**THE FRIENDS OF THE ROYAL ACADEMY (A Company Limited by Guarantee)** **Registered Charity No. 272926 Registered Company No. 01291535** ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED** **31 AUGUST 2025** **The Friends of the Royal Academy Reference and Administrative Information** ## **Patron** Her Majesty The Queen ## **Trustees** Siobhan Moriarty-MacDonnell (Chairperson) Andrea O'Keeffe (Treasurer to 15 October 2025) Patrick Brill OBE (Bob and Roberta Smith RA) Beatrice El-Hage Katherine Jones RA Philip Long OBE (Treasurer from 15 October 2025) Fiona Mahon Natasha Mitchell (appointed 1 November 2024; resigned 9 August 2025) Axel Rüger (resigned 31 October 2024) Elle Todd Simon Wallis OBE (appointed 10 August 2025) ## **Company Secretary** Benedict Anstey (resigned 12 May 2025) Annie Leonard (appointed 12 May 2025) ## **Auditors** Crowe UK LLP 2nd Floor 55 Ludgate Hill London EC4M 7JW ## **Bankers** Lloyds Bank Plc 4th Floor 25 Gresham Street London EC2V 7HN ## **Solicitors** Macfarlanes LLP 20 Cursitor Street London EC4A 1LT Withers LLP 16 Old Bailey London EC4M 7EG ## **Registered Office** Burlington House Piccadilly London W1J 0BD ## **Registered Charity Number** 272926 ## **Registered Company Number** 01291535 Page: 1 ## **The Friends of the Royal Academy (A Company Limited by Guarantee) Trustees’ Report For the year ended 31 August 2025** ## **CONSTITUTION AND CHARITABLE OBJECTIVES** ## **Constitution** The Friends of the Royal Academy (“the Charity”) is a registered charity, which was incorporated as a company limited by guarantee in December 1976. The Charity’s objects are (1) to support the charitable work of The Royal Academy of Arts (“the Royal Academy”), a legally separate charity (registered charity number 1125383, company number 6298947), which has promoted the fine arts in the UK since 1768; and (2) to promote and to co-operate with the Royal Academy and other charitable organisations in “promoting the Arts and in particular the Arts of Design and the creation and appreciation of the Arts”. ## **Governance and management** The Charity is an independent body governed by a board of directors (the “Board”), who are also the trustees of the Charity. In accordance with the Articles of Association, the number of directors shall be not less than seven and not more than 15. The Board shall have at least one and no more than two Royal Academicians, who are appointed by the Royal Academy. The Secretary and Chief Executive of the Royal Academy is a member of the Board _ex officio_ . The Charity has a maximum of 25 Members (the Board may from time to time increase this number). New Charity Members may be admitted by approval of the Charity at a General Meeting, subject to the approval of the Royal Academy. Friends are “associate members” of the Charity but are not formal Charity (company) Members. The Board may from time to time establish categories of Friends, the criteria for membership of each category, and the rights and privileges associated with such category. On appointment as a director, the appointee is invited to become a Member of the Charity (although a member of the Board does not need to be a Charity Member). The Charity and its trustees take good governance seriously and are aware of the Charity Governance Code, including its seven main principles. The Board holds at least three meetings each year to discuss the strategic, financial, and operational performance of the Friends membership scheme. Members of the Board meet regularly with the Royal Academy management team and other members of staff in between these formal Board meetings. Board members receive all relevant documentation relating to the constitution and operation of the Friends’ membership scheme on appointment. During the year ended 31 August 2025, Axel Rüger resigned as the Secretary and Chief Executive of the Royal Academy and was replaced on the Board by Natasha Mitchell, Interim Secretary and Chief Executive of the Royal Academy, until Simon Wallis was appointed permanently on 10 August 2025. On 12 May 2025 Annie Leonard (RA Legal Counsel) was appointed Company Secretary, in place of Benedict Anstey (RA General Counsel). There were no other director appointments or resignations during the year ended 31 August 2025. An induction pack providing an overview of the Royal Academy structure, strategy, and areas of activity is provided to directors annually. The Charity Chair meets regularly, and at least once in advance of each Board meeting, with key Royal Academy staff including the Head of Content, Campaigns and Communications and the Legal Counsel in relation to company secretarial matters, to plan for Board meetings and set agendas. Page: 2 ## **The Friends of the Royal Academy (A Company Limited by Guarantee) Trustees’ Report For the year ended 31 August 2025** ## **Remuneration of key management personnel** The Charity considers key management personnel to be the trustees who do not receive remuneration for their services. As noted below, the day-to-day