities in the event of the charity receiving income from Members and Fellows and its restricted Awards and Prizes funds would cover the costs of three key areas of work: the annual magazine, public events, and awards and prizes. The RSL receives the bulk of its Membership and Fellowship donations in January each year, and these would offset the costs of a reduced staff and delivery of the public events and magazine programmes the core benefits of membership with the these activities beyond three months of work.

Investment Policy

, and any other funds not required to meet operational costs during the current financial year, are invested with the twin objectives of a regular and sustainable flow of income and helping ensure its future sustainability. Investment Management LLP. The investments are held in three portfolios one for the restricted funds for the RSL Ondaatje Prize, one for the RSL Giles St Aubyn Endowment, and one for the remainder of all other funds, including the Permanent Endowment and Literature Matters Awards Endowment. In 2020 the main RSL portfolio rose by 10.27% (16.2% in 2019), which is considered to be a satisfactory result. Regular reports from Veritas, our investment managers, olm Hon FRSL, who has had many years of professional fund management experience, and reports regularly to Council. The Treasurer and Director meet Veritas for a review at least annually.

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Report of the Trustees For the Year Ended 31 December 2020

Going Concern Review

In March 2020, the COVID-19 pandemic brought government issued restrictions to gatherings of people across the UK. For the Royal Society of Literature, this meant a radical adaptation of activities from 16 March 2020 onwards, into 2021. All prize ceremonies, public events, writing workshops, and celebrations moved online. The RSL worked closely with established funders during this time to direct resources to new areas of activity. With the on-going impact of the pandemic in 2021, the RSL continues to deliver all activities online and is grateful for a second year of support for adapted activities. The RSL has also secured new funding in core grants and restricted project income from trusts and foundations.

At the time of reviewing financial statements, the Trustees have considered the financial operations for 12 months following the period these accounts review. Following successful fundraising in late 2020, the RSL has brought forward unrestricted funds to support the Society through the second year of the pandemic. The RSL has also brought forward restricted funds to support initiatives postponed to 2021 after the impact of the pandemic, with agreement of these funders. This provides guaranteed support for new initiatives through the year. The Trustees have considered the fundraising targets and strategy for 2021, including a focus on multiyear funding, and are confident that this further safeguards the future of the Society. The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist.

The Society continues to plan for its long-term financial future as well as for the shorter-term, and will be conducting a legacies programme in late 2021 and early 2022 to encourage its core community of Members and Fellows to remember the RSL in their wi

endowment funds over the past years. Through cost efficiencies and diversification of income streams, with short- and longnue building our foundational base through our Permanent Endowment and Literature Matters Awards Endowment to protect new programmes of work for which there is not funding. The Trustees believe that this further supports

The budgeted income and expenditure for the 12 months following the period of these accounts are sufficient with the level of reserves for the charity to be able to continue as a going concern beyond the second year of pandemic impact. With the designated Future Fund to support the RSL in times of uncertainty, the Trustees are ar two of the COVID-19 pandemic. The period of recovery from the pandemic.

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Future Plans

In November 2020 the RSL launched its bicentenary festival, RSL 200. This marks five years of festivities 1825. A programme of activity and develop between 2020 and 2025.

Since its founding, the RSL has stood for and worked towards the advancement of literature. Throughout 2021 and over the course of the festival, the RSL will build on current work and introduce new programmes to continue in this mission with our community of readers and writers.

With the ongoing COVID-19 crisis, our lives are transformed. The RSL 200 programme will respond to the new perspectives brought by the crisis, work with the most vulnerable in our community to find their voices and process their experiences through literature, and find new ways to share literature with the greatest number of people across the UK and beyond.

In the last year, the RSL has built on partnerships with major cultural organisations, broadcasters and festivals, including the British Library, National Portrait Gallery, BBC, Hay Festival, the Norwich and Norfolk Festival, Bare Lit festival and Bradford Literature Festival, to deliver a new digital programme. While the pandemic has made it more important than ever that we work online, the RSL is committed to delivering accessible digital programmes beyond the current crisis.

Our RSL 200 programmes rely on digital development. To increase access, particularly in a post-pandemic world, the RSL will commission a new website to better serve our communities and, established, new, and future.

Foundational to all this work is the principle that creators need to be paid for their work, that their work is pivotal to British society, and that literature brings us together across borders and, languages. RSL 200 and our work over the coming years demonstrates the impact that writing and writers have on British society, and on global literary culture. The programmes that form part of RSL 200 provide evidence of how important British literature policy and decision-making, particularly in times of global health crisis.

