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2024-12-31-accounts

Charity No. 258348 (England and Wales)

Royal Watercolour Society

Trustees’ report and financial statements for the year ended 31 December 2024

Contents

Royal Watercolour Society

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Page
Reference and administrative details 3
Report ofthe Council 5
Independent examiner’s report 11
Statement offinancial activities 12
Balance sheet 13
Notestothefinancialstatements 14

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Page 2

For the year ended 31 December 2024

Royal Watercolour Society

Reference and administrative details

a a
Registered charity number 258348
Charityname Royal Watercolour Society istheworking name ofthe
registered charity Royal Society of Painters in Water Colours
Council Until 28April2024:
Charles Williams (President)
Jim Hunter (Senior Vice President)
John Crossley (Junior Vice President)
Martin Jacobs (Hon. Treasurer)
Rika Newcombe (Hon. Curator)
Lottie Cole
John Duffin
Chloe Fremantle
Jill Leman
Anne Lynch
Julia Midgeley
Olivia O’Sullivan
David Wiseman
Mark Raggett
From 28April 2024 and tothe date of signing
Charles Williams (President)
James Hunter (SeniorVice President)
John Crossley (Junior Vice President)
Jill Leman
Martin Jacobs (Hon. Treasurer)
Anne Lynch
David Wiseman
Olivia O'Sullivan
Julia Midgley
Chloe Freemantle
Lottie Cole
Davina Jackson (Hon. Curator)
Mark Raggett
Paul Regan
Administrative office Bankside Gallery
48 Hopton Street
Blackfriars
London
SE19JH

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Royal Watercolour Society

Reference and administrative details For the year ended 31 December 2024

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Bankers NationalWestminsterBank Plc
91 Westminster Bridge Road
London
SE1 7HW
Investment advisers Cazenove Capital Management Limited
12 Moorgate
London
EC2R 6DA
Independentexaminer Cara Turtington FCADChA
Saffery LLP
71 Queen Victoria Street
London
EC4V4BE

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Royal Watercolour Society

Report of the members of the Council For the year ended 31 December 2024 gSSS eet

Introduction

The Council is pleased to present the annual report and financial statements of the Royal Watercolour Society for the year ended 31 December 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with its own Laws and Regulations, the Charities Act 2011 and Accounting and reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

Structure, governance and management

Governing document and legal status

The Royal Watercolour Society was founded in 1804 and received its Royal Patronage in 1881. The Society has administered its affairs and exhibited as an independent body since its foundation. The Society is an unincorporated association, governed by an internally approved set of Laws. The Society is a registered charity No. 258348.

Related parties

The Royal Watercolour Society and The Royal Society of Painter-Printmakers are jointly and equally owners of Bankside Gallery, a company limited by guarantee and a registered charity. The Royal Watercolour Society works regularly in partnership with The Royal Society of Painter-Printmakers and Bankside Gallery to pursue its charitable purposes, and shares some common Council/Board members.

Organisational structure

The governance and strategic planning of the Society are carried out by a Council of Members (acting as trustees of the charity) that meets quarterly. The Council comprises the officers of the Society elected by ballot, together with eight Members who serve for three years. The President is also a custodian Trustee. The officers of the Society comprise the President, two Vice Presidents, and a Treasurer who provides financial reports to Council.

An Exhibitions Committee is responsible for considering Society exhibitions. The Director of Bankside Gallery is charged with finding suitable artists or organisations to hire the Gallery for exhibitions when it is not being used for shows by Members ofthe two Royal Societies. To ensure the requisite standard of work, all external proposals are reviewed by the two Society Presidents.

Recruitment and appointment of Council members

Council members are elected to carry out defined roles; in addition to the usual officer duties, these are Exhibitions and Membership. Appointments are for a term of three years, with the possibility of reappointment.

Members of the Council are elected at an Annual General Meeting. A limited number of new members may be co-opted by the President.

Investment powers and management

All funds requiring investment are, in the absence of any special direction by a General Meeting of the Society, applied or invested by the Council, who have authority to effect transactions of stocks and shares held by them for the Society.

Funds are managed, on behalf of the Council, by Cazenove Capital Management Limited. Ne ee eee ne eee

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Royal Watercolour Society

Report of the members of Council (continued) For the year ended 31 December 2024 NeneeTeen

Risk assessment

Council reviews annually the major risks to which the charity is exposed, and takes action as appropriate to manage and mitigate those risks.