management of the Charity is performed by staff employed by the Royal Academy. ## **Relationship with the Royal Academy** Although the Charity is governed by an independent body, the day-to-day management of the Friends membership scheme is through staff employed by the Royal Academy. ## **Objectives and activities** The objects of the Charity, as set out in the Articles of Association, are to support the charitable work of the Royal Academy and to promote and to co-operate with the Royal Academy and other charitable organisations in promoting the Arts and in particular the Arts of Design and the creation and appreciation of the Arts. The Charity’s activities include ensuring sound financial control; clear strategic direction; and the targeting of funds to improve the Friends experience and public benefit. ## **Public benefit and impact** In implementing the stated objectives through the strategies mentioned above, the Board has complied with the duty in Section 17 of the Charities Act 2011 and the guidance published by the Charity Commission, namely, to have due regard to public benefit. The Charity donates its surplus to the Royal Academy in support of its charitable objectives and in doing so brings considerable benefit to members of the public who visit and participate in the activities of the Royal Academy. The impact and public benefit provided by the Royal Academy and the more formal impact assessment approach being undertaken, including identifying impact goals, and tracking and measuring impact, is considered in the Royal Academy’s 2025 Trustees’ Report. Given that the Charity’s donation has this year provided nearly 27% (2024: 28%) of the Royal Academy’s incoming resources from ongoing activities, the Charity is providing a significant contribution towards meeting these impact goals. The Friends membership scheme is open to all members of the public and offers significant cost savings to ensure the Friend, an adult family guest and up to four family children, can enjoy unlimited entry to experience and appreciate all that the Royal Academy has to offer. Friends are also kept up to date on news of the Royal Academy and the broader cultural scene via the quarterly RA Magazine and through regular email communications, tailored and targeted to individual Friends via Customer Relationship Management (“CRM”) to maximise engagement. The Friends also offer a Young Person category of membership at a lower rate to enable younger people (up to 35) to access the benefits, including invitations to events tailored towards this younger demographic. ## **Aims for the coming year** The aims and objectives for the 2025/26 financial year are as follows: - To promote and enhance the appreciation of visual arts and wider programme at the Royal Academy through the Friends’ membership scheme. - To maximise the charitable contributions raised for the benefit of the Royal Academy. - To increase public participation for the benefit of the Royal Academy. Page: 3 ## **The Friends of the Royal Academy (A Company Limited by Guarantee) Trustees’ Report For the year ended 31 August 2025** The Charity will seek to achieve these objectives through the continuation of a successful programme of Friends’ events; campaigns to recruit new Friends; and measures to retain Friends through continued improvement of the visitor experience. ## **FINANCIAL REVIEW, ACHIEVEMENTS AND PERFORMANCE** ## **Financial review** During the year, the Charity received total income of £11,387,149 (2024: £11,775,330), including membership income and Gift Aid of £11,333,587 (2024: £11,602,555) from a total membership of 72,356 (2024: 75,014) Friends. After expenditure of £1,406,056 (2024: £1,518,482) and a donation of £24,929 (2024: £151,801) to the Royal Academy Trust, net income amounted to £9,956,164 (2024: £10,105,047). It is the practice of the Board to donate to the Royal Academy income received after the deduction of expenditure, with the objective to increase the net contribution year on year. In March 2019 the Board resolved to donate to the Royal Academy Trust any unrestricted legacy income received by the Charity (up to £100,000 per legacy) to be held in unrestricted funds to provide future support to the Royal Academy. The net income for the current year has been donated to the Royal Academy. The net movement of funds for the year was £nil (2024: £nil). The Board does not recommend any transfer to or from reserves (2024: £nil). ## **Achievements and performance** The Charity closed the year with 72,356 Friends, over 4% down from last year’s closing number of 75,014. Just over 7,200 new Friends joined in the year (2024: 8,200). The annual renewal rate was just under 87%, marginally higher than the previous year. This performance should be considered in the wider context of shifting audience behaviour and engagement across the sector, where increased competition and more selective choices by visitors (driven by the higher cost of living, transport challenges, and changed post-pandemic