In the context of COVID-19, the RSL is working to engage a newly digital literary landscape to celebrate international literature, and will continue to work with partners to represent the interests of literary creators across all RSL programmes. At the Royal Society of Literature, we believe that literature matters that it shapes society as well as reflecting it, and that it can change an individual life. With RSL 200, we take five years of bicentenaries to explore, interrogate and reimagine the best in British literature, past, present and future.

With a Fellowship that celebrates the great diversity of lit -year festival will explore how writers are remembered and those voices that have been written out of the last 200 years of British literature. RSL 200 will promote, encourage, and celebrate literature that represents the backgrounds and experiences of people across Britain, that is accessible to all, and that acclaims and inspires excellence in literary creativity.

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Future Plans: (i) acting as a voice for the value of literature

The RSL recognises that the pandemic will impact the timelines and delivery forms of the winning projects in 2021. The Society will work to support project leaders, extend deadlines and be flexible with the final outcomes of the projects. The RSL will continue to work with past winners on an array of -reader judging for the V.S. Pritchett Prize, supporting literary creators and extending the Awards and recipients to new audiences.

The RSL will also seek to build on the Literature Matters Awards Endowment fund with further bequests from literary supporters, increasing the number and size of Awards that can be provided annually and ensuring that the RSL has sufficient funds to manage the growth of this programme.

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Report of the Trustees For the Year Ended 31 December 2020

Future Plans: (ii) engaging people in literature

continue to develop its main events programme in partnership with the British Library , online and at the BBC Radio 3. The RSL will also maintain other partnerships, through events in collaboration with UK literature festivals. In 2021, the RSL will continue to develop its online provision of events, extending these to audiences internationally, with a new subscription, the Digital Events Pass. As restrictions relating to the pandemic ease, we plan to return to in-person events with our venue partners, to restore the sense of community such gatherings engender for our Members, Fellows and supporters. These events will always be available online too, to ensure that our world-class literary discussions are accessible and available to the greatest breath of audiences possible.

Collecting Society Africa Writes Festival Arts Council England Arts Council of Northern Ireland Asia House Bare Lit Festival Banned Books Week BBC Radio 3 British Academy British Council Camden Council Creative Access Creative Scotland The Living Knowledge Network Durham Literature Festival Embassy of Ireland English Heritage First Story Forward Arts Foundation Give A Book

Goldsmiths, University of London Hay Festival Hatchards Booksellers Islington Libraries Literary Hub Literature Wales Literature Words London School of Economics National Centre for Writing New Writing North National Literacy Trusts National Poetry Day Royal African Society Royal Commonwealth Society Royal Literary Fund School of Advanced Studies, University of London Scottish Book Trust Scottish Poetry Library

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The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Future Plans: (ii) engaging people in literature (continued)

Future Plans: (iii) honouring and encouraging great writers

With the continued disruptions of COVID-19, the RSL will use and expand on its experience of supporting and celebrating writers through digital means.

This will include:

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Structure, governance and management

Governance

----- Start of picture text -----
RSL Council
1. Finance and
Human 2. Programmes
Resources Committee
Committee
----- End of picture text -----

Key management and other human resources

The Royal Society of Literature

Report of the Trustees For the Year Ended 31 December 2020

Report and the financial statements in accordance with

applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

Approved on behalf of the board on 26 October 2021 and signed on their behalf by

....................................................................... Colin Chisholm Hon FRSL Trustee and Treasurer

............................................................................... Daljit Nagra FRSL Trustee and Chair of Council

The Royal Society of Literature

Opinion

We have audited the financial statements of The Royal Society of Literature 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. financial statements section of our report. We are independent of the charity in accordance with the ethical requirements 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that sis 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 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 trustees annual report, other than the financial statements and our auditor The trustees are responsible for the other information contained within 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 this gives rise to 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

The Royal Society of Literature

Responsibilities of trustees

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

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 charity or to cease operations, or have no realistic alternative but to do so.

s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further de https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms

Use of our report

Reports) Regulations 2008. Our audit by law, we do not accept or assume responsibility to a for our audit work, for this report, or for the opinions we have formed.

Michelle Wilkes FCA Azets Audit Services Statutory Auditors, Chartered Accountants 2nd Floor, Regis House, 45 King William Street, London EC4R 9AN

Date: 28 October 2021

Azets Audit Services is eligible to act as auditor in terms of section 1212 of the Companies Act 2006.