The principal risk faced by the Society is its limited sources of income which, in recent years, have been insufficient to cover the cost of its activities. Council is working to reduce this risk by implementing tighter controls over expenditure and by seeking ways to increase the Society’s income in the future.

The RWS owns a long term lease for a gallery in Whitcomb Street near Trafalgar Square (The Whitcomb Street Gallery). The Society has a vision and plan to develop this gallery. Fundraising has been undertaken in order to support the fitting out. It is intended that the gallery space will be used for a number of purposes in line with the objectives of the Society. In order to progress with this opportunity the gallery space is being promoted for short term commercial hire. Such activity brings opportunity but also a range of associated risks to the RWS for which the Council is seeking to manage and mitigate as appropriate.

The Society is also vulnerable to the high cost of exhibitions, and to the susceptibility of painting sales to economic conditions and increasing competition for sales of artworks. Council mitigates these risks through careful planning of its exhibitions, and through working closely with Bankside Gallery in the promotion of its exhibitions to the public.

The In the Society also continues to work closely with Bankside Gallery staff in the relevant areas.

Reserves policy

Council has reviewed the Society’s need for reserves in line with the guidance issued by the Charity Commission. Council currently recognises the need to set aside amounts to ensure the continuance of the following activities, for a minimum period of two years. Until such time as the Society is able to regularly cover its costs, calls are made on the Society’s funds for:

At 31 December 2024, the Society held total reserves of £1,103,572 (2023: £1,073,221), comprising unrestricted reserves of £901,007 (2023: £882,973) restricted reserves of £170,249 (2023: £158,125) and an expendable endowment of £32,316 (2023: £32,123). Council is of the opinion that, in light of its future plans to mitigate the risks faced by the Society, the reserves held at the end of the year were sufficient to enable the Society to work successfully towards fulfilling its aims and objectives.

Restricted Funds comprise the Peter de Wint Capital Fund and the Peter de Wint General Fund. The Peter de Wint funds are held for long-term use in accordance with the donor's intentions.

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Report of the members of Council (continued) For the year ended 31 December 2024

Royal Watercolour Society

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Reserves policy (continued)

Designated Funds fall into two broad categories; firstly, funds set aside by Council to absorb future depreciation costs of recent capital projects - the balances on these funds will reduce though annual depreciation charges in accordance with the depreciation policy set out in Note 1.4 until such time as the related assets have been fully written down; secondly, funds donated to the Society or set aside by Council either to be used for a particular purpose, or to record funds used and remaining in respect of a particular legacy or donation. During the year the Council reviewed the large number of designated funds held and their ability to support the ongoing work of[the][RWS,][particularly][as][the][Whitcomb][Street][gallery][develops.] It was decided that the funds in respect of ongoing expenditure should be released to general funds and only the fixed asset funds would be carried forward. More details of these transfers can be seen in note 13 to the financial statements.

Summaries of movements in all funds during the year, together with a detailed description of the purposes for which the various funds may be used, are contained in the notes to the accounts.

Accounting records

The preparation of the Society's accounting records is outsourced to a bookkeeper who is suitably qualified for the task. Internal controls, appropriate for a charity of this size, have been put in place to protect the Society’s funds and to ensure their proper application.

Objectives and activities

Objectives The main objectives of the Society are the advancement of education and the improvement of public taste in art by means of the encouragement of watercolour painting.

Activities The Royal Watercolour Society aims to achieve its objectives through the following activities:

Public benefit Council has paid due regard to the Charity Commission’s guidance on public benefit in deciding what activities the charity should undertake. The Royal Watercolour Society recognises and welcomes the need to carry out its charitable activities for the benefit of the general public, and retains this aim at the centre of its strategic planning. The Society continues to offer free admission to all of its exhibitions and is working

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Royal Watercolour Society

Report of the members of Council (continued) For the year ended 31 December 2024 e ee eee ee

to increase the amount and breadth of education work it carries out in the local community and beyond, seeking to involve people from the widest possible range of backgrounds and abilities.

Achievements and performance

The Royal Watercolour Society has worked hard to develop a programme of exhibitions, talks and events in support of its charitable aims and objectives. At a time when public funding of the Arts has been squeezed by other pressing concerns, the Society has stood firm and strengthened its efforts in the important task of promotion of the Arts, and the Visual Arts and works on paper in particular.

Council seeks to preserve the Society's nationally important historic legacy in the form of its Archive and Diploma collection, as well as being a significant cultural voice speaking on behalf of the Visual Arts and of the UK's tradition of works on paper and that of watercolour in particular, for which the Society is internationally recognised. Council continues to challenge itself to be bold in its mission to promote its artistic and charitable aims through exhibitions and educational outreach.