appetites, particularly amongst older visitors) are all having an impact on attendance at paid exhibitions. Within this context, retention and acquisition marketing strategies for the year were carefully built around the exhibition programme, optimising each in relation to its appeal to Friends. Retention rates were ahead of target for the year, but acquisition rates were well behind target for the first three quarters of the year. Acquisition rates recovered in the final quarter with the successful 15 for 12 campaign, which allowed new members joining on direct debit to benefit from 15 months of membership for the price of 12 months. The final quarter also saw improved onsite conversion. The final quarter also corresponded with the extremely well attended _Summer Exhibition 2025_ and _Kiefer / Van Gogh_ exhibitions. Despite these successes, total acquisitions for the year were below target. Continued commitment to our audiences through programming, pricing, and onsite experience remains a priority for the next financial year and beyond to attract more Friends. Since September 2025, Friends have enjoyed extended evening hours of access to Keeper’s House, a dedicated space for Friends, Patrons and other Members of the Royal Academy. From November 2025, Page: 4 ## **The Friends of the Royal Academy (A Company Limited by Guarantee) Trustees’ Report For the year ended 31 August 2025** an improved catering offer and experience will be provided. Keeper’s House is being transformed into a vibrant new dining destination under the acclaimed chef, José Pizarro. Friends will also then benefit from access to all areas of Keeper’s House, including a renovated bar and restaurant. Total membership income and Gift Aid for the year of £11,333,587 represented a decrease of just over 2% on the previous year (2024: £11,602,555). There was no price increase in either 2024 or 2025 until the price increase announced on 1 September 2025. The decision not to increase prices for two years reflected the rising “cost of living crisis” and a need to stabilize retention considering a less popular exhibition programme. Price sensitivity, the changing popularity of the exhibition programme, and economic and behavioural trends were all flagged as major risks in our report last year. The decision to increase the price in September 2025 coincided with the improvement to Friends benefits and membership spaces, which came from the renewed strategic focus on membership. We re-launched the Keeper’s House as a space exclusive to members only, with a new dining experience in partnership with acclaimed chef José Pizarro, and with Friends’ access to the downstairs spaces in Keeper’s House now extended to include evening hours. The price increase brings us more closely in line with our peers in the market and better reflects inflationary cost increases experienced by the Charity. Expenditure on membership activities for the year of £1,406,056 decreased by 7% on the previous year (2024: £1,518,482). The Charity’s cost base has been significantly impacted by the higher rates of inflation which have been experienced recently. The Royal Academy completed a restructuring programme during the second half of the year, and the Charity was impacted by this. Staff costs decreased during the year despite redundancy costs, and the impact of the rise in the London Living Wage, and the increase in National Insurance Contributions announced in the 2024 Autumn Budget. With the lower number of Friends and acquisitions, in particular, printing and mailing and marketing, research and acquisition costs have also fallen this year. Marketing costs were 45% down. As a result of broader cost savings initiatives, marketing budgets were reduced by curtailing or pausing activities that were not deemed cost effective. With a more effective marketing focus the lower spending is not expected to adversely affect the next financial year. The net income for the year before the donation to the Royal Academy (but after donations of legacy income to the Royal Academy Trust) was £9,956,164; nearly 1.5% down on the previous year (2024: £10,105,047). With the number of Friends down by just over 4% and income by 3.3%, a 1.5% fall in net income demonstrates how resilient the Charity has been despite the challenges outlined above. In making a donation of £9,956,164 to the Royal Academy, the Charity has significantly contributed to the continuing development of the Royal Academy’s activities and awareness of its role in cultural life including the presentation of a world class exhibition programme; the post graduate education of artists in the Royal Academy Schools; the preservation and maintenance of the Royal Academy’s historic buildings and collections; and the celebration of art and culture for audiences at the Royal Academy and beyond. Page: 5 ## **The Friends of the Royal Academy (A Company Limited by Guarantee) Trustees’ Report For the year ended 31 August 2025** ## **Reserves policy** The Board has reviewed the reserves of