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2020-12-31-accounts

Annual Report and Financial Statements

For the year ended 31 December 2020

x x x 41•T4

Thank you

2020 was an exceptional year in terms of both the scale of issues that musicians faced, and the philanthropic support that Help Musicians received which enabled us to support so many more musicians in real need during a time of crisis. We are hugely grateful to everyone who raised funds – from musicians raising money to help others, music lovers, community groups and companies across the music industry, the breadth of support we received made such a difference to the scale of our response. Thank you also to those who gave their time, or talents; there were so many creative endeavours launched to help musicians across the UK offering hope and reminding us all of the power of music to unite in challenging times. In particular we would like to thank the following organisations who made significantly generous donations during the year:

• TikTok

We were grateful to have been supported using public funding by Arts Council England and for collaboration with Creative Scotland on the delivery of their Hardship Fund for Creative Freelancers.

Without collaboration and philanthropic help our work would not be possible and is vital to our mission of creating a world where musicians thrive.

Help Musicians is honoured to have Her Majesty The Queen as Patron and as we head into our Centenary year we are enormously thankful for her long standing support.

Graham Sheffield CBE

Chairman

6 7

Chairman’s message

Chief Executive’s message

11

Highlights from 2020

14 Programme

18 Engagement

22 Business services

24

Governance

28 Financial review

33 Looking forward to 2021

34 Principal risks and uncertainties

37 Statement of Trustees’ responsibilities

38 Independent auditor’s report 43 Summary

Summary

Contents

Help Musicians is the working name of the Musicians Benevolent Fund, a registered charity (228089), a registered charity in Scotland (SC049625) a registered company (England 00252783) limited by guarantee and a Trust Corporation. The registered office is 7–11 Britannia Street London WC1X 9JS helpmusicians.org.uk

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CHIEF EXECUTIVE’S MESSAGE 7

CHAIRMAN’S MESSAGE

Chairman’s message

In a year of so many challenges there were positive stories. We were delighted to announce the appointment of our first female President, Dame Evelyn Glennie, whose musicianship, international profile, and leadership in the world of music strengthens our ability to reach more musicians with news of help in the coming years. We welcomed new Ambassadors Tasmin Little, Isata Kanneh-Mason, Chris Difford and Natalya Romaniw: their breadth of talent and musical credentials will serve as an inspiration to those we aim to support. Alongside our existing Ambassadors, this growing ‘family’ at Help Musicians will be crucial in enabling us to connect with more musicians across the entirety of the UK, and with reach into all genres of music.

2020 was the most challenging year for the last century in the lives of UK musicians, with thousands across the four nations needing help on a scale that the charity has never witnessed before during its 99 years. As musicians turned to us in their thousands, we embraced our mission with energy and commitment.

In March, as a result of the Covid-19 pandemic, tens of thousands of musicians found themselves effectively unemployed overnight with concerts and live music cancelled for the foreseeable future. Thanks to the generosity of previous donors and the effective stewardship of the charity’s finances over many years, Help Musicians found itself in a privileged position to provide resources on a significant scale throughout the year supporting musicians when they needed it most.

As we enter our Centenary year, I reflect upon the ambition of two of the founders of this charity, Edward Elgar and Ralph Vaughan Williams, who were determined that musicians would always have a place to turn to in their hour of need. Through the hard work of the staff team at Help Musicians, the active engagement of our trustees and advisory boards, and the support of so many who joined us in our mission, I am proud to say we made a real difference to many in need last year.

Through phases of our financial hardship programme, Help Musicians reached over 19,000 musicians struggling to make ends meet. The direct cost of this support was £14.7m, with £7m funded from the charity’s reserves and the remainder raised through the generosity of donors and partners. From corporate support, individual music lovers, trusts and foundations and musicians raising funds for those colleagues less financially secure, this generosity more than doubled the numbers of musicians we were able to assist. As well as providing financial hardship funding, our breadth of support for musicians developed in other ways too, encompassing funding for new creative work during lockdowns, the learning of new business skills to enhance income or re-energise careers, and a continued focus on musicians’ health and wellbeing throughout the year. Over £1.2m was spent on supporting musicians with creative funding alone, reaching 504 musicians (a 60% increase on 2019).

We move into our Centenary year with this charity’s mission being more urgent than ever - to create a world where musicians can once more thrive.

Graham Sheffield, CBE Chairman

Chief Executive’s message

We enabled creative development with a 60% uplift in musicians supported, who also received a combination of business skills advice and health and wellbeing support to ensure they could make the most of their creative opportunity. We pushed on with our burgeoning mentoring programme, including a new partnership with the Ivors Academy Trust, delivering over 2,000 hours of tailored advice and support to re-energise careers. And with the exception of our hearing health scheme, we pivoted all our ongoing work to remote delivery, so that no-one who ordinarily would have received our support was left behind.

At Help Musicians we aim to ‘provide a lifetime of support when it’s needed most’. When the pandemic hit, the staff team made a monumental effort to honour this commitment; switching at speed to a scale of support never before delivered in our 99 years. Within six weeks we had provided £8.35m of one-off emergency financial hardship support to 16,700 musicians.

Recognising the enduring nature of the issues musicians were facing we then moved straight on to providing month-by-month help for those falling through the gaps of government support. By the end of the year, we had provided £14.7m to over 19,000 professional musicians. £7m of this came from our own financial reserves (carefully built up over many years for crises such as this) and, thanks to generous donations from musicians, music industry and music lovers, no eligible musician was turned away.

We are truly grateful for the collaborative spirit we have encountered – cooperation, encouragement and financial support from the music industry, generosity from music lovers right across the country, and professional musicians fundraising for us in all sorts of wonderful ways online and in person. We need this to continue in 2021 – it will be a long time before the music ecosystem returns to a pre-pandemic volume of work (if indeed it can given the difficulties created by the Brexit deal) and we don’t know how much government support will be available in the meantime. But we remain certain that, working together, we can make a real difference to the thousands of talented musicians who need our support – to help them maintain their health and wellbeing, retain their creative spark, and keep hope for a better future.

A career as a musician can present many challenges and therefore musicians always need a broad range of support, whether in crisis or not. So financial hardship was only the first part of our pandemic response. Within a few days of lockdown, we also launched the coronamusicians.info website, in collaboration with a large number of music industry bodies, to make it easy for musicians to find the help and advice they needed whatever the source.

When live music returns, musicians will once again take centre stage, bringing people together to celebrate what we have all missed so much. Let’s keep on working together towards that world where musicians thrive.

Supporting musicians with mental health support was more important than ever, given that many were facing significant anxiety about the future. As a result, we broadened the range and quality of mental health support, seeing a 40% increase in take-up, as well as providing a lifeline of over 8,700 one-on-one phone calls with musicians in isolation.

James Ainscough Chief Executive

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TRUSTEES’ REPORT

Trustees’ report

The Trustees present the Trustees’ Report and the audited financial statements for the year ended 31 December 2020. For nearly a century the charity has provided help, support, and opportunity to empower musicians through all stages of their lives. We love music and help musicians, aiming to have a positive impact on their lives and careers.

| The support we provide to musicians is:

| Objectives of the charity

Essential: providing a lifetime of support, when it’s needed most.

(1) musicians

(2) those persons (not being members of the Association) who work or have worked in professions or occupations closely connected with music and who in the opinion of the Association have rendered valuable service to music

Enduring: making a meaningful difference now and for the long-term.

Our wide spectrum of work includes an integrated programme combining Health and Welfare services with Creative Development funding, groundbreaking research, a mental health helpline for the entire music industry and a hearing health scheme which aims to prevent hearing problems that would otherwise bring musicians’ careers to an untimely end. Reaching all genres and locations, and with offices in London, Belfast and Glasgow, our help continues to evolve to create a world where musicians thrive.

(3) the spouses, children and other dependants of those set out in (1) and (2) above.

| Public benefit

When setting the objectives and planning the work of the charity for the year the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

| Mission Statement

We want a world where musicians thrive.

| Values

We will support and empower musicians through all stages of their lives.

We are an independent charity with the freedom to think long-term and act responsively.

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TRUSTEES’ REPORT – STRATEGIC PRIORITIES AND GOALS

TRUSTEES’ REPORT – STRATEGIC PRIORITIES AND GOALS

Our highlights from 2020

Help Musicians strives to make a meaningful difference to the lives of professional musicians across the UK, constantly adapting and developing to support musicians’ creative, business and health and wellbeing needs. We understand that being a musician can present both opportunities and challenges, so our range of help encourages musicians’ creative and career development, along with supporting their health and wellbeing, so they can sustain long and healthy careers.

Recognising that each musician is an individual, our support is designed to give musicians choice and flexibility in how we might help them, understanding that people require different support options as their needs develop or change over time.

Building greater engagement with those we seek to support and engaging wider audiences in the work of the charity are also key strategic goals.

| Key achievements

Providing more support than ever before

The charity increased its direct expenditure on our Creative, Health & Welfare Programme by 270% to £19.9m in 2020. This significant increase was mainly driven by our financial hardship support through the pandemic.