Achievements against objectives

The Royal Watercolour Society set out, at the start of 2024, to carry out the following activities:

Financial review

Sources of funding and financial position The Royal Watercolour Society funds its activities and administrative costs through membership subscriptions, grants, donations, bequests, income from exhibitions and education events, royalties from publications, and investment income and gains generated on its invested funds. The Whitcomb Street Gallery also offers a potential source of income for the Society and a plan is being put together to exploit this opportunity.

The financial position of the Charity is set out in the Statement of Financial Activities on page 12 and the Balance sheet on page 13.

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Report of the members of Council (continued) For the year ended 31 December 2024

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Royal Watercolour Society

During the year under review, total income amounted to £261,534 (2023: £187,925).

The cost of raising funds in the year was £9,504 (2023: £10,554), the total costs of charitable activities was £287,177 (2023: £256,893), of which support costs and governance costs (see note 3) amounted to £166,717 (2023: £174,233) and £9,658 (2023: £4,940) respectively.

Before investment movements, the Society made a net deficit from activities of £35,147 (2023: net deficit of £79,522). After investment gains of £65,498 (2023: gains of £38,291), the Society’s Total Funds showed a net movement in the year of £30,351 (2023: net deficit of £41,231).

Investment performance

Investments are held in intermediate risk funds which provide opportunities for a good income return and also some growth of capital in real terms.

The coronavirus pandemic and the associated market volatility has had an impact on investment performance.

Plans for future periods

During 2025 and 2026, the Society plans to carry out the following activities:

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Royal Watercolour Society

Report of the members of Council (continued) For the year ended 31 December 2024

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Council’s responsibilities in relation to the financial statements

The charity’s trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the charity’s trustees to prepare financial statements for each year which give a true and fair viewofthe state of affairs of the charity, and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to:

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

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

By Order of the Council

Charles Williams President

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Royal Watercolour Society

Independent Examiner’s report to the trustees of the Royal Watercolour Society For the year ended 31 December 2024 ——eeee | report to the trustees on my examination of the accounts of the Royal Watercolour Society (the Charity) for the year ended 31 December 2024.

Respective Responsibilities of trustees and examiner

As the trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

| report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination | have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. | confirm that | am qualified to undertake the examination because | a member of the Institute of Chartered Accountants in England and Wales, which is one ofthe listed bodies.

| have completed my examination. | confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.

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

Cara Turtington FCAYDChA For and on behalf of Saffery LLP

\l Q)Un 2025 71 Queen Victoria Street London EC4V 4BE

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Page 11

Royal Watercolour Society

Statement of Financial Activities For the year ended 31 December 2024

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |ns| |Unrestricted|Designated|Restricted|Expendable|Total|Total| |General|Funds|Funds|Endowment|Funds|Funds| |Funds|Funds|2024|2023| |Note|£|£|£|£|£|£| |Income|and|endowments| |from:| |Donations and|legacies|2a|45,990|-|-|-|45,990|37,727| |Charitable|activities|2b|187,178|-|-|-|187,178|126,034| |Investments|25,658|-|2,708|-|28,366|24,164| |Total|258,826|-|2,708|-|261,534|187,925| |Expenditure|on:| |Raising funds|8,407|-|901|196|9,504|10,554| |Charitable|activities|267,287|17,220|670|2,000|287,177|256,893| |Total|3|275,694|17,220|1,571|2,196|296,681|267,447| |Net|(expenditure)/income| |before|(losses)/gains|on| |investments|(16,868)|(17,220)|1,137|(2,196)|(35,147)|(79,522)| |Net|gains/(losses)|on| |investments|52,122|-|10,987|2,389|65,498|38,291| |Net|income/(expenditure)| |for the year|35,254|(17,220)|12,124|193|30,351|(41,231)| |Transfers|between|funds|13|512,589|(512,589)|-|-|-|-| |Net movement|in funds|547,843|(529,809)|12,124|193|30,351|(41,231)| |Reconciliation|of funds| |Total|funds|brought forward|146,078|736,895|158,125|32,123|1,073,221|1,114,452| |Total|funds|carried forward|693,921|207,086|170,249|32,316|1,103,572|1,073,221|

----- End of picture text -----

The Statement of Financial Activities includes all gains and losses in the year.

All of the above amounts relate to continuing activities.

The notes on pages 14 to 28 form part of these financial statements.