the Charity, including its free reserves (those that are not restricted, designated, or invested in fixed assets). Having regard to the relationship with the Royal Academy and anticipated future cash flows, the current practice is to pass the entire annual net income to the Royal Academy and not to accumulate reserves. The Board considers that the actual level of free reserves as at 31 August 2025 of £115,734 (2024: £115,734) is appropriate. ## **Related party transactions** None of the trustees receives remuneration or other benefit from their work with the Charity. Transactions with related parties are disclosed in note 14 to the financial statements. ## **Risks** As part of the RA-wide risk management processes, the Board, supported by specialist committees and the Royal Academy’s leadership and legal teams, regularly reviews and manages risks to ensure appropriate controls and mitigation measures are in place. Key risks identified include: 1. Decline or stagnation in Friends membership, impacting financial sustainability. 2. New obligations under the Digital Markets, Competition and Consumers Act (effective Spring 2026), including pre-contract disclosures, renewal notices, cooling-off periods, and cancellation rights. Potential impact on Gift Aid eligibility remains uncertain. 3. Vulnerability of database systems to cyber threats. 4. Compliance challenges with complex tax and HMRC regulations. ## Mitigation measures include: 1. Ongoing improvements to visitor experience and membership structure. 2. Legal and tax guidance on legislative changes, alongside sector-wide lobbying efforts. 3. Continual work to improve the RA’s cyber security posture and defences, and continued software development with emphasis on data protection. 4. Robust internal tax controls and external advisory support. Page: 6 The Frfends of the Royal Academy (A Company Llm6ted by Guarantee) Trustee< Report For the year ended 31 A￿uSt 2025 STATEMENTOF TRUSTEES, RESPOt4SIBIUllES The trustees {who are also directors of The Friends of the Royal Academy for the purpose of company lawl are responsible for preparing the trustees, report and the financial statements in accordance with the applicable law and United Kingdom Accountin8 Standards (United Ki￿d0M Generalty Accepted Accountin8 Prarticel. Company law requires directows to prepare finanual ststements foreach financial yearwhich give a true and fair view of the state of the affairs of the charitable company and of the incoming resourtes and application of resources, including the income and expendsture of the charitable company for that period. In preparin8 these f￿anCIal statements. the directo￿ are required to: select suitable accounting policies and then apply them consistently. make judgments and estimates that are reasonable and prudent- state whether applicable UK Accountin8 Standards have been followed. subject to any material departures disch)sed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity Wbll continue in business: obseThe the methods and prindples in the Charities SORP. The trustees are responsible for keeping proper ac£ountin8 records that disclose with reasonable atcuracy at any time the financial position of the charity and enable them to ensure that the flnancial statements comply with the Companies Act 2006. They are also resp)nsible for safeguarding the assets of the charity and hence fortaking reasonable steps for the prevention and detectKJn of fraud and other irregularities. SO far as each of the trustees at ihe time the t￿￿tees, report is apkyoved Is aware: there is no relevant inforn7ation of which the audttors are unaware: and they have taken all relevant step5 they ought to have taken to make themselves aware of any relevant audit Inf0M￿tIOn and io establish that the auditors are aware of that Informat￿￿. Audltors A resolution to reappoint Crowe UK LLP as auditors will be put to the member5 at the Annual General Meetln8. q -tL￿ -15- report was apprcNed by the trustees on ...._................-..-... and signed on its behalf. bv: Slobhan Moriarty-MacDonnell Chairperson Page: 7 ## **The Friends of the Royal Academy Independent Auditors' Report to the Members of The Friends of the Royal Academy** ## **Opinion** We have audited the financial statements of The Friends of the Royal Academy ("the charitable company") for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 FRS 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company’s affairs as at 31 August 2025 and of its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** 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 auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **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 charitable 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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditors' report thereon. 