The number of interactions to support individuals and organisations during 2020 has risen by 150% to 36,581. We have made a difference, to musicians in crisis and to musicians with opportunity, in the following ways:

Financial Hardship Support

Enabling Creative Development

Supporting Health & Wellbeing

12 TRUSTEES’ REPORT - OUR HIGHLIGHTS

TRUSTEES’ REPORT - OUR HIGHLIGHTS 13

| Engaging with musicians and music-lovers

Re-energising careers

Sustaining Hearts & Minds

| Providing a lifetime of support when it’s needed most

Our work in 2020

In Crisis

FINANCIAL HARDSHIP SUPPORT

£14.7m in total support provided

19,000+

musicians reached with financial support who were struggling to make ends meet

SUSTAINING HEARTS AND MINDS

8,700

1,200

conversations with musicians by phone, a lifeline for many in times of isolation

musicians supported with mental health care, a 40% increase on previous year

In Opportunity

ENABLING CREATIVE DEVELOPMENT

500+ musicians helped with creative development support, a 60% increase on previous year

£1.2m

total value of funds provided to support creative and career potential

RE-ENERGISING CAREERS

2,000

hours of tailored advice and support provided to musicians through our business advisors and national mentoring programme

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TRUSTEES’ REPORT - PROGRAMME 15

TRUSTEES’ REPORT - PROGRAMME

Programme Making a difference to the lives of musicians across the UK

2020 was a year where the scale of requests for help from musicians across the UK was unrivalled, as the impact of the pandemic took hold. Thousands of musicians, whose careers already existed on an unreliable freelance lifestyle, faced months of empty calendars and a year of uncertainty. In the early days of lockdown, Help Musicians responded to the emerging crisis with agility and speed as this was truly a time when musicians needed us the most.

Not only were we able to support musicians through financial hardship but also help them continue to make music, to keep their careers afloat through expert advice and to look after their mental and physical wellbeing at times when hope seemed so difficult to hold onto.

As the charity heads to its Centenary year, Help Musicians demonstrated more than ever the role it can play in supporting musicians in times of crisis and opportunity.

| Financial Hardship

number of low-earning freelance musicians out in the cold. In order to understand more about the difficulties musicians continued to face, we ran a survey in midApril which showed 80% of respondents were worried about their financial situation and nearly half said it was impacting their mental wellbeing. The feedback we received informed our decision that a further round of hardship support was very much needed with a focus on those who were excluded from government support. Phase 2 of our hardship funding scheme offered 5 months of means-tested support from June to October and over 3,800 musicians received this. Alongside this financial support we also offered mental wellbeing care (e.g. Thrive, an NHS-approved app to proactively manage mental health, was made available free to all hardship beneficiaries) and help on creative development (our new ambassador Chris Difford even opened his home (online) to run online song writing workshops to inspire and encourage those whose creativity had run dry).

In March 2020, thousands of musicians’ careers were put on hold as gigs were cancelled and work all but dried up. Most musicians are low-earning freelancers who generate the vast majority of their income from in-person work (performing, rehearsing, recording, teaching, etc). With little, if any, savings to fall back on the pandemic had an immediate, devastating impact on most professional musicians.

The minute lockdown began, we knew we needed to get cash to freelance musicians as soon as possible, to buy them time to adjust, and while they waited for the government to announce its own support packages. Within six weeks we had distributed £8.35m of oneoff emergency financial hardship support to 16,700 musicians.

Government support schemes (in particular furlough, the Self-Employed Income Support Scheme (SEISS) and the Cultural Recovery Fund) were significant and extremely welcome. But SEISS, in particular, left a large

----- Start of picture text -----
Love Ssega , self-producing
artist and songwriter
Supported to record and release music
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Phase 3 of our Hardship Funding, providing monthly support from November to March 2021 in a similar manner to Phase 2, is ongoing and is supporting nearly 3,000 musicians, again overlaying our financial assistance with mental health and creativity support.

“ Help Musicians helped me at a time when I didn’t know where to turn. The way the Hardship fund was presented made me feel that I was deserving of the help. It made me feel that there were organisations out there that trusted musicians and put value and worth in what we do.”

In total, so far we have committed support to over 19,000

individual musicians with Coronavirus Financial Hardship Funding at a cost of £14.7 million. £7m of this came from our own reserves (the charity had been careful to build adequate funds, over many years, should a crisis of this scale hit). The rest came from the generosity of music lovers across the UK and, unsurprisingly, many of them were to be found working in the world of music (commercial companies, charities, trusts, foundations, individuals etc.). Put simply, we could not have achieved this scale of support had it not been for the music industry pulling together at a crucial moment.

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TRUSTEES’ REPORT - PROGRAMME 17

TRUSTEES’ REPORT - PROGRAMME

| Supporting musicians in their creative development

as usual. We also celebrated the 40th anniversary of the Ian Fleming Award for instrumentalists and musical theatre and offered three £5k Peter Whittingham Awards to celebrate three decades of supporting emerging jazz professionals. For the first time ever, the Peter Whittingham Award offered the same combination of funding, mentoring and health and welfare support as our Do It Differently and MOBO funds.

During the pandemic we felt it was vital to expand our financial support for musicians wanting to develop their creative and career potential. As a result, 2020 surpassed any previous year with over 500 awards made to musicians, a 60% increase on 2019, at a total cost of £1.2m. We had record-breaking numbers of applications to our Do it Differently and MOBO Funds which both now combine financial support with business mentoring and health and wellbeing support - particularly relevant during the pandemic to ensure musicians’ creative progress was underpinned by successful business models and positive wellbeing.

In an ever-changing landscape, ensuring our support was

effective in meeting musicians’ current and future needs was essential. As such, we carried out regular surveys to seek insight on a number of areas of need, ensuring that the charity’s resources were targeted to make a meaningful difference to the lives of musicians. This included offering help for those who needed to adapt their careers, to retrain in new, find online ways of sharing their music and to develop audiences.

Moving to an online world meant that we also had to think innovatively about how we could make assessments and hold auditions, as we were determined to continue our services that support musicians’ career development. Adapting our processes to accept audition videos from 450 students for our Postgraduate awards meant we were able to support the same number of students seeking a year of professional study (across all instrument groups)

“ In such strange times, Help Musicians has not only helped greatly in releasing music during Covid19 but also given me the confidence to go ahead and continue to create and think about future projects.”

| Helping to re-energise musicians’ careers

Although the pandemic created extraordinarily difficult circumstances for musicians, it did also provide time for some to consider their career development and think differently about the opportunities and challenges they faced. In order to support this, we offered more mentoring support to help musicians define new business models, different ways of earning income and find new solutions to developing an online presence. To empower those musicians who often face some of the biggest barriers, for the first time we included a business mentoring offer within the Help Musicians MOBO Fund as well as our Do it Differently Awards.

Keen to expand upon our work to empower musicians to achieve their creative and career potential, we ran a pilot with the Ivors Academy and Trust to provide mentoring to 48 pairings of composers/songwriters. The pilot has not yet concluded, but we are already convinced of the positive impact it is having on musicians and intend to expand this work in 2021.

In total, we provided nearly 2,000 hours of mentoring and 1:1 advice sessions to over 300 musicians in the year.

“ Sessions with the mentors have given me the knowledge and know-how to take my music forward far beyond this project.”

| Mental Health

There were many reasons why musicians struggled in 2020 which included the disruption to their careers, the impact of financial hardship, the isolation of lockdown and significant uncertainty about what the future holds and whether a career in music is still a viable option. More than ever before musicians needed hope and support to face the challenges of the pandemic. We saw a 40% increase in those that turned to us for help compared to 2019. To enhance our proactive support for mental wellbeing we invested in:

“ Being able to talk to a person completely removed from my social, family, business and romantic life about my problems, worries and issues was very helpful; also the therapist seemed to empathise and have knowledge of the specific worries faced by musicians in both good and bad times, as professional performers.”

| Prioritising relationships

Maintaining a personal connection with those we support remains a very important aspect of our help at the charity, in an ever-increasing world of technology and automation. Our team understands this value of maintaining relationships with those we support, and this became even more important in lockdown. Moving quickly from an office base to working from home and using our network of visitors, we adapted our home visiting service to more frequent phone calls. These check in conversations not only provide a human connection to many musicians who may have been struggling or feeling isolated, but also enabled our team to really understand the issues musicians were facing last year.

With over 8,700 calls made and enquiries responded to by phone we provided a lifeline for many in times of isolation.

Our busy casework team not only continued to offer musicians a breadth of support from assistance with debt, support with health problems or financial and practical help during retirement, but also made sure that we offered musicians a lifetime of support when it was needed the most last year. Musicians told us about their more complex and layered circumstances.

TRUSTEES’ REPORT - ENGAGEMENT

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TRUSTEES’ REPORT - ENGAGEMENT 19

Engagement

| Profile

prior year), 82% of which were new visitors. Content was updated regularly to ensure musicians received the most up to date information on the opportunities for help.

Help Musicians’ agile response in launching an initial phase of hardship funding to musicians in need raised the profile of the charity by being relevant to the current news agenda and through launching a successful PR initiative to spread the word to a wider network of musicians than we would normally perhaps reach. Press opportunities were sought throughout the year to keep the plight of musicians high on the news and political agenda to encourage further government support. Notable PR opportunities included BBC Radio 5 Live, LBC, Jazz FM, Sky News Radio, BBC Scotland television as the charity’s voice on the impact of the pandemic for musicians and the presentation of case studies to talk about the human impact of the crisis as it unfolded.

