THE LOAN FUND FOR MUSICAL INSTRUMENTS
TRUSTEES’ REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The Loan Fund for Musical Instruments
Patron
H.M. THE KING
Vice-Presidents
DAME JANET BAKER, CH, DBE
DANIEL BARENBOIM LEVON CHILINGIRIAN, OBE
NICHOLAS DANIEL SIR ROGER NORRINGTON, CBE (DECEASED 18[TH] JULY 2025) SIR SIMON RATTLE, OM CBE
SIR ANDREW DAVIS, CBE (DECEASED 20[TH] APRIL 2024)
Trustees
ARTS COUNCIL ENGLAND
THE MUSICIANS’ UNION
THE ROYAL SOCIETY OF ARTS RODNEY SLATFORD, OBE, FRNCM, HON RCM THE WORSHIPFUL COMPANY OF MUSICIANS
CATHERINE YATES
ANDREW MARRINER (APPOINTED 17[TH] JUNE 2024)
JOANNE COLE (APPOINTED 28[TH] OCTOBER 2024)
HELEN FAULKNER (RETIRED 17[TH] JUNE 2024)
Registered Charity Number
277909
Page 1
THE LOAN FUND FOR MUSICAL INSTRUMENTS
Executive Committee of the Trustees
Chris Walters – Chairman, Representative, Musicians’ Union, Trustee
Levon Chilingirian OBE – Representative, Worshipful Company of Musicians, Trustee Andrew Marriner (Appointed 17[th] June 2024)
Rodney Slatford, OBE, FRNCM, Hon. RCM, Trustee
Catherine Yates Joanne Cole (Appointed 28[th] October 2024) Helen Faulkner (Retired 17[th] June 2024)
Secretary to the Trustees
Neil Constable
Independent Examiner Alex Spofforth FCA Spofforth Partners Limited Chartered Accountants Byne Cottage, Manley’s Hill Storrington, West Sussex RH20 4BN
Bankers
Investment managers
Child & Co Bankers Cazenove Capital Management 1 Fleet Street Schroder & Co. Ltd London EC4Y 1BD 1 London Wall Place London EC2Y 5AU
Website: www.lfmi.org.uk
- 1, Speed Highwalk, Barbican, LONDON, EC2Y 8DX
Page 2
THE LOAN FUND FOR MUSICAL INSTRUMENTS
Forty fourth Annual Report of the Executive Committee of the Trustees For the year ended 31 March 2025
The Trustees present their Annual Report for the year ended 31 March 2025, together with the financial statements of the Trust.
The financial statements comply with current legal requirements, the Charities Act 2011, 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).
Constitution and Aims
The sole aim of the Fund, set up under a Trust Deed in 1979, is to help talented young professional musicians to purchase instruments of the quality they need. Although the Fund is now widely known among such players, additional publicity for its activities is always very welcome.
Organisation
The Fund is administered through the Executive Committee. Each of the four founding organisations is entitled to appoint a trustee. These organisations are: The Worshipful Company of Musicians, The Musicians’ Union, The Arts Council and the Royal Society of Arts . With the exception of the Arts Council of England, which has resiled from appointing such a representative and the Royal Society of Arts, the remaining founding trustees have each nominated an individual as a trustee. The power to appoint new trustees is vested in the existing trustees at the time.
All trustee representatives or individual trustees are members of the Executive Committee, which meets three times a year. The Trust is managed through the offices of the Worshipful Company of Musicians.
Trustees
As at the date of the signing of the 2025 Report and accounts, the Executive Committee was as shown on page 2.
Trustees' responsibilities in relation to the financial statements
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP (FRS 102);
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
Page 3
THE LOAN FUND FOR MUSICAL INSTRUMENTS
Annual Report continued
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Reserves and Investment Policy
Reserves are invested in the Cazenove Charity Multi-Asset Fund. In normal times, the trustees endeavour to maintain a balance between invested funds, on which they aim to obtain a market return, and funds lent to borrowers where the interest rate will be below the market rate, so that there are sufficient funds to make appropriate loans and grants, while maintaining the value of the portfolio so that it can be available for future generations. In addition the Trustees are prepared to add 1% of any capital gains of the portfolio to the money available for grants. In the short term, the Fund has resources to meet applications for loans and satisfy most of the appropriate applications for grants.