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Page 12

Royal Watercolour Society

Balance sheet

As at 31 December 2024

— — — — — — —
Unrestricted Restricted Expendable
Endowment		 2024
Total		 2023
Total
Note £ £ £ £ £
Fixed assets
Tangible assets 5 228,815 - - 228,815 247,035
Investments 6 1,047,117 157,939 32,316 1,237,372 1,242,897
1,275,932 157,939 32,316 1,466,187 1,489,932
Current assets
Debtors 8 3,958 - - 3,958 2,421
Cash at bank and in
hand 40,976 12,310 - 53,286 29,688
44,934 12,310 - 57,244 32,109
Creditors: amounts
falling due within
oneyear 9 (143,616) - - (143,616) (105,609)
Net current (liabilities)/
assets (98,682) 12,310 - (86,372) (73,500)
Creditors: amounts due 10
after more than one
year (276,243) - - (276,243) (343,211)
Net assets 901,007 170,249 32,316 1,103,572 1,073,221
Charitable funds
Unrestricted income 13
funds 901,007 - - 901,007 882,973
Restricted income funds 14 - 170,249 - 170,249 158,125
Expendable endowment 15 - - 32,316 32,316 32,123
Totalfunds 901,007 170,249 32,316 1,103,572 1,073,221

The notes on pages 14 to 28 form part of these financial statements.

These financial statements were approved and signed by a member ofthe Council and authorised for issueon LZ Apr 2025.

Charles Williams Trustee Charity No. 258348

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Royal Watercolour Society

Notes to the financial statements

For the year ended 31 December 2024

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1. Accounting policies

1.1 Basis of accounting The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the notes to these accounts. The financial statements have been prepared in accordance with the second edition of the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Advantage has been taken of the exemption for charities with income less than £500,000 from preparing a cash flow statement.

The charity constitutes a public benefit entity as defined by FRS 102.

Council is of the opinion that there are no material uncertainties about the charity's ability to continue as a going concern. The Council has considered the impact of the coronavirus pandemic and do not believe this has an impact on the going concern status of the charity.

1.2 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Membership income is treated as a donation as the benefits of membership are not of significant monetary value and the fee paid is therefore treated as a donation to the charity's general funds.

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Royal Watercolour Society

For the year ended 31 December 2024

Notes to the financial statements (continued)

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1. Accounting policies (continued)

Expenditure is recognised on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. Costs in respect of future events or exhibitions are charged when the relevant events or exhibitions take place.

Support costs have been allocated between support costs and governance costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. All support costs are allocated to charitable and fundraising activities on the basis of time spent.

1.4 Tangible fixed assets and depreciation Expenditure on improvements, furniture and equipment that exceeds £1,000 is capitalised. Fixed assets are stated at cost less accumulated depreciation. Provision for depreciation of fixed assets held for use by the charity is made at annual rates calculated to spread the cost of each asset over its expected useful life. The depreciation rates currently in use are:

Leasehold property and improvements - Evenly over the remainder of the lease Gallery development Whitcomb Street —_- Evenly over 20 years Plant and security - straight line over 3 years Furniture and equipment - straight line over 5 years

Assets are not depreciated until they are brough fully into use by the charity.

1.7 Taxation No tax provision is included in the financial statements on the basis that all income for the registered charity is derived from wholly charitable activities.

1.8 Fund accounting The charity has restricted funds, where the donor has specified that they can only be used on specific projects in the future. All other funds are unrestricted.

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Royal Watercolour Society

Notes to the financial statements (continued) For the year ended 31 December 2024

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1. Accounting policies (continued)

Fund Accounting (continued)

Where funds are received via gift or legacy to support the longer term work of the charity these will be treated as an endowment. An endowment will be classed as permanent when the donor specifies that the capital must be maintained in perpetuity and as expendable in all other circumstances.

Designated funds have been nominated by the Council to represent their intentions to fund future projects or to reflect a wish of donors that was not legally binding at the time a gift was made. These funds can be undesignated and applied to any ofthe charitable activities in the future at the Council’s absolute discretion.