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. Page: 8 ## **The Friends of the Royal Academy Independent Auditors' Report to the Members of The Friends of the Royal Academy (continued)** ## **Other information (continued)** Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matter prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees’ report, which includes the directors' report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the directors' report included in the trustees’ report has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate and proper accounting records have not been kept; or - • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or • the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' directors' report and from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the statement of trustees’ responsibilities set out on page 7, the trustees (who are also the 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 charitable 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 charitable company or to cease operations, or have no realistic alternative but to do so. Page: 9 ## **The Friends of the Royal Academy Independent Auditors' Report to the Members of The Friends of the Royal Academy (continued)** ## **Auditors' 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 auditors' 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. Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report. ## **Extent to which the audit was considered capable of detecting irregularities, including fraud** Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, including financial reporting legislation and the Charity SORP (FRS 102), General Data Protection Regulation, and tax regulations. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be necessary to the charitable company’s ability to operate or to avoid a material penalty. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any. We also considered the opportunities and incentives that may exist within the charitable company for fraud. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within management override of controls. Our audit procedures to respond to these risks included enquiries of management, and those charged with governance about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. Page: 10 The Frien(ts of the Royal Academy Independent Auditors, Report to the Members of The Friends of the Royal Academy (contlnued) Extent to whlth the •udlt w•s c¢%￿Idered cwble ol ¢￿te￿N￿ im￿1¥r1d•s, Indudlnl fr•ud (tantlfiuedl For example, the further removed non-compliance with laws and regulatlons Ilrre8ularlllesl Is from the events and transact￿n$ ￿llerted in ihe financial statements, the less likely the Inherently Ilmlted procedures required by audilin8 Standarits woukl identify it. In addition. as with any audit, there remained a h%her rsk of non4etertion of irre8ularities. as these may invofve collusion. forgery. intentknml 0mL￿M)n5. mi5rewesentations. or the override of internal controls. We are not responsilAe for pre¥eniin8 non-complian￿ and cannot be ex￿ed to detecl non**Income from:**
Donations and legacies
Charitable activities
4
Other income
Total income
**Expenditure on:**
Charitable activities
Members' activities
5
Donation to Royal Academy Trust
Donation to The Royal Academy of Arts
Total expenditure
**Net income / (expenditure)**
6
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2025**
**£**
**27,262**
**11,333,587**
**26,300**
**11,387,149**
**(1,406,056)**
**(24,929)**
**(9,956,164)**
**(11,387,149)**
**-**
**115,734**
**115,734**|Unrestricted
funds
2024
£
152,362
11,602,555
20,413| |||11,775,330| |||(1,518,482)
(151,801)
(10,105,047)| |||(11,775,330)| |||-
115,734| |||115,734| All gains and losses are included in the Statement of Financial Activities and derive from continuing activities. The notes on pages 15 to 20 form part of these financial statements. Page: 12 The Frfends of the Royal Academy Balan￿ Sheet a5 at 31 Au8USt 2025 2025 2024 Current assets DebtOTS io 310.087 349,080 Current Ilabllltles Credltors- amounts falling due within one year li 1194,3531 1233.3461 Total •ssets less total liabilities 115,734 115,734 The funds of the Charity: unrestrict￿ funds Unrestricted 115,734 115,734 Totsl funds 115.734 115.734 The noles on pages 15 to 20 fomi part of these financial statements. Approved and authorised for issue by the Board on...._........................................... Slobhan Morlarty-MacDonnell Company No: 01291535 Page: 13 ## **The Friends of the Royal Academy Statement of Cash Flows For the year ended 31 August 2025** |**Note**
**Cash (used in) / provided by operating activities**
12
**Net cash used in investing activities**
**Net cash used in financing activities**
Increase / decrease in cash equivalents in the year
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**|**2025**
**£**
**-**
**-**
**-**
**-**
**-**
**-**|2024
£
-| |---|---|---| |||-| |||-| |||-