During 2024-25 the Fund paid grants of £62,842 (2023-24, £60,211). A total of 41 eligible applications were considered for grants of which 30 (2023-24, 28) were successful. 6 loans totalling £62,170 were awarded (2023-24, £118,745 to 8 individuals).
By the end of the year the Fund’s investments, managed by Cazenove stood at £1,622,723 (£1,647,838 in 2024). The drop in the value of the portfolio is due the current turbulence in world markets. At the 30[th] September 2025 the investments stood at £1,823,162. Net assets were £1,927,368 (£1,953,113 in 2024). Total income was £80,602 (£80,234 in 2024).
Risk Management
The Fund does not regard itself as exposed to any material risks.
Public Benefit
The Executive Committee has addressed the matter of the public benefit provided by the Fund, and believe that this is inherent, in that, subject to the rules, any professional musician may apply to the Fund for help in obtaining a suitable instrument with which to pursue his or her career.The financial help given to professional musicians to enable them to purchase high quality instruments helps to improve the standard of public concerts.
Review of activities
The Fund's original activity was the lending of money to young professional musicians under the age of thirty six, for the purchase of an appropriate and specific instrument. This continues with loans made over a period of up to five years. The interest rate is currently at 5% APR. Repayments are made monthly. Usually up to about 70 % of the cost of the agreed instrument is lent. Applicants have to give references, as well as demonstrating their professional career and their ability to repay. There are some fine contemporary makers and the Fund is keen to encourage British instrument makers.
In addition the Fund considers applications for grants of up to one-third of the value of an instrument costing not more than £15,000 to students who have reached the third year of their full-time studies or until two years after graduating. Prudent management of the Fund’s financial resources usually allows annual grant offers of between £45,000 and £60,000).
Applicants apply on a standard form, from which the Committee reaches a decision. In some cases it is felt that a loan is more appropriate than a grant. Not all grants and loans are taken up and there is sometimes a considerable gap between an offer being made and a grant or loan being paid.
Page 4
THE LOAN FUND FOR MUSICAL INSTRUMENTS
Annual Report continued
When the grant scheme was first introduced in 2004, concern was expressed in the Executive Committee as to whether all the students we helped would go on to play professionally. The three research exercises we have carried out on grantees since 2004 have shown that the majority do. In the extensive survey we carried out in 2016, the 148 grantees from 2005-2012 were identified on the internet and contacted. 128 replied to say that they were still in the music business, most with mixed careers involving playing and teaching.
Although the Fund is seldom able to award the total amount requested, and indeed encourages applicants to look elsewhere as well, we believe the Fund’s imprimatur is a valuable recommendation to other funding sources. The interest rate on current loans is 5% APR, the rate was increased in 2023 to reflect the rise in global interest reates. Probably as a result of the high level of debt held by musicians leaving their conservatoires, the size, although not the number, of individual loans applied for has reduced in recent years. Most are in the area of £10,000.
The Fund has in place a formal Equality, Diversity and Inclusion policy. This states that LFMI is committed to encouraging equality, diversity and inclusion and opposes all forms of prejudice and discrimination. We ask all applicants to fill in a diversity and monitoring form which is separate from their application. LFMI seeks to play an active role in creating a more diverse and inclusive music industry. Our aim is to be truly representative of all sections of society in our board of trustees and the musicians we assist.
Chris Walters Chair 28[th] October 2025
Page 5
THE LOAN FUND FOR MUSICAL INSTRUMENTS INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES
I report to the trustees on my examination of the accounts of the Loan Fund for Musical Instruments (the Trust) for the year ended 31 March 2025.
Respective Responsibilities of trustees and examiner
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
We report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I 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
Our 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
We have completed my examination. We confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
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.
We 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.