  1. Analysis of income a. Donations and legacies
2.
a.		 Analysis of income
Donations and legacies
General Designated Restricted Expendable 2024 2023
Funds Funds Funds Endowment Total Total
£ £ £ £ £ £
Membership income 28,865 - - - 28,865 27,273
Grants and donations 15,325 - - - 15,325 4,152
Legacies received - - - - - 4,262
Election fees 1,800 - - ~ 1,800 2,040
45,990 - - - 45,990 37,727
_
Donations and legacies
General Designated Restricted Expendable 2023
Funds Funds Funds Endowment Total
£ £ £ £ £
Membership income 27,273 - - - 27,273
Grants and donations 4,153 - - - 4,153
Legacies received 4,262 - - - 4,262
Election fees 2,040 - - - 2,040
37,728 - - - 37,728
b. Charitable activities
2024 2023
Total Total
£ £
Lease and service charge income 79,905 81,378
Gallery Hire and events 92,661 42,278
Auction income 12,025 -
Sundry income 2,587 2,378
187,178 126,034

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Royal Watercolour Society

For the year ended 31 December 2024

Notes to the financial statements (continued)

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3. Expenditure
2024
Direct Support Governance 2024 2023
costs costs costs Total Total
£ £ £ £ £
Raisingfunds 9,504 - : 9,504 10,554
Charitable activities:
Runningthe RWS 34,193 114,723 9,658 158,574 124,906
Support ofBankside Gallery 26,928 - . 26,928 23,850
Whitcomb Stdevelopment 49,681 51,994 - 101,675 108,137
Total charitable activities 110,802 166,717 9,658 287,177 256,893
Total expenditure 120,306 166,717 9,658 296,681 267,447
2023
Direct Support Governance 2023
costs costs costs Total
£ £ £ £
Raisingfunds 10,554 . . 10,554
Charitable activities:
Runningthe RWS 19,299 100,667 4,940 124,906
Support ofBankside Gallery 23,850 - - 23,850
Whitcomb Stdevelopment 34,571 73,566 - 108,137
Total charitable activities 77,720 174,233 4,940 256,893
Total expenditure 88,274 174,233 4,940 267,447
2024 2023
£ £
Net income/(expenditure) is stated after charging:
Depreciation 18,220 16,563
Examiner's remuneration:
- independent examination 1,550 1,700
- preparation ofaccounts 2,/18 2,750
-otheradvice 5,386 7,330

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Royal Watercolour Society

Notes to the financial statements (continued)

For the year ended 31 December 2024

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4. Staff costs

4. Staff costs
Included within direct costs ofcharitable charitable activities are staff costs of:
2023 2022
£ £
Wages and salaries 59,863 34,697
National insurance - (776)
Pensions 422 -
60,285 33,921
The average number ofemployees duringthe period was 2.
No employee earned over£60,000 in the current or preceding period.
5. Tangible fixed assets
Equipment Leasehold Gallery Total
property improvements
£ £ £ £
Cost
At 1January 2024 12,132 150,345 182,534 345,011
Additions - - - -
At 31 December 2024 12,132 150,345 182,534 345,011
Depreciation
At 1January 2024 4,220 83,072 10,684 97,976
Charge forthe year 4,004 3,438 10,778 18,220
At 31 December 2024 8,224 86,510 21,462 116,196
Net book value
At 31 December 2024 3,908 63,835 161,072 228,815
At1January2024 7,912 67,273 171,850 247,035

The leasehold property relates to the Gallery and Office premises at 48 Hopton Street, which is owned on a 60-year lease from the Corporation of London Borough of Southwark that expires on 27 August 2044. The lease was professionally valued in 2005, by Drivers Jonas, at £425,000.

Gallery improvement additions relate to capital works under construction on the Whitcomb Street property. Depreciation commenced in 2023, following the gallery space being brought fully into use.

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Royal Watercolour Society

Notes to the financial statements (continued)

For the year ended 31 December 2024

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5. Fixed assets (continued)

Historic Assets

The Society’s Historic Assets are insured for the sum of £2.5m and comprise the following:

ii) Other Works of Art: Through bequests, the Society has acquired some other works which are mainly held for historical, educational and artistic reasons.

6. Investments

2024 2023
£ £
Market value
At 1January 2024 1,157,786 1,059,818
Contribution offunds - 271,151
Fundswithdrawn (90,461) (227,934)
Income less fees 16,864 16,460
Realised and unrealised 65,499 38,291
(losses) /gains
Investment cash held on 87,684 85,111
deposit
At31December2024 1,237,372 1,242,897

At 31 December 2024, 20% of investments were held in UK Equity and Bond funds (2023: 34%), 53% in Equity and Bond funds outside the UK (2023: 38%), 19% in Hedge and Alternative Funds (2023: 19%), and the remaining 8% in cash (2023: 9%).

No investments were considered to be material in the context of the market value of the portfolio.

7. Council expenses

No Council member received any emolument or payment for professional or other services during the year, but three Council members (2023: one) received reimbursement of £565 (2023: £167) for travel, subsistence and telephone expenses incurred during the course of carrying out their duties as charity trustees.