-| |||-| Page: 14 **The Friends of the Royal Academy Notes to the Financial Statements For the year ended 31 August 2025** ## **1 General information** The Friends of the Royal Academy ("the Charity"), is a registered charity, which is incorporated as a company limited by guarantee. The Charity was established primarily to support the charitable work of The Royal Academy of Arts ("the Royal Academy") and to promote and to co-operate with the Royal Academy and other charitable organisations in promoting the Arts. The address of its registered office is Burlington House, Piccadilly, London, W1J 0BD. ## **2 Summary of significant accounting policies** The financial statements have been prepared under the historical cost convention and in compliance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Charities Act 2011. The financial statements are prepared in sterling which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest pound. The Charity is a Public Benefit Entity as defined by FRS 102. ## **a. Basis of preparation** The financial statements have been prepared on a going concern basis, under the historical cost convention. The principal accounting policies applied in the preparation of these financial statements are set out in the notes below. These policies have been consistently applied to all the years presented, unless otherwise stated. ## **b. Going concern** The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. The Charity therefore continues to adopt the going concern basis in preparing its financial statements. ## **c. Funds structure** Unrestricted income funds are sub analysed between designated funds, where the trustees have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors; and unrestricted funds, which are used at the trustees' discretion in furtherance of the general objectives of the Charity. Page: 15 **The Friends of the Royal Academy Notes to the Financial Statements For the year ended 31 August 2025** ## **2 Summary of significant accounting policies (continued)** ## **d. Income** All income is recognised once the Charity has entitlement to the resources if it is probable (more likely than not) that the resources will be received and the monetary value can be measured reliably. Membership income and related Gift Aid is accounted for on receipt of the income and is stated exclusive of any VAT. Donations are accounted for when these are received. Ticket sales made in relation to events taking place in the next financial year are included as deferred income. ## **e. Legacies** Legacies are accounted for as income where there is clear entitlement; the amounts can be measured reliably; and receipt is probable. Receipt is probable when: - Confirmation has been received from the representatives of the estate(s) that probate has been granted; - The executors have established there are sufficient assets in the estate to pay the legacy; and - All conditions attached to the legacy have been fulfilled or are within the Charity's control. ## **f. Expenditure** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. ## **g. Pension costs** Pension costs reflect the employer pension contributions recharges from the Royal Academy. There is no liability for the Charity with regards to defined benefit pension scheme funding or any associated liabilities, with reference to its inclusion being provided in these financial statements, merely to provide clarity with regards to the recharged pension contributions. Page: 16 **The Friends of the Royal Academy Notes to the Financial Statements For the year ended 31 August 2025** ## **2 Summary of significant accounting policies (continued)** ## **h. Charitable activities** Costs of charitable activities comprise the expenditure associated with supporting the Charity members and making donations to the Royal Academy and the Royal Academy Trust. Included within charitable activities are governance costs. These are costs incurred in the governance of the Charity and its assets. These are primarily concerned with constitutional and statutory requirements. ## **i. Financial instruments** ## **i. Cash and cash equivalents** Cash and cash equivalents include cash at bank and in hand. ## **ii. Debtors and creditors** Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest. ## **3 Critical accounting judgments and estimation uncertainty** Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. ## **4 Income from charitable activities** |Membership income
Gift Aid
Total|**2025**
2024
**£**
£
**9,542,018**
9,808,938
**1,791,569**
1,793,617
**11,333,587**
11,602,555| |---|---| Membership income relates to annual amounts paid to become a "Friend" of the Charity. Total membership as at 31 August 2025 was 72,356 Friends (2024: 75,014 Friends). Page: 17 ## **The Friends of the Royal Academy Notes to the Financial Statements For the year ended 31 August 2025** ## **5 Analysis of expenditure on members' activities** |Staff costs (see note 7)
Printing and mailing
Magazine
Marketing, research and acquisitions
Facilities charges
Audit fees
Accountancy fees
Other costs
Total
**6**
**Net income / (expenditure)**
This is stated after charging:
Auditors' remuneration:
Audit services
Other services
**7**
**Analysis of staff costs**
Wages and salaries