Social media engagement grew, acting as a timelier way to communicate with musicians about our unfolding support offer. The charity’s social media channels were used to update musicians on the opening of new application opportunities, signposting to other help available and answer specific questions from musicians to create more two-way engagement.

The number of followers increased across Twitter, Facebook, Instagram, and LinkedIn significantly, with an audience of over 71,000 across all channels – a 50% increase on the previous year.

Help Musicians joined others across the industry, on many occasions throughout the year, in calling for the Government to do more for freelancers and those falling through the gaps in government support. Our President, Dame Evelyn Glennie also wrote personally to the Culture Secretary to ensure musicians had not been forgotten.

In light of Covid-19 restrictions, the charity’s flagship event, Festival of St Cecilia pivoted to become an online event with contributions from Mr John Rutter CBE, Natalya Romaniw and Isata Kanneh-Mason. Filmed across multiple locations, the Festival also featured the choirs of Westminster and Gloucester Cathedrals, reminding us all of the power of choral music. Partnering with The Cathedral Music Trust and in collaboration with Classic FM, the event reached a total audience of 2,200 on YouTube and 79,000 through Facebook – a first for the charity in terms of broader audience engagement.

| Reach

The rise in our profile led to a significant increase in the number of people the charity engaged with as digital became a key component in improving reach. Key drivers were:

| National Reach

With the aim of reaching more musicians across the UK with support in a very challenging year, in Scotland the team endeavoured to engage with musicians through a number of conferences such as Wide Days, XPO North and Resonate which, due to Covid, had to pivot from live events to a digital programme. Raising the charity’s profile to ensure musicians had greater visibility of the support on offer was also a key goal and as such we supported an award at the Scottish Alternative Music Awards (SAMAs) which is an annual music award based in Glasgow celebrating the best emerging artists in

The Help Musicians website acted as the primary portal for applications for funding with over 500,000 visitors during the year (a 284% increase on visits during the

“Help Musicians over the last year has been vital in my recovery.”

Scotland. Building on the need to maintain the charity’s profile, we developed a digital programme of engagement to raise awareness; webinars across 15 counties of Scotland were run in order to broaden the charity’s reach outside of the Scottish central belt, all delivered through local partnerships with established music professionals and grassroots communities.

Growth in engagement was a key aim in Northern Ireland with a significant increase in reach through our much needed financial hardship support. Activities to communicate the help available to musicians included contributing to the digital version of the Sound of Belfast, Belfast’s celebrated music conference; supporting an award at the NI Music Prize and the continuation of a partnership with Ruach Road to support musicians career development.

MEI , singer-songwriter, Supported through Help Musicians’ Coronavirus Hardship Fund

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TRUSTEES’ REPORT - ENGAGEMENT

| Fundraising

Concern for musicians hit by lockdown generated a significant rise in philanthropic support, with donations across all areas of fundraising up substantially from the year before. £8.2m million was fundraised for hardship support alone and these funds enabled the charity to significantly increase the level of hardship support provided throughout the year.

Support came from music lovers and musicians, raising funds for others in greater financial need. Individual gifts, corporate donations, legacy funding along with a rise in community fundraising for musicians in hardship grew fundraising income to a total of £11.5m (compared to £3.3m in 2019).

We were greatly heartened to receive such support from music lovers across such a wide spectrum, which enabled us to provide support to many thousands more musicians throughout 2020. Every penny truly counts and our supporters can rely on our “100% pledge”, whereby we commit to covering all of the charity’s overheads with income from our investment portfolio. This means donors can be sure that every penny they give this year will go straight to the front line.

Thomas Guthrie & Guests , Where Have All the Flowers Gone?,

an online fundraiser in aid of Help Musicians

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TRUSTEES’ REPORT - BUSINESS SERVICES

Business services

Our Business Services team comprises Finance, Human Resources, IT, Operations and Secretariat and they each play an important role in helping our Programme and Engagement teams deliver the charity’s work and engage with supporters.

We strive to work in an efficient and effective manner to better support the needs of the charity. We continue to look for improvements within our processes and procedures, so time can be spent building relationships and adding value rather than on administrative tasks.

2020 was quite a different year for this area of the charity’s operations as a result of the Covid-19 pandemic, with all teams adjusting to working from home and the need to scale up different areas of business support provision. In addition, staff across all of these areas helped on the ‘front line’ – answering telephone calls or emails for musicians needing information about support. Many individuals pivoted from their normal day to day tasks to process applications for hardship to deliver a true team effort right across the organisation.

Overnight, the need for new technology to promote our help, take applications for hardship funding and routines to process hardship funding became urgent. Help Musicians staff worked with agility and above and beyond to deliver new systems and processes to enable funds to reach those musicians in most urgent need as quickly as possible.

While many worked to support musicians, others worked to support their colleagues, with wellbeing support and training and investment opportunities developed and implemented across the year.

Staff in our Finance team also helped other organisations with the distribution of their hardship funding programmes. During the year, Help Musicians acted as agent for the Music Managers Forum (MMF) to facilitate the receipt of funds and distribute payments of their Hardship fund. We also distributed £1.8m to Scottish musicians most in need via a collaboration with Creative Scotland.

| During the year specific improvements in this area were made are as follows:

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TRUSTEES’ REPORT - GOVERNANCE 25

Governance

| Structure, governance and management of the charity

The charity is comprised of:

| Trustee Emeriti

The title of Trustee Emeritus or Emerita may be bestowed on a former Trustee of the charity to signify exemplary service and an ongoing relationship with the charity beyond the conclusion of the official term as a Trustee. The charity has two Trustee Emeriti:

The Board operates an equal opportunities recruitment policy and Trustees are required to have demonstrable experience in the areas identified by a skills audit. New Trustees follow a similar induction process to that of all new staff to gain an understanding of all aspects of our work. We provide ongoing training as needed and Trustees are also required to gain a full understanding of the role’s legal obligations.

| Annual General Meeting

The 91st Annual General Meeting will be held on Thursday 29 April 2021, at 7-11 Britannia Street, London WC1X 9JS. In accordance with the Memorandum and Articles of Association, the following members of the Board of Trustees retire by rotation or being eligible, offer themselves for re-election:

| Members

Under the rules, members are entitled to vote, attend the Annual General Meeting and elect Trustees.

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TRUSTEES’ REPORT - GOVERNANCE

TRUSTEES’ REPORT - GOVERNANCE

| Key management personnel remuneration

The personal data that the charity processes is to:

The Trustees consider the key management personnel of the charity to be the Chief Executive and the Executive Team. The remuneration of the Chief Executive and the Executive Team is reviewed annually by this Committee and set with reference to recent trends in the cost of living and average earnings, benchmarking against other similar charities, and individual performance. Trustees give their time freely. Details of Trustee expenses and related party transactions are disclosed in notes 6 and 14 to the accounts.

| Complaints

Sometimes things can go wrong. We treat every complaint raised seriously, ensuring a proper investigation is conducted and the appropriate response is given in a timely manner.

| Fundraising Practice

Help Musicians takes very seriously the relationships we have with donors and volunteers and none of our activity should compromise their privacy, put anyone under undue pressure or be unreasonably persistent. Help Musicians’ fundraising activity does not include direct mail or street collecting and we do not send out any unsolicited communications. We have not received any complaints about our fundraising activities during the period covered by this report.

We are hugely grateful that many community-based supporters voluntarily raise money in aid of Help Musicians, and although we provide advice regarding this activity, we do not directly control or monitor these activities.

| Data Protection, GDPR and information governance

Help Musicians has taken the relevant steps to remain compliant with the new GDPR regulations, which is the privacy and data protection regulation in the European Union that came into effect from 25 May 2018. We remain committed to ensuring privacy is protected with strict adherence to all data protection laws.

The legislation has helped us as an organisation to ensure we provide greater transparency in our communications about how we use data and to enhance controls compliant with new legislation.

We have appointed a Senior Database and Data Protection Analyst who works closely with our Data Protection Officer and IT Manager to ensure our systems and the services we provide are compliant. We have taken the opportunity of GDPR to take stock of all the data we hold in the organisation, review, update and in some cases create new policy to improve efficiency and compliance. Our updated Privacy Policy can be found on our website and is updated as required by changes in legislation and policy.

| Participation in fundraising regulation and compliance with codes

We aim to be transparent in everything we do, and throughout the year, the charity reviewed its fundraising practices to ensure they are in line with best practice whilst complying with the Information Commissioner’s Office Direct Marketing guidelines. We are registered with the Fundraising Regulator and are actively working towards full compliance with the General Data Protection Regulations (GDPR) which will involve a proactive audit of all donors to gain consent for the charity to retain their contact details on its database where legitimate interest is not applicable.

Help Musicians expects all third parties that it works with to meet the same high standards as its own staff. As such, we embedded a more stringent approach to our contractual agreements, one that clearly outlines our expectations about ethical behaviour and compliance with the requirements of the GDPR.