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Royal Watercolour Society

Notes to the financial statements (continued)

For the year ended 31 December 2024

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8. Debtors
2024 2023
£ £
Trade debtors 38 314
Prepayments 3,920 2,107
3,958 2,421
9. Creditors
Amounts falling due within one year
2024 2023
£ £
Trade creditors 8,313 3,348
Amount dueto Bankside Gallery 1,197 80
Sundry creditors and accruals 18,121 26,739
Deferred income 115,985 75,442
143,616 105,609
10. Creditors
Amounts falling due after morethan one year 2024 2023
£ £
Deferred income due aftermore than one year 276,243 343,211
Deferred Income
Balance brought forward 418,052 478,647
Income deferred tothe followingyear 47,982 7,873
Deferred income released duringthe year (73,806) (68,468)
Balance carried forward 392,228 418,052
The deferred income is expected to be recognised as follows
Within 1year 115,985 66,968
Within 1 to 2 years 66,968 66,968
Within 2 to 5years 200,904 200,904
After morethan 5 years 8,371 83,212
392,228 418,052

Deferred income relates to rental income received in advance. Rental income was received for a period of 10 years in advance for the Whitcomb Street property, with the lease commencing on 13 February 2020.

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Royal Watercolour Society

Notes to the financial statements (continued) For the year ended 31 December 2024

ee

11. Contingent Liabilities

The Society is party to an indemnity, jointly with the Royal Society of Painter-Printmakers, to provide Bankside Gallery Limited with continuing financial support and assistance as may be agreed with the company for periods of two years at a time, and to make good any shortfall in the company’s annual budget over the same period.

No liability under the indemnity arose for the year ended 31 December 2024 and, based on the financial statements and budgets of Bankside Gallery Limited, Council is of the opinion that it is unlikely that any substantial liability will arise from the indemnity within two years.

12. Financial commitments

In February 2020 the charity signed a lease for a property on Whitcomb Street. The lease has a length of 250 years. The annual commitment is a peppercorn rent. This constitutes a long-term commitment for the charity.

NNeee

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Royal Watercolour Society

Notes to the financial statements (continued) For the year ended 31 December 2024

13. Unrestricted Unrestricted funds
President's
Fund		 David
Gluck		 Elizabeth
Scott		 Mezzanine
Dep’nFund		 Diploma
Room Dep’n		 Whitcomb
Street		 Joan
Williams		 ArthurWise
Whitcomb		 Total
Designated		 General
Funds		 Total
unrestricted
Fund Moore Fund Refurbishment Memorial Street Funds funds
Fund Fund Fund Fund
£ £ £ £ £ £ £ £ £ £
At 1January 647 96,623 11,221 24,204 24,247 176,792 273,984 129,177 736,895 146,078 882,973
2024
Income from
donations and
charitable
activities - - - - - - - - - 233,168 233,168
Investment
income - - - - - - - - . 25,658 25,658
Expenditure on
charitable
activities - - - (1,154) (1,283) (14,783) - - (17,220) (275,694) (292,914)
Transfers
between funds		 (647) (96,623) (11,221) = . (937) (273,984) (129,177) (512,589) 512,589 -
Investment
gains - - - - - - - - - 52,122 52,122
NN
At31 December - - - 23,050 22,964 161,072 - - 207,086 693,921 901,007
2024 NN

nS

Page 22

Royal Watercolour Society

Notes to the financial statements (continued)

For the year ended 31 December 2024

aeee

Unrestricted Funds (2023 comparative)

President’s
Fund		 David
Gluck
Fund		 Elizabet
h Scott
Moore		 Mezzanine
Dep’n
Fund		 Diploma
Room Dep’n
Fund		 Whitcomb
Street
Refurbishment		 Whitcomb
Street Rent
in Advance		 Joan
Williams
Memorial		 ArthurWise
Whitcomb
Street		 Total
Designated
Funds		 General
Funds		 Total
unrestricted
funds
Fund Fund Fund Fund Fund
£ £ £ £ £ £ £ £ £ £
At 1January
2023		 647 95,135 10,935 25,358 25,530 189,814 - 267,000 125,884 740,302 162,579 902,882
Incomefrom
donations and		 - - - - - - - - - - 163,761 163,761
charitable
activities
Investment
income		 - - - - - - - - - - 21,902 21,902
Expenditureon
charitable		 on - (1,578) (66) (1,154) (1,283) (14,231) (2,496) (1,621) (764) (23,194) (215,065) (238,259)
activities
Transfers
between fund		 - - - - - 1,210 (10,754) (9,544) 9,544 -
Investment
gains		 - 3,066 352 - - - 13,250 8,605 4,057 29,330 3,356 32,686
eee
At 31 647 96,623 11,221 24,204 24,247 176,792 - 273,984 129,177 736,895 146,078 882,973
December
2023
ps

a

Page 23

Royal Watercolour Society

Notes to the financial statements (continued) For the year ended 31 December 2024