The Royal Society of Literature

Statement of Financial Activities

For the Year Ended 31 December 2020

Note
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
INCOME
Donations and legacies
3
45,593
42,124
-
Trusts and foundations
4
56,550
66,313
-
Charitable activities
5
57,663
6,228
-
Other trading activities
6
16,811
-
-
Investment income
7
26,313
4,978
12,862
Other income
8
2,682
-
-
__
_
_
TOTAL INCOME
205,612
119,643
12,862
__
_
_
EXPENDITURE
Raising funds
9
2,012
2,678
25,097
Charitable activities
10
232,785
165,708
-
__
_
_
TOTAL EXPENDITURE
11
234,797
168,386
25,097
__
_
_
NET EXPENDITURE AND NET
MOVEMENT IN FUNDS
BEFORE GAINS & LOSSES ON
INVESTMENTS AND
TRANSFERS
(29,185)
(48,743)
(12,235)
Net gains/(losses) on
investments
17
3,943
(1,852)
247,481
__
_
__
NET INCOME/(EXPENDITURE)
BEFORE TRANSFERS
(25,242)
(50,595)
235,246
_
_
___
Transfer between funds
22-
24
-
48,800
(48,800)
__
_
__
NET MOVEMENT IN FUNDS
(25,242)
(1,795)
186,446
_
_
___
RECONCILIATION OF FUNDS
Total funds brought forward
308,934
559,526
2,373,859
__
___
______
TOTAL FUNDS
CARRIED FORWARD
283,692
557,731
2,560,305		 Total
2020
£
87,717
122,863
63,891
16,811
44,153
2,682
__
338,117
_
29,787
398,493
_
428,280
__
(90,163)
249,572
_
159,409
_
-
__
159,409
_
3,242,319
___
3,401,728		 Total
2019
£
159,011
71,490
51,419
15,688
47,568
3,867
__
349,043
_
65,588
411,002
_
476,590
__
(127,547)
401,531
_
273,984
_
-
__
273,984
_
2,968,335
___
3,242,319

There were no recognised gains or losses other than those shown in the Statement of Financial Activities. There were no acquisitions or discontinued operations during either of the above two financial years

The notes on pages 29 to 42 form part of the financial statements.

The Royal Society of Literature

Balance Sheet

As at 31 December 2020

Note
2020
2019
£
£
£
FIXED ASSETS:
Tangible fixed assets
16
-
Investments
17
2,967,571
__
2,967,571
CURRENT ASSETS:
Stock
1,580
347
Debtors
18
32,730
34,255
Cash and bank
487,838
387,396
__
__
522,148
421,998
CURRENT LIABILITIES:
Creditors:
Amounts falling due within one year
19
(87,991)
(57,977)
__
__
NET CURRENT ASSETS
434,157
_
TOTAL
ASSETS
LESS
CURRENT
LIABILITIES
3,401,728
_
Creditors: Amounts falling due after more
than one year
20
-
__
NET ASSETS
3,401,728
~~_~~
Unrestricted funds
13,045
Designated funds
22
270,647
Restricted funds
23
557,731
Endowment funds
24
2,560,305
_
25
3,401,728
~~______~~
Approved on behalf of the board on 26 October 2021 and signed on their behalf by
......................................................................
....................................................................
Colin Chisholm
Daljit Nagra FRSL
Trustee and Honorary Treasurer
Trustee and Chair of Council		 £
597
2,880,201
__
2,880,798
364,021
_
3,244,819
___
(2,500)
______
3,242,319
~~__~~
38,287
270,647
559,526
2,373,859
____
3,242,319
~~______~~
...........

The notes on pages 29 to 42 form part of these financial statements.

The Royal Society of Literature

Statement of Cash Flow

As at 31 December 2020

Note
Net cash used in operating activities
29
Cash flows from investing activities
Dividends and interest from investments
Purchase of investments
Proceeds from sale of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalent consist of:
Cash at bank and in hand		 2020
£
(105,913)
___
44,153
(386,359)
548,561
__
206,355
_
100,442
387,396
_
487,838
~~____~~
487,838		 2019
£
(116,863)
___
47,568
(254,139)
408,591
__
202,020
_
85,157
302,239
____
387,396
~~_______~~
387,396

The notes on pages 29 to 42 form part of these financial statements.

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

1. GENERAL INFORMATION

The Royal Society of Literature is a registered charity no 213962. It meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The Society operates from Somerset House, Strand, London WC2R 1LA.

2. ACCOUNTING POLICIES

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

(a) Basis of Accounting

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 (FRS 102) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016 and Update Bulletin 2 published 5 October 2019) and the Financial Reporting Standard applicable in the United Kingdom (FRS 102) and the Charities Act 2011.