Social security costs
Employers pension contributions
Redundancy costs
Total|**2025**
**£**
**464,153**
**226,428**
**387,313**
**100,668**
**124,349**
**15,000**
**50**
**88,095**
**1,406,056**
**2025**
**£**
**15,000**
**50**
**2025**
**£**
**389,390**
**37,956**
**28,388**
**8,419**
**464,153**|2024
£
480,011
235,783
386,993
181,748
126,295
18,750
600
88,302| |---|---|---| |||1,518,482| |||2024
£
18,750
600
2024
£
413,609
35,902
30,500
-| |||480,011| Staff costs represent the costs of staff employed by the Royal Academy and recharged to the Charity. The Charity engaged an average of 14 permanent staff (2024: 15). No employees earned more than £60,000 in the year (2024: none). The trustees have concluded that the board of trustees comprise the key management personnel of the Charity. Page: 18 **The Friends of the Royal Academy Notes to the Financial Statements For the year ended 31 August 2025** ## **8 Trustees' remuneration, benefits and expenses** Axel Rüger who was a trustee of the Charity to 31 October 2024, Natasha Mitchell who was a trustee of the Charity from 1 November 2024 to 9 August 2025, and Simon Wallis who was a trustee of the Charity from 10 August 2025, were paid remuneration by the Royal Academy, for which no recharge was made to the Charity. It is not possible to make a reasonable apportionment of their remuneration in respect of their services to the Charity. Accordingly, the disclosures regarding remuneration for key management personnel of the Charity include no amounts in respect of Axel Rüger, Natasha Mitchell and Simon Wallis. Remuneration excluding pension contributions paid by the Royal Academy to Axel Rüger, Natasha Mitchell and Simon Wallis was £199,009 (2024: £237,190). In addition, they received pension contributions totalling £20,086 (2024: £23,719). The Charity's other trustees give their time freely and receive no remuneration for the work that they undertake as trustees. However, they can claim expenses to reimburse them for costs that they incur in fulfilling their duties. No trustee was reimbursed for any costs incurred in fulfilling their duties (2024: £nil). ## **9 Taxation** The Charity has suffered no tax charge, as it is not subject to UK corporation tax on its charitable activities. ## **10 Debtors** |Trade debtors
Amounts owed by The Royal Academy of Arts
Recoverable taxes
Other debtors
Prepayments
Total|**2025**
2024
**£**
£
**4,096**
4,338
**22,914**
239,649
**243,209**
96,188
**24,929**
-
**14,939**
8,905
**310,087**
349,080| |---|---| Amounts owed by related undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. ## **11 Creditors - amounts falling due within one year** |Trade creditors
Amounts due to R.A. Enterprises Limited
Amounts due to RA (Arts) Limited
Taxation
Accruals
Total|**2025**
2024
**£**
£
**22,858**
14,845
**71,287**
113,021
**381**
-
**62,476**
62,431
**37,351**
43,049
**194,353**
233,346| |---|---| Page: 19 ## **The Friends of the Royal Academy Notes to the Financial Statements For the year ended 31 August 2025** ## **12 Notes to the statement of cash flows** |Net movement in funds:
Adjustments for:
- Decrease/(increase) in debtors
- (Decrease)/increase in creditors
Net cash (used in) / provided by operating activities
**Financial instruments**
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
**Reconciliation of net movement in funds to net cash flow from**
**operating activities:**|**2025**
**£**
**-**
**38,993**
**(38,993)**
**-**
**2025**
**£**
**51,939**
**131,877**|2024
£
**-**
(33,526)
33,526| |---|---|---| |||-| |||2024
£
243,987| |||170,915| ## **13 Financial instruments** ## **14 Related party transactions** During the year the Charity donated £9,956,164 (2024: £10,105,047) to the Royal Academy and reimbursed expenditure of £588,502 (2024: £606,306), including staff costs recharged of £464,153 (2024: £480,011) and facilities charges of £124,349 (2024: £126,295) for the Charity's use of Keeper's House, being £102,000 (2024: £102,000) for rent and £22,349 (2024: £24,295) for utilities. At the year end, £22,914 (2024: £239,649) was owed and included within debtors. During the year the Charity purchased £387,313 (2024: £386,993) of goods from R.A. Enterprises Limited, a subsidiary of the Royal Academy, related to costs for the quarterly RA Magazine. R.A. Enterprises Limited sold subscriptions with a value of £11,173 (2024: £12,917) on behalf of the Charity. At the year end, £71,287 (2024: £113,021) was outstanding. In addition, at the year end, £381 (2024: £nil) was due to RA (Arts) Limited, a subsidiary of the Royal Academy. In order to optimise cash management efficiency, the current accounts of the Charity and the Royal Academy and its subsidiary undertakings are pooled, such that overnight all cleared debit and credit balances on the current accounts of these entities are set off into a single Royal Academy account. The debtor and creditor balances between each of the entities in this pooling group at the year end in part reflects this pooling arrangement. Page: 20