13. Unrestricted funds (continued)

The income and capital bequests received from Mrs Elizabeth Scott Moore, Mr David Gluck and the JE Eddison Trust may be used at the discretion of the Council in accordance with its Reserves Policy as set out in the Report of the Council that introduces these financial statements.

The David Gluck Fund is invested in the Society's General Fund portfolio and not held in a separate and distinct investment portfolio or bank account; investment income is not currently reallocated from the General Fund to the David Gluck Fund.

The President’s Fund is designated to be used at the discretion of the President.

The purpose of the Collections Designated Fund varies over time, depending on the Council's priorities. All unrestricted income raised for the purpose of maintaining the Society’s collections, together with all related expenditure, is recorded in the Fund in order that an overview of activities in this area can be clearly seen. However, from time to time, Council agrees that certain elements of this expenditure may be financed from other funds, such as the General Fund, or the David Gluck Fund — in these cases, appropriate transfers are made from those funds to provide the agreed subsidy.

The Arthur Wise Whitcomb Street Fund was established using part of a legacy received from the estate of Arthur Wise in 2017 and 2018. It is to be used on the future expenses for the Whitcomb Street Gallery. The Joan Williams Memorial Fund was left to the Society by former member Joan Williams. The funds are unrestricted but has been designated as the Council intend to hold an exhibition or regular exhibition for young artists at the Whitcomb Street Gallery. However, the funds could be applied for any purposes at the discretion of the Council if required.

During the year, the Trustees agreed to reduce the number of designated funds held by the Charity, consolidating specific designated funds together into the general unrestricted funds of[the][Charity.] The designated funds transferred were the President’s Fund, the David Gluck Fund, the Elizabeth Scott Moore Fund, the Joan Williams Memorial Fund and the Arthur Wise Whitcomb Street Fund. The transfers are shown in the table of funds above.

The Diploma Room Depreciation Fund was established to record funds used to build the Diploma Collection Storage Room at Bankside Gallery, and depreciation charged in respect of this work. The room is used for the unrestricted purpose of education and learning about the Society’s Collections.

The Mezzanine Depreciation Fund was established to record funds used to build the mezzanine floor in the archive room at Bankside Gallery, and depreciation charged in respect of[this][work.]

The Whitcomb Street Refurbishment Fund relates to capital improvements at the Whitcomb Street property. These will be depreciated over the lift of the lease.

Deeee Page 24

Royal Watercolour Society

Notes to the financial statements (continued) For the year ended 31 December 2024

14. Restricted funds

Peter De PeterdeWint Whitcomb Total
Wint Capital General Fund Street Fund
Fund
£ £ £ £
At 1January 2024 4,551 153,574 - 158,125
Income - 2,708 - 2,708
Expenditure on charitable
activities - (1,571) - (1,571)
Transfers between funds - - - -
Investment gain/(losses) - 10,987 - 10,987
At31December2024 4,551 165,698 - 170,249

The Peter De Wint Funds are held to provide relief of distress among members (including honorary retired members) of the Royal Watercolour Society.

The Whitcomb Street Fund is raising funds for the refurbishment of the new Gallery space.

Restricted funds (2023)

PeterDeWint PeterdeWint Whitcomb Total
Capital General Fund Street Fund
Fund
£ £ £ £
At 1January 2023 4,551 147,632 26,132 178,315
Income
Expenditure on charitable		 -
-		 2,262
(854)		 -
(26,132)		 2,262
(26,986)
activities
Transfers between funds - - - -
investment gain/(losses) - 4,534 - 4,534
At 31December2023 4,551 153,574 - 158,125

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Page 25

Royal Watercolour Society

Notes to the financial statements (continued) For the year ended 31 December 2024

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |15.|Expendable endowment|Total|Total| |2024|2023| |£|£| |At|1 January 2024|32,123|33,254| |Income|-|-| |Expenditure|on|charitable|activities|(2,196)|(2,202)| |Transfers|between|funds|-|-| |Investment|gains/(losses)|2,389|1,071| |At|31|December|2024|32,316|32,123|

----- End of picture text -----

Part of a legacy received from the estate of Arthur Wise has been used to establish a prize fund for watercolour paintings in his memory.