The Royal Society of Literature meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

(b) Preparation of the accounts on a going concern basis

The Society has a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future. Extra consideration has been given to the impact of the COVID-19 secured to meet expenditure, and expenditure carefully managed, the financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern beyond the first year of pandemic impact. The Trustees have assessed the impact of restrictions on the charity and financial implications and are confident that resources are sufficient to meet its liabilities for 12 months from authorising there financial statements.

(c) Fund Accounting

Unrestricted Funds

General unrestricted funds represent funds which are expendable at the discretion of the Society in the furtherance of the objects of the Society and which have not been designated for other purposes.

Designated Funds

These funds represent amounts set aside by the Society for a specific purpose as set out in note 22. They may be returned to the General fund at the discretion of the Society.

Restricted Funds

These funds represent amounts which have been restricted by the donors for use for specific purposes as set out in note 23.

Endowment Funds

Endowment funds represent those assets which must be held permanently by the charity as set out in note 24.

Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted/restricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to the fund are charged against the fund.

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

2. ACCOUNTING POLICIES (continued)

(d) Income

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

Donation income is recognised when the Society has been notified in writing of both the amount and settlement date.

Legacy income is recognised at the earlier date of the date on which either: the Society is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Society that a distribution will be made, or when distribution is received from the estate

Membership and Fellowship income is included in the period in which the income is received.

Income from charitable activities includes income earned from events and classes held by the charity. It is included in the year the event/class occurred.

Income from trading activities includes advertising income and rental income. It is included in the period in which the income relates to.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by or investment advisor of the dividend yield of the investment portfolio.

(e) Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure. It is probable that settlement will be required, and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accrual basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note (g) below.

Costs of raising funds consist of investment management fees for the period, and costs in relation to fundraising expenditure.

Costs of charitable activities consist of those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them.

(f) Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

2. ACCOUNTING POLICIES (continued)

(g) Allocation of support and governance costs

Support costs are those functions that assist the work of the Society but do not directly undertake charitable activities. Support costs include office costs, finance, personnel, payroll and governance costs which the

Governance costs comprise all costs involving the public accountability of the Society and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

Support and Governance costs are allocated to charitable activities in proportion to the direct charitable expenditure on that activity, where the charity considers that support costs are incurred as part of the delivery of that activity.

(h) Pension

scheme are charged to the Statement of Financial Activities in the period to which they relate.

(i) Operating leases

The Society classifies the rental lease as an operating lease; the title to the building remains with the lessor.

Rental charges are charged on a straight line basis over the term of the lease.

(j) Tangible fixed assets

Individual fixed assets costing £250 or more are capitalised at cost.

Depreciation on fixed assets is calculated to write off the cost on a straight line basis over their expected useful lives, at the following rates:

Computer equipment: 33.3% Website: 33.3%

(k) Fixed asset investments

Investments are a form of basic financial instruments and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between the sale proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later)

The Society does not acquire put options, derivatives or other complex financial instruments.

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

2. ACCOUNTING POLICIES (continued)

(l) Debtors

Other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Accrued income is measured at the amount due to be received.

(m) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar accounts.

(n) Creditors

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

Other creditors and accruals are recognised at their settlement amount due.

(o) Financial instruments

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

(p) Taxation

As a charity, the Society is not liable to taxation on its income or on surpluses on disposal of investments.

(q) Judgements and key sources of estimation uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 16 for the carrying amount of the property plant and equipment, and note (j) for the useful economic lives for each class of assets.

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

3. DONATIONS AND LEGACIES

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
Corporate sponsors
-
17,210
-
Individual donations
43,191
4,875
-
Legacies
-
-
-
Public sector
192
20,039
-
Donated services
2,210
-
-
_
_
____
45,593
42,124
-		 Total
2020
£
17,210
48,066
-
20,231
2,210
____
87,717		 Total
2019
£
30,600
115,112
8,400
859
4,040
____
159,011

In 2019, £63,333 of donations and legacies was attributable to the unrestricted fund, £95,678 was attributable to the restricted fund and nil was attributable to the endowment fund.

4.