28 FINANCIAL REVIEW

FINANCIAL REVIEW 29

Financial review

----- Start of picture text -----
INCOME EXPENDITURE
£
£ 12.6 m £ 22.9 m
up 125% up 157%
----- End of picture text -----

----- Start of picture text -----
FUNDING GAP CUMULATIVE
FUNDING
funded from reserves
GAP £10.2m 2020
TOTAL
£ £ 19.7 m
£3.3m 2019
£4.9m 2018
£ 10.2 m
£1.2m 2017
----- End of picture text -----

Total income for the year was £12.6million, up 124% on 2019 (2019: £5.6million). This was driven mainly by a high volume of donations received to our Hardship fund. The Hardship fund was created during 2020 in response to the effect of the Covid-19 pandemic on the lives of musicians who have been unable to perform and therefore earn a living during this time. A total of £8.1m of donations was raised in the year from a number of corporate organisations, trusts and foundations, via community fundraising and individual donors. To this we added £7m of our own reserves in order to make sure that no eligible musicians was turned away, and we provided for the full cost of all administration in relation to the fund.

We saw a 9% decline in our legacy income, a decrease of £0.2m to £2.4m. Legacies made up 19% of our income for the year (2019: 46%) and continue to be a crucial income stream. Donation income increased significantly on the previous year to £1.0m, 33% higher than 2019.

Expenditure on direct charitable activities rose by £14.1million to £19.9m driven by Hardship support expenditure of £15.1m with £0.3m administrative savings and a pause to our Health Hearing Scheme enabling an expansion in other Creative, Health & Welfare expenditure. Overall total expenditure of £22.9m was 157% higher than last year.

Following the launch of our Hardship fund, grant expenditure has increased significantly compared to 2019, the value of awards in 2020 was £18.6m. The volume of individual Health & Welfare payments was 21% lower than 2019 with a total cost of £1.6m compared to £2.2m in 2019. The most common issue presented was financial hardship (which was dealt with separately through the hardship fund). The number of Creative grants awarded to musicians increased by 60% with a total cost of £1.2m compared to £0.8m in 2019. This was mainly driven by an increase in awards made by our Do it Differently and MOBO Funds.

Net expenditure before the movement of investments was £10.2m (2019: £3.3m). This is the fourth year in a row that we have spent more than was generated, meaning that we have taken £19.7m from our reserves in order to fund a higher level of activity. We will continue to do so until our reserves are at an appropriate level which

balances long-term stability with musicians’ current needs. After accounting for investment gains of £3.6m (2019: £8.1m), the net deficit for 2020 was £6.7m (2019: net surplus £4.8m). This brought total reserves to £63.1m (2019: £69.7m), of which £14.5m are restricted.

| Social investment policy

We recognise that on very rare occasions it is in the interest of individual musicians who we support to arrange concessionary loans for a major piece of work. These are secured on either their property or other tangible fixed assets such as land.

Loans are repayable either when the property is sold or when the individual dies and it is repaid from the estate. The loans were made on the premise that the charity would not intend to achieve a financial return and are made wholly to advance our charitable purposes for the benefit of the musicians we support.

We currently have two loans which total £66k (2019: two loans totalling £66k).

| Investment policy and performance

During 2020, the investment portfolio has continued to be arranged into two distinct funds – a ‘core fund’ which will protect our long-term income requirements and a ‘non-core’ fund which will meet the short and medium term cashflow requirements of the charity.

Rathbones manage the majority of the core fund portfolio as well as the non-core fund. The Partners Group and Brewin Dolphin manage the remainder of the core fund. We will add the Aviva REaLM Multi-Sector Fund to this portfolio in February 2021.

During the first quarter of 2020, our investment portfolio suffered a dramatic fall due to the Covid-19 pandemic that shook the world’s stock markets, falling by 21.5% and losing £8.5m almost overnight. Thankfully we had sufficient funds in liquid form so that we did not have to crystallise any of these stock market losses and are pleased to have seen a strong recovery of our funds in the latter part of the year.

30

FINANCIAL REVIEW 31

FINANCIAL REVIEW

In 2020, the investment portfolio yielded income of £1.0m which was £1.0m lower than our £2.0m budget target and £1.1m lower than prior year. This is due to the lower income yield (average income yield was 1.6% compared to 3.3% in 2019), the switch of some funds to a £10m investment with Partners Group (which is expected to deliver long term returns), and the £7m withdrawal for the hardship fund. The overall performance of the portfolio in terms of total return was comparable to the benchmark; the total annual charge (TAC) for the portfolio from investment managers was 0.20% in 2020 (2019: 0.50%). Capital gains on the portfolio this year was £3.6m (compared to £8.1m gains in the previous year). The performance of the investment portfolio is scrutinised by the Finance and Audit Committee.

Everyone at Help Musicians were deeply saddened to hear, in January 2021, of the untimely death of our Rathbones Investment Director Rupert Heggs. Rupert had been involved in the management of the charity’s investment funds for over 30 years – his talent and hard work, combined with his passion for music and the mission of the charity, enabled him to make a substantial contribution to our charitable impact. We shall miss him greatly and we regard it as a great honour that his family have agreed to the naming of one of our annual piano postgraduate annual bursaries “The Rupert Heggs Award”, in recognition of all he did to build the charity’s strong financial foundations.

| Reserves

Since inception, nearly 100 years ago, the charity has built up a financial cushion to support our commitments to the musicians we help. Our obligations to musicians in need cannot be switched on or off depending on changes to the financial climate and may even expand in a volatile economy. And when we commit to support a musician, we aim to provide this for as long as our assistance is appropriate – our longest-standing beneficiary first approached us for help in 1968. The charity must therefore maintain sufficient resources to maintain programme delivery whatever the circumstances.

Welcome as it is, we cannot prudently rely upon legacy income year on year, because annual gifts fluctuate and cannot be predicted accurately. Whilst the investment

portfolio at £49 million of unrestricted funds may be considered significant, with low yields on investments at present, a large fund remains necessary in order to provide the charity with the reliable income stream it needs to rely on in order to retain the long-term stability of its charitable work.

We will continue to target a net income of £2 million per year from our investments (although expect this to be much lower in 2021) and so need a core fund of £40-50 million to generate this. The remainder of the charity’s funds are committed, over the medium term, to seedfunding a permanent expansion in the charity’s activity levels. The Trustees keep the charity’s reserves under regular review and are of the opinion that the core fund requirement for 2021 and beyond appropriately reflects the amount required to be confident of a secure long-term future helping musicians.

Investment income alone is insufficient to meet the ongoing needs of our beneficiaries. Therefore, we must generate additional income over the short to medium term to supplement our current income streams, if we are not to cut back our charitable activity.

Total group reserves as of 31 December 2020 were £63.1m. This figure comprises:

Details of restricted funds are in note 12 to the accounts. Of the £63.1m reserves available for use by Help Musicians, £57.7m is invested.

| Going Concern

Whilst Covid-19 continues, the responsibility to financially support our beneficiaries will remain and this places a significant additional demand on our reserves. Our key expenditure for 2020 has, and will continue to be in 2021, our Hardship fund, which exists to help musicians make ends meet whilst the pandemic prevents them from earning a living.

Our process around Hardship has always been to ensure stability for the musicians we support by providing them with sustained financial support over multiple months, allowing them to plan their bills and lives, in a world of extreme uncertainty. We only commit to these payments if we have sufficient funds available and this ensures we do not over-commit beyond what is affordable. Therefore, any uncertainty around income generation is managed by controlling the number and level of grants we award. This strategy also applies to other areas of our organisation including Health and Welfare, and Creative.

investment portfolio is critical to our day-to-day financial sustainability, particularly in light of the reduction of dividends in 2020, and what we expect to continue into 2021. Future drawdowns from our investment fund will, as always, be planned as far as possible, with advice taken from the investment experts so we are in the best position possible.

We have been able to work effectively throughout 2020, despite not being able to use the office, thereby protecting our staff, while maintaining the level of service to our beneficiaries. Whilst we are not able to visit our beneficiaries in person nor attend events which helps us reach more beneficiaries, we continue to find alternative ways of reaching and supporting those that need it the most. In fact, we have provided more grants and reached more musicians than ever before whilst working remotely.

We have drawn down significantly on our reserves to fund our Hardship programmes and this is only possible by maintaining a successful investment strategy with a long-term approach that allows us to ride out shortterm market conditions. Drawing down at the rate we have in 2020 is not something we can continue to do year on year, as we rely on the dividend income to pay our overheads. Therefore, maintaining a healthy

We therefore consider there to be no material uncertainties about Help Musicians’ ability to continue as a going concern.

32

LOOKING FORWARD TO 2021 33

Looking forward to 2021

In 2021 we celebrate the Centenary of Help Musicians. Whilst the situation for musicians is certainly nothing to celebrate, the current pandemic has brought into sharp focus the continuing relevance of this charity’s work, providing a lifetime of support when it’s needed most to an ever-growing number of professional musicians of all ages and genres.

Our work in 2021 will undoubtedly be shaped by the ongoing needs of musicians impacted by the pandemic and the challenge of re-building careers as the music industry slowly starts to bloom again. Whilst maintaining our usual breadth of support, we see four key areas of need that we must address at scale: financial hardship, mental health, creative development, and business skills mentoring.

lead a collaborative industry-wide initiative to deliver long-term improvements to how music professionals are supported on mental health issues, including the establishment of a local support group network and improved signposting to all sources of assistance that are valuable to musicians.