Spofforth Partners Limited Chartered Accountants Byne Cottage Manley’s Hill, Storrington West Sussex RH20 4BN
Date: 28[th] October 2025
Page 6
THE LOAN FUND FOR MUSICAL INSTRUMENTS
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025
| Notes Income Donations Investment income 2 Loan interest Income for charitable application Expenditure on: Raising funds 3 Charitable activities 3 Total expenditure Recognised (losses)/gains on investments 6 Net (expenditure)/income and net movement in funds Fund balance brought forward at 1 April 2024 Fund balance carried forward at 31 March 2025 |
Unrestricted Funds 2025 2024 £ £ - - 72,288 74,325 8,314 5,909 80,602 80,234 4,850 4,565 79,725 75,933 84,575 80,498 (21,772) 94,886 (25,745) 94,622 1,953,113 1,858,491 1,927,368 1,953,113 |
Unrestricted Funds 2025 2024 £ £ - - 72,288 74,325 8,314 5,909 80,602 80,234 4,850 4,565 79,725 75,933 84,575 80,498 (21,772) 94,886 (25,745) 94,622 1,953,113 1,858,491 1,927,368 1,953,113 |
|---|---|---|
| 80,234 | ||
| 4,565 75,933 |
||
| 80,498 | ||
| 94,886 | ||
| 94,622 1,858,491 |
||
| 1,953,113 |
The Statement of Financial Activities contains all recognised gains and losses for the year. All activities are continuing
Page 7
THE LOAN FUND FOR MUSICAL INSTRUMENTS
BALANCE SHEET AT 31 MARCH 2025
| Notes Fixed assets investments Listed 6 Cash Current assets Debtors 7 Loans made for Musical Instruments Cash at bank and in hand Charities Official Investment Fund Current liabilities Creditors: Amounts falling due within one year Sundry creditors 8 Net current assets Net assets Funds Unrestricted |
£ 149 185,962 84,615 38,735 309,461 4,853 4,853 |
2025 £ 1,622,723 37 1,622,760 304,608 1,927,368 1,927,368 1,927,368 |
£ 537 194,103 45,298 65,922 305,860 1,243 1,243 |
2024 £ 1,647,838 658 |
|---|---|---|---|---|
| 1,648,496 | ||||
| 304,617 | ||||
| 1,953,113 | ||||
| 1,953,113 | ||||
| 1,953,113 |
The financial statements on pages 7 to 12 were approved on behalf of the Trustees by:
Chris Walters Chair 28[th] October 2025
The notes on pages 10 to 13 form part of these financial statements.
Page 8
THE LOAN FUND FOR MUSICAL INSTRUMENTS
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025
| Net cash inflow/(outflow) from operating activities (see A below) Cash flows from lending activities: Issue of new loans to young musicians Repayment of young musicians’ loans Increase/(decrease) in cash and cash equivalents (See B below) A Reconciliation of net (expenditure) or income for the year to net cash flow Net (expenditure)/income for the year Increase in creditors Decrease/(increase) in debtors Disposal of/(Additions to) investments Losses/(gains) on investments Net cash inflow/(outflow) from operating activities B Analysis of changes in cash and cash equivalents Balance at 1 April 2024 Net cash inflow/(outflow) Balance at 31 March 2025 (See C below) C Cash and cash equivalents Cash with brokers Cash at bank Charities Official Investment Fund Balance at 31 March 2025 |
2025 £ £ 3,368 (62,170) 70,311 8,141 11,509 (25,745) 3,610 388 3,343 21,772 3,368 111,878 11,509 123,387 37 84,615 38,735 123,387 |
2025 £ £ 3,368 (62,170) 70,311 8,141 11,509 (25,745) 3,610 388 3,343 21,772 3,368 111,878 11,509 123,387 37 84,615 38,735 123,387 |
2024 £ £ 3,484 (118,74 5) 56,692 (62,053) (58,569) 94,622 43 (177) 3,882 (94,886) 3,484 170,447 (58,569) 111,878 658 45,298 65,922 111,878 |
2024 £ £ 3,484 (118,74 5) 56,692 (62,053) (58,569) 94,622 43 (177) 3,882 (94,886) 3,484 170,447 (58,569) 111,878 658 45,298 65,922 111,878 |
|---|---|---|---|---|
| (58,569) | ||||
| 94,622 43 (177) 3,882 (94,886) |
||||
| 3,484 | ||||
| 170,447 (58,569) |
||||
| 111,878 | ||||
| 658 45,298 65,922 |
||||
| 111,878 |
Page 9
THE LOAN FUND FOR MUSICAL INSTRUMENTS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1 Accounting policies
The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at open market value, and in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition), and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102. The accounts are prepared in £.
The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements with respect to a period of at least one year from the date of approval of these financial statements. They 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.
Donations and similar income
Donations and similar income are included on the basis of amounts receivable in the year.