TRUST AND FOUNDATIONS

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
Lucy Astor
5,000
21,500
-
Grant Trust
45,000
-
-
City Bridge Trust
-
18,338
-
Maria Bjornson Memorial Fund
-
17,005
-
Portrack Charitable Trust
5,000
-
-
Francis Arts Trust
-
2,970
-
Hawthorne
-
2,500
-
The Drue Heinz Charity
-
2,500
-
The Thistle Trust
-
1,500
-
BDB Pitmans Charitable Trust
1,000
-
-
The Chairmans Charitable Trust
500
-
-
The J P Jacobs Charitable Trust
50
-
-
Curtis Charitable Trust
-
-
-
Sutton Place Foundation
-
-
-
The Tara Getty Foundation
-
-
-
Royal library fund
-
-
-
_
_
____
56,550
66,313
-		 Total
2020
£
26,500
45,000
18,338
17,005
5,000
2,970
2,500
2,500
1,500
1,000
500
50
-
-
-
-
____
122,863		 Total
2019
£
20,440
-
-
15,000
5,000
-
-
-
-
-
-
50
1,000
5,000
10,000
15,000
____
71,490

In 2019, £36,050 of donations and legacies was attributable to the unrestricted fund, £35,440 was attributable to the restricted fund and nil was attributable to the endowment fund.

5. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
Event ticket sales
860
-
-
Prize entry fees
32
6,228
-
Membership and Fellowship
56,462
-
-
Other
309
-
-
_
_
____
57,663
6,228
-		 Total
2020
£
860
6,260
56,462
309
____
63,891		 Total
2019
£
1,344
5,348
44,083
644
____
51,419

In 2019, £46,132 of the income from charitable activities was attributable to the unrestricted fund, £5,287 was attributable to the restricted fund and nil was attributable to the endowment fund.

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

6. INCOME FROM OTHER TRADING ACTIVITIES

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
Advertising
475
-
-
Merchandise
71
-
-
Rental Income
16,265
-
-
_
_
____
16,811
-
-		 Total
2020
£
475
71
16,265
____
16,811		 Total
2019
£
750
636
14,302
____
15,688

In 2019, all the £15,688 of other trading activities income was attributable to the unrestricted funds.

7. INVESTMENT INCOME

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
Income from investments
26,222
4,978
12,862
Bank interest
91
-
-
_
_
____
26,313
4,978
12,862		 Total
2020
£
44,062
91
____
44,153		 Total
2019
£
47,420
148
____
47,568

In 2019, £27,443 of the investment income was attributable to the unrestricted fund, £6,459 was attributable to the restricted fund and the remaining £13,666 was attributable to the endowment fund.

8. OTHER INCOME

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
Income from Auctions
2,682
-
-		 Total
2020
£
2,682		 Total
2019
£
3,867

In 2019, all the £3,867 of other income was attributable to the unrestricted funds.

9. RAISING FUNDS

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
Investment management fees
407
2,678
25,097
Fundraising costs
1,605
-
-
_
_
____
2,012
2,678
25,097		 Total
2020
£
28,182
1,605
____
29,787		 Total
2019
£
31,135
34,453
____
65,588

In 2019, £34,507 of the expenditure in relation to raising funds was attributable to the unrestricted fund, £3,094 was attributable to the restricted fund and the remaining £27,987 was attributable to the endowment fund.

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

10. CHARITABLE ACTIVITIES

Unrestricted
Funds
Restricted
Funds
Endowment
Funds
£
£
£
Public Events
44,524
5,210
-
Awards & Prizes
43,601
115,650
-
Communications & Publications
86,788
4,800
-
Outreach
17,493
25,578
-
Membership & Fellowship
33,969
-
-
Research
40
-
-
Bicentenary
6,370
14,470
-
_
_
____
232,785
165,708
-		 Total
2020
£
49,734
159,251
91,588
43,071
33,969
40
20,840
____
398,493		 Total
2019
£
65,450
175,424
81,668
28,957
51,836
7,667
-
____
411,002

In 2019, £246,623 of the expenditure in relation to charitable activities was attributable to the unrestricted fund, £164,379 was attributable to the restricted fund and nil was attributable to the endowment fund.

11. ANALYSIS OF EXPENDITURE

Direct
Charitable
Support
costs
(note 12)
£
£
Public Events
40,005
9,729
Awards & Prizes
128,099
31,152
Communications & Publications
73,672
17,916
Outreach
34,646
8,425
Membership & Fellowship
27,323
6,646
Research
32
8
Bicentenary
16,763
4,077
__
_
Charitable expenditure
320,540
77,953
Raising funds
29,472
315
___
______
350,012
78,268		 Total
2020
£
49,734
159,251
91,588
43,071
33,969
40
20,840
__
398,493
29,787
____
428,280		 Total
2019
£
65,450
175,424
81,668
28,957
51,836
7,667
-
__
411,002
65,588
____
476,590

In 2019, £349,064 of the expenditure related to direct charitable expenditure, and the remaining £127,526 related to support costs.