In summary, 2021 will be a year where the charity’s work is characterised by improving accessibility, empowering musicians to achieve their potential and offering meaningful help to those who remain in dire need due to the impact of Covid-19. If we are to reach as many professional musicians as possible with this high volume of vital work, we will need to grow our supporter base and our income, to work ever more efficiently (with a highly motivated staff team, guided by insight / research, harnessing new IT software), and to build an even larger array of partnerships. We approach these objectives with energy and ambition; certain that our Centenary is the best possible moment to engage with musicians and music-lovers alike. By telling the stories of the musicians we help and celebrating the value of music, we will demonstrate the ongoing relevance and need for the Help Musicians mission: creating a world where musicians thrive.

34

PRINCIPAL RISKS AND UNCERTAINTIES 35

PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks and uncertainties

1. Fundraising risk –

Management of the Strategic Risk Register is the responsibility of the Chief Executive and the Executive Team. The oversight of risk management lies with the Finance & Audit Committee which reports to the Board of Trustees. The Strategic Risk Register was last reviewed by the Finance & Audit Committee in November 2020, during which four broad categories of strategic risk were identified:

a shortfall in funds raised

2. Reputational risk –

failure to make a positive impact on beneficiaries

3. IT and technology risk –

4. Failure to meet all relevant regulatory requirements

All risks are analysed, and mitigation strategies are developed. The table below shows a high-level summary of how this process was used for the charity’s top four risks.

• In response to the pandemic the charity has designed a Hardship fund providing musicians with financial support since March 2020.

• Monitoring the impact of Covid-19 • Monitoring the impact of Covid-19
on our Programme and adjusting our
offer where appropriate to meet the
needs of musicians.
IT and Technology risk • A three-year IT strategy has been • A clear plan of what work needs to be
formulated to update and replace a done in order to bring systems up to
number of key systems. date over the next three years.
• A temporary IT committee reporting • Early identification of any IT risks,
to the F&A committee will be set up enabling corrective strategies.
to regularly monitor all IT projects in
line with the strategy.
Failure to comply with
regulatory requirements		 • Highly proactive approach
to identifying all regulatory
requirements, undertaking gap
analyses, and implementing the
necessary changes.		 • Clear insight into levels of compliance
levels. Improvement plans developed
as early as possible. Organisation-
wide awareness and involvement.

37

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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36 STATEMENT OF TRUSTEES’ RESPONSIBILITIES
Vicky Ayers , ceilidh band percussionist
Supported through Help Musicians’
Coronavirus Hardship Fund
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Statement of Trustees’ responsibilities

charitable company and ensures that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and applicable Charities Accounts (Scotland) Regulations. Trustees are also responsible for safeguarding the assets of the charitable company and group, taking reasonable steps for the prevention and detection of fraud and other irregularities.

Trustees, who are also Directors of the Musicians Benevolent Fund (the legal name of Help Musicians) for the purposes of company law, are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, giving a true and fair view of the state of affairs of the charitable company and group. These statements also identify incoming resources and the application of these resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to –

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees’ annual report, which includes the strategic report, has been approved by the Trustees on 11 March 2021 and signed on their behalf by

The Trustees are responsible for keeping adequate accounting records that disclose, with reasonable accuracy at any time, the financial position of the

Graham Sheffield CBE Chairman

38

INDEPENDENT AUDITOR’S REPORT 39

INDEPENDENT AUDITOR’S REPORT

Independent auditor’s report

to the members of the Musicians Benevolent Fund

| Opinion

| Basis for opinion

We have audited the financial statements of the Musicians Benevolent Fund (the ‘charitable parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020 which comprise the group statement of financial activities, group and charitable parent company balance sheets, statement of cash flows 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’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 or the charitable parent company’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 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.

| Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

| Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report, which includes the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

| Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement on page 37, the trustees (who are also directors of the charitable company for the purposes of company law) 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’s and the charitable parent company’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 the charitable parent company or to cease operations, or have no realistic alternative but to do so.

40

41

INDEPENDENT AUDITOR’S REPORT

| Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 noncompliance 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:

We did not identify any irregularities, including fraud.

• We obtained an understanding of the legal and regulatory frameworks applicable to the Group and the sector in which it operates. We determined that the following laws and regulations were most significant: 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 and Republic of Ireland (FRS 102), the Companies Act 2006, the Charities Act 2011 and Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations (as amended), The Code of Fundraising Practice and safeguarding regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities This description forms part of our Auditor’s report.

| Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Signed: Date: 29/03/2021

Catherine Biscoe, Senior Statutory Auditor For and on behalf of Buzzacott LLP, Statutory Auditor, 130 Wood Street, London EC2V 6DL

SUMMARY 43

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42 SUMMARY
Dame Evelyn Glennie CH , percussionist
Appointed Honorary President in March 2020
Photo credit: Jim Callaghan
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Summary

| Patron

HM The Queen

| Honorary President

Dame Evelyn Glennie CH

| Trustees

Graham Sheffield CBE Chairman and Chairman of the Remuneration Committee

Alex Spofforth Vice Chairman Sandeep Dwesar Honorary Treasurer and Chairman of the Finance & Audit Committee

John Axon Chairman of the Nominations Committee

Charisse Beaumont

Jason Carter Stephen Daltrey Melanie Grundy Jon Higgins Co-opted pursuant to Article 47 of the Articles of Association. Due for election at the 2021 AGM

Edward Kershaw

Kathryn Langridge (elected 16 July 2020) Anne Mitchener Felicity Osmond Richard Wigley David Williams

| Sub-committees of the Board of Trustees

Finance & Audit Committee

Sandeep Dwesar (Chairman), John Axon, Kathryn Langridge, Alex Spofforth, Graham Sheffield CBE Co-opted advisor: Stephen Swift

Nominations Committee

John Axon (Chairman), Charisse Beaumont, Stephen Daltrey, Felicity Osmond, Graham Sheffield CBE

Remunerations Committee

Graham Sheffield CBE (Chairman), John Axon, Sandeep Dwesar, Kathryn Langridge, Alex Spofforth

| Executive Team

(as at the date the accounts were signed) James Ainscough Chief Executive Claire Gevaux Director of Programme Sarah Woods Director of Engagement Lesley Page Director of Finance

| Investment Managers

Aviva Investors

St Helen’s, 1 Undershaft, London EC3P 3DQ

Brewin Dolphin Ltd 12 Smithfield Street, London EC1A 9BD

Partners Group (UK) Limited 110 Bishopsgate,14th Floor, London EC2N 4AY Rathbone Brothers plc 8 Finsbury Circus, London EC2M 7AZ

| Auditors

Buzzacott LLP

Chartered Accountants 130 Wood Street, London EC2V 6DL

| Solicitors

IBB Solicitors

Capital Court, 30 Windsor Street, Uxbridge UB8 1AB

| Bankers

HSBC Bank plc

117 Great Portland Street, London W1W 6QJ

44

BALANCE SHEETS 45

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

| Consolidated Statement of Financial Activities (incorporating income & expenditure account) Year ended 31 December 2020

Unrestricted Restricted Restricted Total 2020 Total 2019
Hardship Other
Note £’000 £’000 £’000 £’000 £’000
Income from:
Donations and legacies 3,296 8,167 82 11,545 3,374
Charitable activities - - - - 7
Other trading activities 108 - - 108 100
Investments 758 - 204 962 2,133
Total income 2 4,162 8,167 286 12,615 5,614
Expenditure on:
Raising funds 1,109 - 112 1,221 1,505
Charitable activities
Hardship support schemes - 15,182 - 15,182 -
Health and Welfare 2,886 - 181 3,047 4,050
Creative programme 2,325 - 188 2,513 2,416
Raising awareness 844 - 55 899 933
Total expenditure 3 7,144 15,182 536 22,862 8,904
Net expenditure and net movement
in funds before transfers and gains
on investments 5 (2,982) (7,015) (250) (10,247) (3,290)
Transfers between funds (9,658) 7,457 2,201 - -
Net gains on investments 2,962 - 701 3,663 8,095
Net movement in funds (9,678) 442 2,652 (6,584) 4,805
Reconciliation of funds
Total funds brought forward 58,319 - 11,399 69,718 64,913
Total funds carried forward 12 48,641 442 14,051 63,134 69,718

| Balance sheets - as at 31 December 2020

Company number 00252783

GROUP CHARITY
2020 2019 2020 2019
NOTE £’000 £’000 £’000 £’000
FIXED ASSETS
Tangible assets 7 2,362 2,433 2,362 2,433
Investments 8a 57,684 63,631 54,170 58,490
Social investments 8b 67 66 67 66
60,113 66,130 56,599 60,989
CURRENT ASSETS
Stock 3 6 - -
Debtors: due within one year 9 2,047 2,190 2,047 2,190
Cash at bank and in hand 3,271 2,501 3,248 2,484
5,321 4,697 5,295 4,674
LIABILITIES
Creditors, falling due within one year 10 (2,300) (1,109) (6,023) (2,728)
NET CURRENT ASSETS 3,021 3,588 (728) 1,946
TOTAL NET ASSETS 63,134 69,718 55,871 62,935
FUNDS
Restricted funds 11 14,493 11,399 5,329 4,616
Unrestricted funds: 11
Designated funds 2,362 2,433 2,362 2,433
General funds 46,279 55,886 48,180 55,886
Total unrestricted funds 48,641 58,319 50,542 58,319
TOTAL CHARITY FUNDS 12 63,134 69,718 55,871 62,935

The charity's own Statement of Financial Activities has not been presented, as permitted by section 408 of the Companies Act 2006. The charity's net movement in funds for the year as an individual entity was £6.2 million (2019: £4 million).