  1. Related party transactions

As described in the Report of the Council earlier in these financial statements, the charity has a close working relationship with the Royal Society of Painter-Printmakers and with Bankside Gallery Limited. Bankside Gallery Limited manages Bankside Gallery, 48 Hopton Street, London, on behalf of both the Royal Watercolour Society and the Royal Society of Painter-Printmakers.

The outstanding balances with related parties at the year-end are disclosed in Notes 7 and 8 above. The Royal Watercolour Society makes a donation to Bankside Gallery to cover a proportion of the running costs of[the][gallery,][in][recognition][of][ Bankside][Gallery’s][role][in][helping][ the][Society][achieve] its charitable aims. Donations may also be madeif the Society decides to promote any exhibitions beyond its regular annual programme.

A summary of[these][donations][during][ the][year][ follows:]

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2024|2023| |£|£| |Donation towards|running|costs|of Bankside|Gallery|26,928|23,850|

----- End of picture text -----

This expenditure is included in the Statement of Financial Activities under outgoing resources.

As recorded in Note 4 above, the Royal Watercolour Society owns a lease from the Corporation of London Borough of Southwark on 48 Hopton Street, London. Bankside Gallery is afforded full rentfree occupation and use of[these][gallery][ and][office][premises][in][return][for][ granting][an][indemnity][ to] the Royal Watercolour Society in respect of all outgoing and covenant obligations under the Lease. The value of this donation is not included in these accounts but is estimated to be £38,770 per annum.

i

Page 26

Royal Watercolour Society

Notes to the financial statements (continued) For the year ended 31 December 2024 atlanta Rane

17. Comparative information

The information below is an analysis by fund for the year ended 31 December 2023.

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Unrestricted|Designated|Restricted|Expendable|Total| |General|Funds|Funds|Endowment|Funds| |Funds|Funds|2023| |Note|£|£|£|£|£| |Income|and|endowments| |from:| |Donations|and|legacies|2|37,727|-|-|-|37,727| |Charitable|activities|2|126,034|-|-|-|126,034| |Investments|21,902|-|2,262|-|24,164| |Total|185,663|-|2,262|-|187,925| |Expenditure|on:| |Raising funds|3,972|5,526|854|202|10,554| |Charitable|activities|211,093|17,668|26,132|2,000|256,893| |Total|3|215,065|23,194|26,986|2,202|267,447| |Net|income/(expenditure)| |before|(losses)/gains|on| |investments|(29,402)|(23,194)|(24,724)|(2,202)|(79,522)| |Net gains/|(losses)|on| |investments|3,356|29,330|4,534|1,071|38,291| |Net|income/(expenditure)| |for the year|(26,046)|6,136|(20,190)|(1,131)|(41,231)| |Transfers|between|funds|12|9,544|(9,544)|-|-|-| |Net movement|in funds|(16,502)|(3,408)|(20,190)|(1,131)|(41,231)| |Reconciliation|of funds| |Total funds|brought forward|162,580|740,302|178,315|33,254|1,114,451| |Total funds|carried|forward|146,078|736,895|158,125|32,123|1,073,221|

----- End of picture text -----

eeeee SS Page 27

Notes to the financial statements (continued) For the year ended 31 December 2024

Royal Watercolour Society

17. Comparative Information (continued.)

The information below is a columnar balance sheet from the previous period.

Unrestricted Restricted Expendable 2023
Funds Funds Endowment Total
Funds
£ £ £ £
Fixed assets
Tangible assets 247,035 - - 247,035
Investments 1,062,948 147,854 32,095 1,242,897
1,309,983 147,854 32,095 1,489,932
Current assets
Debtors 2,421 - - 2,421
Cash at bank and in hand 19,389 10,271 28 29,688
21,810 10,271 28 32,109
Creditors: amounts falling
due within
oneyear (105,609) - - (105,609)
Netcurrent (liabilities)/ (83,799) 10,271 28 (73,500)
assets
Creditors: amounts due after (343,211) - - (343,211)
more than one
year a
Net assets 882,973 158,125 32,123 1,073,221
___
Charitable funds
Unrestricted income funds 882,973 - . 882,973
Restricted income funds - 158,125 : 158,125
Expendable endowment - 32,123 32,123
Totalfunds 882,973 158,125 32,123 1,073,221

Page 28