12. SUPPORT COSTS

Governance costs (note 13)
Accountancy fees
IT costs
Rent & rates
Office costs
Depreciation
Bank charges
Meeting costs
HR costs
Staff related costs		 2020
£
14,024
12,378
4,128
31,351
2,123
597
397
109
1,397
11,764
____
78,268		 2019
£
18,470
17,453
12,976
44,279
12,441
2,152
566
1,205
1,401
16,583
____
127,526

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

13. GOVERNANCE COSTS

-
Audit fee (including VAT)
-
Non-audit fee (including VAT)
-
Over/under accrued in previous years
Other costs
Meeting costs
Trustee expenses
Total governance costs
14.
NET INCOME/(EXPENDITURE) FOR THE YEAR
This is stated after charging:
Depreciation
Operating lease costs
15.
ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND
EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL
Salaries and wages
Social security costs
Pension costs
The average number of employees by head count:		 2020
£
6,550
1,950
(550)
960
5,114
-
_
14,024
~~_~~
2020
£
597
23,410
~~__~~
2020
£
135,890
9,798
7,732
_
153,420
~~_~~
4		 2019
£
6,550
1,950
153
472
9,161
184
_
18,470
~~_~~
2019
£
2,152
36,288
~~__~~
2019
£
112,505
9,240
6,096
_
127,841
~~_~~
4

Employee time has been allocated either;

i) To direct costs on a percentage of the time spent by an employee on an activity ii) To support costs allocated on a percentage basis over all the costs.

During the year, no employee £60,000 - £70,000 (2019: none)

During 2019, no trustees (2019: £nil) were paid or received any other benefits from employment with the Society. 1 trustee (2019: 3) was reimbursed for travel and meeting expenses amounting to £32 (2019: £397).

The key management of the Society comprise the Trustees, the Director and the General Manager. The total employee benefits of the key management personnel of the Society were £94,657 (2019: £90,717).

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

16. TANGIBLE FIXED ASSETS

Website Website Computers Total
£ £ £
Cost
As at 1 January 2020 24,044 23,855 47,899
Disposals (24,044) (16,879) (40,923)
____ ____ ____
As at 31 December 2020 - 6,976 6,976
____ ____ ____
Depreciation
As at 1 January 2020 24,044 23,258 47,302
Charge for year - 597 597
Eliminated on disposal (24,044) (16,879) (40,923)
____ ____ ____
As at 31 December 2020 - 6,976 6,976
____ ____ ____
Net Book Values
At 31 December 2020 - - -
~~____~~ ~~____~~ ~~____~~
At 31 December 2019 - 597 597
~~____~~ ~~____~~ ~~____~~
17. FIXED ASSET INVESTMENTS
2020 2019
£ £
At 1 January 2020 2,496,842 2,292,829
Additions in year 386,359 254,139
Disposal proceeds (443,557) (451,657)
Gain/(losses) on investments 249,572 401,531
____ ____
At 31 December 2020 2,689,216 2,496,842
~~____~~ ~~____~~
Historical cost of listed portfolio 2,192,191 2,286,453
~~____~~ ~~____~~
Investments at fair value compromise:
Equities 2,630,358 2,439,860
Fixed interest 36,563 36,308
Balanced 22,295 20,674
______ ______
2,689,216 2,496,842
Cash within investment portfolio 278,355 383,359
____ ____
2,967,571 2,880,201
~~____~~ ~~____~~
The -end:
Taiwan Semiconductor Manufacturing Co Ltd 154,171 -
Franco-Nevada Corp -
~~____~~		 130,257
~~____~~

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

18.
DEBTORS
Other debtors
Prepayments
Accrued income
Rent deposit
19.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other creditors
Accruals and deferred income (note 21)
20.
CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
Accruals and deferred income (note 21)
21.
DEFERRED INCOME
At 1 January 2020
Additions during the year
Amounts released to income
At 31 December 2020		 2020
£
16,249
7,392
475
8,614
_
32,730
~~_~~
2020
£
19,753
5,391
62,847
_
87,991
~~_~~
2020
£
-
_
-
~~_~~
2020
£
28,371
11,108
(11,087)
____
28,392		 2019
£
16,442
9,199
-
8,614
_
34,255
~~_~~
2019
£
5,031
3,898
49,048
_
57,977
~~_~~
2019
£
2,500
_
2,500
~~_~~
2019
£
7,500
23,371
(2,500)
____
28,371

In 2017, £10,000 was received relating to of the deferred income relates to sponsorship income received for the next 4 years, at 31 December 2020, there was 1

Other deferred income relates to income from membership and subscriptions received during the year relating to 2021.