The notes on pages 47-61 form part of these financial statements. The financial statements were approved and authorised for issue by the Board of Trustees on 11th March 2021 and were signed below on its behalf by:

Graham Sheffield CBE Chairman

Sandeep Dwesar Honorary Treasurer

All transactions are derived from continuing activities. There were no other recognised gains or losses. Movements in funds are disclosed in note 11 and comparative figures are shown in notes 17-19

46

NOTES TO THE CONSOLIDATED ACCOUNTS YEAR ENDED 31 DECEMBER 2020 47

CONSOLIDATED STATEMENT OF CASH FLOWS

| Consolidated statement of cash flows Year ended 31 December 2020

|| Consolidated statement of cash flows
Year ended 31 December 2020||| |---|---|---| ||2020|2019| ||£’000|£’000| |Net cash used in operating activities|(9,742)|(6,255)| |Cash flows from investing activities||| |Interest and dividends|962|2,133| |Purchase of fixed assets|(59)|(39)| |Proceeds from sale of investments|36,359|22,186| |Purchases of investments|(26,749)|(16,564)| |Movements on social investments|(1)|(1)| |Net cash provided by investing activities|10,512|7,715| |Change in cash and cash equivalents in the year|770|1,460| |Cash and cash equivalents brought forward|2,501|1,041| |Cash and cash equivalents at the end of the year|3,271|2,501| ||2020|2019| |Reconciliation of net income to net cash flow from operating activities|£’000|£’000| |Net movement in funds|(6,584)|4,805| |Depreciation|117|128| |Loss on disposal|13|-| |Interest and dividends|(962)|(2,133)| |Movement on investments|(3,663)|(8,095)| |Decrease/(increase) in debtors|143|(959)| |Increase/(decrease) in creditors|!,191|(2)| |Decrease in stock|3|1| |Net cash used in operating activities|(9,742)|(6,255)| ||2020|2019| ||£’000|£’000| |Cash at bank|3,271|2,501|

| Analysis of changes in net debt:

1 January 2020 Cash flows 31 December 2020
£’000 £’000 £’000
Cash 2,501 770 3,271
Total 2,501 770 3,271
1 January 2019 Cash flows 31 December 2019
£’000 £’000 £’000
Cash 1,014 1,460 2,501
Total 1,014 1,460 2,501

| 1 Accounting policies

A) STATUTORY INFORMATION

The Musicians Benevolent Fund (operating as Help Musicians) is a charitable company limited by guarantee registered at 7-11 Britannia Street, London, WC1X 9JS.

B) BASIS OF PREPARATION

The financial statements are presented in sterling and rounded to the nearest thousand pounds.

The financial statements have been prepared in accordance with 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 and Republic of Ireland (FRS 102) (effective 1 January 2015)(Charities SORP FRS 102), and the Companies Act 2006. These financial statements consolidate the results of five registered charities which are managed together: Musicians Benevolent Fund, the Miriam Licette Scholarship Fund, the Willis & Grace Grant Trust, the Sybil Tutton Charitable Trust, and Scottish Musicians Benevolent Fund. The financial statements also consolidate the results of the charity’s wholly-owned subsidiary, MBF Trading Limited. Together, they are referred to as the Group.

The Miriam Licette Scholarship Fund, the Willis & Grace Grant Trust, and the Sybil Tutton Charitable Trust are included in these consolidated financial statements because the charity is its sole trustee and it is therefore controlled by the Trustees of the charity. MBF Trading Limited is included because it is wholly owned by the charity. Activities have been consolidated on a line by line basis in the statement of financial activities.

C) PUBLIC BENEFIT ENTITY

The Charity meets the definition of a public benefit entity under FRS 102.

D) GOING CONCERN AND KEY JUDGEMENTS

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern.

The Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. Preparation of the accounts require trustees and management to make significant judgements and estimates. The most significant areas of judgement that affect the charity’s accounts are investment performance and accrued legacy income.

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities as the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

Further discussion of our activities, within the context of going concern, can be found on page 30.

E) INCOME

Donation income is recognised once the charity has entitlement to the funds, it is probable that income will be received and the amount can be measured reliably. For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution.

Income from other trading activities is recognised as the related goods are provided.

Investment income is recognised when receivable and the amounts can be measured reliably. Dividends are recognised once the dividend has been declared and notification has been received the dividends are due.

F) DONATIONS OF GIFTS, SERVICES AND FACILITIES

Donated professional services are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of the economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. Donated professional services are recognised on the basis of the value of the gift to the charity, which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market. This amount is then recognised in expenditure in the period of receipt.

G) EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

48 NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020 49

H) REDUNDANCY AND TERMINATION PAYMENTS

Redundancy and termination payments are accounted for when the termination has been communicated to the employee. The total amount for the reporting period and the nature of the payment are disclosed in the staff costs note.

I) GRANTS PAYABLE

Grants payable are payments made to third parties. Single or multi-year grants are accounted for when the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

J) ALLOCATION OF SUPPORT COSTS

Support costs have been allocated between governance costs and other support costs. Governance activities comprise organisational administration and compliance with constitutional and statutory requirements.

Governance and support costs have been apportioned between all activities based on staff head count.

K) FUND ACCOUNTING

Restricted funds (note 11) are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for its general purposes. They include funds designated by the trustees for particular purposes where their use remains at the discretion of trustees.

L) TANGIBLE FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation and impairment losses. Assets costing more than £1,500 are capitalised.

Land is not depreciated. Depreciation on other assets is calculated on a straight-line basis to allocate the charge to their residual values over the estimated useful lives as follows:

Freehold property over 50 years following acquisition

Other building

this is a functional asset with a beneficiary as a life tenant and is therefore not depreciated

M) INVESTMENTS

Investments are a form of basic financial instruments and are initially shown in the financial statements at bid price. Movements in the market values of investments are shown as unrealised gains and losses in the Statement of Financial Activities.

Movements in the market values are shown as realised and unrealised investment gains and losses combined in the Statement of Financial Activities.

N) SOCIAL INVESTMENTS

These are concessionary loans made to beneficiaries secured on their property or other assets. Loans are repayable on the sale of the specified asset. The loans are recognised at the amount paid with the carrying amount adjusted in subsequent years to reflect repayments and accrued interest. The loans were made on the premise that we would not be aiming to achieve a financial return and were made wholly to advance our charitable purposes.

O) STOCKS

Stocks are valued at the lower of cost and net realisable value.

P) VAT

The charity is not registered for VAT and irrecoverable VAT is included in expenditure. The charity’s subsidiary, MBF Trading Limited is VAT registered.

Q) DEBTORS

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

R) CASH AT HAND AND IN BANK

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 account.

S) CREDITORS AND PROVISIONS

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

T) FINANCIAL INSTRUMENTS

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

U) PENSION SCHEME

Help Musicians contributes to a group personal pension scheme, the assets of which are administered by Aviva. It is a defined contribution scheme. All contributed costs are accounted for on the basis of charging the cost of providing pensions over the period when the charity benefits from the employees’ services. The charity has no further liability under the scheme.

| 2 Analysis of group income

Unrestricted funds Restricted funds Total 2020 Total 2019
£’000 £’000 £’000 £’000
Donations and legacies
Legacies 2,365 - 2,365 2,611
Donations 931 82 1,013 763
Hardship donations - 8,167 8,167 -
Charitable activities
Gifts in Kind - - - 7
Other trading activities
Trading income 52 - 52 37
Rental income 56 - 56 63
Investment income
Dividends 753 204 957 2,124
Bank interest 5 - 5 9
Total income 4,162 8,453 12,615 5,614
Unrestricted funds Restricted funds Total 2019 Total 2018
£’000 £’000 £’000 £’000
Donations and legacies
Legacies 2,611 - 2,611 1,525
Donations 711 52 763 513
Charitable activities
Gifts in Kind 7 - 7 -
Other trading activities
Trading income 37 - 37 56
Rental income 63 - 63 61
Investment income
Dividends 1,785 339 2,124 2,113
Bank interest 9 - 9 1
Total income 5,223 391 5,614 4,269

50 NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020 51

| 3a Grants payable to organisations

| 1b Analysis of expenditure

CHARITABLE ACTIVITIES

|| 3a Grants payable to organisations||| |---|---|---| ||2020|2019| ||£'000|£'000| |British Association of Performing Arts Medicine (BAPAM)|200|200| |Black Lives in Music|50|-| |National Opera Studio|21|40| |Scottish Music Information Centre Limited|21|40| |Serious Events Limited|21|40| |Young Classical Artists Trust|21|40| |Sound City (Liverpool) Limited|21|40| |Aldeburgh Music (Snape Maltings)|21|40| |Punch Records|20|37| |Oh Yeah Music Centre|19|37| |Spitalfields Festival Limited|19|40| |National Youth Jazz Orchestra|8|15| |Manchester Jazz Festival|16|36| |Higher Rhythm Ltd|16|31| |Philharmonia Limited|15|37| |Urban Development|-|30| |Brighter Sound|15|29| |Drake Music|13|25| |Bristol Music Trust|10|19| |English Folk Dance and Song Society|6|12| |Sound Festival|7|13| |Lancaster Jazz Festival|4|5| |Sonic Bothy|-|13| |The Music Works|6|11| |Dumfries Music Conference|-|15| |The Yard Theatre|-|15| |Association of British Orchestras|-|6| |Total|550|865|