Interest and Investment Income
Loan repayments are calculated by formula based on rate of interest and constant monthly payments. The interest element of each loan is credited to the accumulated fund as the interest is earned.
Investment income is stated on an accruals basis.
Expenditure
Expenditure is included on an accruals basis.
Costs of raising funds comprise those costs directly attributable to managing the investment assets.
Grants awarded are charged in full to the SOFA when the offer is conveyed to the beneficiary, unless the offer is conditional and therefore recognised as expenditure when the conditions attached are fulfilled.
Grants approved by the trustees but not yet included in expenditure are disclosed in note 7.
Taxation
The charity is a registered charity and is not liable to income tax or corporation tax on its charitable activities.
Investments
Investments are stated at market value. Realised and unrealised gains and losses on investments are recognised in the Statement of Financial Activities in the period to which they relate.
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.
Page 10
THE LOAN FUND FOR MUSICAL INSTRUMENTS
.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
| 2 Investment income Income from investment portfolio Deposit interest on managed funds 3 Analysis of expenditure Raising Funds Investment Manager Fees Support costs – 5% (see note 4) Charitable Activities Grants Support costs – 95% (see note 4) |
2025 £ 68,487 3,801 72,288 2025 £ 3,961 889 4,850 62,842 16,883 79,725 |
2024 £ 68,968 5,357 |
|---|---|---|
| 74,325 | ||
| 2024 £ 3,738 827 |
||
| 4,565 | ||
| 60,211 15,722 |
||
| 75,933 |
During the year grants were made to 22 individuals (2024: 24 individuals).
4 Analysis of support costs
| Administration Independent Examination Fee |
2025 Raising Funds Charitable Activities Total £ £ £ 829 15,743 16,572 60 1,140 1,200 889 16,883 17,772 |
2024 Raising Funds Charitable Activities Total £ £ £ 767 14,582 15,349 60 1,140 1,200 |
|---|---|---|
| 827 15,722 16,549 |
Support costs have been apportioned on a basis consistent with the use of resources. Governance costs of £1,200 included in the 2024 accounts have been reanalysed as part of the support costs.
Page 11
THE LOAN FUND FOR MUSICAL INSTRUMENTS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
5 Staff costs and trustees’ remuneration
The Fund is being administered by The Worshipful Company of Musicians and has no employees (2023: nil).
The trustees, who are the key management personnel, were not paid but they or their representatives were reimbursed expenses of £229 (2024: £59) during the year. Meeting expenses were incurred totalling £142 (2024: £92).
6 Listed investment
| 2025 £ Market Value 1 April 2024 1,647,838 (Disposals)/Additions (3,343) Realised/unrealised investment gains/(losses) (21,772) Market value 31 March 2025 1,622,723 Historical cost 31 March 2025 1,431,552 At the balance sheet date, the investment portfolio was invested as follows: 20245 £ UK Unit Trusts 1,622,723 Market value at 31 March 2025 1,622,723 |
2024 £ 1,556,834 (3,882) 94,886 |
|
|---|---|---|
| 1,647,838 | ||
| 1,434,409 | ||
| 2024 £ 1,647,838 |
||
| 1,647,838 |
At the balance sheet date, 100% of the investment portfolio was invested in Schroder Charity MultiAsset Inc.
7 Debtors
| Overdue loan payments Interest receivable |
2025 £ - 149 149 |
2024 £ 287 250 |
|---|---|---|
| 537 |
Page 12
THE LOAN FUND FOR MUSICAL INSTRUMENTS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
8 Creditors
| Trade creditors Accruals |
2025 £ 3,653 1,200 4,853 |
2024 £ 43 1,200 |
|---|---|---|
| 1,243 |
9 Commitments
At 31 March 2025, the cash at bank, other deposit accounts and cash held by brokers totalling £122,958 (2024: £111,878) are stated before deducting:
-
(a) Loans of £5,000 (2024: £6,670) already approved by the trustees but not yet advanced.
-
(b) Grants of £59,611 (2024: £32,200) approved by the trustees but not yet paid.
-
(c) Applications for loans and grants still awaiting examination.
10 Related Party Transactions
The trustees, who are the key management personnel, were not paid but they or their representatives were reimbursed expenses of £229 (2024: £59) during the year. Meeting expenses were incurred totalling £142 (2024: £92).
There are no related party transactions requiring disclosure other than the transactions referred to above.
Page 13