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

22. DESIGNATED FUNDS Current year

At 1 Jan
2020
New
Designation
Designation
Released
At
£
£
£
Future Funds
270,647
-
-		 31 Dec
2020
£
270,647

In advance of its bicentenary in 2020, the RSL released a designated fund from its reserves.

previously held as endowment. The designated fund and its expenditure over the coming years will be overseen by the Finance and HR Committee, with approval from Council.

As a guideline for trustees and for staff leads, Council approved a three-point signoff for any new programmes to be part-funded from the Future Fund:

  1. and meet two out of three of its aims (to act as a voice for the value of literature; to engage the public in literature; to recognise and encourage great writers)?

  2. Are there potential funder(s) identified to support the costs of the proposed programme? The RSL will not commit Future Fund money to support 100% of the costs of any programme. Any new initiative should introduce the RSL to a new fun funder to sustain future funding.

  3. Does this programme work with current partners for the RSL, or introduce us to new partners? The RSL particularly looks to build on and develop new partnerships across the UK, outside London.

These restrictions established, overseen and monitored by the Council are subject to review in the event of times of significant difficulty. This fund supports the RSL through challenging times and sures up the sition during the difficulties of the Covid-19 pandemic recovery.

22. DESIGNATED FUNDS Prior year

Future Funds
23.
RESTRICTED FUNDS
Current year
At 1 Jan
2020
£
VS Pritchett Prize fund
-
Encore Award Prize Fund
-
Ondaatje Prize Fund
217,307
Christopher Bland Prize Fund
341,128
Literature Matters Awards
-
Giles St Aubyn
1,091
International writers
-
Benson Medal
-
Public Events
-
Outreach
-
Publications
-
Bicentenary
-
____
559,526		 At 1 Jan
2019
New
Designation
Designation
Released
At
£
£
£
-
355,187
(84,540)
~~_~~
~~_~~
~~_~~
Income
Expenditure
Gains/
(losses)
Transfers
(note 22)
£
£
£
£
6,228
(6,228)
-
-
21,500
(21,500)
-
-
4,978
(19,678)
(1,852)
-
625
(16,272)
-
-
-
(20,100)
-
20,000
-
(28,800)
-
28,800
5,500
(5,500)
-
-
250
(250)
-
-
5,210
(5,210)
-
-
49,033
(25,578)
-
-
11,849
(4,800)
-
-
14,470
(14,470)
-
-
_
_
_
____
119,643
(168,386)
(1,852)
48,800		 31 Dec
2019
£
270,647
~~_~~
At 31
Dec
2020
£
-
-
200,755
325,481
(100)
1,091
-
-
-
23,455
7,049
-
_
557,731

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

23. RESTRICTED FUNDS Current year (continued)

The funds for the VS Pritchett Memorial Prize, Encore Award, RSL Ondaatje Prize and RSL Christopher Bland Prize were expended on these respective literary prizes and the associated costs of administration and prizes 13 and 14. Each year, additional costs of the RSL Ondaatje Prize restricted fund during the year.

The RSL Christopher Bland Prize Fund was newly established at the RSL in 2018. Lady Jennie Bland and a number of supporters made donations totalling £303,975 in 2018 forming a new restricted fund, to support the RSL Christopher Bland Prize for debut fiction and non-fiction writers aged 50 and over. Further donations in 2019 added to this fund. Further details of the Prize and its donors in 2020 are on pages 13 and 14 of the

The Literature Matters Awards expenditure is related to the Literature Matters Awards Endowment. Expenditure from this restricted fund relates to this set of project Awards.

The RSL Giles St Aubyn Awards expenditure is related to the Giles St Aubyn Endowment. Expenditure from this restricted fund relates to a set of non-fiction Awards, as stipulated in the legacy left by former Fellow Giles St Aubyn.

The RSL International Writers programme is a new set of annual Awards for the Society, celebrating the power Forum.

As part of bicentenary celebrations, the RSL commissioned a new Benson Medal (first awarded in 1917) from the artist Linda Crook. An RSL Fellow made a donation in support of this project for the first year of the new Medal.

and funders.

The Outreach fund in 2020 included funding from Arts Council England, the Maria Bjornson Memorial Fund, the Tara Getty Foundation, the Sutton Place Foundation and the City Bridge Trust. These supported a range of outreach programmes detailed on pages 8 and 9.

In 2020, the RSL celebrated the beginning of its bicentenary festival, RSL 200. Expenditure in 2020 supported the announcement of RSL Fellows, Companions of Literature, Vice-Presidents and new Roll Book signing pens, through a series of over 60 short films, supported by ALCS. 200[th] birthday when the restrictions of the pandemic limited all celebrations to digital form. For an overview of the RSL 200 celebrations see page 4.