Raising
funds		 Hardship
Support
Schemes		 Health and
Welfare		 Creative
programme		 Raising
awareness		 Support
costs		 Governance
costs		 2020
Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Hardshipsupport schemes - 14,725 - - - - - 14,725
Financial and medicalgrants - - 1,571 - - - - 1,571
Wellbeingservices - - 334 - - - - 334
BAPAM - - 200 - - - - 200
Educational andprojectgrants - - - 1,187 - - - 1,187
Business support and mentoring - - - 201 - - - 201
National Grantsprogramme - - - 350 - - - 350
Research - - 22 16 - - - 38
Staff costs 598 305 455 337 465 807 101 3,068
Trainingand recruitment - - - - - 78 13 91
Events 13 - - - 2 15 - 30
Publicityand advertising 4 28 - - 28 - - 60
Operations 32 - 3 1 28 313 - 377
Travel and subsistence 1 - 37 17 - 2 1 58
Legal andprofessional fees 118 25 25 40 78 125 - 411
Depreciation - - - - - 131 - 131
Other costs 26 - 3 - - 1 - 30
Total direct expenditure 792 15,083 2,650 2,149 601 1,472 115 22,862
Support and governance costs 429 99 397 364 298 (1,472) (115) -
Total expenditure 1,221 15,182 3,047 2,513 899 - - 22,862

The charity has given 32,000 grants totalling £17.5m in 2020 (2019: £3.6m to 8,409) and £550k in grants to 23 organisations (2019: £866k to 26).

CHARITABLE ACTIVITIES CHARITABLE ACTIVITIES
Raising Health and Creative Raising Support Governance 2019
funds Welfare programme awareness costs costs Total
£’000 £'000 £'000 £’000 £'000 £'000 £'000
Financial and medicalgrants - 2,219 - - - - 2,219
Wellbeingservices - 533 - - - - 534
BAPAM - 200 1 - - - 200
Education andprojectgrants - - 802 - - - 802
National Grantsprogramme - - 666 - - - 665
Research - 66 66 - - - 132
Staff costs 566 476 345 410 844 133 2,774
Trainingand recruitment - 2 2 - 76 10 90
Events 48 2 7 41 89 - 187
Publicityand advertising 10 - - 54 - - 64
Operations 11 2 1 10 285 3 312
Travel and subsistence 8 85 45 2 20 8 168
Legal andprofessional fees 262 14 71 51 184 10 593
Depreciation - - - - 128 - 128
Other costs 26 - - - 10 - 36
Total direct expenditure 931 3,599 2,006 568 1,636 164 8,904
Support andgovernance costs 574 451 410 365 (1,636) (164) -
Total expenditure 1,505 4,050 2,416 933 - - 8,904

52

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020 53

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020

| 4 Staff costs

|| 4 Staff costs||| |---|---|---| ||2020|2019| ||£'000|£'000| |Salaries and wages|2,374|2,143| |Social security costs|238|225| |Employer’s contribution to defined contribution pension scheme|235|214| ||2,847|2,582| |Other employee benefits|10|11| |Agency staff|106|84| |Self-employed fees|105|97| ||3,068|2,774| |In addition, redundancy costs are analysed in the table below:||| ||2020|2019| ||£'000|£'000| |Redundancy payments|17|-| ||17|-|

The charity paid £16,685 (2019: £NIL) in ex gratia termination payments as compensation for loss of employment. There were no related pension payments.

| 5 Net expenditure for the year

2020 2019
£'000 £'000
This is stated after charging:
Auditor's remuneration (excluding VAT):
Audit 19 20
Other services 1 1
Operating lease rentals 4 9
Depreciation 117 128

| 6 Trustees’ remuneration and expenses

None of the Trustees received remuneration during the year (2019: none).

Expenses totalling £1,039 (2019: £5,618) were reimbursed to four members of the Board of Trustees (2019: five). These payments relate mainly to travel costs.

| 7 Tangible fixed assets - group and charity

The number of employees whose emoluments for the year fell within the following bands were:

2020 2019
No. No.
£60,001 - £70,000 - 1
£70,001 - £80,000 1 1
£80,001 - £90,000 1 2
£100,000 - £110,000 1 -
£110,001 - £120,000 - 1
£130,001 - £140,000 1 -

Four employees earning more than £60,000 (2019: five) participated in the defined contribution scheme. Contributions of £39,493 (2019: £41,725) were made during the year for these employees.

The key management personnel of the charity are the Chief Executive and the Executive team; aggregate remuneration and benefits for the key management personnel is £483,537 (2019: £511,556).

The average number of employees (head count based on number of staff employed) was:

2020 2019
No. No.
Raising funds (fundraising) 13 12
Hardship support schemes 3 -
Health & Welfare 12 11
Creative Programme 11 10
Raising awareness (communications) 9 9
Support (finance and operations) 11 11
Governance (secretariat) 3 3
Total 62 56
Freehold Leasehold Fixtures and Computer
property Property fittings equipment Total
£'000 £’000 £'000 £'000 £'000
COST
At the start of the year 2,280 100 904 270 3,554
Additions - - - 59 59
Disposals - - (19) (2) (21)
At the end of the year 2,280 100 885 327 3,592
ACCUMULATED DEPRECIATION
At the start of the year 234 - 635 252 1,121
Charge for year 46 - 56 15 117
Depreciation on disposals - - (6) (2) (8)
At the end of the year 280 - 685 265 1,230
NET BOOK VALUE
At the end of the year 2,000 100 200 62 2,362
At the start of the year 2,046 100 269 18 2,433

54 NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020 55

| 8a Investments

GROUP CHARITY
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Fair value at the start of the year 46,646 60,953 43,156 56,046
Additions at cost 26,749 16,564 24,043 14,906
Disposal proceeds (19,438) (38,966) (16,319) (35,124)
Unrealised losses 3,462 8,434 3,060 7,618
Realised gains/(losses) 201 (339) 169 (290)
57,620 46,646 54,109 43,156
Cash held by investment managers 64 16,985 61 15,334
Fair value at the end of the year 57,684 63,631 54,170 58,490
Historical cost at the end of the year 53,537 52,878 49,386 48,934
INVESTMENTS COMPRISE:
GROUP CHARITY
2020 2019 2020 2019
£’000 £’000 £’000 £’000
UK investment funds 57,615 46,641 54,079 43,126
UK investment in trading subsidiaries - - 25 25
UK unlisted shares 5 5 5 5
Cash 64 16,985 61 15,334
57,684 63,631 54,170 58,490

| 8b Social investments

GROUP CHARITY
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Concessionary loans 67 66 67 66

| 8c Investments in trading subsidiaries

Proportion of Investment
Name of subsidiary Holding
voting rights
Registered in		 £'000
MBF Trading Ltd Ordinary Shares
100%
England		 25
Income from the trading subsidiary is received by way of Gift Aid. Please refer to note 13 for further details.

| 10 Creditors falling due within one year

GROUP CHARITY
2020 2019
2020		 2019
£’000 £’000
£’000		 £’000
Trade creditors 77 80
75		 78
Accruals 164 200
160		 198
Other taxes & social security 99 89
93		 84
Current accounts with associated trusts - -
3,838		 1,639
Current accounts with trading subsidiaries - -
32		 19
Grants payable 1,846 711
1,711		 681
Deferred Income 100 15
100		 15
Rent Deposit 14 14
14		 14
2,300 1,109
6,023		 2,728
ANALYSIS OF GRANTS PAYABLE GRANTS TO INDIVIDUALS GRANTS TO ORGANISATIONS
Hardship Financial Creative Creative
BAPAM		 Group total
support and
schemes medical
grants
£'000 £'000 £'000 £'000
£'000		 £'000
Commitments as at 1 January 2020 - 2 352 357
-		 711
Grants awarded in year 14,725 1,571 1,187 350
200		 18,033
Payments made in year (13,540) (1,573) (935) (650)
(200)		 (16,898)
Commitments as at
31 December 2020		 1,185 - 604 57
-		 1,846
GROUP CHARITY
2020 2019
2020		 2019
£’000 £’000
£’000		 £’000
ANALYSIS OF DEFERRED INCOME
At 1 January 15 14 15 14
Released in the year (15) (14) (15) (14)
Deferred in the year 100 15
100		 15
At 31 December 100 15
100		 15

Funds held as agent

During 2020 we acted as agent for the Music Managers Forum (MMF) lo facilitate the receipt of funds and distribute payments of their Hardship fund.

| 9 Debtors due within one year

GROUP CHARITY
2020 2019 2020 2019
£’000 £’000 £’000 £’000
Accrued legacy income 1,796 2,029 1,796 2,029
Prepayments 91 65 91 65
Other debtors 160 96 160 96
2,047 2,190 2,047 2,190

These transactions do not show as part of Help Musicians income, expenditure or funds.

2020 2019
£’000 £’000
Funds received on behalf of MMF 322 -
Payments made on behalf of MMF (204) -
Balance of funds as at 31 December 2020 118 -

56 NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020 57

| 11 Movement in funds

At 31 Dec
At 1 Jan 2020 Income Expenditure Gains Transfers 2020
£’000 £’000 £’000 £’000 £’000 £’000
RESTRICTED FUNDS
Hardship support schemes - 8,167 (15,182) - 7,457 442
Alan Fluck Memorial Fund 394 6 (1) 25 - 424
Jacquéline du Pré Special Fund 2,072 37 (5) 157 - 2,261
Ian Fleming Music Awards Fund 2,110 55 (68) 70 - 2,167
Gwyneth Harrison Gift 40 - (5) - - 35
Music Minds Matter - 3 (107) - 104 -
Scotland - 64 (126) - 62 -
Northern Ireland - 15 (145) - 130 -
Wales - - (4) - 4 -
Charity restricted funds 4,616 8,347 (15,643) 252 7,757 5,329
ASSOCIATED TRUSTS
Miriam Licette Scholarship Fund 389 6 (1) 25 105 524
Willis & Grace Grant Trust 1,741 27 (4) 114 482 2,360
Sybil Tutton Charitable Trust 4,653 73 (70) 310 1,314 6,280
Group restricted funds 11,399 8,453 (15,718) 701 9,658 14,493
UNRESTRICTED FUNDS
Designated (fixed assets) 2,433 59 (130) - - 2,362
General funds 55,886 4,103 (7,014) 2,962 (9,658) 46,279
Unrestricted funds 58,319 4,162 (7,144) 2,962 (9,658) 48,641
Group total funds 69,718 12,615 (22,862) 3,663 - 63,134

Notes to restricted funds

Notes to designated funds

| 12 Analysis of group net assets between funds

Unrestricted funds Restricted funds Total funds
£’000 £’000 £’000
FUND BALANCES AT 31 DECEMBER 2020
ARE REPRESENTED BY:
Tangible fixed assets 2,362 - 2,362
Investments 48,021 9,663 57,684
Social investments 67 - 67
Current assets 491 4,830 5,321
Current liabilities (2,300) - (2,300)
Total net assets 48,641 14,493 63,134

ANALYSIS BY FUND

Tangible fixed Social Current
assets Investments investments assets Total liabilities Net assets
£’000 £’000 £’000 £’000 £’000 £’000
UNRESTRICTED FUNDS
Help Musicians - 48,021 67 433 (2,288) 46,233
MBF Trading - - - 58 (12) 46
DESIGNATED FUNDS
Fixed asset fund 2,362 - - - - 2,362
2,362 48,021 67 491 (2,300) 48,641
RESTRICTED FUNDS
Hardship Support Schemes - - - 442 - 442
Alan Fluck Memorial Fund - 303 - 121 - 424
Jacqueline Du Pré Special Fund - 1,895 - 366 - 2,261
Gwyneth Harrison Gift - - - 35 - 35
Ian Fleming Music Awards Fund - 2,033 - 134 - 2,167
Miriam Licette Scholarship Fund - 300 - 224 - 524
Willis & Grace Grant Trust - 1,376 - 984 - 2,360
Sybil Tutton Charitable Trust - 3,756 - 2,524 - 6,280
- 9,663 - 4,830 - 14,493
Total 2,362 57,684 67 5,321 (2,300) 63,134

58 NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020 59

| 13 Results of trading subsidiary

The charity owns 100% of the share capital amounting to 25,000 of ordinary shares of £1 each. MBF Trading Limited (company registered no: 3053538) is located at 7 -11 Britannia Street, London, WC1X 9JS and is engaged in activities to support the charity. The subsidiary donates its taxable profits to the charity each year and its trading results for the year as extracted from its audited financial statements are summarised below:

Turnover
Operating costs		 2020
£’000
2019
£’000
52
37
(30)
(28)
22
9

THE ASSETS AND LIABILITIES OF THE SUBSIDIARY WERE:

Current assets
Current liabilities
Share capital		 2020
£’000
2019
£’000
58
42
(12)
(8)
46
34

| 14 Related party transactions

During 2020, Help Musicians provided grant funding of £50,000 to Black Lives in Music which was a company set up by one of our Trustees, Charisse Beaumont. The purpose of this funding is to research and report on the experiences of musicians of colour, with the aim to help organisations (including Help Musicians) achieve diversity and inclusion goals.

In addition, Help Musicians is the sole Trustee of the following charities which make awards of various kinds and are managed by the charity’s own committees:

Aggregate donations received from Trustees during the year were £400 (2019: £1,340).

Reimbursements and emoluments are disclosed in note 6.

| 15 Pension scheme

Help Musicians operates a defined contribution scheme for all qualifying employees. The assets of the funds are held separate Help Musicians operates a defined contribution scheme for all qualifying employees. The assets of the funds are held separate in funds administered by independent pension providers. The total cost of pensions incurred by the charity was £234,695 (2019: £214,385). Included in other creditors is £22,080(2019: £18,993) in respect of the pension scheme.

| 16 Operating lease commitments - group and charity

The charity’s total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Less than one year
One to five years		 EQUIPMENT
2020
£’000
2019
£’000
4
4
1
-
5
4

The charity will receive £4,800 rent in the next year (2019: £63,800).

| 17 Consolidated Statement of Financial Activities (prior year)

Unrestricted funds Restricted funds Total funds
£’000 £’000 £’000
Income from:
Donations and legacies 3,322 52 3,374
Charitable activities 7 - 7
Other trading activities 100 - 100
Investments 1,794 339 2,133
Total income 5,223 391 5,614
Expenditure on:
Raising funds 1,309 204 1,505
Charitable activities:
Health & Welfare 3,391 659 4,050
Creative Programme 2,187 229 2,416
Raising Awareness 831 102 933
Total expenditure 7,710 1,194 8,904
Net movement in funds
before gains on investments (2,487) (803) (3,290)
Transfers between funds (1,223) 1,223 -
Net gains on investments 6,792 1,303 8,095
Net movement in funds 3,082 1,723 4,805
Reconciliation of funds
Total funds brought forward 55,237 9,676 64,913
Total funds carried forward 58,319 11,399 69,718

60 NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020 61

| 18 Movement in funds (prior year)

At 1 Jan 2019 Income Expenditure Gains Transfers At 31 Dec 2019
£’000 £’000 £’000 £’000 £’000 £’000
RESTRICTED FUNDS
Alan Fluck Memorial Fund 342 10 (1) 43 - 394
Jacquéline du Pré Special Fund 1,745 67 (8) 268 - 2,072
Ian Fleming Music Awards Fund 1,185 69 (71) 227 - 2,110
Gwyneth Harrison Gift 40 - - - - 40
Scotland (36) 16 (212) - 232 -
Northern Ireland (200) 13 (260) - 447 -
Northern England - - (8) - 8 -
Wales - - (19) - 19 -
Musicians' Hearing Health Scheme - 15 (426) - 411 -
Music Minds Matter - 2 (108) - 106 -
Charity total – restricted funds 3,776 192 (1,113) 538 1,223 4,616
ASSOCIATED TRUSTS
Miriam Licette Scholarship Fund 337 11 - 41 - 389
Willis & Grace Grant Trust 1,503 49 (5) 194 - 1,741
Sybil Tutton Charitable Trust 4,066 133 (76) 530 - 4,653
Marie Louise von Motesiczky Trust (6) 6 - - - -
Group restricted funds 9,676 391 (1,194) 1,303 1,223 11,399
UNRESTRICTED FUNDS
Designated (fixed assets) 2,522 39 (128) - - 2,522
Designated (Agenda 2021) 2,446 - (1,929) - (517) -
General funds 50,269 5,184 (5,653) 6,792 (706) 55,886
Unrestricted funds 55,237 5,223 (7,710) 6,792 (1,223) 58,319
GROUP TOTAL FUNDS 64,913 5,614 (8,904) 8,095 - 69,718

| 19 Analysis of group net assets between funds (prior year)

Unrestricted funds Restricted funds Total funds
£’000 £’000 £’000
FUNDS AT 31 DECEMBER 2019
WERE REPRESENTED BY:
Tangible fixed assets 2,433 - 2,433
Investments 54,400 9,231 63,631
Social investments 66 - 66
Current assets 2,528 2,169 4,697
Current liabilities (1,109) - (1,109)
Total net assets 58,318 11,399 69,718

ANALYSIS BY FUND

Tangible Social Current Total
fixed assets Investments investments assets liabilities Net assets
£’000 £’000 £’000 £’000 £’000 £’000
UNRESTRICTED FUNDS
Help Musicians - 54,400 66 2,486 (1,101) 55,851
MBF Trading - - - 42 (8) 34
DESIGNATED FUNDS
Fixed Asset Fund 2,433 - - - - 2,433
2,433 54,400 66 2,528 (1,109) 58,318
RESTRICTED FUNDS
Alan Fluck Memorial Fund - 287 - 107 - 394
Jacqueline Du Pré Special Fund - 1,803 - 270 - 2,073
Gwyneth Harrison Gift - - - 40 - 40
Ian Fleming Music Awards Fund - 1,975 - 135 - 2,110
Miriam Licette Scholarship Fund - 284 - 105 - 389
Willis & Grace Grant Trust - 1,309 - 432 - 1,741
Sybil Tutton Charitable Trust - 3,573 - 1,080 - 4,653
- 9,231 - 2,169 - 11,399
Totals 2,433 63,631 66 4,697 (1,109) 69,718

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