23A
RESTRICTED FUNDS
Prior year
At 1 Jan
2019
Income
Expenditure
£
£
£
VS Pritchett Prize fund
-
15,287
(15,287)
Encore Award Prize Fund
-
20,440
(20,440)
Ondaatje Prize Fund
213,222
6,459
(24,891)
Christopher Bland Prize Fund
303,975
56,287
(19,125)
Literature Matters Awards
-
600
(20,600)
Giles St Aubyn
-
-
(26,300)
Public Events
-
3,100
(3,100)
School Outreach
-
5,200
(5,200)
Publications (previously
Society review (Magazine))
-
32,530
(32,530)
_
_
____
517,197
139,894
(167,473)		 Gains/
(losses)
Transfers
(note 22)
At 31 Dec
2019
£
£
£
-
-
-
-
-
-
22,517
-
217,307
-
-
341,128
-
20,000
-
-
27,391
1,091
-
-
-
-
-
-
-
-
-
_
_
____
22,517
47,391
559,526

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

24.
ENDOWMENT FUNDS
Current year
At 1 Jan
2020
£
Permanent Endowment
751,321
Literature Matters Awards
Endowment
701,428
Giles St Aubyn Endowment
921,110
____
2,373,859		 Income
Expenditure
Gains/
(losses)
Transfers
(note 22)
At 31 Dec
2020
£
£
£
£
£
-
(7,986)
77,374
-
820,709
-
(7,456)
72,235
(20,000)
746,207
12,862
(9,655)
97,872
(28,800)
993,389
___
_
_
_
_
12,862
(25,097)
247,481
(48,800)
2,560,305

24. ENDOWMENT FUNDS Current year (continued)

The Society holds three endowments:

24A ENDOWMENT FUNDS Prior year

At 1 Jan Income
Expenditure		 Income
Expenditure		 Income
Expenditure		 Gains/ Transfers At 31 Dec
2019 (losses) (note 22) 2019
£ £ £ £ £ £
Permanent Endowment 965,889 -
(11,014)		 151,633 (355,187) 751,321
Literature Matters Awards
Endowment 629,746 - (7,181) 98,863 (20,000) 701,428
Giles St Aubyn Endowment
817,216 13,666 (9,792) 127,411 (27,391) 921,110
____ _
_		 ____ ____ ____
2,412,851 13,666
(27,987)		 377,907 (402,578) 2,373,859
~~____~~ ~~_~~
~~_~~		 ~~____~~ ~~____~~ ~~____~~
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Current		 year
Unrestricted Restricted
Endowment		 Total
Funds Funds Funds Funds 2020
£ £ £ £
Fixed assets - - - -
Investments 206,511 200,755 2,560,305 2,967,571
Current assets 165,172
356,976		 - 522,148
Creditors due within one year (87,991) - - (87,991)
____ ____ ____ ____
283,692
~~____~~		 557,731
~~____~~		 2,560,305
~~____~~		 3,401,728
~~____~~

25. ANALYSIS OF NET ASSETS BETWEEN FUNDS Current year

25A ANALYSIS OF NET ASSETS BETWEEN FUNDS
Prior year
Unrestricted Restricted Endowment Total
Funds Funds Funds Funds 2019
£ £ £ £
Fixed assets 597 - - 597
Investments 289,035 217,307 2,373,859 2,880,201
Current assets 79,779 342,219 - 421,998
Creditors due within one year (60,477) - - (60,477)
____ ____ ____ ____
308,934
~~____~~		 559,526
~~____~~		 2,373,859
~~____~~		 3,242,319
~~____~~

The Royal Society of Literature

Notes to The Financial Statements

For the Year Ended 31 December 2020

26. PENSION SCHEME

The Charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £7,732 (2019: £6,733).

27. LEASE COMMITMENTS

Total future minimum lease payments under the current operating lease are as follows:

Not later than one year
Later than one and not later than five years		 2020
£
36,266
61,493
____
97,759		 2019
£
35,388
97,759
____
133,147

28. RELATED PARTY TRANSACTIONS

The following Society trustees were paid during the year for services to the Society:

29. RECONCILIATION OF NET CASH (USED IN) OPERATING ACTIVITIES

Net income
Adjustments for:
-
Interest and dividends
-
(Gains)/Losses on investments
-
Depreciation
-
Decrease in stock
-
Decrease/(Increase) in debtors
-
Increase/(Decrease) in creditors		 2020
£
159,409
(44,153)
(249,572)
597
(1,233)
1,525
27,514
_______
(105,913)		 2019
£
273,984
(47,568)
(401,531)
2,152
110
50,298
5,692
_______
(116,863)